Bunge Global SABG
Bunge Global SA Fair Value Disclosure
FAIR VALUE MEASUREMENTS
Bunge's various financial instruments include certain components of working capital such as Trade accounts receivable and Trade accounts payable. Additionally, Bunge uses short- and long-term debt to fund operating requirements. Trade accounts receivable, Trade accounts payable and Short-term debt are generally stated at their carrying value, which is a reasonable estimate of fair value. See Note 3- Trade Structured Finance Program for trade structured finance program, Note 12- Other Non-Current Assets for long-term receivables from farmers in Brazil, net and other long-term investments, Note 17- Debt for short- and long-term debt, and Note 18- Employee Benefit Plans for employee benefit plans. Bunge's financial instruments also include derivative instruments and marketable securities, which are stated at fair value.
For a definition of fair value and the associated fair value levels, refer to Note 1- Nature of Business, Basis of Presentation and Significant Accounting Policies.
The following table sets forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis.
| Fair Value Measurements at Reporting Date | |||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| (US$ in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents | $ | 1 | $ | 90 | $ | — | $ | 91 | $ | 86 | $ | 42 | $ | — | $ | 128 | |||||||||||||||||||||||||||||||
Readily marketable inventories (Note 5) | — | 9,954 | 1,407 | 11,361 | — | 4,805 | 419 | 5,224 | |||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivative contracts (2): | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | — | 13 | — | 13 | — | 15 | — | 15 | |||||||||||||||||||||||||||||||||||||||
| Foreign exchange | — | 327 | — | 327 | — | 422 | — | 422 | |||||||||||||||||||||||||||||||||||||||
| Commodities | 179 | 706 | 227 | 1,112 | 82 | 549 | 134 | 765 | |||||||||||||||||||||||||||||||||||||||
| Freight | 33 | — | — | 33 | 40 | — | — | 40 | |||||||||||||||||||||||||||||||||||||||
| Energy | 56 | — | — | 56 | 42 | — | — | 42 | |||||||||||||||||||||||||||||||||||||||
| Credit | — | 1 | — | 1 | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||||||||
Other (3) | 117 | 61 | — | 178 | 325 | 75 | — | 400 | |||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 386 | $ | 11,152 | $ | 1,634 | $ | 13,172 | $ | 575 | $ | 5,910 | $ | 553 | $ | 7,038 | |||||||||||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Trade accounts payable (1) | $ | — | $ | 464 | $ | 95 | $ | 559 | $ | — | $ | 326 | $ | 62 | $ | 388 | |||||||||||||||||||||||||||||||
Unrealized loss on derivative contracts (4): | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | — | 120 | — | 120 | — | 258 | — | 258 | |||||||||||||||||||||||||||||||||||||||
| Foreign exchange | — | 329 | — | 329 | — | 494 | — | 494 | |||||||||||||||||||||||||||||||||||||||
| Commodities | 154 | 581 | 206 | 941 | 71 | 309 | 104 | 484 | |||||||||||||||||||||||||||||||||||||||
| Freight | 53 | — | — | 53 | 38 | — | — | 38 | |||||||||||||||||||||||||||||||||||||||
| Energy | 84 | — | — | 84 | 38 | — | — | 38 | |||||||||||||||||||||||||||||||||||||||
| Credit | — | 1 | — | 1 | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||||||||
| Total liabilities | $ | 291 | $ | 1,495 | $ | 301 | $ | 2,087 | $ | 147 | $ | 1,389 | $ | 166 | $ | 1,702 | |||||||||||||||||||||||||||||||
(1)These payables are hybrid financial instruments for which Bunge has elected the fair value option as they are derived from purchases of agricultural commodity products in the normal course of business.
(2)Unrealized gains on derivative contracts are generally included in Other current assets. There were $8 million and zero included in Other non-current assets at December 31, 2025 and 2024, respectively.
(3)Other includes the fair values of marketable securities and investments in Other current assets and Other non-current assets.
(4)Unrealized losses on derivative contracts are generally included in Other current liabilities. There were $120 million and $232 million included in Other non-current liabilities at December 31, 2025 and 2024, respectively.
Cash equivalents —Cash equivalents primarily includes money market funds and commercial paper investments. Bunge analyzes how the prices are derived and determines whether the prices are liquid or less liquid tradable prices. Cash equivalents with liquid prices are valued using prices from publicly available sources and classified as Level 1. Cash equivalents with less liquid prices are valued using third-party quotes or pricing models and classified as Level 2.
Readily marketable inventories—RMI reported at fair value are valued based on commodity futures exchange quotations, broker or dealer quotations, or market transactions in either listed or OTC markets with appropriate adjustments for differences in local markets where the Company's inventories are located. In such cases, the inventory is classified within Level 2. Certain inventories may utilize significant unobservable data related to local market adjustments to determine fair value. In such cases, the inventory is classified as Level 3.
If the Company used different methods or factors to determine fair values, amounts reported as unrealized gains and losses on derivative contracts and RMI at fair value in the consolidated balance sheets and consolidated statements of income could differ. Additionally, if market conditions change subsequent to the reporting date, amounts reported in future periods as unrealized gains and losses on derivative contracts and RMI at fair value in the consolidated balance sheets and consolidated statements of income could differ.
