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16 Return on
Invested Capital Bunge calculates Return on Invested Capital (ROIC) as net
income plus/minus minority interest, income tax (benefit) expense,
discontinued operations-loss/gain and interest expense times the effective
tax rate divided by the average total capital. Bunge believes that ROIC
provides investors with a measure of the return the company generates on the
capital invested in its business. ROIC is not a measure of financial
performance under generally accepted accounting principles and should not be
considered in isolation or as an alternative to net income as an indicator of
company performance or as an alternative to cash flows from operating
activities as a measure of liquidity. Backup: Non-GAAP Reconciliation Notes
(US$ in millions) FISCAL YEAR ENDED DECEMBER 31, 2007 2006 2005 2004 2003
2002 2001 Net income $778 $521 $530 $469 $411 $255 $134 Add back/subtract:
Minority interest 146 60 71 146 104 102 72 Income tax (benefit) expense 310
(36) (82) 289 201 104 68 Interest expense 353 280 231 214 215 176 223
Discontinued operations-loss/(gain) 7 (3) (3) Cumulative effect of
change in accounting principles 23 (7) Gain on sale of soy
ingredients business (111) Operating income before tax $1,587
$825 $750 $1,118 $827 $657 $487 Effective tax rate 26% 0% 0% 32% 33% 22% 26%
Operating income after tax $1,174 $825 $750 $760 $554 $512 $360 Shareholders
equity $7,945 $5,668 $4,226 $3,375 $2,377 $1,472 $1,376 Minority interest 752
410 325 280 554 495 493 Total Debt 4,547 3,484 3,146 3,281 3,394 3,403 1,813
Total capital $13,244 $9,561 $7,697 $6,936 $6,325 $5,370 $3,682 Total capital
(end of year) $13,244 $9,561 $7,697 $6,936 $6,325 $5,370 $3,682 Total capital
(beginning of year) $9,561 $7,697 $6,936 $6,325 $5,370 $3,682 $4,207 Average
total capital $11,403 $8,629 $7,317 $6,631 $5,848 $4,526 $3,945 ROIC 10% 10%
10% 11% 9% 11% 9%
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