| Leases |
12 Leases
The Group recognizes a right of use asset
and a lease liability at the lease commencement date. The right of use asset is initially measured at cost and subsequently, at cost less
any accumulated depreciation and impairment and adjusted for certain remeasurement of lease liabilities.
The lease liability is initially measured
at the present value of the lease payments that were not paid at the start date, discounted at the interest rate implicit in the lease
agreement. When the implicit rate cannot be readily determined, the incremental borrowing rate is used as discount rate.
The Group when measuring and remeasuring
its lease liabilities and the right of use, used the discounted cash flow technique without considering projected future inflation in
the flows to be discounted. Such prohibition generates relevant distortions in the information to be provided, given the current reality
of long-term interest rates in the Brazilian economic environment.
The expenses related to these leases is
recognized as cost of depreciation of right of use assets. Financial expenses on lease obligations are recognized and demonstrated as
interest expense.
The Group uses the optional exemption
to not recognize a right of use asset and lease liability for short term (less than 12 months) and low value leases. The average discount
rate used for measuring lease liabilities was 5.24% as of December 31, 2025 (5.16% and 5.85%
as of December 31, 2024 and 2023 respectively).
12.1 Right of use asset
| | |
| |
| | |
| | |
Net amount | |
| | |
Range of
lease terms | |
Cost | | |
Accumulated
amortization | | |
December 31,
2025 | | |
December 31,
2024 | |
| Growing facilities | |
1 to 13 years | |
| 1,353,319 | | |
| (700,508 | ) | |
| 652,811 | | |
| 632,267 | |
| Buildings | |
2 to 30 years | |
| 936,706 | | |
| (302,542 | ) | |
| 634,164 | | |
| 638,981 | |
| Vehicles (land) | |
1 to 20 years | |
| 415,418 | | |
| (229,022 | ) | |
| 186,396 | | |
| 189,036 | |
| Machinery and equipment | |
1 to 10 years | |
| 231,277 | | |
| (132,294 | ) | |
| 98,983 | | |
| 106,597 | |
| Operating plants | |
1 to 11 years | |
| 22,082 | | |
| (13,972 | ) | |
| 8,110 | | |
| 8,622 | |
| Land | |
1 to 30 years | |
| 43,913 | | |
| (25,472 | ) | |
| 18,441 | | |
| 15,999 | |
| Computer equipment | |
1 to 5 years | |
| 33,309 | | |
| (18,567 | ) | |
| 14,742 | | |
| 5,371 | |
| Concession Agreement | |
1 year | |
| 4,006 | | |
| (4,006 | ) | |
| — | | |
| — | |
| | |
| |
| 3,040,030 | | |
| (1,426,383 | ) | |
| 1,613,647 | | |
| 1,596,873 | |
Changes in the right of use asset:
| | |
Balance at
January 1,
2025 | | |
Additions (1) | | |
Terminated
contracts | | |
Amortization | | |
Exchange rate
variation | | |
Balance at
December 31,
2025 | |
| Growing facilities | |
| 632,267 | | |
| 151,508 | | |
| (26,326 | ) | |
| (145,753 | ) | |
| 41,115 | | |
| 652,811 | |
| Buildings | |
| 638,981 | | |
| 98,484 | | |
| (41,477 | ) | |
| (97,399 | ) | |
| 35,575 | | |
| 634,164 | |
| Vehicles (land) | |
| 189,036 | | |
| 76,689 | | |
| (12,627 | ) | |
| (73,048 | ) | |
| 6,346 | | |
| 186,396 | |
| Machinery and equipment | |
| 106,597 | | |
| 41,658 | | |
| (6,069 | ) | |
| (52,020 | ) | |
| 8,817 | | |
| 98,983 | |
| Operating plants | |
| 8,622 | | |
| 1,847 | | |
| (202 | ) | |
| (3,227 | ) | |
| 1,070 | | |
| 8,110 | |
| Land | |
| 15,999 | | |
| 4,592 | | |
| — | | |
| (2,922 | ) | |
| 772 | | |
| 18,441 | |
| Computer equipment | |
| 5,371 | | |
| 8,669 | | |
| (204 | ) | |
| 553 | | |
| 353 | | |
| 14,742 | |
| Concession Agreement (2) | |
| — | | |
| 3,771 | | |
| — | | |
| (3,949 | ) | |
| 178 | | |
| — | |
| | |
| 1,596,873 | | |
| 387,218 | | |
| (86,905 | ) | |
| (377,765 | ) | |
| 94,226 | | |
| 1,613,647 | |
| | |
Balance at
January 1,
2024 | | |
Additions | | |
Terminated
contracts | | |
Amortization | | |
Exchange rate
variation | | |
Balance at
December 31,
2024 | |
| Growing facilities | |
| 805,370 | | |
| 98,774 | | |
| (26,827 | ) | |
| (156,494 | ) | |
| (88,556 | ) | |
| 632,267 | |
| Buildings | |
| 532,104 | | |
| 269,599 | | |
| (17,259 | ) | |
| (93,897 | ) | |
| (51,566 | ) | |
