LEASES

12 Months Ended

Dec. 31, 2021

LEASES

LEASES

NOTE O:  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 13 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)	2021		2020		2019
Operating lease cost	$	8,397	$	9,000	$	8,724
Variable lease cost		50		53		18
Short-term lease cost (1)		148		369		240
Total lease cost	$	8,595	$	9,422	$	8,982

⁽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)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases	$	8,203	$	8,478
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		5,344		3,519

Supplemental balance sheet information related to leases is as follows:

(000’s omitted, except lease term and discount rate)	2021			2020
Operating leases
Operating lease right-of-use assets	$	31,754		$	34,908
Operating lease liabilities		32,833			35,857
Weighted average remaining lease term
Operating leases		5.4 years			6.1 years
Weighted average discount rate
Operating leases		2.62	%		2.82	%

Maturities of lease liabilities as of December 31, 2021 are as follows:

(000’s omitted)	Operating Leases
2022	$	8,729
2023		7,640
2024		5,920
2025		4,401
2026		3,062
Thereafter		5,846
Total lease payments		35,598
Less imputed interest		(2,765)
Total	$	32,833

Maturities of lease liabilities as of December 31, 2020 are as follows:

(000’s omitted)	Operating Leases
2021	$	8,697
2022		7,505
2023		6,336
2024		4,973
2025		3,688
Thereafter		8,222
Total lease payments		39,421
Less imputed interest		(3,564)
Total	$	35,857

Included in the Company’s operating leases are related party leases where BPAS APS and OneGroup, subsidiaries of the Company, lease office space from 706 North Clinton, LLC (“706 North Clinton”), an entity the Company holds a 50% membership interest in through its subsidiary OPFC II. As of December 31, 2021, the operating lease right-of-use assets and operating lease liabilities associated with these related party leases total $4.0 million and $4.1 million, respectively. As of December 31, 2020, the operating lease right-of-use assets and operating lease liabilities associated with these related party leases total $4.5 million and $4.5 million, respectively. As of December 31, 2021, the weighted average remaining lease term and weighted average discount rate for the Company’s related party leases are 8.0 years and 3.68%, respectively. As of December 31, 2020, the weighted average remaining lease term and weighted average discount rate for the Company’s related party leases are 9.0 years and 3.68%, respectively.

The maturities of the Company’s related party lease liabilities as of December 31, 2021 are as follows:

(000’s omitted)	706 North Clinton, LLC
2022	$	591
2023		591
2024		591
2025		605
2026		614
Thereafter		1,727
Total lease payments		4,719
Less imputed interest		(633)
Total	$	4,086

The maturities of the Company’s related party lease liabilities as of December 31, 2020 are as follows:

(000’s omitted)	706 North Clinton, LLC
2021	$	591
2022		591
2023		591
2024		591
2025		605
Thereafter		2,341
Total lease payments		5,310
Less imputed interest		(791)
Total	$	4,519

As of December 31, 2021, the Company has an immaterial amount of additional operating leases for offices and equipment that have not yet commenced.