CASH 2018 Annual Report

154 NOTE 15. LEASE COMMITMENTS The Company has leased property under various non-cancelable operating lease agreements which expire at various times through 2037, and require annual rentals ranging from $400 to $789,000 plus the payment of property taxes, normal maintenance, and insurance on certain properties. The Company also entered into capital lease agreements during the fiscal year ended September 30, 2015, for building and equipment expiring at various times through fiscal year 2035. Amortization expense for these capital leases was $0.1 million for the fiscal year ended September 30, 2018, and included in interest expense. In November 2014, the Company entered into a sale-leaseback transaction for one of its community bank locations in the Des Moines area. This lease meets the requirements of a capital lease and has been reflected as such in the financial statements. The original term of the lease is 20 years and does not contain any penalties for failure to renew after the initial 20 year term where guarantees or loans from the lessee to the lessor are expected to be outstanding. The Company has the option to extend the lease for four additional five year terms at the conclusion of the original lease term. The following table shows the total minimum rental commitment for the Company's operating and capital leases for each of the years presented below as of September 30, 2018. Year Ended September 30, (Dollars in Thousands) Operating Leases Capital Leases 2019 $ 3,854 $ 179 2020 3,656 182 2021 3,429 182 2022 2,955 182 2023 2,561 182 Thereafter 21,428 2,058 Total Leases Commitments $ 37,883 $ 2,965 Amounts representing interest $ 1,089 Present value of net minimum lease payments 1,876 NOTE 16. SEGMENT REPORTING An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met. The Company reports its results of operations through the following three business segments: Payments, Banking, and Corporate Services/Other . The Meta Payment Systems and Tax Services divisions are reported in the Payments segment. The Community Banking, Commercial Finance and Consumer Finance divisions are reported in the Banking segment . Certain shared services, including the investment portfolio,wholesale deposits and borrowings, are included in Corporate Services/Other.