Leases

9 Months Ended

Sep. 25, 2021

We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space, as well as for our corporate headquarters located in Livermore, California. Our leases have remaining terms of 1 to 7 years, and some leases include options to extend up to 20 years. We also have operating leases for automobiles with remaining lease terms of 1 to 4 years. We did not include any of our renewal options in our lease terms for calculating our lease liability as the renewal options allow us to maintain operational flexibility and we are not reasonably certain we will exercise these options at this time. The weighted-average remaining lease term for our operating leases was 6 years as of September 25, 2021 and the weighted-average discount rate was 3.72%.

The components of lease expense were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Lease expense:
Operating lease expense	$	2,167	$	1,818	$	6,338	$	5,536
Short-term lease expense	51		32		133		94
Variable lease expense	461		372		1,424		1,159
	$	2,679	$	2,222	$	7,895	$	6,789

Future minimum payments under our non-cancelable operating leases were as follows as of September 25, 2021 (in thousands):


Fiscal Year	Amount
Remainder of 2021	$	2,116
2022	8,536
2023	7,167
2024	6,744
2025	6,726
Thereafter	14,815
Total minimum lease payments	46,104
Less: interest	(5,741)
Present value of net minimum lease payments	40,363
Less: current portion	(7,962)
Total long-term operating lease liabilities	$	32,401