Leases

6 Months Ended

Jul. 17, 2021

Leases [Abstract]

Leases

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 17, 2021		July 11, 2020		July 17, 2021		July 11, 2020
Lease modifications and renewals	$	3,377	$	4,266	$	37,702	$	6,821
Lease impairments	$	—	$	—	$	—	$	90
Lease terminations	$	2,337		—	$	2,654		—

The lease modifications and renewals include $28.9 million related to a five year extension for a freezer storage lease executed during the first quarter of Fiscal 2021.

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 17, 2021 and July 11, 2020 were as follows (amounts in thousands):

	For the Twelve Weeks Ended				For the Twenty-Eight Weeks Ended
	July 17, 2021		July 11, 2020		July 17, 2021		July 11, 2020
Lease cost:
Amortization of right-of-use assets	$	409	$	1,726	$	951	$	4,029
Interest on lease liabilities		38		201		92		487
Operating lease cost		16,263		16,552		37,696		38,681
Short-term lease cost		550		556		1,501		1,152
Variable lease cost		6,066		5,223		12,952		13,035
Total lease cost	$	23,326	$	24,258	$	53,192	$	57,384

	For the Twenty-Eight Weeks Ended
	July 17, 2021		July 11, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases	$	92	$	487
Operating cash flows from operating leases	$	35,710	$	40,567
Financing cash flows from financing leases	$	866	$	3,900
Right-of-use assets obtained in exchange for new financing lease liabilities	$	37	$	43
Right-of-use assets obtained in exchange for new operating lease liabilities	$	41,796	$	6,957

Weighted-average remaining lease term (years):
Financing leases	2.6
Operating leases	8.9
Weighted-average IBR (percentage):
Financing leases	3.5
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 17, 2021 (in thousands) were as follows:

	Operating lease liabilities			Financing lease liabilities
Remainder of 2021	$	33,412		$	958
2022		59,670			1,756
2023		55,627			1,896
2024		47,408			115
2025		45,628			10
2026 and thereafter		184,484			—
Total minimum lease payments		426,229			4,735
Less: amount of lease payments representing interest		(72,098	)		(195	)
Present value of future minimum lease payments		354,131			4,540
Less: current obligations under leases		(53,784	)		(1,815	)
Long-term lease obligations	$	300,347		$	2,725