Callaway 2010 Annual Report Download - page 82

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CALLAWAY GOLF COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Year Ended December 31,
2010 2009 2008
Net sales ..................................................... $967,656 $950,799 $1,117,204
Cost of sales .................................................. 602,160 607,036 630,371
Gross profit ............................................... 365,496 343,763 486,833
Selling expenses ............................................... 257,285 260,597 287,802
General and administrative expenses ............................... 90,884 81,487 85,473
Research and development expenses ............................... 36,383 32,213 29,370
Impairment charge .............................................. 7,547 — —
Total operating expenses ..................................... 392,099 374,297 402,645
Income (loss) from operations .................................... (26,603) (30,534) 84,188
Interest income ................................................ 2,886 1,807 2,312
Interest expense ................................................ (848) (1,754) (4,666)
Other income (expense), net ...................................... (10,997) 878 (449)
Change in energy derivative valuation account (Note 11) ............... — — 19,922
Income (loss) before income taxes ................................. (35,562) (29,603) 101,307
Income tax provision (benefit) .................................... (16,758) (14,343) 35,131
Net income (loss) .............................................. (18,804) (15,260) 66,176
Dividends on convertible preferred stock ............................ 10,500 5,688 —
Net income (loss) allocable to common shareholders ................... $(29,304) $ (20,948) $ 66,176
Earnings (loss) per common share:
Basic .................................................... $ (0.46) $ (0.33) $ 1.05
Diluted ................................................... $ (0.46) $ (0.33) $ 1.04
Weighted-average common shares outstanding:
Basic .................................................... 63,902 63,176 63,055
Diluted ................................................... 63,902 63,176 63,798
The accompanying notes are an integral part of these consolidated financial statements.
F-4