Segment Information (Tables)

12 Months Ended

Dec. 31, 2017

Information Utilized by Management to Evaluate its Operating Segments

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.

Net Sales By Product Category

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

Revenues and Long Lived Assets

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.