10-Q 1 ely-20210930.htm 10-Q ely-20210930
FALSE2021Q30000837465December 31P3Yus-gaap:OtherAssetsNoncurrentus-gaap:OtherAssetsNoncurrentus-gaap:AccountsPayableAndAccruedLiabilitiesCurrentus-gaap:AccountsPayableAndAccruedLiabilitiesCurrentus-gaap:OtherLiabilitiesNoncurrentus-gaap:OtherLiabilitiesNoncurrentP1YP10D0.0567698P1YP1YP1YP3Y00008374652021-01-012021-09-30xbrli:shares00008374652021-09-30iso4217:USD00008374652020-12-310000837465ely:DeemedLandlordFinanceLeaseMember2021-09-300000837465ely:DeemedLandlordFinanceLeaseMember2020-12-31iso4217:USDxbrli:shares0000837465us-gaap:ProductMember2021-07-012021-09-300000837465us-gaap:ProductMember2020-07-012020-09-300000837465us-gaap:ProductMember2021-01-012021-09-300000837465us-gaap:ProductMember2020-01-012020-09-300000837465us-gaap:ServiceMember2021-07-012021-09-300000837465us-gaap:ServiceMember2020-07-012020-09-300000837465us-gaap:ServiceMember2021-01-012021-09-300000837465us-gaap:ServiceMember2020-01-012020-09-3000008374652021-07-012021-09-3000008374652020-07-012020-09-3000008374652020-01-012020-09-3000008374652019-12-3100008374652020-09-300000837465us-gaap:CommonStockMember2021-06-300000837465us-gaap:AdditionalPaidInCapitalMember2021-06-300000837465us-gaap:RetainedEarningsMember2021-06-300000837465us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000837465us-gaap:TreasuryStockMember2021-06-3000008374652021-06-300000837465us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300000837465us-gaap:TreasuryStockMember2021-07-012021-09-300000837465us-gaap:CommonStockMember2021-07-012021-09-300000837465us-gaap:RetainedEarningsMember2021-07-012021-09-300000837465us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000837465us-gaap:CommonStockMember2021-09-300000837465us-gaap:AdditionalPaidInCapitalMember2021-09-300000837465us-gaap:RetainedEarningsMember2021-09-300000837465us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300000837465us-gaap:TreasuryStockMember2021-09-300000837465us-gaap:CommonStockMember2020-12-310000837465us-gaap:AdditionalPaidInCapitalMember2020-12-310000837465us-gaap:RetainedEarningsMember2020-12-310000837465us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000837465us-gaap:TreasuryStockMember2020-12-310000837465us-gaap:CommonStockMember2021-01-012021-09-300000837465us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300000837465us-gaap:AdditionalPaidInCapitalMemberus-gaap:RestrictedStockMember2021-01-012021-09-300000837465us-gaap:RestrictedStockMember2021-01-012021-09-300000837465us-gaap:CommonStockMemberely:OptionsAndRestrictedStockMember2021-01-012021-09-300000837465us-gaap:AdditionalPaidInCapitalMemberely:OptionsAndRestrictedStockMember2021-01-012021-09-300000837465ely:OptionsAndRestrictedStockMember2021-01-012021-09-300000837465us-gaap:TreasuryStockMember2021-01-012021-09-300000837465us-gaap:RetainedEarningsMember2021-01-012021-09-300000837465us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300000837465us-gaap:CommonStockMember2020-06-300000837465us-gaap:AdditionalPaidInCapitalMember2020-06-300000837465us-gaap:RetainedEarningsMember2020-06-300000837465us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300000837465us-gaap:TreasuryStockMember2020-06-3000008374652020-06-300000837465us-gaap:TreasuryStockMember2020-07-012020-09-300000837465us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300000837465us-gaap:RetainedEarningsMember2020-07-012020-09-300000837465us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300000837465us-gaap:CommonStockMember2020-09-300000837465us-gaap:AdditionalPaidInCapitalMember2020-09-300000837465us-gaap:RetainedEarningsMember2020-09-300000837465us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300000837465us-gaap:TreasuryStockMember2020-09-300000837465us-gaap:CommonStockMember2019-12-310000837465us-gaap:AdditionalPaidInCapitalMember2019-12-310000837465us-gaap:RetainedEarningsMember2019-12-310000837465us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000837465us-gaap:TreasuryStockMember2019-12-310000837465us-gaap:RetainedEarningsMemberus-gaap:AccountingStandardsUpdate201613Member2019-12-310000837465us-gaap:AccountingStandardsUpdate201613Member2019-12-310000837465us-gaap:TreasuryStockMember2020-01-012020-09-300000837465us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300000837465us-gaap:RetainedEarningsMember2020-01-012020-09-300000837465us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-30ely:segment0000837465ely:SoftwareAndHardwareMembersrt:MinimumMember2021-09-300000837465ely:SoftwareAndHardwareMembersrt:MaximumMember2021-09-300000837465srt:MinimumMember2021-01-012021-09-300000837465srt:MaximumMember2021-01-012021-09-300000837465us-gaap:BuildingAndBuildingImprovementsMembersrt:MinimumMember2021-01-012021-09-300000837465srt:MaximumMemberus-gaap:BuildingAndBuildingImprovementsMember2021-01-012021-09-300000837465us-gaap:MachineryAndEquipmentMembersrt:MinimumMember2021-01-012021-09-300000837465srt:MaximumMemberus-gaap:MachineryAndEquipmentMember2021-01-012021-09-300000837465us-gaap:FurnitureAndFixturesMembersrt:MinimumMember2021-01-012021-09-300000837465srt:MaximumMemberus-gaap:FurnitureAndFixturesMember2021-01-012021-09-300000837465us-gaap:SoftwareDevelopmentMembersrt:MinimumMember2021-01-012021-09-300000837465us-gaap:SoftwareDevelopmentMembersrt:MaximumMember2021-01-012021-09-300000837465ely:ProductionMoldsMembersrt:MinimumMember2021-01-012021-09-300000837465srt:MaximumMemberely:ProductionMoldsMember2021-01-012021-09-300000837465ely:CapitalizedBuildingsMember2021-01-012021-09-300000837465ely:COVID19Member2020-09-300000837465ely:COVID19Member2020-07-012020-09-300000837465ely:COVID19Member2020-01-012020-09-300000837465ely:COVID19Member2021-09-300000837465ely:COVID19Memberus-gaap:AccruedLiabilitiesMember2021-09-300000837465ely:COVID19Memberus-gaap:OtherNoncurrentLiabilitiesMember2021-09-300000837465ely:COVID19Member2021-07-012021-09-300000837465ely:COVID19Member2021-01-012021-09-30xbrli:pureely:lease0000837465ely:LeaseCommencing2021Member2021-09-300000837465ely:DeemedLandlordFinanceLeaseMember2021-01-012021-09-30ely:landlord_building0000837465ely:DeemedLandlordFinanceLeaseMember2021-07-012021-09-300000837465ely:TopgolfSegmentMember2021-07-012021-09-300000837465ely:TopgolfSegmentMember2021-01-012021-09-300000837465ely:TopgolfSegmentMemberely:VenuesMember2021-07-012021-09-300000837465ely:VenuesMember2021-07-012021-09-300000837465us-gaap:ProductAndServiceOtherMemberely:TopgolfSegmentMember2021-07-012021-09-300000837465us-gaap:ProductAndServiceOtherMember2021-07-012021-09-300000837465ely:GolfEquipmentMemberely:GolfClubsMember2021-07-012021-09-300000837465ely:GolfClubsMember2021-07-012021-09-300000837465ely:GolfEquipmentMemberely:GolfClubsMember2020-07-012020-09-300000837465ely:GolfClubsMember2020-07-012020-09-300000837465ely:GolfEquipmentMemberely:GolfBallsMember2021-07-012021-09-300000837465ely:GolfBallsMember2021-07-012021-09-300000837465ely:GolfEquipmentMemberely:GolfBallsMember2020-07-012020-09-300000837465ely:GolfBallsMember2020-07-012020-09-300000837465ely:ApparelGearandOtherMemberely:ApparelMember2021-07-012021-09-300000837465ely:ApparelMember2021-07-012021-09-300000837465ely:ApparelGearandOtherMemberely:ApparelMember2020-07-012020-09-300000837465ely:ApparelMember2020-07-012020-09-300000837465ely:ApparelGearandOtherMemberely:GearAccessoriesandOtherMember2021-07-012021-09-300000837465ely:GearAccessoriesandOtherMember2021-07-012021-09-300000837465ely:ApparelGearandOtherMemberely:GearAccessoriesandOtherMember2020-07-012020-09-300000837465ely:GearAccessoriesandOtherMember2020-07-012020-09-300000837465ely:GolfEquipmentMember2021-07-012021-09-300000837465ely:ApparelGearandOtherMember2021-07-012021-09-300000837465ely:GolfEquipmentMember2020-07-012020-09-300000837465ely:ApparelGearandOtherMember2020-07-012020-09-300000837465ely:TopgolfSegmentMemberely:VenuesMember2021-01-012021-09-300000837465ely:VenuesMember2021-01-012021-09-300000837465us-gaap:ProductAndServiceOtherMemberely:TopgolfSegmentMember2021-01-012021-09-300000837465us-gaap:ProductAndServiceOtherMember2021-01-012021-09-300000837465ely:GolfEquipmentMemberely:GolfClubsMember2021-01-012021-09-300000837465ely:GolfClubsMember2021-01-012021-09-300000837465ely:GolfEquipmentMemberely:GolfClubsMember2020-01-012020-09-300000837465ely:GolfClubsMember2020-01-012020-09-300000837465ely:GolfEquipmentMemberely:GolfBallsMember2021-01-012021-09-300000837465ely:GolfBallsMember2021-01-012021-09-300000837465ely:GolfEquipmentMemberely:GolfBallsMember2020-01-012020-09-300000837465ely:GolfBallsMember2020-01-012020-09-300000837465ely:ApparelGearandOtherMemberely:ApparelMember2021-01-012021-09-300000837465ely:ApparelMember2021-01-012021-09-300000837465ely:ApparelGearandOtherMemberely:ApparelMember2020-01-012020-09-300000837465ely:ApparelMember2020-01-012020-09-300000837465ely:ApparelGearandOtherMemberely:GearAccessoriesandOtherMember2021-01-012021-09-300000837465ely:GearAccessoriesandOtherMember2021-01-012021-09-300000837465ely:ApparelGearandOtherMemberely:GearAccessoriesandOtherMember2020-01-012020-09-300000837465ely:GearAccessoriesandOtherMember2020-01-012020-09-300000837465ely:GolfEquipmentMember2021-01-012021-09-300000837465ely:ApparelGearandOtherMember2021-01-012021-09-300000837465ely:GolfEquipmentMember2020-01-012020-09-300000837465ely:ApparelGearandOtherMember2020-01-012020-09-300000837465us-gaap:ProductMemberely:TopgolfSegmentMember2021-07-012021-09-300000837465us-gaap:ProductMemberely:TopgolfSegmentMember2021-01-012021-09-300000837465ely:RedeemedGiftCardsAndGiftCardBreakageMember2021-07-012021-09-300000837465ely:RedeemedGiftCardsAndGiftCardBreakageMember2021-01-012021-09-300000837465ely:RedeemedGiftCardsAndGiftCardBreakageMember2020-07-012020-09-300000837465ely:RedeemedGiftCardsAndGiftCardBreakageMember2020-01-012020-09-300000837465country:US2021-07-012021-09-300000837465country:US2020-07-012020-09-300000837465country:US2021-01-012021-09-300000837465country:US2020-01-012020-09-300000837465srt:EuropeMember2021-07-012021-09-300000837465srt:EuropeMember2020-07-012020-09-300000837465srt:EuropeMember2021-01-012021-09-300000837465srt:EuropeMember2020-01-012020-09-300000837465country:JP2021-07-012021-09-300000837465country:JP2020-07-012020-09-300000837465country:JP2021-01-012021-09-300000837465country:JP2020-01-012020-09-300000837465ely:RestofWorldMember2021-07-012021-09-300000837465ely:RestofWorldMember2020-07-012020-09-300000837465ely:RestofWorldMember2021-01-012021-09-300000837465ely:RestofWorldMember2020-01-012020-09-300000837465srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-06-300000837465srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-06-300000837465srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310000837465srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310000837465ely:TopgolfInternationalIncMember2021-03-082021-03-080000837465ely:TopgolfInternationalIncMember2021-03-080000837465ely:TopgolfInternationalIncMemberely:TopgolfInternationalIncMember2020-10-270000837465ely:TopgolfInternationalIncMemberely:CallawayShareholdersMember2020-10-270000837465ely:TopgolfInternationalIncMemberely:FormerTopgolfStakeholdersMember2020-10-270000837465ely:TopgolfInternationalIncMemberely:RoyaltySavingsIncomeApproachMethodMemberely:MeasurementInputRoyaltyRateMember2021-03-080000837465ely:TopgolfInternationalIncMemberus-gaap:MeasurementInputDiscountRateMemberely:RoyaltySavingsIncomeApproachMethodMembersrt:MinimumMember2021-03-080000837465ely:TopgolfInternationalIncMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMemberely:RoyaltySavingsIncomeApproachMethodMember2021-03-080000837465ely:DevelopedTechnologyAndCustomerRelationshipsMembersrt:MinimumMember2021-03-082021-03-080000837465srt:MaximumMemberely:DevelopedTechnologyAndCustomerRelationshipsMember2021-03-082021-03-080000837465ely:TopgolfInternationalIncMemberely:FutureRevenuesAndGrowthMember2021-03-080000837465ely:TopgolfInternationalIncMemberely:SynergiesMember2021-03-080000837465ely:TopgolfInternationalIncMember2021-01-012021-09-300000837465ely:TopgolfInternationalIncMember2021-07-012021-09-300000837465ely:TopgolfInternationalIncMember2020-01-012020-09-300000837465ely:TopgolfInternationalIncMember2020-07-012020-09-300000837465ely:TopgolfSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300000837465ely:TopgolfSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300000837465ely:USAssetBasedRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-09-300000837465ely:USAssetBasedRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2020-12-310000837465us-gaap:RevolvingCreditFacilityMemberely:JapanABLFacilityMemberus-gaap:LineOfCreditMember2021-09-300000837465us-gaap:RevolvingCreditFacilityMemberely:JapanABLFacilityMemberus-gaap:LineOfCreditMember2020-12-310000837465us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2021-09-300000837465us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-12-310000837465us-gaap:OtherNoncurrentAssetsMember2021-09-300000837465us-gaap:OtherNoncurrentAssetsMember2020-12-310000837465us-gaap:AssetBackedSecuritiesMember2021-09-300000837465us-gaap:AssetBackedSecuritiesMember2020-12-310000837465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberely:JapanTermLoanFacilityMember2021-09-300000837465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberely:JapanTermLoanFacilityMember2020-12-310000837465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberely:TermLoanBFacilityMember2021-09-300000837465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberely:TermLoanBFacilityMember2020-12-310000837465ely:TopgolfTermLoanMemberus-gaap:SecuredDebtMember2021-09-300000837465ely:TopgolfTermLoanMemberus-gaap:SecuredDebtMember2020-12-310000837465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberely:TopgolfRevolvingCreditFacilityMember2021-09-300000837465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberely:TopgolfRevolvingCreditFacilityMember2020-12-310000837465us-gaap:SeniorNotesMemberely:ConvertibleSeniorNotesMember2021-09-300000837465us-gaap:SeniorNotesMemberely:ConvertibleSeniorNotesMember2020-12-310000837465us-gaap:NotesPayableOtherPayablesMembersrt:MinimumMember2021-09-300000837465srt:MaximumMemberus-gaap:NotesPayableOtherPayablesMember2021-09-300000837465us-gaap:NotesPayableOtherPayablesMember2021-09-300000837465us-gaap:NotesPayableOtherPayablesMember2020-12-310000837465us-gaap:MortgagesMembersrt:MinimumMember2021-09-300000837465srt:MaximumMemberus-gaap:MortgagesMember2021-09-300000837465us-gaap:MortgagesMember2021-09-300000837465us-gaap:MortgagesMember2020-12-310000837465ely:TenantImprovementsMember2021-09-300000837465ely:TenantImprovementsMember2020-12-310000837465ely:LongTermUnamortizedDebtIssuanceCostsMember2021-09-300000837465us-gaap:OtherCurrentLiabilitiesMember2021-09-300000837465us-gaap:OtherCurrentLiabilitiesMember2020-12-310000837465us-gaap:AccruedLiabilitiesMember2021-09-300000837465us-gaap:AccruedLiabilitiesMember2020-12-310000837465us-gaap:LongTermDebtMember2021-09-300000837465us-gaap:LongTermDebtMember2020-12-310000837465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberely:USAndJapanCreditFacilitiesMember2021-09-300000837465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberely:USAndJapanCreditFacilitiesMember2020-09-3000008374652019-05-310000837465country:US2019-05-310000837465country:DE2019-05-310000837465country:CA2019-05-310000837465country:GB2019-05-310000837465us-gaap:RealEstateMember2019-05-012019-05-310000837465us-gaap:IntellectualPropertyMember2019-05-012019-05-310000837465ely:CARESActMember2020-04-300000837465ely:BankofAmericaN.A.Member2021-01-012021-09-300000837465ely:BankofAmericaN.A.Member2021-09-30iso4217:JPY0000837465ely:TheBankOfTokyoMitsubishiUFJMemberely:JapanCreditFacility1Member2021-09-300000837465ely:TheBankOfTokyoMitsubishiUFJMemberely:JapanCreditFacility1Member2021-01-012021-09-300000837465ely:TheBankOfTokyoMitsubishiUFJMemberely:TokyoInterbankOfferedRateTIBORMemberely:JapanCreditFacility1Member2021-01-012021-09-300000837465ely:JapanTermLoanFacilityMember2020-08-012020-08-310000837465us-gaap:SecuredDebtMemberely:JapanTermLoanFacilityMember2020-08-310000837465ely:JapanTermLoanFacilityMember2021-09-300000837465ely:JapanTermLoanFacilityMember2021-07-012021-09-300000837465ely:JapanTermLoanFacilityMember2021-01-012021-09-300000837465ely:TokyoInterbankOfferedRateTIBORMemberus-gaap:SecuredDebtMemberely:JapanTermLoanFacilityMember2021-01-012021-09-300000837465us-gaap:SecuredDebtMemberely:JapanTermLoanFacilityMember2021-01-012021-09-300000837465ely:FormerTopgolfStakeholdersMemberus-gaap:SecuredDebtMemberely:TermLoanBFacilityMember2019-01-310000837465us-gaap:SecuredDebtMemberely:TermLoanBFacilityMember2019-01-310000837465us-gaap:SecuredDebtMemberely:TermLoanBFacilityMember2019-01-012019-01-310000837465ely:TermLoanBFacilityMember2021-07-012021-09-300000837465ely:TermLoanBFacilityMember2020-07-012020-09-300000837465ely:TermLoanBFacilityMember2021-01-012021-09-300000837465ely:TermLoanBFacilityMember2020-01-012020-09-300000837465srt:MaximumMemberus-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMemberely:TermLoanBFacilityMember2021-01-012021-09-300000837465us-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMemberely:TermLoanBFacilityMembersrt:MinimumMember2021-01-012021-09-300000837465us-gaap:SecuredDebtMemberely:TermLoanBFacilityMember2021-01-012021-09-300000837465ely:TopgolfTermLoanMemberus-gaap:SecuredDebtMember2021-03-080000837465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2021-03-080000837465ely:TopgolfTermLoanMemberus-gaap:SecuredDebtMemberus-gaap:FederalFundsEffectiveSwapRateMember2021-03-082021-03-080000837465ely:TopgolfTermLoanMemberely:LondonInterbankOfferedRateLIBORAdjustedOneMonthRateMemberus-gaap:SecuredDebtMember2021-03-082021-03-080000837465ely:TopgolfTermLoanMemberus-gaap:SecuredDebtMember2021-03-082021-03-080000837465ely:TopgolfTermLoanMemberely:LondonInterbankOfferedRateLIBORAdjustedRateMemberus-gaap:SecuredDebtMember2021-03-082021-03-080000837465ely:TopgolfTermLoanMemberus-gaap:BaseRateMemberus-gaap:SecuredDebtMember2021-03-082021-03-080000837465ely:TopgolfTermLoanMemberus-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-03-082021-03-080000837465us-gaap:LineOfCreditMemberely:JPMRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:FederalFundsEffectiveSwapRateMember2021-03-082021-03-080000837465ely:LondonInterbankOfferedRateLIBORAdjustedOneMonthRateMemberus-gaap:LineOfCreditMemberely:JPMRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-03-082021-03-080000837465us-gaap:LineOfCreditMemberely:JPMRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-03-082021-03-080000837465ely:LondonInterbankOfferedRateLIBORAdjustedRateMemberus-gaap:LineOfCreditMemberely:JPMRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-03-082021-03-080000837465us-gaap:BaseRateMemberus-gaap:LineOfCreditMemberely:JPMRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-03-082021-03-080000837465us-gaap:LineOfCreditMemberely:JPMRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-03-082021-03-08ely:stepdown0000837465us-gaap:LineOfCreditMemberely:JPMRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-09-300000837465us-gaap:LineOfCreditMemberely:JPMRