Leases

3 Months Ended

May 08, 2022

We lease office facilities under non-cancelable operating lease agreements expiring through July 2032. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. During the first quarter of fiscal 2023, we capitalized a data center lease with total undiscounted cash flows of $9.4 million. During fiscal 2022, we entered into an agreement with a third party vendor to finance lease certain test equipment. The amount of test equipment acquired under the finance lease was not material at the end of the first quarter of fiscal 2023.

The components of lease costs related to our operating leases during the periods presented were as follows (in thousands):


	First Quarter of Fiscal
	2022		2023
Fixed operating lease cost	$	9,756	$	10,318
Variable lease cost (1)	1,995		1,890
Short-term lease cost (12 months or less)	1,101		852
Total lease cost	$	12,852	$	13,060

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(1) Variable lease cost predominantly included common area maintenance charges.

At the end of the first quarter of fiscal 2023, the weighted-average remaining lease term for our operating leases was 4.4 years and the weighted-average discount rate for our operating leases was 5.63%. Future lease payments under our non-cancelable operating leases at the end of the first quarter of fiscal 2023 were as follows (in thousands):


Fiscal Years Ending	Operating Leases
The remainder of 2023	$	31,268
2024	36,179
2025	31,647
2026	22,125
2027	8,266
Thereafter	17,786
Total future lease payments	147,271
Less: imputed interest	(18,262)
Present value of lease liabilities	$	129,009

In June 2022, we entered into an eight year sublease agreement through July 2030 for a new headquarters facility in Santa Clara, California for total lease obligations, including operating expenses, of approximately $143.0 million.