Leases

6 Months Ended

Jul. 16, 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 Twelve Weeks Ended				For the Twenty-Eight Weeks Ended
	July 16, 2022		July 17, 2021		July 16, 2022		July 17, 2021
Lease modifications and renewals	$	4,839	$	3,377	$	18,654	$	37,702
Lease terminations	$	4,704	$	2,337	$	5,728	$	2,654

The lease modifications and renewals for the twenty-eight weeks ended July 16, 2022 include $11.2 million related to a 10 year extension for a warehouse lease that occurred during our first quarter of Fiscal 2022. For the twenty-eight weeks ended July 17, 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 twenty-eight weeks ended July 16, 2022 and July 17, 2021 were as follows (amounts in thousands):


	For the Twelve Weeks Ended				For the Twenty-Eight Weeks Ended
	July 16, 2022		July 17, 2021		July 16, 2022		July 17, 2021
Lease cost:
Amortization of right-of-use assets	$	393	$	409	$	917	$	951
Interest on lease liabilities		22		38		57		92
Operating lease cost		14,631		16,263		34,279		37,696
Short-term lease cost		675		550		1,373		1,501
Variable lease cost		8,223		6,066		17,861		12,952
Total lease cost	$	23,944	$	23,326	$	54,487	$	53,192


	For the Twenty-Eight Weeks Ended
	July 16, 2022		July 17, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases	$	57	$	92
Operating cash flows from operating leases	$	32,101	$	35,710
Financing cash flows from financing leases	$	864	$	866
Right-of-use assets obtained in exchange for new financing lease liabilities	$	—	$	37
Right-of-use assets obtained in exchange for new operating lease liabilities	$	16,217	$	41,796


Weighted-average remaining lease term (years):
Financing leases			1.6
Operating leases			8.2
Weighted-average IBR (percentage):
Financing leases			3.5
Operating leases			3.8

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 July 16, 2022 (in thousands) were as follows:


	Operating lease liabilities			Financing lease liabilities
Remainder of 2022	$	25,445		$	768
2023		55,292			1,828
2024		49,191			100
2025		46,265			—
2026		31,775			—
2027 and thereafter		137,694			—
Total minimum lease payments		345,662			2,696
Less: amount of lease payments representing interest		(55,642	)		(68	)
Present value of future minimum lease payments		290,020			2,628
Less: current obligations under leases		(47,631	)		(1,766	)
Long-term lease obligations	$	242,389		$	862