Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Schedule of Leases

Leases included in the condensed consolidated statement of financial condition as of September 30, 2020 and December 31, 2019 were as follows:

	Classification	September 30, 2020		December 31, 2019
		(in thousands)
Operating Leases
Operating lease right-of-use assets	Right-of-use assets	$	300,366	$	360,185
Operating lease liabilities	Lease liabilities	392,875		465,907
Finance Leases
Property and equipment, gross	Right-of-use assets	5,167		3,825
Amortization of right-of-use assets	Right-of-use assets	(2,293)		(1,317)
Property and equipment, net		2,874		2,508
Finance lease liabilities	Lease liabilities	2,822		2,544

Components of Lease Expense and Supplemental Cash Flow Information

The components of lease expense included in the condensed consolidated statement of income as of September 30, 2020 and September 30, 2019 were as follows:

		Three Months Ended September 30,				Nine Months Ended September 30,
	Classification	2020		2019		2020		2019
		(in thousands)
Operating lease cost	General and administrative	$	22,104	$	26,181	$	67,519	$	79,829
Financing lease cost:
Amortization of right-of-use assets	General and administrative	426		355		1,329		932
Interest on lease liabilities	Interest expense	20		20		69		52
Total finance lease cost		446		375		1,398		984
Variable lease cost (1)	General and administrative	9,342		10,588		28,652		30,337
Sublease income	General and administrative	(9,579)		(14,021)		(28,820)		(42,472)
Net lease cost		$	22,313	$	23,123	$	68,749	$	68,678

⁽¹⁾ Variable lease expense includes operating expenses, real estate taxes and employee parking.

Lease term and discount rate:
Weighted average remaining lease term (years)
Operating leases	4.74
Finance leases	2.56
Weighted average discount rate
Operating leases	3.51	%
Finance leases	2.67	%

Supplemental cash flow information related to leases was as follows:

	Nine Months Ended September 30,
	2020		2019
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	86,452	$	99,490
Operating cash flows used for financing leases	69		52
Financing cash flows from finance leases	1,418		901
Right-of-use assets obtained in exchange for lease obligations(1):
Operating leases (2)	2,369		10,565
Finance leases	1,695		1,080

⁽¹⁾ Represents non-cash activity and, accordingly, is not reflected in the condensed consolidated statements of cash flows.

(2) Represents net non-cash activity of extensions and reductions of lease obligations.

Schedule of Maturities of Finance Lease Liabilities

Maturities of lease liabilities were as follows:

	Operating Leases		Financing Leases		Total
Year ending December 31,	(in thousands)
2020 (excluding the nine months ended September 30, 2020)	$	23,969	$	464	$	24,433
2021	105,599		1,141		106,740
2022	90,515		757		91,272
2023	83,095		526		83,621
2024	80,057		23		80,080
Thereafter	43,295		—		43,295
Total lease payments	426,530		2,911		429,441
Less interest	(33,655)		(89)
Present value of lease liabilities	$	392,875	$	2,822

Schedule of Maturities of Operating Lease Liabilities

Maturities of lease liabilities were as follows:

	Operating Leases		Financing Leases		Total
Year ending December 31,	(in thousands)
2020 (excluding the nine months ended September 30, 2020)	$	23,969	$	464	$	24,433
2021	105,599		1,141		106,740
2022	90,515		757		91,272
2023	83,095		526		83,621
2024	80,057		23		80,080
Thereafter	43,295		—		43,295
Total lease payments	426,530		2,911		429,441
Less interest	(33,655)		(89)
Present value of lease liabilities	$	392,875	$	2,822