Leases

12 Months Ended

Dec. 31, 2024

LEASES

The Company leases office space and equipment under non-cancelable lease agreements, which expire on various dates through 2039. Substantially all of these arrangements are operating leases relating to office space. Certain leases have renewal options that can be exercised at the discretion of the Company. The Company only includes renewal options in the lease term when it is reasonably certain to exercise the option. The Company does not record leases with a lease term of 12 months or less on the consolidated statements of financial condition; lease expense for these leases is recognized over the lease term on a straight-line basis.

The operating lease liabilities at commencement reflect total lease payments discounted using an incremental borrowing rate (on a collateralized basis) based on the lease term (the “Discount”), as an implicit rate was not readily

determinable for any of the Company’s operating leases. The Company determines its Discount with consideration of the Company’s public debt issuances as well as publicly available data for instruments with similar characteristics. For office space and equipment leases, the Company accounts for the lease and non-lease components as a single lease component.

In addition to rent payments, operating leases for office space generally contain payments for real estate taxes, insurance costs, common area maintenance, and utilities that are not fixed. The Company accounts for these costs as variable payments and does not include them in the lease component. There are certain office leases outside of the U.S. that have annual rent increases based on a year-over-year change in an index that are also accounted for as variable payments and are excluded from the lease component.

The following table summarizes the components of operating lease expense reflected on the accompanying consolidated statements of operations for the years ended December 31, 2024, 2023 and 2022:


	Year Ended December 31,
	2024		2023		2022
Operating lease cost	$	87,257	$	80,257	$	78,482
Variable lease cost	22,632		23,521		21,086
Sublease income	(950)		(934)		(4,969)
Total	$	108,939	$	102,844	$	94,599

The following table summarizes the supplemental cash flow information and certain other information related to operating leases for the years ended December 31, 2024 and 2023:


	Year Ended December 31,
	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	89,677		$	81,737

Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$	101,787		$	35,282

Weighted average remaining lease term	9 years			8 years

Weighted average discount rate	4.3		%	3.9		%

Maturities of the operating lease liabilities outstanding at December 31, 2024 for each of the years in the period ending December 31, 2029 and thereafter are set forth in the table below.


Year Ending December 31,
2025	$	77,455
2026	70,680
2027	71,529
2028	71,980
2029	68,409
Thereafter	263,263
Total lease payments	623,316
Less - Discount	117,833
Operating lease liabilities	$	505,483

In addition to the table above, the Company signed a lease agreement for additional office facilities, with lease commencement anticipated in 2027. The lease term is 10 years and has undiscounted future lease payments of approximately $91,000.