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As Of Filer Filing For·On·As Docs:Size 8/07/20 Callaway Golf Co. 10-Q 6/30/20 90:11M |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 1.53M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 28K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 28K 4: EX-32.1 Certification -- §906 - SOA'02 HTML 26K 11: R1 Cover Page HTML 76K 12: R2 Consolidated Condensed Balance Sheets (Unaudited) HTML 119K 13: R3 Consolidated Condensed Balance Sheets (Unaudited) HTML 41K (Parenthetical) 14: R4 Consolidated Condensed Statements of Operations HTML 87K (Unaudited) 15: R5 Consolidated Condensed Statements of Comprehensive HTML 50K Income (Loss) (Unaudited) 16: R6 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS HTML 139K (Unaudited) Statements 17: R7 Consolidated Condensed Statement of Shareholders' HTML 112K Equity (Unaudited) 18: R8 Basis of Presentation HTML 34K 19: R9 Leases HTML 199K 20: R10 Revenue Recognition HTML 119K 21: R11 Estimated Credit Losses (Notes) HTML 50K 22: R12 Business Combinations HTML 55K 23: R13 Financing Arrangements HTML 73K 24: R14 Earnings (Loss) per Common Share HTML 62K 25: R15 Inventories HTML 34K 26: R16 Goodwill and Intangible Assets HTML 77K 27: R17 Joint Venture HTML 30K 28: R18 Investments HTML 31K 29: R19 Product Warranty HTML 46K 30: R20 Income Taxes HTML 44K 31: R21 Commitments and Contingencies HTML 40K 32: R22 Share-Based Employee Compensation HTML 58K 33: R23 Fair Value of Financial Instruments HTML 101K 34: R24 Derivatives and Hedging HTML 130K 35: R25 Accumulated Other Comprehensive Income (Loss) HTML 71K 36: R26 Segment Information HTML 74K 37: R27 Subsequent Event (Notes) HTML 27K 38: R28 Basis of Presentation (Policies) HTML 46K 39: R29 Leases (Tables) HTML 128K 40: R30 Revenue Recognition (Tables) HTML 107K 41: R31 Estimated Credit Losses (Tables) HTML 46K 42: R32 Business Combinations (Tables) HTML 45K 43: R33 Earnings (Loss) per Common Share (Tables) HTML 58K 44: R34 Inventories (Tables) HTML 35K 45: R35 Goodwill and Intangible Assets (Tables) HTML 71K 46: R36 Product Warranty (Tables) HTML 45K 47: R37 Income Taxes (Tables) HTML 32K 48: R38 Commitments and Contingencies (Tables) HTML 31K 49: R39 Share-Based Employee Compensation (Tables) HTML 42K 50: R40 Fair Value of Financial Instruments (Tables) HTML 96K 51: R41 Derivatives and Hedging (Tables) HTML 70K 52: R42 Accumulated Other Comprehensive Income (Loss) HTML 70K (Tables) 53: R43 Segment Information (Tables) HTML 73K 54: R44 Basis of Presentation Adoption of New Accounting HTML 26K Standards (Details) 55: R45 Leases - 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Document |
Form | i 10-Q |
i ☒ | Quarterly
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
i ☐ | Transition
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
i Callaway
Golf Company | ||
(Exact name of registrant as specified in its charter) | ||
i Delaware | i 95-3797580 | |
(State
or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title
of Each Class | Trading Symbol(s) | Name of Each Exchange on which Registered |
i Common Stock, $0.01 par value per share | i ELY | i The
New York Stock Exchange |
i Large accelerated filer | ☒ | Accelerated filer | ☐ |
Non-accelerated
filer | ☐ | Smaller reporting company | i ☐ |
Emerging growth company | i ☐ |
• | certain risks
and uncertainties, including changes in capital market or economic conditions, particularly the uncertainty related to the duration and impact of the COVID-19 pandemic, and related decreases in consumer demand and spending; |
• | the impact of the COVID-19 pandemic and other potential future outbreaks of infectious diseases or other health concerns, and measures taken to limit their impact, which could adversely affect the Company’s business, consumer demand and supply chain, and the global economy; |
• | disruptions
to business operations whether from COVID-19-related travel restrictions, mandated quarantines or voluntary “social distancing” that affects employees, customers and suppliers, production delays, closures of manufacturing facilities, retail locations, warehouses and supply and distribution chains, and staffing shortages as a result of remote working requirements or otherwise; |
• | a material impact on the Company's tax provision as a result of the Tax Act; |
• | consumer
acceptance of and demand for the Company’s products; |
• | future retailer purchasing activity, which can be significantly affected by adverse industry conditions and overall retail inventory levels; |
• | any unfavorable changes in U.S. trade, tax or other policies, including restrictions on imports or an increase in import tariffs; |
• | the
level of promotional activity in the marketplace; |
• | future consumer discretionary purchasing activity, which can be significantly adversely affected by unfavorable economic or market conditions; |
• | future changes in foreign currency exchange rates and the degree of effectiveness of the Company’s hedging programs; |
• | the
ability of the Company to manage international business risks; |
• | the Company's ability to recognize operational synergies and scale opportunities across its supply chain and global business platform; |
• | the costs and disruption associated with activist investors; |
• | significant
developments stemming from the U.K.’s withdrawal from the European Union, which could have a material adverse effect on the Company; |
• | adverse changes in the credit markets or continued compliance with the terms of the Company’s credit facilities; |
• | the
Company's ability to monetize its investments; |
• | the Company's ability to successfully integrate, operate and expand the retail stores of the acquired TravisMathew and Jack Wolfskin businesses; |
• | delays, difficulties or increased costs in the supply of components needed to manufacture the Company’s products or in manufacturing the
Company’s products, including the Company's dependence on a limited number of suppliers for some of its products; |
• | adverse weather conditions and seasonality; |
• | any rule changes or other actions taken by the USGA or other golf association that could have an adverse impact upon demand or supply of the Company’s products; |
• | the
ability of the Company to protect its intellectual property rights; |
• | a decrease in participation levels in golf; |
• | the effect of terrorist activity, armed conflict, natural disasters or pandemic diseases, including without limitation the COVID-19 pandemic, on the economy generally, on the level of demand for the Company’s products or on the
Company’s ability to manage its supply and delivery logistics in such an environment; and |
• | the general risks and uncertainties applicable to the Company and its business. |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. |
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | i 164,416 | $ | i 106,666 | |||
Accounts
receivable, net | i 214,004 | i 140,455 | |||||
Inventories | i 379,169 | i 456,639 | |||||
Income
taxes receivable | i 16,624 | i 9,919 | |||||
Other
current assets | i 66,348 | i 75,671 | |||||
Total
current assets | i 840,561 | i 789,350 | |||||
Property,
plant and equipment, net | i 149,618 | i 132,760 | |||||
Operating
lease right-of-use assets, net | i 189,381 | i 160,098 | |||||
Intangible
assets, net | i 465,696 | i 493,423 | |||||
Goodwill | i 55,579 | i 203,743 | |||||
Deferred
taxes, net | i 48,746 | i 73,948 | |||||
Investment
in golf-related venture | i 90,134 | i 90,134 | |||||
Other
assets | i 19,941 | i 17,092 | |||||
Total
assets | $ | i 1,859,656 | $ | i 1,960,548 | |||
