SunOpta Inc. Leases Disclosure

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 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:

			January 3, 2026			December 28, 2024			December 30, 2023
			$			$			$
Lease Costs
Operating lease cost			17,224			18,243			14,856
Finance lease cost:
	Depreciation of right-of-use assets		8,047			8,541			13,441
	Interest on lease liabilities		5,172			5,455			9,310
	Total finance lease cost		13,219			13,996			22,751

 

 

As at January 3, 2026, the Company had entered into finance lease agreements to provide for up to $69 million of financing, in the aggregate, related to capacity expansion projects at its beverage facility in Midlothian, Texas, and fruit snacks facility in Omak, Washington, which are expected to become operational in 2026. As these finance leases had not commenced as at January 3, 2026, no amount of underlying right-of-use assets, or lease liabilities, were recognized on the consolidated balance sheet as of that date.