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Segment Information | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Segment Information | Note 18. Segment Information The Company has three operating and reportable 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 personal storage gear and accessories, 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. Due to the recent acquisition of Jack Wolfskin in January 2019 (Note 4), significant growth in the Company's soft goods business is anticipated, and as such, it will be evaluating its global business platform, including its management structure, operations, supply chain and distribution, which may result in changes in the composition of its operating and reportable segments. The table below contains information utilized by management to evaluate its operating segments.
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016
| (In thousands)
Net sales: |  |  |  |  |
Golf Clubs | $ | 717,293 |  |  | $ | 643,096 |  |  | $ | 582,381 |
Golf Balls | 195,654 |  |  | 162,546 |  |  | 152,261 |
Gear, Accessories and Other | 329,887 |  |  | 243,094 |  |  | 136,550 |
| $ | 1,242,834 |  |  | $ | 1,048,736 |  |  | $ | 871,192 |
Income (loss) before income tax: |  |  |  |  |
Golf Clubs | $ | 104,177 |  |  | $ | 77,018 |  |  | $ | 48,489 |
Golf Balls | 27,887 |  |  | 26,854 |  |  | 23,953 |
Gear, Accessories and Other | 56,620 |  |  | 30,631 |  |  | 18,223 |
Reconciling items(1) | (57,412 | ) |  | (66,448 | ) |  | (32,272 | )
| $ | 131,272 |  |  | $ | 68,055 |  |  | $ | 58,393 |
Identifiable assets:(2) |  |  |  |  |
Golf Clubs | $ | 343,506 |  |  | $ | 321,265 |  |  | $ | 276,654 |
Golf Balls | 94,098 |  |  | 57,120 |  |  | 45,758 |
Gear, Accessories and Other | 269,432 |  |  | 236,515 |  |  | 35,788 |
Reconciling items(3) | 345,908 |  |  | 376,257 |  |  | 443,082 |
| $ | 1,052,944 |  |  | $ | 991,157 |  |  | $ | 801,282 |
Additions to long-lived assets:(3) |  |  |  |  |
Golf Clubs | $ | 9,176 |  |  | $ | 11,396 |  |  | $ | 6,163 |
Golf Balls | 18,602 |  |  | 12,178 |  |  | 6,585 |
Gear, Accessories and Other | 9,712 |  |  | 3,790 |  |  | 2,050 |
| $ | 37,490 |  |  | $ | 27,364 |  |  | $ | 14,798 |
Goodwill: |  |  |  |  |
Golf Clubs | $ | 26,183 |  |  | $ | 26,904 |  |  | $ | 25,593 |
Golf Balls | — |  |  | — |  |  | — |
Gear, Accessories and Other(4) | 29,633 |  |  | 29,525 |  |  | — |
| $ | 55,816 |  |  | $ | 56,429 |  |  | $ | 25,593 |
Depreciation and amortization: |  |  |  |  |
Golf Clubs | $ | 3,239 |  |  | $ | 8,769 |  |  | $ | 8,509 |
Golf Balls | 7,926 |  |  | 4,496 |  |  | 4,355 |
Gear, Accessories and Other | 8,783 |  |  | 4,340 |  |  | 3,722 |
| $ | 19,948 |  |  | $ | 17,605 |  |  | $ | 16,586 |
(1) | 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. In 2018, reconciling items include $7,261,000 of net foreign currency exchange gains, and $3,661,000 of transaction costs associated with the Jack Wolfskin acquisition that was completed in January 2019. Reconciling items in 2017 include $11,264,000 of transaction and transitional costs associated with the acquisitions of OGIO and TravisMathew in 2017, and net foreign currency exchange losses of $6,880,000. In 2016, reconciling items include a $17,662,000 gain in connection with the sale of approximately 10.0% of the Company's investment in Topgolf (see Note 8) and net foreign currency exchange losses of $2,691,000.
(2) | 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 $30,349,000 decrease in reconciling items in 2018 compared to 2017 was primarily due to decreases of $21,693,000 in cash and cash equivalents and $16,319,000 in deferred tax assets related to utilization of net operating losses, tax credits, and tax reform regulations released in 2018. The $66,825,000 decrease in reconciling items in 2017 compared to 2016 was primarily due a $40,301,000 decrease in cash and cash equivalents primarily to fund the OGIO and TravisMathew acquisitions in 2017, combined with a $23,535,000 decrease in net deferred tax assets primarily due to the utilization of net operating losses and the reevaluation of deferred tax assets as a result of the Tax Act.
(3) | Additions to long-lived assets are comprised of purchases of property, plant and equipment.
(4) | 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,
| 2018 |  | 2017 |  | 2016
| (In thousands)
Net sales: |  |  |  |  |
Woods | $ | 304,459 |  |  | $ | 307,865 |  |  | $ | 216,094 |
Irons | 316,463 |  |  | 250,636 |  |  | 278,562 |
Putters | 96,371 |  |  | 84,595 |  |  | 87,725 |
Golf Balls | 195,654 |  |  | 162,546 |  |  | 152,261 |
Accessories and Other | 329,887 |  |  | 243,094 |  |  | 136,550 |
| $ | 1,242,834 |  |  | $ | 1,048,736 |  |  | $ | 871,192 |
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)
2018 |  |  |
United States | $ | 706,332 |  |  | $ | 422,803 |
Europe | 149,602 |  |  | 6,855 |
Japan | 223,707 |  |  | 8,723 |
Rest of Asia | 92,026 |  |  | 4,200 |
Other foreign countries | 71,167 |  |  | 10,378 |
| $ | 1,242,834 |  |  | $ | 452,959 |
2017(2) |  |  |
United States | $ | 564,648 |  |  | $ | 403,493 |
Europe | 140,947 |  |  | 7,681 |
Japan | 199,372 |  |  | 7,635 |
Rest of Asia | 76,530 |  |  | 3,717 |
Other foreign countries | 67,239 |  |  | 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 |
(1) | Long-lived assets include all non-current assets of the Company except deferred tax assets.
(2) | Prior period amounts have been reclassified to conform to current year presentation of regional sales related to OGIO-branded products.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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