Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v2.4.1.9
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2014
Fair Value Disclosures [Abstract]  
Schedule of Residual Interests Securitized Receivables and Derivatives Carried at Fair Value
     As of December 31, 2014  
     Fair
Value
     Carrying
Value
     Level  
     (amounts in millions)  

Assets

        

Financing receivables (1)

   $ 597.5       $ 552.7         Level 3   

Financing receivables held-for-sale

     62.3         62.3         Level 3   

Investments available-for-sale (2)

     27.3         27.3         Level 3   

Residual assets

     5.2         5.2         Level 3   

Liabilities

        

Credit facility

   $ 315.7       $ 315.7         Level 3   

Nonrecourse debt

     127.4         112.5         Level 3   

Asset-backed nonrecourse notes

     207.8         208.2         Level 3   

 

(1) Financing receivables includes $0.8 million, which represents the net fair value of collateral related to an impaired loan. The allowance for loan losses included in the carrying value of the financing receivables was $1.2 million as of December 31, 2014.
(2) The amortized costs of our investments available-for-sale as of December 31, 2014, was $26.9 million.

 

     As of December 31, 2013  
     Fair Value      Carrying
Value
     Level  
     (amounts in millions)         

Assets

        

Financing receivables (1)

   $ 346.4       $ 347.9         Level 3   

Investments

     92.0         92.0         Level 3   

Financing receivables held-for-sale

     24.8         24.8         Level 3   

Investments available-for-sale

     3.2         3.2         Level 3   

Residual assets

     4.9         4.9         Level 3   

Liabilities

        

Credit facility

   $ 77.1       $ 77.1         Level 3   

Nonrecourse debt

     167.1         159.8         Level 3   

Asset-backed nonrecourse notes

     99.8         100.0         Level 3   

 

(1) Financing receivables includes $0.8 million, which represents the net fair value of collateral related to an impaired loan. The allowance for loan losses included in the carrying value of the financing receivables was $11.0 million as of December 31, 2013.
Schedule of Reconciliation of Level 3 Investments Available-for-Sale Securities

The following table reconciles the beginning and ending balances for our Level 3 investments that are carried at fair value following the transfer of our investments to available-for-sale:

 

     For the year ended December 31,  
     2014      2013  
     (amounts in millions)  

Balance, beginning of period

   $ —        $ —     

Transfers to / purchases of available-for-sale debt securities.

     83.2         —     

Sale of available-for-sale debt securities

     (59.6      —     

Unrealized gain on debt securities transferred to available for sale

     5.0         —     

Unrealized loss on debt securities

     (1.3      —     
  

 

 

    

 

 

 

Balance, end of Period

$ 27.3    $  —     
  

 

 

    

 

 

 
Schedule of Fair Values of Retained Assets, Discount Rates Used in Valuing Assets

As of December 31, 2014 and 2013, the fair values of retained assets, including the discount rates used in valuing those assets and the sensitivity to an increase in the discount rates of 5% and 10% were as follows:

 

     December 31, 2014  
     Servicing     Residual Assets  
     (amounts in millions)  

Amortized cost basis

   $ 1.0      $ 5.1   

Fair value

   $ 1.2      $ 5.2   

Weighted-average life in years

     9        7 to 19   

Discount rate

     8     8

Fair value that would be decreased based on hypothetical adverse changes in discount rates:

  

5% change in discount rate

   $ 0.2      $ 1.5   

10% change in discount rate

   $ 0.4      $ 2.3   

 

     December 31, 2013  
     Servicing     Residual Assets  
     (amounts in millions)  

Amortized cost basis

   $ 1.3      $ 4.8   

Fair value

   $ 1.4      $ 4.9   

Weighted-average life in years

     8        6 to 19   

Discount rate

     8     8% to 10%   

Fair value that would be decreased based on hypothetical adverse changes in discount rates:

    

5% change in discount rate

   $ 0.3      $ 1.2   

10% change in discount rate

   $ 0.4      $ 1.8