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-09-300000837465ely:JPMRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-03-080000837465us-gaap:SeniorNotesMemberely:ConvertibleSeniorNotesMember2020-05-310000837465ely:ConvertibleSeniorNotesLiabilityComponentMember2021-09-300000837465ely:ConvertibleSeniorNotesEquityComponentMember2021-09-300000837465ely:ConvertibleSeniorNotesMember2021-01-012021-09-300000837465us-gaap:SeniorNotesMemberely:ConvertibleSeniorNotesLiabilityComponentMember2021-09-300000837465ely:ConvertibleSeniorNotesEquityComponentMemberus-gaap:SeniorNotesMember2021-09-30ely:day0000837465us-gaap:SeniorNotesMemberely:ConvertibleSeniorNotesMember2020-05-012020-05-310000837465ely:ConvertibleSeniorNotesMember2020-05-012020-05-310000837465ely:ConvertibleSeniorNotesMember2020-05-310000837465ely:ConvertibleSeniorNotesMember2021-09-30ely:agreement00008374652020-08-31ely:loan0000837465us-gaap:MortgagesMember2021-03-08ely:venue00008374652021-03-080000837465us-gaap:SeniorNotesMemberely:ConvertibleSeniorNotesMember2020-05-042020-05-040000837465us-gaap:CommonStockMember2021-03-082021-03-080000837465us-gaap:CommonStockMemberely:OptionsAndRestrictedStockMember2021-03-082021-03-080000837465us-gaap:ConvertibleDebtSecuritiesMemberely:ConvertibleSeniorNotesMember2021-07-012021-09-300000837465us-gaap:ConvertibleDebtSecuritiesMemberely:ConvertibleSeniorNotesMember2021-01-012021-09-300000837465ely:OptionsRestrictedStockUnitsAndPerformanceShareUnitsMember2021-07-012021-09-300000837465ely:OptionsRestrictedStockUnitsAndPerformanceShareUnitsMember2020-01-012020-09-300000837465ely:TopgolfSegmentMember2020-12-310000837465ely:GolfEquipmentMember2020-12-310000837465ely:ApparelGearandOtherMember2020-12-310000837465ely:TopgolfSegmentMember2021-09-300000837465ely:GolfEquipmentMember2021-09-300000837465ely:ApparelGearandOtherMember2021-09-300000837465ely:TopgolfInternationalIncMember2021-03-012021-03-310000837465ely:TradenamesTrademarkTradeDressAndOtherMember2021-09-300000837465ely:TradenamesTrademarkTradeDressAndOtherMember2021-01-012021-09-300000837465ely:LiquorLicensesMember2021-09-300000837465ely:LiquorLicensesMember2021-01-012021-09-300000837465us-gaap:PatentsMembersrt:MinimumMember2021-01-012021-09-300000837465srt:MaximumMemberus-gaap:PatentsMember2021-01-012021-09-300000837465us-gaap:PatentsMember2021-09-300000837465us-gaap:PatentsMember2021-01-012021-09-300000837465us-gaap:OtherIntangibleAssetsMembersrt:MinimumMember2021-01-012021-09-300000837465srt:MaximumMemberus-gaap:OtherIntangibleAssetsMember2021-01-012021-09-300000837465us-gaap:OtherIntangibleAssetsMember2021-09-300000837465us-gaap:OtherIntangibleAssetsMember2021-01-012021-09-300000837465us-gaap:DevelopedTechnologyRightsMember2021-01-012021-09-300000837465us-gaap:DevelopedTechnologyRightsMember2021-09-300000837465ely:TradenamesTrademarkTradeDressAndOtherMember2020-12-310000837465us-gaap:PatentsMembersrt:MinimumMember2021-01-012021-06-300000837465srt:MaximumMemberus-gaap:PatentsMember2021-01-012021-06-300000837465us-gaap:PatentsMember2020-12-310000837465us-gaap:OtherIntangibleAssetsMembersrt:MinimumMember2021-01-012021-06-300000837465srt:MaximumMemberus-gaap:OtherIntangibleAssetsMember2021-01-012021-06-300000837465us-gaap:OtherIntangibleAssetsMember2020-12-310000837465ely:TopgolfInternationalIncMember2021-01-012021-03-310000837465ely:TopgolfInternationalIncMember2020-12-310000837465ely:FullSwingGolfHoldingsIncMemberely:TopgolfInternationalIncMember2021-09-300000837465ely:FullSwingGolfHoldingsIncMember2021-07-012021-09-300000837465ely:FullSwingGolfHoldingsIncMemberely:CallawayGolfCoMember2021-09-300000837465ely:TopgolfInternationalIncMember2021-03-3100008374652019-01-012019-01-310000837465ely:JackWolfskinMember2019-01-3100008374652019-01-310000837465us-gaap:FiniteLivedIntangibleAssetsMemberely:JackWolfskinMember2019-01-012019-01-310000837465ely:TaxCreditAndOperatingLossCarryforwardMember2021-03-08ely:plan0000837465ely:ReplacementAwardsMember2021-03-082021-03-080000837465srt:MinimumMember2021-03-082021-03-080000837465srt:MaximumMember2021-03-082021-03-0800008374652021-03-082021-03-080000837465ely:ReplacementAwardsMember2021-07-012021-09-300000837465ely:ReplacementAwardsMember2021-01-012021-09-300000837465us-gaap:EmployeeStockOptionMember2021-09-300000837465us-gaap:RestrictedStockMember2021-09-300000837465us-gaap:EmployeeStockOptionMember2021-01-012021-09-300000837465us-gaap:RestrictedStockUnitsRSUMembersrt:MinimumMember2021-01-012021-09-300000837465srt:MaximumMemberus-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300000837465ely:RestrictedStockUnitsInducementAwardsMember2021-07-012021-09-300000837465us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300000837465ely:RestrictedStockUnitsInducementAwardsMember2020-07-012020-09-300000837465us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300000837465ely:RestrictedStockUnitsInducementAwardsMember2021-01-012021-09-300000837465ely:RestrictedStockUnitsInducementAwardsMember2020-01-012020-09-300000837465us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300000837465us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-09-300000837465us-gaap:RestrictedStockUnitsRSUMember2021-09-300000837465srt:MinimumMemberus-gaap:PerformanceSharesMember2021-01-012021-09-300000837465srt:MaximumMemberus-gaap:PerformanceSharesMember2021-01-012021-09-300000837465us-gaap:PerformanceSharesMember2021-01-012021-09-300000837465ely:PerformanceSharesInducementAwardsMember2021-01-012021-09-300000837465ely:PerformanceSharesInducementAwardsMember2020-01-012020-09-300000837465us-gaap:PerformanceSharesMember2020-01-012020-09-300000837465us-gaap:PerformanceSharesMember2021-07-012021-09-300000837465us-gaap:PerformanceSharesMember2020-07-012020-09-300000837465us-gaap:PerformanceSharesMember2021-09-300000837465us-gaap:CostOfSalesMember2021-07-012021-09-300000837465us-gaap:CostOfSalesMember2020-07-012020-09-300000837465us-gaap:CostOfSalesMember2021-01-012021-09-300000837465us-gaap:CostOfSalesMember2020-01-012020-09-300000837465us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300000837465us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-09-300000837465us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300000837465us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-09-300000837465us-gaap:ResearchAndDevelopmentExpenseMember2021-07-012021-09-300000837465us-gaap:ResearchAndDevelopmentExpenseMember2020-07-012020-09-300000837465us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-09-300000837465us-gaap:ResearchAndDevelopmentExpenseMember2020-01-012020-09-300000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2021-09-300000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMember2021-09-300000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMember2021-09-300000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ForeignExchangeContractMember2021-09-300000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2021-09-300000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Member2021-09-300000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2021-09-300000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel3Member2021-09-300000837465us-gaap:FairValueMeasurementsRecurringMember2021-09-300000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-09-300000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2020-12-310000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMember2020-12-310000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMember2020-12-310000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ForeignExchangeContractMember2020-12-310000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2020-12-310000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Member2020-12-310000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2020-12-310000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel3Member2020-12-310000837465us-gaap:FairValueMeasurementsRecurringMember2020-12-310000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000837465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310000837465us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SecuredDebtMemberely:TermLoanBFacilityMember2021-09-300000837465us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SecuredDebtMemberely:TermLoanBFacilityMember2021-09-300000837465us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SecuredDebtMemberely:TermLoanBFacilityMember2020-12-310000837465us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SecuredDebtMemberely:TermLoanBFacilityMember2020-12-310000837465us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SecuredDebtMemberely:JapanTermLoanFacilityMember2021-09-300000837465us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SecuredDebtMemberely:JapanTermLoanFacilityMember2021-09-300000837465us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SecuredDebtMemberely:JapanTermLoanFacilityMember2020-12-310000837465us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SecuredDebtMemberely:JapanTermLoanFacilityMember2020-12-310000837465us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-09-300000837465us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-300000837465us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310000837465us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310000837465us-gaap:CarryingReportedAmountFairValueDisclosureMemberely:ABLFacilityMember2021-09-300000837465us-gaap:EstimateOfFairValueFairValueDisclosureMemberely:ABLFacilityMember2021-09-300000837465us-gaap:CarryingReportedAmountFairValueDisclosureMemberely:ABLFacilityMember2020-12-310000837