Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases included in the condensed consolidated statement of financial condition as of September 30, 2021 and December 31, 2020 were as follows:


	Classification	September 30, 2021		December 31, 2020
		(in thousands)
Operating Leases
Operating lease right-of-use assets	Right-of-use assets	$	428,268	$	416,007
Operating lease liabilities	Lease liabilities	500,821		503,174

Finance Leases
Property and equipment, gross	Right-of-use assets	8,005		5,167
Amortization of right-of-use assets	Right-of-use assets	(2,327)		(2,719)
Property and equipment, net		5,678		2,448
Finance lease liabilities	Lease liabilities	5,742		2,375

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, 2021 and September 30, 2020 were as follows:


		Three Months Ended September 30,				Nine Months Ended September 30,
	Classification	2021		2020		2021		2020
		(in thousands)
Operating lease cost	General and administrative	$	23,992	$	22,104	$	73,039	$	67,519
Financing lease cost:
Amortization of right-of-use assets	General and administrative	631		426		1,611		1,329
Interest on lease liabilities	Interest expense	24		20		67		69
Total finance lease cost		655		446		1,678		1,398
Variable lease cost (1)	General and administrative	9,763		9,342		29,653		28,652
Sublease income	General and administrative	(9,550)		(9,579)		(28,863)		(28,820)
Net lease cost		$	24,860	$	22,313	$	75,507	$	68,749

(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	7.60
Finance leases	3.31
Weighted average discount rate:
Operating leases	2.81	%
Finance leases	1.54	%

Supplemental cash flow information related to leases was as follows:


	Nine Months Ended September 30,
	2021		2020
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	87,654	$	86,452
Operating cash flows used for financing leases	67		69
Financing cash flows used for finance leases	1,473		1,418
Right-of-use assets obtained in exchange for lease obligations(1):
Operating leases	74,305		2,369
Finance leases	4,840		1,695

(1) Represents supplemental non-cash information on lease liabilities arising from obtaining right-of-use assets.

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)
2021 (excluding the nine months ended September 30, 2021)	$	24,205	$	523	$	24,728
2022	103,005		2,003		105,008
2023	95,398		1,740		97,138
2024	98,179		896		99,075
2025	32,563		599		33,162
Thereafter	198,781		111		198,892
Total lease payments	552,131		5,872		558,003
Less interest	(51,310)		(130)
Present value of lease liabilities	$	500,821	$	5,742

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)
2021 (excluding the nine months ended September 30, 2021)	$	24,205	$	523	$	24,728
2022	103,005		2,003		105,008
2023	95,398		1,740		97,138
2024	98,179		896		99,075
2025	32,563		599		33,162
Thereafter	198,781		111		198,892
Total lease payments	552,131		5,872		558,003
Less interest	(51,310)		(130)
Present value of lease liabilities	$	500,821	$	5,742