Quarterly report [Sections 13 or 15(d)]

Fair Value Measurements (Tables)

v3.25.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value and Carrying Value of Financial Assets and Liabilities
The tables below state the estimated fair value of our financial instruments on our balance sheet. Unless otherwise discussed below, fair values for our Level 2 and Level 3 measurements are measured using a discounted cash flow model, contractual terms and inputs which consist of base interest rates and spreads over base rates which are based upon market observation and recent comparable transactions. An increase in these inputs would result in a lower fair value and a decline would result in a higher fair value. Our Senior Unsecured Notes (as defined below) and Convertible Notes are valued using a market-based approach and observable prices. The receivables held-for-sale, if any, are carried at the lower of cost or fair value, as determined on an individual asset basis.
  As of March 31, 2025
  Fair Value Carrying
Value
Level
  (in millions)
Assets
Receivables
$ 2,791  $ 2,961  Level 3
Receivables held-for-sale 103  92  Level 3
Investments (1)
Level 3
Securitization residual assets (2)
265  265  Level 3
Derivative assets 39  39  Level 2
Liabilities (3)
Commercial paper notes 430  430  Level 3
Term loans payable 409  409  Level 3
Non-recourse debt 128  129  Level 3
Senior unsecured notes 3,117  3,166  Level 2
Convertible Notes:
2025 Exchangeable Senior Notes 220  220  Level 2
2028 Exchangeable Senior Notes 498  404  Level 2
Total Convertible Notes 718  624 
Derivative liabilities Level 2
(1)The amortized cost of our investments as of March 31, 2025, was $8 million.
(2)Included in securitization assets on the consolidated balance sheet. The amortized cost of our securitization residual assets net of allowance for credit losses as of March 31, 2025 was $310 million.
(3)Fair value and carrying value exclude unamortized financing costs.
  As of December 31, 2024
  Fair Value Carrying
Value
Level
  (in millions)
Assets
Receivables
$ 2,700  $ 2,896  Level 3
Receivables held-for-sale 79  76  Level 3
Investments (1)
Level 3
Securitization residual assets (2)
249  249  Level 3
Derivative assets 72  72  Level 2
Liabilities (3)
Credit facilities $ $ Level 3
Commercial paper notes 100  100  Level 3
Term loan facilities 415  415  Level 3
Non-recourse debt 132  136  Level 3
Senior unsecured notes 3,098  3,162  Level 2
Convertible Notes:
2025 Exchangeable Senior Notes 214  218  Level 2
2028 Exchangeable Senior Notes 470  408  Level 2
Total Convertible Notes 684  626 
Derivative liabilities Level 2
(1)    The amortized cost of our investments as of December 31, 2024, was $8 million.
(2)    Included in securitization assets on the consolidated balance sheet. The amortized cost of our securitization residual assets net of allowance for credit losses as of December 31, 2024, was $301 million.
(3)    Fair value and carrying value exclude unamortized financing costs.
Schedule of Securitization Residual Assets
The following table reconciles the beginning and ending balances for our Level 3 securitization residual assets that are carried at fair value on a recurring basis, with changes in fair value recorded through AOCI:
  For the three months ended March 31,
  2025 2024
  (in millions)
Balance, beginning of period $ 249  $ 219 
Accretion of securitization residual assets
Additions to securitization residual assets
Collections of securitization residual assets (3) (3)
Unrealized gains (losses) on securitization residual assets recorded in OCI (7)
Provision for loss on securitization residual assets —  — 
Balance, end of period $ 265  $ 220 
Schedule of Investments in Unrealized Loss Position
We had the following securitization residual assets in an unrealized loss position:
Estimated Fair Value
Unrealized Losses (1)
Count of Assets
Assets with a loss shorter than 12 months Assets with a loss longer than 12 months Assets with a loss shorter than 12 months Assets with a loss longer than 12 months Assets with a loss shorter than 12 months Assets with a loss longer than 12 months
(in millions)
March 31, 2025 $ 46  $ 159  $ $ 48  19  71 
December 31, 2024 67  152  52  28  69 
(1)    Other than the assets for which there is a reserve as discussed in Note 5, loss positions are due to interest rates movements and are not indicative of credit deterioration. We have the intent and ability to hold these investments until a recovery of fair value.
Schedule of Cash Deposits Subject to Credit Risk
We had cash deposits that are subject to credit risk as shown below:
March 31, 2025 December 31, 2024
  (in millions)
Cash deposits $ 67  $ 130 
Restricted cash deposits (included in other assets) 17  20 
Total cash deposits $ 84  $ 150 
Amount of cash deposits in excess of amounts federally insured $ 81  $ 148