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Leases | 9 Months Ended
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Sep. 30, 2019
Leases [Abstract] |
Leases | Note 14. Leases Artisan has lease commitments for office space, parking structures, and equipment, which are all accounted for as operating leases. Artisan records expense for operating leases on a straight-line basis over the lease term. Any lease incentives received by Artisan are also amortized on a straight-line basis over the lease term. Artisan assesses its contractual arrangements for the existence of a lease at inception. Operating leases with an initial term greater than 12 months are recorded as operating lease assets and operating lease liabilities in the Unaudited Condensed Consolidated Statements of Financial Condition. Lease components (e.g. fixed rental payments) and non-lease components (e.g. fixed common-area maintenance costs) are generally accounted for as a single component. Operating lease assets and operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Artisan’s lease agreements generally do not provide an implicit interest rate, and therefore the present value calculation uses Artisan’s estimated incremental borrowing rate. A market-based approach was used to estimate the incremental borrowing rate for each individual lease using observable market interest rates and Artisan specific inputs. The lease terms include periods covered by options to extend or exclude periods covered by options to terminate the lease when it is reasonably certain that Artisan will exercise that option. Operating lease expense was as follows:
| For the Three Months Ended September 30, |  |  |  | For the Nine Months Ended September 30, |  |
| 2019 |  | 2018 |  | 2019 |  | 2018
Compensation and benefits | $ | 128 |  |  | $ | 117 |  |  | $ | 388 |  |  | $ | 350 |
Occupancy (1) | 3,736 |  |  | 3,739 |  |  | 12,801 |  |  | 9,793 |
Communication and technology | 82 |  |  | 89 |  |  | 234 |  |  | 251 |
Sublease income | (143) |  |  | — |  |  | (143) |  |  | — |
Total operating lease expense | $ | 3,803 |  |  | $ | 3,945 |  |  | $ | 13,280 |  |  | $ | 10,394 |
(1) Occupancy includes a $1.5 million charge related to the abandonment of a leased office space during the nine months ended September 30, 2019, as discussed below. |  |  |  |  |  |  |
During the nine months ended September 30, 2019, the Company recognized an asset impairment loss of $2.1 million related to the abandonment of a leased office location. The loss is recorded in occupancy expense based on the present value of expected future cash flows and consists of a $1.5 million lease asset impairment and a $0.6 million property impairment. The table below presents the maturity of operating lease liabilities:
| As of September 30, 2019
2019 (excluding the nine months ended September 30, 2019) | $ | 3,955 |
2020 | 16,167 |
2021 | 16,294 |
2022 | 14,802 |
2023 | 13,245 |
Thereafter | 60,495 |
Total undiscounted lease payments | $ | 124,958 |
Adjustment to discount to present value | (22,112) |
Total operating lease liabilities | $ | 102,846 |
As of September 30, 2019, there were not any leases that were signed but not yet commenced, and none of the options to extend lease terms were reasonably certain of being exercised. Other information related to leases was as follows:
| For the Nine Months Ended September 30, 2019
Weighted average discount rate | 4.7 | %
Weighted average remaining lease term | 8.3 years
Operating cash flows for operating leases | $ | 10,423 |
At December 31, 2018, the aggregate future minimum payments for leases for each of the following five years and thereafter are as follows:
| As of December 31, 2018
2019 | $ | 14,123 |
2020 | 15,340 |
2021 | 15,215 |
2022 | 13,748 |
2023 | 12,378 |
Thereafter | 57,185 |
Total undiscounted lease payments | $ | 127,989 |

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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