Operating Leases

12 Months Ended

Dec. 31, 2021

NOTE 19 – Operating Leases

Our operating leases primarily relate to office space and office equipment with remaining lease terms of 1 to 14 years. At December 31, 2021 and 2020, operating lease right-of-use assets were $750.7 million and $793.2 million, respectively, and lease liabilities were $799.1 million and $839.8 million, respectively, and included in accounts payable and accrued expenses in the consolidated statements of financial condition.

The table below summarizes our net lease cost for the years ended December 31, 2021 and 2020 (in thousands):


	Year Ended December 31,
	2021			2020
Operating lease cost	$	102,652		$	102,595
Short-term lease cost		505			502
Variable lease cost		1,076			68
Sublease income		(2,560	)		(3,894	)
Net lease cost	$	101,673		$	99,271

Operating lease costs are included in occupancy and equipment rental in the consolidated statements of operations.

The table below summarizes other information related to our operating leases as of and for the year ended December 31, 2021 (in thousands):


Operating lease cash flows	$	100,330
Right-of-use assets obtained in exchange for new operating lease liabilities	$	41,304
Weighted average remaining lease term	11.5 years
Weighted average discount rate		4.12	%

The weighted-average discount rate represents our company’s incremental borrowing rate at the lease inception date.

The table below presents information about operating lease liabilities as of December 31, 2021, (in thousands, except percentages):


2022	$	99,713
2023		97,969
2024		96,241
2025		94,634
2026		92,809
Thereafter		532,614
Total undiscounted lease payments		1,013,980
Imputed interest		(214,881	)
Total operating lease liabilities	$	799,099