LEASES (Notes)

12 Months Ended

Dec. 31, 2022

The Company leases 95 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. The table below presents the lease right-of-use assets and lease liabilities recorded on the balance sheet at December 31, 2022 and December 31, 2021 (dollars in thousands):


	December 31, 2022		December 31, 2021
Assets
Operating right-of-use lease assets	$	49,283	$	55,257

Liabilities
Operating lease liabilities	$	55,205	$	59,756


Weighted-average remaining lease term
Operating leases	5.1 years		5.5 years

Weighted-average discount rate
Operating leases	3.0	%	2.8	%

The table below presents certain information related to the lease costs for operating leases for the years ended December 31, 2022, 2021 and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Operating lease cost	$	16,647	$	17,541	$	17,337
Short-term lease cost	125		100		97
Variable lease cost	2,189		2,584		2,778
Less sublease income	(1,126)		(904)		(946)
Total lease cost (1)	$	17,835	$	19,321	$	19,266

(1) Lease expenses and sublease income are classified within occupancy and equipment expense on the Consolidated Statements of Operations.

Operating cash flows paid for operating lease amounts included in the measurement of lease liabilities were $15.4 million for the year ended December 31, 2022 and $18.0 million for the year ended December 31, 2021. The Company recorded $9.3 million of right-of-use lease assets in exchange for operating lease liabilities for the year ended December 31, 2022 and $16.7 million for the year ended December 31, 2021.

The table below reconciles the undiscounted cash flows for each of the first five years beginning with 2023 and the total of the remaining years to the operating lease liabilities recorded on the Consolidated Statements of Financial Position (in thousands):


	Operating Leases
2023	$	14,366
2024	13,116
2025	11,203
2026	9,317
2027	6,038
Thereafter	5,568
Total minimum lease payments	59,608
Less: amount of lease payments representing interest	(4,403)
Lease obligations	$	55,205

As of December 31, 2022, the Company had no undiscounted lease payments under an operating lease that had not yet commenced, compared to $353,000 undiscounted lease payments under an operating lease that had not yet commenced at December 31, 2021.