Note 17. Segment Information

The Company has three operating segments that are organized on the basis of products, namely (i) Golf Clubs, (ii) Golf Balls and (iii) Gear, Accessories and Other. The Golf Clubs segment consists of Callaway Golf drivers and fairway 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 consists of Callaway Golf and Strata golf balls that are designed, manufactured and sold by the Company. The Gear, Accessories and Other segment consists of golf apparel and footwear, golf bags, golf gloves, travel gear, headwear and other lifestyle and golf-related apparel, gear and accessories, OGIO branded gear and accessories, sales of apparel and accessories from the Company's joint venture in Japan, TravisMathew branded apparel, and royalties from licensing of the Company’s trademarks and service marks for various soft goods products. There are no significant intersegment transactions.

The table below contains information utilized by management to evaluate its operating segments for the interim periods presented (in thousands).



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Net sales:
Golf Clubs	$	232,802		$	196,291		$	490,243		$	389,882
Golf Balls	65,882			48,767			120,804			96,991
Gear, Accessories and Other	97,627			59,490			188,455			126,602
	$	396,311		$	304,548		$	799,502		$	613,475
Income before income taxes:
Golf Clubs	$	50,751		$	38,445		$	117,338		$	73,398
Golf Balls	13,288			10,939			25,813			22,460
Gear, Accessories and Other	24,069			11,877			44,406			21,496
Reconciling items⁽¹⁾	(9,927		)	(13,737		)	(29,426		)	(30,744		)
	$	78,181		$	47,524		$	158,131		$	86,610
Additions to long-lived assets:
Golf Clubs	$	3,291		$	2,817		$	6,189		$	6,612
Golf Balls	5,546			2,553			8,081			5,088
Gear, Accessories and Other	1,176			1,024			2,558			1,526
	$	10,013		$	6,394		$	16,828		$	13,226


(1)	Reconciling items represent corporate general and administrative expenses and other income (expense) not included by management in determining segment profitability.



	June 30, 2018		December 31, 2017
Total Assets:
Golf Clubs	$	299,938	$	321,265
Golf Balls	59,050		57,120
Gear, Accessories and Other	236,961		236,515
Reconciling items⁽¹⁾	479,473		376,257
	$	1,075,422	$	991,157
Goodwill:
Golf Clubs	$	26,530	$	26,904
Golf Balls	—		—
Gear, Accessories and Other	29,525		29,525
	$	56,055	$	56,429


(1)	Total assets by reportable segment 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.