Leases

12 Months Ended

Dec. 31, 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 note 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 is as follows:


		For the Year Ended December 31,

(In thousands)	2023	2022
Leases:
Lease cost		$	44,256	$	43,383
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows		$	49,910	$	43,871
Right-of-use assets obtained in exchange for new lease liabilities		$	53,753	$	28,075


	As of December 31,
($ in thousands)	2023			2022
Right-of-use assets	$	176,496		$	169,271
Lease liabilities	$	218,621		$	204,088
Weighted-average remaining lease term	7.3 years			7.1 years
Weighted-average discount rate	5.10		%	4.40		%

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


(In thousands)	December 31, 2023
Contractual Maturities:
2024	$	50,222
2025	41,249
2026	34,072
2027	24,900
2028	23,206
Thereafter	84,014
Total undiscounted future minimum lease payments	257,663
Less: Discount impact	39,042
Total lease liability	$	218,621