465us-gaap:EstimateOfFairValueFairValueDisclosureMemberely:ABLFacilityMember2020-12-310000837465ely:EquipmentNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SecuredDebtMember2021-09-300000837465ely:EquipmentNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SecuredDebtMember2021-09-300000837465ely:EquipmentNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SecuredDebtMember2020-12-310000837465ely:EquipmentNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SecuredDebtMember2020-12-310000837465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-09-300000837465us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2021-09-300000837465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310000837465us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2020-12-310000837465us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:LoansPayableMember2021-09-300000837465us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:LoansPayableMember2021-09-300000837465us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:LoansPayableMember2020-12-310000837465us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:LoansPayableMember2020-12-310000837465ely:TopgolfTermLoanMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SecuredDebtMember2021-09-300000837465ely:TopgolfTermLoanMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SecuredDebtMember2021-09-300000837465ely:TopgolfTermLoanMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SecuredDebtMember2020-12-310000837465ely:TopgolfTermLoanMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SecuredDebtMember2020-12-3100008374652020-04-012020-06-300000837465ely:TradenamesTrademarkTradeDressAndOtherMember2020-04-012020-06-300000837465us-gaap:OtherCurrentAssetsMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300000837465us-gaap:OtherCurrentAssetsMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000837465us-gaap:OtherCurrentAssetsMemberus-gaap:NondesignatedMember2021-09-300000837465us-gaap:OtherCurrentAssetsMemberus-gaap:NondesignatedMember2020-12-310000837465us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300000837465us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000837465us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300000837465us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000837465us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300000837465us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000837465us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300000837465us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000837465us-gaap:NondesignatedMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:ForeignExchangeForwardMember2021-09-300000837465us-gaap:NondesignatedMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:ForeignExchangeForwardMember2020-12-310000837465us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300000837465us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000837465us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-09-300000837465ely:CostOfGoodsSoldMemberus-gaap:ForeignExchangeForwardMember2021-07-012021-09-300000837465ely:CostOfGoodsSoldMemberus-gaap:ForeignExchangeForwardMember2021-01-012021-09-300000837465us-gaap:ForeignExchangeForwardMember2021-01-012021-09-300000837465us-gaap:ForeignExchangeForwardMember2021-07-012021-09-300000837465us-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-09-300000837465ely:CostOfGoodsSoldMemberus-gaap:ForeignExchangeForwardMember2020-07-012020-09-300000837465ely:CostOfGoodsSoldMemberus-gaap:ForeignExchangeForwardMember2020-01-012020-09-300000837465ely:OtherIncomeAndExpenseMemberus-gaap:CurrencySwapMember2020-01-012020-09-300000837465ely:CurrencyandInterestRateSwapAgreementsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300000837465ely:CurrencyandInterestRateSwapAgreementsMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000837465us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-07-012021-09-300000837465us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-09-300000837465us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300000837465us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-07-012020-09-300000837465us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-01-012020-09-300000837465us-gaap:CashFlowHedgingMemberus-gaap:CurrencySwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-01-012020-09-300000837465us-gaap:CashFlowHedgingMemberus-gaap:CurrencySwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-09-300000837465us-gaap:CashFlowHedgingMemberus-gaap:CurrencySwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-07-012020-09-300000837465ely:OtherIncomeAndExpenseMemberus-gaap:CurrencySwapMember2020-07-012020-09-300000837465us-gaap:InterestIncomeMemberus-gaap:CurrencySwapMember2020-07-012020-09-300000837465us-gaap:InterestIncomeMemberus-gaap:CurrencySwapMember2020-01-012020-09-300000837465us-gaap:InterestIncomeMemberus-gaap:CurrencySwapMember2021-01-012021-09-300000837465us-gaap:InterestIncomeMemberus-gaap:CurrencySwapMember2021-07-012021-09-300000837465us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-07-012021-09-300000837465us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-07-012020-09-300000837465us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-01-012020-09-300000837465us-gaap:CashFlowHedgingMemberus-gaap:CurrencySwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-07-012021-09-300000837465us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-07-012021-09-300000837465us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-07-012020-09-300000837465us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-09-300000837465us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-01-012020-09-300000837465us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2021-09-300000837465us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2020-12-310000837465ely:OtherIncomeAndExpenseMember2021-07-012021-09-300000837465ely:OtherIncomeAndExpenseMember2020-07-012020-09-300000837465ely:OtherIncomeAndExpenseMember2021-01-012021-09-300000837465ely:OtherIncomeAndExpenseMember2020-01-012020-09-300000837465us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-06-300000837465us-gaap:AccumulatedTranslationAdjustmentMember2021-06-300000837465us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-07-012021-09-300000837465us-gaap:AccumulatedTranslationAdjustmentMember2021-07-012021-09-300000837465us-gaap:CostOfSalesMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-07-012021-09-300000837465us-gaap:CostOfSalesMemberus-gaap:AccumulatedTranslationAdjustmentMember2021-07-012021-09-300000837465us-gaap:InterestExpenseMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-07-012021-09-300000837465us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:InterestExpenseMember2021-07-012021-09-300000837465us-gaap:InterestExpenseMember2021-07-012021-09-300000837465us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-09-300000837465us-gaap:AccumulatedTranslationAdjustmentMember2021-09-300000837465us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-12-310000837465us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000837465us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-01-012021-09-300000837465us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-09-300000837465us-gaap:CostOfSalesMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-01-012021-09-300000837465us-gaap:CostOfSalesMemberus-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-09-300000837465us-gaap:InterestExpenseMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-01-012021-09-300000837465us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:InterestExpenseMember2021-01-012021-09-300000837465us-gaap:InterestExpenseMember2021-01-012021-09-300000837465ely:TopgolfSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300000837465ely:TopgolfSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300000837465ely:GolfEquipmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300000837465ely:GolfEquipmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300000837465ely:GolfEquipmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300000837465ely:GolfEquipmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300000837465ely:ApparelGearandOtherMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300000837465ely:ApparelGearandOtherMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300000837465ely:ApparelGearandOtherMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300000837465ely:ApparelGearandOtherMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300000837465us-gaap:OperatingSegmentsMember2021-07-012021-09-300000837465us-gaap:OperatingSegmentsMember2020-07-012020-09-300000837465us-gaap:OperatingSegmentsMember2021-01-012021-09-300000837465us-gaap:OperatingSegmentsMember2020-01-012020-09-300000837465us-gaap:CorporateNonSegmentMember2021-07-012021-09-300000837465us-gaap:CorporateNonSegmentMember2020-07-012020-09-300000837465us-gaap:CorporateNonSegmentMember2021-01-012021-09-300000837465us-gaap:CorporateNonSegmentMember2020-01-012020-09-300000837465ely:TopgolfInternationalIncMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300000837465ely:TopgolfInternationalIncMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300000837465ely:OGIOTravisMatthewAndJackWolfskinMember2020-07-012020-09-300000837465ely:OGIOTravisMatthewAndJackWolfskinMember2020-01-012020-09-300000837465us-gaap:CorporateNonSegmentMember2020-04-012020-06-300000837465us-gaap:SubsequentEventMemberely:FiveIronGolfMember2021-10-012021-11-09