LIABILITIES
AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | i 204,980 | $ | i 276,300 | |||
Accrued
employee compensation and benefits | i 29,455 | i 46,891 | |||||
Asset-based
credit facilities | i 55,551 | i 144,580 | |||||
Accrued
warranty expense | i 9,779 | i 9,636 | |||||
Operating
lease liabilities, short-term | i 28,772 | i 26,418 | |||||
Current
portion of long-term debt | i 8,653 | i 7,317 | |||||
Income
taxes payable | i 6,430 | i 12,104 | |||||
Total
current liabilities | i 343,620 | i 523,246 | |||||
Long-term
liabilities: | |||||||
Operating lease liabilities, long-term | i 172,093 | i 137,696 | |||||
Long-term
debt (Note 6) | i 628,851 | i 443,259 | |||||
Income
tax liability | i 7,104 | i 7,264 | |||||
Deferred
taxes, net | i 65,712 | i 73,483 | |||||
Other
long-term liabilities | i 17,728 | i 8,247 | |||||
Commitments
and contingencies (Note 14) | i | i | |||||
Shareholders’
equity: | |||||||
Preferred stock, $0.01 par value, 3,000,000 shares authorized, none issued and outstanding at June 30, 2020 and December 31, 2019 | i — | i — | |||||
Common
stock, $0.01 par value, 240,000,000 shares authorized, 95,648,648 shares issued at both June 30, 2020 and December 31, 2019, respectively | i 956 | i 956 | |||||
Additional
paid-in capital | i 341,615 | i 323,600 | |||||
Retained
earnings | i 348,376 | i 489,382 | |||||
Accumulated
other comprehensive loss | ( i 39,792 | ) | ( i 22,422 | ) | |||
Less:
Common stock held in treasury, at cost, 1,485,104 and 1,450,875 shares at June 30, 2020 and December 31, 2019, respectively | ( i 26,607 | ) | ( i 24,163 | ) | |||
Total
shareholders’ equity | i 624,548 | i 767,353 | |||||
Total
liabilities and shareholders’ equity | $ | i 1,859,656 | $ | i 1,960,548 |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net sales | $ | i 296,996 | $ | i 446,708 | $ | i 739,272 | $ | i 962,905 | |||||||
Cost
of sales | i 174,941 | i 239,891 | i 421,543 | i 517,655 | |||||||||||
Gross
profit | i 122,055 | i 206,817 | i 317,729 | i 445,250 | |||||||||||
Operating
expenses: | |||||||||||||||
Selling expense | i 80,166 | i 113,113 | i 191,227 | i 232,434 | |||||||||||
General
and administrative expense | i 35,049 | i 35,423 | i 65,742 | i 72,361 | |||||||||||
Research
and development expense | i 10,020 | i 13,082 | i 23,260 | i 25,620 | |||||||||||
Goodwill
and trade name impairment | i 174,269 | i — | i 174,269 | i — | |||||||||||
Total
operating expenses | i 299,504 | i 161,618 | i 454,498 | i 330,415 | |||||||||||
Income
(loss) from operations | ( i 177,449 | ) | i 45,199 | ( i 136,769 | ) | i 114,835 | |||||||||
Interest
income | i 119 | i 476 | i 218 | i 665 | |||||||||||
Interest
expense | ( i 12,282 | ) | ( i 10,736 | ) | ( i 21,496 | ) | ( i 20,564 | ) | |||||||
Other
income (expense), net | i 13,997 | i 1,167 | i 20,477 | ( i 773 | ) | ||||||||||
Income
(loss) before income taxes | ( i 175,615 | ) | i 36,106 | ( i 137,570 | ) | i 94,163 | |||||||||
Income
tax provision (benefit) | ( i 7,931 | ) | i 7,208 | i 1,220 | i 16,764 | ||||||||||
Net
income (loss) | ( i 167,684 | ) | i 28,898 | ( i 138,790 | ) | i 77,399 | |||||||||
Less:
Net loss attributable to non-controlling interest | i — | ( i 33 | ) | i — | ( i 179 | ) | |||||||||
Net
income (loss) attributable to Callaway Golf Company | $ | ( i 167,684 | ) | $ | i 28,931 | $ | ( i 138,790 | ) | $ | i 77,578 | |||||
Earnings
(loss) per common share: | |||||||||||||||
Basic | $ | ( i 1.78 | ) | $ | i 0.31 | $ | ( i 1.47 | ) | $ | i 0.82 | |||||
Diluted | $ | ( i 1.78 | ) | $ | i 0.30 | $ | ( i 1.47 | ) | $ | i 0.81 | |||||
Weighted-average
common shares outstanding: | |||||||||||||||
Basic | i 94,141 | i 94,074 | i 94,225 | i 94,377 | |||||||||||
Diluted | i 94,141 | i 95,891 | i 94,225 | i 96,153 |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss) | $ | ( i 167,684 | ) | $ | i 28,898 | $ | ( i 138,790 | ) | $ | i 77,399 | |||||
Other
comprehensive income: | |||||||||||||||
Change in derivative instruments | ( i 13,453 | ) | ( i 5,567 | ) | ( i 14,042 | ) | ( i 8,741 | ) | |||||||
Foreign
currency translation adjustments | i 8,155 | i 1,321 | ( i 6,781 | ) | ( i 1,657 | ) | |||||||||
Comprehensive
income (loss), before income tax on other comprehensive income items | ( i 172,982 | ) | i 24,652 | ( i 159,613 | ) | i 67,001 | |||||||||
Income
tax benefit on derivative instruments | i 3,023 | i 1,916 | i 3,453 | i 1,488 | |||||||||||
Comprehensive
income (loss) | ( i 169,959 | ) | i 26,568 | ( i 156,160 | ) | i 68,489 | |||||||||
Less:
Comprehensive loss attributable to non-controlling interests | i — | ( i 231 | ) | i — | ( i 339 | ) | |||||||||
Comprehensive
income (loss) attributable to Callaway Golf Company | $ | ( i 169,959 | ) | $ | i 26,799 | $ | ( i 156,160 | ) | $ | i 68,828 |
Six
Months Ended June 30, | |||||||
2020 | 2019 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | ( i 138,790 | ) | $ | i 77,399 | ||
Adjustments
to reconcile net income (loss) to net cash used in operating activities: | |||||||
Depreciation and amortization | i 18,357 | i 16,999 | |||||
Lease
amortization expense | i 16,313 | i 15,279 | |||||
Amortization
of debt issuance costs | i 1,823 | i 1,295 | |||||
Debt
discount amortization | i 1,483 | i — | |||||
Inventory
step-up on acquisition | i — | i 10,703 | |||||
Impairment
loss | i 174,269 | i — | |||||
Deferred
taxes, net | i 8,684 | i 10,514 | |||||
Non-cash
share-based compensation | i 4,794 | i 6,964 | |||||
Loss
on disposal of long-lived assets | i 123 | i 657 | |||||
Unrealized
net (gains) losses on hedging instruments | ( i 14,059 | ) | i 2,677 | ||||
Change
in assets and liabilities, net of effect from acquisitions: | |||||||
Accounts receivable, net | ( i 73,177 | ) | ( i 156,548 | ) | |||
Inventories | i 73,029 | i 57,509 | |||||
Other
assets | i 13,984 | ( i 1,182 | ) | ||||
Accounts
payable and accrued expenses | ( i 72,492 | ) | ( i 51,924 | ) | |||
Accrued
employee compensation and benefits | ( i 16,876 | ) | ( i 10,331 | ) | |||
Accrued
warranty expense | i 143 | i 1,159 | |||||
Change
in operating leases, net | ( i 13,438 | ) | ( i 14,335 | ) | |||
Income
taxes receivable/payable, net | ( i 13,118 | ) | ( i 16,224 | ) | |||
Other
liabilities | i 8,627 | ( i 1,370 | ) | ||||
Net
cash used in operating activities | ( i 20,321 | ) | ( i 50,759 | ) | |||
Cash
flows from investing activities: | |||||||
Capital expenditures | ( i 25,097 | ) | ( i 23,403 | ) | |||
Note
receivable, net of discount | ( i 5,234 | ) | i — | ||||
Acquisitions,
net of cash acquired | i — | ( i 463,105 | ) | ||||
Proceeds
from sales of property and equipment | i — | i 15 | |||||
Net
cash used in investing activities | ( i 30,331 | ) | ( i 486,493 | ) | |||
Cash
flows from financing activities: | |||||||
Proceeds from issuance of convertible notes | i 258,750 | i — | |||||
Proceeds
from issuance of long-term debt | i 9,766 | i 480,000 | |||||
Premium
paid for capped call transactions | ( i 31,775 | ) | i — | ||||
Debt
issuance cost | ( i 9,119 | ) | ( i 18,971 | ) | |||
(Repayments
of) proceeds from credit facilities, net | ( i 89,029 | ) | i 125,167 | ||||
Repayments
of long-term debt | ( i 5,504 | ) | ( i 2,325 | ) | |||
Repayments
of financing leases | ( i 206 | ) | ( i 232 | ) | |||
Exercise
of stock options | i 130 | i — | |||||
Dividends
paid, net | ( i 1,891 | ) | ( i 1,893 | ) | |||
Acquisition
of treasury stock | ( i 21,953 | ) | ( i 27,394 | ) | |||
Net
cash provided by financing activities | i 109,169 | i 554,352 | |||||
Effect
of exchange rate changes on cash and cash equivalents | ( i 767 | ) | i 409 | ||||
Net
increase in cash and cash equivalents | i 57,750 | i 17,509 | |||||
