Leases

6 Months Ended

Jun. 30, 2020

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 11 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,
	2020			2019
Three Months Ended
Operating lease costs	$	7,821		$	7,244
Cash payments included in the measurement of lease liabilities reported in operating cash flows	5,844			7,685
Right-of-use assets obtained in exchange for new lease liabilities	435			4,420
Right-of-use assets (1)	119,494			134,061
Operating lease liability (1)	139,772			150,341
Weighted average discount rate	3.9		%	3.9		%
Weighted average remaining lease term	6.1 years			6.5 years

Six Months Ended
Operating lease costs	$	15,812		$	14,860
Cash payments included in the measurement of lease liabilities reported in operating cash flows	14,305			14,585
Right-of-use assets obtained in exchange for new lease liabilities	3,885			4,420
Right-of-use assets (1)	119,494			134,061
Operating lease liability (1)	139,772			150,341
Weighted average discount rate	3.9		%	3.9		%
Weighted average remaining lease term	6.1 years			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, 2020:



Years Ending December 31,
2020 (remainder)	$	15,835
2021	31,475
2022	28,341
2023	23,820
2024	17,601
2025 and thereafter	40,139
Total undiscounted lease liability	$	157,211
Less: present value adjustment	(17,439		)
Operating lease liability	$	139,772