All of the Company’s leases are classified as operating leases and primarily consist of real estate leases for corporate offices, data centers, and other facilities. As of September 30, 2020, the weighted-average remaining lease term on these leases is approximately 8 years and the weighted-average discount rate used to measure the lease liabilities is approximately 4.17%. For the nine months ended September 30, 2020, right-of-use assets obtained under new operating leases were $3 million. The Company’s lease agreements do not contain any residual value guarantees, restrictions or covenants.

The table below presents balances reported in the unaudited condensed consolidated statements of financial condition related to the Company’s leases for the period indicated.


	September 30, 2020		December 31, 2019
	(in millions)
Right-of-use assets¹	$	107	$	118
Lease liabilities¹	$	116	$	124

(1)Right-of-use assets are included in other assets and lease liabilities are included in accounts payable, accrued expenses and other liabilities in the Company’s unaudited condensed consolidated statements of financial condition.

The table below presents balances reported in the unaudited condensed consolidated statements of comprehensive income related to the Company’s leases for the period indicated.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)
Operating lease cost	$	7	$	7	$	19	$	19
Variable lease cost		1		1		3		3
Total lease cost	$	8	$	8	$	22	$	22

The tables below reconcile the undiscounted cash flows of the Company’s leases to the present value of its operating lease payments for the periods indicated.


	September 30, 2020
	(in millions)
2020 (remaining)	$	5
2021		18
2022		17
2023		15
2024		14
2025		14
Thereafter		56
Total undiscounted operating lease payments		139
Less: imputed interest		(23)
Present value of operating lease liabilities	$	116