Lease Commitments

12 Months Ended

Dec. 31, 2020

The Company and its Affiliates currently lease office space and equipment under various operating leasing arrangements. For the year ended December 31, 2018, consolidated lease costs were $40.5 million. The following table presents total lease costs (net) for 2019 and 2020:


	For the Years Ended December 31,
	2019		2020
Operating lease costs	$	41.7	$	37.6
Short-term lease costs	2.1		0.8
Variable lease costs	0.1		0.0
Sublease income	(4.4)		(5.0)
Total lease costs (net)	$	39.5	$	33.4

For the years ended December 31, 2019 and 2020, new right-of-use assets obtained in exchange for lease liabilities were $26.1 million and $24.4 million, respectively. As of December 31, 2019 and 2020, the Company’s and its Affiliates’ weighted average operating lease term was eight years and seven years, respectively, and the weighted average operating lease discount rate was 4% as of both December 31, 2019 and 2020.

As of December 31, 2020, the maturities of lease liabilities were as follows:


Year	Operating Leases
2021	$	40.5
2022	36.7
2023	32.0
2024	25.9
2025	21.3
Thereafter	59.6
Total undiscounted lease liabilities(1)	$	216.0

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(1)Total undiscounted lease liabilities were $34.9 million greater than the operating leases recorded in Other liabilities primarily due to present value discounting. Both amounts exclude leases with initial terms of 12 months or less and leases that have not yet commenced.

In the fourth quarter of 2019, the Company recorded an $8.1 million expense to reduce the carrying value to fair value of certain of the Company’s right-of-use assets related to a reduction in leased office space. The fair values of the right-of-use assets were determined using a discounted cash flow analysis, a Level 3 fair value measurement that included market rental rates ranging from $13 to $68 per square foot (a weighted-average of $46 per square foot), weighted-average discount rates ranging from 3.3% to 5.5% and a market participant tax rate of 25%. In 2020, no impairments of right-of-use assets were indicated.