Company: NLY-PF
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001628280-25-005451
Chunk: 180

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 16
Chunk 180
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 various business processes related to its operations, including mortgage loan servicers and sub-servicers. The Company’s vendor management policy establishes procedures for engaging, onboarding and monitoring the performance of third party vendors. For mortgage loan servicers and sub-servicers, these procedures include assessing a vendor’s financial health as well as oversight of its compliance with applicable laws and regulations, cybersecurity and business continuity programs and security of personal information.

21. LEASE COMMITMENTS AND CONTINGENCIES The Company’s operating leases are primarily comprised of corporate office leases with remaining lease terms of approximately three years and seventeen years. The corporate office leases include options to extend for up to five years, however the extension terms were not included in the operating lease liability calculation. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The lease cost for the year ended December 31, 2024 was $3.3 million.

F-38

ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIESFinancial Statements

Supplemental information related to leases as of and for the year ended December 31, 2024 was as follows:Operating LeasesClassificationDecember 31, 2024Assets(dollars in thousands)Operating lease right-of-use assetsOther assets$27,906 LiabilitiesOperating lease liabilities (1)Other liabilities$28,638 Lease term and discount rateWeighted average remaining lease term17.1 yearsWeighted average discount rate (1)7.0%Cash paid for amounts included in the measurement of lease liabilities   Operating cash flows from operating leases$4,107 (1) For the Company’s leases that do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at adoption date in determining the present value of lease payments.The following table provides details related to maturities of lease liabilities:Maturity of Lease LiabilitiesYears ended December 31,(dollars in thousands)2025$3,149 2026261 20272,503 20283,854 Later years55,872 Total lease payments$65,639 Less: imputed interest37,001 Present value of lease liabilities$28,638 ContingenciesFrom time to time, the Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will