Company Quick10K Filing
Quick10K
Callaway Golf
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$17.01 95 $1,610
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-08-08 Earnings, Exhibits
8-K 2019-07-15 Officers
8-K 2019-06-11 Regulation FD, Exhibits
8-K 2019-06-03 Regulation FD
8-K 2019-05-28 Regulation FD
8-K 2019-05-21 Regulation FD, Exhibits
8-K 2019-05-17 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-05-13 Regulation FD, Exhibits
8-K 2019-05-09 Shareholder Vote
8-K 2019-05-09 Earnings, Exhibits
8-K 2019-02-11 Regulation FD, Exhibits
8-K 2019-02-06 Earnings, Exhibits
8-K 2019-02-01 Enter Agreement, Exhibits
8-K 2019-01-03 Enter Agreement, M&A, Off-BS Arrangement, Regulation FD, Exhibits
8-K 2018-11-29 Enter Agreement, Off-BS Arrangement, Regulation FD, Exhibits
8-K 2018-11-07 Officers, Other Events
8-K 2018-10-24 Earnings, Exhibits
8-K 2018-08-02 Earnings, Exhibits
8-K 2018-05-09 Officers, Shareholder Vote, Other Events
8-K 2018-04-26 Earnings, Exhibits
8-K 2018-02-07 Earnings, Exhibits
8-K 2018-01-17 Regulation FD
MT Arcelormittal 19,060
AMG Affiliated Managers Group 4,830
AWR American States Water 2,610
QTS QTS Realty Trust 2,440
SRNE Sorrento Therapeutics 437
EVOL Evolving Systems 13
NLRT Nogales Resources 0
GNBC Green Bancorp 0
AQIM Altegris Qim Futures Fund 0
HBIA Hills Bancorporation 0
ELY 2019-06-30
Part I. Financial Information
Item 1. Financial Statements (Unaudited)
Note 1. Basis of Presentation
Note 2. Leases
Note 3. Revenue Recognition
Note 4. Business Combinations
Note 5. Financing Arrangements
Note 6. Earnings per Common Share
Note 7. Inventories
Note 8. Goodwill and Intangible Assets
Note 9. Joint Venture
Note 10. Investments
Note 11. Product Warranty
Note 12. Income Taxes
Note 13. Commitments & Contingencies
Note 14. Share-Based Employee Compensation
Note 15. Fair Value of Financial Instruments
Note 16. Derivatives and Hedging
Note 17. Accumulated Other Comprehensive Loss
Note 18. Segment Information
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-3.2 ely-exx32q219.htm
EX-10.2 ely-exx102q219.htm
EX-31.1 ely-exx311q219.htm
EX-31.2 ely-exx312q219.htm
EX-32.1 ely-exx321q219.htm

Callaway Golf Earnings 2019-06-30

ELY 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2019
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 Class
Trading Symbol(s)
Name of Each Exchange on which Registered
Common Stock, $0.01 par value per share
ELY
The 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 filer
Accelerated filer
Non-accelerated filer
Smaller 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 June 30, 2019, the number of shares outstanding of the Registrant’s common stock was 94,094,269.
 


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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 or performance including, but not limited to, statements relating to future stock repurchases, cash flows and liquidity, compliance with debt covenants, estimated unrecognized stock compensation expense, projected capital expenditures and depreciation and amortization expense, market conditions, 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 integration of the JW Stargazer Holding GmbH ("Jack Wolfskin") acquisition, the related financial impact of the future business and prospects of the Company, TravisMathew, LLC ("TravisMathew"), OGIO International, Inc. ("OGIO") and Jack Wolfskin and the impact of the 2017 Tax Cuts and Jobs Act (the "Tax Act"), which includes a broad range of provisions that could have a material impact on the Company's tax provision in future periods. 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 market or economic conditions;
a material impact on the Company's tax provision as a result of the Tax Act;
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, tax 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;
significant fluctuations 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 costs and disruption associated with activist investors;
significant developments stemming from the U.K.’s decision to withdraw 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;
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 USGA 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 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


