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FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Factors used in determining the fair value of our financial assets and liabilities are summarized into three broad
categories:
•Level 1 - quoted prices in active markets for identical securities;
•Level 2 - other significant observable inputs, including quoted prices for similar securities, interest rates,
prepayment spreads, credit risk; and
•Level 3 - significant unobservable inputs, including our own assumptions in determining fair value.
We determined the carrying value of cash, restricted cash, cash equivalents, accounts receivable, trade payables,
accrued liabilities, finance receivables, and short-term borrowings approximate their fair values because of the
nature of their terms and current market rates of these instruments. We believe the carrying value of our variable
rate debt approximates fair value.
We have money market securities, which include restricted cash from collections on finance receivables, recorded
as a component of Cash, restricted cash, and cash equivalents in our Consolidated Balance Sheets, as well as
restricted cash on deposit in reserve accounts, recorded as a component of Other non-current assets in our
Consolidated Balance Sheets. These money market securities consist of highly liquid investments with original
maturities of three months or less and are classified as Level 1.
We have investments consisting of equity securities, available for sale debt securities, and equity method
investments with a fair value election. We calculated the estimated fair value of the equity securities, equity method
investments, and U.S. Treasury debt securities using quoted market prices (Level 1). The fair value of corporate and
municipal debt securities are measured using observable Level 2 market expectations at each measurement date.
See Note 6 – Investments.
We have fixed rate debt primarily consisting of amounts outstanding under our senior notes, non-recourse notes
payable, and real estate mortgages. We calculated the estimated fair value of the senior notes using quoted prices
for the identical liability (Level 1). The fair value of non-recourse notes payable are measured using observable
Level 2 market expectations at each measurement date. The calculated estimated fair values of the fixed rate real
estate mortgages and finance lease liabilities use a discounted cash flow methodology with estimated current
interest rates based on a similar risk profile and duration (Level 2). The fixed cash flows are discounted and
summed to compute the fair value of the debt.
We have derivative instruments consisting of an offsetting set of interest rate caps. The fair value of derivative
assets and liabilities are measured using observable Level 2 market expectations at each measurement date and is
recorded as other current assets, current liabilities and other long-term liabilities in the Consolidated Balance
Sheets.
Nonfinancial assets such as goodwill, franchise value, or other long-lived assets are measured and recorded at fair
value during a business combination or when there is an indicator of impairment. We evaluate our goodwill and
franchise value using a qualitative assessment process. If the qualitative factors determine that it is more likely than
not that the carrying value exceeds the fair value, we would further evaluate for potential impairment using a
quantitative assessment. The quantitative assessment estimates fair values using unobservable (Level 3) inputs by
discounting expected future cash flows of the store for franchise value, or reporting unit for goodwill. The forecasted
cash flows contain inherent uncertainties, including significant estimates and assumptions related to growth rates,
margins, working capital requirements, and cost of capital, for which we utilize certain market participant-based
assumptions we believe to be reasonable. We estimate the value of other long-lived assets that are recorded at fair
value on a non-recurring basis on a market valuation approach. We use prices and other relevant information
generated primarily by recent market transactions involving similar or comparable assets, as well as our historical
experience in divestitures, acquisitions and real estate transactions. Additionally, we may use a cost valuation
approach to value long-lived assets when a market valuation approach is unavailable. Under this approach, we
determine the cost to replace the service capacity of an asset, adjusted for physical and economic obsolescence.
When available, we use valuation inputs from independent valuation experts, such as real estate appraisers and
brokers, to corroborate our estimates of fair value. Real estate appraisers’ and brokers’ valuations are typically
developed using one or more valuation techniques including market, income and replacement cost approaches.
Because these valuations contain unobservable inputs, we classified the measurement of fair value of long-lived
assets as Level 3.
There were no changes to our valuation techniques during the three-month period ended March 31, 2025.
Below are our assets and liabilities that are measured at fair value:
As of March 31, 2025
As of December 31, 2024
($ in millions)
Carrying
Value
Level 1
Level 2
Level 3
Carrying
Value
Level 1
Level 2
Level 3
Recorded at fair value
Marketable securities
Restricted cash - collections
$117.0
$117.0
$—
$—
$97.6
$97.6
$—
$—
Restricted cash - reserve
33.7
33.7
—
—
30.7
30.7
—
—
Total money market funds
$150.7
$150.7
$—
$—
$128.3
$128.3
$—
$—
Equity securities
$2.1
$2.1
$—
$—
$2.2
$2.2
$—
$—
U.S. Treasury
$20.0
$20.0
$—
$—
$20.2
$20.2
$—
$—
Municipal debt
10.1
—
10.1
—
10.0
—
10.0
—
Corporate debt
21.4
—
21.4
—
20.9
—
20.9
—
Total debt securities
$51.5
$20.0
$31.5
$—
$51.1
$20.2
$30.9
$—
Equity Method Investment
PINE.L
$93.4
$93.4
$—
$—
$100.0
$100.0
$—
$—
Derivatives
Derivative assets
$3.2
$—
$3.2
$—
$4.5
$—
$4.5
$—
Derivative liabilities
3.2
—
3.2
—
4.5
—
4.5
—
Recorded at historical value
Fixed rate debt 1
4.625% Senior notes due 2027
$400.0
$386.0
$—
$—
$400.0
$385.0
$—
$—
4.375% Senior notes due 2031
550.0
496.4
—
—
550.0
500.5
—
—
3.875% Senior notes due 2029
800.0
728.0
—
—
800.0
732.0
—
—
Non-recourse notes payable
2,363.7
—
2,374.6
—
2,109.3
—
2,115.7
—
Real estate mortgages and other debt
690.2
—
709.3
—
698.0
—
701.3
—
1Excluding unamortized debt issuance costs