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, 2021, the weighted-average remaining lease term on these leases is approximately 7 years and the weighted-average discount rate used to measure the lease liabilities is approximately 4.13%. For the nine months ended September 30, 2021, right-of-use assets obtained under new operating leases were $18 million. The Company’s lease agreements do not contain any residual value guarantees, restrictions, or covenants.

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


	September 30,		December 31,
	2021		2020

	(in millions)

Right-of-use assets¹	$	100	$	101
Lease liabilities¹	$	120	$	120

(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 condensed consolidated statements of financial condition.

The table below presents balances reported in the 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,
	2021		2020		2021		2020

	(in millions)

Operating lease cost	$	6	$	7	$	20	$	19
Variable lease cost		1		1		3		3
Total lease cost	$	7	$	8	$	23	$	22

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


	September 30, 2021
	(in millions)
2021 (remaining)	$	6
2022		23
2023		22
2024		17
2025		15
2026		14
Thereafter		42
Total undiscounted operating lease payments		139
Less: imputed interest		(19)
Present value of operating lease liabilities	$	120