NOTE 20 – Operating Leases

Our operating leases primarily relate to office space and office equipment with remaining lease terms of 1 to 14 years. At December 31, 2025 and 2024, operating lease right-of-use assets were $788.5 million and $809.2 million, respectively, and lease liabilities were $855.9 million and $867.4 million, respectively.

The table below summarizes our net lease cost for the years ended December 31, 2025 and 2024 (in thousands):

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Operating lease cost

 

$

114,979

 

 

$

111,099

 

Short-term lease cost

 

 

1,864

 

 

 

2,721

 

Variable lease cost

 

 

29,503

 

 

 

28,517

 

Sublease income

 

 

(809

)

 

 

(1,150

)

Net lease cost

 

$

145,537

 

 

$

141,187

 

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 year ended December 31, 2025 (in thousands):

Operating lease cash flows

 

$

109,583

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

$

77,631

 

Weighted average remaining lease term (years)

 

 

12.0

 

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 December 31, 2025, (in thousands, except percentages):

2026

 

$

110,982

 

2027

 

 

111,095

 

2028

 

 

108,711

 

2029

 

 

106,441

 

2030

 

 

101,973

 

Thereafter

 

 

644,938

 

Total undiscounted lease payments

 

 

1,184,140

 

Imputed interest

 

 

(328,241

)

Present value of operating lease liabilities

 

$

855,899

 

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 26, 2025
2023Feb 16, 2024
2022Feb 17, 2023
2021Feb 18, 2022
2020Feb 19, 2021
2019Feb 19, 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.