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		Three quarters ended
	October 1, 2022	October 2, 2021	October 1, 2022	October 2, 2021
	$	$	$	$
Lease Costs
Operating lease cost	3,912	3,496	10,216	10,248
Finance lease cost:
Depreciation of right-of-use assets	2,527	1,555	7,092	4,366
Interest on lease liabilities	1,678	773	3,503	2,013
Sublease income	-	-	-	(281	)
Net lease cost	8,117	5,824	20,811	16,346

	October 1, 2022		January 1, 2022
	$		$
Balance Sheet Classification
Operating leases:
Operating lease right-of-use assets	78,167		47,245

Current portion of operating lease liabilities	12,601		12,203
Operating lease liabilities	71,016		39,028
Total operating lease liabilities	83,617		51,231

Finance leases:
Property, plant and equipment, gross	139,081		66,060
Accumulated depreciation	(17,440	)	(10,348	)
Property, plant and equipment, net	121,641		55,712

Current portion of long-term debt	28,255		9,760
Long-term debt	83,728		43,034
Total finance lease liabilities	111,983		52,794

	Quarter ended			Three quarters ended
	October 1, 2022		October 2, 2021	October 1, 2022		October 2, 2021
	$		$	$		$
Cash Flow Information
Cash paid (received) for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	3,909		3,127	9,954		10,079
Operating cash flows from finance leases	1,678		588	3,503		2,013
Financing cash flows from finance leases:
Cash paid under finance leases⁽¹⁾	6,265		1,663	13,834		6,916
Cash received under finance leases⁽²⁾	(15,101	)	-	(48,378	)	-

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases⁽³⁾	42,669		8,522	43,385		25,811
Finance leases	7,217		-	24,643		29,906

Right-of-use assets and liabilities reduced through lease terminations or modifications:
Operating leases	(277	)	-	(2,226	)	-
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 for the construction of right-of-use assets controlled by the Company, which related to the buildouts of the Company's plant-based beverage facility under construction in Midlothian, Texas, and the Company's executive office and innovation center located in Eden Prairie, Minnesota, as well as cash proceeds under sale and leaseback transactions accounted for as financings. Cash received under finance leases is reported in borrowings of long-term debt on the consolidated statements of cash flows.

(3) For the quarter and three quarters ended October, 1, 2022, includes the addition of a $39.9 million operating lease right-of-use asset and corresponding operating lease liability related to the premises lease for the Midlothian, Texas, facility, which commenced on October 1, 2022, following substantial completion of construction by the landlord. The noncancellable lease term is 15 years from the lease commencement date, together with three five-year extension options that the Company is reasonably certain to exercise. At the lease commencement date, the estimated lease payments, net of leasehold incentives, were discounted at the Company's estimated incremental borrowing rate applicable to the 30-year lease term of 10.3%.

	October 1, 2022	January 1, 2022
Other Information
Weighted-average remaining lease term (years):
Operating leases	13.0	7.4
Finance leases	2.7	4.3

Weighted-average discount rate:
Operating leases	8.6%	5.0%
Finance leases	7.5%	6.6%

	Operating leases		Finance leases
	$		$
Maturities of Lease Liabilities
Remainder of 2022	2,035		5,242
2023	11,460		37,487
2024	11,572		36,165
2025	10,313		31,385
2026	9,355		19,088
Thereafter	156,480		185
Total lease payments	201,215		129,552
Less: imputed interest	(117,598	)	(17,569	)
Total lease liabilities	83,617		111,983