Leases

6 Months Ended

Jun. 29, 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:

	June 29, 2024		December 31, 2023
Right of use assets
Operating Leases
Buildings and improvements	$	116,371	$	121,578
Machinery and equipment		8,507		5,251
Total	$	124,878	$	126,829
Current lease liabilities
Operating Leases
Buildings and improvements	$	23,314	$	23,647
Machinery and equipment		4,188		2,838
Total	$	27,502	$	26,485
Long-term lease liabilities
Operating Leases
Buildings and improvements	$	94,654	$	100,489
Machinery and equipment		4,253		2,341
Total	$	98,907	$	102,830
Total lease liabilities	$	126,409	$	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				Six fiscal months ended
	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Lease expense
Operating lease expense	$	7,466	$	6,887	$	14,759	$	13,768
Short-term lease expense		220		252		476		508
Variable lease expense		148		159		362		311
Total lease expense	$	7,834	$	7,298	$	15,597	$	14,587

The Company paid $14,801 and $13,966 for its operating leases in the six fiscal months ended June 29, 2024 and July 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 8.8 years and the weighted-average discount rate is 6.5% as of June 29, 2024.

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

	June 29, 2024
2024 (excluding the six fiscal months ended June 29, 2024)	$	14,880
2025		26,987
2026		22,722
2027		18,448
2028		15,643
Thereafter		69,738

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.