Leases

9 Months Ended

Oct. 08, 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 Forty Weeks Ended
	October 8, 2022		October 9, 2021		October 8, 2022		October 9, 2021
Lease modifications and renewals	$	3,353	$	6,965	$	22,007	$	44,667
Lease terminations	$	155	$	2,289	$	5,883	$	4,943

The lease modifications and renewals for the forty weeks ended October 8, 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 forty weeks ended October 9, 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 forty weeks ended October 8, 2022 and October 9, 2021 were as follows (amounts in thousands):


	For the Twelve Weeks Ended				For the Forty Weeks Ended
	October 8, 2022		October 9, 2021		October 8, 2022		October 9, 2021
Lease cost:
Amortization of right-of-use assets	$	394	$	408	$	1,311	$	1,359
Interest on lease liabilities		20		32		77		124
Operating lease cost		13,886		15,612		48,165		53,308
Short-term lease cost		748		654		2,121		2,155
Variable lease cost		7,517		6,425		25,378		19,377
Total lease cost	$	22,565	$	23,131	$	77,052	$	76,323


	For the Forty Weeks Ended
	October 8, 2022		October 9, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases	$	77	$	124
Operating cash flows from operating leases	$	46,982	$	52,389
Financing cash flows from financing leases	$	1,306	$	1,311
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	$	21,357	$	48,684


Weighted-average remaining lease term (years):
Financing leases			1.3
Operating leases			8.1
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 October 8, 2022 (in thousands) were as follows:


	Operating lease liabilities			Financing lease liabilities
Remainder of 2022	$	10,644		$	307
2023		56,893			1,828
2024		50,932			100
2025		48,134			—
2026		32,940			—
2027 and thereafter		139,637			—
Total minimum lease payments		339,180			2,235
Less: amount of lease payments representing interest		(57,281	)		(49	)
Present value of future minimum lease payments		281,899			2,186
Less: current obligations under leases		(47,118	)		(1,780	)
Long-term lease obligations	$	234,781		$	406