Leases

12 Months Ended

Dec. 31, 2022

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 6 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 5.1 years at December 31, 2022 and the weighted-average discount rate was 3.84%.

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


	Lease Expense
	December 31, 2022		December 25, 2021		December 26, 2020
Operating lease expense	$	8,595	$	8,485	$	7,468
Short-term lease expense	385		180		136
Variable lease expense	2,393		1,842		1,574
	$	11,373	$	10,507	$	9,178

Future minimum payments under our non-cancelable operating leases were as follows as of December 31, 2022 (in thousands):


Fiscal Year	Amount
2023	$	8,038
2024	7,784
2025	7,695
2026	6,615
2027	5,737
Thereafter	3,423
Total minimum lease payments	39,292
Less: interest	(4,352)
Present value of net minimum lease payments	34,940
Less: current portion	(7,353)
Total long-term operating lease liabilities	$	27,587