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Segment Information | 12 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
Segment Information | Note 17. Segment Information The Company has three operating segments, namely Golf Clubs, Golf Balls and Gear, Accessories and Other as of December 31, 2017. Prior to 2017, the Company's operating segments consisted of Golf Clubs and Golf Balls. Due to the recent growth in the accessories and other product category within Golf Clubs from the formation of the apparel joint venture in Japan as well as the Company's acquisition of OGIO in January 2017, the Company reassessed its operating segments during the first quarter of 2017, consistent with the way management reviews its business operations on an ongoing basis. As a result, and based on the Company's assessment, as of January 1, 2017, the Company added a third operating segment, Gear, Accessories and Other, which includes soft goods products and licensing revenues that were formerly in the accessories and other product category within Golf Clubs. Soft goods products include golf apparel and footwear, golf bags, golf gloves, travel gear, headwear and other golf-related accessories, retail apparel sales from the Company's joint venture in Japan, and OGIO branded products as of January 2017. Licensing revenues include royalties from licensing of the Company’s trademarks and service marks for various soft goods. TravisMathew branded products are also included in this operating segment as of August 2017. Subsequent to this change, the Golf Clubs operating segment consists of Callaway Golf woods, hybrids, irons and wedges, Odyssey putters, including Toulon Design putters by Odyssey, packaged sets and sales of pre-owned golf clubs. At the product category level, sales of packaged sets are included within irons, and sales of pre-owned golf clubs are included in the respective woods, irons and putters product categories. The Golf Balls segment continues to consist of Callaway Golf and Strata golf balls that are designed, manufactured and sold by the Company. As a result of these changes, prior period amounts have been reclassified in order to make prior periods comparable to 2017. The Company's operating segments are organized on the basis of products. There are no significant intersegment transactions. The table below contains information utilized by management to evaluate its operating segments.
| Years Ended December 31,
| 2017 |  | 2016(1) |  | 2015(1)
| (In thousands)
Net sales: |  |  |  |  |
Golf Clubs | $ | 643,096 |  |  | $ | 582,381 |  |  | $ | 581,450 |
Golf Balls | 162,546 |  |  | 152,261 |  |  | 143,173 |
Gear, Accessories and Other | 243,094 |  |  | 136,550 |  |  | 119,171 |
| $ | 1,048,736 |  |  | $ | 871,192 |  |  | $ | 843,794 |
Income (loss) before income tax: |  |  |  |  |
Golf Clubs | $ | 77,018 |  |  | $ | 48,489 |  |  | $ | 32,630 |
Golf Balls | 26,854 |  |  | 23,953 |  |  | 18,956 |
Gear, Accessories and Other | 30,631 |  |  | 18,223 |  |  | 19,137 |
Reconciling items(2) | (66,448 | ) |  | (32,272 | ) |  | (50,660 | )
| $ | 68,055 |  |  | $ | 58,393 |  |  | $ | 20,063 |
Identifiable assets:(3) |  |  |  |  |
Golf Clubs | $ | 321,265 |  |  | $ | 276,654 |  |  | $ | 295,659 |
Golf Balls | 57,120 |  |  | 45,758 |  |  | 47,884 |
Gear, Accessories and Other | 236,515 |  |  | 35,788 |  |  | 36,429 |
Reconciling items(3) | 376,257 |  |  | 443,082 |  |  | 251,252 |
| $ | 991,157 |  |  | $ | 801,282 |  |  | $ | 631,224 |
Additions to long-lived assets:(4) |  |  |  |  |
Golf Clubs | $ | 11,396 |  |  | $ | 6,163 |  |  | $ | 6,774 |
Golf Balls | 12,178 |  |  | 6,585 |  |  | 7,238 |
Gear, Accessories and Other | 3,790 |  |  | 2,050 |  |  | 2,253 |
| $ | 27,364 |  |  | $ | 14,798 |  |  | $ | 16,265 |
Goodwill: |  |  |  |  |
Golf Clubs | $ | 26,904 |  |  | $ | 25,593 |  |  | $ | 26,500 |
Golf Balls | — |  |  | — |  |  | — |
Gear, Accessories and Other(5) | 29,525 |  |  | — |  |  | — |
| $ | 56,429 |  |  | $ | 25,593 |  |  | $ | 26,500 |
Depreciation and amortization: |  |  |  |  |
Golf Clubs | $ | 8,769 |  |  | $ | 8,509 |  |  | $ | 8,907 |
Golf Balls | 4,496 |  |  | 4,355 |  |  | 4,566 |
Gear, Accessories and Other | 4,340 |  |  | 3,722 |  |  | 3,906 |
| $ | 17,605 |  |  | $ | 16,586 |  |  | $ | 17,379 |
(1) | Prior period amounts have been reclassified to conform to the current year presentation as the result of the change in operating segments as of January 1, 2017.
(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 $34,176,000 increase in reconciling items in 2017 compared to 2016 was primarily due $11,264,000 in one-time transaction and transitional costs associated with the acquisitions of OGIO in January 2017 and TravisMathew in August 2017, a $17,662,000 gain recognized in the second quarter of 2016 in connection with the sale of approximately 10.0% of the Company's investment in Topgolf (see Note 7), combined with increases of $2,286,000 in corporate stock compensation expense and $2,164,000 in interest expense, partially offset by a $4,189,000 increase in foreign currency exchange losses.
(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 three segments including cash and cash equivalents, net accounts receivable, and deferred tax assets. The $66,825,000 decrease in reconciling items in 2017 compared to 2016 was primarily due Topgolf investment. The $191,830,000 increase in reconciling items in 2016 compared to 2015 was primarily due to a benefit of $156,600,000 related to the reversal of the Company's valuation allowance on its U.S. deferred tax assets. This reversal was partially offset by the recognition of $15,974,000 in income taxes payable on the Company's U.S. business (see Note 10).
(4) | Additions to long-lived assets are comprised of purchases of property, plant and equipment.
(5) | The $30,836,000 increase in goodwill in 2017 compared to 2016 was primarily as a result of the acquisitions of OGIO and TravisMathew in 2017.
The Company’s net sales by product category are as follows:
| Years Ended December 31,
| 2017 |  | 2016 |  | 2015
| (In thousands)
Net sales: |  |  |  |  |
Woods | $ | 307,865 |  |  | $ | 216,094 |  |  | $ | 222,193 |
Irons | 250,636 |  |  | 278,562 |  |  | 205,522 |
Putters | 84,595 |  |  | 87,725 |  |  | 86,293 |
Golf Balls | 162,546 |  |  | 152,261 |  |  | 143,145 |
Accessories and Other | 243,094 |  |  | 136,550 |  |  | 186,641 |
| $ | 1,048,736 |  |  | $ | 871,192 |  |  | $ | 843,794 |
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(1)
| (In thousands)
2017 |  |  |
United States | $ | 566,365 |  |  | $ | 403,493 |
Europe | 139,515 |  |  | 7,681 |
Japan | 199,331 |  |  | 7,635 |
Rest of Asia | 76,540 |  |  | 3,717 |
Other foreign countries | 66,985 |  |  | 11,248 |
| $ | 1,048,736 |  |  | $ | 433,774 |
2016 |  |  |
United States | $ | 447,613 |  |  | $ | 199,617 |
Europe | 122,805 |  |  | 7,260 |
Japan | 170,760 |  |  | 6,201 |
Rest of Asia | 67,099 |  |  | 2,668 |
Other foreign countries | 62,915 |  |  | 10,405 |
| $ | 871,192 |  |  | $ | 226,151 |
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 |
(1) | Long-lived assets include all non-current assets of the Company except deferred tax assets.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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