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Segment Information | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Segment Information | Note 19. 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 table below contains information utilized by management to evaluate its operating segments.
| Years Ended December 31,
| 2019 |  | 2018 |  | 2017
| (In thousands)
Net sales: |  |  |  |  |
Golf Equipment | $ | 979,173 |  |  | $ | 912,947 |  |  | $ | 805,642 |
Apparel, Gear and Other | 721,890 |  |  | 329,887 |  |  | 243,094 |
| $ | 1,701,063 |  |  | $ | 1,242,834 |  |  | $ | 1,048,736 |
Income (loss) before income tax: |  |  |  |  |
Golf Equipment | $ | 140,316 |  |  | $ | 128,619 |  |  | $ | 103,872 |
Apparel, Gear and Other | 75,490 |  |  | 54,879 |  |  | 30,631 |
Reconciling items(1) | (120,037 | ) |  | (52,226 | ) |  | (66,448 | )
| $ | 95,769 |  |  | $ | 131,272 |  |  | $ | 68,055 |
Identifiable assets:(2) |  |  |  |  |
Golf Equipment | $ | 508,463 |  |  | $ | 437,604 |  |  | $ | 378,385 |
Apparel, Gear and Other | 939,463 |  |  | 269,432 |  |  | 236,515 |
Reconciling items(3) | 512,622 |  |  | 345,908 |  |  | 376,257 |
| $ | 1,960,548 |  |  | $ | 1,052,944 |  |  | $ | 991,157 |
Additions to long-lived assets:(3) |  |  |  |  |
Golf Equipment | $ | 29,167 |  |  | $ | 27,778 |  |  | $ | 23,574 |
Apparel, Gear and Other | 25,386 |  |  | 9,712 |  |  | 3,790 |
| $ | 54,553 |  |  | $ | 37,490 |  |  | $ | 27,364 |
Goodwill: |  |  |  |  |
Golf Equipment | $ | 26,329 |  |  | $ | 26,183 |  |  | $ | 26,904 |
Apparel, Gear and Other | 177,414 |  |  | 29,633 |  |  | 29,525 |
| $ | 203,743 |  |  | $ | 55,816 |  |  | $ | 56,429 |
Depreciation and amortization: |  |  |  |  |
Golf Equipment | $ | 16,847 |  |  | $ | 11,165 |  |  | $ | 13,265 |
Apparel, Gear and Other | 18,104 |  |  | 8,783 |  |  | 4,340 |
| $ | 34,951 |  |  | $ | 19,948 |  |  | $ | 17,605 |
(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. The increase in reconciling items in 2019 compared to 2018 includes incremental corporate general and administrative expenses associated with the addition of the Jack Wolfskin business in January 2019, in addition to $34,084,000 in non-recurring transition costs associated with the acquisition of Jack Wolfskin combined with amortization charges of intangible assets related to the Company's OGIO and TravisMathew acquisitions as well as the amortization of intangible assets and the cost impact associated with a change in valuation of inventory (inventory step-up) related to the Company's Jack Wolfskin acquisition. Reconciling items in 2019 also include incremental interest expense of $31,707,000 related to the Term Loan Facility used for the Jack Wolfskin acquisition, as well as $3,896,000 of net foreign currency exchange losses associated with the Jack Wolfskin acquisition. 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.
(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 two segments including cash and cash equivalents, net accounts receivable, and deferred tax assets. The $166,714,000 increase in reconciling items in 2019 compared to 2018 was primarily due to increases of $42,685,000 in cash and cash equivalents, $69,081,000 in net accounts receivable and a $17,897,000 increase related to the additional investment in Topgolf in the fourth quarter of 2019. 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. Reconciling items in 2017 were primarily comprised of a $40,301,000 decrease in cash and cash equivalents compared to 2016 primarily to fund the OGIO and TravisMathew acquisitions in 2017, combined with a $23,535,000 decrease in net deferred tax assets compared to 2016 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 $147,927,000 increase in goodwill in 2019 compared to 2018 was primarily as a result of the acquisition of Jack Wolfskin in January 2019.
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)
2019(2) |  |  |
United States | $ | 788,232 |  |  | $ | 466,957 |
Europe | 428,628 |  |  | 444,468 |
Japan | 246,260 |  |  | 10,347 |
Rest of World | 237,943 |  |  | 15,380 |
| $ | 1,701,063 |  |  | $ | 937,152 |
2018(2) |  |  |
United States | $ | 708,467 |  |  | $ | 422,803 |
Europe | 149,602 |  |  | 6,855 |
Japan | 223,707 |  |  | 8,723 |
Rest of World | 161,058 |  |  | 14,578 |
| $ | 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 World | 143,769 |  |  | 14,965 |
| $ | 1,048,736 |  |  | $ | 433,774 |
(1) | Long-lived assets include all non-current assets of the Company except deferred tax assets.
(2) In connection with the Company's assessment of its operating and reportable segments the Company also reassessed its reportable regions. As a result, as of January 1, 2019, the Company reports regional sales previously reported in Rest of Asia and Other Foreign Countries in Rest of World. Accordingly, prior period amounts have been reclassified to conform to the current year presentation of regional sales.

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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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