Cash
and cash equivalents at beginning of period | i 106,666 | i 63,981 | |||||
Cash
and cash equivalents at end of period | $ | i 164,416 | $ | i 81,490 | |||
Supplemental
disclosures: | |||||||
Cash paid for income taxes, net | $ | i 1,692 | $ | i 4,602 | |||
Cash
paid for interest and fees | $ | i 16,489 | $ | i 17,061 | |||
Non-cash
investing and financing activities: | |||||||
Acquisition of minority interest | $ | i — | $ | i 18,538 | |||
Issuance
of treasury stock and common stock for compensatory stock awards released from restriction | $ | i 19,143 | $ | i 19,304 | |||
Accrued
capital expenditures at period-end | $ | i 1,861 | $ | i 1,629 |
Shareholders'
Equity Callaway Golf Company | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury
Stock | Total Callaway Golf Company Shareholders' Equity | Non- Controlling Interest | |||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||
Balance,
March 31, 2019 | i 95,649 | $ | i 956 | $ | i 326,209 | $ | i 461,456 | $ | ( i 20,172 | ) | ( i 1,604 | ) | $ | ( i 26,595 | ) | $ | i 741,854 | $ | i 9,480 | $ | i 751,334 | ||||||||||||||||||||
Acquisition
of treasury stock | — | — | — | — | — | ( i 1 | ) | ( i 17 | ) | ( i 17 | ) | — | ( i 17 | ) | |||||||||||||||||||||||||||
Compensatory
awards released from restriction | — | — | ( i 837 | ) | i — | — | i 50 | i 837 | — | — | — | ||||||||||||||||||||||||||||||
Share-based
compensation | — | — | i 3,529 | — | — | — | — | i 3,529 | — | i 3,529 | |||||||||||||||||||||||||||||||
Stock
dividends | — | — | i — | ( i 2 | ) | — | i — | i 2 | — | — | — | ||||||||||||||||||||||||||||||
Cash
dividends ($0.01 per share) | — | — | — | ( i 940 | ) | — | — | — | ( i 940 | ) | — | ( i 940 | ) | ||||||||||||||||||||||||||||
Equity
adjustment from foreign currency translation | — | — | — | — | i 1,552 | — | — | i 1,552 | ( i 231 | ) | i 1,321 | ||||||||||||||||||||||||||||||
Change
in fair value of derivative instruments | — | — | — | — | ( i 3,651 | ) | — | — | ( i 3,651 | ) | — | ( i 3,651 | ) | ||||||||||||||||||||||||||||
Acquisition
of non-controlling interest | — | — | ( i 9,322 | ) | — | — | — | — | ( i 9,322 | ) | ( i 9,216 | ) | ( i 18,538 | ) | |||||||||||||||||||||||||||
Net
Income | — | — | — | i 28,931 | — | — | — | i 28,931 | ( i 33 | ) | i 28,898 | ||||||||||||||||||||||||||||||
Balance,
June 30, 2019 | i 95,649 | $ | i 956 | $ | i 319,579 | $ | i 489,445 | $ | ( i 22,271 | ) | ( i 1,555 | ) | $ | ( i 25,773 | ) | $ | i 761,936 | $ | i — | $ | i 761,936 |
Shareholders'
Equity Callaway Golf Company | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury
Stock | Total Callaway Golf Company Shareholders' Equity | Non- Controlling Interest | |||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||
Balance,
December 31, 2018 | i 95,649 | $ | i 956 | $ | i 341,241 | $ | i 413,799 | $ | ( i 13,700 | ) | ( i 1,138 | ) | $ | ( i 17,722 | ) | $ | i 724,574 | $ | i 9,734 | $ | i 734,308 | ||||||||||||||||||||
Acquisition
of treasury stock | — | — | — | — | — | ( i 1,655 | ) | ( i 27,394 | ) | ( i 27,394 | ) | — | ( i 27,394 | ) | |||||||||||||||||||||||||||
Compensatory
awards released from restriction | i — | i — | ( i 19,304 | ) | — | — | i 853 | i 19,304 | — | — | — | ||||||||||||||||||||||||||||||
Share-based
compensation | — | — | i 6,964 | — | — | — | — | i 6,964 | — | i 6,964 | |||||||||||||||||||||||||||||||
Stock
dividends | — | i — | ( i 39 | ) | — | i 385 | i 39 | — | — | — | |||||||||||||||||||||||||||||||
Cash
dividends | — | — | — | ( i 1,893 | ) | — | — | — | ( i 1,893 | ) | — | ( i 1,893 | ) | ||||||||||||||||||||||||||||
Equity
adjustment from foreign currency translation | — | — | — | — | ( i 1,318 | ) | — | ( i 1,318 | ) | ( i 339 | ) | ( i 1,657 | ) | ||||||||||||||||||||||||||||
Change
in fair value of derivative instruments | — | — | — | — | ( i 7,253 | ) | — | — | ( i 7,253 | ) | — | ( i 7,253 | ) | ||||||||||||||||||||||||||||
Acquisition
of non-controlling interest | — | — | ( i 9,322 | ) | — | — | — | — | ( i 9,322 | ) | ( i 9,216 | ) | ( i 18,538 | ) | |||||||||||||||||||||||||||
Net
Income | — | — | — | i 77,578 | — | — | i 77,578 | ( i 179 | ) | i 77,399 | |||||||||||||||||||||||||||||||
Balance,
June 30, 2019 | i 95,649 | $ | i 956 | $ | i 319,579 | $ | i 489,445 | $ | ( i 22,271 | ) | ( i 1,555 | ) | $ | ( i 25,773 | ) | $ | i 761,936 | $ | i — | $ | i 761,936 |
Shareholders'
Equity Callaway Golf Company | |||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury
Stock | Total Callaway Golf Company Shareholders' Equity | ||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||
Balance
at March 31, 2020 | i 95,649 | $ | i 956 | $ | i 307,133 | $ | i 517,004 | $ | ( i 37,517 | ) | ( i 1,541 | ) | $ | ( i 27,609 | ) | $ | i 759,967 | ||||||||||||||||
Acquisition
of treasury stock | — | — | — | — | — | ( i 1 | ) | ( i 15 | ) | ( i 15 | ) | ||||||||||||||||||||||
Compensatory
awards released from restriction | — | — | ( i 1,014 | ) | — | — | i 57 | i 1,014 | — | ||||||||||||||||||||||||
Share-based
compensation | — | — | i 2,933 | — | — | — | — | i 2,933 | |||||||||||||||||||||||||
Stock
dividends | — | — | ( i 1 | ) | ( i 2 | ) | — | — | i 3 | — | |||||||||||||||||||||||
Cash
dividends ($0.01 per share) | — | — | — | ( i 942 | ) | — | — | — | ( i 942 | ) | |||||||||||||||||||||||
Equity
adjustment from foreign currency translation | — | — | — | — | i 8,155 | — | — | i 8,155 | |||||||||||||||||||||||||
Change
in fair value of derivative instruments, net of tax | — | — | — | — | ( i 10,430 | ) | — | — | ( i 10,430 | ) | |||||||||||||||||||||||
Equity
component of convertible notes, net of issuance costs and tax | — | — | i 57,077 | — | — | — | — | i 57,077 | |||||||||||||||||||||||||
Premiums
paid for capped call transactions, net of tax | — | — | (24,513 | ) | — | — | — | — | (24,513 | ) | |||||||||||||||||||||||
Net
loss | — | — | — | ( i 167,684 | ) | — | — | — | ( i 167,684 | ) | |||||||||||||||||||||||
Balance
at June 30, 2020 | i 95,649 | $ | i 956 | $ | i 341,615 | $ | i 348,376 | $ | ( i 39,792 | ) | ( i 1,485 | ) | $ | ( i 26,607 | ) | $ | i 624,548 |
Shareholders'
Equity Callaway Golf Company | |||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury
Stock | Total Callaway Golf Company Shareholders' Equity | ||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||
Balance
at December 31, 2019 | i 95,649 | $ | i 956 | $ | i 323,600 | $ | i 489,382 | $ | ( i 22,422 | ) | ( i 1,451 | ) | $ | ( i 24,163 | ) | $ | i 767,353 | ||||||||||||||||
Adoption
of accounting standard | — | — | — | ( i 289 | ) | — | — | — | ( i 289 | ) | |||||||||||||||||||||||
Acquisition
of treasury stock | — | — | — | — | — | ( i 1,168 | ) | ( i 21,953 | ) | ( i 21,953 | ) | ||||||||||||||||||||||
Exercise
of stock options | — | — | ( i 203 | ) | — | — | i 20 | i 333 | i 130 | ||||||||||||||||||||||||
Compensatory
awards released from restriction | — | — | ( i 19,143 | ) | — | — | i 1,112 | i 19,143 | — | ||||||||||||||||||||||||
Share-based
compensation | — | — | i 4,794 | — | — | — | — | i 4,794 | |||||||||||||||||||||||||
Stock
dividends | — | — | i 3 | ( i 36 | ) | — | i 2 | i 33 | — | ||||||||||||||||||||||||
Cash
dividends ($0.01 per share) | — | — | — | ( i 1,891 | ) | — | — | — | ( i 1,891 | ) | |||||||||||||||||||||||
Equity
adjustment from foreign currency translation | — | — | — | — | ( i 6,781 | ) | — | — | ( i 6,781 | ) | |||||||||||||||||||||||
Change
in fair value of derivative instruments, net of tax | — | — | — | — | ( i 10,589 | ) | — | — | ( i 10,589 | ) | |||||||||||||||||||||||
Equity
component of convertible notes, net of issuance costs and tax | — | — | i 57,077 | — | — | — | — | i 57,077 | |||||||||||||||||||||||||
