XML 30 R20.htm IDEA: XBRL DOCUMENT v3.23.1
Leases
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
Leases Leases
We lease office space, furniture and office equipment under various operating and financing leases. Our current leases have remaining lease terms of one year to 15 years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. Since 2010, we have sub-leased over one million square feet of office space.
Leases included in the condensed consolidated statement of financial condition as of March 31, 2023 and December 31, 2022 were as follows:
ClassificationMarch 31, 2023December 31, 2022
(in thousands)
Operating Leases
Operating lease right-of-use assetsRight-of-use assets$344,293 $360,092 
Operating lease liabilitiesLease liabilities398,686 415,539 
Finance Leases
Property and equipment, grossRight-of-use assets18,701 18,116 
Amortization of right-of-use assetsRight-of-use assets(7,386)(6,310)
Property and equipment, net11,315 11,806 
Finance lease liabilities Lease liabilities11,063 11,940 
The components of lease expense included in the condensed consolidated statement of income as of March 31, 2023 and March 31, 2022 were as follows:
Three Months Ended March 31,
Classification20232022
(in thousands)
Operating lease costGeneral and administrative$23,164 $24,525 
Financing lease cost:
Amortization of right-of-use assetsGeneral and administrative1,076 740 
Interest on lease liabilitiesInterest expense65 37 
Total finance lease cost1,141 777 
Variable lease cost (1)
General and administrative8,867 10,687 
Sublease incomeGeneral and administrative(8,260)(8,561)
Net lease cost$24,912 $27,428 
(1) Variable lease expense includes operating expenses, real estate taxes and employee parking.
The sub-lease income represents all revenues received from sub-tenants. It is primarily fixed base rental payments combined with variable reimbursements such as operating expenses, real estate taxes and employee parking. The vast majority of sub-tenant income is derived from our New York metro sub-tenant agreements. Sub-tenant income related to base rent is recorded on a straight-line basis. 
Maturities of lease liabilities were as follows:
Operating LeasesFinancing LeasesTotal
Year ending December 31,(in thousands)
2023 (excluding the three months ended March 31, 2023)
$74,188 $2,853 $77,041 
2024105,833 3,468 109,301 
202538,128 3,039 41,167 
202636,546 1,810 38,356 
202733,578 324 33,902 
Thereafter147,132 — 147,132 
Total lease payments435,405 11,494 446,899 
Less interest(36,719)(431)
Present value of lease liabilities$398,686 $11,063 
We have signed a lease that commences in 2024, relating to approximately 166,000 square feet of space in New York City. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 20-year lease term is approximately $393.0 million.
Lease term and discount rate:
Weighted average remaining lease term (years):
Operating leases7.28
Finance leases3.23
Weighted average discount rate:
Operating leases2.70 %
Finance leases2.29 %
Supplemental non-cash activity related to leases was as follows:
Three Months Ended March 31,
20232022
(in thousands)
Right-of-use assets obtained in exchange for lease obligations(1):
Operating leases3,390 7,719 
Finance leases585 2,569 
(1) Represents non-cash activity and, accordingly, is not reflected in the condensed consolidated statement of cash flows.
Leases Leases
We lease office space, furniture and office equipment under various operating and financing leases. Our current leases have remaining lease terms of one year to 15 years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. Since 2010, we have sub-leased over one million square feet of office space.
Leases included in the condensed consolidated statement of financial condition as of March 31, 2023 and December 31, 2022 were as follows:
ClassificationMarch 31, 2023December 31, 2022
(in thousands)
Operating Leases
Operating lease right-of-use assetsRight-of-use assets$344,293 $360,092 
Operating lease liabilitiesLease liabilities398,686 415,539 
Finance Leases
Property and equipment, grossRight-of-use assets18,701 18,116 
Amortization of right-of-use assetsRight-of-use assets(7,386)(6,310)
Property and equipment, net11,315 11,806 
Finance lease liabilities Lease liabilities11,063 11,940 
The components of lease expense included in the condensed consolidated statement of income as of March 31, 2023 and March 31, 2022 were as follows:
Three Months Ended March 31,
Classification20232022
(in thousands)
Operating lease costGeneral and administrative$23,164 $24,525 
Financing lease cost:
Amortization of right-of-use assetsGeneral and administrative1,076 740 
Interest on lease liabilitiesInterest expense65 37 
Total finance lease cost1,141 777 
Variable lease cost (1)
General and administrative8,867 10,687 
Sublease incomeGeneral and administrative(8,260)(8,561)
Net lease cost$24,912 $27,428 
(1) Variable lease expense includes operating expenses, real estate taxes and employee parking.
The sub-lease income represents all revenues received from sub-tenants. It is primarily fixed base rental payments combined with variable reimbursements such as operating expenses, real estate taxes and employee parking. The vast majority of sub-tenant income is derived from our New York metro sub-tenant agreements. Sub-tenant income related to base rent is recorded on a straight-line basis. 
Maturities of lease liabilities were as follows:
Operating LeasesFinancing LeasesTotal
Year ending December 31,(in thousands)
2023 (excluding the three months ended March 31, 2023)
$74,188 $2,853 $77,041 
2024105,833 3,468 109,301 
202538,128 3,039 41,167 
202636,546 1,810 38,356 
202733,578 324 33,902 
Thereafter147,132 — 147,132 
Total lease payments435,405 11,494 446,899 
Less interest(36,719)(431)
Present value of lease liabilities$398,686 $11,063 
We have signed a lease that commences in 2024, relating to approximately 166,000 square feet of space in New York City. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 20-year lease term is approximately $393.0 million.
Lease term and discount rate:
Weighted average remaining lease term (years):
Operating leases7.28
Finance leases3.23
Weighted average discount rate:
Operating leases2.70 %
Finance leases2.29 %
Supplemental non-cash activity related to leases was as follows:
Three Months Ended March 31,
20232022
(in thousands)
Right-of-use assets obtained in exchange for lease obligations(1):
Operating leases3,390 7,719 
Finance leases585 2,569 
(1) Represents non-cash activity and, accordingly, is not reflected in the condensed consolidated statement of cash flows.