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2021
OR
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period                      to                     
Commission file number 001-10962  
Callaway Golf Company
(Exact name of registrant as specified in its charter)
Delaware 95-3797580
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
2180 Rutherford Road, Carlsbad, CA 92008
(760) 931-1771
(Address, including zip code, and telephone number, including area code, of principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on which Registered
Common Stock, $0.01 par value per shareELYThe New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ý    No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ý
As of September 30, 2021, the number of shares outstanding of the Registrant’s common stock was 186,013,802.



Important Notice to Investors Regarding Forward-Looking Statements: This report contains "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "may," "should," "will," "could," "would," "anticipate," "plan," "believe," "project," "estimate," "expect," "strategy," "future," "likely," and similar references to future periods. Forward-looking statements include, among others, statements that relate to future plans, events, liquidity, financial results, performance, prospects or growth and scale opportunities including, but not limited to, statements relating to future industry and market conditions, the impact of the COVID-19 pandemic on the Company's business, results of operations and financial condition and the impact of any measures taken to mitigate the effect of the COVID-19 pandemic, the benefits of the merger with Topgolf International, Inc. (“Topgolf”), including the anticipated operations, financial position, liquidity, performance, prospects or growth and scale opportunities of Callaway, Topgolf or the combined company, any statements regarding the strength of the Company's brands, product lines and e-commerce business, geographic diversity, market recovery, availability of capital under the Company's credit facilities, the capital markets or other sources, the Company's conservation and cost reduction efforts, future stock repurchases, cash flows and liquidity, compliance with debt covenants, estimated unrecognized stock compensation expense, projected capital expenditures and depreciation and amortization expense, future contractual obligations, the realization of deferred tax assets, including loss and credit carryforwards, future income tax expense, the future impact of new accounting standards, the JW Stargazer Holding GmbH ("Jack Wolfskin") acquisition, and the related financial impact of the future business and prospects of the Company, TravisMathew, LLC ("TravisMathew"), OGIO International, Inc. ("OGIO"), Jack Wolfskin and Topgolf. These statements are based upon current information and the Company's current beliefs, expectations and assumptions regarding the future of the Company's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. As a result of these uncertainties and because the information on which these forward-looking statements is based may ultimately prove to be incorrect, actual results may differ materially from those anticipated. Important factors that could cause actual results to differ include, among others, the following:
certain risks and uncertainties, including changes in capital markets or economic conditions, particularly the uncertainty related to the duration and impact of the COVID-19 pandemic, and related decreases in consumer demand and spending;
the impact of the COVID-19 pandemic and other potential future outbreaks of infectious diseases or other health concerns, and measures taken to limit their impact, which could adversely affect the Company’s business, consumer demand and supply chain, and the global economy;
disruptions to business operations whether from COVID-19-related travel restrictions, mandated quarantines or voluntary “social distancing” that affects employees, customers and suppliers, production delays, closures of manufacturing facilities, retail locations, warehouses and supply and distribution chains, and staffing shortages as a result of remote working requirements or otherwise;
costs, expenses or difficulties related to the merger with Topgolf, including the integration of the Topgolf business, or the failure to realize the expected benefits and synergies of the Topgolf merger in the expected timeframes or at all;
the potential impact of the merger on relationships with the Company’s and/or Topgolf’s employees, customers, suppliers and other business partners;
consumer acceptance of and demand for the Company’s products;
future retailer purchasing activity, which can be significantly affected by adverse industry conditions and overall retail inventory levels;
any unfavorable changes in U.S. trade or other policies, including restrictions on imports or an increase in import tariffs;
the level of promotional activity in the marketplace;
future consumer discretionary purchasing activity, which can be significantly adversely affected by unfavorable economic or market conditions;
future changes in foreign currency exchange rates and the degree of effectiveness of the Company’s hedging programs;
the ability of the Company to manage international business risks;
the Company's ability to recognize operational synergies and scale opportunities across its supply chain and global business platform;
the costs and disruption associated with activist investors;
significant developments stemming from the U.K.’s withdrawal from the European Union, which could have a material adverse effect on the Company;
adverse changes in the credit markets or continued compliance with the terms of the Company’s credit facilities;

