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Financial Instruments and Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 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 June 30, 2022

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

243,813

 

 

$

 

 

$

 

 

$

243,813

 

CFE assets:

 

 

 

 

 

 

 

 

 

 

 

 

     Finance receivables

 

 

 

 

 

 

 

 

159,377

 

 

 

159,377

 

Finance receivables at fair value

 

 

 

 

 

 

 

 

68,407

 

 

 

68,407

 

Beneficial interests in securitizations

 

 

 

 

 

13,432

 

 

 

 

 

 

13,432

 

Total financial assets

 

$

243,813

 

 

$

13,432

 

 

$

227,784

 

 

$

485,029

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

CFE liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Securitization debt of consolidated VIEs

 

 

 

 

 

167,115

 

 

 

 

 

 

167,115

 

Total financial liabilities

 

$

 

 

$

167,115

 

 

$

 

 

$

167,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(10,904

)

 

 

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 (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
June 30, 2022

 

 

Six Months Ended
June 30, 2022

 

Financial Assets

 

 

 

 

 

 

     Finance receivables of CFEs

 

$

(924

)

 

$

(15,295

)

     Finance receivables at fair value

 

 

(8,865

)

 

 

(8,252

)

     Beneficial interests in securitizations

 

 

(165

)

 

 

(321

)

Financial Liabilities

 

 

 

 

 

 

Debt of securitized VIEs

 

 

352

 

 

 

2,716

 

Total net loss included in other income

 

$

(9,602

)

 

$

(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, 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

 

$

181,015

 

 

$

79,374

 

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

 

$

159,377

 

 

$

68,407

 

 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)

 

$

1,726

 

 

$

2,778

 

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

 

$

1,506

 

 

$

2,330

 

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, 2022

 

Securitization debt of consolidated VIEs at Fair Value

 

Aggregate unpaid principal balance of debt of securitized VIEs

 

$

169,830

 

Aggregate fair value of debt of securitized VIEs

 

$

167,115

 

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,

 

 

 

2022

 

Carrying value

 

$

295,303

 

Fair value

 

$

297,745

 

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.

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Carrying value

 

$

612,231

 

 

$

610,618

 

Fair value

 

$

178,125

 

 

$

386,100