Leases

3 Months Ended

Mar. 29, 2025

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 29, 2025		December 31, 2024
Right of use assets
Operating Leases
Buildings and improvements	$	112,273	$	112,528
Machinery and equipment		5,172		5,425
Total	$	117,445	$	117,953
Current lease liabilities
Operating Leases
Buildings and improvements	$	23,327	$	22,993
Machinery and equipment		2,852		2,908
Total	$	26,179	$	25,901
Long-term lease liabilities
Operating Leases
Buildings and improvements	$	90,928	$	91,772
Machinery and equipment		2,222		2,446
Total	$	93,150	$	94,218
Total lease liabilities	$	119,329	$	120,119

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 29, 2025		March 30, 2024
Lease expense
Operating lease expense	$	6,956	$	7,293
Short-term lease expense		407		256
Variable lease expense		160		214
Total lease expense	$	7,523	$	7,763

The Company paid $7,242 and $7,540 for its operating leases in the three fiscal months ended March 29, 2025 and March 30, 2024, 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 8.6 years and the weighted-average discount rate is 6.6% as of March 29, 2025.

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

	March 29, 2025
2025 (excluding the three fiscal months ended March 29, 2025)	$	20,416
2026		23,901
2027		20,762
2028		16,214
2029		14,124
Thereafter		62,536

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.