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Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases LeasesThe Company adopted ASU 2016-02 on January 1, 2019, and elected the modified retrospective method of implementation. The standard requires the recognition of ROU assets and lease liabilities for leases, which are defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company has elected the practical expedient which allows for leases with an initial term of 12 months or less to be excluded from recognition on the Consolidated Statements of Financial Condition and for which lease expense is recognized on a straight-line basis over the lease term.
Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. These leases are primarily for corporate office space, datacenters, and technology equipment. The leases have remaining terms of 1 year to 15 years, some of which include options to extend the initial term at the Company's discretion. The lease terms used in calculating ROU assets and lease liabilities include the options to extend the initial term when the Company is reasonably certain of exercising the options. The Company's lease agreements do not contain any material residual value guarantees, restrictions or covenants. In addition to the base rental costs, the Company’s lease agreements for corporate office space generally provide for rent escalations resulting from increased assessments for operating expenses, real estate taxes and other charges. Payments for such reimbursable expenses are considered variable and are recognized as variable lease costs in the period in which the obligation for those payments was incurred.

The Company also subleases certain office space and facilities to third parties. The subleases have remaining terms of 1 to 11 years. The Company recognizes amounts received from subleases on a straight-line basis over the term of the sublease within Operations and administrative expense on the Consolidated Statements of Comprehensive Income.

As the implied discount rate for most of the Company's leases is not readily determinable, the Company uses its incremental borrowing rate on its secured borrowings in determining the present value of lease payments.

Lease assets and liabilities are summarized as follows:

(in thousands)Financial Statement LocationDecember 31, 2020December 31, 2019
Operating leases
Operating lease right-of-use assetsOperating lease right-of-use assets$268,864 $314,526 
Operating lease liabilitiesOperating lease liabilities315,340 365,364 
Finance leases
Property and equipment, at costProperty, equipment, and capitalized software, net36,093 37,589 
Accumulated depreciationProperty, equipment, and capitalized software, net(24,585)(24,579)
Finance lease liabilitiesAccounts payable, accrued expenses, and other liabilities11,687 13,371 

Weighted average remaining lease term and discount rate are as follows:

December 31, 2020December 31, 2019
Weighted average remaining lease term
Operating leases6.9 years7.5 years
Finance leases2.0 years1.5 years
Weighted average discount rate
Operating leases5.67 %5.70 %
Finance leases3.13 %3.52 %
The components of lease expense are as follows:

Years Ended December 31,
(in thousands)20202019
Operating lease cost:
Fixed$73,624 $72,714 
Variable8,532 8,333 
Impairment of ROU Asset6,003 27,104 
Total Operating lease cost88,159 108,151 
Sublease income16,437 12,590 
Finance lease cost:
Amortization of right-of-use assets11,536 12,565 
Interest on lease liabilities432 661 
Total Finance lease cost11,968 13,226 

The Company recognized $9.6 million and $66.5 million during the years ended December 31, 2020 and 2019, respectively, in Termination of office leases on the Consolidated Statements of Comprehensive Income related to the abandonment and termination of certain lease premises as part of its ongoing effort to consolidate office space. Termination of office leases consisted of $6.0 million of impairments of ROU assets and lease terminations, $3.0 million of write-offs of leasehold improvements and fixed assets and $0.6 million of dilapidation charges for the year ended December 31, 2020 and $27.1 million of impairments of ROU assets, $37.9 million of write-offs of leasehold improvements and fixed assets, and $1.4 million of dilapidation charges for the year ended December 31, 2019.

