Bunge 2004 Annual Report
[partnering for the future][financial highlights][letter to shareholders][our global strategy][financial performance][worldwide locations][shareholder information]

Common Share Market and Dividends
Five-Year Summary of Selected Financial Data
Management's Discussion and Analysis of Financial Condition and Results of Operations
Consolidated Statements of Income
Consolidated Balance Sheets
Consolidated Statements of Cash Flows
Consolidated Statements of Shareholders' Equity
Notes to the Consolidated Financial Statements
Management's Report on Internal Control Over Financial Reporting
Reports of Independent Registered Public Accounting Firm
Financial Performance
notes to the consolidated
financial statements
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.

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