XML 32 R14.htm IDEA: XBRL DOCUMENT v3.6.0.2
Joint Venture
12 Months Ended
Dec. 31, 2016
Noncontrolling Interest [Abstract]  
Joint Venture
Note 7. Joint Venture
Effective July 1, 2016, the Company completed the previously announced joint venture with its long-time apparel licensee, TSI Groove & Sports Co, Ltd., ("TSI"), a premier apparel manufacturer in Japan. The new venture is named Callaway Apparel K.K. and includes the design, manufacture and distribution of Callaway-branded apparel, footwear and headwear in Japan. The Company contributed $10,556,000, primarily in cash, for a 52% ownership of the joint venture, and TSI contributed $9,744,000, primarily in inventory, for the remaining 48%. The Company has a majority voting percentage on matters pertaining to the business operations and significant management decisions of the joint venture, and as such, the Company is required to consolidate the financial results of the joint venture with the financial results of the Company. The joint venture was consolidated one month in arrears.
As a result of the consolidation, during the year ended December 31, 2016, the Company recorded net income attributable to the non-controlling interest of $1,054,000 in its consolidated statement of operations. At December 31, 2016, the Company recognized a non-controlling interest of $9,694,000 in its consolidated balance sheet and consolidated statement of shareholders' equity.