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Segment Information | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Segment Information | Note 20. Segment Information The Company has two operating and reportable segments: Golf Equipment and Apparel, Gear and Other. 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 Jack Wolfskin outdoor apparel, gear and accessories business, the TravisMathew golf and lifestyle apparel and accessories business, the Callaway soft goods business and the OGIO business, which consists 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. The table below contains information utilized by management to evaluate its operating segments.
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
| (In thousands)
Net sales: |  |  |  |  |
Golf Equipment | $ | 982,675 |  |  | $ | 979,173 |  |  | $ | 912,947 |
Apparel, Gear and Other | 606,785 |  |  | 721,890 |  |  | 329,887 |
| $ | 1,589,460 |  |  | $ | 1,701,063 |  |  | $ | 1,242,834 |
Income (loss) before income tax: |  |  |  |  |
Golf Equipment | $ | 148,578 |  |  | $ | 140,316 |  |  | $ | 128,619 |
Apparel, Gear and Other | 679 |  |  | 75,490 |  |  | 54,879 |
Reconciling items(1) | (276,735) |  |  | (120,037) |  |  | (52,226) |
| $ | (127,478) |  |  | $ | 95,769 |  |  | $ | 131,272 |
Identifiable assets: |  |  |  |  |
Golf Equipment | $ | 481,214 |  |  | $ | 508,463 |  |  | $ | 437,604 |
Apparel, Gear and Other | 754,601 |  |  | 939,463 |  |  | 269,432 |
Reconciling items(2) | 744,785 |  |  | 512,622 |  |  | 345,908 |
| $ | 1,980,600 |  |  | $ | 1,960,548 |  |  | $ | 1,052,944 |
Additions to long-lived assets:(3) |  |  |  |  |
Golf Equipment | $ | 25,695 |  |  | $ | 29,167 |  |  | $ | 27,778 |
Apparel, Gear and Other | 21,235 |  |  | 25,386 |  |  | 9,712 |
| $ | 46,930 |  |  | $ | 54,553 |  |  | $ | 37,490 |
Goodwill:(4) |  |  |  |  |
Golf Equipment | $ | 27,025 |  |  | $ | 26,329 |  |  | $ | 26,183 |
Apparel, Gear and Other | 29,633 |  |  | 177,414 |  |  | 29,633 |
| $ | 56,658 |  |  | $ | 203,743 |  |  | $ | 55,816 |
Depreciation and amortization: |  |  |  |  |
Golf Equipment | $ | 19,212 |  |  | $ | 16,847 |  |  | $ | 11,165 |
Apparel, Gear and Other | 20,296 |  |  | 18,104 |  |  | 8,783 |
| $ | 39,508 |  |  | $ | 34,951 |  |  | $ | 19,948 |
(1)Reconciling items represent corporate general and administration expenses and other income (expenses) not utilized by management in determining segment profitability. The $156,698,000 increase in reconciling items in 2020 compared to 2019 includes the recognition of a $174,300,000 impairment of the Jack Wolfskin goodwill and trade name in 2020 (see Note 9), and an $8,100,000 increase in interest expense. These increases were partially offset by a $23,400,000 increase in other income primarily due to foreign currency and hedging contract gains, combined with $10,928,000 of amortization expense recognized in 2019 related to the inventory valuation step-up from the Jack Wolfskin acquisition (see Note 6). 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. (2)Identifiable assets are comprised of 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 $232,163,000 increase in reconciling items in 2020 compared to 2019 was primarily due to increases of $259,453,000 in cash and cash equivalents and $21,308,000 related to the additional investment in Topgolf in the third quarter of 2020, partially offset by a $14,213,000 decrease in net deferred tax assets, and a $13,407,000 decrease in prepaid 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. (3)Additions to long-lived assets are comprised of purchases of property, plant and equipment. (4)The $147,085,000 decrease in goodwill in 2020 compared to 2019 was primarily due to an impairment of $148,375,000 for Jack Wolfskin goodwill. See Note 9 for further detail. 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)
2020 |  |  |
United States | $ | 778,600 |  |  | $ | 498,182 |
Europe | 372,957 |  |  | 286,450 |
Japan | 212,055 |  |  | 11,091 |
Rest of World | 225,848 |  |  | 17,739 |
| $ | 1,589,460 |  |  | $ | 813,462 |
2019 |  |  |
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 |  |  |
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 |
(1)Long-lived assets include all non-current assets of the Company except deferred tax assets and operating lease right-of-use assets. Geographic information of property, plant and equipment, net is as follows:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
| (In thousands)
United States | $ | 116,459 |  |  | $ | 103,111 |  |  | $ | 75,320 |
Europe | 17,078 |  |  | 19,148 |  |  | 2,562 |
Japan | 6,028 |  |  | 5,655 |  |  | 5,489 |
Rest of World | 6,930 |  |  | 4,846 |  |  | 5,101 |
| $ | 146,495 |  |  | $ | 132,760 |  |  | $ | 88,472 |

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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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