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Leases
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases Leases
We lease office space, furniture and office equipment under various operating and financing leases. Our current leases have initial lease terms of one year to 20 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.
Leases included in the condensed consolidated statement of financial condition as of March 31, 2024 and December 31, 2023 were as follows:
ClassificationMarch 31, 2024December 31, 2023
(in thousands)
Operating Leases
Operating lease right-of-use assetsRight-of-use assets$495,166 $312,588 
Operating lease liabilitiesLease liabilities560,218 357,623 
Finance Leases
Property and equipment, grossRight-of-use assets18,969 18,975 
Amortization of right-of-use assetsRight-of-use assets(8,847)(7,797)
Property and equipment, net10,122 11,178 
Finance lease liabilities Lease liabilities9,945 11,394 
The components of lease expense included in the condensed consolidated statement of income as of March 31, 2024 and March 31, 2023 were as follows:
Three Months Ended March 31,
Classification20242023
(in thousands)
Operating lease costGeneral and administrative$27,936 $23,164 
Financing lease cost:
Amortization of right-of-use assetsGeneral and administrative1,052 1,076 
Interest on lease liabilitiesInterest expense84 65 
Total finance lease cost1,136 1,141 
Variable lease cost (1)
General and administrative9,610 8,867 
Sublease incomeGeneral and administrative(7,723)(8,260)
Net lease cost$30,959 $24,912 
(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)
2024 (excluding the three months ended March 31, 2024)
$79,030 $2,884 $81,914 
202561,398 3,984 65,382 
202658,966 2,553 61,519 
202756,376 881 57,257 
202850,227 137 50,364 
Thereafter458,710 — 458,710 
Total lease payments764,707 10,439 775,146 
Less interest(204,489)(494)
Present value of lease liabilities$560,218 $9,945 
We have signed a lease that commenced during the first quarter of 2024, relating to approximately 166,000 square feet of space in New York City.
Lease term and discount rate:
Weighted average remaining lease term (years):
Operating leases12.74
Finance leases2.80
Weighted average discount rate:
Operating leases4.2 %
Finance leases3.3 %
Supplemental non-cash activity related to leases was as follows:
Three Months Ended March 31,
20242023
(in thousands)
Right-of-use assets obtained in exchange for lease obligations(1):
Operating leases204,729 3,390 
Finance leases— 585 
(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 initial lease terms of one year to 20 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.
Leases included in the condensed consolidated statement of financial condition as of March 31, 2024 and December 31, 2023 were as follows:
ClassificationMarch 31, 2024December 31, 2023
(in thousands)
Operating Leases
Operating lease right-of-use assetsRight-of-use assets$495,166 $312,588 
Operating lease liabilitiesLease liabilities560,218 357,623 
Finance Leases
Property and equipment, grossRight-of-use assets18,969 18,975 
Amortization of right-of-use assetsRight-of-use assets(8,847)(7,797)
Property and equipment, net10,122 11,178 
Finance lease liabilities Lease liabilities9,945 11,394 
The components of lease expense included in the condensed consolidated statement of income as of March 31, 2024 and March 31, 2023 were as follows:
Three Months Ended March 31,
Classification20242023
(in thousands)
Operating lease costGeneral and administrative$27,936 $23,164 
Financing lease cost:
Amortization of right-of-use assetsGeneral and administrative1,052 1,076 
Interest on lease liabilitiesInterest expense84 65 
Total finance lease cost1,136 1,141 
Variable lease cost (1)
General and administrative9,610 8,867 
Sublease incomeGeneral and administrative(7,723)(8,260)
Net lease cost$30,959 $24,912 
(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)
2024 (excluding the three months ended March 31, 2024)
$79,030 $2,884 $81,914 
202561,398 3,984 65,382 
202658,966 2,553 61,519 
202756,376 881 57,257 
202850,227 137 50,364 
Thereafter458,710 — 458,710 
Total lease payments764,707 10,439 775,146 
Less interest(204,489)(494)
Present value of lease liabilities$560,218 $9,945 
We have signed a lease that commenced during the first quarter of 2024, relating to approximately 166,000 square feet of space in New York City.
Lease term and discount rate:
Weighted average remaining lease term (years):
Operating leases12.74
Finance leases2.80
Weighted average discount rate:
Operating leases4.2 %
Finance leases3.3 %
Supplemental non-cash activity related to leases was as follows:
Three Months Ended March 31,
20242023
(in thousands)
Right-of-use assets obtained in exchange for lease obligations(1):
Operating leases204,729 3,390 
Finance leases— 585 
(1) Represents non-cash activity and, accordingly, is not reflected in the condensed consolidated statement of cash flows.