Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

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Fair Value Measurements
 3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements
8. Fair Value Measurements
Assets and liabilities recorded at fair value in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 were as follows:
Fair Value Based on Significant Other Observable Inputs (Level 2)
March 31, 2022 December 31, 2021
(In millions)
Assets:
Cash surrender value of life insurance policies (1) $ 38.5  $ 39.5 
Total assets $ 38.5  $ 39.5 
Liabilities:
Deferred compensation plan (2) $ 23.5  $ 24.4 
Total liabilities $ 23.5  $ 24.4 
(1)Included in other assets in the accompanying unaudited condensed consolidated balance sheets.
(2)Included in other long-term liabilities in the accompanying unaudited condensed consolidated balance sheets.

There were no instances during the three months ended March 31, 2022 which required a fair value measurement of assets ordinarily measured at fair value on a non-recurring basis. These assets will be evaluated as of the annual valuation assessment date of October 1, 2022 or as events or changes in circumstances require.
As of March 31, 2022 and December 31, 2021, the fair values of Sonic’s financial instruments, including receivables, notes receivable from finance contracts, notes payable – floor plan, trade accounts payable, borrowings under the revolving credit facilities and certain mortgage notes, approximated their carrying values due either to length of maturity or existence of variable interest rates that approximate prevailing market rates.
As of March 31, 2022 and December 31, 2021, the fair value and carrying value of Sonic’s significant fixed rate long-term debt were as follows:
March 31, 2022 December 31, 2021
Fair Value Carrying Value Fair Value Carrying Value
(In millions)
4.875% Notes (1) $ 443.8  $ 500.0  $ 504.8  $ 500.0 
4.625% Notes (1) $ 580.1  $ 650.0  $ 655.9  $ 650.0 
(1)As determined by market quotations from similar securities as of March 31, 2022 and December 31, 2021, respectively (Level 2).
For further discussion of Sonic’s fair value measurements, see Note 11, “Fair Value Measurements,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2021.