Leases

9 Months Ended

Sep. 30, 2019

FHN has operating, financing, and short-term leases for branch locations, corporate offices and certain equipment. Substantially all of these leases are classified as operating leases.

The following table provides a detail of the classification of FHN's right-of-use ("ROU") assets and lease liabilities included in the Consolidated Condensed Statement of Conditions.



(Dollars in thousands)		September 30, 2019
Lease Right-of-Use Assets:	Classification
Operating lease right-of use assets	Other assets	$	174,352
Finance lease right-of use assets	Other assets	634
Total Lease Right-of Use Assets		$	174,986

Lease Liabilities:
Operating lease liabilities	Other liabilities	$	196,012
Finance lease liabilities	Other liabilities	1,280
Total Lease Liabilities		$	197,292

The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The following table details the weighted average remaining lease term and discount rate for FHN's operating and finance leases as of September 30, 2019.



Weighted Average Remaining Lease Terms
Operating leases	12.01 years
Finance leases	6.67 years
Weighted Average Discount Rate
Operating leases	3.47	%
Finance leases	9.96	%

The following table provides a detail of the components of lease expense and other lease information for the three and nine months ended September 30, 2019:



(Dollars in thousands)	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Lease cost
Operating lease cost	$	5,989		$	18,573
Finance lease cost:
Amortization of right-of-use assets	23			71
Interest on lease liabilities	33			98
Short-term lease cost	(10		)	70
Sublease income	(97		)	(289		)
Total lease cost	$	5,938		$	18,523

Other information
(Gain)/loss on right-of-use asset impairment-Operating leases	$	—		$	2,551

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	5,279			16,626
Operating cash flows from finance leases	32			98
Financing cash flows from finance leases	32			94

Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	574			5,358
Finance leases	—			—

The following table provides a detail of the maturities of FHN's operating and finance lease liabilities as of September 30, 2019:



(Dollars in thousands)	September 30, 2019
Remainder of 2019	$	6,261
2020	24,854
2021	22,451
2022	21,202
2023	20,240
2024 and after	147,800
Total future minimum lease payments	242,808
Less lease liability interest	(45,516		)
Present value of net future minimum lease payments	$	197,292

FHN had aggregate undiscounted contractual obligations totaling $33.5 million for lease arrangements that have not commenced. Payments under these arrangements are expected to occur from 2019 through 2032.

Minimum future lease payments for noncancelable operating leases, primarily on premises, on December 31, 2018 are shown below.



(Dollars in thousands)	December 31, 2018
2019	$	27,524
2020	24,722
2021	20,954
2022	16,518
2023	13,174
2024 and after	42,370
Total minimum lease payments	$	145,262

Leases

FHN has operating, financing, and short-term leases for branch locations, corporate offices and certain equipment. Substantially all of these leases are classified as operating leases.

The following table provides a detail of the classification of FHN's right-of-use ("ROU") assets and lease liabilities included in the Consolidated Condensed Statement of Conditions.



(Dollars in thousands)		September 30, 2019
Lease Right-of-Use Assets:	Classification
Operating lease right-of use assets	Other assets	$	174,352
Finance lease right-of use assets	Other assets	634
Total Lease Right-of Use Assets		$	174,986

Lease Liabilities:
Operating lease liabilities	Other liabilities	$	196,012
Finance lease liabilities	Other liabilities	1,280
Total Lease Liabilities		$	197,292



Weighted Average Remaining Lease Terms
Operating leases	12.01 years
Finance leases	6.67 years
Weighted Average Discount Rate
Operating leases	3.47	%
Finance leases	9.96	%

The following table provides a detail of the components of lease expense and other lease information for the three and nine months ended September 30, 2019:



(Dollars in thousands)	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Lease cost
Operating lease cost	$	5,989		$	18,573
Finance lease cost:
Amortization of right-of-use assets	23			71
Interest on lease liabilities	33			98
Short-term lease cost	(10		)	70
Sublease income	(97		)	(289		)
Total lease cost	$	5,938		$	18,523

Other information
(Gain)/loss on right-of-use asset impairment-Operating leases	$	—		$	2,551

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	5,279			16,626
Operating cash flows from finance leases	32			98
Financing cash flows from finance leases	32			94

Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	574			5,358
Finance leases	—			—

The following table provides a detail of the maturities of FHN's operating and finance lease liabilities as of September 30, 2019:



(Dollars in thousands)	September 30, 2019
Remainder of 2019	$	6,261
2020	24,854
2021	22,451
2022	21,202
2023	20,240
2024 and after	147,800
Total future minimum lease payments	242,808
Less lease liability interest	(45,516		)
Present value of net future minimum lease payments	$	197,292

Minimum future lease payments for noncancelable operating leases, primarily on premises, on December 31, 2018 are shown below.



(Dollars in thousands)	December 31, 2018
2019	$	27,524
2020	24,722
2021	20,954
2022	16,518
2023	13,174
2024 and after	42,370
Total minimum lease payments	$	145,262