Leases

9 Months Ended

Oct. 09, 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 Forty Weeks Ended
	October 9, 2021		October 3, 2020		October 9, 2021		October 3, 2020
Lease modifications and renewals	$	6,965	$	4,486	$	44,667	$	11,307
Lease impairments	$	—	$	11,280	$	—	$	11,371
Lease terminations	$	2,289	$	3,527	$	4,943	$	4,112

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 twelve and forty weeks ended October 9, 2021 and October 3, 2020 were as follows (amounts in thousands):

	For the Twelve Weeks Ended				For the Forty Weeks Ended
	October 9, 2021		October 3, 2020		October 9, 2021		October 3, 2020
Lease cost:
Amortization of right-of-use assets	$	408	$	1,704	$	1,359	$	5,733
Interest on lease liabilities		32		188		124		675
Operating lease cost		15,612		16,385		53,308		55,066
Short-term lease cost		654		1,156		2,155		2,308
Variable lease cost		6,425		4,926		19,377		17,961
Total lease cost	$	23,131	$	24,359	$	76,323	$	81,743

	For the Forty Weeks Ended
	October 9, 2021		October 3, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases	$	124	$	674
Operating cash flows from operating leases	$	52,389	$	57,526
Financing cash flows from financing leases	$	1,311	$	6,493
Right-of-use assets obtained in exchange for new financing lease liabilities	$	37	$	58
Right-of-use assets obtained in exchange for new operating lease liabilities	$	48,684	$	11,861

Weighted-average remaining lease term (years):
Financing leases	2.3
Operating leases	8.7
Weighted-average IBR (percentage):
Financing leases	3.4
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 October 9, 2021 (in thousands) were as follows:

	Operating lease liabilities			Financing lease liabilities
Remainder of 2021	$	16,946		$	479
2022		61,042			1,755
2023		57,412			1,895
2024		48,902			115
2025		46,608			10
2026 and thereafter		184,751			—
Total minimum lease payments		415,661			4,254
Less: amount of lease payments representing interest		(67,425	)		(159	)
Present value of future minimum lease payments		348,236			4,095
Less: current obligations under leases		(53,945	)		(1,829	)
Long-term lease obligations	$	294,291		$	2,266