Our operating leases primarily relate to office space and office equipment with remaining lease terms of 1 to 14 years. At March 31, 2026 and December 31, 2025, operating lease right-of-use assets were $780.4 million and $788.5 million, respectively, and lease liabilities were $849.1 million and $855.9 million, respectively.

The table below summarizes our net lease cost for the three months ended March 31, 2026 and 2025 (in thousands):


	Three Months Ended March 31,
	2026			2025
Operating lease cost	$	29,429		$	27,550
Short-term lease cost		378			351
Variable lease cost		7,204			7,219
Sublease income		(249	)		(79	)
Net lease cost	$	36,762		$	35,041

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 three months ended March 31, 2026 (in thousands):


Operating lease cash flows	$	28,892
Right-of-use assets obtained in exchange for new operating lease liabilities	$	6,089
Weighted-average remaining lease term (years)		12.0
Weighted-average discount rate		5.11	%

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 March 31, 2026, (in thousands, except percentages).


Remainder of 2026	$	82,128
2027		111,536
2028		109,318
2029		107,484
2030		103,156
Thereafter		660,599
Total undiscounted lease payments		1,174,221
Imputed interest		(325,166	)
Present value of operating lease liabilities	$	849,055

As of March 31, 2026, the Company had a total lease portfolio of 4 aircraft engines with a net book value of $16.7 million. The aircraft engines were purchased by the Company, through its subsidiaries, during 2024. See Note 25 for additional information.

There were no sales during the three months ended March 31, 2026. During the three months ended March 31, 2025, the Company sold 1 aircraft engine with a net book value of $11.0 million and recognized a gain from the sale of $3.6 million, which is included in principal transactions in the consolidated statements of operations.

Lease income, included in other income in the consolidated statements of operations, was $0.7 million and $3.9 million, respectively, for the three months ended March 31, 2026 and 2025.