Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Valuation of Foreign Currency Exchange Contracts by Pricing Levels

The following table summarizes the valuation of the Company’s foreign currency forward contracts, cross-currency debt swap contracts and interest rate hedge contracts (see Note 19) that are measured at fair value on a recurring basis as of December 31, 2020 and 2019 (in thousands):


	Fair Value		Level 1		Level 2		Level 3
2020
Foreign currency forward contracts — asset position	$	90	$	—	$	90	$	—
Foreign currency forward contracts — liability position	(1,553)		—		(1,553)		—

Interest rate hedge contracts — liability position	(17,922)		—		(17,922)		—
	$	(19,385)	$	—	$	(19,385)	$	—
2019
Foreign currency forward contracts — asset position	$	61	$	—	$	61	$	—
Foreign currency forward contracts — liability position	(766)		—		(766)		—

Cross-currency debt swap contracts — asset position	6,163		—		6,163		—
Cross-currency debt swap contracts — liability position	(25)		—		(25)		—


Interest rate hedge contracts — liability position	(8,894)		—		(8,894)		—
	$	(3,461)	$	—	$	(3,461)	$	—

Fair Value, by Balance Sheet Grouping

The table below illustrates information about fair value relating to the Company’s financial assets and liabilities that are recognized in the accompanying consolidated balance sheets as of December 31, 2020 and 2019 (in thousands).


	December 31, 2020				December 31, 2019
	Carrying Value		Fair Value		Carrying Value		Fair Value

Term Loan Facility(1)	$	441,600	$	443,243	$	446,400	$	450,864
2020 Japan Term Loan Facility(2)	$	18,390	$	16,083	$	—	$	—
Convertible Notes(3)	$	258,750	$	414,191	$	—	$	—
U.S. Asset-Based Revolving Credit Facility(4)	$	22,130	$	22,130	$	114,480	$	114,480
Japan ABL Facility(4)	$	—	$	—	$	30,100	$	30,100
Equipment Notes(5)	$	31,822	$	29,385	$	19,715	$	19,715

(1)In January 2019, the Company entered into the Term Loan Facility. The fair value of this debt is based on quoted prices for similar instruments in active markets combined with quantitative pricing models, and is therefore categorized within Level 2 of the fair value hierarchy. See Note 7 for further information.

(2)In August 2020, the Company entered into the 2020 Japan Term Loan Facility. The fair value is categorized within Level 2 of the fair value hierarchy. The Company used discounted cash flows and market-based expectations for interest rates, credit risk, and the contractual terms of the debt to derive the fair value. See Note 7 for further information.

(3)In May 2020, the Company issued $258,750,000 of 2.75% Convertible Notes due in 2026. The fair value of this debt is based on quoted prices for similar instruments in active markets combined with quantitative pricing models, and is therefore categorized within Level 2 of the fair value hierarchy. See Note 7 for further information.

(4)The carrying value of the amounts outstanding under the Company's ABL Facility and Japan ABL Facility approximates the fair value due to the short-term nature of these obligations. The fair value of this debt is categorized within Level 2 of the fair value hierarchy based on the observable market borrowing rates. See Note 7 for information on the Company's credit facilities, including certain risks and uncertainties related thereto.

(5)The Company entered into equipment notes in 2017, 2019 and 2020 that are secured by certain equipment at the Company's golf ball manufacturing facility. The fair value of this debt is categorized within Level 2 of the fair value hierarchy. The Company used discounted cash flows and market-based expectations for interest rates, credit risk, and the contractual terms of the debt to derive the fair value. See Note 7 for further information.