Leases

6 Months Ended

Jun. 30, 2023

Lessees are required to recognize a right-of-use asset and a lease liability for leases with terms of more than 12 months on the balance sheet. All leases disclosed within this footnote are classified as operating leases. Recognized right-of-use asset and lease liability are reported within other assets and other liabilities, respectively, in the consolidated balance sheet. Lease expense is reported in other operating costs and expenses in the consolidated statement of income and accounted for on a straight-line basis over the lease term.

To determine the discount rate used to calculate present value of future minimum lease payments, the Company uses its incremental borrowing rate during the lease commencement period in line with the respective lease duration. In certain cases, the Company has the option to renew the lease. Lease renewal future payments are included in the present value of the future minimum lease payments when the Company determines it is reasonably certain to renew.

The main leases entered into by the Company are for office space used by the Company’s operating units across the world. Additionally, the Company, to a lesser extent, has equipment leases mainly for office equipment. Further information relating to operating lease expense and other operating lease information are as follows:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,

(In thousands)	2023		2022		2023		2022
Leases:
Lease cost	$	10,138	$	12,152	$	20,326	$	22,351
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows	$	11,281	$	11,054	$	21,844	$	22,047
Right-of-use assets obtained in exchange for new lease liabilities	$	2,633	$	2,933	$	7,946	$	20,202


	As of June 30,
($ in thousands)	2023			2022
Right-of-use assets	$	157,991		$	171,871
Lease liabilities	$	191,576		$	207,959
Weighted-average remaining lease term	7.0 years			7.2 years
Weighted-average discount rate	4.49		%	4.53		%

Contractual maturities of the Company’s future minimum lease payments are as follows:


(In thousands)	June 30, 2023
Contractual Maturities:
2023	$	24,328
2024	43,694
2025	35,187
2026	27,905
2027	18,098
Thereafter	73,034
Total undiscounted future minimum lease payments	222,246
Less: Discount impact	30,670
Total lease liability	$	191,576