XML 38 R24.htm IDEA: XBRL DOCUMENT v3.3.1.900
Restructuring Initiatives
 12 Months Ended
Dec. 31, 2015
Restructuring and Related Activities [Abstract]  
Restructuring Initiatives
Note 17. Restructuring Initiatives
Cost Reduction Initiatives
In December 2013, the Company completed its cost reduction initiatives that were announced in July 2012 (the “Cost Reduction Initiatives”), which streamlined and simplified the Company’s organizational structure and changed the manner in which the Company approaches and operates its business.
During the year ended December 31, 2013, the Company recognized total cash and non-cash charges of $16,556,000 in connection with these initiatives. Amounts recognized in cost of sales, operating expenses and other income (expense) totaled $11,149,000, $4,719,000 and $688,000, respectively, during the year ended December 31, 2013. Non-cash charges recognized during 2013 included lower of cost or market adjustments to inventory as well as inventory write-offs related to the Company's golf apparel, golf footwear and GPS device businesses. In the aggregate through December 31, 2013, the Company recognized total charges of approximately $70,600,000 in connection with these initiatives, of which approximately two-thirds were non-cash charges. The Company did not recognize any charges in connection with the Cost Reduction Initiatives during the years ended December 31, 2015 or 2014. See Note 18 for charges absorbed by the Company’s operating segments.
The table below depicts the activity and liability balances recorded relating to the Cost Reduction Initiatives during the years ended December 31, 2014, and 2013. Amounts payable as of December 31, 2013 are included in accrued employee compensation and benefits and accounts payable and accrued expenses in the accompanying consolidated balance sheets. There were no amounts payable as of December 31, 2014.
 
Cost Reduction Initiatives
(In thousands)
Workforce
Reductions
 
Transition
Costs
 
Asset
Write-offs
 
Total
Restructuring payable balance, December 31, 2012
$
4,531

 
$
591

 
$
—

 
$
5,122

Charges to cost and expense(1)
2,977

 
8,777

 
4,802

 
16,556

Non-cash items
—

 
(5,130
)
 
(4,802
)
 
(9,932
)
Cash payments
(6,702
)
 
(1,737
)
 
—

 
(8,439
)
Restructuring payable balance, December 31, 2013
$
806

 
$
2,501

 
$
—

 
$
3,307

Cash payments
$
(806
)
 
$
(2,501
)
 
$
—

 
$
(3,307
)
Restructuring payable balance, December 31, 2014
$
—

 
$
—

 
$
—

 
$
—

 

(1) The pre-tax charges for the year ended December 31, 2013 included the following:
•
$2,977,000 in continued costs associated with workforce reductions, in addition to $4,459,000 in other transition costs;
•
$5,579,000 for the write-off of assets and exit costs associated with the reorganization of golf ball manufacturing (see Note 11); and
•
$3,541,000 associated with the transition of the Company's golf apparel, golf footwear and integrated device businesses in the United States and Europe to a third-party licensing arrangement.