2

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information or events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. 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: Apex, Apex Tour, APW, Aqua Dry, Arm Lock, Backstryke, Big Bertha, Big T, Black Series, Bounty Hunter, C Grind, Callaway, Callaway Capital, Callaway Golf, Callaway Media Productions, Chev, Chev 18, Chevron Device, Chrome Soft, Cirrus, Comfort Tech, CUATER, Cuater C logo, Cup 360, CXR, 360 Face Cup, D.A.R.T., Dawn Patrol, Demonstrably Superior And Pleasingly Different, Divine, Double Wide, Eagle, Engage, Epic, Epic Flash, ERC, ERC Soft, Exo, Cage, Fast Tech Mantle, Flash Face Technology, FT Optiforce, FT Performance, FT Tour, Fusion, Fusion Zero, GBB, GBB Epic, Gems, Gravity Core, Great Big Bertha, Great Big Bertha Epic, Griptac, Grom, Groove, In, Groove Technology, Heavenwood, Hex Aerodynamics, Hex Chrome, HX, Hyper Dry, Hyper-Lite, Hyper Speed Face, Innovate or Die, Ion-X, Jack Wolfskin, Jailbird, Jailbreak, Kings of Distance, Legacy, Life On Tour, Longer From Everywhere, Mack Daddy, Magna, Majestic, MarXman, MD3 Milled, MD4 Tactical, MD5, Metal-X, Microhinge Face Insert, Nanuk, NipIt, Number One Putter in Golf, O OGIO, O Works, Odyssey, Odyssey Works, Ogio, OGIO ALPHA, OGIO ARORA, OGIO CLUB, OGIO FORGE, OGIO ME, OGIO MY EXPRESSION, OGIO RENEGADE, OGIO SAVAGE, OGIO SHADOW, Opti Flex, Opti Grip, Opti Shield, Opti Therm, OptiFit, Opti Vent, ORG 14, ORG 15, Paw Print, PRESTIGE 7, ProType, ∙R∙, Red Ball, R-Moto, Renegade, Rig 9800, Rossie, RSX, S2H2, Sabertooth, Shredder, Silencer, SLED, SoftFast, Solaire, Speed Regime, Speed Step, Steelhead XR, Steelhead, Strata, Stroke Lab, Stronomic, Sub Zero, Superhot, Supersoft, SureOut, TM, Tank, Tank Cruiser, Tech Series, Teron, Texapore, TMCA, Toe Up, 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, White Hot, White Hot Tour, White Ice, World's Friendliest, X-12, X-14, X-16, X-18, X-20, X-22, X-24, X-ACT, X Face VFT, X Hot, X Hot Pro, X² Hot, X Series, XR, XR 16, XSPANN, Xtra Traction Technology, Xtra Width Technology, XTT, 2-Ball.


3

Table of Contents

CALLAWAY GOLF COMPANY
INDEX

 
 
 
Item 1.
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
 
 
 
 
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.


4

Table of Contents

PART I. FINANCIAL INFORMATION
Item 1.    Financial Statements (Unaudited)
CALLAWAY GOLF COMPANY
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)
 
June 30,
2019
 
December 31,
2018
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
81,490

 
$
63,981

Accounts receivable, net
263,652

 
71,374

Inventories
360,467

 
338,057

Income taxes receivable
15,417

 
713

Other current assets
64,954

 
50,781

Total current assets
785,980

 
524,906

Property, plant and equipment, net
121,511

 
88,472

Operating lease right-of-use assets, net
167,585

 

Intangible assets, net
499,727

 
224,692

Goodwill
209,773

 
55,816

Deferred taxes, net
68,752

 
75,079

Investment in golf-related venture
72,238

 
72,238

Other assets
11,655

 
11,741

Total assets
$
1,937,221

 
$
1,052,944

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable and accrued expenses
$
208,287

 
$
208,653

Accrued employee compensation and benefits
39,074

 
43,172

Asset-based credit facilities
165,467

 
40,300

Accrued warranty expense
10,976

 
7,610

Operating lease liabilities, short-term
27,253

 

Current portion of long-term debt
4,643

 
2,411

Income taxes payable
6,091

 
1,091

Total current liabilities
461,791

 
303,237

Long-term liabilities:
 
 
 
Operating lease liabilities, long-term
143,717

 

Long-term debt (Note 5)
465,826

 
7,218

Income tax liability
4,005

 
4,430

Deferred taxes, net
85,829

 
1,796

Other long-term liabilities
14,117

 
1,955

Commitments and contingencies (Note 13)

 

Shareholders’ equity:
 
 
 
Preferred stock, $0.01 par value, 3,000,000 shares authorized, none issued and outstanding at June 30, 2019 and December 31, 2018

 