Derivatives—The majority of exchange traded futures and options contracts and exchange cleared contracts are valued based on unadjusted quoted prices in active markets and are classified within Level 1. The majority of the Company’s exchange-traded agricultural commodity futures are cash-settled daily and, therefore, are not included in these tables. The Company's forward commodity purchase and sales contracts are classified as derivatives along with other OTC derivative instruments relating primarily to freight, energy, foreign exchange and interest rates and are classified within Level 2 or Level 3, as described below. The Company estimates fair values based on exchange quoted prices, adjusted as appropriate for differences in local markets. These differences are generally valued using inputs from broker or dealer quotations or market transactions in either the listed or OTC markets. In such cases, these derivative contracts are classified within Level 2.
OTC derivative contracts include swaps, options, and structured transactions that are generally fair valued using quantitative models that require the use of multiple market inputs including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not highly active, other observable inputs relevant to the asset or liability, and market inputs corroborated by correlation or other means. These valuation models include inputs such as interest rates, prices, and indices to generate continuous yield or pricing curves and volatility factors. Where observable inputs are available for substantially the full term of the asset or liability, the instrument is categorized in Level 2. Certain OTC derivatives trade in less active markets with less availability of pricing information and certain structured transactions can require internally developed model inputs that might not be observable in or corroborated by the market.
Marketable securities and investments—Bunge invests in foreign government securities, corporate debt securities, deposits, equity securities, and other securities. Bunge analyzes how the prices are derived and determines whether the prices are liquid or less liquid tradable prices. Marketable securities and investments with liquid prices are valued using prices from publicly available sources and classified as Level 1. Marketable securities and investments with less-liquid prices are valued using third-party quotes or internally developed models and classified as Level 2 or Level 3 as described below.
Level 3 Measurements
The following relates to assets and liabilities measured at fair value on a recurring basis using Level 3 measurements. An instrument may transfer into or out of Level 3 due to inputs becoming either observable or unobservable.
Level 3 Measurements—Transfers in and/or out of Level 3 represent existing assets or liabilities that were either previously categorized as a higher level for which the inputs to the model became unobservable or assets and liabilities that were previously classified as Level 3 for which the lowest significant input became observable during the period. Bunge's policy regarding the timing of transfers between levels is to record the transfers at the end of the reporting period.
Level 3 Readily marketable inventories and Trade accounts payable—The significant unobservable inputs resulting in Level 3 classification for RMI, physically settled forward purchase and sales contracts, and Trade accounts payable relate to certain management estimations regarding costs of transportation and other local market or location-related adjustments, primarily freight related adjustments in the interior of Brazil and the lack of market corroborated information in Canada. In both situations, the Company uses proprietary information such as purchase and sales contracts and contracted prices to value freight, premiums and discounts in its contracts. Movements in the price of these unobservable inputs alone would not be expected to have a material effect on the Company's financial statements as these contracts do not typically exceed one future crop cycle.
Level 3 Derivatives—Level 3 derivative instrument fair value measurements utilize both market observable and unobservable inputs. These inputs include commodity prices, price volatility, interest rates, volumes, and locations.
Level 3 Others—Primarily relates to marketable securities and investments valued using third-party quotes or pricing models with inputs based on similar securities adjusted to reflect management’s best estimate of the specific characteristics of the securities held by the Company. Such inputs represent a significant component of the fair value of the securities held by the Company, resulting in the securities being classified as Level 3.
The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2025 and 2024. These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant.
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| (US$ in millions) | Readily Marketable Inventories | Derivatives, Net | Trade Accounts Payable | Total | |||||||||||||||||||
| Balance, January 1, 2025 | $ | 419 | $ | 30 | $ | (62) | $ | 387 | |||||||||||||||
| 571 | (94) | 14 | 491 | ||||||||||||||||||||
| Purchases | 3,554 | — | (445) | 3,109 | |||||||||||||||||||
| Sales | (3,288) | — | — | (3,288) | |||||||||||||||||||
| Settlements | — | — | 416 | 416 | |||||||||||||||||||
| Transfers into Level 3 | 2,936 | 121 | (32) | 3,025 | |||||||||||||||||||
| Transfers out of Level 3 | (2,862) | (42) | 35 | (2,869) | |||||||||||||||||||
| Translation adjustment | 77 | 6 | (21) | 62 | |||||||||||||||||||
| Balance, December 31, 2025 | $ | 1,407 | $ | 21 | $ | (95) | $ | 1,333 | |||||||||||||||
(1)es, derivatives, net, and trade accounts payable include gains/(losses) of $474 million, $(50) million, and $10 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2025.
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| (US$ in millions) | Readily Marketable Inventories | Derivatives, Net | Trade Accounts Payable | Total | |||||||||||||||||||
| Balance, January 1, 2024 | $ | 662 | $ | 71 | $ | (232) | $ | 501 | |||||||||||||||
| 645 | (59) | 15 | 601 | ||||||||||||||||||||
| Purchases | 1,704 | — | (444) | 1,260 | |||||||||||||||||||
| Sales | (2,341) | — | — | (2,341) | |||||||||||||||||||
| Settlements | — | — | 607 | 607 | |||||||||||||||||||
| Transfers into Level 3 | 1,507 | 26 | (238) | 1,295 | |||||||||||||||||||
| Transfers out of Level 3 | (1,576) | (6) | 156 | (1,426) | |||||||||||||||||||
| Translation Adjustment | (182) | (2) | 74 | (110) | |||||||||||||||||||
| Balance, December 31, 2024 | $ | 419 | $ | 30 | $ | (62) | $ | 387 | |||||||||||||||
(1)Readily marketable inventories, derivatives, net, and trade accounts payable, include gains/(losses) of $591 million, $(42) million, and $11 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.