Leases

6 Months Ended

Jul. 11, 2020

4. 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 impairments (amounts in thousands):

	For the Twelve Weeks Ended				For the Twenty-Eight Weeks Ended
	July 11, 2020		July 13, 2019		July 11, 2020		July 13, 2019
Lease modifications and renewals	$	4,266	$	3,606	$	6,821	$	4,933
Lease impairments		—		—		90		—

Lease costs incurred by lease type, and/or type of payment, and other supplemental quantitative disclosures as of and for the twenty-eight weeks ended July 11, 2020 and July 13, 2019 were as follows (amounts in thousands):

	For the Twelve Weeks Ended				For the Twenty-Eight Weeks Ended
	July 11, 2020		July 13, 2019		July 11, 2020		July 13, 2019
Lease cost:
Amortization of right-of-use assets	$	1,726	$	1,541	$	4,029	$	3,599
Interest on lease liabilities		201		219		487		532
Operating lease cost		16,552		16,316		38,681		37,680
Short-term lease cost		556		548		1,152		1,362
Variable lease cost		5,223		6,086		13,035		13,991
Total lease cost	$	24,258	$	24,710	$	57,384	$	57,164

	For the Twenty-Eight Weeks Ended
	July 11, 2020		July 13, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases	$	487	$	532
Operating cash flows from operating leases	$	40,567	$	38,971
Financing cash flows from financing leases	$	3,900	$	3,303
Right-of-use assets obtained in exchange for new financing lease liabilities	$	43	$	7,177
Right-of-use assets obtained in exchange for new operating lease liabilities	$	6,957	$	16,633

Weighted-average remaining lease term (years):
Financing leases			3.2
Operating leases			9.6
Weighted-average IBR (percentage):
Financing leases			3.6
Operating leases			4.2

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 11, 2020 (in thousands) were as follows:

	Operating lease liabilities			Financing lease liabilities
Remainder of 2020	$	34,426		$	4,758
2021		61,557			6,780
2022		50,411			5,476
2023		45,204			6,505
2024		37,644			1,501
2025 and thereafter		212,132			720
Total minimum lease payments		441,374			25,740
Less: amount of lease payments representing interest		(81,289	)		(1,599	)
Present value of future minimum lease payments		360,085			24,141
Less: current obligations under leases		(52,232	)		(7,469	)
Long-term lease obligations	$	307,853		$	16,672