Operating Leases

6 Months Ended

Jun. 30, 2023

NOTE 17 – Operating Leases

Our operating leases primarily relate to office space and office equipment with remaining lease terms of 1 to 13 years. At June 30, 2023 and December 31, 2022, operating lease right-of-use assets were $732.2 million and $775.9 million, respectively, and lease liabilities were $778.4 million and $819.7 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, 2023 and 2022 (in thousands):


	Three Months Ended June 30,
	2023			2022
Operating lease cost	$	26,349		$	26,322
Short-term lease cost		385			379
Variable lease cost		6,990			5,712
Sublease income		(273	)		(580	)
Net lease cost	$	33,451		$	31,833


	Six Months Ended June 30,
	2023			2022
Operating lease cost	$	52,778		$	53,452
Short-term lease cost		715			597
Variable lease cost		13,945			11,023
Sublease income		(562	)		(1,195	)
Net lease cost	$	66,876		$	63,877

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, 2023 (in thousands):


Operating lease cash flows	$	54,897
Right-of-use assets obtained in exchange for new operating lease liabilities	$	12,421
Weighted-average remaining lease term (years)		10.9
Weighted-average discount rate		4.11	%

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, 2023, (in thousands, except percentages).


Remainder of 2023	$	52,579
2024		103,927
2025		98,246
2026		98,384
2027		96,638
Thereafter		530,983
Total undiscounted lease payments		980,757
Imputed interest		(202,377	)
Total operating lease liabilities	$	778,380