2


the Company's ability to monetize its investments;
the Company's ability to successfully integrate, operate and expand the retail stores of the acquired TravisMathew and Jack Wolfskin businesses, and venue locations of the Topgolf business;
delays, difficulties or increased costs in the supply of components needed to manufacture the Company’s products or in manufacturing the Company’s products, including the Company's dependence on a limited number of suppliers for some of its products;
adverse weather conditions and seasonality;
any rule changes or other actions taken by the United States Golf Association or other golf association that could have an adverse impact upon demand or supply of the Company’s products;
the ability of the Company to protect its intellectual property rights;
a decrease in participation levels in golf;
the effect of terrorist activity, armed conflict, natural disasters or pandemic diseases, including without limitation the COVID-19 pandemic, on the economy generally, on the level of demand for the Company’s products or on the Company’s ability to manage its supply and delivery logistics in such an environment; and
the general risks and uncertainties applicable to the Company and its business.
Investors should not place undue reliance on these forward-looking statements, which are based on current information and speak only as of the date hereof. The Company undertakes no obligation to update any forward-looking statements to reflect new information or events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Additionally, the risks, uncertainties and other factors set forth above or otherwise referred to in the reports that the Company has filed with the Securities and Exchange Commission may be further amplified by the global impact of the COVID-19 pandemic. Investors should also be aware that while the Company from time to time does communicate with securities analysts, it is against the Company’s policy to disclose to them any material non-public information or other confidential commercial information. Furthermore, the Company has a policy against distributing or confirming financial forecasts or projections issued by analysts and any reports issued by such analysts are not the responsibility of the Company. Investors should not assume that the Company agrees with any report issued by any analyst or with any statements, projections, forecasts or opinions contained in any such report. For details concerning these and other risks and uncertainties, see Part I, Item IA, “Risk Factors” contained in the Company's most recent Annual Report on Form 10-K, as well as the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K subsequently filed with the Securities and Exchange Commission from time to time.