Premiums
paid for capped call transactions, net of tax | — | — | (24,513 | ) | — | — | — | — | (24,513 | ) | |||||||||||||||||||||||
Net
loss | — | — | — | ( i 138,790 | ) | — | — | — | ( i 138,790 | ) | |||||||||||||||||||||||
Balance
at June 30, 2020 | i 95,649 | $ | i 956 | $ | i 341,615 | $ | i 348,376 | $ | ( i 39,792 | ) | ( i 1,485 | ) | $ | ( i 26,607 | ) | $ | i 624,548 |
Balance
Sheet Location | 2020 | ||||||||
Operating leases | |||||||||
ROU
assets, net | Operating lease ROU assets, net | $ | i 189,381 | $ | i 160,098 | ||||
Lease
liabilities, short-term | Operating lease liabilities, short-term | $ | i 28,772 | $ | i 26,418 | ||||
Lease
liabilities, long-term | Operating lease liabilities, long-term | $ | i 172,093 | $ | i 137,696 | ||||
Finance
Leases | |||||||||
ROU assets, net, | Other assets | $ | i 1,065 | $ | i 1,263 | ||||
Lease
liabilities, short-term | Accounts payable and accrued expenses | $ | i 527 | $ | i 589 | ||||
Lease
liabilities, long-term | Long-term other | $ | i 539 | $ | i 558 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Operating
lease costs | $ | i 10,279 | $ | i 10,702 | $ | i 21,301 | $ | i 19,599 | |||||||
Financing
lease costs: | |||||||||||||||
Amortization of right-of-use assets | i 153 | i 220 | i 320 | i 477 | |||||||||||
Interest
on lease liabilities | i 11 | i 30 | i 22 | i 55 | |||||||||||
Total
financing lease costs | i 164 | i 250 | i 342 | i 532 | |||||||||||
Variable
lease costs | i 587 | i 846 | i 1,883 | i 2,186 | |||||||||||
Total
lease costs | $ | i 11,030 | $ | i 11,798 | $ | i 23,526 | $ | i 22,317 |
Six Months Ended June 30, | ||||||||
Supplemental Cash Flows Information | 2020 | 2019 | ||||||
Cash
paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows from operating leases | $ | i 18,227 | $ | i 20,100 | ||||
Operating
cash flows from finance leases | $ | i 22 | $ | i 55 | ||||
Financing
cash flows from finance leases | $ | i 206 | $ | i 232 | ||||
Lease
liabilities arising from new ROU assets: | ||||||||
Operating leases | $ | i 53,417 | $ | i 7,679 | ||||
Finance
leases | $ | i 130 | $ | i 81 |
Weighted average remaining lease term (years): | |||||
Operating leases | i 10.1 | i 10.4 | |||
Finance
leases | i 2.8 | i 2.8 | |||
Weighted
average discount rate: | |||||
Operating leases | i 5.4 | % | i 5.7 | % | |
Finance
leases | i 4.0 | % | i 4.2 | % |
Operating Leases | Finance Leases | ||||||
Remainder of 2020 | $ | i 20,417 | $ | i 418 | |||
2021 | i 34,965 | i 270 | |||||
2022 | i 30,389 | i 229 | |||||
2023 | i 26,453 | i 119 | |||||
2024 | i 22,963 | i 46 | |||||
Thereafter | i 127,756 | i 32 | |||||
Total
future lease payments | i 262,943 | i 1,114 | |||||
Less:
imputed interest | i 62,078 | i 47 | |||||
Total | $ | i 200,865 | $ | i 1,067 |
Operating and
Reportable Segments | |||||||||||||||||||||||
Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | ||||||||||||||||||||||
Golf Equipment | Apparel, Gear & Other | Total | Golf
Equipment | Apparel, Gear & Other | Total | ||||||||||||||||||
Major product category: | |||||||||||||||||||||||
Golf
Clubs | $ | i 156,040 | $ | i — | $ | i 156,040 | $ | i 223,741 | $ | i — | $ | i 223,741 | |||||||||||
Golf
Balls | i 53,903 | i — | i 53,903 | i 68,612 | i — | i 68,612 | |||||||||||||||||
Apparel | i — | i 36,302 | i 36,302 | i — | i 73,195 | i 73,195 | |||||||||||||||||
Gear,
Accessories & Other | i — | i 50,751 | i 50,751 | i — | i 81,160 | i 81,160 | |||||||||||||||||
$ | i 209,943 | $ | i 87,053 | $ | i 296,996 | $ | i 292,353 | $ | i 154,355 | $ | i 446,708 |
Operating
and Reportable Segments | |||||||||||||||||||||||
Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | ||||||||||||||||||||||
Golf Equipment | Apparel, Gear & Other | Total | Golf
Equipment | Apparel, Gear & Other | Total | ||||||||||||||||||
Major product category: | |||||||||||||||||||||||
Golf
Clubs | $ | i 407,264 | $ | i — | $ | i 407,264 | $ | i 485,526 | $ | i — | $ | i 485,526 | |||||||||||
Golf
Balls | i 94,340 | i — | i 94,340 | i 130,446 | i — | i 130,446 | |||||||||||||||||
Apparel | i — | i 113,592 | i 113,592 | i — | i 169,441 | i 169,441 | |||||||||||||||||
Gear,
Accessories & Other | i — | i 124,076 | i 124,076 | i — | i 177,492 | i 177,492 | |||||||||||||||||
$ | i 501,604 | $ | i 237,668 | $ | i 739,272 | $ | i 615,972 | $ | i 346,933 | $ | i 962,905 |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Major Geographic Region: | |||||||||||||||
United
States | $ | i 171,714 | $ | i 247,419 | $ | i 389,217 | $ | i 496,420 | |||||||
Europe | i 50,074 | i 81,630 | i 146,793 | i 208,243 | |||||||||||
Japan | i 24,640 | i 55,676 | i 101,987 | i 128,904 | |||||||||||
Rest
of World | i 50,568 | i 61,983 | i 101,275 | i 129,338 | |||||||||||
$ | i 296,996 | $ | i 446,708 | $ | i 739,272 | $ | i 962,905 |
Three Months Ended June 30, | Six Months Ended
June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in
thousands) | |||||||||||||||
Beginning balance as of January 1 | $ | i 6,140 | $ | i 5,474 | $ | i 5,992 | $ | i 5,610 | |||||||
Adjustment
due to the adoption of Topic 326 | — | — | i 289 | — | |||||||||||
Provision
for credit losses | i 3,619 | i 265 | i 3,632 | i 142 | |||||||||||
Write-off
of uncollectible amounts, net of recoveries | ( i 815 | ) | ( i 240 | ) | ( i 969 | ) | ( i 253 | ) | |||||||
Ending
balance as of June 30 | $ | i 8,944 | $ | i 5,499 | $ | i 8,944 | $ | i 5,499 |
Assets Acquired | ||||
Cash | $ | i 58,096 | ||
Accounts
receivable | i 26,637 | |||
Inventories | i 94,504 | |||
Income
tax receivable | i 6,588 | |||
Other current assets | i 11,483 | |||
Property
and equipment | i 20,930 | |||
Operating lease right-of-use assets | i 120,865 | |||
Deferred
tax assets | i 2,930 | |||
Other assets | i 23 | |||
Intangibles
- trade name(1) | i 239,295 | |||
Intangibles
- retail partners & distributor relationships | i 38,743 | |||
Goodwill(1) | i 150,180 | |||
Total
assets acquired | i 770,274 | |||
Liabilities Assumed | ||||
Accounts
Payable and accrued liabilities | i 46,124 | |||
Income taxes payable, long-term | i 2,416 | |||
Operating
lease liabilities | i 120,524 | |||
Deferred tax liabilities | i 80,009 | |||
Net
assets acquired | $ | i 521,201 |
(1) | In
the second quarter of 2020, the Company wrote down goodwill and the Jack Wolfskin trade name to their fair values, which resulted in impairment charges of $148,375,000 and $25,894,000, respectively (see Note 9). |
(in
thousands) | ||||
Remainder of 2020 | $ | i 7,132 | ||
2021 | i 11,297 | |||
2022 | i 11,519 | |||
2023 | i 9,107 | |||
2024 | i 8,290 | |||
Thereafter | i 687,585 | |||
$ | i 734,930 |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Earnings (loss) per common share—basic | |||||||||||||||
Net
income (loss) attributable to Callaway Golf Company | $ | ( i 167,684 | ) | $ | i 28,931 | $ | ( i 138,790 | ) | $ | i 77,578 | |||||
Weighted-average
common shares outstanding—basic | i 94,141 | i 94,074 | i 94,225 | i 94,377 | |||||||||||
Basic
earnings (loss) per common share | $ | ( i 1.78 | ) | $ | i 0.31 | $ | ( i 1.47 | ) | $ | i 0.82 | |||||
Earnings
(loss) per common share—diluted | |||||||||||||||
Net income (loss) attributable to Callaway Golf Company | $ | ( i 167,684 | ) | $ | i 28,931 | $ | ( i 138,790 | ) | $ | i 77,578 | |||||
Weighted-average
common shares outstanding—basic | i 94,141 | i 94,074 | i 94,225 | i 94,377 | |||||||||||
Outstanding
options, restricted stock units and performance share units | i — | i 1,817 | i — | i 1,776 | |||||||||||
Weighted-average
common shares outstanding—diluted | i 94,141 | i 95,891 | i 94,225 | i 96,153 | |||||||||||
Diluted
