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Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended
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Jun. 30, 2023
Fair Value Disclosures [Abstract] |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands):
|  | As of June 30, 2023 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 123,238 |  |  | $ | — |  |  | $ | — |  |  | $ | 123,238 |
CFE assets: |  |  |  |  |  |  |  |  |  |  |  |
Finance receivables |  |  | — |  |  |  | — |  |  |  | 430,022 |  |  |  | 430,022 |
Finance receivables at fair value |  |  | — |  |  |  | — |  |  |  | 37,675 |  |  |  | 37,675 |
Beneficial interests in securitizations |  |  | — |  |  |  | 6,553 |  |  |  | — |  |  |  | 6,553 |
Total financial assets |  | $ | 123,238 |  |  | $ | 6,553 |  |  | $ | 467,697 |  |  | $ | 597,488 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |
CFE liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Securitization debt of consolidated VIEs |  |  | — |  |  |  | 416,975 |  |  |  | — |  |  |  | 416,975 |
Total financial liabilities |  | $ | — |  |  | $ | 416,975 |  |  | $ | — |  |  | $ | 416,975 |
|  | As of December 31, 2022 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 182,687 |  |  | $ | — |  |  | $ | — |  |  | $ | 182,687 |
CFE assets: |  |  |  |  |  |  |  |  |  |  |  |
Finance receivables |  |  | — |  |  |  | — |  |  |  | 77,904 |  |  |  | 77,904 |
Finance receivables at fair value |  |  | — |  |  |  | — |  |  |  | 75,270 |  |  |  | 75,270 |
Beneficial interests in securitizations |  |  | — |  |  |  | 20,592 |  |  |  | — |  |  |  | 20,592 |
Total financial assets |  | $ | 182,687 |  |  | $ | 20,592 |  |  | $ | 153,174 |  |  | $ | 356,453 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |
CFE liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Securitization debt of consolidated VIEs |  |  | — |  |  |  | 79,829 |  |  |  | — |  |  |  | 79,829 |
Total financial liabilities |  | $ | — |  |  | $ | 79,829 |  |  | $ | — |  |  | $ | 79,829 |
Schedule of Reconciliation of Financial Assets Measured at Fair Value on a Recurring Basis Using Level 3 Inputs | The following table presents a reconciliation of the financial assets, which were measured at fair value on a recurring basis using Level 3 inputs (in thousands):
|  | Finance Receivables of Consolidated CFEs |  |  | Finance Receivables at Fair Value |
Fair value as of January 1, 2023 |  | $ | 77,904 |  |  | $ | 75,270 |
Reclassification of finance receivables held for sale to finance receivables at fair value, net |  |  | 248,081 |  |  |  | — |
Transfer within Level 3 categories |  |  | 25,718 |  |  |  | (25,718 | )
Consolidation of VIEs |  |  | 180,706 |  |  |  | — |
Losses included in other income |  |  | (37,890 | ) |  |  | (1,396 | )
Issuances, net of discount |  |  | — |  |  |  | 3,392 |
Paydowns |  |  | (77,007 | ) |  |  | (14,883 | )
Other |  |  | 12,510 |  |  |  | 1,010 |
Fair value as of June 30, 2023 |  | $ | 430,022 |  |  | $ | 37,675 |
|  | Finance Receivables of Consolidated CFEs |  |  | Finance Receivables at Fair Value |  |  | Securitization Debt of Consolidated CFEs |
Fair value as of January 1, 2022 |  | $ | — |  |  | $ | — |  |  | $ | — |
Acquired in business combination |  |  | 262,644 |  |  |  | 34,283 |  |  |  | 275,394 |
Transfer out of Level 3 |  |  | — |  |  |  | — |  |  |  | (275,394 | )
Transfer within Level 3 categories |  |  | (10,904 | ) |  |  | 10,904 |  |  |  | — |
Losses included in other income |  |  | (18,279 | ) |  |  | (10,163 | ) |  |  | — |
Issuances, net of discount |  |  | — |  |  |  | 49,475 |  |  |  |
Sales |  |  | (24,312 | ) |  |  | — |  |  |  | — |
Paydowns |  |  | (56,749 | ) |  |  | (17,941 | ) |  |  | — |
Other |  |  | 6,977 |  |  |  | 1,849 |  |  |  | — |
Fair value as of June 30, 2022 |  | $ | 159,377 |  |  | $ | 68,407 |  |  | $ | — |
Summary of Gains or Losses Recorded Related to Eligible Financial Instruments | The following table presents the gains or losses recorded in "Other loss, net" in the condensed consolidated statements of operations related to the eligible financial instruments for which the fair value option was elected (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |
