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Debt | 9 Months Ended
--- | ---
Sep. 30, 2024
Debt Disclosure [Abstract] |
Debt | Debt
|  |  |  |  |  | September 30, 2024 |  | December 31, 2023
|  | Maturity Date |  | Interest Rate |  | Amount |  | Amount
Credit Facility |  |  |  |  |  |  |  |
Senior unsecured revolving loan facility |  | December 2026 |  | Variable |  | $ | — |  |  | $ | — |
Term Loan |  |  |  |  |  |  |  |
Senior unsecured term loan facility |  | December 2026 |  | Variable |  | 634.5 |  |  | 634.5 |
Unsecured Senior Notes |  |  |  |  |  |  |  |
Senior notes due 2024 |  | December 2024 |  | 5.500 | % |  | 183.5 |  |  | 575.0 |
Senior notes due 2025 |  | May 2025 |  | 4.125 | % |  | 211.1 |  |  | 600.0 |
Senior notes due 2026 |  | December 2026 |  | 2.670 | % |  | 1,000.0 |  |  | 1,000.0 |
Senior notes due 2028 |  | April 2028 |  | 4.250 | % |  | 600.0 |  |  | 600.0 |
Senior notes due 2028 |  | December 2028 |  | 3.276 | % |  | 500.0 |  |  | 500.0 |
Senior notes due 2029 |  | February 2029 |  | 3.250 | % |  | 700.0 |  |  | 700.0 |
Senior notes due 2030 |  | March 2030 |  | 5.100 | % |  | 600.0 |  |  | — |
Senior notes due 2031 |  | December 2031 |  | 3.569 | % |  | 1,000.0 |  |  | 1,000.0 |
Senior notes due 2034 |  | August 2034 |  | 5.550 | % |  | 600.0 |  |  | — |
Total unsecured senior notes |  |  |  |  |  | 5,394.6 |  |  | 4,975.0 |
Receivable financing liability |  |  |  |  |  | 28.0 |  |  | 56.9 |
Other long-term obligations |  |  |  |  |  | 8.4 |  |  | 6.9 |
Unamortized debt issuance costs and discount |  |  |  |  |  | (34.8) |  |  | (28.4) |
Current maturities of long-term debt |  |  |  |  |  | (423.2) |  |  | (613.1) |
Total long-term debt |  |  |  |  |  | $ | 5,607.5 |  |  | $ | 5,031.8 |
As of September 30, 2024, the Company is in compliance with the covenants under its credit agreements and indentures. Credit Facility The Company has a variable rate senior unsecured revolving loan facility (the “Revolving Loan Facility”) from which it may draw tranches denominated in US dollars, British pounds or Euros. The interest rate is based on Secured Overnight Financing Rate (“SOFR”) plus a spread adjustment and a margin based on the Company’s senior unsecured rating. The Revolving Loan Facility is used by the Company for borrowings, issuances of letters of credit and floorplan financing. As of September 30, 2024, the Company could have borrowed up to an additional $1.3 billion under the Revolving Loan Facility. As of September 30, 2024, the Revolving Loan Facility had $346 million reserved for the floorplan sub-facility. Term Loan The senior unsecured term loan facility (the “Term Loan Facility”) has a variable interest rate. The interest rate is based on SOFR plus a spread adjustment and a margin based on the Company’s senior unsecured rating. No mandatory payments are required on the remaining principal amount until its maturity date on December 1, 2026. Unsecured Senior Notes The unsecured senior notes have a fixed interest rate, which is paid semi-annually. Receivable Financing The receivable financing liability relates to certain accounts receivable transferred to third-party financial institutions that did not qualify as a sale under the terms of the agreements. While the terms of such agreements are on a nonrecourse basis, the transfers of accounts receivable could not achieve certain criteria that would allow derecognition of the accounts receivable. The proceeds from these arrangements are recognized as a liability and the associated accounts receivable remains on the Consolidated Balance Sheet until the liability is settled. The Company did not execute any transfers under these agreements during the nine months ended September 30, 2024. Debt Issuances and Extinguishments On August 22, 2024, the Company completed the issuance of $600 million aggregate principal amount of 5.100% Senior Notes due 2030 (the “2030 Notes”) at 99.889% of par and $600 million aggregate principal amount of 5.550% Senior Notes due 2034 (the “2034 Notes”) at 99.742% of par (collectively, the “Notes”). Interest on the 2030 Notes is payable semi-annually on March 1 and September 1 of each year. Interest on the 2034 Notes is payable semi-annually on February 22 and August 22 of each year. The net proceeds from the Notes issuance were used to fund the settlement of the concurrent cash tender offer and the payment of related accrued and unpaid interest, fees and expenses and general corporate purposes, including the redemption of the remaining 5.500% Senior Notes due 2024 and the repayment at maturity of the remaining 4.125% Senior Notes due 2025. On August 22, 2024, concurrent with the Notes issuance, the Company completed a cash tender offer for $391 million and $389 million of the outstanding aggregate principal amounts under its 5.500% Senior Notes due 2024 and the 4.125% Senior Notes due 2025, respectively, plus accrued and unpaid interest, fees and expenses. In connection with the cash tender offer, the Company recognized an immaterial net gain on extinguishment of debt, which is presented within Other income (expense), net on the Consolidated Statements of Operations. Fair Value The fair values of the unsecured senior notes were estimated using quoted market prices for identical liabilities that are traded in over-the-counter secondary markets. The fair value of the Term Loan Facility was estimated using dealer quotes and other market observable inputs for comparable liabilities. The unsecured senior notes and Term Loan Facility were classified as Level 2 within the fair value hierarchy. The carrying value of the Revolving Loan Facility approximates fair value. The approximate fair values and related carrying values of the Company’s long-term debt, including current maturities and excluding unamortized discount and unamortized debt issuance costs, were as follows:
|  | September 30, 2024 |  | December 31, 2023
Fair value |  | $ | 5,895.2 |  |  | $ | 5,348.2 |
Carrying value |  | $ | 6,065.5 |  |  | $ | 5,673.3 |

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