Leases

6 Months Ended

Jul. 03, 2021

Note 2 – Leases

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:

	July 3, 2021		December 31, 2020
Right of use assets
Operating Leases
Buildings and improvements	$	102,214	$	97,429
Machinery and equipment		5,212		5,011
Total	$	107,426	$	102,440
Current lease liabilities
Operating Leases
Buildings and improvements	$	18,805	$	19,370
Machinery and equipment		2,737		2,704
Total	$	21,542	$	22,074
Long-term lease liabilities
Operating Leases
Buildings and improvements	$	89,446	$	83,926
Machinery and equipment		2,434		2,294
Total	$	91,880	$	86,220
Total lease liabilities	$	113,422	$	108,294

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

	Fiscal quarters ended				Six fiscal months ended
	July 3, 2021		July 4, 2020		July 3, 2021		July 4, 2020
Lease expense
Operating lease expense	$	6,248	$	5,760	$	12,400	$	11,412
Short-term lease expense		428		225		753		419
Variable lease expense		66		6		193		29
Total lease expense	$	6,742	$	5,991	$	13,346	$	11,860

The Company paid $12,176 and $12,867 for its operating leases in the six fiscal months ended July 3, 2021 and July 4, 2020, 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 9.3 years and the weighted-average discount rate is 5.7% as of July 3, 2021.

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

	July 3, 2021
2021 (excluding the six fiscal months ended July 3, 2021)	$	11,475
2022		20,560
2023		17,899
2024		15,929
2025		14,653
Thereafter		67,251

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.