Leases

9 Months Ended

Sep. 26, 2020

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 8 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 4 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 7 years as of September 26, 2020 and the weighted-average discount rate was 4.52%.

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


	Three Months Ended				Nine Months Ended
	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
Lease expense:
Operating lease expense	$	1,818	$	1,726	$	5,536	$	5,205
Short-term lease expense	32		53		94		101
Variable lease expense	372		252		1,159		920
	$	2,222	$	2,031	$	6,789	$	6,226

Future minimum payments under our non-cancelable operating leases were as follows as of September 26, 2020 (in thousands):


Fiscal Year	Amount
Remainder of 2020	$	1,877
2021	6,773
2022	5,549
2023	4,724
2024	4,471
Thereafter	16,272
Total minimum lease payments	39,666
Less: interest	(6,317)
Present value of net minimum lease payments	33,349
Less: current portion	(6,555)
Total long-term operating lease liabilities	$	26,794