Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases included in the condensed consolidated statement of financial condition as of September 30, 2023 and December 31, 2022 were as follows:


	Classification	September 30, 2023		December 31, 2022
		(in thousands)
Operating Leases
Operating lease right-of-use assets	Right-of-use assets	$	331,269	$	360,092
Operating lease liabilities	Lease liabilities	379,212		415,539

Finance Leases
Property and equipment, gross	Right-of-use assets	20,732		18,116
Amortization of right-of-use assets	Right-of-use assets	(8,946)		(6,310)
Property and equipment, net		11,786		11,806
Finance lease liabilities	Lease liabilities	11,846		11,940

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, 2023 and September 30, 2022 were as follows:


		Three Months Ended September 30,				Nine Months Ended September 30,
	Classification	2023		2022		2023		2022
		(in thousands)
Operating lease cost	General and administrative	$	23,611	$	24,491	$	70,895	$	73,076
Financing lease cost:
Amortization of right-of-use assets	General and administrative	1,248		1,021		3,527		2,845
Interest on lease liabilities	Interest expense	96		50		249		143
Total finance lease cost		1,344		1,071		3,776		2,988
Variable lease cost (1)	General and administrative	9,445		9,970		25,744		30,125
Sublease income	General and administrative	(8,300)		(8,296)		(25,301)		(26,167)
Net lease cost		$	26,100	$	27,236	$	75,114	$	80,022

(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	7.30
Finance leases	3.07
Weighted average discount rate:
Operating leases	2.8	%
Finance leases	3.0	%

Supplemental non-cash activity related to leases was as follows:


	Nine Months Ended September 30,
	2023	2022
	(in thousands)




Right-of-use assets obtained in exchange for lease obligations(1):
Operating leases	32,867	32,862
Finance leases	3,516	6,414

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

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)
2023 (excluding the nine months ended September 30, 2023)	$	24,167	$	1,117	$	25,284
2024	110,237		4,265		114,502
2025	41,901		3,836		45,737
2026	40,076		2,405		42,481
2027	37,444		741		38,185
Thereafter	163,211		67		163,278
Total lease payments	417,036		12,431		429,467
Less interest	(37,824)		(585)
Present value of lease liabilities	$	379,212	$	11,846

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)
2023 (excluding the nine months ended September 30, 2023)	$	24,167	$	1,117	$	25,284
2024	110,237		4,265		114,502
2025	41,901		3,836		45,737
2026	40,076		2,405		42,481
2027	37,444		741		38,185
Thereafter	163,211		67		163,278
Total lease payments	417,036		12,431		429,467
Less interest	(37,824)		(585)
Present value of lease liabilities	$	379,212	$	11,846