Callaway 2010 Annual Report Download - page 39

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Item 6. Selected Financial Data
The following statements of operations data and balance sheet data for the five years ended December 31,
2010 were derived from the Company’s audited consolidated financial statements. Consolidated balance sheets at
December 31, 2010 and 2009 and the related consolidated statements of operations and cash flows for each of the
three years in the period ended December 31, 2010 and notes thereto appear elsewhere in this report. The
following data should be read in conjunction with the annual consolidated financial statements, related notes and
other financial information appearing elsewhere in this report.
Year Ended December 31,
2010(1),(2),(3),(4) 2009(2),(3),(4) 2008(5) 2007 2006
(In thousands, except per share data)
Statement of Operations Data:
Net sales ................................ $967,656 $950,799 $1,117,204 $1,124,591 $1,017,907
Cost of sales ............................. 602,160 607,036 630,371 631,368 619,832
Gross profit .............................. 365,496 343,763 486,833 493,223 398,075
Selling, general and administrative expenses .... 348,169 342,084 373,275 371,020 334,235
Research and development expenses .......... 36,383 32,213 29,370 32,020 26,785
Impairment charge ........................ 7,547 ————
Income (loss) from operations ............... (26,603) (30,534) 84,188 90,183 37,055
Interest income ........................... 2,886 1,807 2,312 2,202 1,329
Interest expense .......................... (848) (1,754) (4,666) (5,363) (5,421)
Other income (expense), net ................. (10,997) 878 (449) 1,253 2,035
Change in energy derivative valuation account . . — — 19,922 — —
Income (loss) before income taxes ............ (35,562) (29,603) 101,307 88,275 34,998
Income tax provision (benefit) ............... (16,758) (14,343) 35,131 33,688 11,708
Net income (loss) ......................... (18,804) (15,260) 66,176 54,587 23,290
Dividends on convertible preferred stock ....... 10,500 5,688 — — —
Net income (loss) allocable to common
shareholders ........................... $(29,304) $ (20,948) $ 66,176 $ 54,587 $ 23,290
Earnings (loss) per common share:
Basic ............................... $ (0.46) $ (0.33) $ 1.05 $ 0.82 $ 0.34
Diluted ............................. $ (0.46) $ (0.33) $ 1.04 $ 0.81 $ 0.34
Dividends paid per common share ............ $ 0.04 $ 0.10 $ 0.28 $ 0.28 $ 0.28
December 31,
2010(1),(2),(4) 2009(2),(4) 2008(4),(5) 2007 2006
(In thousands)
Balance Sheet Data:
Cash and cash equivalents ...................... $ 55,043 $ 78,314 $ 38,337 $ 49,875 $ 46,362
Working capital .............................. $369,442 $361,533 $236,592 $273,033 $269,745
Total assets .................................. $884,979 $875,930 $855,338 $838,078 $829,691
Long-term liabilities ........................... $ 13,967 $ 14,594 $ 21,559 $ 44,322 $ 27,132
Total Callaway Golf Company shareholders’
equity .................................... $693,234 $707,258 $578,155 $568,230 $577,117
(1) During the fourth quarter of 2010, the Company recognized a pre-tax impairment charge of $7.5 million in
connection with certain trademarks and trade names. For further discussion, see Note 9 “Goodwill and
Intangible Assets” in the Notes to Consolidated Financial Statements in this Form 10-K.
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