Callaway 2010 Annual Report Download - page 37

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Performance Graph
The following graph presents a comparison of the cumulative total shareholder return of the Company’s
common stock since December 31, 2005 to three indices: the Standard & Poor’s 500 Index (“S&P 500”), the
Standard & Poor’s 400 Midcap Index (“S&P 400”) and the Standard & Poor’s 600 Smallcap Index (“S&P 600”).
The S&P 500 tracks the aggregate price performance of equity securities of 500 large-cap companies that are
actively traded in the U.S., and is considered to be a leading indicator of U.S. equity securities. The S&P 400 is a
market value-weighted index that tracks the aggregate price performance of equity securities of companies with a
market capitalization of $750.0 million to $3.0 billion from all major industries, including energy, technology,
healthcare, financial and manufacturing. The S&P 600 is a market value-weighted index that tracks the aggregate
price performance of equity securities from a broad range of small-cap stocks traded in the U.S. The Company
believes that the S&P 600 is a more representative peer group than the S&P 400 as it is more aligned with the
Company’s market capitalization. As such, the Company has elected to change its peer group from the S&P 400
to the S&P 600 as of January 1, 2010. The graph below presents both the S&P 400 and S&P 600 for comparative
purposes. The graph assumes an initial investment of $100 at December 31, 2005 and reinvestment of all
dividends.
2005 2006 2007 2008 2009 2010
Callaway Golf (NYSE: ELY) .................. $100.00 $106.14 $130.41 $71.53 $58.78 $ 63.20
S&P500 .................................. $100.00 $113.62 $117.63 $72.36 $89.33 $100.75
S&P 400 Midcap ............................ $100.00 $108.99 $116.28 $72.93 $98.46 $122.93
S&P 600 Smallcap .......................... $100.00 $114.07 $112.68 $76.63 $94.86 $118.55
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