Callaway 2010 Annual Report Download - page 15

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PART I
Item 1. Business
Callaway Golf Company (the “Company” or “Callaway Golf”) was incorporated in California in 1982 with
the main purpose of designing, manufacturing and selling high quality golf equipment. The Company became a
publicly traded corporation in 1992, and in 1997, the Company acquired substantially all of the assets of Odyssey
Sports, Inc., which manufactured and marketed the Odyssey brand of putters and wedges. The Company
reincorporated in Delaware on July 1, 1999 and in 2000, the Company entered the golf ball business with the
release of its first golf ball product. In 2003, the Company acquired through a court-approved sale substantially
all of the golf-related assets of the TFGC Estate Inc. (f/k/a The Top-Flite Golf Company, f/k/a Spalding Sports
Worldwide, Inc.), which included golf ball manufacturing facilities, the Top-Flite and Ben Hogan brands, and all
golf-related patents and trademarks (the “Top-Flite Acquisition”). In 2008, the Company acquired certain assets
and liabilities of uPlay, LLC, a developer and marketer of global positioning system (“GPS”) range finders.
Today, the Company, together with its subsidiaries, designs, manufactures and sells high quality golf clubs
(drivers, fairway woods, hybrids, irons, wedges and putters) and golf balls, and also sells golf accessories (such
as GPS range finders, golf bags, gloves, footwear, apparel, headwear, eyewear, towels and umbrellas) under the
Callaway Golf, Odyssey, Top-Flite, Ben Hogan, and uPro brand names. The Company generally sells its
products to retailers, directly and through its wholly-owned subsidiaries, and to third-party distributors. The
Company sells pre-owned golf products through its website, www.callawaygolfpreowned.com. In addition, the
Company has an online store where consumers can place an order for Callaway Golf, Top-Flite, Ben Hogan and
Odyssey products through its website Shop.CallawayGolf.com. The Company also licenses its trademarks and
service marks in exchange for a royalty fee to third parties for use on golf and lifestyle products, including
apparel, rangefinders, practice aids and travel gear. The Company’s products are sold in the United States and in
over 100 countries around the world.
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