Investments

3 Months Ended

Mar. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Investments

Note 10. Investments

Investment in Topgolf International, Inc.

Prior to the completion of the merger with Topgolf, the Company owned a minority interest of approximately 14.3% in Topgolf, the owner and operator of Topgolf entertainment centers. On March 8, 2021, the Company completed its previously announced merger with Topgolf, in which the Company issued shares of its common stock in exchange for 100% of the outstanding equity of Topgolf (see Note 6). As a result of the merger, the Company's shares of Topgolf comprised of common stock and various classes of preferred stock were stepped up to their fair value and applied toward the total purchase consideration in the merger. The fair value adjustment resulted in a gain of $252,531,000, which the Company recognized in other income in the first quarter of 2021.

Immediately prior to the merger and at December 31, 2020, the Company's total investment in Topgolf was $111,442,000. The Company accounted for this investment at cost less impairments in accordance with ASC 2016-01. Prior to the merger, the Company did not record any impairments with respect to this investment.

Investment in Full Swing Golf Holdings, Inc.

In connection with the merger with Topgolf, the Company acquired a strategic investment in Full Swing Golf Holdings, Inc. (“Full Swing”), which own indoor golf simulation technology, with patented dual-tracking technology, which delivers golf ball tracking data and measures ball flight indoors. The Company accounts for this investment at cost less impairments in accordance with ASC 2016-01. As of March 31, 2021, Topgolf held a 17.7% interest in Full Swing and the investment had a preliminary fair value of $7,250,000. The Company is the processes of assessing the fair value of this investment in connection with the merger with Topgolf.