Leases

4 Months Ended

Apr. 23, 2022

3. LEASES

The company’s leases consist of the following types of assets: two bakeries, corporate office space, warehouses, bakery equipment, transportation and IT equipment. The quantitative disclosures for our leases follow below.

The following table details lease modifications and renewals and lease terminations (amounts in thousands):


	For the Sixteen Weeks Ended
	April 23, 2022		April 24, 2021
Lease modifications and renewals	$	13,815	$	34,325
Lease terminations	$	1,024	$	317

The lease modifications and renewals for the sixteen weeks ended April 23, 2022 include $11.2 million related to a 10 year extension for a warehouse lease. For the sixteen weeks ended April 24, 2021, the lease modifications and renewals include $28.9 million related to a five year extension for a freezer storage lease executed during the first quarter of Fiscal 2021.

Lease costs incurred by lease type, and/or type of payment, and other supplemental quantitative disclosures as of and for the sixteen weeks ended April 23, 2022 and April 24, 2021 were as follows (amounts in thousands):


	For the Sixteen Weeks Ended
	April 23, 2022		April 24, 2021
Lease cost:
Amortization of right-of-use assets	$	524	$	542
Interest on lease liabilities		35		54
Operating lease cost		19,648		21,433
Short-term lease cost		698		951
Variable lease cost		9,638		6,886
Total lease cost	$	30,543	$	29,866


	For the Sixteen Weeks Ended
	April 23, 2022		April 24, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases	$	35	$	54
Operating cash flows from operating leases	$	16,400	$	18,348
Financing cash flows from financing leases	$	426	$	423
Right-of-use assets obtained in exchange for new operating lease liabilities	$	14,834	$	34,554


Weighted-average remaining lease term (years):
Financing leases			1.8
Operating leases			8.2
Weighted-average IBR (percentage):
Financing leases			3.5
Operating leases			3.7

Estimated undiscounted future lease payments under non-cancelable operating leases and financing leases, along with a reconciliation of the undiscounted cash flows to operating and financing lease liabilities, respectively, as of April 23, 2022 (in thousands) were as follows:


	Operating lease liabilities			Financing lease liabilities
Remainder of 2022	$	42,032		$	1,229
2023		56,881			1,828
2024		48,232			100
2025		45,263			—
2026		30,790			—
2027 and thereafter		136,463			—
Total minimum lease payments		359,661			3,157
Less: amount of lease payments representing interest		(58,010	)		(91	)
Present value of future minimum lease payments		301,651			3,066
Less: current obligations under leases		(50,740	)		(1,752	)
Long-term lease obligations	$	250,911		$	1,314