Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Assets and Liabilities Measured at Fair Value on a Recurring Basis

We evaluate our financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at which to classify them for each reporting period. Our interest rate cap is reported at fair value utilizing Level 2 inputs. The fair value is determined using third party valuations that are based on discounted cash flow analysis using observed market inputs.

The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis (in thousands):

	December 31, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Interest rate cap	$	—	$	—	$	—	$	—
Total assets	$	—	$	—	$	—	$	—

	December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Interest rate cap	$	—	$	1,253	$	—	$	1,253
Total assets	$	—	$	1,253	$	—	$	1,253

There were no transfers between levels for the yearended December 31, 2019 and December 31, 2018.

Assets and Liabilities Disclosed at Fair Value

Because our loans and finance receivables and fixed-rate debt are not measured at fair value, we are required to disclose their fair value in accordance with ASC 825. The carrying value of our variable rate debt approximates fair value. Due to the lack of transparency and comparable loans, we utilize an income valuation technique to estimate fair value. We utilize industry-standard modeling, such as discounted cash flow models, to arrive at an estimate of fair value and may utilize third-party service providers to assist in the valuation process. This determination requires significant judgments to be made. The following tables summarize the carrying value and fair value of our loans and finance receivables and fixed-rate debt (in thousands):

	December 31, 2019
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Loans and finance receivables, net	$	1,114,179	$	1,241,893	$	—	$	—	$	1,241,893
Total assets	$	1,114,179	$	1,241,893	$	—	$	—	$	1,241,893
Liabilities:
Fixed-rate debt	$	350,000	$	337,510	$	—	$	—	$	337,510
Total fixed-rate debt	$	350,000	$	337,510	$	—	$	—	$	337,510

	December 31, 2018
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Loans and finance receivables, net	$	1,029,367	$	1,155,464	$	—	$	—	$	1,155,464
Total assets	$	1,029,367	$	1,155,464	$	—	$	—	$	1,155,464
Liabilities:
Fixed-rate debt	$	232,972	$	226,965	$	—	$	—	$	226,965
Total fixed-rate debt	$	232,972	$	226,965	$	—	$	—	$	226,965