Callaway 2006 Annual Report Download - page 24

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Employees
During 2005, in connection with the 2005 Restructuring Initiatives, the Company announced the elimination
of approximately 500 positions worldwide, including full-time and part-time employees, temporary employees
and open positions. Most of these positions were eliminated prior to December 31, 2005 and the remainder of the
planned eliminations was completed during 2006. As of December 31, 2006, the Company and its subsidiaries
had approximately 3,000 full-time employees. In addition, the Company employs part-time employees and
temporary employees as the business requires.
Historically, Callaway Golf employees have not been represented by unions. The Top-Flite manufacturing
employees in Chicopee, Massachusetts, however, are unionized. Shortly after the Top-Flite Acquisition was
consummated the Company negotiated a new collective bargaining agreement with the union in Chicopee which
is not scheduled to expire until September 30, 2008. In addition, in connection with the Top-Flite Acquisition,
certain of the Company’s production employees in Canada and Australia are also unionized. The Company
considers its employee relations to be good.
Access to SEC Filings through Company Website
Interested readers can access the Company’s annual reports on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) through the Investor Relations section of the
Company’s website at www.callawaygolf.com. These reports can be accessed free of charge from the Company’s
website as soon as reasonably practicable after the Company electronically files such materials with, or furnishes
them to, the Securities and Exchange Commission. In addition, the Company’s Corporate Governance
Guidelines, Code of Conduct and the written charters of the committees of the Board of Directors are available in
the Corporate Governance portion of the Investor Relations section of the Company’s website and are available
in print to any shareholder who requests a copy. The information contained on the Company’s website shall not
be deemed to be incorporated into this report.
Item 1A. Risk Factors
Certain Factors Affecting Callaway Golf Company
The financial statements contained in this report and the related discussions describe and analyze the
Company’s financial performance and condition for the periods presented. For the most part, this information is
historical. The Company’s prior results, however, are not necessarily indicative of the Company’s future
performance or financial condition. The Company has also included certain forward-looking statements
concerning the Company’s future performance or financial condition. These forward-looking statements are
based upon current information and expectations and actual results could differ materially. The Company
therefore has included the following discussion of certain factors that could cause the Company’s future
performance or financial condition to differ materially from its prior performance or financial condition or from
management’s expectations or estimates of the Company’s future performance or financial condition. These
factors, among others, should be considered in assessing the Company’s future prospects and prior to making an
investment decision with respect to the Company’s stock.
The Company’s products may not achieve or maintain market acceptance.
The Company’s ability to compete is in part dependent upon its ability to satisfy the various subjective
requirements of golfers, including a golf club’s and golf ball’s look and “feel,” and the level of acceptance that a
golf club and ball has among professional and recreational golfers. The subjective preferences of purchasers of
golf clubs and golf balls are difficult to predict and may be subject to rapid and unanticipated changes. In
addition, the Company’s products have tended to incorporate significant innovations in design and manufacture,
which have often, but not always, resulted in higher prices for the Company’s products relative to other products
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