Finance receivables of CFEs |  | $ | 21,988 |  |  | $ | 924 |  |  | $ | 31,885 |  |  | $ | 15,295 |
Finance receivables at fair value |  |  | (10 | ) |  |  | 8,865 |  |  |  | (1,422 | ) |  |  | 8,252 |
Beneficial interests in securitizations |  |  | 261 |  |  |  | 165 |  |  |  | 922 |  |  |  | 321 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Debt of securitized VIEs |  |  | (6,029 | ) |  |  | (352 | ) |  |  | (7,251 | ) |  |  | (2,716 | )
Total net loss included in other income |  | $ | 16,210 |  |  | $ | 9,602 |  |  | $ | 24,134 |  |  | $ | 21,152 |
Summary of Other Relevant Data Related to Finance Receivables Carried at Fair Value | The following table presents other relevant data related to the finance receivables carried at fair value (in thousands):
As of June 30, 2023 |  | Finance Receivables of CFEs at Fair Value |  |  | Finance Receivables at Fair Value |
Aggregate unpaid principal balance included within finance receivables that are reported at fair value |  | $ | 490,496 |  |  | $ | 44,898 |
Aggregate fair value of finance receivables that are reported at fair value |  | $ | 430,022 |  |  | $ | 37,675 |
Unpaid principal balance of receivables within finance receivables that are reported at fair value and are on nonaccrual status (90 days or more past due) |  | $ | 6,306 |  |  | $ | 548 |
Aggregate fair value of receivables carried at fair value that are on nonaccrual status (90 days or more past due) |  | $ | 5,535 |  |  | $ | 394 |
As of December 31, 2022 |  | Finance Receivables of CFEs at Fair Value |  |  | Finance Receivables at Fair Value |
Aggregate unpaid principal balance included within finance receivables that are reported at fair value |  | $ | 84,477 |  |  | $ | 89,068 |
Aggregate fair value of finance receivables that are reported at fair value |  | $ | 77,904 |  |  | $ | 75,270 |
Unpaid principal balance of receivables within finance receivables that are reported at fair value and are on nonaccrual status (90 days or more past due) |  | $ | 1,097 |  |  | $ | 1,499 |
Aggregate fair value of receivables carried at fair value that are on nonaccrual status (90 days or more past due) |  | $ | 985 |  |  | $ | 1,311 |
Summary of Other Relevant Data Related to Debt of Securitized VIEs Carried at Fair Value | The following table presents other relevant data related to securitization debt of consolidated VIEs carried at fair value (in thousands):
As of June 30, 2023 |  | Securitization debt of consolidated VIEs at Fair Value |
Aggregate unpaid principal balance of rated notes of securitized VIEs |  | $ | 422,580 |
Aggregate fair value of rated notes of securitized VIEs |  | $ | 416,660 |
Aggregate fair value of residual of securitized VIEs |  | $ | 315 |
As of December 31, 2022 |  | Securitization debt of consolidated VIEs at Fair Value |
Aggregate unpaid principal balance of rated notes of securitized VIEs |  | $ | 82,556 |
Aggregate fair value of rated notes of securitized VIEs |  | $ | 79,829 |
F
Summary of Fair Value of Financial Instruments Not Carried at Fair Value | The carrying value and fair value of the finance receivables held for sale, net were as follows (in thousands):
|  | June 30, |  |  | December 31, |
|  | 2023 |  |  | 2022 |
Carrying value |  | $ | 273,817 |  |  | $ | 299,235 |
Fair value |  | $ | 275,755 |  |  | $ | 299,925 |
The fair value of the Notes, which are not carried at fair value on the accompanying condensed consolidated balance sheets, was determined utilizing actual bids and offer prices of the Notes in markets that are not active and are classified within Level 2 of the fair value hierarchy.
|  | June 30, |  |  | December 31, |
|  | 2023 |  |  | 2022 |
Carrying value |  | $ | 327,408 |  |  | $ | 359,254 |
Fair value |  | $ | 131,333 |  |  | $ | 128,026 |

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- Definition Tabular disclosure of the amount of gains or losses for the period included in earnings or resulted in a change to net assets, have arisen from the use of significant unobservable inputs (level 3) to measure the fair value of assets, liabilities, and financial instruments classified in shareholders' equity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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