Callaway 2007 Annual Report Download - page 86

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Note 5. Selected Financial Statement Information
December 31,
2007 2006
(In thousands)
Accounts receivable, net:
Trade accounts receivable ............................................. $120,054 $ 126,672
Allowance for doubtful accounts ........................................ (7,990) (8,539)
$ 112,064 $ 118,133
Inventories, net:
Raw materials ....................................................... $ 82,185 $ 85,798
Work-in-process ..................................................... 1,932 4,195
Finished goods ...................................................... 168,884 175,117
$ 253,001 $ 265,110
Property, plant and equipment, net:
Land .............................................................. $ 11,609 $ 12,815
Buildings and improvements ........................................... 85,245 91,477
Machinery and equipment ............................................. 143,994 135,573
Furniture, computers and equipment ..................................... 112,079 113,982
Production molds .................................................... 41,511 38,523
Construction-in-process ............................................... 10,368 11,157
404,806 403,527
Accumulated depreciation ............................................. (276,770) (272,303)
$ 128,036 $ 131,224
Accounts payable and accrued expenses:
Accounts payable .................................................... $ 33,019 $ 40,947
Accrued expenses .................................................... 97,391 70,413
$ 130,410 $ 111,360
Accrued employee compensation and benefits:
Accrued payroll and taxes ............................................. $ 31,882 $ 7,927
Accrued vacation and sick pay .......................................... 10,752 9,600
Accrued commissions ................................................. 1,611 1,204
$ 44,245 $ 18,731
Note 6. Goodwill and Intangible Assets
In accordance with SFAS No. 142, “Goodwill and Other Intangible Assets,” the Company’s goodwill and
certain intangible assets are not amortized, but are subject to an annual impairment test. The following sets forth
the intangible assets by major asset class:
Useful
Life
(Years)
December 31, 2007 December 31, 2006
Gross
Accumulated
Amortization
Net Book
Value Gross
Accumulated
Amortization
Net Book
Value
(In thousands) (In thousands)
Non-Amortizing:
Trade name, trademark and
trade dress ............... NA $121,794 $ — $121,794 $121,794 $ — $121,794
Amortizing:
Patents .................... 3-16 36,459 18,288 18,171 36,459 15,471 20,988
Other ..................... 1-9 2,853 1,833 1,020 2,853 1,309 1,544
Total intangible assets ............ $161,106 $20,121 $140,985 $161,106 $16,780 $144,326
F-16