Operating Leases

3 Months Ended

Mar. 31, 2022

NOTE 16 – Operating Leases

Our operating leases primarily relate to office space and office equipment with remaining lease terms of 1 to 14 years. At March 31, 2022 and December 31, 2021, operating lease right-of-use assets were $759.6 million and $750.7 million, respectively, and lease liabilities were $807.0 million and $799.1 million, respectively, included in accounts payable and accrued expenses in the consolidated statements of financial condition.

The table below summarizes our net lease cost for the three months ended March 31, 2022 and 2021 (in thousands):


	Three Months Ended March 31,
	2022			2021
Operating lease cost	$	26,731		$	25,123
Short-term lease cost		218			155
Variable lease cost		399			108
Sublease income		(615	)		(659	)
Net lease cost	$	26,733		$	24,727

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 three months ended March 31, 2022 (in thousands):


Operating lease cash flows	$	26,656
Right-of-use assets obtained in exchange for new operating lease liabilities	$	25,052
Weighted-average remaining lease term	11.7 years
Weighted-average discount rate		4.05	%

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 March 31, 2022, (in thousands, except percentages).


Remainder of 2022	$	74,253
2023		99,157
2024		97,561
2025		95,990
2026		94,318
Thereafter		563,287
Total undiscounted lease payments		1,024,566
Imputed interest		(217,590	)
Total operating lease liabilities	$	806,976