Leases

12 Months Ended

Dec. 25, 2021

Our operating lease, right-of-use assets relate to 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 3 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 5.4 years at December 25, 2021 and the weighted-average discount rate was 3.74%.

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


	Lease Expense
	December 25, 2021		December 26, 2020		December 28, 2019
Operating lease expense	$	8,485	$	7,468	$	6,985
Short-term lease expense	180		136		142
Variable lease expense	1,842		1,574		1,286
	$	10,507	$	9,178	$	8,413

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


Fiscal Year	Amount
2022	$	8,594
2023	7,232
2024	6,814
2025	6,799
2026	6,008
Thereafter	8,970
Total minimum lease payments	44,417
Less: interest	(5,507)
Present value of net minimum lease payments	38,910
Less: current portion	(7,901)
Total long-term operating lease liabilities	$	31,009