Leases

3 Months Ended

Mar. 26, 2022

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 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 6 years as of March 26, 2022 and the weighted-average discount rate was 3.67%.

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


	Three Months Ended
	March 26, 2022		March 27, 2021
Lease expense:
Operating lease expense	$	2,221	$	2,123
Short-term lease expense	40		37
Variable lease expense	458		537
	$	2,719	$	2,697

Future minimum payments under our non-cancelable operating leases were as follows as of March 26, 2022 (in thousands):


Fiscal Year	Amount
Remainder of 2022	$	6,589
2023	7,680
2024	7,317
2025	7,270
2026	6,532
Thereafter	9,195
Total minimum lease payments	44,583
Less: interest	(5,168)
Present value of net minimum lease payments	39,415
Less: current portion	(8,049)
Total long-term operating lease liabilities	$	31,366