Fair Values (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of assets and liabilities recorded at fair value on a recurring and non-recurring basis

The following fair value hierarchy table summarizes the Company’s assets and liabilities recorded at fair value on a recurring and non-recurring basis by the above categories ($ in thousands):


	Fair Value Using
			Quoted
			market		Significant
			prices in		other		Significant
			active		observable		unobservable
			markets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level 3)
As of March 31, 2022
Recurring basis:
Available-for-sale securities⁽¹⁾	$	24,864	$	—	$	—	$	24,864
As of December 31, 2021
Recurring basis:
Derivative liabilities⁽¹⁾	$	8,395	$	—	$	8,395	$	—
Available-for-sale securities⁽¹⁾		28,092		—		—		28,092

(1)

The fair value of the Company’s derivatives are based upon widely accepted valuation techniques utilized by a third-party specialist using observable inputs such as interest rates and contractual cash flow and are classified as Level 2. The fair value of the Company’s available-for-sale securities are based upon unadjusted third-party broker quotes and are classified as Level 3

Summary of changes in Level 3 available-for-sale securities reported at fair value

The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company’s consolidated balance sheets for the three months ended March 31, 2022 and 2021 ($ in thousands):


	2022		2021
Beginning balance	$	28,092	$	25,274
Repayments		(215)		(200)
Unrealized losses recorded in other comprehensive income		(3,013)		(1,031)
Ending balance	$	24,864	$	24,043

Schedule of carrying value and fair value of financial instruments


	As of March 31, 2022				As of December 31, 2021
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets
Net investment in leases (refer to Note 5)⁽¹⁾	$	28	$	28	$	43	$	43
Loans receivable and other lending investments, net⁽¹⁾		332		342		333		345
Loans receivable held for sale⁽¹⁾		—		—		43		43
Cash and cash equivalents⁽²⁾		1,500		1,500		340		340
Restricted cash⁽²⁾		51		51		54		54

Liabilities
Debt obligations, net⁽¹⁾⁽³⁾
Level 1		1,985		2,228		2,473		2,799
Level 3		99		101		99		104
Total debt obligations, net		2,084		2,329		2,572		2,903

(1)	The fair value of the Company’s net investment in leases, loans receivable and other lending investments, net, loans receivable held for sale and certain debt obligations are classified as Level 3 within the fair value hierarchy.

(2)

The Company determined the carrying values of its cash and cash equivalents and restricted cash approximated their fair values. Restricted cash is recorded in “Deferred expenses and other assets, net” on the Company’s balance sheet. The fair value of the Company’s cash and cash equivalents and restricted cash are classified as Level 1 within the fair value hierarchy.

(3)

As of March 31, 2022 and December 31, 2021, the fair value of the Company’s unsecured notes is classified as Level 1 in the fair value hierarchy. As of March 31, 2022 and December 31, 2021, the fair value of the Company’s 3.125% Senior Convertible Notes was $497.5 million and $527.5 million, respectively (refer to Note 18).

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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