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LEASES | 6 Months Ended
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Jun. 30, 2024
Leases [Abstract] |
LEASES | LEASES Rithm Capital, through its wholly-owned subsidiaries, has leases on office space expiring through 2033. Rent expense, net of sublease income for the three months ended June 30, 2024 and 2023 totaled $13.2 million and $10.9 million, respectively, and for the six months ended June 30, 2024 and 2023 totaled $25.7 million and $23.1 million, respectively. The Company has leases that include renewal options and escalation clauses. The terms of the leases do not impose any financial restrictions or covenants. Operating lease right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. In addition, the Company has finance leases for computer hardware. As of June 30, 2024, the Company has pledged collateral related to its lease obligations of $7.0 million, which is presented as part of restricted cash on the Consolidated Balance Sheets. Operating lease ROU assets and lease liabilities are presented as part of other assets and accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheets (Note 12). The table below summarizes the future commitments under the non-cancelable leases:
Year Ending |  | Operating Leases |  | Finance Leases |  | Total
July 1 through December 31, 2024 |  | $ | 25,523 |  |  | $ | — |  |  | $ | 25,523 |
2025 |  | 41,511 |  |  | 228 |  |  | 41,739 |
2026 |  | 35,451 |  |  | 228 |  |  | 35,679 |
2027 |  | 36,452 |  |  | 228 |  |  | 36,680 |
2028 |  | 26,800 |  |  | — |  |  | 26,800 |
2029 and thereafter |  | 40,189 |  |  | — |  |  | 40,189 |
Total remaining undiscounted lease payments |  | 205,926 |  |  | 684 |  |  | 206,610 |
Less: imputed interest |  | 31,428 |  |  | 76 |  |  | 31,504 |
Total remaining discounted lease payments |  | $ | 174,498 |  |  | $ | 608 |  |  | $ | 175,106 |
The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $20.9 million due in the future periods. Other information related to leases is summarized below:
| June 30, 2024 |  | December 31, 2023
Weighted average remaining lease term (years) |  |  |
Operating leases | 5.3 |  | 5.8
Finance leases | 3.0 |  | 3.5
Weighted average discount rate |  |  |
Operating leases | 6.5 | % |  | 6.2 | %
Finance leases | 7.9 | % |  | 7.9 | %
|  | Six Months Ended June 30,
Supplemental Information |  | 2024 |  | 2023 |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows - operating leases |  | $ | 17,551 |  |  | $ | 15,752 |  |  |
Operating cash flows - finance leases |  | 4 |  |  | — |  |  |
Finance cash flows - finance leases |  | 224 |  |  | — |  |  |
Supplemental non-cash information on lease liabilities arising from obtaining ROU assets: |  |  |  |  |  |
ROU assets obtained in exchange for new operating lease liabilities |  | 14,846 |  |  | 1 |  |  |
LEASES | LEASES Rithm Capital, through its wholly-owned subsidiaries, has leases on office space expiring through 2033. Rent expense, net of sublease income for the three months ended June 30, 2024 and 2023 totaled $13.2 million and $10.9 million, respectively, and for the six months ended June 30, 2024 and 2023 totaled $25.7 million and $23.1 million, respectively. The Company has leases that include renewal options and escalation clauses. The terms of the leases do not impose any financial restrictions or covenants. Operating lease right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. In addition, the Company has finance leases for computer hardware. As of June 30, 2024, the Company has pledged collateral related to its lease obligations of $7.0 million, which is presented as part of restricted cash on the Consolidated Balance Sheets. Operating lease ROU assets and lease liabilities are presented as part of other assets and accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheets (Note 12). The table below summarizes the future commitments under the non-cancelable leases:
Year Ending |  | Operating Leases |  | Finance Leases |  | Total
July 1 through December 31, 2024 |  | $ | 25,523 |  |  | $ | — |  |  | $ | 25,523 |
2025 |  | 41,511 |  |  | 228 |  |  | 41,739 |
2026 |  | 35,451 |  |  | 228 |  |  | 35,679 |
2027 |  | 36,452 |  |  | 228 |  |  | 36,680 |
2028 |  | 26,800 |  |  | — |  |  | 26,800 |
2029 and thereafter |  | 40,189 |  |  | — |  |  | 40,189 |
Total remaining undiscounted lease payments |  | 205,926 |  |  | 684 |  |  | 206,610 |
Less: imputed interest |  | 31,428 |  |  | 76 |  |  | 31,504 |
Total remaining discounted lease payments |  | $ | 174,498 |  |  | $ | 608 |  |  | $ | 175,106 |
The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $20.9 million due in the future periods. Other information related to leases is summarized below:
| June 30, 2024 |  | December 31, 2023
Weighted average remaining lease term (years) |  |  |
Operating leases | 5.3 |  | 5.8
Finance leases | 3.0 |  | 3.5
Weighted average discount rate |  |  |
Operating leases | 6.5 | % |  | 6.2 | %
Finance leases | 7.9 | % |  | 7.9 | %
|  | Six Months Ended June 30,
Supplemental Information |  | 2024 |  | 2023 |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows - operating leases |  | $ | 17,551 |  |  | $ | 15,752 |  |  |
Operating cash flows - finance leases |  | 4 |  |  | — |  |  |
Finance cash flows - finance leases |  | 224 |  |  | — |  |  |
Supplemental non-cash information on lease liabilities arising from obtaining ROU assets: |  |  |  |  |  |
ROU assets obtained in exchange for new operating lease liabilities |  | 14,846 |  |  | 1 |  |  |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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