Annual report pursuant to Section 13 and 15(d)

Leases

v3.22.0.1
Leases
12 Months Ended
Dec. 31, 2021
Lessee Disclosure [Abstract]  
Leases
 
21. Leases
The Company’s lease portfolio is comprised primarily of real estate and equipment agreements. Operating leases in which the Company is the lessee are recorded as operating lease ROU assets and operating lease liabilities, included in other assets, net, and payables and other liabilities, respectively, on the Consolidated Statements of Financial Condition as of December 31, 2021 (Successor) and December 31, 2020 (Predecessor). The Company does not currently have any finance leases in which it is the lessee. Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease.
The table below summarizes the Company’s operating lease portfolio (in
thousands):
 
 
  
December 31, 2021
 
  
December 31, 2020
 
 
  
Successor
 
  
Predecessor
 
Right-of-use
assets
  
$
62,528
 
   $ 46,609  
Lease liabilities
  
 
65,518
 
     48,250  
Weighted average remaining lease term (in years)
  
 
6.47
 
     3.61  
Weighted average discount rate
  
 
6.27
     7.42
The table below summarizes the Company’s net operating lease cost (in thousands):
                                 
    
April 1, 2021

to
December 31, 2021
    
January 1, 2021

to

March 31, 2021
   
For the year ended
December 31, 2020
   
For the year ended
December 31, 2019
 
    
Successor
    
Predecessor
 
Operating lease cost
  
$
17,297
 
  
$
5,490
 
  $ 21,734     $ 25,577  
Short-term lease cost
  
 
2,963
 
  
 
1,035
 
    5,167       4,062  
    
 
 
    
 
 
 
 
 
 
   
 
 
 
Total operating and short term lease cost
  
 
20,260
 
  
 
6,525
 
    26,901       29,639  
    
 
 
    
 
 
 
 
 
 
   
 
 
 
Variable lease cost
  
 
3,960
 
  
 
1,808
 
    3,734       1,581  
Sublease income
  
 
(1,252
  
 
(464
    (2,769     (1,685
    
 
 
    
 
 
 
 
 
 
   
 
 
 
Net lease cost
  
$
22,968
 
  
$
7,869
 
  $ 27,866     $ 29,535  
    
 
 
    
 
 
   
 
 
   
 
 
 
The table below summarizes other information related to the Company’s operating leases (in thousands):
                                 
    
April 1, 2021

to
December 31, 2021
    
January 1, 2021

to

March 31, 2021
    
For the year ended
December 31, 2020
    
For the year ended
December 31, 2019
 
    
Successor
    
Predecessor
 
Cash paid for amounts included in the measurement of lease liabilities:
      
 
                          
Operating cash flows from operating leases
  
$
15,644
 
  
$
5,423      $ 24,042      $ 23,877  
Leased assets obtained in exchange for new operating lease liabilities
  
 
31,819
 
  
 
701        7,271        11,111  
The following table presents a maturity analysis of operating leases and a reconciliation of the undiscounted cash flows to lease liabilities as of December 31, 2021 (Successor) (in thousands):

 
2022
  
$
20,468
 
2023
  
 
16,646
 
2024
  
 
11,809
 
2025
  
 
7,410
 
2026
  
 
4,822
 
Thereafter
  
 
25,731
 
    
 
 
 
Total undiscounted lease payments
  
 
86,886
 
Less: amounts representing interest
  
 
(21,368
    
 
 
 
Total lease liabilities
  
$
65,518