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 September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Net sales:
Golf Clubs	$	142,396		$	146,113		$	632,639		$	535,995
Golf Balls	44,661			39,071			165,465			136,062
Gear, Accessories and Other	75,597			58,420			264,052			185,022
	$	262,654		$	243,604		$	1,062,156		$	857,079
Income before income taxes:
Golf Clubs	$	13,587		$	10,420		$	130,925		$	83,818
Golf Balls	4,201			5,040			30,014			27,500
Gear, Accessories and Other	8,482			6,420			52,888			27,916
Reconciling items⁽¹⁾	(15,195		)	(17,305		)	(44,621		)	(48,049		)
	$	11,075		$	4,575		$	169,206		$	91,185
Additions to long-lived assets:
Golf Clubs	$	941		$	1,316		$	7,130		$	7,928
Golf Balls	5,279			2,784			13,360			7,872
Gear, Accessories and Other	3,121			767			5,679			2,293
	$	9,341		$	4,867		$	26,169		$	18,093


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



	September 30, 2018		December 31, 2017
Total Assets:
Golf Clubs	$	283,547	$	321,265
Golf Balls	70,025		57,120
Gear, Accessories and Other	247,038		236,515
Reconciling items⁽¹⁾	382,091		376,257
	$	982,701	$	991,157
Goodwill:
Golf Clubs	$	26,473	$	26,904
Golf Balls	—		—
Gear, Accessories and Other	29,633		29,525
	$	56,106	$	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.