Callaway Golf Company Trademarks: The following marks and phrases, among others, are trademarks of the Company: Alpha Convoy, Apex, Apex DCB, Apex TCB, Apex Tour, Apex UW, APW, Arm Lock, Backstryke, Big Bertha, Big Bertha B21, Big Bertha REVA, Big T, Bird of Prey, Black Series, Bounty Hunter, C Grind, Callaway, Callaway Capital, Callaway Golf, Callaway Media Productions, Callaway Super Hybrid, Callaway X, Capital, Chev, Chev 18, Chevron Device, Chrome Soft, Chrome Soft X, Cirrus, Comfort Tech, CUATER, Cuater C logo, Cup 360, CXR, 360 Face Cup, Dawn Patrol, Demonstrably Superior And Pleasingly Different, Divine, Double Wide, Eagle, Engage, Epic, Epic Flash, Epic Max, Epic Max LS, Epic Speed, ERC, ERC Soft, Everyone’s Game, Exo, Cage, Fast Tech Mantle, Flash Face Technology, Flash Face SS21, FT Optiforce, FT Performance, FT Tour, Fusion, Fusion Zero, GBB, GBB Epic, Gems, Golf Fusion, Gravity Core, Great Big Bertha, Great Big Bertha Epic, Grom, Groove- In- Groove Technology, Heavenwood, Hersatility,Hex Aerodynamics, Hex Chrome, HX, Hyper Dry, Hyper-Lite, Hyper Speed Face, I.D. Ball, Jack Wolfskin, Jailbird, Jailbreak, Jailbreak AI Speed Frame, Jailbreak AI Velocity Blades, JAWS MD5, Jewel Jam, Kings of Distance, Legacy, Life On Tour, Longer From Everywhere, Luxe, Mack Daddy,Magna, Majestic, MarXman, Mavrik, MD3 Milled, MD4 Tactical, MD5, MD 5 Jaws, Metal-X, Microhinge Face Insert, Microhinge Star, Mission:Ambition, Nanuk, NipIt, Number One Putter in Golf, O OGIO, O Works, Odyssey, Odyssey Works, Offset Groove in Groove, Ogio, OGIO ALPHA, OGIO ARORA, OGIO CLUB, OGIO FORGE, OGIO ME, OGIO RENEGADE, OGIO SAVAGE, OGIO SHADOW, OGIO XIX, Opti Flex, Opti Grip, Opti Shield, OptiFit, Opti Vent, ORG 7, ORG 14, ORG 15, Paw Print, PRESTIGE 7, ProType, R, Red Ball, R-Moto, Renegade, Rig 9800, Rossie, RSX, S2H2, Sabertooth, Shredder, Silencer, SLED, Slice Stopper, SoftFast, Solaire, Speed Regime, Speed Step, Steelhead XR, Steelhead, Strata, Stroke Lab, Stronomic, Sub Zero, Superhot, Supersoft, SureOut, Swing Suite, Tee Time Adventures,TM, Tank, Tank Cruiser, Tech Series, Teron, Texapore, TMCA, Toe Up, TopChallenge, TopChip , TopContender, TopDrive, TopGolf, TopGolf Crush, Topgolf Entertainment Group, TopGolf Media, Topgolf Shield Logo, TopLife, TopPressure, TopScore, TopScramble, TopShot, TopTracer, TopTracer Range, Toulon, Toulon Garage, Tour Authentic, Tour Tested, Trade In! Trade Up!, TRAVISMATHEW, TravisMathew TM logo, Trionomer Cover, Truvis, Truvis Pattern, Tyro, udesign, Uptown, Versa, VFT, W Grind, Warbird, Weather Series, Wedgeducation, WGT, White Hot, White Hot OG, White Hot Tour, White Ice, World's Friendliest, X-12, X-14, X-16, X-18, X-20, X-22, X-24, XACT, X Face VFT, X Hot, X Hot Pro, X² Hot, X Series,X Tech, XR, XR 16, XSPANN, Xtra Traction Technology, Xtra Width Technology, XTT, 2-Ball.


3


CALLAWAY GOLF COMPANY
INDEX

Item 1.
Consolidated Condensed Balance Sheets as of September 30, 2021 and December 31, 2020
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.


4


PART I. FINANCIAL INFORMATION
Item 1.    Financial Statements (Unaudited)
CALLAWAY GOLF COMPANY
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)
September 30, 2021December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents$508,177 $366,119 
Restricted cash1,754  
Accounts receivable, net255,223 138,482 
Inventories385,311 352,544 
Prepaid expenses48,161 20,318 
Other current assets140,785 35,164
Total current assets1,339,411 912,627 
Property, plant and equipment, net1,330,326 146,495 
Operating lease right-of-use assets, net1,066,124 194,776 
Intangible assets, net1,537,047 484,339 
Goodwill2,025,175 56,658 
Investment in golf-related venture9,250 111,442 
Other assets90,046 74,263 
Total assets$7,397,379 $1,980,600 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses$453,638 $276,209 
Accrued employee compensation and benefits115,946 30,937 
Asset-based credit facilities30,108 22,130 
Operating lease liabilities, short-term55,507 29,579 
Construction advances54,264  
Deferred revenue84,359 2,546 
Other current liabilities46,333 29,871 
Total current liabilities840,155 391,272 
Long-term liabilities:
Long-term debt, net (Note 7)
1,049,019 650,564 
Operating lease liabilities, long-term1,181,443 177,996 
Deemed landlord financing, long-term312,027  
Deferred taxes, net241,205 58,628 
Other long-term liabilities51,604 26,496 
Commitments and contingencies (Note 14)
Shareholders’ equity:
Preferred stock, $0.01 par value, 3,000,000 shares authorized, none issued and outstanding at September 30, 2021 and December 31, 2020
  
Common stock, $0.01 par value, 360,000,000 shares authorized, 186,031,283 and 95,648,648 shares issued at September 30, 2021 and December 31, 2020, respectively
1,860 956 
Additional paid-in capital3,037,609 346,945 
Retained earnings708,391 360,228 
Accumulated other comprehensive loss(25,422)(6,546)
Less: Common stock held in treasury, at cost, 17,481 and 1,446,408 shares at September 30, 2021 and December 31, 2020, respectively
(512)(25,939)
Total shareholders’ equity3,721,926 675,644 
Total liabilities and shareholders’ equity$7,397,379 $1,980,600 

The accompanying notes are an integral part of these financial statements.

5


CALLAWAY GOLF COMPANY
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)

 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Net revenues:
Products$527,064 $475,559 $1,678,432 $1,214,831 
Services329,397  743,291  
Total net revenues856,461 475,559 2,421,723 1,214,831 
Costs and expenses:
Cost of products288,364 274,826 914,002 696,369 
Cost of services, excluding depreciation and amortization40,070  93,841  
Other venue expenses215,841  483,617  
Selling, general and administrative expenses217,736 127,085 612,740 384,054 
Research and development expense15,753 10,139 48,769 33,399 
Goodwill and trade name impairment   174,269 
Venue pre-opening costs2,687  9,376  
Total costs and expenses780,451 412,050 2,162,345 1,288,091 
Income (loss) from operations76,010 63,509 259,378 (73,260)
Interest income77 178 319 396 
Interest expense(28,807)(12,905)(75,382)(34,401)
Gain on Topgolf investment  252,531  
Other income, net2,958 7,010 9,487 27,487 
Income (loss) before income taxes50,238 57,792 446,333 (79,778)
Income tax provision66,229 5,360 98,119 6,580 
Net income (loss)$(15,991)$52,432 $348,214 $(86,358)
Earnings (loss) per common share:
Basic($0.09)$0.56 $2.13 ($0.92)
Diluted($0.09)$0.54 $2.03 ($0.92)
Weighted-average common shares outstanding:
Basic185,96394,171163,141 94,207 
Diluted185,96396,612171,194 94,207 















The accompanying notes are an integral part of these financial statements.

