Operating Leases

9 Months Ended

Sep. 30, 2025

NOTE 17 – Operating Leases

Our operating leases primarily relate to office space and office equipment with remaining lease terms of 1 to 14 years. At September 30, 2025 and December 31, 2024, operating lease right-of-use assets were $794.4 million and $809.2 million, respectively, and lease liabilities were $858.3 million and $867.4 million, respectively.

The tables below summarize our net lease cost for the three and nine months ended September 30, 2025 and 2024 (in thousands):


	Three Months Ended September 30,
	2025			2024
Operating lease cost	$	29,292		$	27,789
Short-term lease cost		571			814
Variable lease cost		7,148			6,567
Sublease income		(241	)		(290	)
Net lease cost	$	36,770		$	34,880


	Nine Months Ended September 30,
	2025			2024
Operating lease cost	$	85,429		$	82,981
Short-term lease cost		1,384			2,192
Variable lease cost		21,899			20,579
Sublease income		(561	)		(839	)
Net lease cost	$	108,151		$	104,913

Operating lease costs are included in occupancy and equipment rental in the consolidated statements of operations.

The table below summarizes other information related to our operating leases as of and for the nine months ended September 30, 2025 (in thousands):


Operating lease cash flows	$	83,810
Right-of-use assets obtained in exchange for new operating lease liabilities	$	65,359
Weighted-average remaining lease term (years)		12.2
Weighted-average discount rate		5.08	%

The weighted average discount rate represents our company’s incremental borrowing rate at the lease inception date.

The table below presents information about operating lease liabilities as of September 30, 2025, (in thousands, except percentages).


Remainder of 2025	$	26,156
2026		109,853
2027		109,729
2028		107,281
2029		104,718
Thereafter		736,207
Total undiscounted lease payments		1,193,944
Imputed interest		(335,598	)
Total operating lease liabilities	$	858,346

Aircraft Engine Operating Leases

As of September 30, 2025, the Company had a total lease portfolio of 8 aircraft engines with a net book value of $35.2 million. The aircraft engines were purchased by the Company, through its subsidiaries, during 2024. See Note 25 for additional information.

During the three months ended September 30, 2025, the Company sold 4 aircraft engines with a net book value of $33.0 million and recognized a gain from the sales of $9.9 million, which is included in principal transactions in the consolidated statements of operations. During the nine months ended September 30, 2025, the Company sold 10 aircraft engines with a net book value of $86.0 million and recognized a gain from the sales of $41.9 million, which is included in principal transactions in the consolidated statements of operations.

Lease income, included in other income in the consolidated statements of operations, was $1.2 million and $8.6 million for the three months ended September 30, 2025 and 2024, respectively, and $7.7 million and $18.2 million for the nine months ended September 30, 2025 and 2024, respectively.