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Financial Instruments and Fair Value Measurements (Tables)
6 Months Ended
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