12. Leases

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 December 31, 2025, the weighted-average remaining lease term on these leases is approximately 7.0 years and the weighted-average discount rate used to measure the lease liabilities is approximately 4.91%. For the year ended December 31, 2025, right-of-use assets obtained under new operating leases were $63 million. The Company’s lease agreements do not contain any residual value guarantees, restrictions, or covenants.

The table below presents balances reported in the consolidated statements of financial condition related to the Company’s leases for the periods indicated.

 

 

 

December 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

Right-of-use assets 1

 

$

 

137

 

 

$

 

102

 

Lease liabilities 1

 

$

 

152

 

 

$

 

121

 

 

(1)
Right-of-use assets are reported in “Other assets” and lease liabilities are reported in “Accounts payable, accrued expenses and other liabilities” in the consolidated statements of financial condition.

The table below presents balances reported in the consolidated statements of comprehensive income related to the Company’s leases for the periods indicated.

 

 

 

Year-Ended December 31,

 

 

2025

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

Operating lease cost

 

$

37

 

$

34

 

$

35

Variable lease cost

 

 

7

 

 

6

 

 

6

Total lease cost

 

$

44

 

$

40

 

$

41

 

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.

 

 

 

December 31, 2025

 

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

2026

 

$

 

32

 

2027

 

 

 

30

 

2028

 

 

 

25

 

2029

 

 

 

24

 

2030

 

 

 

18

 

Thereafter

 

 

 

55

 

Total undiscounted operating lease payments

 

 

 

184

 

Less: imputed interest

 

 

 

(32

)

Present value of operating lease liabilities

 

$

 

152

 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 27, 2025
2023Feb 27, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Mar 1, 2021
2019Feb 28, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.