Leases

12 Months Ended

Nov. 30, 2020

Leases [Abstract]

Leases

Leases

We enter into lease and sublease agreements primarily for office space across our geographic locations. Finance lease ROU assets and finance lease liabilities are not material. Information related to operating leases in the Consolidated Statement of Financial Condition at November 30, 2020 is as follows (in thousands, except lease term and discount rate):

Property, equipment and leasehold improvements, net - ROU assets	$	507,046
Weighted average:
Remaining lease term (in years)	10.6 years
Discount rate	3.0		%

The following table presents the maturities of our operating lease liabilities and a reconciliation to the Lease liabilities included in the Consolidated Statement of Financial Condition at November 30, 2020 (in thousands):

Fiscal Year	Lease Liabilities
2021	$	72,491
2022	76,987
2023	67,164
2024	63,476
2025	64,563
2026 and thereafter	342,195
Total undiscounted cash flows	686,876
Less: Difference between undiscounted and discounted cash flows	(102,431)
Operating leases amount in the Consolidated Statement of Financial Condition	584,445
Finance leases amount in the Consolidated Statement of Financial Condition	362
Total amount in the Consolidated Statement of Financial Condition	$	584,807

The following table presents our lease costs (in thousands):

	For the Twelve Months Ended November 30, 2020
Operating lease costs (1)	$	77,452
Variable lease costs (2)	13,576
Less: Sublease income	(7,590)
Total lease cost, net	$	83,438

(1)    Includes short-term leases, which are not material.

(2)    Includes property taxes, insurance costs, common area maintenance, utilities, and other costs that are not fixed. The amount also includes rent increases resulting from inflation indices and periodic market rent reviews.

Consolidated Statement of Cash Flows supplemental information is as follows (in thousands):

	For the Twelve Months Ended November 30, 2020
Cash outflows - lease liabilities	$	73,300
Non-cash - ROU assets recorded for new and modified leases	22,460

Minimum Future Lease Commitments (under previous GAAP)

We and our subsidiaries rent office space and office equipment under noncancellable operating leases with terms varying through 2039. Future minimum annual rentals (exclusive of month-to-month leases, real estate taxes, maintenance and certain other charges) under these leases at November 30, 2019 were as follows (in thousands):

2020	$	70,886
2021	73,374
2022	71,464
2023	62,552
2024	59,714
Thereafter	393,995
	731,985
Less:  sublease income	(21,883)
	$	710,102

Rental expense, net of sublease rental income, was $65.6 million and $55.7 million for the twelve months ended November 30, 2019 and the eleven months ended November 30, 2018, respectively.

Leases

Leases

We enter into lease and sublease agreements primarily for office space across our geographic locations. Finance lease ROU assets and finance lease liabilities are not material. Information related to operating leases in the Consolidated Statement of Financial Condition at November 30, 2020 is as follows (in thousands, except lease term and discount rate):

Property, equipment and leasehold improvements, net - ROU assets	$	507,046
Weighted average:
Remaining lease term (in years)	10.6 years
Discount rate	3.0		%

The following table presents the maturities of our operating lease liabilities and a reconciliation to the Lease liabilities included in the Consolidated Statement of Financial Condition at November 30, 2020 (in thousands):

Fiscal Year	Lease Liabilities
2021	$	72,491
2022	76,987
2023	67,164
2024	63,476
2025	64,563
2026 and thereafter	342,195
Total undiscounted cash flows	686,876
Less: Difference between undiscounted and discounted cash flows	(102,431)
Operating leases amount in the Consolidated Statement of Financial Condition	584,445
Finance leases amount in the Consolidated Statement of Financial Condition	362
Total amount in the Consolidated Statement of Financial Condition	$	584,807

The following table presents our lease costs (in thousands):

	For the Twelve Months Ended November 30, 2020
Operating lease costs (1)	$	77,452
Variable lease costs (2)	13,576
Less: Sublease income	(7,590)
Total lease cost, net	$	83,438

(1)    Includes short-term leases, which are not material.

(2)    Includes property taxes, insurance costs, common area maintenance, utilities, and other costs that are not fixed. The amount also includes rent increases resulting from inflation indices and periodic market rent reviews.

Consolidated Statement of Cash Flows supplemental information is as follows (in thousands):

	For the Twelve Months Ended November 30, 2020
Cash outflows - lease liabilities	$	73,300
Non-cash - ROU assets recorded for new and modified leases	22,460

Minimum Future Lease Commitments (under previous GAAP)

We and our subsidiaries rent office space and office equipment under noncancellable operating leases with terms varying through 2039. Future minimum annual rentals (exclusive of month-to-month leases, real estate taxes, maintenance and certain other charges) under these leases at November 30, 2019 were as follows (in thousands):

2020	$	70,886
2021	73,374
2022	71,464
2023	62,552
2024	59,714
Thereafter	393,995
	731,985
Less:  sublease income	(21,883)
	$	710,102

Rental expense, net of sublease rental income, was $65.6 million and $55.7 million for the twelve months ended November 30, 2019 and the eleven months ended November 30, 2018, respectively.