Leases

3 Months Ended

Apr. 04, 2020

Note 3 – Leases

The Company leases buildings and machinery and equipment used for manufacturing and/or sales and administrative purposes. The Company is also party to various service, warehousing, and other agreements that it evaluates for potential embedded leases.

The Company leases assets in each region in which it operates. No individual lease is considered significant and there are no leases that have not yet commenced that are considered significant.

The net right of use assets and lease liabilities recognized on the consolidated condensed balance sheets for the Company's operating leases were as follows:

	April 4, 2020		December 31, 2019
Right of use assets
Operating Leases
Buildings and improvements	$	94,353	$	87,689
Machinery and equipment		5,153		5,473
Total	$	99,506	$	93,162
Current lease liabilities
Operating Leases
Buildings and improvements	$	18,324	$	17,410
Machinery and equipment		2,709		2,807
Total	$	21,033	$	20,217
Long-term lease liabilities
Operating Leases
Buildings and improvements	$	81,036	$	75,877
Machinery and equipment		2,404		2,634
Total	$	83,440	$	78,511
Total lease liabilities	$	104,473	$	98,728

Lease expense is classified on the statement of operations based on asset use. Total lease cost recognized on the consolidated condensed statements of operations is as follows:

	Fiscal quarters ended
	April 4, 2020		March 30, 2019
Lease expense
Operating lease expense	$	5,652	$	5,536
Short-term lease expense		194		833
Variable lease expense		23		12
Total lease expense	$	5,869	$	6,381

The Company paid $5,609 and $5,050 for its operating leases in the three fiscal months ended April 4, 2020 and March 30, 2019, respectively, which are included in operating cash flows on the consolidated condensed statements of cash flows. The weighted-average remaining lease term for the Company's operating leases is 8.8 years and the weighted-average discount rate is 5.9% as of April 4, 2020.

The undiscounted future lease payments for the Company's operating lease liabilities are as follows:

	April 4, 2020
2020 (excluding the three fiscal months ended April 4, 2020)	$	16,499
2021		19,647
2022		16,044
2023		13,699
2024		12,640
Thereafter		57,162

The undiscounted future lease payments presented in the table above include payments through the term of the lease, which may include periods beyond the noncancellable term. The difference between the total payments above and the lease liability balance is due to the discount rate used to calculate lease liabilities.