XML 19 R10.htm IDEA: XBRL DOCUMENT
v3.21.2

Fair Value of Financial Instruments | 9 Months Ended
--- | ---
Sep. 30, 2021
Fair Value Disclosures [Abstract] |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate their value. Cash and Cash Equivalents and Restricted Cash and Cash Equivalents. The carrying amounts approximate their fair value due to the short maturity of these instruments. Restricted Securities Available for Sale. The fair value of U.S. Government and agency securities and corporate bonds is based on quoted market values in active markets. For asset-backed securities, mortgage-backed securities and commercial paper we use model-based valuation techniques for which all significant assumptions are observable in the market. Loans Receivable, net. The fair value is determined by calculating the present value of expected future net cash flows estimated by us utilizing a discount rate comparable with the rate used to calculate the value of our Loans under our non-GAAP floating yield methodology. Revolving Secured Line of Credit. The fair value is determined by calculating the present value of the debt instrument based on current rates for debt with a similar risk profile and maturity. Secured Financing. The fair value of our asset-backed secured financings (“Term ABS”) is determined using quoted market prices; however, these instruments trade in a market with a low trading volume. For our warehouse facilities, the fair values are determined by calculating the present value of each debt instrument based on current rates for debt with similar risk profiles and maturities. Senior Notes. The fair value is determined using quoted market prices in an active market. Mortgage Note. The fair value is determined by calculating the present value of the debt instrument based on current rates for debt with a similar risk profile and maturity. A comparison of the carrying amount and estimated fair value of these financial instruments is as follows:
(In millions) | As of September 30, 2021 |  | As of December 31, 2020
| Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value
Assets |  |  |  |  |  |  |
Cash and cash equivalents | $ | 13.3 |  |  | $ | 13.3 |  |  | $ | 16.0 |  |  | $ | 16.0 |
Restricted cash and cash equivalents | 429.0 |  |  | 429.0 |  |  | 380.2 |  |  | 380.2 |
Restricted securities available for sale | 67.1 |  |  | 67.1 |  |  | 66.1 |  |  | 66.1 |
Loans receivable, net | 6,582.6 |  |  | 6,833.9 |  |  | 6,787.9 |  |  | 7,216.4 |
Liabilities |  |  |  |  |  |  |
Revolving secured line of credit | $ | 72.2 |  |  | $ | 72.2 |  |  | $ | 95.9 |  |  | $ | 95.9 |
Secured financing | 3,733.0 |  |  | 3,783.0 |  |  | 3,711.6 |  |  | 3,793.9 |
Senior notes | 792.0 |  |  | 834.6 |  |  | 790.6 |  |  | 842.0 |
Mortgage note | 9.9 |  |  | 9.9 |  |  | 10.5 |  |  | 10.5 |
Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. We group assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:
Level 1 | Valuation is based upon quoted prices for identical instruments traded in active markets.
Level 2 | Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
Level 3 | Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates or assumptions that market participants would use in pricing the asset or liability.
The following table provides the level of measurement used to determine the fair value for each of our financial instruments measured or disclosed at fair value:
(In millions) | As of September 30, 2021
| Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value
Assets |  |  |  |  |  |  |
Cash and cash equivalents (1) | $ | 13.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 13.3 |
Restricted cash and cash equivalents (1) | 429.0 |  |  | — |  |  | — |  |  | 429.0 |
Restricted securities available for sale (2) | 53.7 |  |  | 13.4 |  |  | — |  |  | 67.1 |
Loans receivable, net (1) | — |  |  | — |  |  | 6,833.9 |  |  | 6,833.9 |
Liabilities |  |  |  |  |  |  |
Revolving secured line of credit (1) | $ | — |  |  | $ | 72.2 |  |  | $ | — |  |  | $ | 72.2 |
Secured financing (1) | — |  |  | 3,783.0 |  |  | — |  |  | 3,783.0 |
Senior notes (1) | 834.6 |  |  | — |  |  | — |  |  | 834.6 |
Mortgage note (1) | — |  |  | 9.9 |  |  | — |  |  | 9.9 |
(In millions) | As of December 31, 2020
| Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value
Assets |  |  |  |  |  |  |
Cash and cash equivalents (1) | $ | 16.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 16.0 |
Restricted cash and cash equivalents (1) | 380.2 |  |  | — |  |  | — |  |  | 380.2 |
Restricted securities available for sale (2) | 52.8 |  |  | 13.3 |  |  | — |  |  | 66.1 |
Loans receivable, net (1) | — |  |  | — |  |  | 7,216.4 |  |  | 7,216.4 |
Liabilities |  |  |  |  |  |  |
Revolving secured line of credit (1) | $ | — |  |  | $ | 95.9 |  |  | $ | — |  |  | $ | 95.9 |
Secured financing (1) | — |  |  | 3,793.9 |  |  | — |  |  | 3,793.9 |
Senior notes (1) | 842.0 |  |  | — |  |  | — |  |  | 842.0 |
Mortgage note (1) | — |  |  | 10.5 |  |  | — |  |  | 10.5 |
(1)Measured at amortized cost with fair value disclosed. (2)Measured at fair value on a recurring basis.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration