t financing working capital to the appropriate
operating segments. Additionally, Bunge believes total segment operating
profit assists investors by allowing them to evaluate changes in the
operating results of its portfolio of businesses before non-operating
factors that affect net income. Total segment operating profit is not a
measure of consolidated operating results under U.S. GAAP and should not be
considered as an alternative to income from operations before income tax or
any other measure of consolidated operating results under U.S. GAAP.
Below is a reconciliation of income from operations before income tax
to total segment operating profit:
Quarter Ended Year Ended
December 31, December 31,
(In millions) 2007 2006 2007 2006
Income from operations
before income tax $350 $230 $1,201 $522
Unallocated income - net(1) (10) (38) (39) (79)
Total segment operating profit $340 $192 $1,162 $443
(1) Includes interest income, interest expense and foreign exchange gains
and losses and other income and expenses not directly attributable to
Bunge's operating segments.
Net Financial Debt
Net financial debt is the sum of short-term debt, current maturities of
long-term debt and long-term debt, less cash and cash equivalents and
marketable securities. Net financial debt is presented because management
believes it represents a meaningful measure of Bunge's leverage capacity
and solvency. Net financial debt is not a measure of solvency under U.S.
GAAP and should not be considered as an alternative to total debt as a
measure of solvency.
Net financial debt less readily marketable inventories (RMI), or net
financial debt less RMI, is the sum of short-term debt, current m
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SOURCE Bunge Limited Copyright©2008 PR Newswire. All rights reserved | |
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