Operating Leases

6 Months Ended

Jun. 30, 2022

NOTE 16 – 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, 2022 and December 31, 2021, operating lease right-of-use assets were $762.8 million and $750.7 million, respectively, and lease liabilities were $807.2 million and $799.1 million, respectively, included in accounts payable and accrued expenses in the consolidated statements of financial condition.

The table below summarizes our net lease cost for the three and six months ended June 30, 2022 and 2021 (in thousands):


	Three Months Ended June 30,
	2022			2021
Operating lease cost	$	25,542		$	25,367
Short-term lease cost		379			78
Variable lease cost		326			233
Sublease income		(580	)		(649	)
Net lease cost	$	25,667		$	25,029


	Six Months Ended June 30,
	2022			2021
Operating lease cost	$	52,273		$	50,490
Short-term lease cost		597			233
Variable lease cost		725			341
Sublease income		(1,195	)		(1,308	)
Net lease cost	$	52,400		$	49,756

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, 2022 (in thousands):


Operating lease cash flows	$	52,593
Right-of-use assets obtained in exchange for new operating lease liabilities	$	56,524
Weighted-average remaining lease term	11.5 years
Weighted-average discount rate		3.98	%

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, 2022, (in thousands, except percentages).


Remainder of 2022	$	50,741
2023		100,802
2024		98,834
2025		96,944
2026		95,296
Thereafter		576,550
Total undiscounted lease payments		1,019,167
Imputed interest		(211,983	)
Total operating lease liabilities	$	807,184