Fair Values (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of assets and liabilities recorded at fair value on a recurring and non-recurring basis

The Company did not have any assets or liabilities recorded at fair value as of September 30, 2022. The following fair value hierarchy table summarizes the Company’s assets and liabilities recorded at fair value on a recurring basis by the above categories as of December 31, 2021 ($ in thousands):

Fair Value Using

Quoted

market

Significant

prices in

other

Significant

active

observable

unobservable

markets

inputs

Total

(Level 1)

(Level 2)

(Level 3)

As of December 31, 2021

Recurring basis:

Derivative liabilities⁽¹⁾

8,395

—

8,395

—

Available-for-sale securities⁽¹⁾

28,092

—

28,092

(1)

The fair value of the Company’s derivatives are based upon widely accepted valuation techniques utilized by a third-party specialist using observable inputs such as interest rates and contractual cash flow and are classified as Level 2. The fair value of the Company’s available-for-sale securities (refer to Note 7) are based upon unadjusted third-party broker quotes and are classified as Level 3.

Summary of changes in Level 3 available-for-sale securities reported at fair value

The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company’s consolidated balance sheets for the nine months ended September 30, 2022 and 2021 ($ in thousands):


	2022		2021
Beginning balance	$	28,092	$	25,274
Purchases		—		3,375
Sales and Repayments		(26,752)		(201)
Realized gain recorded in other income		2,897		—
Unrealized losses recorded in other comprehensive income		(4,237)		(913)
Ending balance	$	—	$	27,535

Schedule of carrying value and fair value of financial instruments


	As of September 30, 2022				As of December 31, 2021
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets
Net investment in leases (refer to Note 5)⁽¹⁾	$	—	$	—	$	43	$	43
Loans receivable and other lending investments, net⁽¹⁾		177		177		333		345
Loans receivable held for sale⁽¹⁾		—		—		43		43
Cash and cash equivalents⁽²⁾		1,336		1,336		340		340
Restricted cash⁽²⁾		5		5		54		54

Liabilities
Debt obligations, net⁽¹⁾⁽³⁾
Level 1		1,582		1,583		2,473		2,799
Level 3		99		99		99		104
Total debt obligations, net		1,681		1,682		2,572		2,903

(1)	The fair value of the Company’s net investment in leases, loans receivable and other lending investments, net, loans receivable held for sale and certain debt obligations are classified as Level 3 within the fair value hierarchy.

(2)

The Company determined the carrying values of its cash and cash equivalents and restricted cash approximated their fair values. Restricted cash is recorded in “Deferred expenses and other assets, net” on the Company’s balance sheet. The fair value of the Company’s cash and cash equivalents and restricted cash are classified as Level 1 within the fair value hierarchy.

(3)	As of September 30, 2022 and December 31, 2021, the fair value of the Company’s unsecured notes is classified as Level 1 in the fair value hierarchy. As of December 31, 2021, the fair value of the Company’s 3.125% Senior Convertible Notes was $527.5 million (refer to Note 10).

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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