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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The Company did not have any financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2023. The Company’s financial assets and liabilities as of June 30, 2022 and December 31, 2022 that are measured at fair value on a recurring basis are as follows (in thousands):


	Estimated Fair Value
	Fair Value Measurements Using
	Level 1		Level 2		Level 3
Financial liabilities (1):
Contingent consideration as of June 30, 2022	$	—	$	—	$	46,560
Contingent consideration as of December 31, 2022	—		—		—

(1)Under the AFF purchase agreement, the seller parties had the right to receive up to $50 million of additional consideration if AFF achieved certain adjusted EBITDA targets for the first half of 2023. AFF did not achieve the threshold adjusted EBITDA target for the first half of 2023 and, therefore, the $50 million of additional consideration was not earned by the seller parties. As of June 30, 2023, there was no remaining contingent consideration available to the seller parties. The contingent consideration related to the AFF acquisition is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheet as of June 30, 2022

Schedule of Fair Value, Changes in Assets and Liabilities Measured on Recurring Basis Level 3 Fair Value Measurement

The changes in financial assets and liabilities that are measured and recorded at fair value on a recurring basis using Level 3 fair value measurements for the three and six months ended June 30, 2023 and June 30, 2022 are as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Contingent consideration at beginning of the period	$	—	$	112,119	$	—	$	109,549
Change in fair value (1)	—		(65,559)		—		(62,989)
Contingent consideration at end of the period	$	—	$	46,560	$	—	$	46,560

(1)The Company recognized a gain of $65.6 million and $63.0 million during the three and six months ended June 30, 2022, respectively, as a result of the change in fair value of the contingent consideration, which is included in gain on revaluation of contingent acquisition consideration in the accompanying consolidated statements of income.

Schedule of Fair Value by Balance Sheet Grouping

The Company’s financial assets and liabilities as of June 30, 2023, June 30, 2022 and December 31, 2022 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands):


	Carrying Value		Estimated Fair Value
	June 30,		June 30,		Fair Value Measurements Using
	2023		2023		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	104,598	$	104,598	$	104,598	$	—	$	—
Accounts receivable, net	63,337		63,337		—		—		63,337
Pawn loans	426,165		426,165		—		—		426,165
Finance receivables, net (1)	110,555		225,195		—		—		225,195
	$	704,655	$	819,295	$	104,598	$	—	$	714,697

Financial liabilities:
Revolving unsecured credit facility	$	376,000	$	376,000	$	—	$	376,000	$	—
Senior unsecured notes (outstanding principal)	1,050,000		941,000		—		941,000		—
	$	1,426,000	$	1,317,000	$	—	$	1,317,000	$	—

(1)Finance receivables, gross as of June 30, 2023 was $216.0 million. See Note 5.


	Carrying Value		Estimated Fair Value
	June 30,		June 30,		Fair Value Measurements Using
	2022		2022		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	110,414	$	110,414	$	110,414	$	—	$	—
Accounts receivable, net	55,924		55,924		—		—		55,924
Pawn loans	385,708		385,708		—		—		385,708
Finance receivables, net (1)	125,619		196,210		—		—		196,210
	$	677,665	$	748,256	$	110,414	$	—	$	637,842

Financial liabilities:
Revolving unsecured credit facilities	$	274,000	$	274,000	$	—	$	274,000	$	—
Senior unsecured notes (outstanding principal)	1,050,000		900,000		—		900,000		—
	$	1,324,000	$	1,174,000	$	—	$	1,174,000	$	—

(1)Finance receivables, gross as of June 30, 2022 was $190.3 million. See Note 5.


	Carrying Value		Estimated Fair Value
	December 31,		December 31,		Fair Value Measurements Using
	2022		2022		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	117,330	$	117,330	$	117,330	$	—	$	—
Accounts receivable, net	57,792		57,792		—		—		57,792
Pawn loans	390,617		390,617		—		—		390,617
Finance receivables, net (1)	103,494		201,895		—		—		201,895
	$	669,233	$	767,634	$	117,330	$	—	$	650,304

Financial liabilities:
Revolving unsecured credit facilities	$	339,000	$	339,000	$	—	$	339,000	$	—
Senior unsecured notes (outstanding principal)	1,050,000		932,000		—		932,000		—
	$	1,389,000	$	1,271,000	$	—	$	1,271,000	$	—