v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 12 – Fair Value Measurements

Certain of the Company’s assets are carried at fair value. 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 at the measurement date.

The Company categorizes its assets and liabilities carried at fair value using a three-level hierarchy for fair value measurements that distinguishes between market participant assumptions developed based on market data obtained from sources independent of the Company (observable inputs) and the Company’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. The hierarchy level assigned to the assets and liabilities is based on management’s assessment of the transparency and reliability of the inputs used to estimate the fair values at the measurement date. The three hierarchy levels are defined as follows:

 

Level 1—Valuations based on unadjusted quoted market prices in active markets for identical assets or liabilities.

Level 2—Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets or liabilities at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly.

Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement and involve management judgment.

If the inputs used to measure fair value fall into different levels of the fair value hierarchy, the hierarchy level assigned is based upon the lowest level of input that is significant to the fair value measurement.

The following tables present the fair values of the Company’s assets, measured on a recurring basis, as of June 30, 2026 and December 31, 2025:

(in millions)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bonds

 

$

218.7

 

 

$

—

 

 

$

218.7

 

 

$

—

 

Municipal bonds

 

 

1,053.3

 

 

 

—

 

 

 

1,053.3

 

 

 

—

 

Foreign government bonds

 

 

233.3

 

 

 

—

 

 

 

233.3

 

 

 

—

 

Governmental agency bonds

 

 

374.6

 

 

 

—

 

 

 

374.6

 

 

 

—

 

Governmental agency mortgage-backed securities

 

 

6,130.6

 

 

 

—

 

 

 

6,130.6

 

 

 

—

 

U.S. corporate debt securities

 

 

1,269.9

 

 

 

—

 

 

 

1,269.9

 

 

 

—

 

Foreign corporate debt securities

 

 

494.3

 

 

 

—

 

 

 

494.3

 

 

 

—

 

 

 

 

9,774.7

 

 

 

—

 

 

 

9,774.7

 

 

 

—

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

Common stocks

 

 

484.7

 

 

 

484.7

 

 

 

—

 

 

 

—

 

Preferred stocks

 

 

9.8

 

 

 

9.8

 

 

 

—

 

 

 

—

 

 

 

 

494.5

 

 

 

494.5

 

 

 

—

 

 

 

—

 

Total

 

$

10,269.2

 

 

$

494.5

 

 

$

9,774.7

 

 

$

—

 

 

 

(in millions)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bonds

 

$

243.6

 

 

$

—

 

 

$

243.6

 

 

$

—

 

Municipal bonds

 

 

960.1

 

 

 

—

 

 

 

960.1

 

 

 

—

 

Foreign government bonds

 

 

235.2

 

 

 

—

 

 

 

235.2

 

 

 

—

 

Governmental agency bonds

 

 

261.0

 

 

 

—

 

 

 

261.0

 

 

 

—

 

Governmental agency mortgage-backed securities

 

 

5,260.8

 

 

 

—

 

 

 

5,260.8

 

 

 

—

 

U.S. corporate debt securities

 

 

1,034.8

 

 

 

—

 

 

 

1,034.8

 

 

 

—

 

Foreign corporate debt securities

 

 

471.2

 

 

 

—

 

 

 

471.2

 

 

 

—

 

 

 

 

8,466.7

 

 

 

—

 

 

 

8,466.7

 

 

 

—

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

Common stocks

 

 

467.7

 

 

 

467.7

 

 

 

—

 

 

 

—

 

Preferred stocks

 

 

9.9

 

 

 

9.9

 

 

 

—

 

 

 

—

 

 

 

 

477.6

 

 

 

477.6

 

 

 

—

 

 

 

—

 

Total

 

$

8,944.3

 

 

$

477.6

 

 

$

8,466.7

 

 

$

—

 

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value as of June 30, 2026 and December 31, 2025:

 

 

Carrying

 

 

Estimated fair value

 

(in millions)

 

Amount

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,624.8

 

 

$

2,624.8

 

 

$

2,624.8

 

 

$

—

 

 

$

—

 

Deposits with banks

 

$

103.3

 

 

$

103.1

 

 

$

30.8

 

 

$

72.3

 

 

$

—

 

Notes receivable, net

 

$

43.4

 

 

$

43.5

 

 

$

—

 

 

$

—

 

 

$

43.5

 

Secured financings receivable

 

$

1,152.2

 

 

$

1,152.2

 

 

$

—

 

 

$

1,152.2

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured financings payable

 

$

1,036.5

 

 

$

1,036.5

 

 

$

—

 

 

$

1,036.5

 

 

$

—

 

Notes and contracts payable

 

$

1,546.5

 

 

$

1,450.8

 

 

$

—

 

 

$

1,442.9

 

 

$

7.9

 

 

 

 

Carrying

 

 

Estimated fair value

 

(in millions)

 

Amount

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,387.3

 

 

$

1,387.3

 

 

$

1,387.3

 

 

$

—

 

 

$

—

 

Deposits with banks

 

$

78.5

 

 

$

78.2

 

 

$

9.9

 

 

$

68.3

 

 

$

—

 

Notes receivable, net

 

$

35.7

 

 

$

36.1

 

 

$

—

 

 

$

—

 

 

$

36.1

 

Secured financings receivable

 

$

986.1

 

 

$

986.1

 

 

$

—

 

 

$

986.1

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured financings payable

 

$

906.5

 

 

$

906.5

 

 

$

—

 

 

$

906.5

 

 

$

—

 

Notes and contracts payable

 

$

1,545.4

 

 

$

1,459.9

 

 

$

—

 

 

$

1,452.1

 

 

$

7.8

 

 

Assets measured at fair value on a non-recurring basis

 

Estimated fair value (2)

 

(in millions)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Non-marketable equity securities (1)

 

$

97.2

 

 

$

—

 

 

$

88.4

 

 

$

8.8

 

 

(1)
Excludes $117.2 million of non-marketable equity securities for which no observable price changes or impairment charges occurred during the six months ended June 30, 2026.
(2)
Estimated fair values were determined during the year as of the dates that either an observable transaction occurred or an impairment assessment was made.

 

Non-marketable equity securities that have been remeasured during the year based on observable price changes are classified within Level 2 in the fair value hierarchy because the fair value is determined based only on significant inputs that are observable, such as observable transactions at the transaction date.

The following table presents the valuation techniques and significant unobservable inputs used in measuring the fair value of non-marketable equity securities classified within Level 3 of the fair value hierarchy as of June 30, 2026:

 

(in millions)

 

Fair Value

 

 

Approach

 

Input

 

Range

 

Weighted Average (1)

Non-marketable equity securities

 

$

8.8

 

 

Market

 

Gross Profit Multiple

 

7.2-14.8

 

10.3

 

(1)
Weighted average is calculated based on the fair values of the non-marketable equity securities.