Bunge Global SABG
Bunge Global SA Leases Disclosure
LEASES
The Company routinely leases storage facilities, transportation equipment, land, and office facilities which are typically classified as operating leases. The accounting for some of the Company's leases may require significant judgment when determining whether a contract is or contains a lease, the lease term, and the likelihood of renewal or termination options. Leases with an initial term of more than 12 months are recognized on the consolidated balance sheet as right-of-use assets (Operating lease assets) and lease liabilities for the obligation to make payments under such leases (Current operating lease obligations and Non-current operating lease obligations). As of the lease commencement date, the lease liability is initially measured as the present value of lease payments not yet paid. The lease asset is initially measured equal to the lease liability
and adjusted for lease payments made at or before lease commencement (e.g., prepaid rent), lease incentives, and any initial direct costs. Over time, the lease liability is reduced for lease payments made and the lease asset is reduced through expense, classified as either Cost of goods sold or Selling, general and administrative expense depending upon the nature of the lease. Lease assets are subject to review for impairment in a manner consistent with property, plant and equipment. Leases with an initial term of 12 months or less ("short-term leases") are not recorded on the consolidated balance sheets and the related lease expense is recognized on a straight-line basis over the lease term.
The Company’s operating leases range in length of term, with a weighted average remaining lease term of 7.6 years, and a maximum remaining term of 75 years for one land lease in Australia. Renewal options are generally exercisable solely at the Company’s discretion. When a renewal option is reasonably certain to be exercised, such additional terms are considered when calculating the associated operating lease asset and liability. When determining the lease liability at commencement of the lease, the present value of lease payments is generally based on the Company’s incremental borrowing rate determined using a portfolio approach and the Company’s incremental cost of debt, adjusted to arrive at the rate in the applicable country and for the applicable term of the lease, as the rate implicit in the lease is generally not readily determinable. As of December 31, 2025, such weighted average discount rate on operating leases was 5.8%.
Certain of the Company’s freight supply agreements for ocean freight vessels and rail cars may include rental payments that are variable in nature. Variable payments on time charter agreements for ocean freight vessels under freight supply agreements are dependent on then current market daily hire rates. Variable payments for certain rail cars can be based on volumes, and in some cases, benchmark interest rates. All such variable payments, other than those that depend on an index or rate, are not included in the calculation of the associated operating lease asset or liability subsequent to the inception date of the associated lease and are recorded as expense in the period in which the adjustment to the variable payment obligation is incurred. Certain of the Company’s lease agreements related to railcars and barges contain residual value guarantees (see Note 20- Commitments and Contingencies). None of the Company’s lease agreements contain material restrictive covenants.
The components of lease expense were as follows:
| Year Ended December 31, | |||||||||||||||||
| (US$ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Operating lease cost | $ | 550 | $ | 420 | $ | 507 | |||||||||||
| Short-term lease cost | 1,043 | 1,054 | $ | 747 | |||||||||||||
| Variable lease cost | 40 | 42 | $ | 47 | |||||||||||||
| Total lease cost | $ | 1,633 | $ | 1,516 | $ | 1,301 | |||||||||||
The table below presents the finance lease-related assets and liabilities recorded on the consolidated balance sheets:
| December 31, | |||||||||||
| (US$ in millions) | 2025 | 2024 | |||||||||
| Property, plant and equipment | $ | 228 | $ | 151 | |||||||
| Less: accumulated depreciation and depletion | (60) | (44) | |||||||||
| $ | 168 | $ | 107 | ||||||||
| $ | 23 | $ | 7 | ||||||||
| 157 | 80 | ||||||||||
| Total finance lease liabilities | $ | 180 | $ | 87 | |||||||
Supplemental cash flow information related to leases was as follows:
| Year Ended December 31, | |||||||||||||||||
| (US$ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating lease liability principal payments | $ | 548 | $ | 421 | $ | 506 | |||||||||||
| Supplemental non-cash information: | |||||||||||||||||
Right-of-use assets obtained in exchange for lease obligations (1) | $ | 1,240 | $ | 449 | $ | 403 | |||||||||||
(1)Comprises both operating and finance lease obligations. Right-of-use-assets obtained in exchange for lease obligations includes assets acquired in the Viterra Acquisition. See Note 2- Acquisitions and Dispositions for additional information.
Maturities of operating and finance lease liabilities as of December 31, 2025 were as follows:
| (US$ in millions) | Operating leases | Finance leases | ||||||||||||
| 2026 | $ | 568 | $ | 32 | ||||||||||
| 2027 | 371 | 29 | ||||||||||||
| 2028 | 271 | 27 | ||||||||||||
| 2029 | 188 | 26 | ||||||||||||
| 2030 | 107 | 14 | ||||||||||||
| Thereafter | 487 | 147 | ||||||||||||
Total lease payments (1) | 1,992 | 275 | ||||||||||||
| Less imputed interest | (394) | (95) | ||||||||||||
| Present value of lease liabilities | $ | 1,598 | $ | 180 | ||||||||||
| Less present value of lease liabilities held for sale | (2) | — | ||||||||||||
| Present value of lease liabilities, as separately presented on the consolidated balance sheet | $ | 1,596 | $ | 180 | ||||||||||
(1)Minimum lease payments have not been reduced by minimum sublease income receipts of $73 million due in future periods under non-cancelable subleases as of December 31, 2025. Non-cancelable subleases primarily relate to agreements with third parties for the use of portions of certain facilities with remaining sublease terms of up to ten years. Additionally, from time to time, the Company may enter into re-let agreements to sell the right to use ocean freight vessels under time charter agreements when excess capacity is available. Sublease income for both short term and long term leases, generally recorded within Net sales, was $136 million and $229 million for the years ended December 31, 2025 and 2024, respectively.
The Company is expected to have additional operating lease payments, primarily for ocean freight vessels and port rights that have not yet commenced, of $408 million. The operating leases are expected to commence between 2026 and 2027, with lease terms ranging between and 47 years.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.