Leases

12 Months Ended

Nov. 30, 2022

We enter into lease and sublease agreements, primarily for office space, across our geographic locations. Information related to operating leases in our Consolidated Statements of Financial Condition at November 30, 2022 and 2021 is as follows (in thousands, except lease term and discount rate):


	November 30,
	2022			2021
Premises and equipment - ROU assets	$	455,264		$	472,014

Weighted average:
Remaining lease term (in years)	10.0			10.0
Discount rate	2.9		%	2.9		%

The following table presents the maturities of our operating lease liabilities and a reconciliation to the Lease liabilities included in our Consolidated Statements of Financial Condition at November 30, 2022 and 2021 (in thousands):


	November 30,
Fiscal Year	2022		2021
2022	$	—	$	75,384
2023	76,847		71,383
2024	78,656		67,039
2025	78,103		66,939
2026	74,472		64,105
2027	71,255		61,722
2028 and thereafter	228,722		228,964
Total undiscounted cash flows	608,055		635,536
Less: Difference between undiscounted and discounted cash flows	(75,353)		(87,470)
Operating leases amount in our Consolidated Statements of Financial Condition	532,702		548,066
Finance leases amount in our Consolidated Statements of Financial Condition	1,006		229
Total amount in our Consolidated Statements of Financial Condition	$	533,708	$	548,295

In addition to the table above, at November 30, 2022, we entered into a lease agreement that was signed but had not yet commenced. This operating lease will commence in 2023 with a lease term of five years. Lease payments for this lease agreement will be $1.2 million for the period from lease commencement to the end of the lease term.

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


	Year Ended November 30,
	2022		2021		2020
Operating lease costs (1)	$	80,959	$	79,701	$	77,452
Variable lease costs (2)	12,887		11,168		13,576
Less: Sublease income	(4,507)		(7,191)		(7,590)
Total lease cost, net	$	89,339	$	83,678	$	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 Statements of Cash Flows supplemental information was as follows (in thousands):


	Year Ended November 30,
	2022		2021		2020
Cash outflows - lease liabilities	$	81,082	$	79,437	$	73,300
Non-cash - ROU assets recorded for new and modified leases	87,977		30,246		22,460

The amortization of the ROU assets is included within Other adjustments in the Consolidated Statements of Cash Flows.