5. other current assets
Other current assets consist of the following:
December 31, |
(US$ in millions) |
2004 |
2003 |
|
Prepaid commodity purchase contracts |
$ |
37 |
$ |
247 |
Secured advances to suppliers |
|
697 |
|
280 |
Unrealized gains on derivative contracts |
|
310 |
|
418 |
Margin deposits |
|
43 |
|
95 |
Recoverable taxes |
|
138 |
|
70 |
Marketable securities |
|
14 |
|
13 |
Other |
|
338 |
|
351 |
|
Total |
$ |
1,577 |
$ |
1,474 |
|
prepaid commodity purchase contracts Prepaid commodity purchase contracts represent payments to producers in advance of delivery of the underlying commodities. Prepaid commodity purchase contracts are recorded at market.
secured advances to suppliers Bunge provides cash advances to suppliers, which primarily include farmers of soybeans and other agricultural commodities, to finance a portion of the suppliers' production cost. The advances are generally collateralized by physical assets of the supplier, carry a market interest rate and are repaid through the delivery of soybeans and other agricultural commodities. Secured advances to suppliers are stated at the original value of the advance plus accrued interest, less allowances for uncollectible advances. In addition to the current secured advances, Bunge has long-term secured advances to suppliers, primarily farmers, in the amount of $198 million and $84 million at December 31, 2004 and 2003, respectively. The allowances for uncollectible advances totaled $43 million and $31 million at December 31, 2004 and 2003, respectively.
marketable securities These securities are classified as trading securities and recorded at fair value based on quoted market prices. The related gains or losses are recognized in other income and (expense)net in the consolidated statements of income.
|