earnings (loss) per common share | $ | ( i 1.78 | ) | $ | i 0.30 | $ | ( i 1.47 | ) | $ | i 0.81 |
Inventories: | |||||||
Raw materials | $ | i 69,959 | $ | i 76,140 | |||
Work-in-process | i 997 | i 860 | |||||
Finished
goods | i 308,213 | i 379,639 | |||||
$ | i 379,169 | $ | i 456,639 |
Useful Life (Years) | |||||||||||||||||||||||||||||
Gross(1) | Accumulated Amortization | Net Book Value | Gross | Accumulated
Amortization | Net Book Value | ||||||||||||||||||||||||
Indefinite-lived: | |||||||||||||||||||||||||||||
Trade
name, trademark, trade dress and other | NA | $ | i 428,439 | $ | — | $ | i 428,439 | $ | i 453,837 | $ | — | $ | i 453,837 | ||||||||||||||||
Amortizing: | |||||||||||||||||||||||||||||
Patents | 2-16 | i 31,581 | i 31,581 | i — | i 31,581 | i 31,581 | i — | ||||||||||||||||||||||
Customer
and distributor relationships and other | 1-10 | i 54,304 | i 17,047 | i 37,257 | i 53,904 | i 14,318 | i 39,586 | ||||||||||||||||||||||
Total
intangible assets | $ | i 514,324 | $ | i 48,628 | $ | i 465,696 | $ | i 539,322 | $ | i 45,899 | $ | i 493,423 |
Remainder of 2020 | $ | i 2,391 | |
2021 | i 4,724 | ||
2022 | i 4,548 | ||
2023 | i 4,409 | ||
2024 | i 4,409 | ||
Thereafter | i 16,776 | ||
$ | i 37,257 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Beginning balance | $ | i 9,791 | $ | i 10,783 | $ | i 9,636 | $ | i 7,610 | |||||||
Provision | i 1,562 | i 2,127 | i 3,370 | i 4,606 | |||||||||||
Provision
liability assumed from acquisition | i — | i 273 | i — | i 2,600 | |||||||||||
Claims
paid/costs incurred | ( i 1,574 | ) | ( i 2,207 | ) | ( i 3,227 | ) | ( i 3,840 | ) | |||||||
Ending
balance | $ | i 9,779 | $ | i 10,976 | $ | i 9,779 | $ | i 10,976 |
Tax
Jurisdiction | Years No Longer Subject to Audit | |
U.S. federal | i 2010 and prior | |
California (U.S.) | i 2008
and prior | |
Germany | i 2014 and prior | |
Japan | i 2013
and prior | |
South Korea | i 2014 and prior | |
United Kingdom | i 2015
and prior |
Remainder
of 2020 | $ | i 45,202 | |
2021 | i 20,252 | ||
2022 | i 9,119 | ||
2023 | i 2,440 | ||
2024 | i 125 | ||
$ | i 77,138 |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Cost
of sales | $ | i 239 | $ | i 247 | $ | i 395 | $ | i 502 | |||||||
Operating
expenses | i 2,694 | i 3,283 | i 4,399 | i 6,463 | |||||||||||
Total
cost of share-based compensation included in income, before income tax | $ | i 2,933 | $ | i 3,530 | $ | i 4,794 | $ | i 6,965 |
Fair Value | Level 1 | Level
2 | Level 3 | ||||||||||||
Foreign currency forward contracts—asset
position | $ | i 3,378 | $ | — | $ | i 3,378 | $ | — | |||||||
Foreign
currency forward contracts—liability position | ( i 825 | ) | — | ( i 825 | ) | — | |||||||||
Interest
rate hedge agreements—liability position | ( i 20,602 | ) | — | ( i 20,602 | ) | — | |||||||||
$ | ( i 18,049 | ) | $ | — | $ | ( i 18,049 | ) | $ | — | ||||||
Foreign currency forward contracts—asset position | $ | i 61 | $ | — | $ | i 61 | $ | — | |||||||
Foreign
currency forward contracts—liability position | ( i 766 | ) | — | ( i 766 | ) | — | |||||||||
Cross-currency
debt swap agreements—asset position | i 6,163 | — | i 6,163 | — | |||||||||||
Cross-currency
debt swap agreements—liability position | ( i 25 | ) | — | ( i 25 | ) | — | |||||||||
Interest
rate hedge agreements—asset position | ( i 8,894 | ) | — | ( i 8,894 | ) | — | |||||||||
$ | ( i 3,461 | ) | $ | — | $ | ( i 3,461 | ) | $ | — |
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Term
Loan Facility(1) | $ | i 444,000 | $ | i 440,168 | $ | i 446,400 | $ | i 450,864 | |||||||
Convertible
Notes(2) | $ | i 258,750 | $ | i 319,952 | $ | i — | $ | i — | |||||||
Primary
Asset-Based Revolving Credit Facility(3) | $ | i 27,756 | $ | i 27,756 | $ | i 114,480 | $ | i 114,480 | |||||||
Japan
ABL Facility(3) | $ | i 27,795 | $ | i 27,795 | $ | i 30,100 | $ | i 30,100 | |||||||
Equipment
notes(4) | $ | i 26,754 | $ | i 26,754 | $ | i 19,715 | $ | i 19,715 |
(1) | In
January 2019, the Company entered into a Term Loan Facility. The fair value of this debt is categorized within Level 2 of the fair value hierarchy. See Note 6 for further information. |
(2) | In May 2020, the Company issued $ i 258,750,000
of i 2.75% Convertibles Notes due in 2026. The fair value of this debt is categorized within Level 2 of the fair value hierarchy. For further discussion, see Note 6. |
(3) | The
carrying value of the amounts outstanding under the Company's ABL Facility and Japan ABL Facility approximates the fair value due to the short-term nature of these obligations. The fair value of this debt is categorized within Level 2 of the fair value hierarchy based on the observable market borrowing rates. See Note 6 for information on the Company's credit facilities, including certain risks and uncertainties related thereto. |
(4) | In December 2017, August 2019 and March 2020, the
Company entered into equipment notes that are both secured by certain equipment at the Company's golf ball manufacturing facility. The fair value of this debt is categorized within Level 2 of the fair value hierarchy. See Note 6 for further information. |
Balance Sheet Location | Fair Value of Asset Derivatives | ||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||
Foreign currency forward contracts | Other current assets | $ | i 999 | $ | i 53 | ||||
Derivatives
not designated as hedging instruments: | |||||||||
Foreign currency forward contracts | Other current assets | $ | i 2,379 | $ | i 8 |
Balance Sheet Location | Fair
Value of Liability Derivatives | ||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||
Foreign
currency forward contracts | Accounts payable and accrued expenses | $ | i 31 | $ | i 24 | ||||
Cross-currency
debt swap agreements | Accounts payable and accrued expenses | i — | i 25 | ||||||
Interest
rate hedge agreements | Accounts payable and accrued expenses | i 4,756 | i 1,865 | ||||||
Other
long-term liabilities | i 15,846 | i 7,030 | |||||||
Total | $ | i 20,633 | $ | i 8,944 | |||||
Derivatives
not designated as hedging instruments: | |||||||||
Foreign currency forward contracts | Accounts payable and accrued expenses | $ | i 794 | $ | i 741 |
• | Net gains of $ i 11,046,000
related to the discontinuation of the cross-currency swap contract were recognized in other income (expense) in the three and six months ended June 30, 2020. |
• | Net gains related to foreign currency of $ i 5,735,000
were recognized in other income (expense) in the six months ended June 30, 2020. There were no net foreign currency gains or losses recognized in the three months ended June 30, 2020. |
• | Net gains of $ i 417,000
and $ i 1,730,000 were recognized in interest income during the three and six months ended June 30, 2020. |
• | Net
gains of $ i 2,178,000 and $ i 2,287,000
were recognized in interest income in the three and six months ended June 30, 2019. |
• | Net losses related to foreign currency of $ i 2,731,000
and $ i 35,000 were recognized in other income (expense) in the three and six months ended June 30, 2019. |
Gain/(Loss)
Recognized in Other Comprehensive Income (Effective Portion) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Derivatives designated as cash flow hedging instruments | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Foreign
currency forward contracts | $ | ( i 436 | ) | $ | i 27 | $ | i 1,974 | $ | i 573 | |||||||
Cross-currency
debt swap agreements | i — | ( i 2,907 | ) | i 15,081 | i 1,164 | |||||||||||
Interest
rate hedge agreements | ( i 1,928 | ) | ( i 3,956 | ) | ( i 13,161 | ) | ( i 7,897 | ) | ||||||||
$ | ( i 2,364 | ) | $ | ( i 6,836 | ) | $ | i 3,894 | $ | ( i 6,160 | ) |
Gain/(Loss)
