Leases

6 Months Ended

Jun. 29, 2024

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 year to 10 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 year to 2 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 4.2 years as of June 29, 2024 and the weighted-average discount rate was 4.65%.

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


	Three Months Ended				Six Months Ended
	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Lease expense:
Operating lease expense	$	2,050	$	2,124	$	4,180	$	4,076
Short-term lease expense	85		136		145		293
Variable lease expense	1,052		483		1,862		1,229
	$	3,187	$	2,743	$	6,187	$	5,598

Future minimum payments under our non-cancelable operating leases were as follows as of June 29, 2024 (in thousands):


Fiscal Year	Amount
Remainder of 2024	$	4,515
2025	9,043
2026	7,638
2027	7,208
2028	3,892
Thereafter	1,391
Total minimum lease payments	33,687
Less: interest	(4,006)
Present value of net minimum lease payments	29,681
Less: current portion	(8,240)
Total long-term operating lease liabilities	$	21,441