Leases

9 Months Ended

Oct. 07, 2023

Leases [Abstract]

Leases

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 Forty Weeks Ended
	October 7, 2023		October 8, 2022		October 7, 2023		October 8, 2022
Lease modifications and renewals	$	3,820	$	3,353	$	28,585	$	22,007
Lease terminations	$	71	$	155	$	277	$	5,883

The lease modifications and renewals for the forty weeks ended October 7, 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 forty weeks ended October 8, 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 forty weeks ended October 7, 2023 and October 8, 2022 were as follows (amounts in thousands):

	For the Twelve Weeks Ended				For the Forty Weeks Ended
	October 7, 2023		October 8, 2022		October 7, 2023		October 8, 2022
Lease cost:
Amortization of right-of-use assets	$	396	$	394	$	1,313	$	1,311
Interest on lease liabilities		5		20		30		77
Operating lease cost		14,397		13,886		48,212		48,165
Short-term lease cost		755		748		2,367		2,121
Variable lease cost		8,802		7,517		28,515		25,378
Total lease cost	$	24,355	$	22,565	$	80,437	$	77,052

	For the Forty Weeks Ended
	October 7, 2023		October 8, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases	$	30	$	77
Operating cash flows from operating leases	$	52,134	$	46,982
Financing cash flows from financing leases	$	1,513	$	1,306
Right-of-use assets obtained in exchange for new financing lease liabilities	$	21	$	—
Right-of-use assets obtained in exchange for new operating lease liabilities	$	28,566	$	21,357

Weighted-average remaining lease term (years):
Financing leases	0.8
Operating leases	7.4
Weighted-average IBR (percentage):
Financing leases	3.3
Operating leases	4.0

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 7, 2023 (in thousands) were as follows:

	Operating lease liabilities			Financing lease liabilities
Remainder of 2023	$	10,901		$	294
2024		58,910			98
2025		56,267			18
2026		39,796			7
2027		33,465			3
2028 and thereafter		121,566			—
Total minimum lease payments		320,905			420
Less: amount of lease payments representing interest		(49,706	)		(5	)
Present value of future minimum lease payments		271,199			415
Less: current obligations under leases		(49,346	)		(381	)
Long-term lease obligations	$	221,853		$	34