Leases

6 Months Ended

Jun. 25, 2022

We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space, as well as for a portion of 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 June 25, 2022 and the weighted-average discount rate was 3.69%.

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


	Three Months Ended				Six Months Ended
	June 25, 2022		June 26, 2021		June 25, 2022		June 26, 2021
Lease expense:
Operating lease expense	$	2,183	$	2,048	$	4,404	$	4,171
Short-term lease expense	76		45		116		82
Variable lease expense	677		426		1,135		963
	$	2,936	$	2,519	$	5,655	$	5,216

Future minimum payments under our non-cancelable operating leases were as follows as of June 25, 2022 (in thousands):


Fiscal Year	Amount
Remainder of 2022	$	4,319
2023	7,564
2024	7,224
2025	7,187
2026	6,505
Thereafter	9,143
Total minimum lease payments	41,942
Less: interest	(4,588)
Present value of net minimum lease payments	37,354
Less: current portion	(7,843)
Total long-term operating lease liabilities	$	29,511