This excerpt taken from the BG 10-K filed Mar 1, 2007.
Property, Plant and Equipment, NetProperty, plant and equipment, net is stated at cost less accumulated depreciation and depletion. Major improvements that extend the life, capacity or efficiency and improve the safety of the asset are capitalized, while minor maintenance and repairs are expensed as incurred. Costs related to legal obligations associated with the retirement of assets are capitalized and depreciated over the lives of the underlying assets. Depreciation is computed based on the straight line method over the estimated useful lives of the assets. Useful lives for property, plant and equipment are as follows:
Included in property, plant and equipment are mining properties that are stated at cost less accumulated depletion. Depletion is calculated using the unit of production method based on proven and probable reserves. The useful lives of Bunges mines operated in its fertilizer operations, relating to the reserve depletion, range from 18 to 55 years.
Bunge capitalizes interest on borrowings during the construction period of major capital projects. The capitalized interest is recorded as part of the asset to which it relates, and is depreciated over the assets estimated useful life.
This excerpt taken from the BG 10-K filed Mar 16, 2005.
6. Property, Plant and Equipment, Net
Property, plant and equipment consist of the following:
Bunge capitalized interest on construction in progress in the amount of $6 million, $8 million and $6 million in 2004, 2003 and 2002, respectively. Depreciation and depletion expense was $208 million, $182 million and $166 million in 2004, 2003 and 2002, respectively.