Introduction to Mortgage Servicing Examinations Training - March 2023

Mortgage, LLC Notes to Consolidated Financial Statements (continued) (Dollars in Thousands)

Some leases include options to extend or terminate the lease at the Company’s sole discretion on a lease-by-lease basis, and the Company evaluates whether those options are “reasonably certain” of being exercised considering contractual and economic-based factors. The Company used its periodic incremental borrowing rate, based on the information available at commencement date, to determine the present value of future lease payments.

The components of lease expense for the years ended:

December 31,

2021

2020

Operating Lease Cost: Fixed lease expense (1) ........................................................................................ $ Variable lease expense (2) .................................................................................... Total operating lease cost .................................................................................... $

60,917 $

55,130 10,712 65,842

8,785

69,702 $

(1)

Short term lease expenses are included within this amount, and are immaterial.

(2) Variable lease payments are expensed in the period in which the obligation for those payments is incurred. These variable lease costs are payments that vary in amount beyond commencement date, for reasons other than passage of time. The Company’s variable payments mainly include common area maintenance (CAM), building utilities fees and cafeteria subsidy.

Supplemental cash flow information related to leases for the years ended:

December 31,

2021

2020

Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases ........................................ $ Right-of-use assets obtained in exchange for lease obligations: Operating leases .................................................................................. $

59,588 $

56,965

153,364 $

14,001

Supplemental balance sheet information related to leases for the year ended:

December 31,

2021

2020

Operating Leases: Total lease right-of-use assets ............................................................. $ Total lease liabilities ............................................................................ $ Weighted average lease term .............................................................. Weighted average discount rate ...........................................................

306,884 351,579

$ $

212,275 241,947

6.9 years

6.9 years

3.60 %

3.97 %

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