Reclassified from Other Comprehensive Income into Earnings (Effective Portion) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Derivatives designated as cash flow hedging instruments | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Foreign
currency forward contracts | $ | i 638 | $ | i 228 | $ | i 872 | $ | i 374 | ||||||||
Cross-currency
debt swap agreements | i 11,463 | ( i 1,463 | ) | i 18,510 | i 2,251 | |||||||||||
Interest
rate hedge agreements | ( i 1,017 | ) | ( i 34 | ) | ( i 1,447 | ) | ( i 44 | ) | ||||||||
$ | i 11,084 | $ | ( i 1,269 | ) | $ | i 17,935 | $ | i 2,581 |
Location of Net
Gain Recognized in Income on Derivative Instruments | Amount of Net Gain/(Loss) Recognized in Income on Derivative Instruments | |||||||||||||||||
Derivatives not designated as hedging instruments | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||
Foreign
currency forward contracts | Other expense, net | $ | ( i 595 | ) | $ | i 691 | $ | i 5,261 | $ | i 1,441 |
Derivative
Instruments | Foreign Currency Translation | Total | ||||||||||
Accumulated other comprehensive loss, March 31, 2020, after tax | $ | ( i 4,362 | ) | $ | ( i 33,155 | ) | $ | ( i 37,517 | ) | |||
Change
in derivative instruments | ( i 2,364 | ) | i — | ( i 2,364 | ) | |||||||
Net
gains reclassified to cost of goods sold | ( i 639 | ) | i — | ( i 639 | ) | |||||||
Net
gains reclassified to other income (expense) | ( i 11,046 | ) | i — | ( i 11,046 | ) | |||||||
Net
gains reclassified to interest expense | i 596 | i — | i 596 | |||||||||
Income
tax benefit on derivative instruments | i 3,023 | i — | i 3,023 | |||||||||
Foreign
currency translation adjustments | i — | i 8,155 | i 8,155 | |||||||||
Accumulated
other comprehensive loss, June 30, 2020, after tax | $ | ( i 14,792 | ) | $ | ( i 25,000 | ) | $ | ( i 39,792 | ) |
Derivative
Instruments | Foreign Currency Translation | Total | ||||||||||
Accumulated other comprehensive loss, December 31, 2019, after tax | $ | ( i 4,203 | ) | $ | ( i 18,219 | ) | $ | ( i 22,422 | ) | |||
Change
in derivative instruments | i 3,894 | i — | i 3,894 | |||||||||
Net
gains reclassified to cost of goods sold | ( i 872 | ) | i — | ( i 872 | ) | |||||||
Net
gains reclassified to other income (expense) | ( i 16,781 | ) | i — | ( i 16,781 | ) | |||||||
Net
gains reclassified to interest expense | ( i 283 | ) | i — | ( i 283 | ) | |||||||
Income
tax benefit on derivative instruments | i 3,453 | i — | i 3,453 | |||||||||
Foreign
currency translation adjustments | i — | ( i 6,781 | ) | ( i 6,781 | ) | |||||||
Accumulated
other comprehensive loss, June 30, 2020, after tax | $ | ( i 14,792 | ) | $ | ( i 25,000 | ) | $ | ( i 39,792 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net
sales: | |||||||||||||||
Golf Equipment | $ | i 209,943 | $ | i 292,353 | $ | i 501,604 | $ | i 615,972 | |||||||
Apparel,
Gear and Other | i 87,053 | i 154,355 | i 237,668 | i 346,933 | |||||||||||
$ | i 296,996 | $ | i 446,708 | $ | i 739,272 | $ | i 962,905 | ||||||||
Income
(loss) before income taxes: | |||||||||||||||
Golf Equipment | $ | i 29,181 | $ | i 55,665 | $ | i 87,801 | $ | i 125,658 | |||||||
Apparel,
Gear and Other | ( i 11,711 | ) | i 11,314 | ( i 15,510 | ) | i 34,033 | |||||||||
Reconciling
items(1) | ( i 193,085 | ) | ( i 30,873 | ) | ( i 209,861 | ) | ( i 65,528 | ) | |||||||
$ | ( i 175,615 | ) | $ | i 36,106 | $ | ( i 137,570 | ) | $ | i 94,163 | ||||||
Additions
to long-lived assets:(2) | |||||||||||||||
Golf Equipment | $ | i 2,778 | $ | i 7,924 | $ | i 19,740 | $ | i 13,341 | |||||||
Apparel,
Gear and Other | i 3,142 | i 4,289 | i 13,266 | i 8,682 | |||||||||||
$ | i 5,920 | $ | i 12,213 | $ | i 33,006 | $ | i 22,023 |
(1) | 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. The increase in reconciling items for the three and six months ended June 30, 2020 compared to June 30, 2019 was primarily due to the recognition of a $174,269,000 impairment loss related to the Jack Wolfskin trade name and goodwill (see Note 9). This increase was partially offset by the recognition of a net gain of $11,046,000 related to a cash flow hedge that was discontinued during the second quarter of 2020. Reconciling
items also include net gains of $1,622,000 and $ i 9,947,000 recognized on hedging contracts for the three and six months ended June 30, 2020, respectively. These increases were partially
offset by a decrease in non-recurring charges primarily related to the acquisition of Jack Wolfskin in January 2019 (see Note 5). |
(2) | Additions to long-lived assets are comprised of purchases of property, plant and equipment. |
Three
Months Ended June 30, | Decline | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Net sales: | ||||||||||||||
Golf
Equipment | $ | 209.9 | $ | 292.3 | $ | (82.4 | ) | -28.2 | % | |||||
Apparel,
Gear and Other | 87.1 | 154.4 | (67.3 | ) | -43.6 | % | ||||||||
$ | 297.0 | $ | 446.7 | $ | (149.7 | ) | -33.5 | % |
Three
Months Ended June 30, | Decline | Constant Currency Decline vs. 2019 | ||||||||||||||
2020 | 2019 | Dollars | Percent | Percent | ||||||||||||
Net
sales: | ||||||||||||||||
United States | $ | 171.7 | $ | 247.4 | $ | (75.7 | ) | -30.5 | % | -30.5% | ||||||
Europe | 50.1 | 81.6 | (31.5 | ) | -38.6 | % | -37.5% | |||||||||
Japan | 24.6 | 55.7 | (31.1 | ) | -55.8 | % | -56.8% | |||||||||
Rest
of World | 50.6 | 62.0 | (11.4 | ) | -18.4 | % | -15.3% | |||||||||
$ | 297.0 | $ | 446.7 | $ | (149.7 | ) | -33.5 | % | -33.0% |
Three
Months Ended June 30, 2020 | ||||||||||||||||||||
As Reported | Non-Cash Intangible Amortization and Impairment Charges(1) | Non-Cash Amortization of Discount on Convertible Notes(2) | Other Non-Recurring Charges(3) | Non-GAAP | ||||||||||||||||
Net
income (loss) attributable to Callaway Golf Company | $ | (167.7 | ) | $ | (167.3 | ) | $ | (1.2 | ) | $ | (4.5 | ) | $ | 5.3 | ||||||
Diluted
earnings (loss) per share | $ | (1.78 | ) | $ | (1.78 | ) | $ | (0.01 | ) | $ | (0.05 | ) | $ | 0.06 | ||||||
Weighted-average
shares outstanding | 94.1 | 94.1 | 94.1 | 94.1 | 94.1 |
Three
Months Ended June 30, 2019 | ||||||||||||||||
As Reported | Non-Cash Intangible Amortization Expense(1) | Acquisition and Transition Costs(4) | Non-GAAP | |||||||||||||
Net
income (loss) attributable to Callaway Golf Company | $ | 28.9 | $ | (5.0 | ) | $ | (1.2 | ) | $ | 35.1 | ||||||
Diluted
earnings (loss) per share | $ | 0.30 | $ | (0.05 | ) | $ | (0.02 | ) | $ | 0.37 | ||||||
Weighted-average
shares outstanding | 95.9 | 95.9 | 95.9 | 95.9 |
(1) | Includes
the non-cash amortization expense of intangible assets in connection with the acquisitions of Jack Wolfskin, TravisMathew and OGIO. In addition, the three months ended June 30, 2020 includes the recognition of a $174.3 million impairment of the Jack Wolfskin goodwill and trade name, and the three months ended June 30, 2019 includes the amortization of the inventory valuation step-up in connection with the Jack Wolfskin acquisition. |
(2) | Represents the non-cash amortization of the discount on the convertible notes issued in May 2020. |
(3) | Other
non-recurring charges primarily include redundant costs associated with the Company's transition of its North America distribution center to a new facility, severance charges associated with workforce reductions due to the COVID-19 pandemic, and the recognition of a deferred gain from a cash flow hedge that was discontinued in the second quarter of 2020. |
(4) | Represents non-recurring costs associated with the acquisition of Jack Wolfskin completed in January 2019. |
Three Months Ended June 30, | Decline | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Net
sales: | ||||||||||||||
Golf Clubs | $ | 156.0 | $ | 223.7 | $ | (67.7 | ) | -30.3 | % | |||||
Golf
Balls | 53.9 | 68.6 | (14.7 | ) | -21.4 | % | ||||||||
$ | 209.9 | $ | 292.3 | $ | (82.4 | ) | -28.2 | % |
Three
Months Ended June 30, | Decline | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Net sales: | ||||||||||||||
Apparel | $ | 36.3 | $ | 73.2 | $ | (36.9 | ) | -50.4 | % | |||||
Gear,
Accessories, & Other | 50.8 | 81.2 | (30.4 | ) | -37.4 | % | ||||||||
$ | 87.1 | $ | 154.4 | $ | (67.3 | ) | -43.6 | % |
Three
Months Ended June 30, | Decline | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Income before income taxes: | ||||||||||||||
Golf
Equipment | $ | 29.2 | $ | 55.7 | $ | (26.5 | ) | -47.6 | % | |||||
Apparel,
Gear and Other | (11.7 | ) | 11.3 | (23.0 | ) | -203.5 | % | |||||||
Reconciling items(1) | (193.1 | ) | (30.9 | ) | (162.2 | ) | 524.9 | % | ||||||
$ | (175.6 | ) | $ | 36.1 | $ | (211.7 | ) | -586.4 | % |
(1) | Reconciling
items represent corporate general and administrative expenses and other income (expense) not included by management in determining segment profitability. The $162.2 million increase in reconciling items in the second quarter of 2020 compared to the second quarter of 2019 was primarily due to the recognition of a $174.3 million impairment of the Jack Wolfskin goodwill and trade name (see Note 9 "Goodwill and Intangible Assets" to the Notes to Consolidated Condensed Financial Statements included in Part I, Item 1, of this Form 10-Q), partially offset by an $11.0 million gain that was recognized in the second quarter of 2020 related to a discontinued cash flow hedge. |
Six
Months Ended June 30, | Decline | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Net sales: | ||||||||||||||
Golf
Equipment | $ | 501.6 | $ | 616.0 | $ | (114.4 | ) | -18.6 | % | |||||
Apparel,
Gear and Other | 237.7 | 346.9 | (109.2 | ) | -31.5 | % | ||||||||
$ | 739.3 | $ | 962.9 | $ | (223.6 | ) | -23.2 | % |
Six
Months Ended June 30, | Decline | Constant Currency Decline vs. 2019 | ||||||||||||||
2020 | 2019 | Dollars | Percent | Percent | ||||||||||||
Net
sales: | ||||||||||||||||
United States | $ | 389.2 | $ | 496.4 | $ | (107.2 | ) | -21.6 | % | -21.6% | ||||||
Europe | 146.8 | 208.2 | (61.4 | ) | -29.5 | % | -27.8% | |||||||||
Japan | 102.0 | 128.9 | (26.9 | ) | -20.9 | % | -22.0% | |||||||||
Rest
of World | 101.3 | 129.4 | (28.1 | ) | -21.7 | % | -18.6% | |||||||||
$ | 739.3 | $ | 962.9 | $ | (223.6 | ) | -23.2 | % | -22.6% |
Six
Months Ended June 30, 2020 | |||||||||||||||||||
GAAP | Non-Cash Acquisition Amortization and Impairment Charges(1) | Non-Cash Amortization of Discount on Convertible Notes(2) | Other Non-Recurring Charges(3) | Non-GAAP | |||||||||||||||
Net
income (loss) attributable to Callaway Golf Company | ($138.8 | ) | ($168.2 | ) | ($1.2 | ) | $2.8 | $27.8 | |||||||||||
Diluted
earnings (loss) per share | ($1.47 | ) | ($1.78 | ) | ($0.01 | ) | $0.03 | $0.29 | |||||||||||
Weighted-average
shares outstanding | 94.2 | 94.2 | 94.2 | 94.2 | 94.2 |
Six
Months Ended June 30, 2019 | |||||||||||||||
GAAP | Non-Cash Purchase Accounting Adjustments and Acquisition Amortization(1) | Acquisition and Transition Expenses(4) | Non-GAAP | ||||||||||||
Net income (loss) attributable to Callaway Golf
Company | $77.6 | ($10.1 | ) | ($7.9 | ) | $95.6 | |||||||||
Diluted
earnings (loss) per share | $0.81 | ($0.10 | ) | ($0.08 | ) | $0.99 | |||||||||
Weighted-average
shares outstanding | 96.2 | 96.2 | 96.2 | 96.2 |
(1) | Includes
the non-cash amortization expense of intangible assets in connection with the acquisitions of Jack Wolfskin, TravisMathew and OGIO. In addition, the six months ended June 30, 2020 includes the recognition of a $174.3 million impairment of the Jack Wolfskin goodwill and trade name, and the six months ended June 30, 2019 includes the amortization of the inventory valuation step-up in connection with the Jack Wolfskin acquisition. |
(2) | Represents the non-cash amortization of the discount on the convertible notes issued in May 2020. |
(3) | Other
non-recurring charges primarily include redundant costs associated with the Company's transition of its North America distribution center to a new facility, severance charges associated with workforce reductions due to the COVID-19 pandemic, and the recognition of a deferred gain from a cash flow hedge that was discontinued in the second quarter of 2020. |
(4) | Represents non-recurring transaction fees and transition costs associated with the acquisition of Jack Wolfskin completed in January 2019, as well as other non-recurring advisory fees, and a net loss from the remeasurement of a foreign currency forward contract
in connection with the acquisition of Jack Wolfskin. |
Six Months Ended June 30, | Decline | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Net
sales: | ||||||||||||||
Golf Clubs | $ | 407.3 | $ | 485.6 | $ | (78.3 | ) | -16.1 | % | |||||
Golf
Balls | 94.3 | 130.4 | (36.1 | ) | -27.7 | % | ||||||||
$ | 501.6 | $ | 616.0 | $ | (114.4 | ) | -18.6 | % |
Six
Months Ended June 30, | Decline | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Net sales: | ||||||||||||||
Apparel | $ | 113.6 | $ | 169.4 | $ | (55.8 | ) | -32.9 | % | |||||
Gear,
Accessories, & Other | 124.1 | 177.5 | (53.4 | ) | -30.1 | % | ||||||||
$ | 237.7 | $ | 346.9 | $ | (109.2 | ) | -31.5 | % |
Six
Months Ended June 30, | Growth/(Decline) | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Income before income taxes: | ||||||||||||||
Golf
Equipment | $ | 87.8 | $ | 125.7 | $ | (37.9 | ) | -30.2 | % | |||||
Apparel,
Gear and Other | (15.5 | ) | 34.0 | (49.5 | ) | -145.6 | % | |||||||
Reconciling items(1) | (209.9 | ) | (65.5 | ) | (144.4 | ) | 220.5 | % | ||||||
$ | (137.6 | ) | $ | 94.2 | $ | (231.8 | ) | -246.1 | % |
(1) | Reconciling
items represent corporate general and administrative expenses and other income (expense) not included by management in determining segment profitability. The $144.4 million increase in reconciling items in the first half of 2020 compared to the same period in 2019 was primarily due to the recognition of a $174.3 million impairment of the Jack Wolfskin goodwill and trade name (see Note 9 "Goodwill and Intangible Assets to the Notes to Consolidated Condensed Financial Statements included in Part I, Item 1, of this Form 10-Q). This increase was partially offset by a $11.0 million gain that was recognized in the six months ended June 30, 2020 related to a discontinued cash flow hedge, combined with a foreign currency forward loss of $3.9 million
that was recognized in the six months ended June 30, 2019 on a forward contract to mitigate the risk of foreign currency fluctuations on the acquisition of Jack Wolfskin, in addition to $10.7 million of amortization expense recognized in the six months ended June 30, 2019 related to the inventory valuation step-up from the Jack Wolfskin acquisition. |
Payments
Due By Period | |||||||||||||||||||
Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||||||
(in
millions) | |||||||||||||||||||
Term Loan Facility(1) | $ | 444.0 | $ | 2.4 | $ | 9.6 | $ | 9.6 | $ | 422.4 | |||||||||
Interest
on Term Loan Facility | 114.5 | 21.3 | 41.9 | 41.0 | 10.3 | ||||||||||||||
Convertible
Notes(2) | 258.8 | — | — | — | 258.8 | ||||||||||||||
Equipment
Notes(3) | 26.7 | 6.2 | 11.8 | 6.1 | 2.6 | ||||||||||||||
Interest
on Equipment Notes | 1.9 | 0.7 | 0.8 | 0.3 | 0.1 | ||||||||||||||
ABL
Facility | 27.8 | 27.8 | — | — | — | ||||||||||||||
Japan
ABL Facility | 27.8 | 27.8 | — | — | — | ||||||||||||||
Finance
leases, including imputed interest(4) | 1.1 | 0.4 | 0.5 | 0.2 | — | ||||||||||||||
Operating
