Leases

4 Months Ended

Apr. 18, 2020

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 company recognized $2.5 million and $1.3 million in reassessments and modifications during the first quarters of fiscal 2020 and 2019, respectively. An additional $0.1 million impairment charge was recognized during the first quarter of fiscal 2020. There were no impairments during the first quarter of fiscal 2019.

Lease costs incurred by lease type, and/or type of payment, and other supplemental quantitative disclosures as of and for the sixteen weeks ended April 18, 2020 and April 20, 2019 were as follows (in thousands):

	For the Sixteen Weeks Ended		For the Sixteen Weeks Ended
	April 18, 2020		April 20, 2019
Lease cost:
Amortization of right-of-use assets	$	2,303	$	2,058
Interest on lease liabilities		286		313
Operating lease cost		22,129		21,364
Short-term lease cost		596		814
Variable lease cost		7,812		7,905
Total lease cost	$	33,126	$	32,454

	For the Sixteen Weeks Ended		For the Sixteen Weeks Ended
	April 18, 2020		April 20, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases	$	286	$	313
Operating cash flows from operating leases	$	23,299	$	22,237
Financing cash flows from financing leases	$	2,180	$	1,872
Right-of-use assets obtained in exchange for new financing lease liabilities	$	40	$	7,141
Right-of-use assets obtained in exchange for new operating lease liabilities	$	2,522	$	6,666

Weighted-average remaining lease term (years):
Financing leases			3.3
Operating leases			9.7
Weighted-average IBR (percentage):
Financing leases			3.6
Operating leases			4.2

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 April 18, 2020 (in thousands) were as follows:

	Operating lease liabilities			Financing lease liabilities
Remainder of 2020	$	51,365		$	6,679
2021		60,829			6,781
2022		49,957			5,476
2023		44,780			6,505
2024		37,283			1,501
2025 and thereafter		211,563			715
Total minimum lease payments		455,777			27,657
Less: amount of lease payments representing interest		(86,265	)		(1,800	)
Present value of future minimum lease payments		369,512			25,857
Less: current obligations under leases		(53,030	)		(7,789	)
Long-term lease obligations	$	316,482		$	18,068