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Financial Instruments and Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables presents the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands):

 

 

 

As of March 31, 2022

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

189,504

 

 

$

 

 

$

 

 

$

189,504

 

Commercial paper

 

 

 

 

 

22,999

 

 

 

 

 

 

22,999

 

CFE assets:

 

 

 

 

 

 

 

 

 

 

 

 

     Finance receivables

 

 

 

 

 

 

 

 

189,469

 

 

 

189,469

 

Finance receivables at fair value

 

 

 

 

 

 

 

 

35,954

 

 

 

35,954

 

Beneficial interests in securitizations

 

 

 

 

 

15,603

 

 

 

 

 

 

15,603

 

Total financial assets

 

$

189,504

 

 

$

38,602

 

 

$

225,423

 

 

$

453,529

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

CFE liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Securitization debt of consolidated VIEs

 

 

 

 

 

204,627

 

 

 

 

 

 

204,627

 

Total financial liabilities

 

$

 

 

$

204,627

 

 

$

 

 

$

204,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2021

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

601,807

 

 

$

 

 

$

 

 

$

601,807

 

Commercial paper

 

 

 

 

 

149,974

 

 

 

 

 

 

149,974

 

Total financial assets

 

$

601,807

 

 

$

149,974

 

 

$

 

 

$

751,781

 

 

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

 

 

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

 

 

(10,019

)

 

 

10,019

 

 

 

 

Losses included in other income

 

 

(15,807

)

 

 

(1,730

)

 

 

 

Sales

 

 

(24,312

)

 

 

 

 

 

 

Paydowns

 

 

(26,070

)

 

 

(7,500

)

 

 

 

Other

 

 

3,033

 

 

 

882

 

 

 

 

Fair value as of March 31, 2022

 

$

189,469

 

 

$

35,954

 

 

$

 

Summary of Gains or Losses Recorded Related to Eligible Financial Instruments

The following table presents the gains or losses recorded in "Other loss (income), 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
March 31, 2022

 

Financial Assets

 

 

 

     Finance receivables of CFEs

 

$

(14,371

)

     Finance receivables at fair value

 

 

613

 

     Beneficial interests in securitizations

 

 

(156

)

Financial Liabilities

 

 

 

Debt of securitized VIEs

 

 

2,364

 

Total net loss included in other income

 

$

(11,550

)

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 March 31, 2022

 

Finance Receivables of CFEs at Fair Value

 

 

Finance Receivable at Fair Value

 

 Aggregate unpaid principal balance included within finance receivables that are reported at fair value

 

$

218,243

 

 

$

44,593

 

 Aggregate fair value of finance receivables that are reported at fair value

 

$

189,469

 

 

$

35,954

 

 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)

 

$

2,476

 

 

$

3,286

 

 Aggregate fair value of receivables carried at fair value that are on nonaccrual status (90 days or more past due)

 

$

2,154

 

 

$

2,390

 

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 March 31, 2022

 

Securitization debt of consolidated VIEs at Fair Value

 

Aggregate unpaid principal balance of debt of securitized VIEs

 

$

206,991

 

Aggregate fair value of debt of securitized VIEs

 

$

204,627

 

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):

 

 

 

March 31,

 

 

 

2022

 

Carrying value

 

$

117,658

 

Fair value

 

$

123,163

 

The fair value of the Notes, which are not carried at fair value on the accompanying 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.

 

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Carrying value

 

$

611,424

 

 

$

610,618

 

Fair value

 

$

293,750

 

 

$

386,100