Fair Value Measurement
At December 31, 2025 and 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):
December 31, 2025December 31, 2024
Carrying Value
Fair Value
Carrying Value
Fair Value
Recourse debt$717,529 $919,709 $863,646 $807,801 
Senior debt4,759,238 4,739,577 4,738,594 4,681,858 
Subordinated debt3,279,002 3,220,986 2,667,010 2,539,930 
Securitization debt5,939,802 5,861,033 4,632,242 4,363,326 
Total
$14,695,571 $14,741,305 $12,901,492 $12,392,915 
At December 31, 2025 and 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 December 31, 2025 and 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 December 31, 2025 and 2024, financial instruments measured at fair value on a recurring basis, based upon the fair value hierarchy are as follows (in thousands):
December 31, 2025
Level 1
Level 2
Level 3
Total
Derivative assets:
Interest rate swaps
$— $102,346 $— $102,346 
Total
$— $102,346 $— $102,346 
Derivative liabilities:
Interest rate swaps$— $14,860 $— $14,860 
Total
$— $14,860 $— $14,860 
December 31, 2024
Level 1
Level 2
Level 3
Total
Derivative assets:
Interest rate swaps$— $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 $9.8 million and $30.6 million as of December 31, 2025 and 2024, respectively, which is recorded in prepaid expenses and other current assets and $6.3 million as of December 31, 2025, which is recorded in accrued expenses and other liabilities.
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.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 21, 2024
2022Feb 22, 2023
2021Feb 17, 2022
2020Feb 25, 2021
2019Feb 27, 2020
2018Feb 28, 2019
2017Mar 6, 2018
2016Mar 8, 2017
2015Mar 11, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.