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Segment Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information
Note 19. Segment Information
The Company 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 Jack Wolfskin outdoor apparel, gear and accessories, TravisMathew golf and lifestyle apparel and accessories, and Callaway and Ogio soft goods, which consist of golf apparel and accessories (including golf bags and gloves), storage gear for sport and personal use, and royalties from licensing of the Company’s trademarks and service marks for various soft
goods products. There are no significant intersegment transactions during the three and nine months ended September 30, 2020.
The tables 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,
 
2020
 
2019
 
2020
 
2019
Net sales:
 
 
 
 
 
 
 
Golf Equipment
$
267,277

 
$
210,502

 
$
768,881

 
$
826,474

Apparel, Gear and Other
208,282

 
215,715

 
445,950

 
562,648

 
$
475,559

 
$
426,217

 
$
1,214,831

 
$
1,389,122

Income (loss) before income taxes:
 
 
 
 
 
 
 
Golf Equipment
$
56,784

 
$
23,124

 
$
144,585

 
$
148,782

Apparel, Gear and Other
25,909

 
34,877

 
10,399

 
68,909

Reconciling items(1)
(24,901
)
 
(24,825
)
 
(234,762
)
 
(90,352
)
 
$
57,792

 
$
33,176

 
$
(79,778
)
 
$
127,339

Additions to long-lived assets:(2)
 
 
 
 
 
 
 
Golf Equipment
$
1,616

 
$
7,648

 
$
21,356

 
$
20,989

Apparel, Gear and Other
3,508

 
6,783

 
16,774

 
15,465

 
$
5,124

 
$
14,431

 
$
38,130

 
$
36,454

 

(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 for the nine months ended September 30, 2020 compared to September 30, 2019 was primarily due to the recognition of a $174,269,000 impairment loss related to the Jack Wolfskin trade name and goodwill (see Note 9) and a $4,198,000 increase in interest expense. These increases were partially offset by a $26,028,000 increase in other income primarily due to foreign currency and hedging contract gains, combined with $10,703,000 of amortization expense recognized in 2019 related to the inventory valuation step-up from Jack Wolfskin acquisition.
(2)
Additions to long-lived assets are comprised of purchases of property, plant and equipment.