Leases

3 Months Ended

Mar. 31, 2024

Lessees are required to recognize a right-of-use asset and a lease liability for leases with terms of more than 12 months on the balance sheet. All leases disclosed within this footnote are classified as operating leases. Recognized right-of-use asset and lease liability are reported within other assets and other liabilities, respectively, in the consolidated balance sheet. Lease expense is reported in other operating costs and expenses in the consolidated statement of income and accounted for on a straight-line basis over the lease term.

To determine the discount rate used to calculate present value of future minimum lease payments, the Company uses its incremental borrowing rate during the lease commencement period in line with the respective lease duration. In certain cases, the Company has the option to renew the lease. Lease renewal future payments are included in the present value of the future minimum lease payments when the Company determines it is reasonably certain to renew.

The main leases entered into by the Company are for office space used by the Company’s operating units across the world. Additionally, the Company, to a lesser extent, has equipment leases mainly for office equipment. Further information relating to operating lease expense and other operating lease information are as follows:


	For the Three Months Ended March 31,

(In thousands)	2024		2023
Leases:
Lease cost	$	11,077	$	10,188
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows	$	12,232	$	10,563
Right-of-use assets obtained in exchange for new lease liabilities	$	24,695	$	5,313


	As of March 31,
($ in thousands)	2024			2023
Right-of-use assets	$	191,720		$	164,547
Lease liabilities	$	233,114		$	199,225
Weighted-average remaining lease term	7.6 years			7.1 years
Weighted-average discount rate	5.44		%	4.49		%

Contractual maturities of the Company’s future minimum lease payments are as follows:


(In thousands)	March 31, 2024
Contractual Maturities:
2024	$	38,862
2025	44,402
2026	37,499
2027	28,341
2028	26,760
Thereafter	104,223
Total undiscounted future minimum lease payments	280,087
Less: Discount impact	46,973
Total lease liability	$	233,114