Leases

6 Months Ended

Jul. 13, 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 Twelve Weeks Ended				For the Twenty-Eight Weeks Ended
	July 13, 2024		July 15, 2023		July 13, 2024		July 15, 2023
Lease modifications and renewals	$	4,171	$	7,417	$	20,637	$	24,765
Lease terminations	$	221	$	169	$	1,551	$	205

The lease modifications and renewals for the twenty-eight weeks ended July 13, 2024 include renewals of multiple warehouse leases. 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.

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 13, 2024 and July 15, 2023, respectively, were as follows (amounts in thousands):


	For the Twelve Weeks Ended				For the Twenty-Eight Weeks Ended
	July 13, 2024		July 15, 2023		July 13, 2024		July 15, 2023
Lease cost:
Amortization of right-of-use assets	$	64	$	393	$	151	$	917
Interest on lease liabilities		2		9		4		25
Operating lease cost		16,419		14,497		37,498		33,815
Short-term lease cost		2,724		787		3,427		1,612
Variable lease cost		8,571		8,789		22,348		19,713
Total lease cost	$	27,780	$	24,475	$	63,428	$	56,082


	For the Twenty-Eight Weeks Ended
	July 13, 2024		July 15, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases	$	4	$	25
Operating cash flows from operating leases	$	41,425	$	36,627
Financing cash flows from financing leases	$	169	$	1,052
Right-of-use assets obtained in exchange for new financing lease liabilities	$	215	$	—
Right-of-use assets obtained in exchange for new operating lease liabilities	$	40,393	$	25,193


Weighted-average remaining lease term (years):
Financing leases			2.0
Operating leases			6.8
Weighted-average IBR (percentage):
Financing leases			3.6
Operating leases			4.6

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 13, 2024 (in thousands) were as follows:


	Operating lease liabilities			Financing lease liabilities
Remainder of 2024	$	31,834		$	77
2025		74,383			50
2026		55,772			38
2027		47,553			17
2028		33,854			8
2029 and thereafter		112,434			1
Total minimum lease payments		355,830			191
Less: amount of lease payments representing interest		(51,888	)		(8	)
Present value of future minimum lease payments		303,942			183
Less: current obligations under leases		(59,975	)		(164	)
Long-term lease obligations	$	243,967		$	19