Leases

3 Months Ended

Apr. 01, 2023

Note 3 – 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:

	April 1, 2023		December 31, 2022
Right of use assets
Operating Leases
Buildings and improvements	$	125,579	$	126,933
Machinery and equipment		4,727		4,260
Total	$	130,306	$	131,193
Current lease liabilities
Operating Leases
Buildings and improvements	$	23,351	$	22,926
Machinery and equipment		2,557		2,393
Total	$	25,908	$	25,319
Long-term lease liabilities
Operating Leases
Buildings and improvements	$	105,119	$	106,693
Machinery and equipment		2,102		1,800
Total	$	107,221	$	108,493
Total lease liabilities	$	133,129	$	133,812

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
	April 1, 2023			April 2, 2022
Lease expense
Operating lease expense		$	6,881		$	6,452
Short-term lease expense			256			304
Variable lease expense			152			100
Total lease expense		$	7,289		$	6,856

The Company paid $7,199 and $6,332 for its operating leases in the three fiscal months ended April 1, 2023 and April 2, 2022, 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 9.7 years and the weighted-average discount rate is 6.1% as of April 1, 2023.

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

	April 1, 2023
2023 (excluding the three fiscal months ended April 1, 2023)	$	20,012
2024		25,008
2025		21,643
2026		18,083
2027		16,675
Thereafter		76,142

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.