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 one to nine years, and some leases include options to extend up to 20 years. We also have operating leases for automobiles with remaining lease terms of one year. 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 three years as of June 27, 2026 and the weighted-average discount rate was 5.2%.

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


	Three Months Ended				Six Months Ended
	June 27, 2026		June 28, 2025		June 27, 2026		June 28, 2025
Lease expense:
Operating lease expense	$	2,000	$	2,186	$	5,031	$	4,337
Short-term lease expense	131		132		299		236
Variable lease expense	346		932		1,100		1,712
	$	2,477	$	3,250	$	6,430	$	6,285


Fiscal Year	Amount
Remainder of 2026	$	4,658
2027	8,891
2028	5,212
2029	687
2030	452
Thereafter	961
Total minimum lease payments	20,861
Less: interest	(2,593)
Present value of net minimum lease payments	18,268
Less: current portion	(8,317)
Total long-term operating lease liabilities	$	9,951