Fair Values

3 Months Ended

Mar. 31, 2022

FAIR VALUES

Assets and Liabilities Measured at Fair Value

The following table summarizes our assets and liabilities measured at fair value on a recurring basis ($ in thousands):


	March 31, 2022								December 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Derivatives	$	—	$	51,884	$	—	$	51,884	$	—	$	30,531	$	—	$	30,531
Liabilities
Derivatives	$	—	$	6,241	$	—	$	6,241	$	—	$	5,890	$	—	$	5,890

Refer to Note 2 for further discussion regarding fair value measurement.

Fair Value of Financial Instruments

As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized at fair value in the statement of financial position, for which it is practicable to estimate that value.

The following table details the book value, face amount, and fair value of the financial instruments described in Note 2 ($ in thousands):


	March 31, 2022						December 31, 2021
	Book Value		Face Amount		Fair Value		Book Value		Face Amount		Fair Value
Financial assets
Cash and cash equivalents	$	309,425	$	309,425	$	309,425	$	551,154	$	551,154	$	551,154
Loans receivable, net	23,586,769		23,873,563		23,684,237		21,878,338		22,156,437		22,013,762
Debt securities held-to-maturity, net(1)	—		—		—		78,013		79,200		77,229
Financial liabilities
Secured debt, net	13,092,408		13,117,249		13,117,249		12,280,042		12,299,580		12,299,580
Securitized debt obligations, net	2,839,818		2,855,625		2,825,774		2,838,062		2,855,625		2,850,399
Asset-specific debt, net	463,097		469,766		469,766		393,824		400,699		400,699
Loan participations sold, net	243,760		244,367		244,367		—		—		—
Secured term loans, net	1,325,222		1,345,837		1,333,424		1,327,406		1,349,271		1,335,844
Senior secured notes, net	394,303		400,000		373,112		394,010		400,000		399,012
Convertible notes, net	850,084		857,850		858,042		619,876		622,500		630,821

(1)Included in other assets on our consolidated balance sheets.

Estimates of fair value for cash and cash equivalents and convertible notes are measured using observable, quoted market prices, or Level 1 inputs. Estimates of fair value for debt securities held-to-maturity, securitized debt obligations, the term loans, and the senior secured notes are measured using observable, quoted market prices, in inactive markets, or Level 2 inputs. All other fair value significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding fair value measurement of certain of our assets and liabilities.

- 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 + Details