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Leases

12 Months Ended

Dec. 31, 2024

Note 5 − Leases

Seaboard leases ports, vessels, contract grower assets, and to a lesser extent, land, buildings and machinery and equipment. Seaboard’s non-lease components are primarily for services related to labor associated with crew services on vessel charter arrangements and caring for hogs in its contract grower agreements.

Seaboard’s operating lease assets and liabilities are reported separately in the consolidated balance sheets. The classifications of Seaboard’s finance leases in the consolidated balance sheets were as follows:



(Millions of dollars)			2024		2023
Finance lease right-of-use assets, net	Property, plant and equipment, net	$	96	$	148
Finance lease liabilities	Other current liabilities		29		51
Non-current finance lease liabilities	Other liabilities		68		96

Lease cost is included in various line items in the consolidated statements of comprehensive income or capitalized to inventory. Operating lease cost and short-term lease cost are recognized on a straight-line basis over the lease term. Finance lease cost is recognized based on the effective interest method for the lease liability and straight-line amortization of the ROU asset. Variable lease payments are recognized when the circumstance on which those payments are assessed occurs.

The components of lease cost were as follows for the years ended December 31:



(Millions of dollars)		2024		2023		2022
Operating lease cost	$	182	$	190	$	184
Finance lease cost:
Amortization of right-of-use assets		50		54		46
Interest on lease liabilities		5		6		6
Variable lease cost ^(a)		6		10		18
Short-term lease cost ^(b)		7		9		13
Sublease income		—		(7)		(6)
Total lease cost	$	250	$	262	$	261

(a)	Includes throughput of cargo containers in excess of minimums and changes in indexed charter hire rates.

(b)	Short-term leases are primarily for cargo containers and vessels.

Weighted-average lease terms and discount rates were as follows as of December 31, 2024 and 2023:



	Operating Leases		Finance Leases
	2024	2023	2024	2023
Weighted-average remaining term (in years)	5	6	6	5
Weighted-average discount rate	6.83%	6.63%	4.37%	3.79%

Maturities of lease liabilities as of December 31, 2024 were as follows:



		Operating		Finance
(Millions of dollars)		Leases		Leases
2025	$	158	$	33
2026		92		19
2027		71		13
2028		52		11
2029		27		10
Thereafter		96		27
Total undiscounted lease payments		496		113
Less: imputed interest		86		16
Total lease liability	$	410	$	97

The following table includes supplemental cash and non-cash information related to leases. Seaboard reports the amortization of ROU assets and changes in operating lease liabilities in other liabilities, exclusive of debt in the consolidated statements of cash flows.



	Years ended December 31,
(Millions of dollars)		2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	179	$	193	$	194
Operating cash flows from finance leases		5		6		6
Financing cash flows from finance leases		49		57		44
ROU assets obtained in exchange for new lease liabilities:
Operating leases	$	142	$	117	$	118
Finance leases		3		5		116