Operating Leases

3 Months Ended

Mar. 31, 2025

NOTE 17 – Operating Leases

Our operating leases primarily relate to office space and office equipment with remaining lease terms of 1 to 15 years. At March 31, 2025 and December 31, 2024, operating lease right-of-use assets were $786.3 million and $809.2 million, respectively, and lease liabilities were $844.3 million and $867.4 million, respectively.

The table below summarizes our net lease cost for the three months ended March 31, 2025 and 2024 (in thousands):


	Three Months Ended March 31,
	2025			2024
Operating lease cost	$	27,550		$	27,512
Short-term lease cost		351			724
Variable lease cost		7,219			7,260
Sublease income		(79	)		(275	)
Net lease cost	$	35,041		$	35,221

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, 2025 (in thousands):


Operating lease cash flows	$	27,716
Right-of-use assets obtained in exchange for new operating lease liabilities	$	19,987
Weighted-average remaining lease term (years)		12.6
Weighted-average discount rate		5.01	%

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, 2025, (in thousands, except percentages).


Remainder of 2025	$	76,641
2026		103,681
2027		104,531
2028		102,383
2029		99,537
Thereafter		696,656
Total undiscounted lease payments		1,183,429
Imputed interest		(339,120	)
Total operating lease liabilities	$	844,309

Aircraft Engine Operating Leases

As of March 31, 2025, the Company had a total lease portfolio of 17 aircraft engines with a net book value of $110.3 million. The aircraft engines were purchased by the Company, through its subsidiaries, during 2024. See Note 25 for addition information.

During the three months ended March 31, 2025, the Company sold 1 aircraft engine with a net book value of $11.0 million and recognized a gain from the sale of $3.6 million, which is included in principal transactions in the consolidated statements of operations.

Lease income, included in other income in the consolidated statements of operations, was $3.9 million and $1.9 million, respectively, for the three months ended March 31, 2025 and 2024.