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Non-Controlling Interests
12 Months Ended
Dec. 31, 2013
Noncontrolling Interest [Abstract]  
Non-Controlling Interests
Non-Controlling Interests
Through June 30, 2013, the Company had a Golf Ball Manufacturing and Supply Agreement with Qingdao Suntech Sporting Goods Limited Company (“Suntech”), in which Suntech manufactured and supplied certain golf balls solely for and to the Company. In connection with the agreement, the Company provided Suntech with golf ball raw materials, packing materials, molds, tooling, as well as manufacturing equipment in order to carry out the manufacturing and supply obligations set forth in the agreement. Suntech provided the personnel as well as the facilities to effectively perform these manufacturing and supply obligations.
In July 2013, the Company terminated the Golf Ball Manufacturing and Supply Agreement and certain ancillary agreements with Suntech. As a result, during the year ended December 31, 2013, the Company recognized charges of $5,579,000, the majority of which was related to the write-off of certain manufacturing equipment and inventory located at the Suntech manufacturing facility, and was recognized in cost of sales within the Company's golf balls operating segment.
Due to the nature of the arrangement, as well as the controlling influence the Company had in the Suntech operations through July 2013, the Company was required to consolidate the financial results of Suntech in its consolidated financial statements in accordance with ASC Topic 810, “Consolidations.” For the years ended December 31, 2012 and 2011, non-controlling interest related to Suntech in the consolidated statements of shareholders’ equity included net profits of $259,000 and $587,000, respectively. The Company deconsolidated the financial results of Suntech in 2013 as a result of its termination of the Golf Ball Manufacturing Supply Agreement.
Suntech is a wholly-owned subsidiary of Suntech Mauritius Limited Company (“Mauritius”). The Company had a loan agreement with Mauritius in order to provide working capital for Suntech, under which the Company loaned Mauritius a total of $3,200,000. At December 31, 2012, $1,788,000 of the loan balance remained outstanding in other long-term assets in the accompanying consolidated balance sheet. During the fourth quarter of 2013, the Company reached an agreement in principle which allowed the Company to offset the remaining loan balance with outstanding accounts payable. In January 2014, Company finalized an Agreement Regarding Settlement and Mutual Release resulting in a net charge of $65,000 as of December 31, 2013.