4. Leases

The Company leases certain manufacturing plants, warehouses, offices, machinery and equipment, and vehicles. At the lease commencement date, the Company classifies a lease as a finance lease if it has the right to obtain substantially all of the economic benefits from the right-of-use assets, otherwise the lease is classified as an operating lease.

The following tables present supplemental information related to leases:

	Quarter ended			Two quarters ended
	July 2, 2022	July 3, 2021		July 2, 2022	July 3, 2021
	$	$		$	$
Lease Costs
Operating lease cost	3,093	3,180		6,304	6,752
Finance lease cost:
Depreciation of right-of-use assets	2,677	1,556		4,565	2,811
Interest on lease liabilities	1,052	806		1,825	1,240
Sublease income	-	(153	)	-	(281	)
Net lease cost	6,822	5,389		12,694	10,522

	July 2, 2022		January 1, 2022
	$		$
Balance Sheet Classification
Operating leases:
Operating lease right-of-use assets	40,990		47,245
Current portion of operating lease liabilities	9,933		12,203
Operating lease liabilities	37,084		39,028
Total operating lease liabilities	47,017		51,231

Finance leases:
Property, plant and equipment, gross	116,764		66,060
Accumulated depreciation	(14,912	)	(10,348	)
Property, plant and equipment, net	101,852		55,712
Current portion of long-term debt	22,114		9,760
Long-term debt	73,815		43,034
Total finance lease liabilities	95,929		52,794

			Quarter ended	Two quarters ended
	July 2, 2022		July 3, 2021	July 2, 2022		July 3, 2021
	$		$	$		$
Cash Flow Information
Cash paid (received) for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	2,963		3,207	6,045		6,952
Operating cash flows from finance leases	1,052		898	1,825		1,425
Financing cash flows from finance leases:
Cash paid under finance leases⁽¹⁾	5,175		1,907	7,569		5,253
Cash received under finance leases⁽²⁾	(14,554	)	-	(33,277	)	-

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	317		16,275	716		17,289
Finance leases	2,746		-	17,426		29,906

Right-of-use assets and liabilities reduced through lease
terminations or modifications:
Operating leases	-		-	(1,949	)	-
Finance leases	-		-	-		(686	)

(1) Represents repayments under finance leases recorded as a reduction of the lease liability and reported in repayment of long-term debt on the consolidated statements of cash flows.

(2) Represents cash advances received by the Company under finance leases related to the construction of right-of-use assets controlled by the Company, as well as cash proceeds under sale and leaseback transactions accounted for as financings, which are reported in borrowings of long-term debt on the consolidated statements of cash flows.

	July 2, 2022	January 1, 2022
Other Information
Weighted-average remaining lease term (years):
Operating leases	7.6	7.4
Finance leases	3.4	4.3

Weighted-average discount rate:
Operating leases	5.0%	5.0%
Finance leases	7.5%	6.6%

	Operating leases		Finance leases
	$		$
Maturities of Lease Liabilities
Remainder of 2022	5,054		12,628
2023	10,185		29,173
2024	8,312		29,109
2025	6,290		26,881
2026	5,247		13,539
Thereafter	21,643		492
Total lease payments	56,731		111,822
Less: imputed interest	(9,714	)	(15,893	)
Total lease liabilities	47,017		95,929