LEASES
The following table presents the balances related to our leases on our Consolidated Statements of Financial Condition. See Note 2 for a discussion of our accounting policies related to leases.
| | | | | | | | | | | | | | |
| | September 30, |
| $ in millions | | 2025 | | 2024 |
ROU lease assets (included in “Other assets”) | | $ | 583 | | | $ | 568 | |
Lease liabilities (included in “Other payables”) | | $ | 538 | | | $ | 533 | |
The weighted-average remaining lease term and discount rate for our leases is presented in the following table.
| | | | | | | | | | | | | | |
| | September 30, |
| | 2025 | | 2024 |
| Weighted-average remaining lease term | | 5.8 years | | 6.3 years |
| Weighted-average discount rate | | 4.85 | % | | 4.87 | % |
Lease expense
The following table details the components of lease expense, which is included in “Occupancy and equipment” expense on our Consolidated Statements of Income and Comprehensive Income.
| | | | | | | | | | | | | | | | | | | | |
| | Year ended September 30, |
| $ in millions | | 2025 | | 2024 | | 2023 |
| Lease costs | | $ | 148 | | | $ | 142 | | | $ | 133 | |
| Variable lease costs | | $ | 28 | | | $ | 37 | | | $ | 31 | |
Variable lease costs in the preceding table included payments required under lease arrangements for common area maintenance charges and other variable costs that are not reflected in the measurement of ROU lease assets and lease liabilities.
Lease liabilities
The maturities by fiscal year of our lease liabilities as of September 30, 2025 are presented in the following table.
| | | | | | | | |
| Fiscal year ended September 30, | | $ in millions |
| 2026 | | $ | 133 | |
| 2027 | | 118 | |
| 2028 | | 103 | |
| 2029 | | 86 | |
| 2030 | | 73 | |
| Thereafter | | 111 | |
| Gross lease payments | | 624 | |
| Less: interest | | (86) | |
| Present value of lease liabilities | | $ | 538 | |
Lease liabilities as of September 30, 2025 excluded $55 million of minimum lease payments related to lease arrangements that were legally binding but had not yet commenced. These leases are estimated to commence in fiscal 2026 with lease terms ranging from 3 to 11 years.
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.