Operating Leases

12 Months Ended

Dec. 31, 2023

NOTE 20 – Operating Leases

Our operating leases primarily relate to office space and office equipment with remaining lease terms of 1 to 12 years. At December 31, 2023 and 2022, operating lease right-of-use assets were $778.2 million and $775.9 million, respectively, and lease liabilities were $825.5 million and $819.7 million, respectively, and included in accounts payable and accrued expenses in the consolidated statements of financial condition.

The table below summarizes our net lease cost for the years ended December 31, 2023 and 2022 (in thousands):


	Year Ended December 31,
	2023			2022
Operating lease cost	$	107,281		$	107,963
Short-term lease cost		2,164			1,385
Variable lease cost		28,623			23,106
Sublease income		(1,111	)		(2,303	)
Net lease cost	$	136,957		$	130,151

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 year ended December 31, 2023 (in thousands):


Operating lease cash flows	$	111,295
Right-of-use assets obtained in exchange for new operating lease liabilities	$	91,925
Weighted average remaining lease term (years)		12.6
Weighted average discount rate		5.03	%

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 December 31, 2023, (in thousands, except percentages):


2024	$	105,502
2025		99,994
2026		100,545
2027		100,148
2028		97,335
Thereafter		651,330
Total undiscounted lease payments		1,154,854
Imputed interest		(329,325	)
Total operating lease liabilities	$	825,529