LEASES

3 Months Ended

Mar. 31, 2020

The Company leases 105 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.

Lease Position as of March 31, 2020 and December 31, 2019

The table below presents the lease right-of-use assets and lease liabilities recorded on the balance sheet at March 31, 2020 and December 31, 2019 (dollars in thousands):



	Classification on the Balance Sheet	March 31, 2020		December 31, 2019
Assets
Operating right-of-use lease assets	Other assets	$	59,620	$	61,766

Liabilities
Operating lease liabilities	Accrued expenses and other liabilities	$	63,757	$	65,818



Weighted-average remaining lease term
Operating leases	6.0 years		6.2 years

Weighted-average discount rate
Operating leases	3.6	%	3.7	%

Lease Costs

The table below presents certain information related to the lease costs for operating leases for the three months ended March 31, 2020 and 2019 (in thousands):



	Three Months Ended March 31,
	2020			2019
Operating lease cost ⁽¹⁾	$	4,164		$	3,975
Short-term lease cost ⁽¹⁾	21			121
Variable lease cost ⁽¹⁾	811			561
Less sublease income ⁽¹⁾	(254		)	(237		)
Total lease cost	$	4,742		$	4,420

⁽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 $4.1 million and $3.9 million for the three months ended March 31, 2020 and March 31, 2019, respectively. During the three months ended March 31, 2020 and March 31, 2019, the Company recorded $1.6 million and $61.0 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 next five years beginning with 2020 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 2020	$	12,180
2021	15,370
2022	11,764
2023	8,675
2024	6,756
Thereafter	16,489
Total minimum lease payments	71,234
Less: amount of lease payments representing interest	(7,477		)
Lease obligations	$	63,757

As of March 31, 2020 and December 31, 2019, the Company had no undiscounted lease payments under an operating lease that had not yet commenced.