Leases

12 Months Ended

Nov. 30, 2021

Leases [Abstract]

Leases

Leases

We enter into lease and sublease agreements, primarily for office space, across our geographic locations. Information related to operating leases in our Consolidated Statement of Financial Condition at November 30, 2021 and 2020 were as follows (in thousands, except lease term and discount rate):

	November 30,
	2021			2020
Premises and equipment - ROU assets	$	447,950		$	486,614
Weighted average:
Remaining lease term (in years)	10.2			10.9
Discount rate	2.9		%	2.9		%

The following table presents the maturities of our operating lease liabilities and a reconciliation to the Lease liabilities included in our Consolidated Statement of Financial Condition at November 30, 2021 and 2020 (in thousands):

	November 30,
Fiscal Year	2021		2020
2021	$	—	$	65,442
2022	68,315		70,200
2023	65,971		62,641
2024	63,640		61,106
2025	64,528		63,158
2026	62,120		56,936
2027 and thereafter	281,642		281,806
Total undiscounted cash flows	606,216		661,289
Less: Difference between undiscounted and discounted cash flows	(84,997)		(100,402)
Operating leases amount in our Consolidated Statement of Financial Condition	521,219		560,887
Finance leases amount in our Consolidated Statement of Financial Condition	229		362
Total amount in our Consolidated Statement of Financial Condition	$	521,448	$	561,249

The following table presents our lease costs (in thousands):

	Year Ended November 30,
	2021		2020
Operating lease costs (1)	$	73,264	$	71,140
Variable lease costs (2)	10,899		13,332
Less: Sublease income	(4,835)		(5,974)
Total lease cost, net	$	79,328	$	78,498

(1)     Includes short-term leases, which are not material.

(2)     Includes property taxes, insurance costs, common area maintenance, utilities, and other costs that are not fixed. The amount also includes rent increases resulting from inflation indices and periodic market rent reviews.

Consolidated Statement of Cash Flows supplemental information was as follows (in thousands):

	Year Ended November 30,
	2021		2020
Cash outflows - lease liabilities	$	72,214	$	66,248
Non-cash - ROU assets recorded for new and modified leases	18,902		21,389

The amortization of the ROU assets is included within Other adjustments on the Consolidated Statements of Cash Flows.

Rental expense, net of subleases, amounted to $61.2 million for the year ended November 30, 2019.

Leases

Leases

We enter into lease and sublease agreements, primarily for office space, across our geographic locations. Information related to operating leases in our Consolidated Statement of Financial Condition at November 30, 2021 and 2020 were as follows (in thousands, except lease term and discount rate):

	November 30,
	2021			2020
Premises and equipment - ROU assets	$	447,950		$	486,614
Weighted average:
Remaining lease term (in years)	10.2			10.9
Discount rate	2.9		%	2.9		%

The following table presents the maturities of our operating lease liabilities and a reconciliation to the Lease liabilities included in our Consolidated Statement of Financial Condition at November 30, 2021 and 2020 (in thousands):

	November 30,
Fiscal Year	2021		2020
2021	$	—	$	65,442
2022	68,315		70,200
2023	65,971		62,641
2024	63,640		61,106
2025	64,528		63,158
2026	62,120		56,936
2027 and thereafter	281,642		281,806
Total undiscounted cash flows	606,216		661,289
Less: Difference between undiscounted and discounted cash flows	(84,997)		(100,402)
Operating leases amount in our Consolidated Statement of Financial Condition	521,219		560,887
Finance leases amount in our Consolidated Statement of Financial Condition	229		362
Total amount in our Consolidated Statement of Financial Condition	$	521,448	$	561,249

The following table presents our lease costs (in thousands):

	Year Ended November 30,
	2021		2020
Operating lease costs (1)	$	73,264	$	71,140
Variable lease costs (2)	10,899		13,332
Less: Sublease income	(4,835)		(5,974)
Total lease cost, net	$	79,328	$	78,498

(1)     Includes short-term leases, which are not material.

(2)     Includes property taxes, insurance costs, common area maintenance, utilities, and other costs that are not fixed. The amount also includes rent increases resulting from inflation indices and periodic market rent reviews.

Consolidated Statement of Cash Flows supplemental information was as follows (in thousands):

	Year Ended November 30,
	2021		2020
Cash outflows - lease liabilities	$	72,214	$	66,248
Non-cash - ROU assets recorded for new and modified leases	18,902		21,389

The amortization of the ROU assets is included within Other adjustments on the Consolidated Statements of Cash Flows.

Rental expense, net of subleases, amounted to $61.2 million for the year ended November 30, 2019.