Callaway 2009 Annual Report Download - page 40

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December 31,
2009(3) 2008(1),(4) 2007 2006 2005
(In thousands)
Balance Sheet Data:
Cash and cash equivalents .................. $ 78,314 $ 38,337 $ 49,875 $ 46,362 $ 49,481
Working capital .......................... $361,533 $236,592 $273,033 $269,745 $298,385
Total assets ............................. $875,930 $855,338 $838,078 $829,691 $764,498
Long-term liabilities ...................... $ 14,594 $ 21,559 $ 44,322 $ 27,132 $ 28,245
Total Callaway Golf Company shareholders’
equity ................................ $709,882 $578,155 $568,230 $577,117 $596,048
(1) In the fourth quarter of 2008, the Company reversed a $19.9 million energy derivative valuation account.
See Note 10 “Derivatives and Hedging—Supply of Electricity and Energy Contracts” to the Consolidated
Financial Statements.
(2) Prior to January 1, 2006, the Company accounted for share-based employee compensation arrangements in
accordance with the provisions and related interpretations of Accounting Principles Board Opinion No. 25,
“Accounting for Stock Issued to Employees,” which used the intrinsic value of method. Under the intrinsic
value method, no share-based compensation expense related to stock option awards granted to employees or
directors had been recognized in the Company’s Consolidated Statements of Operations, as all stock options
granted had an exercise price equal to the Company’s closing stock price on the date of grant. Had
compensation expense for share-based awards granted to employees and directors been determined
consistent with Accounting Standards Codification (“ASC”) Topic 718, “Compensation—Stock
Compensation” (“ASC Topic 718”), net income and earnings per share for the year ended December 31,
2005 would have been reduced by after-tax charges of $5.7 million and $0.08 per share, respectively.
(3) On June 15, 2009, the Company sold 1.4 million shares of its 7.50% Series B Cumulative Perpetual
Convertible Preferred Stock, $0.01 par value (“preferred stock”). As a result, total shareholders’ equity as of
December 31, 2009 includes net proceeds of $134.0 million in connection with the issuance of preferred
stock. For further discussion, see Note 3 “Preferred Stock Offering” to the Consolidated Financial
Statements in this Form 10-K.
(4) 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.
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