Fair Value Measurement

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value Measurement

At December 31, 2024 and 2023, the carrying value of receivables, accounts payable, accrued expenses and distributions payable to noncontrolling interests approximates fair value due to their short-term nature and falls under the Level 2 hierarchy. The carrying values and fair values of debt instruments are as follows (in thousands):

	December 31, 2024				December 31, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value
Recourse debt	$	863,646	$	807,801	$	932,369	$	844,727
Senior debt	4,738,594		4,681,858		4,114,134		4,082,994
Subordinated debt	2,667,010		2,539,930		2,219,573		2,131,994
Securitization debt	4,632,242		4,363,326		3,405,852		3,191,542
Total	$	12,901,492	$	12,392,915	$	10,671,928	$	10,251,257

At December 31, 2024 and 2023, the fair value of certain recourse debt and certain senior, subordinated and securitization loans approximate their carrying values because their interest rates are variable rates that approximate rates currently available to the Company. At December 31, 2024 and 2023, the fair value of the Company’s other debt instruments are based on rates currently offered for debt with similar maturities and terms. The Company’s fair value of the debt instruments fell under the Level 2 hierarchy. These valuation approaches involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market.

At December 31, 2024 and 2023, financial instruments measured at fair value on a recurring basis, based upon the fair value hierarchy are as follows (in thousands):

	December 31, 2024
	Level 1		Level 2		Level 3		Total
Derivative assets:
Interest rate swaps	$	—	$	171,758	$	—	$	171,758
Total	$	—	$	171,758	$	—	$	171,758
Derivative liabilities:
Interest rate swaps	$	—	$	7,385	$	—	$	7,385
Total	$	—	$	7,385	$	—	$	7,385

	December 31, 2023
	Level 1		Level 2		Level 3		Total
Derivative assets:
Interest rate swaps	$	—	$	132,734	$	—	$	132,734
Total	$	—	$	132,734	$	—	$	132,734
Derivative liabilities:
Interest rate swaps	$	—	$	60,401	$	—	$	60,401
Total	$	—	$	60,401	$	—	$	60,401

The above balances are recorded in other assets and other liabilities, respectively, in the consolidated balance sheets, except for $30.6 million and $55.5 million as of December 31, 2024 and 2023, respectively, which is recorded in prepaid expenses and other current assets.

The Company determines the fair value of its interest rate swaps using a discounted cash flow model that incorporates an assessment of the risk of non-performance by the interest rate swap counterparty and an evaluation of the Company’s credit risk in valuing derivative instruments. The valuation model uses various inputs including contractual terms, interest rate curves, credit spreads and measures of volatility.