XML 27 R13.htm IDEA: XBRL DOCUMENT v3.22.4
Leases
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases
4.    Leases

The Company and its subsidiaries have operating leases for office space and equipment expiring at various dates through 2034. The Company leases its corporate headquarters at 85 Broad Street, New York, New York which houses its executive management team and many administrative functions for the firm as well as its research, trading, investment banking, and asset management divisions and an office in Troy, Michigan, which among other things, houses its payroll and human resources departments. In addition, the Company has 92 retail branch offices in the United States as well as offices in London, England, St. Helier, Isle of Jersey, Geneva, Switzerland, Munich, Germany, Tel Aviv, Israel and Hong Kong, China.

The Company is constantly assessing its needs for office space and, on a rolling basis, has many leases that expire in any given year.
Substantially all of the leases are held by the Company's subsidiary, Viner Finance Inc., which is a consolidated subsidiary and 100% owned by the Company.

Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include an option to renew and the exercise of lease renewal options is at the Company's sole discretion. The Company did not include the renewal options as part of the right of use assets and liabilities.

The depreciable life of assets and leasehold improvements is limited by the expected lease term. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As of December 31, 2022, the Company had right-of-use operating lease assets of $142.6 million (net of accumulated amortization of $82.4 million) which are comprised of real estate leases of $139.7 million (net of accumulated amortization of $80.0 million) and equipment leases of $2.9 million (net of accumulated amortization of $2.4 million). As of December 31, 2022, the Company had operating lease liabilities of $182.6 million which are comprised of real estate lease liabilities of $179.7 million and equipment lease liabilities of $2.9 million. The Company had no finance leases as of December 31, 2022.

As most of the Company's leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company used the incremental borrowing rate on January 1, 2019 for operating leases that commenced prior to that date. The Company used the incremental borrowing rate as of the lease commencement date for the operating leases that commenced subsequent to January 1, 2019.

The following table presents the weighted average lease term and weighted average discount rate for the Company's operating leases as of December 31, 2022 and December 31, 2021, respectively:
As of

December 31, 2022

December 31, 2021
Weighted average remaining lease term (in years)6.827.38
Weighted average discount rate6.66%6.89%

The following table presents operating lease costs recognized for the years ended December 31, 2022 and December 31, 2021, respectively, which are included in occupancy and equipment costs on the consolidated income statements:
                                                                                        
(Expressed in thousands)
For the Year Ended
December 31, 2022
For the Year Ended
December 31, 2021
Operating lease costs:
      Real estate leases - Right-of-use lease asset amortization$25,128 $24,343 
      Real estate leases - Interest expense12,996 14,139 
      Equipment leases - Right-of-use lease asset amortization1,672 1,784 
      Equipment leases - Interest expense152 142 
The maturities of lease liabilities as of December 31, 2022 are as follows:
    
(Expressed in thousands)


As of
December 31, 2022
2023$42,343 
202438,018 
202531,684 
202629,671 
202728,178 
After 202758,146 
Total lease payments$228,040 
Less interest(45,470)
Present value of lease liabilities$182,570 

As of December 31, 2022, the Company had $40.2 million of additional operating leases that have not yet commenced. ($16.2 million as of December 31, 2021).