Leases

6 Months Ended

Jun. 30, 2019

In the ordinary course of business, the Company renews and enters into new leases for office property and equipment. At the lease inception date, the Company determines whether a contract contains a lease and its classification as a finance or operating lease. Primarily all of the Company’s leases are classified as operating leases. The Company’s operating leases have remaining lease terms of up to 12 years, some of which include options to extend the lease term. The Company considers these options when determining the lease term and measuring its lease liability and right-of-use asset. In addition, the Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Short-term operating leases with an initial term of twelve months or less were excluded on the Company's consolidated balance sheet and represent an inconsequential amount of operating lease expense.

As most leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments.

Additional information regarding the Company’s operating leases is as follows:



	June 30,
	2019

Three Months Ended
Operating lease costs	$	7,244
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	7,685
Right-of-use assets obtained in exchange for new lease liabilities	$	4,420
Right-of-use assets (1)	$	134,061
Operating lease liability (1)	$	150,341
Weighted average discount rate	3.9		%
Weighted average remaining lease term	6.5 years

Six Months Ended
Operating lease costs	$	14,860
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	14,585
Right-of-use assets obtained in exchange for new lease liabilities	$	4,420
Right-of-use assets (1)	$	134,061
Operating lease liability (1)	$	150,341
Weighted average discount rate	3.9		%
Weighted average remaining lease term	6.5 years


(1)	The right-of-use assets are included in ‘other assets’ while the operating lease liability is included in ‘other liabilities.’

The following table presents the contractual maturities of the Company's operating lease liabilities at June 30, 2019:



Years Ending December 31,
2019 (remainder)	$	9,985
2020	32,036
2021	30,673
2022	27,365
2023	22,667
2024 and thereafter	55,610
Total undiscounted lease liability	$	178,336
Less: present value adjustment	(27,995		)
Operating lease liability	$	150,341

At December 31, 2018, the future minimum rental commitments, exclusive of escalation clauses and maintenance costs and net of rental income, for all of the Company’s operating leases was as follows:



2019	$	31,088
2020	30,491
2021	29,351
2022	26,068
2023	21,408
2024 and thereafter	54,745
Total	$	193,151