| Valuation of Foreign Currency Exchange Contracts by Pricing Levels |
The following table summarizes the valuation of the Company’s foreign currency forward contracts (see Note 15) that are measured at fair value on a recurring basis by the above pricing levels at March 31, 2018 and December 31, 2017 (in thousands): | | | | | | | | | | | | | | | | | | Fair Value | | Level 1 | | Level 2 | | Level 3 | March 31, 2018 | | | | | | | | Foreign currency forward contracts—asset position | $ | 1,119 |
| | $ | — |
| | $ | 1,119 |
| | $ | — |
| Foreign currency forward contracts—liability position | (4,684 | ) | | — |
| | (4,684 | ) | | — |
| | $ | (3,565 | ) | | $ | — |
| | $ | (3,565 | ) | | $ | — |
| December 31, 2017 | | | | | | | | Foreign currency forward contracts—asset position | $ | 179 |
| | $ | — |
| | $ | 179 |
| | $ | — |
| Foreign currency forward contracts—liability position | (239 | ) | | — |
| | (239 | ) | | — |
| | $ | (60 | ) | | $ | — |
| | $ | (60 | ) | | $ | — |
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| Fair Value Relating to Financial Assets and Liabilities |
The carrying values of cash and cash equivalents at March 31, 2018 and December 31, 2017 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 March 31, 2018 and December 31, 2017, as well as the fair value of contingent contracts that represent financial instruments (in thousands). | | | | | | | | | | | | | | | | | | March 31, 2018 | | December 31, 2017 | | Carrying Value | | Fair Value | | Carrying Value | | Fair Value | Primary asset-based revolving credit facility(1) | $ | 155,000 |
| | $ | 155,000 |
| | $ | 74,000 |
| | $ | 74,000 |
| Japan ABL Facilities(1) | $ | 23,523 |
| | $ | 23,523 |
| | $ | 13,755 |
| | $ | 13,755 |
| Equipment Note(2) | $ | 11,277 |
| | $ | 11,277 |
| | $ | 11,815 |
| | $ | 11,815 |
| Standby letters of credit(3) | $ | 1,271 |
| | $ | 1,271 |
| | $ | 887 |
| | $ | 887 |
|
| | (1) | The carrying value of the amounts outstanding under the Company's primary asset-based revolving credit facility and Japan ABL Facilities 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 4 for information on the Company's credit facilities, including certain risks and uncertainties related thereto. |
| | (2) | In December 2017, the Company entered into the Equipment Note secured by certain equipment at the Company's golf ball manufacturing facility. As of March 31, 2018 and December 31, 2017, the Company had $11,277,000 and $11,815,000, respectively, outstanding under the Equipment Note. The fair value of this debt is categorized within Level 2 of the fair value hierarchy. See Note 4 for further information. |
| | (3) | 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. |
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