Segment Information (Tables)

6 Months Ended

Jun. 30, 2012

Operating Segments

The table below contains information utilized by management to evaluate its operating segments for the interim periods presented (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Net sales
Golf clubs	$	231,285		$	219,081		$	473,837		$	460,067
Golf balls		49,838			54,733			92,384			99,346
	$	281,123		$	273,814		$	566,221		$	559,413
Income (loss) before provision for income taxes
Golf clubs(1)(2)	$	17,953		$	12,308		$	50,595		$	41,613
Golf balls(1)(2)		4,162			1,085			5,739			3,385
Reconciling items(3)		(17,120	)		(26,976	)		(19,829	)		(36,983	)
	$	4,995		$	(13,583	)	$	36,505		$	8,015
Additions to long-lived assets
Golf clubs	$	5,208		$	6,126		$	12,715		$	11,224
Golf balls		56			1,321			239			3,421
	$	5,264		$	7,447		$	12,954		$	14,645

(1) Certain prior period amounts were reclassified to conform with the current year presentation.

(2) The Company’s golf clubs and golf balls operating segments absorbed the following pre-tax charges:

• $1,667,000 and $324,000, respectively, in connection with the Company’s Cost Reduction Initiatives during the three months ended June 30, 2012;

• $1,686,000 and $333,000, respectively, in connection with the Company’s Cost Reduction Initiatives during the six months ended June 30, 2012;

• $3,816,000 and $2,031,000, respectively, in connection with the final phase of the Company’s GOS Initiatives during the three months ended June 30, 2011; and

• $8,356,000 and $3,793,000, respectively, in connection with the final phase of the Company’s GOS Initiatives during the six months ended June 30, 2011.

(3) Reconciling items represent corporate general and administrative expenses and other income (expense) not included by management in determining segment profitability. The reconciling items include the following pre-tax items;

• Pre-tax charges of $2,652,000 in connection with the Cost Reduction Initiatives in both the three and six months ended June 30, 2012;

• A pre-tax gain of $6,602,000 in connection with the sale of the Top-Flite and Ben Hogan brands during the six months ended June 30, 2012;

• Pre-tax charges of $5,162,000 in connection with the Company’s Reorganization and Reinvestment Initiatives in both the three and six months ended June 30, 2011;

• A pre-tax impairment charge of $5,413,000 in connection with certain trademarks and trade names in both the three and six months ended June 30, 2011; and

• A pre-tax gain of $6,170,000 in connection with the sale of certain buildings during the six months ended June 30, 2011.