XML 32 R16.htm IDEA: XBRL DOCUMENT v3.20.2
Leases
 9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Lessee, Operating Leases LEASES
The Company leases home office space in Austin, Texas for Citizens and in Bermuda for CICA Ltd. as well as several district office locations related to our Home Service Insurance segment across Louisiana, Mississippi and Arkansas, which are classified as operating leases. Certain operating leases include renewal options that extend the lease terms. The exercise of lease renewal options is at our sole discretion when it is reasonably certain that we will exercise such option. Leases with an initial term of 12 months or less are immaterial to the consolidated financial statements and are recognized as lease expense on a straight-line basis over the lease term and not recorded on the consolidated balance sheet. See our Annual Report on Form 10-K for the year ended December 31, 2019 for a comprehensive discussion of leases.

The Company has $12.3 million of undiscounted lease liability remaining as of September 30, 2020. The Company evaluates its estimated incremental borrowing rate, which is derived from information available at lease commencement date, in determining present value of lease payments.

The table below summarizes the number of weighted-average years remaining in our operating lease liabilities.

Lease TermSeptember 30, 2020
Weighted-average remaining lease term (in years)
Operating leases9.8
We recorded the lease right-of-use asset in Other Assets and the lease liability in Other Liabilities on our consolidated balance sheets. Cash payments related to lease liabilities were $0.2 million and $0.9 million for the three and nine months ended September 30, 2020, respectively, and were reported in operating cash flows. Maturities of our remaining operating lease liabilities as of September 30, 2020 are as follows:

(In thousands)Operating Lease Payments
Maturity of Lease Liabilities
2020$391 
20211,411 
20221,272 
20231,271 
20241,302 
After 20248,271 
Total lease payments13,918 
Interest expense(1,653)
Present value of lease liabilities$12,265 

In January 2019, the Company entered into a long-term lease agreement with an unrelated party for its new home office in Austin, Texas.  Beginning in the second quarter of 2020, the leased area was under construction to our specifications, which required the Company to recognize the related lease right of use asset and liability of $12.0 million. The Company moved into its new home office in the first week of November 2020.
The Company does not engage in lease agreements among related parties.