XML 31 R21.htm IDEA: XBRL DOCUMENT v3.23.2
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
Fair Value Measurements
We measure our financial assets and liabilities at fair value on a recurring basis using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Authoritative guidance establishes three levels of the fair value hierarchy as follows:
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 carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses and other current liabilities approximate fair value due to their short-term nature, and are therefore categorized within Level 1 of the fair value hierarchy.
Hedging instruments are re-measured on a recurring basis using broker quotes, daily market foreign currency rates, and interest rate curves as applicable (see Note 14) and are therefore categorized within Level 2 of the fair value hierarchy.
The following table summarizes the valuation of our foreign currency forward contracts and interest rate hedge agreements (see Note 14) that are measured at fair value on a recurring basis, and are classified within Level 2 of the fair value hierarchy as of June 30, 2023 and December 31, 2022 (in millions):
Fair
Value		Level 2
June 30, 2023
Foreign currency forward contracts—asset position$11.4 $11.4 
Foreign currency forward contracts—liability position(4.6)(4.6)
Interest rate hedge agreements—asset position9.5 9.5 
$16.3 $16.3 
December 31, 2022
Foreign currency forward contracts—asset position$0.2 $0.2 
Foreign currency forward contracts—liability position(5.4)(5.4)
Interest rate hedge agreements—asset position7.2 7.2
$2.0 $2.0 
There were no transfers of financial instruments between the levels of the fair value hierarchy during the three and six months ended June 30, 2023 and 2022.
Disclosures about the Fair Value of Financial Instruments
Fair value of financial instruments was derived using Level 2 inputs of the fair value hierarchy and included quoted prices for similar instruments in active markets, quantitative pricing models, observable market borrowing rates, as well as other observable inputs and applicable valuation techniques. The table below presents information about the fair value of our financial liabilities, and is provided for comparative purposes only relative to the carrying values of our financial instruments recognized in the condensed consolidated balance sheets as of June 30, 2023 and consolidated balance sheets as of December 31, 2022 (in millions):
 June 30, 2023December 31, 2022
Carrying
Value		Fair
Value		Carrying
Value		Fair 
Value
U.S. Asset-Based Revolving Credit Facility$54.9 $54.9 $181.1 $181.1 
2022 Japan ABL Facility$41.6 $41.6 $38.2 $38.2 
2023 Term Loan B$1,246.9 $1,244.6 $— $— 
Convertible Notes$258.3 $334.9 $258.3 $337.7 
Equipment Notes$23.4 $20.2 $27.8 $23.6 
Mortgage Loans$45.5 $51.8 $45.9 $55.3 
Term Loan B$— $— $432.0 $431.1 
Topgolf Term Loan$— $— $336.9 $337.1 
Topgolf Revolving Credit Facility$— $— $110.0 $110.0 
In March 2023, we completed a modification of our U.S. Asset-Based Revolving Credit Facility, Term Loan B and Topgolf Credit Facilities. For further information about the modification of these facilities, see Note 5, “Financing Arrangements.”
Non-recurring Fair Value Measurements
We measure certain long-lived assets, goodwill, non-amortizing intangible assets and investments at fair value on a non-recurring basis, at least annually or more frequently if impairment indicators are present. These assets are written down to fair value when they are held for sale or are determined to be impaired. We did not recognize any impairments during the three and six months ended June 30, 2023 and 2022.