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Joint Venture
9 Months Ended
Sep. 30, 2016
Noncontrolling Interest [Abstract]  
Joint Venture
Note 6. Joint Venture
Effective July 1, 2016, the Company completed the previously announced joint venture with its long-time apparel licensee, TSI Groove & Sports Co, Ltd., ("TSI"), a premier apparel manufacturer in Japan. The new venture is named Callaway Apparel K.K. and includes the design, manufacture and distribution of Callaway-branded apparel, footwear and headwear in Japan. The Company contributed $10,333,000, primarily in cash, for a 52% ownership of the joint venture, and TSI contributed $9,538,000, primarily in inventory, for the remaining 48%. The valuation of contributed assets is preliminary and subject to change upon completion of this process. Changes in final values are not expected to be material to the consolidated condensed financial statements. The Company has a majority voting percentage on matters pertaining to the business operations and significant management decisions of the joint venture, and as such, the Company is required to consolidate the financial results of the joint venture with the financial results of the Company. The joint venture was consolidated one month in arrears.
As a result of the consolidation, during the three and nine months ended September 30, 2016, the Company recognized $11,452,000 in net sales from the joint venture and recorded net income attributable to the non-controlling interest of $127,000 in its consolidated condensed statement of operations. At September 30, 2016, the Company recognized a non-controlling interest of $9,589,000 in its consolidated condensed balance sheet and consolidated condensed statement of shareholders' equity.