Operating Leases

6 Months Ended

Jun. 30, 2025

NOTE 17 – Operating Leases

Our operating leases primarily relate to office space and office equipment with remaining lease terms of 1 to 14 years. At June 30, 2025 and December 31, 2024, operating lease right-of-use assets were $815.0 million and $809.2 million, respectively, and lease liabilities were $876.9 million and $867.4 million, respectively.

The tables below summarize our net lease cost for the three and six months ended June 30, 2025 and 2024 (in thousands):


	Three Months Ended June 30,
	2025			2024
Operating lease cost	$	28,587		$	27,680
Short-term lease cost		462			654
Variable lease cost		7,532			6,752
Sublease income		(241	)		(274	)
Net lease cost	$	36,340		$	34,812


	Six Months Ended June 30,
	2025			2024
Operating lease cost	$	56,137		$	55,192
Short-term lease cost		813			1,378
Variable lease cost		14,751			14,012
Sublease income		(320	)		(549	)
Net lease cost	$	71,381		$	70,033

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 six months ended June 30, 2025 (in thousands):


Operating lease cash flows	$	55,605
Right-of-use assets obtained in exchange for new operating lease liabilities	$	64,702
Weighted-average remaining lease term (years)		12.5
Weighted-average discount rate		5.04	%

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 June 30, 2025, (in thousands, except percentages).


Remainder of 2025	$	52,516
2026		109,316
2027		109,761
2028		107,418
2029		104,789
Thereafter		742,139
Total undiscounted lease payments		1,225,939
Imputed interest		(349,067	)
Total operating lease liabilities	$	876,872

Aircraft Engine Operating Leases

As of June 30, 2025, the Company had a total lease portfolio of 12 aircraft engines with a net book value of $68.2 million. The aircraft engines were purchased by the Company, through its subsidiaries, during 2024. See Note 25 for additional information.

During the three months ended June 30, 2025, the Company sold 5 aircraft engines with a net book value of $42.1 million and recognized a gain from the sale of $28.5 million, which is included in principal transactions in the consolidated statements of operations. During the six months ended June 30, 2025, the Company sold 6 aircraft engines with a net book value of $53.1 million and recognized a gain from the sale of $32.1 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 $2.6 million and $7.7 million for the three months ended June 30, 2025 and 2024, respectively, and $6.5 million and $9.6 million for the six months ended June 30, 2025 and 2024, respectively.