Common stock, $0.01 par value, 240,000,000 shares authorized, 95,648,648 shares issued at both June 30, 2019 and December 31, 2018, respectively
956

 
956

Additional paid-in capital
319,579

 
341,241

Retained earnings
489,445

 
413,799

Accumulated other comprehensive loss
(22,271
)
 
(13,700
)
Less: Common stock held in treasury, at cost, 1,554,379 and 1,137,470 shares at June 30, 2019 and December 31, 2018, respectively
(25,773
)
 
(17,722
)
Total Callaway Golf Company shareholders’ equity
761,936

 
724,574

Non-controlling interest in consolidated entity (Note 9)

 
9,734

Total shareholders’ equity
761,936

 
734,308

Total liabilities and shareholders’ equity
$
1,937,221

 
$
1,052,944

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


5

Table of Contents

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

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
Net sales
$
446,708

 
$
396,311

 
$
962,905

 
$
799,502

Cost of sales
239,891

 
203,614

 
517,655

 
406,343

Gross profit
206,817

 
192,697

 
445,250

 
393,159

Operating expenses:
 
 
 
 
 
 
 
Selling expense
113,113

 
83,261

 
232,434

 
166,221

General and administrative expense
35,423

 
24,408

 
72,361

 
46,302

Research and development expense
13,082

 
10,708

 
25,620

 
20,332

Total operating expenses
161,618

 
118,377

 
330,415

 
232,855

Income from operations
45,199

 
74,320

 
114,835

 
160,304

Interest income
476

 
363

 
665

 
415

Interest expense
(10,736
)
 
(2,024
)
 
(20,564
)
 
(3,604
)
Other income (expense), net
1,167

 
5,522

 
(773
)
 
1,016

Income before income taxes
36,106

 
78,181

 
94,163

 
158,131

Income tax provision
7,208

 
17,247

 
16,764

 
34,466

Net income
28,898

 
60,934

 
77,399

 
123,665

Less: Net (loss) income attributable to non-controlling interest
(33
)
 
67

 
(179
)
 
(57
)
Net income attributable to Callaway Golf Company
$
28,931

 
$
60,867

 
$
77,578

 
$
123,722

 
 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
 
 
Basic
$
0.31

 
$
0.65

 
$
0.82

 
$
1.31

Diluted
$
0.30

 
$
0.63

 
$
0.81

 
$
1.28

Weighted-average common shares outstanding:
 
 
 
 
 
 
 
Basic
94,074

 
94,367

 
94,377

 
94,670

Diluted
95,891

 
96,928

 
96,153

 
96,981


















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


6

Table of Contents

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

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
Net income
$
28,898

 
$
60,934

 
$
77,399

 
$
123,665

Other comprehensive income:
 
 
 
 
 
 
 
Change in derivative instruments
(5,567
)
 
1,894

 
(8,741
)
 
338

Foreign currency translation adjustments
1,321

 
(9,711
)
 
(1,657
)
 
(4,990
)
Comprehensive income, before income tax on other comprehensive income items
24,652

 
53,117

 
67,001

 
119,013

Income tax benefit (provision) on derivative instruments
1,916

 
79

 
1,488

 
(170
)
Comprehensive income
26,568

 
53,196

 
68,489

 
118,843

Less: Comprehensive income (loss) attributable to non-controlling interests
(231
)
 
(401
)
 
(339
)
 
188

Comprehensive income attributable to Callaway Golf Company
$
26,799

 
$
53,597

 
$
68,828

 
$
118,655




 





























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


7

Table of Contents

CALLAWAY GOLF COMPANY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
 
Six Months Ended
June 30,
 
2019
 
2018
Cash flows from operating activities:
 
 
 
Net income
$
77,399

 
$
123,665

Adjustments to reconcile net income to net cash (used in) provided by operating activities:
 
 
 
   Depreciation and amortization
16,999

 
9,766

   Lease amortization expense
15,279

 

   Amortization of debt issuance costs
1,295

 

   Inventory step-up on acquisition
10,703

 

   Deferred taxes, net
10,514

 
30,273

   Non-cash share-based compensation
6,964

 
6,464

   Loss/(gain) on disposal of long-lived assets
657

 
(3
)
   Unrealized (gain)/loss on foreign currency hedges
2,677

 
(1,021
)
Change in assets and liabilities, net of effect from acquisitions:
 
 
 
