Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

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Fair Value Measurements
 3 Months Ended
Mar. 31, 2024
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, 2024 and December 31, 2023 were as follows:
Fair Value Based on Significant Other Observable Inputs (Level 2)
March 31, 2024 December 31, 2023
(In millions)
Assets:
Cash surrender value of life insurance policies (1) $ 43.9  $ 42.9 
Interest rate caps designated as hedges (2) 1.1  1.0 
Total assets $ 45.0  $ 43.9 
(1)Included in other assets in the accompanying unaudited condensed consolidated balance sheets.
(2)As of March 31, 2024, approximately $1.1 million was included in other current assets in the accompanying unaudited condensed consolidated balance sheets. As of December 31, 2023, approximately $1.0 million was included in other current assets in the accompanying unaudited condensed consolidated balance sheets.
As of March 31, 2024 and December 31, 2023, 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, 2024 and December 31, 2023, the fair value and the carrying value of Sonic’s significant fixed rate long-term debt were as follows:
March 31, 2024 December 31, 2023
Fair Value Carrying Value Fair Value Carrying Value
(In millions)
4.875% Notes (1) $ 435.0  $ 500.0  $ 447.5  $ 500.0 
4.625% Notes (1) $ 578.5  $ 650.0  $ 591.5  $ 650.0 
Mortgage Notes (2) $ 147.1  $ 152.8  $ 156.6  $ 163.0 
(1)As determined by market quotations from similar securities as of March 31, 2024 and December 31, 2023, respectively (Level 2).
(2)As determined by the discounted cash flow method (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, 2023.