Sonic Automotive, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Assets and Liabilities Recorded at Fair Value

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.

Fair Value and Carrying Value of Significant Fixed Rate Long-Term Debt

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).