v3.26.1
Fair Value Measurements
 12 Months Ended
Feb. 28, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market or, if none exists, the most advantageous market, for the specific asset or liability at the measurement date (referred to as the “exit price”).  The fair value should be based on assumptions that market participants would use, including a consideration of nonperformance risk.
We assess the inputs used to measure fair value using the three-tier hierarchy.  The hierarchy indicates the extent to which inputs used in measuring fair value are observable in the market.
Level 1    Inputs include unadjusted quoted prices in active markets for identical assets or liabilities that we can access at the measurement date.
Level 2    Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets in active markets, quoted prices from identical or similar assets in inactive markets, observable inputs, such as interest rates and yield curves, and assumptions about risk.
Level 3    Inputs that are significant to the measurement that are not observable in the market and include management’s judgments about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk).
Our fair value processes include controls that are designed to ensure that fair values are appropriate.  Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations and reviews by senior management.
Valuation Methodologies
Money Market Securities.  Money market securities are cash equivalents, which are included in cash and cash equivalents, restricted cash from collections on auto loans held for investment and other assets. They consist of highly liquid investments with original maturities of three months or less and are classified as Level 1. 
Mutual Fund Investments.  Mutual fund investments consist of publicly traded mutual funds that primarily include diversified equity investments in large-, mid- and small-cap domestic and international companies or investment grade debt securities.  The investments, which are included in other assets, are held in a rabbi trust established to fund informally our executive deferred compensation plan and are classified as Level 1.
Derivative Instruments.  The fair values of our derivative instruments are included in either other current assets, other assets, accounts payable or other liabilities.  Our derivatives are not exchange-traded and are over-the-counter customized derivative instruments.  All of our derivative exposures are with highly rated bank counterparties.
We measure derivative fair values assuming that the unit of account is an individual derivative instrument and that derivatives are sold or transferred on a stand-alone basis.  We estimate the fair value of our derivatives using quotes determined by the derivative counterparties and third-party valuation services.  Quotes from third-party valuation services and quotes received from bank counterparties project future cash flows and discount the future amounts to a present value using market-based expectations for interest rates and the contractual terms of the derivative instruments.  The models do not require significant judgment and model inputs can typically be observed in a liquid market; however, because the models include inputs other than quoted prices in active markets, all derivatives are classified as Level 2.
Our derivative fair value measurements consider assumptions about counterparty and our own nonperformance risk.  We monitor counterparty and our own nonperformance risk and, in the event that we determine that a party is unlikely to perform under terms of the contract, we would adjust the derivative fair value to reflect the nonperformance risk.
Beneficial Interests in Non-Consolidated Securitizations. The fair values of our beneficial interests in non-consolidated securitizations are included in other assets. As discussed in Note 1(K), the beneficial interests in non-consolidated securitizations represent our retained interest in the rated notes and residual certificate from securitization transactions for which we are not the primary beneficiary and therefore not required to consolidate.
Our beneficial interests in non-consolidated securitizations are measured at fair value on a recurring basis. Changes in fair value for the rated notes that are deemed to be high credit quality are recognized in AOCL. For the remaining rated notes and residual certificate we have elected the fair value option, which allows us to recognize changes of these assets in the period fair value changes. These changes in fair value are recognized in CAF income.
The fair values of our beneficial interests for all rated notes are classified as Level 2 and are based on non-binding bank quotes. The non-binding bank quotes are based on recent market transactions and current business conditions. The fair value of our beneficial interest for the residual certificate is classified as Level 3 due to the lack of observable market data. The fair value is determined using a discounted cash flow model. As of February 28, 2026, the discount rate used was approximately 18%. Significant increases or decreases in the inputs to the models could result in a significantly higher or lower fair value measurement.
There were no transfers in or out of Level 3 during the years ended February 28, 2026 and 2025.
The following table presents additional information about Level 3 beneficial interests in non-consolidated securitizations measured at fair value on a recurring basis:
 Year Ended
(In thousands)February 28, 2026
Balance as of beginning of year$— 
Received in securitization transaction3,536 
Interest income340 
Change in fair value74 
Balance as of end of year$3,950 
Items Measured at Fair Value on a Recurring Basis
 As of February 28, 2026
(In thousands)Level 1Level 2Level 3Total
Assets:   
Money market securities$751,211 $— $— $751,211 
Mutual fund investments33,651 — — 33,651 
Derivative instruments designated as hedges— 416 — 416 
Beneficial interests in non-consolidated securitizations— 37,670 3,950 41,620 
Total assets at fair value$784,862 $38,086 $3,950 $826,898 
Percent of total assets at fair value94.9 %4.6 %0.5 %100.0 %
Percent of total assets3.0 %0.1 %— %3.1 %
Liabilities:   
Derivative instruments designated as hedges$— $(9,771)$— $(9,771)
Total liabilities at fair value$— $(9,771)$— $(9,771)
Percent of total liabilities— %— %— %— %
 As of February 28, 2025
(In thousands)Level 1Level 2Total
Assets:   
Money market securities$842,691 $— $842,691 
Mutual fund investments27,495 — 27,495 
Derivative instruments designated as hedges— 10,813 10,813 
Derivative instruments not designated as hedges— 1,576 1,576 
Total assets at fair value$870,186 $12,389 $882,575 
Percent of total assets at fair value98.6 %1.4 %100.0 %
Percent of total assets3.2 %— %3.2 %
Liabilities:   
Derivative instruments designated as hedges$— $(8,728)$(8,728)
Total liabilities at fair value$— $(8,728)$(8,728)
Percent of total liabilities— %— %— %
Fair Value of Financial Instruments
The carrying value of our cash and cash equivalents, accounts receivable, other restricted cash deposits and accounts payable approximates fair value due to the short-term nature and/or variable rates associated with these financial instruments. Auto loans held for investment are presented net of an allowance for estimated loan losses, which we believe approximates fair value. We believe that the carrying value of our revolving credit facility and term loan approximates fair value due to the variable rates associated with these obligations.
The fair value of our auto loans held for sale, which are not carried at fair value on our consolidated balance sheets, was determined using Level 2 inputs from the company’s recent term securitization transactions and other available market data. The carrying value and fair value of the auto loans held for sale as of February 28, 2026 and February 28, 2025, respectively, are as follows:
(In thousands)As of February 28, 2026As of February 28, 2025
Carrying value$100,491 $— 
Fair value$103,836 $— 
The fair value of our senior unsecured notes, which are not carried at fair value on our consolidated balance sheets, was determined using Level 2 inputs based on quoted market prices. The carrying value and fair value of the senior unsecured notes as of February 28, 2026 and February 28, 2025, respectively, are as follows:
(In thousands)As of February 28, 2026As of February 28, 2025
Carrying value$400,000 $400,000 
Fair value$397,759 $390,201