Leases

9 Months Ended

Sep. 30, 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:

	September 30, 2023		December 31, 2022
Right of use assets
Operating Leases
Buildings and improvements	$	122,781	$	126,933
Machinery and equipment		5,211		4,260
Total	$	127,992	$	131,193
Current lease liabilities
Operating Leases
Buildings and improvements	$	23,405	$	22,926
Machinery and equipment		2,692		2,393
Total	$	26,097	$	25,319
Long-term lease liabilities
Operating Leases
Buildings and improvements	$	100,789	$	106,693
Machinery and equipment		2,434		1,800
Total	$	103,223	$	108,493
Total lease liabilities	$	129,320	$	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				Nine fiscal months ended
	September 30, 2023		October 1, 2022		September 30, 2023		October 1, 2022
Lease expense
Operating lease expense	$	7,035	$	6,258	$	20,803	$	19,014
Short-term lease expense		248		212		756		752
Variable lease expense		101		119		412		219
Total lease expense	$	7,384	$	6,589	$	21,971	$	19,985

The Company paid $20,912 and $18,062 for its operating leases in the nine fiscal months ended September 30, 2023 and October 1, 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 9.4 years and the weighted-average discount rate is 6.2% as of September 30, 2023.

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

	September 30, 2023
2023 (excluding the nine fiscal months ended September 30, 2023)	$	6,872
2024		26,705
2025		23,627
2026		19,195
2027		17,485
Thereafter		79,852

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.