Leases
Lessees are required to recognize a right-of-use asset and a lease liability for leases with terms of more than 12 months on the balance sheet. All leases disclosed within this note are classified as operating leases. Recognized right-of-use asset and lease liability are reported within other assets and other liabilities, respectively, in the consolidated balance sheet. Lease expense is reported in other operating costs and expenses in the consolidated statement of income and accounted for on a straight-line basis over the lease term.
To determine the discount rate used to calculate present value of future minimum lease payments, the Company uses its incremental borrowing rate during the lease commencement period in line with the respective lease duration. In certain
cases, the Company has the option to renew the lease. Lease renewal future payments are included in the present value of the future minimum lease payments when the Company determines it is reasonably certain to renew.
The main leases entered into by the Company are for office space used by the Company’s businesses across the world. Additionally, the Company, to a lesser extent, has equipment leases mainly for office equipment. Further information relating to operating lease expense and other operating lease information is as follows:
| | | | | | | | | | | | | |
| | | | For the Year Ended December 31, |
|
| (In thousands) | 2025 | | 2024 |
| Leases: | | | | | |
| Lease cost | | | $ | 54,261 | | | $ | 45,718 | |
| Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows | | | $ | 49,421 | | | $ | 49,441 | |
| Right-of-use assets obtained in exchange for new lease liabilities | | | $ | 74,451 | | | $ | 43,624 | |
| | | | | | | | | | | |
| As of December 31, |
| ($ in thousands) | 2025 | | 2024 |
| Right-of-use assets | $ | 221,480 | | | $ | 180,035 | |
| Lease liabilities | $ | 260,451 | | | $ | 218,397 | |
| Weighted-average remaining lease term | 7.1 years | | 7.2 years |
| Weighted-average discount rate | 5.98 | % | | 5.59 | % |
Contractual maturities of the Company’s future minimum lease payments are as follows:
| | | | | | | | |
| (In thousands) | December 31, 2025 | | | |
| Contractual Maturities: | | | | |
| 2026 | $ | 54,475 | | | | |
| 2027 | 47,249 | | | | |
| 2028 | 45,830 | | | | |
| 2029 | 41,825 | | | | |
| 2030 | 37,008 | | | | |
| Thereafter | 96,197 | | | | |
| Total undiscounted future minimum lease payments | 322,584 | | | | |
| Less: Discount impact | 62,133 | | | | |
| Total lease liability | $ | 260,451 | | | | |
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.