Leases

4 Months Ended

Apr. 20, 2024

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 20, 2024		April 22, 2023
Lease modifications and renewals	$	16,465	$	17,348
Lease terminations	$	1,331	$	36

The lease modifications and renewals for the sixteen weeks ended April 20, 2024 include renewals of multiple warehouse leases. 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.

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 20, 2024 and April 22, 2023 were as follows (amounts in thousands):


	For the Sixteen Weeks Ended
	April 20, 2024		April 22, 2023
Lease cost:
Amortization of right-of-use assets	$	87	$	524
Interest on lease liabilities		2		16
Operating lease cost		21,079		19,318
Short-term lease cost		703		825
Variable lease cost		13,777		10,924
Total lease cost	$	35,648	$	31,607


	For the Sixteen Weeks Ended
	April 20, 2024		April 22, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases	$	2	$	16
Operating cash flows from operating leases	$	22,461	$	21,134
Financing cash flows from financing leases	$	95	$	599
Right-of-use assets obtained in exchange for new financing lease liabilities	$	140	$	—
Right-of-use assets obtained in exchange for new operating lease liabilities	$	27,003	$	17,628


Weighted-average remaining lease term (years):
Financing leases			1.5
Operating leases			7.1
Weighted-average IBR (percentage):
Financing leases			2.9
Operating leases			4.3

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 20, 2024 (in thousands) were as follows:


	Operating lease liabilities			Financing lease liabilities
Remainder of 2024	$	47,991		$	142
2025		68,777			26
2026		50,752			15
2027		42,644			10
2028		33,239			4
2029 and thereafter		111,647			—
Total minimum lease payments		355,050			197
Less: amount of lease payments representing interest		(50,053	)		(4	)
Present value of future minimum lease payments		304,997			193
Less: current obligations under leases		(57,610	)		(153	)
Long-term lease obligations	$	247,387		$	40