7. Leases

The Company leases certain manufacturing plants, warehouses, offices, and machinery and equipment. 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 Company's leases have remaining noncancelable lease terms of less than one year to approximately 15 years, and typically require fixed monthly rental payments that may be adjusted annually to give effect to inflation. Real estate leases typically provide the Company options to extend the leases for up to 15 years. Finance leases for machinery and equipment typically include nominal purchase options at the end of the lease term that are reasonably certain of being exercised at the lease commencement date. Machinery and equipment operating leases typically include purchase options for the fair market value of the underlying asset at the end of the lease term, which are uncertain of being exercised at the lease commencement date.

The following tables present supplemental information related to leases:

	December 31, 2022	January 1, 2022		January 2, 2021
	$	$		$
Lease Costs
Operating lease cost	13,830	13,806		16,647
Finance lease cost:
Depreciation of right-of-use assets	10,146	5,922		2,647
Interest on lease liabilities	5,147	2,752		675
Sublease income	-	(281	)	(504	)
Net lease cost	29,123	22,199		19,465

	December 31, 2022		January 1, 2022
	$		$
Balance Sheet Classification
Operating leases:
Operating lease right-of-use assets	82,564		47,245

Current portion of operating lease liabilities	13,074		12,203
Operating lease liabilities	77,557		39,028
Total operating lease liabilities	90,631		51,231

Finance leases:
Property, plant and equipment, gross	157,801		66,060
Accumulated depreciation	(20,494	)	(10,348	)
Property, plant and equipment, net	137,307		55,712

Current portion of long-term debt	33,283		9,760
Long-term debt	90,796		43,034
Total finance lease liabilities	124,079		52,794

	December 31, 2022		January 1, 2022		January 2, 2021
	$		$		$
Cash Flow Information
Cash paid (received) for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	13,051		13,391		16,741
Operating cash flows from finance leases	5,147		2,752		675
Financing cash flows from finance leases
Cash paid under finance leases⁽¹⁾	20,457		8,798		2,587
Cash received under finance leases⁽²⁾	(58,764	)	(13,626	)	-

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	49,818		29,015		5,962
Finance leases	32,977		29,906		5,179

Right-of-use assets and liabilities reduced through lease terminations or modifications:
Operating leases	(4,060	)	(2,261	)	(23,667	)
Finance leases	-		(686	)	-

Impairment of operating lease right-of-use assets	-		-		(1,538	)

(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 new plant-based beverage facility 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.

	December 31, 2022	January 1, 2022	January 2, 2021
Other Information
Weighted-average remaining lease term (years):
Operating leases	12.8	7.4	3.4
Finance leases	3.5	4.3	5.3

Weighted-average discount rate:
Operating leases	8.7%	5.0%	6.6%
Finance leases	8.2%	6.6%	5.4%

	Operating leases		Finance leases
	$		$
Maturities of Lease Liabilities
2023	12,805		40,336
2024	12,461		41,643
2025	11,678		36,863
2026	10,754		23,838
2027	9,727		3,567
Thereafter	152,740		-
Total lease payments	210,165		146,247
Less: imputed interest	(119,534	)	(22,168	)
Total lease liabilities	90,631		124,079

See note 20 for a discussion of the Company's lease commitments.