   Accounts receivable, net
(156,548
)
 
(166,354
)
   Inventories
57,509

 
23,415

   Other assets
(1,182
)
 
2,476

   Accounts payable and accrued expenses
(51,924
)
 
(13,761
)
   Accrued employee compensation and benefits
(10,331
)
 
(9,323
)
   Accrued warranty expense
1,159

 
1,378

Change in operating and financing leases, net
(14,335
)
 

   Income taxes receivable/payable, net
(16,224
)
 
(1,972
)
Other liabilities
(1,370
)
 
84

Net cash (used in) provided by operating activities
(50,759
)
 
5,087

Cash flows from investing activities:
 
 
 
Capital expenditures
(23,403
)
 
(17,107
)
Investments in golf related ventures

 
(282
)
Acquisition, net of cash acquired
(463,105
)
 

Proceeds from sales of property and equipment
15

 

Net cash used in investing activities
(486,493
)
 
(17,389
)
Cash flows from financing activities:
 
 
 
Proceeds from credit facilities, net
125,167

 
8,385

Principal payments on finance leases
(232
)
 

Borrowings on long-term debt
480,000

 

Debt issuance cost
(18,971
)
 

Exercise of stock options

 
1,258

Dividends paid, net
(1,893
)
 
(1,897
)
Repayments of long-term debt
(2,325
)
 
(1,083
)
Acquisition of treasury stock
(27,394
)
 
(22,301
)
Distributions to non-controlling interests

 
(821
)
Net cash provided by (used in) financing activities
554,352

 
(16,459
)
Effect of exchange rate changes on cash and cash equivalents
409

 
835

Net increase (decrease) in cash and cash equivalents
17,509

 
(27,926
)
Cash and cash equivalents at beginning of period
63,981

 
85,674

Cash and cash equivalents at end of period
$
81,490

 
$
57,748

Supplemental disclosures:
 
 
 
Cash paid for income taxes, net
$
4,602

 
$
5,329

Cash paid for interest and fees
$
17,061

 
$
3,288

Non-cash investing and financing activities:
 
 
 
Acquisition of minority interest
$
18,538

 
$

Issuance of treasury stock and common stock for compensatory stock awards released from restriction
$
19,304

 
$
5,461

Accrued capital expenditures at period-end
$
1,629

 
$
1,729




8

Table of Contents

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


9

Table of Contents

CALLAWAY GOLF COMPANY
CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS’ EQUITY
(Unaudited)
(In thousands)
 
 
Shareholders' Equity Callaway Golf Company
 
 
 
 
 
Common Stock
 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Loss
 
Treasury Stock
 
Total Callaway Golf Company Shareholders' Equity
 
Non-
Controlling Interest
 
 

 
Shares
 
Amount
 
 
 
 
Shares
 
Amount
 
 
 
Total
Balance at March 31, 2019
95,649

 
$
956

 
$
326,209

 
$
461,456

 
 
$
(20,172
)
 
 
(1,604
)
 
$
(26,595
)
 
 
$
741,854

 
 
$
9,480

 
$
751,334

Acquisition of treasury stock

 

 

 

 
 

 
 
(1
)
 
(17
)
 
 
(17
)
 
 

 
(17
)
Compensatory awards released from restriction

 

 
(837
)
 

 
 

 
 
50

 
837

 
 

 
 

 

Share-based compensation

 

 
3,529

 

 
 

 
 

 

 
 
3,529

 
 

 
3,529

Stock dividends

 

 

 
(2
)
 
 

 
 

 
2

 
 

 
 

 

Cash dividends ($0.01 per share)

 

 

 
(940
)
 
 

 
 

 

 
 
(940
)
 
 

 
(940
)
Equity adjustment from foreign currency translation

 

 

 

 
 
1,552

 
 

 

 
 
1,552

 
 
(231
)
 
1,321

Change in fair value of derivative instruments, net of tax

 

 

 

 
 
(3,651
)
 
 

 

 
 
(3,651
)
 
 

 
(3,651
)
Acquisition of non-controlling interest

 

 
(9,322
)
 

 
 

 
 

 

 
 
(9,322
)
 
 
(9,216
)
 
(18,538
)
Net income

 

 

 
28,931

 
 

 
 

 

 
 
28,931

 
 
(33
)
 
28,898

Balance at June 30, 2019
95,649

 
$
956

 
$
319,579

 
$
489,445

 
 
