v3.26.3
Fair Value of Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Schedule of Carrying Value and Fair Value of Finance Receivables
The following tables are a summary of fair value measurements and hierarchy level at September 30, 2026 and December 31, 2025:

September 30, 2026
Carrying Value
Level 1
Level 2
Level 3
(in millions)
Assets:
Money market funds
$7 $7 $— $— 
Beneficial interests in securitizations
$557 $— $— $557 
Warrants$14 $— $— $14 
Interest rate swap$17 $— $17 $— 

December 31, 2025
Carrying Value
Level 1
Level 2
Level 3
(in millions)
Assets:
Money market funds
$1,297 $1,297 $— $— 
Beneficial interests in securitizations
$486 $— $— $486 
Warrants$58 $— $— $58 
The carrying value and fair value of the finance receivables as of September 30, 2026 and December 31, 2025 were as follows:
September 30,
2026
December 31,
2025
(in millions)
Carrying value$896 $813 
Fair value$962 $886 
Schedule of Beneficial Interest in Securitizations and Warrants
The following table presents additional information about Level 3 beneficial interests in securitizations measured at fair value on a recurring basis for the three and nine months ended September 30, 2026 and 2025:

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(in millions)
Opening Balance$502 $466 $486 $464 
Received in securitization transactions113 71 266 173 
Payments received(65)(55)(178)(159)
Change in fair value7 4 12 8 
Sales of beneficial interests— — (29)— 
Ending Balance$557 $486 $557 $486 
The following table presents changes in the Company's Level 3 Original Long-Term Warrants and New Root Warrants measured at fair value:

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(in millions)
Opening balance$11 $243 $56 $120 
Cancellation of Original Root Warrants(11)— (11)— 
New Root Warrants to acquire Root's Class A common stock19 — 19 — 
Unrealized (loss) gain
(5)(120)(50)3 
Ending balance$14 $123 $14 $123 
Schedule of Notional and Fair Value of the Interest Rate Swap
The notional and fair value of the interest rate swap as of September 30, 2026 was as follows:

(In millions)Notional AmountBalance Sheet LocationAssetLiability
Interest rate swap - cash flow hedge$1,660 Other current assets and other assets$17 $— 
Schedule of Interest Rate Swap on Comprehensive Income and Earnings
The effect of the interest rate swap on comprehensive income and earnings for the three and nine months ended September 30, 2026 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
20262026
(in millions)
Gain recognized in other comprehensive income, pre-tax$16 $16 
Loss reclassified from AOCI into interest expense, net, pre-tax$(1)$(1)
Total interest expense, net in which reclassified amounts are recorded$98 $298 
Schedule of Fair Value Senior Notes and Term Loan B The fair value of the Senior Notes and the Term Loan B as of September 30, 2026 and December 31, 2025 were as follows:
September 30,
2026
December 31,
2025
(in millions)
Senior Notes
Carrying value, net of unamortized debt issuance costs and unamortized premium
$2,371 $4,025 
Fair value$2,543 $4,403 
Term Loan B
Carrying value, net of unamortized debt issuance costs and original issue discount$1,639 $— 
Fair value$1,652 $—