Callaway 2011 Annual Report Download - page 112

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The table below contains information utilized by management to evaluate its operating segments.
2011 2010 2009
(In thousands)
Net sales
Golf Clubs(1) ..................................... $726,169 $791,066 $772,084
Golf Balls(1) ..................................... 160,359 176,590 178,715
$886,528 $967,656 $950,799
Loss before income tax
Golf Clubs(1),(2),(3) ................................. $ (3,899) $ 39,176 $ 34,502
Golf Balls(1),(2),(3) .................................. (12,655) 2,559 (9,427)
Reconciling items(4) ............................... (73,707) (77,297) (54,678)
$ (90,261) $ (35,562) $ (29,603)
Identifiable assets(5)(7)
Golf Clubs ...................................... $409,074 $438,002 $406,835
Golf Balls(6) ..................................... 92,280 122,147 129,796
Reconciling items(5)(7) .............................. 225,758 315,863 330,332
$727,112 $876,012 $866,963
Additions to long-lived assets
Golf Clubs ...................................... $ 23,087 $ 20,548 $ 33,892
Golf Balls ....................................... 6,680 2,023 3,315
$ 29,767 $ 22,571 $ 37,207
Goodwill
Golf Clubs ...................................... $ 29,203 $ 30,630 $ 31,113
Golf Balls ....................................... — — —
$ 29,203 $ 30,630 $ 31,113
Depreciation and amortization
Golf Clubs ...................................... $ 26,695 $ 26,582 $ 26,644
Golf Balls ....................................... 11,941 14,367 14,104
$ 38,636 $ 40,949 $ 40,748
(1) Certain prior period amounts have been reclassified to conform to the current year presentation.
(2) The Company has been actively implementing certain initiatives targeted at improving gross margins (see
Note 3). In connection with these initiatives, for the years ended December 31, 2011, 2010 and 2009, the
Company incurred total pre-tax charges of $24,680,000, $14,816,000 and $6,156,000, respectively. Of these
total charges, the Company’s golf clubs segment absorbed $15,552,000, $12,065,000 and $4,644,000,
respectively, and the Company’s golf balls segment absorbed $5,038,000, $762,000 and $1,512,000,
respectively.
(3) In connection with the Company’s Reorganization and Reinvestment Initiatives (see Note 3), in 2011, the
Company recognized pre-tax charges of $16,329,000, of which $5,642,000 and $1,329,000 were absorbed
by the Company’s golf clubs and golf balls operating segments, respectively. In 2010 and 2009, the
Company recognized total pre-tax charges of $3,973,000 and $5,174,000, respectively, in connection with
certain workforce reductions. In connection with these reductions, the Company’s golf clubs segment
absorbed pre-tax charges of $1,261,000 and $3,104,000 in 2010 and 2009, respectively, and the Company’s
golf balls segment absorbed pre-tax charges of $243,000 and $894,000 in 2010 and 2009, respectively.
Amounts included in corporate general and administrative expenses not allocated to the segments for the
aforementioned initiatives totaled $9,358,000, $2,469,000 and $1,176,000 in 2011, 2010 and 2009,
respectively.
F-38