XML 34 R22.htm IDEA: XBRL DOCUMENT
v3.19.2

Fair Value of Financial Instruments | 6 Months Ended
--- | ---
Jun. 30, 2019
Fair Value Disclosures [Abstract] |
Fair Value of Financial Instruments | Note 15. Fair Value of Financial Instruments Certain of the Company’s financial assets and liabilities are measured at fair value on a recurring and nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability (the exit price) in the principal and most advantageous market for the asset or liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified using the following three-tier hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities; Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and Level 3: Fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The following table summarizes the valuation of the Company’s foreign currency forward contracts (see Note 16) that are measured at fair value on a recurring basis by the above pricing levels at June 30, 2019 and December 31, 2018 (in thousands):
| Fair Value |  | Level 1 |  | Level 2 |  | Level 3
June 30, 2019 |  |  |  |  |  |  |
Foreign currency forward contracts—asset position | $ | 2,084 |  |  | $ | — |  |  | $ | 2,084 |  |  | $ | — |
Foreign currency forward contracts—liability position | (351 | ) |  | — |  |  | (351 | ) |  | — |
Cross-currency debt swap agreements—asset position | 5,144 |  |  | — |  |  | 5,144 |  |  | — |
Cross-currency debt swap agreements—liability position | (6,255 | ) |  | — |  |  | (6,255 | ) |  | — |
Interest rate hedge agreements—asset position | — |  |  | — |  |  | — |  |  | — |
Interest rate hedge agreements—liability position | (7,855 | ) |  | — |  |  | (7,855 | ) |  | — |
| $ | (7,233 | ) |  | $ | — |  |  | $ | (7,233 | ) |  | $ | — |
December 31, 2018 |  |  |  |  |  |  |
Foreign currency forward contracts—asset position | $ | 4,539 |  |  | $ | — |  |  | $ | 4,539 |  |  | $ | — |
Foreign currency forward contracts—liability position | (236 | ) |  | — |  |  | (236 | ) |  | — |
| $ | 4,303 |  |  | $ | — |  |  | $ | 4,303 |  |  | $ | — |
The fair value of the Company’s foreign currency forward contracts is based on observable inputs that are corroborated by market data. Observable inputs include broker quotes, daily market foreign currency rates and forward pricing curves. Remeasurement gains and losses on foreign currency forward contracts designated as cash flow hedges are recorded in other comprehensive income, and in other income (expense) for non-designated foreign currency forward contracts (see Note 16). Disclosures about the Fair Value of Financial Instruments The carrying values of cash and cash equivalents at June 30, 2019 and December 31, 2018 are categorized within Level 1 of the fair value hierarchy. The table below summarizes information about fair value relating to the Company’s financial assets and liabilities that are recognized in the accompanying consolidated condensed balance sheets as of June 30, 2019 and December 31, 2018, as well as the fair value of contingent contracts that represent financial instruments (in thousands).
| June 30, 2019 |  | December 31, 2018
| Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Term Loan Facility(1) | $ | 461,966 |  |  | $ | 461,966 |  |  | $ | — |  |  | $ | — |
Primary Asset-Based Revolving Credit Facility(2) | $ | 165,467 |  |  | $ | 165,467 |  |  | $ | 40,300 |  |  | $ | 40,300 |
Equipment Note(3) | $ | 8,503 |  |  | $ | 8,503 |  |  | $ | 9,629 |  |  | $ | 9,629 |
Standby letters of credit(4) | $ | 1,177 |  |  | $ | 1,177 |  |  | $ | 1,187 |  |  | $ | 1,187 |
(1) | In January 2019, the Company entered into the Term Loan Facility. The fair value of this debt is categorized within Level 2 of the fair value hierarchy. See Note 5 for further information.
(2) | The carrying value of the amounts outstanding under the Company's 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. See Note 5 for information on the Company's credit facilities, including certain risks and uncertainties related thereto.
(3) | In December 2017, the Company entered into the Equipment Note 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. See Note 5 for further information.
(4) | The carrying value of the Company's standby letters of credit approximates the fair value as they represent the Company’s contingent obligation to perform in accordance with the underlying contracts. The fair value of this contingent obligation is categorized within Level 2 of the fair value hierarchy.
Nonrecurring Fair Value Measurements The Company measures certain assets at fair value on a nonrecurring basis at least annually or more frequently if certain indicators are present. These assets include long-lived assets, goodwill, non-amortizing intangible assets and investments that are written down to fair value when they are held for sale or determined to be impaired. During each of the six months ended June 30, 2019 and 2018, there were no impairment indicators related to the Company's assets that are measured at fair value on a nonrecurring basis. Assets purchased in connection with the acquisitions of Jack Wolfskin were valued at their fair value on the date of purchase (see Note 4).

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration