Callaway 2011 Annual Report Download - page 95

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The following table summarizes the fair value of derivative instruments by contract type as well as the
location of the asset and/or liability on the consolidated balance sheets at December 31, 2011 and 2010 (in
thousands):
Asset Derivatives
December 31, 2011 December 31, 2010
Derivatives not designated as hedging
instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value
Foreign currency exchange contracts . . . Other current assets $2,514 Other current assets $ 1,786
Liability Derivatives
December 31, 2011 December 31, 2010
Derivatives not designated as hedging
instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value
Foreign currency exchange contracts . . . Accounts payable and
accrued expenses $3,746
Accounts payable and
accrued expenses $11,775
The following table summarizes the location of gains and losses on the consolidated statements of
operations that were recognized during the years ended December 31, 2011, 2010 and 2009, respectively, in
addition to the derivative contract type (in thousands):
Amount of Gain / (Loss)
Recognized in Income on
Derivative Instruments
Year Ended December 31,
Derivatives not designated as hedging
instruments
Location of gain (loss) recognized in income on
derivative instruments 2011 2010 2009
Foreign currency exchange
contracts ...................... Other income (expense), net $(8,861) $(18,600) $(7,594)
The net realized and unrealized contractual net losses noted in the table above for the years ended
December 31, 2011, 2010 and 2009 were used by the Company to offset actual foreign currency transactional net
gains associated with assets and liabilities denominated in foreign currencies as well as net gains associated with
the translation of foreign currencies in operating results.
Note 12. Loss per Common Share
Loss per common share, basic and diluted, are computed by dividing net loss allocable to common
shareholders by the weighted-average number of common shares outstanding for the period. Weighted-average
common shares outstanding—diluted is the same as weighted-average common shares outstanding—basic in
periods when a net loss is reported. Dividends on cumulative preferred stock are added to net loss to calculate net
loss allocable to common shareholders in the basic loss per share calculation, and in the diluted loss per share
calculation in periods when a net loss is reported.
Potentially dilutive securities such as common stock equivalents of convertible preferred stock, options
granted pursuant to the Company’s stock option plans, potential shares related to the employee stock purchase
plan (“ESPP”) and outstanding restricted stock units granted to employees and non-employees (see Note 14) are
excluded from the calculation in periods when a net loss is reported as their effect would be anti-dilutive. For the
years ended December 31, 2011, 2010 and 2009, shares totaling 30,676,000, 30,267,000 and 21,004,000 were
excluded from the calculations as their effect would have been anti-dilutive.
F-21