Callaway 2008 Annual Report Download - page 40

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of $5.7 million and $0.08 per share, respectively, and net loss and loss per share would have been increased
by after-tax charges of $6.5 million and $0.10 per share for the year ended December 31, 2004, respectively.
(3) In connection with the uPlay, LLC asset acquisition on December 31, 2008, the Company’s financial
condition as of December 31, 2008 includes certain assets and liabilities of uPlay, LLC.
(4) In the fourth quarter of 2008, the Company reversed a $19.9 million energy derivative valuation account.
See Note 15 “Commitments and Contingencies—Supply of Electricity and Energy Contracts” to the
Consolidated Financial Statements.
(5) The Company identified a misclassification in the presentation of its long-term deferred taxes in 2007 and
2006. The Company had reported in its consolidated balance sheet deferred tax assets and deferred tax
liabilities as separate line items. In accordance with paragraph 42 of SFAS No. 109, “Accounting for
Income Taxes” (“SFAS No.109”), deferred tax assets and deferred tax liabilities should be offset and
presented as a single amount when they relate to a particular tax-paying component of an enterprise within
the same tax jurisdiction. As such, the Company’s 2007 and 2006 consolidated balance sheets have been
corrected to be consistent with the requirements of FASB No. 109 and the current presentation to report
only the net amount of current and long-term deferred tax assets and deferred tax liabilities when they relate
to the same tax jurisdiction. This correction resulted in a decline in total assets of $18.9 million and $16.3
million as of December 31, 2007 and 2006, respectively. For further discussion see Note 14 “Income Taxes”
to the Consolidated Financial Statements.
27