Leases

12 Months Ended

Dec. 31, 2022

Note 13. Leases

Qualitative disclosures about our leases, including the significant policy elections, can be found in Note 2, Summary of Significant Accounting Policies. The quantitative disclosures are presented below.

Lease costs incurred by lease type, and/or type of payment for Fiscal 2022, 2021 and 2020 were as follows (in thousands):


	Fiscal 2022		Fiscal 2021		Fiscal 2020
Lease cost:
Amortization of right-of-use assets	$	1,705	$	1,751	$	7,190
Interest on lease liabilities		93		154		846
Operating lease cost		62,115		68,927		69,926
Short-term lease cost		2,897		3,075		3,058
Variable lease cost		33,223		27,120		24,815
Total lease cost	$	100,033	$	101,027	$	105,835

Other supplemental quantitative disclosures as of, and for, Fiscal 2022 and Fiscal 2021 were as follows (in thousands):


	Fiscal 2022		Fiscal 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases	$	93	$	154
Operating cash flows from operating leases	$	57,166	$	68,802
Financing cash flows from financing leases	$	1,597	$	1,745
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	$	33,559	$	55,869
Weighted-average remaining lease term (years):
Financing leases		1.1		2.1
Operating leases		7.8		8.3
Weighted-average IBR (percentage):
Financing leases		3.5		3.5
Operating leases		3.8		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 December 31, 2022 (in thousands) were as follows:


	Operating lease liabilities			Financing lease liabilities
2023	$	61,406		$	1,828
2024		55,035			100
2025		52,379			—
2026		36,159			—
2027		30,509			—
Thereafter		114,359			—
Total minimum lease payments		349,847			1,928
Less: amount of lease payments representing interest		(68,880	)		(33	)
Present value of future minimum lease payments		280,967			1,895
Less: current obligations under leases		(43,990	)		(1,779	)
Long-term lease obligations	$	236,977		$	116

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


	Fiscal 2022		Fiscal 2021
Lease modifications and renewals	$	28,278	$	46,790
Lease terminations	$	6,035	$	41,610

The lease modifications and renewals for Fiscal 2022 include $11.2 million related to a 10 year extension for a warehouse lease. For Fiscal 2021, the lease modifications and renewals include $28.9 million related to a five year extension for a freezer storage lease.

During Fiscal 2021, the company purchased twenty-seven warehouses that were included in the company’s operating leased assets for $64.7 million. Two of the purchased properties were fully impaired in Fiscal 2020, resulting in the recognition of a $2.6 million gain upon completion of the purchase of these assets and this amount is included in the selling, distribution, and administrative expenses line items of the Consolidated Statements of Income. The carrying values for the remaining twenty-five leases, totaling $35.4 million, are included in the ‘Lease terminations’ line above.