Callaway 2002 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2002 Callaway annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 82

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82

Note 8. Ea rn in g s Pe r Co m m o n Sh a re
The schedule below summarizes the elements included in the
calculation of basic and diluted earnings per common share for
the years ended December 31, 2002, 2001 and 2000.
For the years ended December 31, 2002, 2001 and 2000, options
outstanding totaling 14,177,000 shares, 8,943,000 shares and
8,931,000 shares, respectively, were excluded from the
calculations of earnings per common share, as their effect
would have been antidilutive.
Note 9. Sto c k , St ock Op t io n s and Rig ht s
Common Stock and Preferred Stock
The Company has an authorized capital of 243,000,000 shares,
$.01 par value, of which 240,000,000 shares are designated
Common Stock, and 3,000,000 shares are designated Preferred
Stock. Of the Preferred Stock, 240,000 shares are designated
Series A Junior Participating Preferred Stock in connection
with the Company’s shareholders’ rights plan (see
Shareholders’ Rights Plan below). The remaining shares of
Preferred Stock are undesignated as to series, rights,
preferences, privileges or restrictions.
The holders of Common Stock are entitled to one vote for each
share of Common Stock on all matters submitted to a vote of the
Company’s shareholders. Although to date no shares of Series
A Junior Participating Preferred Stock have been issued, if
such shares were issued, each share of Series A Junior
Participating Preferred Stock would entitle the holder thereof to
1,000 votes on all matters submitted to a vote of the shareholders
of the Company. The holders of Series A Junior Participating
Preferred Stock and the holders of Common Stock shall generally
vote together as one class on all matters submitted to a vote of
the Company’s shareholders. Shareholders entitled to vote for
the election of directors are entitled to vote cumulatively for one
or more nominees.
Treasury Stock
In May 2000, August 2001 and May 2002, the Company
announced that its Board of Directors authorized it to
repurchase its Common Stock in the open market or in private
transactions, subject to the Company’s assessment of market
conditions and buying opportunities from time to time, up to a
maximum cost to the Company of $100,000,000, $100,000,000
and $50,000,000, respectively.
CALLAWAY GOLF COMPANY 55
Ye ar Ended Decem be r 31,
(In thousands, except per share data) 2002 2001 2000
Net income $ 69,446 $ 58,375 $ 80,999
Weighted-average shares outstanding:
Weighted-average shares outstanding - Basic 66,517 69,809 69,946
Dilutive securities 757 1,505 1,466
Weighted-average shares outstanding - Diluted 67,274 71,314 71,412
Earnings per common share:
Basic
Income before cumulative effect of accounting change $ 1.04 $ 0.84 $ 1.17
Cumulative effect of accounting change — — (0.01)
$ 1.04 $ 0.84 $ 1.16
Diluted
Income before cumulative effect of accounting change $ 1.03 $ 0.82 $ 1.14
Cumulative effect of accounting change — — (0.01)
$ 1.03 $ 0.82 $ 1.13
Note 8. Ea rn in g s Pe r Co m m o n Sh a re
The schedule below summarizes the elements included in the calculation of basic and diluted earnings per common share for the
years ended December 31, 2002, 2001 and 2000.