$
(22,271
)
 
 
(1,555
)
 
$
(25,773
)
 
 
$
761,936

 
 
$

 
$
761,936



 
Shareholders' Equity Callaway Golf Company
 
 
 
 
 
Common Stock
 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Loss
 
Treasury Stock
 
Total Callaway Golf Company Shareholders' Equity
 
Non-
Controlling Interest
 
 

 
Shares
 
Amount
 
 
 
 
Shares
 
Amount
 
 
 
Total
Balance at December 31, 2018
95,649

 
$
956

 
$
341,241

 
$
413,799

 
 
$
(13,700
)
 
 
(1,138
)
 
$
(17,722
)
 
 
$
724,574

 
 
$
9,734

 
$
734,308

Acquisition of treasury stock

 

 

 

 
 

 
 
(1,655
)
 
(27,394
)
 
 
(27,394
)
 
 

 
(27,394
)
Compensatory awards released from restriction

 

 
(19,304
)
 

 
 

 
 
853

 
19,304

 
 

 
 

 

Share-based compensation

 

 
6,964

 

 
 

 
 

 

 
 
6,964

 
 

 
6,964

Stock dividends

 

 

 
(39
)
 
 

 
 
385

 
39

 
 

 
 

 

Cash dividends ($0.01 per share)

 

 

 
(1,893
)
 
 

 
 

 

 
 
(1,893
)
 
 

 
(1,893
)
Equity adjustment from foreign currency translation

 

 

 

 
 
(1,318
)
 
 

 

 
 
(1,318
)
 
 
(339
)
 
(1,657
)
Change in fair value of derivative instruments, net of tax

 

 

 

 
 
(7,253
)
 
 

 

 
 
(7,253
)
 
 

 
(7,253
)
Acquisition of non-controlling interest

 

 
(9,322
)
 

 
 

 
 

 

 
 
(9,322
)
 
 
(9,216
)
 
(18,538
)
Net income

 

 

 
77,578

 
 

 
 

 

 
 
77,578

 
 
(179
)
 
77,399

Balance at June 30, 2019
95,649

 
$
956

 
$
319,579

 
$
489,445

 
 
$
(22,271
)
 
 
(1,555
)
 
$
(25,773
)
 
 
$
761,936

 
 
$

 
$
761,936














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


10

Table of Contents

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

 
Shareholders' Equity Callaway Golf Company
 
 
 
 
 
Common Stock
 
Additional Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Loss
 
Treasury Stock
 
Total Callaway Golf Company Shareholders' Equity
 
Non-
Controlling Interest
 
 

 
Shares
 
Amount
 
 
 
 
Shares
 
Amount
 
 
 
Total
Balance, March 31, 2018
95,649

 
$
956

 
$
333,385

 
$
374,758

 
 
$
(3,839
)
 
 
(1,228
)
 
$
(18,958
)
 
 
$
686,302

 
 
$
10,209

 
$
696,511

Acquisition of treasury stock

 

 

 

 
 

 
 
(131
)
 
(2,178
)
 
 
(2,178
)
 
 

 
(2,178
)
Exercise of stock options

 

 
(703
)
 

 
 

 
 
77

 
1,209

 
 
506

 
 

 
506

Compensatory awards released from restriction

 

 
(1,122
)
 
(8
)
 
 

 
 
73

 
1,130

 
 

 
 

 

Share-based compensation

 

 
3,465

 

 
 

 
 

 

 
 
3,465

 
 

 
3,465

Cash dividends ($0.01 per share)

 

 

 
(943
)
 
 

 
 

 

 
 
(943
)
 
 

 
(943
)
Equity adjustment from foreign currency translation

 

 

 

 
 
(9,310
)
 
 

 

 
 
(9,310
)
 
 
(401
)
 
(9,711
)
Change in fair value of derivative instruments

 

 

 

 
 
1,973

 
 

 

 
 
1,973

 
 

 
1,973

Distributions to non-controlling interests

 

 

 

 
 

 
 

 

 
 

 
 
(821
)
 
(821
)
Net Income

 

 

 
60,867

 
 

 
 

 

 
 
60,867

 
 
67

 
60,934

Balance, June 30, 2018
95,649

 
$
956

 
$
335,025

 
$
434,674

 
 
$
(11,176
)
 
 
(1,209
)
 
$
(18,797
)
 
 
$
740,682

 
 
$
9,054

 
$
749,736