Leases

6 Months Ended

Jul. 15, 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 Twelve Weeks Ended				For the Twenty-Eight Weeks Ended
	July 15, 2023		July 16, 2022		July 15, 2023		July 16, 2022
Lease modifications and renewals	$	7,417	$	4,839	$	24,765	$	18,654
Lease terminations	$	169	$	4,704	$	205	$	5,728

The lease modifications and renewals for the twenty-eight weeks ended July 15, 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 twenty-eight weeks ended July 16, 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 twelve and twenty-eight weeks ended July 15, 2023 and July 16, 2022 were as follows (amounts in thousands):


	For the Twelve Weeks Ended				For the Twenty-Eight Weeks Ended
	July 15, 2023		July 16, 2022		July 15, 2023		July 16, 2022
Lease cost:
Amortization of right-of-use assets	$	393	$	393	$	917	$	917
Interest on lease liabilities		9		22		25		57
Operating lease cost		14,497		14,631		33,815		34,279
Short-term lease cost		787		675		1,612		1,373
Variable lease cost		8,789		8,223		19,713		17,861
Total lease cost	$	24,475	$	23,944	$	56,082	$	54,487


	For the Twenty-Eight Weeks Ended
	July 15, 2023		July 16, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases	$	25	$	57
Operating cash flows from operating leases	$	36,627	$	32,101
Financing cash flows from financing leases	$	1,052	$	864
Right-of-use assets obtained in exchange for new operating lease liabilities	$	25,193	$	16,217


Weighted-average remaining lease term (years):
Financing leases			0.7
Operating leases			7.5
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 July 15, 2023 (in thousands) were as follows:


	Operating lease liabilities			Financing lease liabilities
Remainder of 2023	$	26,089		$	753
2024		57,418			104
2025		54,865			—
2026		38,182			—
2027		32,414			—
2028 and thereafter		119,949			—
Total minimum lease payments		328,917			857
Less: amount of lease payments representing interest		(48,223	)		(9	)
Present value of future minimum lease payments		280,694			848
Less: current obligations under leases		(49,882	)		(807	)
Long-term lease obligations	$	230,812		$	41