Table of Contents CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Notes to Consolidated Financial Statements, Continued and $4,000 for the CICA and CNLIC domestic life insurance businesses, respectively. We have not yet received any correspondence from the IRS related to our submissions. From time to time we are subject to legal and regulatory actions relating to our business. We defend all claims vigorously. As a result, we incur defense costs, including attorneys' fees, other direct litigation costs and the expenditure of management time that otherwise would be devoted to our business. If we suffer an adverse judgment as a result of litigation claims, it could have a material adverse effect on our business, results of operations and financial condition. As disclosed in prior periods, the legal and regulatory actions facing the company include those relating to compliance with U.S. federal securities laws. Specifically, the Company has been the subject of an investigation by the Securities and Exchange Commission (“SEC”), which appeared to be focused on the Company’s internal control over financial reporting and disclosure controls and procedures in light of the Company’s determination in 2015 that a portion of the life insurance and annuity policies issued by its subsidiary insurance companies failed to qualify for the favorable U.S. federal income tax treatment afforded by Sections 7702 and 72(s) of the Internal Revenue Code of 1986. On August 22, 2018, the Company received a notice from the SEC (the “Notice”) stating that the SEC has concluded the Investigation and, based on the information that the SEC had as of the date of the Notice, the SEC has decided to not recommend an enforcement action against the Company relating to the Investigation. The Notice was provided under the guidelines set forth in the final paragraph of Securities Act Release No. 5310. We have the following operating lease commitments as of December 31, 2018 with the payments due by the periods indicated below. Litigation and Regulatory Actions Note 8: Segment and Other Operating Information Operating lease expense was $1.9 million, $1.1 million and $0.6 million for the years ended for December 31, 2018, 2017 and 2016, respectively. The Company has two reportable segments: Life Insurance and Home Service Insurance. The Life Insurance and Home Service portions of the Company constitute separate businesses. In addition to the Life Insurance and Home Service business, the Company also operates other non-insurance ("Other Non-Insurance Enterprises") portions of the Company, which primarily includes the Company’s IT and Corporate- support functions, which is included in the table presentation below to properly reconcile the segment information with consolidated financial statements of the Company. Lease Commitments (In thousands) Less than 1 year $ 1,939 1 year to 3 years 1,296 3 years to 5 years 30 More than 5 years — Total $ 3,265 104