Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Note 15. Segment Information

As a result of the Company's recently completed apparel joint venture in Japan in July 2016, as well as the Company's recent acquisition of OGIO in January 2017, the Company reassessed its operating segments during the first quarter of 2017 consistent with the way management reviews it's business operations on an ongoing basis. With the addition of the apparel joint venture and OGIO acquisition, the Company anticipates generating significant growth within its accessories and other product category that was previously included within the Company's golf clubs segment. As a result, and based on the Company's assessment, starting as of January 1, 2017, revenues generated from golf apparel and footwear, golf bags, golf gloves, travel gear, headwear and other golf-related accessories, OGIO branded gear and accessories, retail apparel sales from the Company's joint venture in Japan, in addition to royalties from licensing of the Company’s trademarks and service marks for various soft goods will be included in the gear, accessories and other operating segment. The golf clubs segment will now consist of Callaway Golf woods, hybrids, irons and wedges, Odyssey putters, including Toulon Design putters by Odyssey, packaged sets and sales of pre-owned golf clubs. The golf balls segment consists of Callaway Golf and Strata balls that are designed, manufactured and sold by the Company. The Company's operating segments are organized on the basis of products. There are no significant intersegment transactions.

The table below contains information utilized by management to evaluate its operating segments for the interim periods presented (in thousands). Prior period amounts have been restated to conform with the current period presentation.

	Three Months Ended   March 31,
	2017			2016
Net sales:
Golf Clubs	$	193,591		$	195,061
Golf Balls	48,224			41,416
Gear, Accessories and Other	67,112			37,576
	$	308,927		$	274,053
Income before income taxes:
Golf Clubs	$	34,953		$	35,441
Golf Balls	11,521			10,606
Gear, Accessories and Other	9,619			9,462
Reconciling items(1)	(17,007		)	(15,718		)
	$	39,086		$	39,791
Additions to long-lived assets:
Golf Clubs	$	3,795		$	2,709
Golf Balls	2,536			943
Gear, Accessories and Other	501			181
	$	6,832		$	3,833

(1) Reconciling items represent corporate general and administrative expenses and other income (expense) not included by management in determining segment profitability. The reconciling items for the three months ended March 31, 2017 include a $1,706,000 increase in corporate general and administrative expenses, driven primarily by accrued employee incentive compensation expense and stock compensation expense, partially offset by a $416,000 decrease in other expense primarily due to an increase in net foreign currency gains period over period.

	March 31, 2017		December 31, 2016
Total Assets:(1)
Golf Clubs	$	274,348	$	277,469
Golf Balls	43,960		42,460
Gear, Accessories and Other	91,895		38,270
Reconciling items	469,743		443,083
	$	879,946	$	801,282
Goodwill:
Golf Clubs	$	25,770	$	25,593
Golf Balls	—		—
Gear, Accessories and Other	5,543		—
	$	31,313	$	25,593

(1) Total assets by reportable 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 three segments including cash and cash equivalents, net accounts receivable, and deferred tax assets.