Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Information Utilized by Management to Evaluate its Operating Segments

The table below contains information utilized by management to evaluate its operating segments.

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Net sales:
Golf Clubs	$	717,293		$	643,096		$	582,381
Golf Balls	195,654			162,546			152,261
Gear, Accessories and Other	329,887			243,094			136,550
	$	1,242,834		$	1,048,736		$	871,192
Income (loss) before income tax:
Golf Clubs	$	104,177		$	77,018		$	48,489
Golf Balls	27,887			26,854			23,953
Gear, Accessories and Other	56,620			30,631			18,223
Reconciling items(1)	(57,412		)	(66,448		)	(32,272		)
	$	131,272		$	68,055		$	58,393
Identifiable assets:(2)
Golf Clubs	$	343,506		$	321,265		$	276,654
Golf Balls	94,098			57,120			45,758
Gear, Accessories and Other	269,432			236,515			35,788
Reconciling items(3)	345,908			376,257			443,082
	$	1,052,944		$	991,157		$	801,282
Additions to long-lived assets:(3)
Golf Clubs	$	9,176		$	11,396		$	6,163
Golf Balls	18,602			12,178			6,585
Gear, Accessories and Other	9,712			3,790			2,050
	$	37,490		$	27,364		$	14,798
Goodwill:
Golf Clubs	$	26,183		$	26,904		$	25,593
Golf Balls	—			—			—
Gear, Accessories and Other(4)	29,633			29,525			—
	$	55,816		$	56,429		$	25,593
Depreciation and amortization:
Golf Clubs	$	3,239		$	8,769		$	8,509
Golf Balls	7,926			4,496			4,355
Gear, Accessories and Other	8,783			4,340			3,722
	$	19,948		$	17,605		$	16,586

(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. In 2018, reconciling items include $7,261,000 of net foreign currency exchange gains, and $3,661,000 of transaction costs associated with the Jack Wolfskin acquisition that was completed in January 2019. Reconciling items in 2017 include $11,264,000 of transaction and transitional costs associated with the acquisitions of OGIO and TravisMathew in 2017, and net foreign currency exchange losses of $6,880,000. In 2016, reconciling items include a $17,662,000 gain in connection with the sale of approximately 10.0% of the Company's investment in Topgolf (see Note 8) and net foreign currency exchange losses of $2,691,000.

(2) 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 three segments including cash and cash equivalents, net accounts receivable, and deferred tax assets. The $30,349,000 decrease in reconciling items in 2018 compared to 2017 was primarily due to decreases of $21,693,000 in cash and cash equivalents and $16,319,000 in deferred tax assets related to utilization of net operating losses, tax credits, and tax reform regulations released in 2018. The $66,825,000 decrease in reconciling items in 2017 compared to 2016 was primarily due a $40,301,000 decrease in cash and cash equivalents primarily to fund the OGIO and TravisMathew acquisitions in 2017, combined with a $23,535,000 decrease in net deferred tax assets primarily due to the utilization of net operating losses and the reevaluation of deferred tax assets as a result of the Tax Act.

(3) Additions to long-lived assets are comprised of purchases of property, plant and equipment.

(4) The $30,836,000 increase in goodwill in 2017 compared to 2016 was primarily as a result of the acquisitions of OGIO and TravisMathew in 2017.

Net Sales By Product Category

The Company’s net sales by product category are as follows:

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Net sales:
Woods	$	304,459	$	307,865	$	216,094
Irons	316,463		250,636		278,562
Putters	96,371		84,595		87,725
Golf Balls	195,654		162,546		152,261
Accessories and Other	329,887		243,094		136,550
	$	1,242,834	$	1,048,736	$	871,192

Revenues and Long Lived Assets

Long-lived assets are based on location of domicile.

	Sales		Long-Lived Assets(1)
	(In thousands)
2018
United States	$	706,332	$	422,803
Europe	149,602		6,855
Japan	223,707		8,723
Rest of Asia	92,026		4,200
Other foreign countries	71,167		10,378
	$	1,242,834	$	452,959
2017(2)
United States	$	564,648	$	403,493
Europe	140,947		7,681
Japan	199,372		7,635
Rest of Asia	76,530		3,717
Other foreign countries	67,239		11,248
	$	1,048,736	$	433,774
2016
United States	$	447,613	$	199,617
Europe	122,805		7,260
Japan	170,760		6,201
Rest of Asia	67,099		2,668
Other foreign countries	62,915		10,405
	$	871,192	$	226,151

(1) Long-lived assets include all non-current assets of the Company except deferred tax assets.

(2) Prior period amounts have been reclassified to conform to current year presentation of regional sales related to OGIO-branded products.