XML 30 R25.htm IDEA: XBRL DOCUMENT
v3.19.3

Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2019
Segment Reporting [Abstract] |
Segment Information | Note 18. Segment Information As of December 31, 2018, the Company had three operating and reportable segments, namely Golf Clubs, Golf Balls and Gear, Accessories and Other. Due to the Company's acquisition of Jack Wolfskin in January 2019, combined with the continued growth of TravisMathew branded soft goods, the Company has experienced significant growth in its soft goods business. As of January 1, 2019, the Company re-evaluated its global business platform, including its management structure, operations, supply chain and distribution, in addition to how it reviews the results of its operations to assess its performance and allocate resources and also reassessed its operating segments. Based on this assessment, the Company concluded it has two reportable operating segments: Golf Equipment operating segment and Apparel, Gear and Other operating segment. The Golf Equipment operating segment, which is comprised of golf club and golf ball products, includes Callaway Golf branded woods, hybrids, irons, wedges, Odyssey putters, including Toulon Design putters by Odyssey, packaged sets, Callaway Golf and Strata branded golf balls and sales of pre-owned golf clubs. The Apparel, Gear and Other operating segment includes the newly acquired Jack Wolfskin outdoor apparel, gear and accessories business, the TravisMathew golf and lifestyle apparel and accessories business, and the Callaway and Ogio business, which consists of golf apparel and accessories, storage gear for sport and personal use, and royalties from licensing of the Company’s trademarks and service marks for various soft goods products. Comparative periods have been reclassified to reflect these changes.There are no significant intersegment transactions. The tables below contain 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,
| 2019 |  | 2018(1) |  | 2019 |  | 2018(1)
Net sales: |  |  |  |  |  |  |
Golf Equipment | $ | 210,502 |  |  | $ | 187,057 |  |  | $ | 826,474 |  |  | $ | 798,104 |
Apparel, Gear and Other | 215,715 |  |  | 75,597 |  |  | 562,648 |  |  | 264,052 |
| $ | 426,217 |  |  | $ | 262,654 |  |  | $ | 1,389,122 |  |  | $ | 1,062,156 |
Income before income taxes: |  |  |  |  |  |  |
Golf Equipment | $ | 23,124 |  |  | $ | 17,003 |  |  | $ | 148,782 |  |  | $ | 158,460 |
Apparel, Gear and Other | 34,877 |  |  | 8,016 |  |  | 68,909 |  |  | 51,547 |
Reconciling items(2) | (24,825 | ) |  | (13,944 | ) |  | (90,352 | ) |  | (40,801 | )
| $ | 33,176 |  |  | $ | 11,075 |  |  | $ | 127,339 |  |  | $ | 169,206 |
Additions to long-lived assets: |  |  |  |  |  |  |
Golf Equipment | $ | 7,648 |  |  | $ | 6,220 |  |  | $ | 20,989 |  |  | $ | 20,490 |
Apparel, Gear and Other | 6,783 |  |  | 3,121 |  |  | 15,465 |  |  | 5,679 |
| $ | 14,431 |  |  | $ | 9,341 |  |  | $ | 36,454 |  |  | $ | 26,169 |
(1) | The Company changed its operating segments as of January 1, 2019. Accordingly, prior period amounts have been reclassified to conform with the current period presentation.
(2) | Reconciling items represent corporate general and administrative expenses and other income (expense) not included by management in determining segment profitability. The increase in reconciling items for the three and nine months ended September 30, 2019 compared to 2018 includes incremental corporate general and administrative expenses associated with the addition of the Jack Wolfskin business in January 2019, as well as incremental costs of $2,442,000 and $25,275,000 for the three and nine months ended September 30, 2019, respectively, primarily related to transaction and transition costs associated with the acquisition of Jack Wolfskin that was completed in January 2019, combined with the amortization of intangible assets related to the Jack Wolfskin acquisition. Reconciling items also include incremental interest expense of $7,902,000 and $24,449,000, for the three and nine months ended September 30, 2019, respectively, primarily due to the new Term Loan Facility to fund the purchase of Jack Wolfskin, combined with higher outstanding borrowings on the Company's credit facilities period over period. See Note 5 for information on the Company's credit facilities and long-term debt obligations.
| September 30, 2019 |  | December 31, 2018(1)
Total Assets: |  |  |
Golf Equipment | $ | 404,117 |  |  | $ | 437,604 |
Apparel, Gear and Other | 907,102 |  |  | 269,432 |
Reconciling items(2) | 548,429 |  |  | 345,908 |
| $ | 1,859,648 |  |  | $ | 1,052,944 |
Goodwill: |  |  |
Golf Equipment | $ | 25,801 |  |  | $ | 26,183 |
Apparel, Gear and Other | 175,243 |  |  | 29,633 |
| $ | 201,044 |  |  | $ | 55,816 |
(1) | The Company changed its operating and reportable segments as of January 1, 2019. Accordingly, prior period amounts have been reclassified to conform with the current period presentation.
(2) Total assets by operating 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 two reportable operating segments including cash and cash equivalents, net accounts receivable, deferred tax assets and derivative instruments.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration