Leases

3 Months Ended

Mar. 30, 2024

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:

	March 30, 2024		December 31, 2023
Right of use assets
Operating Leases
Buildings and improvements	$	120,508	$	121,578
Machinery and equipment		8,838		5,251
Total	$	129,346	$	126,829
Current lease liabilities
Operating Leases
Buildings and improvements	$	23,561	$	23,647
Machinery and equipment		4,199		2,838
Total	$	27,760	$	26,485
Long-term lease liabilities
Operating Leases
Buildings and improvements	$	99,028	$	100,489
Machinery and equipment		4,566		2,341
Total	$	103,594	$	102,830
Total lease liabilities	$	131,354	$	129,315

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
	March 30, 2024			April 1, 2023
Lease expense
Operating lease expense		$	7,293		$	6,881
Short-term lease expense			256			256
Variable lease expense			214			152
Total lease expense		$	7,763		$	7,289

The Company paid $7,540 and $7,199 for its operating leases in the three fiscal months ended March 30, 2024 and April 1, 2023, 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 9.0 years and the weighted-average discount rate is 6.4% as of March 30, 2024.

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

	March 30, 2024
2024 (excluding the three fiscal months ended March 30, 2024)	$	21,801
2025		26,426
2026		22,372
2027		18,373
2028		15,685
Thereafter		70,159

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.