NOTE G: LEASES

The Company has operating leases for certain offices and certain equipment. These leases have remaining terms that range from less than one year to 16 years. Options to extend the leases range from a single extension option of one year to multiple extension options for up to 40 years. Certain agreements include an option to terminate the lease within one year.

The components of lease expense are as follows:

(000’s omitted)	Three Months Ended March 31, 2019
Operating lease cost	$	2,117
Short-term lease cost ⁽¹⁾		54
Total lease cost	$	2,171

⁽¹⁾	^{Short-term lease cost includes the cost of leases with terms of twelve months or less, excluding leases with terms of one month or less.}

Supplemental cash flow information related to leases is as follows:

(000’s omitted)	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases	$	2,030

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		2,969

Supplemental balance sheet information related to leases is as follows:

(000’s omitted, except lease term and discount rate)	Three Months Ended March 31, 2019
Operating leases
Operating lease right-of-use assets	$	34,956

Operating lease liabilities		35,630

Weighted average remaining lease term
Operating leases	6.7 years

Weighted average discount rate
Operating leases		3.26	%

Maturities of lease liabilities as of March 31, 2019 are as follows:

(000’s omitted)	Operating Leases
Apr - Dec 2019	$	6,534
2020		7,967
2021		6,396
2022		5,143
2023		3,393
Thereafter		10,653
Total lease payments		40,086
Less imputed interest		(4,456	)
Total	$	35,630

Included in the Company’s operating leases are related party leases where BPAS Actuarial & Pension Services, LLC and OneGroup NY, Inc., subsidiaries of the Company, lease office space from 706 North Clinton, LLC., an entity the Company holds a 50% membership interest in through its subsidiary Oneida Preferred Funding II, LLC. The operating lease right-of-use assets and operating lease liabilities associated with these related party leases total $5.2 million and $5.2 million, respectively. The weighted average remaining lease term and weighted average discount rate for these leases are 10.7 years and 3.67%, respectively. The maturities of the Company’s related party lease liabilities as of March 31, 2019 are as follows:

(000’s omitted)	706 North Clinton, LLC
Apr - Dec 2019	$	443
2020		591
2021		591
2022		591
2023		591
Thereafter		3,538
Total lease payments		6,345
Less imputed interest		(1,105	)
Total	$	5,240

As of March 31, 2019, the Company has an immaterial amount of additional operating leases for offices and equipment that have not yet commenced.