leases, including imputed interest(5) | 262.8 | 20.4 | 65.4 | 49.4 | 127.6 | ||||||||||||||
Unconditional
purchase obligations(6) | 77.1 | 45.2 | 29.4 | 2.5 | — | ||||||||||||||
Uncertain
tax contingencies(7) | 7.5 | 0.5 | 1.0 | 1.1 | 4.9 | ||||||||||||||
Other
long term liabilities | 7.9 | 0.4 | 0.9 | 0.9 | 5.7 | ||||||||||||||
Total | $ | 1,257.9 | $ | 153.1 | $ | 161.3 | $ | 111.1 | $ | 832.4 |
(1) | In January 2019, to fund the purchase price of the Jack Wolfskin acquisition, the Company entered into a Credit Agreement. |
(2) | which provides for a Term Loan B facility in an aggregate principal of $480.0 million,
which was issued less $9.6 million in original issue discount and other transaction fees. As of June 30, 2020, the Company had $444.0 million outstanding under the Term Loan Facility, which is offset by unamortized debt issuance costs of $14.8 million as presented on the Company's consolidated condensed balance sheet as of June 30, 2020. For further discussion, see Note 6 "Financing Arrangements"
to the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q. |
(3) | In May 2020, the Company issued $258.8 million of 2.75% Convertibles Notes, which mature on May 1, 2026 unless earlier redeemed or repurchased by the Company or converted. As of June 30, 2020, the
Company had $177.8 million outstanding under the Convertible Notes, net of unamortized debt issuance costs of $5.9 million and debt discount of $75.0 million, as presented on the Company's Consolidated Condensed Balance Sheet as of June 30, 2020. For further discussion, see Note 6 "Financing Arrangements" to the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q. |
(4) | In
connection with the Company's investment initiatives to improve its manufacturing capabilities at its golf ball manufacturing facility in Chicopee, Massachusetts, the Company entered into a series of long-term financing agreements (the "Equipment |
(5) | Amounts represent future minimum payments under financing leases. At June 30, 2020, finance lease liabilities of $0.5 million were recorded in accounts payable and accrued expenses and $0.5 million were
recorded in other long-term liabilities in the accompanying consolidated condensed balance sheets. For further discussion, see Note 2 "Leases" to the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q. |
(6) | The Company leases certain manufacturing facilities, distribution centers, warehouses, office facilities, vehicles and office equipment under operating leases. The amounts presented in this line item represent commitments for minimum lease payments under non-cancelable operating leases. At June
30, 2020, short-term and long-term operating lease liabilities of $28.8 million and $172.1 million, respectively, were recorded in the accompanying consolidated condensed balance sheets. For further discussion, see Note 2 "Leases" to the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q. |
(7) | During the normal course of its business, the Company enters into agreements to purchase goods and services, including purchase
commitments for production materials, endorsement agreements with professional golfers and other endorsers, employment and consulting agreements, and intellectual property licensing agreements pursuant to which the Company is required to pay royalty fees. It is not possible to determine the amounts the Company will ultimately be required to pay under these agreements as they are subject to many variables including performance-based bonuses, severance arrangements, the Company’s sales levels, and reductions in payment obligations if designated minimum performance criteria are not achieved. The amounts listed approximate minimum purchase obligations, base compensation, and guaranteed minimum royalty payments the
Company is obligated to pay under these agreements. The actual amounts paid under some of these agreements may be higher or lower than the amounts included. In the aggregate, the actual amount paid under these obligations is likely to be higher than the amounts listed as a result of the variable nature of these obligations. In addition, the Company also enters into unconditional purchase obligations with various vendors and suppliers of goods and services in the normal course of operations through purchase orders or other documentation or that are undocumented except for an invoice. Such unconditional purchase obligations are generally outstanding for periods less than a year and are settled by cash payments upon delivery of goods and services and are not reflected in this line item. |
(8) | Amount
represents the current and non-current portions of uncertain income tax positions as recorded on the Company's consolidated condensed balance sheet as of June 30, 2020. Amounts exclude uncertain income tax positions that the Company would be able to offset against deferred taxes. For further discussion, see Note 13 “Income Taxes” to the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q. |
Three Months Ended June 30, 2020 | |||||||||||||||||||||
Total Number of Shares Purchased | Weighted Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program(1) | Maximum Dollar Value that May Yet Be Purchased Under the Program | ||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||
1 | $ | 9.58 | 1 | $ | 77,379 | ||||||||||||||||
— | $ | — | — | $ | 77,379 | ||||||||||||||||
1 | $ | 15.38 | 1 | $ | 77,369 | ||||||||||||||||
Total | 2 | $ | 12.79 | 2 | $ | 77,369 |
(1) | The
Company has suspended the 2019 Repurchase Program. The Company has the ability to resume purchases if it deems circumstances warrant it. |
3.1 | |||
3.2 | |||
3.3 | |||
3.4 | |||
4.1 | |||
4.2 | |||
10.1 | |||
10.2 | |||
10.3 | |||
10.4 | |||
10.5 | |||
10.6 | |||
10.7 | |||
10.8 | |||
31.1 | |||
31.2 | |||
32.1 | |||
101.1 | XBRL
Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||
101.2 | XBRL Taxonomy Extension Schema Document † | ||
101.3 | XBRL
Taxonomy Extension Calculation Linkbase Document † | ||
101.4 | XBRL Taxonomy Extension Definition Linkbase Document † | ||
101.5 | XBRL
Taxonomy Extension Label Linkbase Document † | ||
101.6 | XBRL Taxonomy Extension Presentation Linkbase Document † | ||
104 | Cover
Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) † |
CALLAWAY GOLF COMPANY | |
By: | /s/ Jennifer Thomas |
Vice President and Chief Accounting Officer |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
5/1/26 | ||||
12/31/20 | 10-K, SD | |||
12/15/20 | ||||
11/1/20 | ||||
9/30/20 | 10-Q, 8-K | |||
Filed on: | 8/7/20 | |||
For Period end: | 6/30/20 | |||
6/1/20 | ||||
5/31/20 | ||||
5/4/20 | 8-K | |||
5/1/20 | DEFA14A | |||
4/30/20 | 8-K | |||
4/29/20 | 8-K | |||
4/1/20 | ||||
3/31/20 | 10-Q | |||
3/2/20 | 10-K | |||
1/1/20 | ||||
12/31/19 | 10-K, SD | |||
7/31/19 | ||||
6/30/19 | 10-Q | |||
5/31/19 | ||||
3/31/19 | 10-Q | |||
1/4/19 | 8-K, 8-K/A | |||
12/31/18 | 10-K, SD | |||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 1/28/21 Topgolf Callaway Brands Corp. 424B3 1:5.5M Donnelley … Solutions/FA 1/27/21 Topgolf Callaway Brands Corp. S-4/A 4:5.4M Donnelley … Solutions/FA 1/26/21 Topgolf Callaway Brands Corp. S-4/A 8:6.3M Donnelley … Solutions/FA 1/05/21 Topgolf Callaway Brands Corp. S-4/A 9:5.5M Donnelley … Solutions/FA 11/24/20 Topgolf Callaway Brands Corp. S-4 4:5.4M Donnelley … Solutions/FA |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 5/15/20 Topgolf Callaway Brands Corp. 8-K:5,9 5/12/20 14:539K Donnelley … Solutions/FA 5/04/20 Topgolf Callaway Brands Corp. 8-K:1,2,3,9 4/29/20 17:2.5M Donnelley … Solutions/FA 4/29/20 Topgolf Callaway Brands Corp. 8-K:1,2,8,9 4/28/20 13:290K Donnelley … Solutions/FA |