8. 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 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 28, 2024	December 30, 2023	December 31, 2022
		$	$	$
Lease Costs
Operating lease cost		18,243	14,856	13,044
Finance lease cost:
	Depreciation of right-of-use assets	8,541	13,441	9,816
	Interest on lease liabilities	5,455	9,310	5,136
	Total finance lease cost	13,996	22,751	14,952

		December 28, 2024		December 30, 2023
		$		$
Balance Sheet Classification
Operating leases:
	Operating lease right-of-use assets	105,692		104,788

	Current portion of operating lease liabilities	17,055		15,808
	Operating lease liabilities	99,328		98,696
	Total operating lease liabilities	116,383		114,504

Finance leases:
	Property, plant and equipment, gross	100,481		81,724
	Accumulated depreciation	(23,514	)	(18,319	)
	Property, plant and equipment, net	76,967		63,405

	Current portion of long-term debt	20,393		15,647
	Long-term debt	38,528		37,284
	Total finance lease liabilities	58,921		52,931

	December 28, 2024		December 30, 2023		December 31, 2022
	$		$		$
Cash Flow Information
Cash paid (received) for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	17,268		13,852		12,320
Operating cash flows from finance leases	5,455		9,310		5,136
Financing cash flows from finance leases
Cash paid under finance leases⁽¹⁾	20,203		89,087		19,903
Cash received under finance leases⁽²⁾	(1,446	)	(6,568	)	(58,764	)

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	10,227		35,601		47,544
Finance leases	24,746		9,952		31,466

Right-of-use assets and liabilities reduced through lease terminations or modifications:
Operating leases	-		(914	)	(4,060	)

(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 is reported in borrowings of long-term debt on the consolidated statements of cash flows.

	December 28, 2024	December 30, 2023	December 31, 2022
Other Information
Weighted-average remaining lease term (years):
Operating leases	11.2	12.0	12.8
Finance leases	3.1	3.2	3.5

Weighted-average discount rate:
Operating leases	8.5%	8.6%	8.7%
Finance leases	9.6%	7.9%	8.2%

	Operating leases		Finance leases
	$		$
Maturities of Lease Liabilities
2025	17,608		24,547
2026	16,755		23,280
2027	15,770		11,224
2028	15,293		8,095
2029	13,750		1,674
Thereafter	154,473		-
Total lease payments	233,649		68,820
Less: imputed interest	(117,266	)	(9,899	)
Total lease liabilities	116,383		58,921