| 638,981 | |
| Vehicles (land, air and sea) | |
| 223,720 | | |
| 47,390 | | |
| (2,241 | ) | |
| (72,809 | ) | |
| (7,024 | ) | |
| 189,036 | |
| Machinery and equipment | |
| 90,101 | | |
| 81,335 | | |
| (5,233 | ) | |
| (47,299 | ) | |
| (12,307 | ) | |
| 106,597 | |
| Operating plants | |
| 19,695 | | |
| (108 | ) | |
| (4,035 | ) | |
| (4,099 | ) | |
| (2,831 | ) | |
| 8,622 | |
| Land | |
| 19,186 | | |
| 727 | | |
| (16 | ) | |
| (2,597 | ) | |
| (1,301 | ) | |
| 15,999 | |
| Computer equipment | |
| 15,534 | | |
| 455 | | |
| — | | |
| (8,327 | ) | |
| (2,291 | ) | |
| 5,371 | |
| | |
| 1,705,710 | | |
| 498,172 | | |
| (55,611 | ) | |
| (385,522 | ) | |
| (165,876 | ) | |
| 1,596,873 | |
| | |
Balance at
January 1,
2023 | | |
Acquired in
business
combination | | |
Additions | | |
Terminated
contracts | | |
Amortization | | |
Exchange rate
variation | | |
Balance at
December 31,
2023 | |
| Growing facilities | |
| 823,989 | | |
| (10,552 | ) | |
| 146,905 | | |
| (16,458 | ) | |
| (167,078 | ) | |
| 28,564 | | |
| 805,370 | |
| Buildings | |
| 426,996 | | |
| — | | |
| 190,185 | | |
| (26,573 | ) | |
| (83,876 | ) | |
| 25,372 | | |
| 532,104 | |
| Vehicles (land, air and sea) | |
| 201,655 | | |
| — | | |
| 94,448 | | |
| (884 | ) | |
| (72,532 | ) | |
| 1,033 | | |
| 223,720 | |
| Machinery and equipment | |
| 104,890 | | |
| — | | |
| 33,933 | | |
| (1,120 | ) | |
| (51,140 | ) | |
| 3,538 | | |
| 90,101 | |
| Operating plants | |
| 18,706 | | |
| — | | |
| 6,061 | | |
| (138 | ) | |
| (6,317 | ) | |
| 1,383 | | |
| 19,695 | |
| Land | |
| 19,641 | | |
| — | | |
| 1,438 | | |
| (24 | ) | |
| (2,604 | ) | |
| 735 | | |
| 19,186 | |
| Computer equipment | |
| 9,216 | | |
| — | | |
| 10,728 | | |
| 4 | | |
| (5,225 | ) | |
| 811 | | |
| 15,534 | |
| | |
| 1,605,093 | | |
| (10,552 | ) | |
| 483,698 | | |
| (45,193 | ) | |
| (388,772 | ) | |
| 61,436 | | |
| 1,705,710 | |
| (1) | The additions have been reduced by the PIS/COFINS tax effect.
The net impact is US$5,252, US$4,879 and US$6,956 in the consolidated total respectively as of December 31, 2025, 2024 and 2023. |
| (2) | Of the total amount of additions, US$1,179 refers to the acquisition
of JBS Terminais Ltda. |
12.2 Lease liabilities
| | |
December 31,
2025 | | |
December 31,
2024 | |
| Undiscounted lease payments | |
| 2,187,436 | | |
| 2,135,128 | |
| Present value adjustment | |
| (420,151 | ) | |
| (401,099 | ) |
| | |
| 1,767,285 | | |
| 1,734,029 | |
| Breakdown: | |
| | | |
| | |
| Current liabilities | |
| 354,887 | | |
| 335,681 | |
| Non-current liabilities | |
| 1,412,398 | | |
| 1,398,348 | |
| | |
| 1,767,285 | | |
| 1,734,029 | |
Changes in the lease liability:
| | |
Balance at
January 1,
2025 | | |
Additions | | |
Interest
accrual | | |
Payments | | |
Terminated
contracts | | |
Exchange rate
variation | | |
Balance at
December 31,
2025 | |
| Lease liability | |
| 1,734,029 | | |
| 404,119 | | |
| 104,257 | | |
| (482,847 | ) | |
| (103,976 | ) | |
| 111,703 | | |
| 1,767,285 | |
| | |
Balance at
January 1,
2024 | | |
Additions | | |
Interest
accrual | | |
Payments | | |
Terminated
contracts | | |
Exchange rate
variation | | |
Balance at
December 31,
2024 | |
| Lease liability | |
| 1,841,227 | | |
| 504,963 | | |
| 104,177 | | |
| (473,098 | ) | |
| (60,463 | ) | |
| (182,777 | ) | |
| 1,734,029 | |
| | |
Balance at
January 1,
2023 | | |
Business
Combination
Adjustment | | |
Additions | | |
Interest
accrual | | |
Payments | | |
Terminated
contracts | | |
Exchange rate
variation | | |
Balance at
December 31,
2023 | |
| Lease liability | |
| 1,721,833 | | |
| (10,401 | ) | |
| 421,921 | | |
| 73,463 | | |
| (354,947 | ) | |
| (7,456 | ) | |
| (3,186 | ) | |
| 1,841,227 | |
The non-current portion of the lease liability
schedule is as follows:
| | |
December 31,
2025 | |
| 2026 | |
| — | |
| 2027 | |
| 290,979 | |
| 2028 | |
| 229,723 | |
| 2029 | |
| 193,380 | |
| 2030 | |
| 157,656 | |
| Maturities after 2030 | |
| 861,408 | |
| Total Future Minimum Lease Payments | |
| 1,733,146 | |
| Less: Imputed Interest | |
| (320,748 | ) |
| Present Value of Lease Liabilities | |
| 1,412,398 | |
|