Leases

The Company leases office space for its operations around the globe. Certain leases include options to renew, which can be exercised at the Company’s sole discretion. The Company determines if a contract contains a lease at contract inception. Operating lease assets represent the Company’s right to use the underlying asset and operating lease liabilities represent the Company’s obligation to make lease payments. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company generally does not include options to renew as it is not reasonably certain at contract inception that the Company will exercise the option(s). The Company uses the implicit rate when readily determinable and its incremental borrowing rate when the implicit rate is not readily determinable. The Company’s incremental borrowing rate is determined using its secured borrowing rate and giving consideration to the currency and term of the associated lease as appropriate.

The lease payments used to determine the Company’s operating lease assets may include lease incentives, stated rent increases and escalation clauses linked to rates of inflation when determinable and are recognized in operating lease assets in the condensed consolidated balance sheets. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Straight-lining rent expense creates deferred rent, which is included in operating lease liabilities on the condensed consolidated statement of financial position, and results in differences in the operating lease right-of-use asset and operating lease obligations.

On May 16, 2019, the Company entered into a new Office Lease (the “Lease”) for its new principal executive offices in New York, N.Y. Rental payments are scheduled to commence on November 1, 2020 and shall continue for a term of 15 years and 3 months. The Lease is not included in operating lease right-of-use assets and operating lease obligations on the condensed consolidated statement of financial condition as the Company does not yet have the right to use the premises.

All of the Company’s leases are operating leases and have remaining lease terms ranging from less than 1 year to 15.3 years. The Company incurred operating lease cost, excluding property taxes, utilities and other ancillary costs, of $3.8 million and $11.5 million for the three and nine months ended September 30, 2019, respectively, which is included in occupancy and equipment rental in the condensed consolidated statements of operations.

As of September 30, 2019, the undiscounted aggregate minimum future rental payments are as follows:



	(in thousands)
2019 (remainder)	$	3,921
2020	14,986
2021	12,471
2022	10,895
2023	10,163
Thereafter	97,466
Total lease payments	$	149,902
Less: minimum future rental payments for which the lease has not commenced	(115,870		)
Total lease payments for which the Company has a right-of use-asset and corresponding liability	34,032
Less: Interest	(3,385		)
Present value of operating lease liabilities	$	30,647

The weighted average remaining lease term and weighted average discount rate of our operating leases are as follows:



	As of September 30, 2019
Weighted average remaining lease term in years, including the lease for which the right to use has not commenced	11.8
Weighted average discount rate	5.8	%

As of December 31, 2018, the approximate aggregate minimum future rental payments required as presented under the historical leasing standard in ASC 840 were as follows (in thousands):



2019	$	15,872
2020	13,535
2021	5,153
2022	3,768
2023	3,000
Thereafter	4,629
Total	$	45,957