Callaway 2011 Annual Report Download - page 113

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(4) Reconciling items represent the deduction of corporate general and administration expenses and other
income (expenses), which are not utilized by management in determining segment profitability. These
reconciling items include the following: (i) pre-tax impairment charges of $6,533,000 and $7,547,000 for
2011 and 2010, respectively, primarily related to certain trademarks and trade names (see Note 9), (ii) net
losses of $8,153,000, $11,674,000, and $482,000 for 2011, 2010 and 2009, respectively, related to net
realized and unrealized foreign currency hedging losses, offset by net foreign currency transaction gains
included in other income (expense), and (iii) a pre-tax gain of $6,170,000 recognized in 2011 in connection
with the sale of certain buildings (see Note 7).
(5) Identifiable assets are comprised of net inventory, certain property, plant and equipment, intangible assets
and goodwill. Reconciling items represent unallocated corporate assets not segregated between the two
segments.
(6) Includes property classified as available for sale in the amount of $1,500,000 in 2010 and $1,890,000 in
2009. Property held for sale represents the net book value of the golf ball manufacturing facility in
Gloversville, New York. Property was sold in 2011 (see Note 7).
(7) Total identifiable assets for 2010 and 2009 have been corrected from the amounts previously reported to
reflect a decrease in net deferred tax assets relating to periods previously reported. This correction resulted
in a $879,000 decrease to short-term net deferred tax assets, a $8,088,000 decrease to long-term net deferred
tax assets and a decrease to shareholders’ equity of $8,967,000 (see Note 16).
The Company’s net sales by product category are as follows:
Year Ended December 31,
2011 2010(1) 2009(1)
(In thousands)
Net sales
Drivers and Fairway Woods .................................... $212,901 $225,227 $223,168
Irons ...................................................... 207,790 223,875 232,684
Putters ..................................................... 88,831 106,246 98,305
Golf Balls .................................................. 160,359 176,590 178,715
Accessories and Other ........................................ 216,647 235,718 217,927
$886,528 $967,656 $950,799
(1) Certain prior period amounts were reclassified to conform with the current year presentation.
F-39