Leases

4 Months Ended

Apr. 22, 2023

5. 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 22, 2023		April 23, 2022
Lease modifications and renewals	$	17,348	$	13,815
Lease terminations	$	36	$	1,024

The lease modifications and renewals for the sixteen weeks ended April 22, 2023 include $10.6 million related to a 10-year extension for a freezer storage lease that occurred during our first quarter of Fiscal 2023. For the sixteen weeks ended April 23, 2022, the lease modifications and renewals include $11.2 million related to a 10-year extension for a warehouse lease.

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 22, 2023 and April 23, 2022 were as follows (amounts in thousands):


	For the Sixteen Weeks Ended
	April 22, 2023		April 23, 2022
Lease cost:
Amortization of right-of-use assets	$	524	$	524
Interest on lease liabilities		16		35
Operating lease cost		19,318		19,648
Short-term lease cost		825		698
Variable lease cost		10,924		9,638
Total lease cost	$	31,607	$	30,543


	For the Sixteen Weeks Ended
	April 22, 2023		April 23, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases	$	16	$	35
Operating cash flows from operating leases	$	21,134	$	16,400
Financing cash flows from financing leases	$	599	$	426
Right-of-use assets obtained in exchange for new financing lease liabilities	$	—	$	—
Right-of-use assets obtained in exchange for new operating lease liabilities	$	17,628	$	14,834


Weighted-average remaining lease term (years):
Financing leases			0.8
Operating leases			7.7
Weighted-average IBR (percentage):
Financing leases			3.4
Operating leases			3.9

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 22, 2023 (in thousands) were as follows:


	Operating lease liabilities			Financing lease liabilities
Remainder of 2023	$	40,771		$	1,214
2024		55,881			104
2025		53,146			—
2026		36,677			—
2027		30,903			—
2028 and thereafter		119,581			—
Total minimum lease payments		336,959			1,318
Less: amount of lease payments representing interest		(50,432	)		(16	)
Present value of future minimum lease payments		286,527			1,302
Less: current obligations under leases		(49,606	)		(1,232	)
Long-term lease obligations	$	236,921		$	70