6


CALLAWAY GOLF COMPANY
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(In thousands)

 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Net income (loss) $(15,991)$52,432 $348,214 $(86,358)
Other comprehensive income (loss):
Change in derivative instruments541 (593)7,258 (14,635)
Foreign currency translation adjustments(12,929)9,128 (23,206)2,347 
Comprehensive income (loss), before income tax on other comprehensive income items(28,379)60,967 332,266 (98,646)
Income tax provision (benefit) on derivative instruments1,340 66 2,928 (3,387)
Comprehensive income (loss) $(29,719)$60,901 $329,338 $(95,259)



































The accompanying notes are an integral part of these financial statements.

7


CALLAWAY GOLF COMPANY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Nine months ended September 30,
 20212020
Cash flows from operating activities:
Net income (loss)$348,214 $(86,358)
Adjustments to reconcile net income to net cash provided by operating activities:
   Depreciation and amortization107,919 28,668 
   Lease amortization expense45,996 24,293 
   Amortization of debt issuance costs4,042 3,024 
   Debt discount amortization10,255 3,857 
   Impairment loss 174,269 
   Deferred taxes, net86,982 (117)
   Non-cash share-based compensation27,113 8,066 
   Loss on disposal of long-lived assets194 297 
   Gain on Topgolf investment(252,531) 
   Gain on conversion of note receivable (1,252)
   Unrealized net gains on hedging instruments and foreign currency(2,659)(8,899)
   Acquisition costs(16,199) 
Change in assets and liabilities, net of effect from acquisitions:
   Accounts receivable, net(111,049)(96,344)
   Inventories(27,280)135,976 
   Leasing receivables(16,387) 
   Other assets(57,943)11,097 
   Accounts payable and accrued expenses71,230 (40,855)
   Deferred revenue18,985 813 
   Accrued employee compensation and benefits46,930 (13,252)
   Payments on operating leases(37,658)(21,181)
   Income taxes receivable/payable, net2,679 43 
   Other liabilities(2,029)406 
Net cash provided by operating activities246,804 122,551 
Cash flows from investing activities:
Cash acquired in merger171,294  
Capital expenditures(198,896)(30,911)
Investment in golf-related ventures (19,999)
Proceeds from sale of investment in golf-related ventures18,591  
Proceeds from sales of property and equipment 8 
Net cash used in investing activities
(9,011)(50,902)
Cash flows from financing activities:
Repayments of long-term debt(160,860)(8,203)
Proceeds from issuance of long-term debt20,000 37,728 
Proceeds from (repayments of) credit facilities, net7,978 (114,345)
Proceeds from issuance of convertible notes 258,750 
Premium paid for capped call confirmations (31,775)
Debt issuance cost(5,441)(9,143)
Payment on contingent earn-out obligation(3,577) 
Repayments of financing leases(465)(530)
Proceeds from lease financing49,508  
Exercise of stock options19,520 130 
Dividends paid(3)(1,891)
Acquisition of treasury stock(12,938)(22,143)
Net cash (used in) provided by financing activities(86,278)108,578 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(3,775)(237)
Net increase in cash, cash equivalents and restricted cash147,740 179,990 
Cash, cash equivalents and restricted cash at beginning of period366,119 106,666 
Cash, cash equivalents and restricted cash at end of period$513,859 $286,656 
Supplemental disclosures:
Cash paid for income taxes, net$8,021 $2,935 
Cash paid for interest and fees$68,124 $23,704 
Non-cash investing and financing activities:
Issuance of treasury stock and common stock for compensatory stock awards released from restriction$18,320 $19,609 
Accrued capital expenditures at period-end$36,750 $777 
Financed additions of capital expenditures$53,892 $ 
Issuance of common stock in Topgolf merger$2,650,201 $ 

The accompanying notes are an integral part of these financial statements.
8


CALLAWAY GOLF COMPANY
CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS’ EQUITY
(Unaudited)
(In thousands)

 Common StockAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury StockTotal Shareholders' Equity
 SharesAmountSharesAmount
Balance at June 30, 2021
185,940 $1,859 $3,024,995 $724,393 $(11,694)(3)$(90)$3,739,463 
Acquisition of treasury stock— — 78 — — (17)(478)(400)
Exercise of stock options52 1 1,065 — — 2 51 1,117 
Compensatory awards released from restriction39 — (5)— — 1 5  
Share-based compensation— — 11,465 — — — — 11,465 
Stock dividends— — 11 (11)— —   
Equity adjustment from foreign currency translation— — — — (12,929)— — (12,929)
Change in fair value of derivative instruments, net of tax— — — — (799)— — (799)
Net loss— — — (15,991)— — — (15,991)
Balance at September 30, 2021
186,031 $1,860 $3,037,609 $708,391 $(25,422)(17)$(512)$3,721,926 




 Common StockAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
(Loss) Income
Treasury StockTotal Shareholders' Equity
 SharesAmountSharesAmount
Balance at December 31, 2020
95,649 $956 $346,945 $360,228 $(6,546)(1,446)$(25,939)$675,644 
Common stock issued in Topgolf merger89,776 898 2,649,303 — — — — 2,650,201 
Fair value of replacement awards converted in Topgolf merger— — 33,051 — — — — 33,051 
Common stock issued for replacement restricted stock awards188 2 (2)— — — —  
Acquisition of treasury stock— — 331 — — (426)(13,269)(12,938)
Exercise of stock options379 4 (836)— — 911 20,352 19,520 
Compensatory awards released from restriction39 — (18,320)— — 943 18,320  
Share-based compensation— — 27,113 — — — — 27,113 
Stock dividends— — 24 (48)— 1 24  
Cash dividends ($0.01 per share)
— — — (3)— — — (3)
Equity adjustment from foreign currency translation— — — — (23,206)— — (23,206)
Change in fair value of derivative instruments, net of tax— — — — 4,330 — — 4,330 
Net income— — — 348,214 — — — 348,214 
Balance at September 30, 2021
186,031 $1,860 $3,037,609 $708,391 $(25,422)(17)$(512)$3,721,926 












The accompanying notes are an integral part of these financial statements.
9


CALLAWAY GOLF COMPANY
CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS’ EQUITY
(Unaudited)
(In thousands)

 Common StockAdditional Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
(Loss) Income
Treasury StockTotal Shareholders' Equity
 SharesAmountSharesAmount
Balance at June 30, 2020
95,649 $956 $341,615 $348,376 $(39,792)(1,485)$(26,607)$624,548 
Acquisition of treasury stock— — — — — (10)(190)(190)
Compensatory awards released from restriction— — (466)— — 26 466  
Share-based compensation— — 3,272 — — — — 3,272 
Stock dividends— — 1 (3)— — 2  
Equity adjustment from foreign currency translation— — — — 9,128 — — 9,128 
Change in fair value of derivative instruments— — — — (659)— — (659)
Equity component of convertible notes, net of issuance costs and tax— — 3 — — — — 3 
Net income— — — 52,432 — — — 52,432 
Balance at September 30, 2020
95,649 $956 $344,425 $400,805 $(31,323)(1,469)$(26,329)$688,534 


 Common StockAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
(Loss) Income
Treasury StockTotal Shareholders' Equity
 SharesAmountSharesAmount
Balance, December 31, 2019
95,649 $956 $323,600 $489,382 $(22,422)(1,451)$(24,163)$767,353 
Adoption of accounting standard— — — (289)— — — (289)
Acquisition of treasury stock— — — — — (1,178)(22,143)(22,143)
Exercise of stock options— — (203)— — 20 333 130 
Compensatory awards released from restriction— — (19,609)— —