Guild Holdings Company Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

LEASES

LEASES

12 Months Ended

Dec. 31, 2022

The Company leases office space under operating lease agreements that have initial terms ranging from 1 to 12 years. Some leases include one or more options to exercise renewal terms, generally at the Company's sole discretion, that can extend the lease term. Certain leases contain rights to terminate whereby those termination options are held by either the Company, the lessor, or both parties. These options to extend or terminate a lease are included in the lease term only when it is reasonably certain that the Company will exercise that option. The Company’s leases generally do not contain any material restrictive covenants.

All leases recognized in the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021 are classified as operating leases, which include leases related to the asset classes reflected in the table below. ROU assets are included in other assets in the Company's Consolidated Balance Sheets.


	2022		2021
Office leases	$	74,603	$	86,231
Equipment	57		253
Total right-of-use assets	$	74,660	$	86,484

Office leases	$	85,892	$	97,551
Equipment	85		285
Total lease liability	$	85,977	$	97,836

The following table summarizes the components of the Company's gross operating lease costs incurred during the years ended December 31, 2022 and 2021:


	2022		2021
Operating lease cost	$	26,085	$	25,311
Short-term lease cost	3,374		2,334
Variable lease cost	4,664		3,821
Total lease cost	$	34,123	$	31,466

The weighted-average lease term and discount rate used are as follows:


	December 31,
	2022		2021
Weighted-average lease term (years)	5.7		6.1
Weighted-average discount rate	4.0	%	3.8	%

The following table summarizes supplemental cash flow information related to operating leases:


	2022		2021
Cash paid for operating leases	$	15,972	$	21,705
Right-of-use assets obtained in exchange for new operating lease obligations	$	16,008	$	18,839

Minimum future commitments by year for the Company's long-term operating leases as of December 31, 2022 are presented in the table below. Such commitments are reflected at undiscounted values and are reconciled to the discounted present value recognized in the balance sheet as follows:


	Amount
2023	$	23,646
2024	18,021
2025	13,506
2026	10,135
2027	8,538
Thereafter	22,250
Total future minimum lease payments	$	96,096
Less: imputed interest	(10,119)
Total lease liabilities	$	85,977