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Segment Information
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Information
Note 18. Segment Information
The Company has two operating segments that are organized on the basis of products, namely the golf clubs segment and golf balls segment. The golf clubs segment consists of Callaway Golf woods, hybrids, irons and wedges and Odyssey putters. This segment also includes golf apparel and footwear, golf bags, golf gloves, travel gear, headwear and other golf-related accessories, in addition to royalties from licensing of the Company’s trademarks and service marks and sales of pre-owned golf clubs. The golf balls segment consists of Callaway Golf and Strata balls that are designed, manufactured and sold by the Company. There are no significant intersegment transactions.
The table below contains information utilized by management to evaluate its operating segments.
 
Years Ended December 31,
 
2015
 
2014
 
2013
 
(In thousands)
Net sales:
 
 
 
 
 
Golf Clubs
$
700,649

 
$
749,956

 
$
711,697

Golf Balls
143,145

 
136,989

 
131,104

 
$
843,794

 
$
886,945

 
$
842,801

Income (loss) before income tax:
 
 
 
 
 
Golf Clubs(1)
$
52,999

 
$
50,891

 
$
32,738

Golf Balls(1)
17,724

 
15,222

 
(3,472
)
Reconciling items(2)
(50,660
)
 
(44,474
)
 
(42,588
)
 
$
20,063

 
$
21,639

 
$
(13,322
)
Identifiable assets:(3)
 
 
 
 
 
Golf Clubs
$
316,079

 
$
316,710

 
$
374,473

Golf Balls
37,394

 
37,445

 
49,261

Reconciling items(3)
277,751

 
270,656

 
240,129

 
$
631,224

 
$
624,811

 
$
663,863

Additions to long-lived assets:
 
 
 
 
 
Golf Clubs
$
14,111

 
$
9,425

 
$
13,250

Golf Balls
2,154

 
327

 
1,163

 
$
16,265

 
$
9,752

 
$
14,413

Goodwill:
 
 
 
 
 
Golf Clubs
$
26,500

 
$
27,821

 
$
29,212

Golf Balls
—

 
—

 
—

 
$
26,500

 
$
27,821

 
$
29,212

Depreciation and amortization:
 
 
 
 
 
Golf Clubs
$
13,084

 
$
18,505

 
$
21,019

Golf Balls
4,295

 
2,731

 
4,524

 
$
17,379

 
$
21,236

 
$
25,543

 
(1)
The tables below includes total charges absorbed by the Company’s operating segments from the Cost Reduction Initiatives discussed in Note 17 (in thousands):
 
Year Ended December 31, 2013
 
Golf Clubs
 
Golf Balls
 
Corporate G&A
 
Total
Cost Reduction Initiatives
$
6,395

 
$
6,973

 
 
$
3,188

 
$
16,556

(2)
Reconciling items represent the deduction of corporate general and administration expenses and other income (expenses), which are not utilized by management in determining segment profitability. The $6,186,000 increase in reconciling items in 2015 compared to 2014 includes increases in employee costs and professional fees, partially offset by a decrease in legal expenses combined with an increase in net foreign currency gains.
(3)
Identifiable assets are comprised of net inventory, certain property, plant and equipment, intangible assets and goodwill. Reconciling items represent unallocated corporate assets not segregated between the two segments.
The Company’s net sales by product category are as follows:
 
Years Ended December 31,
 
2015
 
2014
 
2013
 
(In thousands)
Net sales:
 
 
 
 
 
Woods
$
222,193

 
$
269,468

 
$
249,809

Irons
205,522

 
200,174

 
178,771

Putters
86,293

 
81,161

 
87,787

Golf Balls
143,145

 
136,989

 
131,104

Accessories and Other
186,641

 
199,153

 
195,330

 
$
843,794

 
$
886,945

 
$
842,801


The Company markets its products in the United States and internationally, with its principal international markets being Japan and Europe. The tables below contain information about the geographical areas in which the Company operates. Revenues are attributed to the location to which the product was shipped. Long-lived assets are based on location of domicile.
 
Sales
 
Long-Lived
Assets
(excluding
deferred tax
assets)
 
(In thousands)
2015
 
 
 
United States
$
446,474

 
$
205,952

Europe
125,116

 
8,414

Japan
138,031

 
4,445

Rest of Asia
70,315

 
2,868

Other foreign countries
63,858

 
11,096

 
$
843,794

 
$
232,775

2014
 
 
 
United States
$
421,773

 
$
210,152

Europe
134,401

 
7,070

Japan
166,162

 
4,873

Rest of Asia
89,603

 
2,936

Other foreign countries
75,006

 
13,402

 
$
886,945

 
$
238,433

2013
 
 
 
United States
$
401,478

 
$
206,111

Europe
121,477

 
7,905

Japan
161,598

 
6,491

Rest of Asia
84,073

 
3,627

Other foreign countries
74,175

 
15,827

 
$
842,801

 
$
239,961