LEASES

3 Months Ended

Dec. 31, 2020

As of December 31, 2020 and September 30, 2020, our lease commitments resulted in ROU assets of $350 million and $321 million, respectively, and lease liabilities of $372 million and $345 million, respectively, which were included in “Other assets” and “Other payables,” respectively, on our Condensed Consolidated Statements of Financial Condition. The weighted-average remaining lease term and discount-rate for our leases was 5.5 years and 3.80%, respectively, as of December 31, 2020. See Note 2 of our 2020 Form 10-K for a discussion of our accounting policies related to leases.

Lease expense

The following table details the components of lease expense, which is included in “Occupancy and equipment” expense on our Condensed Consolidated Statements of Income and Comprehensive Income. Lease expense is recognized on a straight-line basis over the lease term if the ROU asset has not been impaired or abandoned.


	Three months ended December 31,
$ in millions	2020		2019
Lease costs	$	27	23
Variable lease costs	$	6	8

Variable lease costs in the preceding table include payments for common area maintenance charges and other variable costs that are not reflected in the measurement of ROU assets and lease liabilities.

Lease liabilities

The maturities of lease liabilities as of December 31, 2020 are presented in the following table.


Fiscal year ended September 30,	$ in millions
Remainder of 2021	$	74
2022	90
2023	72
2024	54
2025	40
Thereafter	86
Gross lease payments	416
Less: interest	(44)
Present value of lease liabilities	$	372

Lease payments in the preceding table exclude $145 million of legally binding minimum lease payments for leases signed but not yet commenced. These leases are estimated to commence between fiscal year 2021 and 2022 with lease terms ranging from three years to 11 years.