Leases

Substantially all of the leases in which the Company is the lessee are office space leases with various terms with maximum duration through

2026.

All of our leases are classified as operating leases, and therefore, were previously

not

recognized on the Company’s Consolidated Statement of Financial Condition. With the adoption of ASU

2016

02,

Leases (Topic

842

)

, operating lease agreements are required to be recognized on the Consolidated Statements of Financial Condition as a "right-of-use" (“ROU”) asset and a corresponding ROU lease liability.

The calculated amount of the ROU asset and ROU lease liability are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. Regarding the discount rate, Topic

842

requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to

January 1, 2019,

the rate for the remaining lease term as of

January 1, 2019

was used.

	March 31, 2019
Weighted-average remaining lease term
Operating leases		6.30 years
Weighted-average discount rate
Operating leases		6.12	%

The Company leases office space in California, I

llinois, Georgia, Massachusetts, Minnesota, Florida, and New York under various operating leases. Occupancy expense was

$1.4

million and

$1.1

million f

or quarters ended

March 31, 2019

and

2018,

respectively.

The California, Illinois, Minnesota and New York leases included a period of free rent at the start of the lease. Rent expense is recognized over the entire lease period. The aggregate minimum future lease payments of these leases are:

(In thousands)	Minimum Future Lease Payments
Year Ending December 31,
2019	$	3,530
2020		5,621
2021		5,693
2022		5,649
2023		5,643
Thereafter		6,562
Total minimum future lease payments		32,698
Amounts representing interest		(5,228	)
Present value of net future minimum lease payments	$	27,470

	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Cash used in operating leases	$	1,653
Total cash paid for amounts included in the measurement of lease liabilities	$	1,653