Leases

6 Months Ended

Jun. 30, 2020

Leases

Leases

12. Leases

The Company has various non-cancelable, long-term operating leases, the largest of which are for office space including the corporate headquarters, VIP claims centers and law offices. Other operating leases consist of auto leases and various office equipment. The Company has no finance leases. Our leases have remaining lease terms of one year to ten years, some of which include options to extend the leases for up to five years.

The Company adopted ASU 2016-02, ASU 2018-10 and ASU 2018-11 effective January 1, 2019 (“the application date”) using the required modified retrospective transition approach. In accordance with the guidance, the Company has elected not to adjust comparative periods. As such ASC 842 will be applied to each lease that had commenced as of the application date with a cumulative effect adjustment as of that date. All periods before the application date presented in the financial statements will not change and the guidance in ASC 840 will apply. The Company has elected to apply the package of practical expedients provided in ASC 842 to all leases. In addition, the Company has elected not to apply the hindsight practical expedient or the land easement practical expedient.

In calculating lease liabilities the Company uses its incremental borrowing rate as of the application date based on original lease terms. The components of lease expense were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
		2020		2019		2020	2019
Operating lease cost	$	1,147	$	1,154	$	2,298	2,308

Other information related to leases was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
		2020		2019		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,263	$	1,256	$	2,545	$	2,512
Weighted average remaining lease term
Operating leases						8.01 Years		9.02 Years
Weighted average discount rate
Operating leases						2.37%		3.45%

Maturities of lease liabilities were as follows:

2020	$	2,494
2021		4,845
2022		4,286
2023		3,880
2024		3,875
2025 and after		15,405
Total lease payments		34,785
Less imputed interest		(1,693)
Total	$	33,092