Leases

9 Months Ended

Oct. 03, 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 following table details lease modifications and renewals and lease impairments (amounts in thousands):

	For the Twelve Weeks Ended				For the Forty Weeks Ended
	October 3, 2020		October 5, 2019		October 3, 2020		October 5, 2019
Lease modifications and renewals	$	4,486	$	3,606	$	11,307	$	4,933
Lease impairments	$	11,280	$	3,381	$	11,371	$	8,314
Lease terminations	$	3,527	$	—	$	4,112	$	7,335

Lease costs incurred by lease type, and/or type of payment, and other supplemental quantitative disclosures as of and for the forty weeks ended October 3, 2020 and October 5, 2019 were as follows (amounts in thousands):

	For the Twelve Weeks Ended				For the Forty Weeks Ended
	October 3, 2020		October 5, 2019		October 3, 2020		October 5, 2019
Lease cost:
Amortization of right-of-use assets	$	1,704	$	1,708	$	5,733	$	5,307
Interest on lease liabilities		188		236		675		768
Operating lease cost		16,385		16,212		55,066		53,892
Short-term lease cost		1,156		662		2,308		2,024
Variable lease cost		4,926		5,619		17,961		19,610
Total lease cost	$	24,359	$	24,437	$	81,743	$	81,601

	For the Forty Weeks Ended
	October 3, 2020		October 5, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases	$	674	$	768
Operating cash flows from operating leases	$	57,526	$	55,997
Financing cash flows from financing leases	$	6,493	$	4,985
Right-of-use assets obtained in exchange for new financing lease liabilities	$	58	$	9,714
Right-of-use assets obtained in exchange for new operating lease liabilities	$	11,861	$	34,116

Weighted-average remaining lease term (years):
Financing leases			3.1
Operating leases			9.6
Weighted-average IBR (percentage):
Financing leases			3.7
Operating leases			4.1

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 October 3, 2020 (in thousands) were as follows:

	Operating lease liabilities			Financing lease liabilities
Remainder of 2020	$	17,228		$	1,978
2021		62,012			6,784
2022		50,958			5,479
2023		45,854			6,508
2024		38,436			1,503
2025 and thereafter		214,630			722
Total minimum lease payments		429,118			22,974
Less: amount of lease payments representing interest		(78,316	)		(1,412	)
Present value of future minimum lease payments		350,802			21,562
Less: current obligations under leases		(50,679	)		(6,497	)
Long-term lease obligations	$	300,123		$	15,065