Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

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,
	2019			2018			2017
	(In thousands)
Net sales:
Golf Equipment	$	979,173		$	912,947		$	805,642
Apparel, Gear and Other	721,890			329,887			243,094
	$	1,701,063		$	1,242,834		$	1,048,736
Income (loss) before income tax:
Golf Equipment	$	140,316		$	128,619		$	103,872
Apparel, Gear and Other	75,490			54,879			30,631
Reconciling items⁽¹⁾	(120,037		)	(52,226		)	(66,448		)
	$	95,769		$	131,272		$	68,055
Identifiable assets:⁽²⁾
Golf Equipment	$	508,463		$	437,604		$	378,385
Apparel, Gear and Other	939,463			269,432			236,515
Reconciling items⁽³⁾	512,622			345,908			376,257
	$	1,960,548		$	1,052,944		$	991,157
Additions to long-lived assets:⁽³⁾
Golf Equipment	$	29,167		$	27,778		$	23,574
Apparel, Gear and Other	25,386			9,712			3,790
	$	54,553		$	37,490		$	27,364
Goodwill:
Golf Equipment	$	26,329		$	26,183		$	26,904
Apparel, Gear and Other	177,414			29,633			29,525
	$	203,743		$	55,816		$	56,429
Depreciation and amortization:
Golf Equipment	$	16,847		$	11,165		$	13,265
Apparel, Gear and Other	18,104			8,783			4,340
	$	34,951		$	19,948		$	17,605

(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 in 2019 compared to 2018 includes incremental corporate general and administrative expenses associated with the addition of the Jack Wolfskin business in January 2019, in addition to $34,084,000 in non-recurring transition costs associated with the acquisition of Jack Wolfskin combined with amortization charges of intangible assets related to the Company's OGIO and TravisMathew acquisitions as well as the amortization of intangible assets and the cost impact associated with a change in valuation of inventory (inventory step-up) related to the Company's Jack Wolfskin acquisition. Reconciling items in 2019 also include incremental interest expense of $31,707,000 related to the Term Loan Facility used for the Jack Wolfskin acquisition, as well as $3,896,000 of net foreign currency exchange losses associated with the Jack Wolfskin acquisition. 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.

(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 two segments including cash and cash equivalents, net accounts receivable, and deferred tax assets. The $166,714,000 increase in reconciling items in 2019 compared to 2018 was primarily due to increases of $42,685,000 in cash and cash equivalents, $69,081,000 in net accounts receivable and a $17,897,000 increase related to the additional investment in Topgolf in the fourth quarter of 2019. 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. Reconciling items in 2017 were primarily comprised of a $40,301,000 decrease in cash and cash equivalents compared to 2016 primarily to fund the OGIO and TravisMathew acquisitions in 2017, combined with a $23,535,000 decrease in net deferred tax assets compared to 2016 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 $147,927,000 increase in goodwill in 2019 compared to 2018 was primarily as a result of the acquisition

Net Sales By Product Category

Revenues and Long Lived Assets

Long-lived assets are based on location of domicile.



	Sales		Long-Lived Assets⁽¹⁾
	(In thousands)
2019⁽²⁾
United States	$	788,232	$	466,957
Europe	428,628		444,468
Japan	246,260		10,347
Rest of World	237,943		15,380
	$	1,701,063	$	937,152
2018⁽²⁾
United States	$	708,467	$	422,803
Europe	149,602		6,855
Japan	223,707		8,723
Rest of World	161,058		14,578
	$	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 World	143,769		14,965
	$	1,048,736	$	433,774


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

(2)