Callaway 2004 Annual Report Download - page 39

Company of $100.0 million and $50.0 million, respectively. The following schedule summarizes the status of
the Company's repurchase programs:
Year Ended December 31,
2004 2003 2002
Average Average Average
Shares Cost Per Shares Cost Per Shares Cost Per
Repurchased Share Repurchased Share Repurchased Share
(In thousands, except per share data)
Authority Announced in August 2001 ÏÏ Ì Ì Ì Ì 866 $17.86
Authority Announced in May 2002ÏÏÏÏÏ 353 $17.84 373 $12.77 1,967 $15.75
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 353 $17.84 373 $12.77 2,833 $16.40
The Company has completed its August 2001 repurchase program. As of December 31, 2004, the
Company is authorized to repurchase up to an additional $7.9 million of its Common Stock under the
repurchase program announced in May 2002. The Company's repurchases of shares of Common Stock are
recorded at average cost in Common Stock held in treasury and result in a reduction of shareholders' equity.
Other SigniÑcant Cash and Contractual Obligations
The following table summarizes certain signiÑcant cash obligations as of December 31, 2004, that will
aÅect the Company's future liquidity (in millions):
Payments Due By Period
Less than More than
Total 1 Year 1-3 Years 3-5 Years 5 Years
Line of credit ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 13.0 $13.0 $ Ì $ Ì $ Ì
Operating leases(1) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17.6 6.2 8.4 2.1 0.9
Capital leases(2) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.1 0.1 Ì Ì Ì
Unconditional purchase obligations(3) ÏÏÏÏ 121.5 28.2 51.5 35.6 6.2
Deferred compensation(4) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8.5 1.0 1.1 0.7 5.7
Total(5)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $160.7 $48.5 $61.0 $38.4 $12.8
(1) The Company leases certain warehouse, distribution and oÇce facilities, vehicles and oÇce equipment
under operating leases. The amounts presented in this line item represent commitments for minimum lease
payments under non-cancelable operating leases and include operating leases assumed as part of the Top-
Flite Acquisition.
(2) The Company acquired certain capital lease obligations as a result of the Top-Flite Acquisition primarily
related to computer and telecommunications systems. The amounts presented in this line item represent
commitments for minimum lease payments under non-cancelable capital leases.
(3) During the normal course of its business, the Company enters into agreements to purchase goods and
services, including purchase commitments for production materials, endorsement agreements with profes-
sional golfers and other endorsers, employment and consulting agreements, and intellectual property
licensing agreements pursuant to which the Company is required to pay royalty fees. It is not possible to
determine the amounts the Company will ultimately be required to pay under these agreements as they are
subject to many variables including performance-based bonuses, reductions in payment obligations if
designated minimum performance criteria are not achieved, and severance arrangements. The amounts
listed approximate minimum purchase obligations, base compensation, and guaranteed minimum royalty
payments the Company is obligated to pay under these agreements. The actual amounts paid under some
of these agreements may be higher or lower than the amounts included. In the aggregate, the actual
amount paid under these obligations is likely to be higher than the amounts listed as a result of the variable
nature of these obligations. In addition, the Company also enters into unconditional purchase obligations
with various vendors and suppliers of goods and services in the normal course of operations through
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