LEASES

9 Months Ended

Sep. 30, 2019

The Company leases 106 buildings and offices under non-cancelable operating leases. The leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule. Substantially all of the leases provide the Company with the option to extend the lease term one or more times following expiration of the initial term. The Company adopted the requirements of Topic 842 effective January 1, 2019, which required the Company to record a right-of-use lease asset and a lease liability for leases with an initial term of more than 12 months for leases that existed as of January 1, 2019. The periods prior to the date of adoption are accounted for under Lease Topic 840; therefore, the following disclosures include only the periods for which Topic 842 was effective.

Lease Position as of September 30, 2019

The table below presents the lease right-of-use assets and lease liabilities recorded on the balance sheet at September 30, 2019 (dollars in thousands):



	Classification on the Balance Sheet	September 30, 2019
Assets
Operating right-of-use lease assets	Other assets	$	58,985

Liabilities
Operating lease liabilities	Accrued expenses and other liabilities	$	62,808



Weighted-average remaining lease term
Operating leases	6.4 years

Weighted-average discount rate
Operating leases	3.83	%

Lease Costs

The table below presents certain information related to the lease costs for operating leases for the three and nine months ended September 30, 2019 (in thousands):



	Three Months Ended September 30,			Nine Months Ended September 30,
	2019			2019
Operating lease cost ⁽¹⁾	$	3,818		$	11,650
Short-term lease cost ⁽¹⁾	62			284
Variable lease cost ⁽¹⁾	623			1,751
Less sublease income ⁽¹⁾	(228		)	(696		)
Total lease cost	$	4,275		$	12,989

⁽¹⁾ Lease expenses and sublease income are classified within occupancy and equipment expense on the Consolidated Statements of Operations.

Supplemental Cash Flow Information

Operating cash flows paid for operating lease amounts included in the measurement of lease liabilities were $3.8 million and $11.5 million for the three and nine months ended September 30, 2019, respectively. During the three and nine months ended September 30, 2019, the Company recorded $8.8 million and $72.5 million, respectively, of right-of-use lease assets in exchange for operating lease liabilities.

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years beginning with 2019 and the total of the remaining years to the operating lease liabilities recorded on the Consolidated Statements of Financial Position (in thousands):



	Operating Leases
Remainder of 2019	$	3,778
2020	14,936
2021	13,596
2022	10,086
2023	7,193
Thereafter	21,498
Total minimum lease payments	71,087
Less: amount of lease payments representing interest	(8,279		)
Lease obligations	$	62,808

As of September 30, 2019, the Company had no undiscounted lease payments under an operating lease that had not yet commenced.