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 June 30, 2024, the weighted-average remaining lease term on these leases is approximately 6 years and the weighted-average discount rate used to measure the lease liabilities is approximately 3.81%. For the six months ended June 30, 2024, 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 condensed consolidated statements of financial condition related to the Company’s leases for the periods indicated.


	June 30,		December 31,
	2024		2023

	(in millions)

Right-of-use assets ¹	$	107	$	120
Lease liabilities ¹	$	127	$	143

(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 periods indicated.


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

	(in millions)

Operating lease cost	$	8	$	9	$	17	$	17
Variable lease cost		1		1		3		3
Total lease cost	$	9	$	10	$	20	$	20

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


	June 30, 2024
	(in millions)
2024 (remaining)	$	16
2025		28
2026		23
2027		18
2028		17
2029		17
Thereafter		23
Total undiscounted operating lease payments		142
Less: imputed interest		(15)
Present value of operating lease liabilities	$	127