Leases

9 Months Ended

Aug. 31, 2020

Leases [Abstract]

Leases

Leases

We enter into lease and sublease agreements, primarily for office space, across our geographic locations. Finance lease ROU assets and finance lease liabilities are not material. Information related to operating leases in our Consolidated Statement of Financial Condition at August 31, 2020 was as follows (in thousands, except lease term and discount rate):

Premises and equipment - ROU assets	$	499,856
Weighted average:
Remaining lease term (in years)	11.1
Discount rate	2.9		%

The following table presents the maturities of our operating lease liabilities and a reconciliation to the Lease liabilities included in our Consolidated Statement of Financial Condition at August 31, 2020 (in thousands):

Fiscal Year	Lease Liabilities
Remainder of 2020	$	20,495
2021	69,850
2022	68,063
2023	60,928
2024	59,624
2025 and thereafter	398,951
Total undiscounted cash flows	677,911
Less: Difference between undiscounted and discounted cash flows	(104,595		)
Operating leases amount in our Consolidated Statement of Financial Condition	573,316
Finance leases amount in our Consolidated Statement of Financial Condition	247
Total amount in our Consolidated Statement of Financial Condition	$	573,563

The following table presents our lease costs (in thousands):

	Three Months Ended   August 31, 2020			Nine Months Ended   August 31, 2020
Operating lease costs (1)	$	17,866		$	53,255
Variable lease costs (2)	3,413			9,379
Less: Sublease income	(1,475		)	(4,475		)
Total lease cost, net	$	19,804		$	58,159

(1) Includes short-term leases, which are not material.

(2) Includes property taxes, insurance costs, common area maintenance, utilities, and other costs that are not fixed. The amount also includes rent increases resulting from inflation indices and periodic market rent reviews.

Consolidated Statement of Cash Flows supplemental information was as follows (in thousands):

	Nine Months Ended   August 31, 2020
Cash outflows - lease liabilities	$	54,001
Non-cash - ROU assets recorded for new and modified leases	20,756

Minimum Future Lease Commitments (under Previous GAAP). As lessee, we lease certain premises and equipment under non-cancelable agreements expiring at various dates through 2039 which are operating leases. At November 30, 2019, future minimum aggregate annual lease payments under such leases (net of subleases) for fiscal years ended November 30, 2020 through 2024 and the aggregate amount thereafter, were as follows (in thousands):

Fiscal Year	Operating Leases
2020	$	57,952
2021	60,395
2022	62,916
2023	57,574
2024	56,878
Thereafter	389,245
Total	$	684,960

The total minimum payments to be received in the future under non-cancelable subleases at November 30, 2019 was $16.2 million.

Rental expense, net of subleases, amounted to $61.2 million, $52.3 million, and $56.1 million for the years ended November 30, 2019, 2018 and 2017, respectively.

Leases

Leases

We enter into lease and sublease agreements, primarily for office space, across our geographic locations. Finance lease ROU assets and finance lease liabilities are not material. Information related to operating leases in our Consolidated Statement of Financial Condition at August 31, 2020 was as follows (in thousands, except lease term and discount rate):

Premises and equipment - ROU assets	$	499,856
Weighted average:
Remaining lease term (in years)	11.1
Discount rate	2.9		%

The following table presents the maturities of our operating lease liabilities and a reconciliation to the Lease liabilities included in our Consolidated Statement of Financial Condition at August 31, 2020 (in thousands):

Fiscal Year	Lease Liabilities
Remainder of 2020	$	20,495
2021	69,850
2022	68,063
2023	60,928
2024	59,624
2025 and thereafter	398,951
Total undiscounted cash flows	677,911
Less: Difference between undiscounted and discounted cash flows	(104,595		)
Operating leases amount in our Consolidated Statement of Financial Condition	573,316
Finance leases amount in our Consolidated Statement of Financial Condition	247
Total amount in our Consolidated Statement of Financial Condition	$	573,563

The following table presents our lease costs (in thousands):

	Three Months Ended   August 31, 2020			Nine Months Ended   August 31, 2020
Operating lease costs (1)	$	17,866		$	53,255
Variable lease costs (2)	3,413			9,379
Less: Sublease income	(1,475		)	(4,475		)
Total lease cost, net	$	19,804		$	58,159

(1) Includes short-term leases, which are not material.

(2) Includes property taxes, insurance costs, common area maintenance, utilities, and other costs that are not fixed. The amount also includes rent increases resulting from inflation indices and periodic market rent reviews.

Consolidated Statement of Cash Flows supplemental information was as follows (in thousands):

	Nine Months Ended   August 31, 2020
Cash outflows - lease liabilities	$	54,001
Non-cash - ROU assets recorded for new and modified leases	20,756

Minimum Future Lease Commitments (under Previous GAAP). As lessee, we lease certain premises and equipment under non-cancelable agreements expiring at various dates through 2039 which are operating leases. At November 30, 2019, future minimum aggregate annual lease payments under such leases (net of subleases) for fiscal years ended November 30, 2020 through 2024 and the aggregate amount thereafter, were as follows (in thousands):

Fiscal Year	Operating Leases
2020	$	57,952
2021	60,395
2022	62,916
2023	57,574
2024	56,878
Thereafter	389,245
Total	$	684,960

The total minimum payments to be received in the future under non-cancelable subleases at November 30, 2019 was $16.2 million.

Rental expense, net of subleases, amounted to $61.2 million, $52.3 million, and $56.1 million for the years ended November 30, 2019, 2018 and 2017, respectively.