Company: GPI
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001031203-25-000061
Chunk: 22

Company: GROUP 1 AUTOMOTIVE INC
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 due January 2030 (“6.375% Senior Notes”) using quoted prices for the identical liability (Level 1) and estimates the fair value of its fixed-rate mortgage facilities using a present value method based on current market interest rates for similar types of financial instruments (Level 2). Refer to Note 10. Debt for further discussion of the Company’s long-term debt arrangements. The carrying value and fair value of the Company’s fixed rate long-term debt were as follows (in millions):September 30, 2025December 31, 2024Carrying Value (1)Fair ValueCarrying Value (1)Fair Value4.00% Senior Notes$750.0 $732.7 $750.0 $701.5 6.375% Senior Notes500.0 512.3 500.0 502.4 Real estate related131.8 131.9 140.6 136.4 Total$1,381.8 $1,376.9 $1,390.6 $1,340.4 (1) Carrying value excludes unamortized debt issuance costs.

Derivative Financial Instruments The Company holds interest rate swaps to hedge against variability of interest payments indexed to SOFR. The Company’s interest rate swaps are measured at fair value utilizing a SOFR forward yield curve matched to the identical maturity term of the instrument being measured. Observable inputs utilized in the income approach valuation method incorporate identical contractual notional amounts, fixed coupon rates, periodic terms for interest payments and contract maturity. The fair value of the interest rate swaps also considers the credit risk of the Company for instruments in a liability position or the counterparty for instruments in an asset position. The credit risk is calculated using the spread between the SOFR yield curve and the relevant interest rate according to rating agencies. The inputs to the fair value measurements reflect Level 2 of the hierarchy framework.

17

Table of Contents GROUP 1 AUTOMOTIVE, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Assets associated with the Company’s interest rate swaps, as reflected gross in the Condensed Consolidated Balance Sheets, were as follows (in millions):  September 30, 2025December 31, 2024Assets:Other current assets$2.3 $1.8 Other long-term assets (1)47.7 77.5 Total assets$50