Leases

3 Months Ended

Apr. 02, 2022

Note 2 – 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 2, 2022		December 31, 2021
Right of use assets
Operating Leases
Buildings and improvements	$	109,682	$	112,951
Machinery and equipment		4,412		4,684
Total	$	114,094	$	117,635
Current lease liabilities
Operating Leases
Buildings and improvements	$	20,655	$	20,851
Machinery and equipment		2,425		2,541
Total	$	23,080	$	23,392
Long-term lease liabilities
Operating Leases
Buildings and improvements	$	94,333	$	97,890
Machinery and equipment		1,939		2,097
Total	$	96,272	$	99,987
Total lease liabilities	$	119,352	$	123,379

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 2, 2022			April 3, 2021
Lease expense
Operating lease expense		$	6,452		$	6,152
Short-term lease expense			304			325
Variable lease expense			100			127
Total lease expense		$	6,856		$	6,604

The Company paid $6,332 and $6,161 for its operating leases in the three fiscal months ended April 2, 2022 and April 3, 2021, 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 8.7 years and the weighted-average discount rate is 5.4% as of April 2, 2022.

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

	April 2, 2022
2022 (excluding the three fiscal months ended April 2, 2022)	$	17,794
2023		22,072
2024		19,910
2025		17,388
2026		15,868
Thereafter		57,407

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.