FAIR VALUE MEASUREMENTS

9 Months Ended

Dec. 31, 2018

The following summarizes the items measured at fair value on a recurring basis:


	December 31, 2018											December 31, 2017										March 31, 2018
							Total Assets /							Total Assets /							Total Assets /
							Liabilities							Liabilities							Liabilities
	Level 2		Level 3		at Fair Value			Level 2		Level 3		at Fair Value			Level 2		Level 3		at Fair Value
Assets
Derivative financial instruments	$	1,029	$	—	$	1,029		$	—	$	—	$	—		$	—	$	—	$	—
Securitized beneficial interests	—		24,659		24,659			—		26,272		26,272			—		48,715		48,715
Total assets	$	1,029	$	24,659	$	25,688		$	—	$	26,272	$	26,272		$	—	$	48,715	$	48,715
Liabilities
Long-term debt	$	742,047	$	708	$	742,755		$	877,647	$	—	$	877,647		$	911,264	$	895	$	912,159
Guarantees	—		2,890		2,890			—		2,913		2,913			—		5,864		5,864
Total liabilities	$	742,047	$	3,598	$	745,645		$	877,647	$	2,913	$	880,560		$	911,264	$	6,759	$	918,023

Level 2 measurements

•Debt: The fair value of debt is based on the market price for similar financial instruments or model-derived valuations whose inputs are observable. The primary inputs to the valuation include market expectations, the Company's credit risk, and the contractual terms of the debt instrument.

•Derivatives: The fair value of derivatives is based on the discounted cash flow analysis of the expected future cash flows. The primary inputs to the valuation include forward yield curves, implied volatilities, LIBOR rates, and credit valuation adjustments.

Level 3 measurements

•Guarantees: The fair value of guarantees is based on the discounted cash flow analysis of the expected future cash flows or historical loss rates. The primary inputs to the discounted cash flow analysis include market interest rates of 15.0% to 70.0% and the Company’s historical loss rates of 2.4% to 10.0% as of December 31, 2018. The historical loss rate was weighted by the principal balance of the loans.

•Securitized beneficial interests: The fair value of securitized beneficial interests is based on the present value of future expected cash flows. The primary inputs to this valuation include payment speeds of 64 to 73 days and discount rates of 5.0% to 7.3% as of December 31, 2018. The discount rate was weighted by the outstanding interest. Payment speed was weighted by the average days outstanding.

17. FAIR VALUE MEASUREMENTS (continued)

The following summarizes the reconciliation of changes in Level 3 instruments measured on a recurring basis:


	Three Months Ended December 31, 2018						Nine Months Ended December 31, 2018
	Securitized Beneficial Interests		Guarantees		Securitized Beneficial Interests		Guarantees
Beginning balance	$	17,512	$	1,861	$	48,715	$	5,864
Issuances of sales of receivables/guarantees	71,047		1,585		161,943		2,988
Settlements	(62,432)		(569)		(183,450)		(6,109)
(Losses) gains recognized in earnings	(1,468)		13		(2,549)		147
Ending balance	$	24,659	$	2,890	$	24,659	$	2,890


	Three Months Ended December 31, 2017						Nine Months Ended December 31, 2017
	Securitized Beneficial Interest		Guarantees		Securitized Beneficial Interest		Guarantees
Beginning balance	$	23,668	$	2,770	$	38,206	$	7,126
Issuances of sales of receivables/guarantees	66,496		1,128		177,259		3,193
Settlements	(62,407)		(993)		(186,582)		(6,946)
Losses recognized in earnings	(1,485)		8		(2,611)		(460)
Ending balance	$	26,272	$	2,913	$	26,272	$	2,913

The change in unrealized losses for securitized beneficial interests as of December 31, 2018 and 2017, and March 31, 2018 were $643, $650, and $2,531, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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