Future minimum lease payments under operating and finance leases with non-cancelable lease terms, as of December 31, 2020, are as follows:

(in thousands)Operating LeasesFinance Leases
2021$74,590 $6,774 
202267,979 4,035 
202364,621 1,438 
202435,393 — 
202527,495 — 
2026 and thereafter114,873 — 
Total lease payments$384,951 $12,247 
Less imputed interest(69,611)(560)
Total lease liability$315,340 $11,687 
Leases LeasesThe Company adopted ASU 2016-02 on January 1, 2019, and elected the modified retrospective method of implementation. The standard requires the recognition of ROU assets and lease liabilities for leases, which are defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company has elected the practical expedient which allows for leases with an initial term of 12 months or less to be excluded from recognition on the Consolidated Statements of Financial Condition and for which lease expense is recognized on a straight-line basis over the lease term.
Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. These leases are primarily for corporate office space, datacenters, and technology equipment. The leases have remaining terms of 1 year to 15 years, some of which include options to extend the initial term at the Company's discretion. The lease terms used in calculating ROU assets and lease liabilities include the options to extend the initial term when the Company is reasonably certain of exercising the options. The Company's lease agreements do not contain any material residual value guarantees, restrictions or covenants. In addition to the base rental costs, the Company’s lease agreements for corporate office space generally provide for rent escalations resulting from increased assessments for operating expenses, real estate taxes and other charges. Payments for such reimbursable expenses are considered variable and are recognized as variable lease costs in the period in which the obligation for those payments was incurred.

The Company also subleases certain office space and facilities to third parties. The subleases have remaining terms of 1 to 11 years. The Company recognizes amounts received from subleases on a straight-line basis over the term of the sublease within Operations and administrative expense on the Consolidated Statements of Comprehensive Income.

As the implied discount rate for most of the Company's leases is not readily determinable, the Company uses its incremental borrowing rate on its secured borrowings in determining the present value of lease payments.

Lease assets and liabilities are summarized as follows:

(in thousands)Financial Statement LocationDecember 31, 2020December 31, 2019
Operating leases
Operating lease right-of-use assetsOperating lease right-of-use assets$268,864 $314,526 
Operating lease liabilitiesOperating lease liabilities315,340 365,364 
Finance leases
Property and equipment, at costProperty, equipment, and capitalized software, net36,093 37,589 
Accumulated depreciationProperty, equipment, and capitalized software, net(24,585)(24,579)
Finance lease liabilitiesAccounts payable, accrued expenses, and other liabilities11,687 13,371 

Weighted average remaining lease term and discount rate are as follows:

December 31, 2020December 31, 2019
Weighted average remaining lease term
Operating leases6.9 years7.5 years
Finance leases2.0 years1.5 years
Weighted average discount rate
Operating leases5.67 %5.70 %
Finance leases3.13 %3.52 %
The components of lease expense are as follows:

Years Ended December 31,
(in thousands)20202019
Operating lease cost:
Fixed$73,624 $72,714 
Variable8,532 8,333 
Impairment of ROU Asset6,003 27,104 
Total Operating lease cost88,159 108,151 
Sublease income16,437 12,590 
Finance lease cost:
Amortization of right-of-use assets11,536 12,565 
Interest on lease liabilities432 661 
Total Finance lease cost11,968 13,226 

The Company recognized $9.6 million and $66.5 million during the years ended December 31, 2020 and 2019, respectively, in Termination of office leases on the Consolidated Statements of Comprehensive Income related to the abandonment and termination of certain lease premises as part of its ongoing effort to consolidate office space. Termination of office leases consisted of $6.0 million of impairments of ROU assets and lease terminations, $3.0 million of write-offs of leasehold improvements and fixed assets and $0.6 million of dilapidation charges for the year ended December 31, 2020 and $27.1 million of impairments of ROU assets, $37.9 million of write-offs of leasehold improvements and fixed assets, and $1.4 million of dilapidation charges for the year ended December 31, 2019.

Future minimum lease payments under operating and finance leases with non-cancelable lease terms, as of December 31, 2020, are as follows:

(in thousands)Operating LeasesFinance Leases
2021$74,590 $6,774 
202267,979 4,035 
202364,621 1,438 
202435,393 — 
202527,495 — 
2026 and thereafter114,873 — 
Total lease payments$384,951 $12,247 
Less imputed interest(69,611)(560)
Total lease liability$315,340 $11,687