v3.25.2
Fair Value Measurement
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
At June 30, 2025 and December 31, 2024, 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):
June 30, 2025December 31, 2024
Carrying ValueFair ValueCarrying ValueFair Value
Recourse debt$814,703 $676,548 $863,646 $807,801 
Senior debt5,014,613 4,983,936 4,738,594 4,681,858 
Subordinated debt3,054,028 2,945,636 2,667,010 2,539,930 
Securitization debt5,155,422 5,026,212 4,632,242 4,363,326 
Total$14,038,766 $13,632,332 $12,901,492 $12,392,915 
At June 30, 2025 and December 31, 2024, the fair value of certain recourse debt and certain senior, subordinated and securitization loans approximate their carrying values because their interest rates are variable rates that approximate rates currently available to the Company. At June 30, 2025 and December 31, 2024, the fair value of the Company’s other debt instruments are based on rates currently offered for debt with similar maturities and terms. The Company’s fair value of the debt instruments fell under the Level 2 hierarchy. These valuation approaches involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market.
At June 30, 2025 and December 31, 2024, financial instruments measured at fair value on a recurring basis, based upon the fair value hierarchy, are as follows (in thousands):
June 30, 2025
Level 1Level 2Level 3Total
Derivative assets:
Interest rate swaps$— $101,324 $— $101,324 
Total$— $101,324 $— $101,324 
Derivative liabilities:
Interest rate swaps$— $29,743 $— $29,743 
Total$— $29,743 $— $29,743 
December 31, 2024
Level 1Level 2Level 3Total
Derivative assets:
Interest rate swaps$— $171,758 $— $171,758 
Total$— $171,758 $— $171,758 
Derivative liabilities:
Interest rate swaps$— $7,385 $— $7,385 
Total$— $7,385 $— $7,385 
    
The above balances are recorded in other assets and other liabilities, respectively, in the consolidated balance sheets, except for $19.1 million and $30.6 million as of June 30, 2025 and December 31, 2024, 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.