Form | 10-Q |
☒ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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.) |
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 |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Item 1. | ||||||||
Consolidated Condensed Statements of Cash Flows for the | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. |
June 30, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 415,204 | $ | 366,119 | |||||||
Restricted cash | 2,469 | 0 | |||||||||
Accounts receivable, net | 325,275 | 138,482 | |||||||||
Inventories | 335,346 | 352,544 | |||||||||
Prepaid expenses | 55,028 | 20,318 | |||||||||
Other current assets | 120,728 | 35,164 | |||||||||
Total current assets | 1,254,050 | 912,627 | |||||||||
Property, plant and equipment, net | 1,264,886 | 146,495 | |||||||||
Operating lease right-of-use assets, net | 1,057,225 | 194,776 | |||||||||
Intangible assets, net | 1,556,637 | 484,339 | |||||||||
Goodwill | 2,021,908 | 56,658 | |||||||||
Investment in golf-related venture | 27,740 | 111,442 | |||||||||
Other assets | 89,388 | 74,263 | |||||||||
Total assets | $ | 7,271,834 | $ | 1,980,600 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | 426,577 | $ | 276,209 | |||||||
Accrued employee compensation and benefits | 95,427 | 30,937 | |||||||||
Asset-based credit facilities | 21,438 | 22,130 | |||||||||
Operating lease liabilities, short-term | 55,492 | 29,579 | |||||||||
Construction advances | 63,636 | 0 | |||||||||
Deferred revenue | 83,580 | 2,546 | |||||||||
Other current liabilities | 41,482 | 29,871 | |||||||||
Total current liabilities | 787,632 | 391,272 | |||||||||
Long-term liabilities: | |||||||||||
Long-term debt (Note 7) | 1,064,429 | 650,564 | |||||||||
Operating lease liabilities, long-term | 1,174,780 | 177,996 | |||||||||
Deemed landlord financing, long-term | 263,219 | 0 | |||||||||
Deferred taxes, net | 196,233 | 58,628 | |||||||||
Other long-term liabilities | 46,078 | 26,496 | |||||||||
Commitments and contingencies (Note 14) | 0 | 0 | |||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, $0.01 par value, 3,000,000 shares authorized, NaN issued and outstanding at June 30, 2021 and December 31, 2020 | 0 | 0 | |||||||||
Common stock, $0.01 par value, 360,000,000 shares authorized, 185,939,469 and 95,648,648 shares issued at June 30, 2021 and December 31, 2020, respectively | 1,859 | 956 | |||||||||
Additional paid-in capital | 3,024,995 | 346,945 | |||||||||
Retained earnings | 724,393 | 360,228 | |||||||||
Accumulated other comprehensive loss | (11,694) | (6,546) | |||||||||
Less: Common stock held in treasury, at cost, 2,588 and 1,446,408 shares at June 30, 2021 and December 31, 2020, respectively | (90) | (25,939) | |||||||||
Total shareholders’ equity | 3,739,463 | 675,644 | |||||||||
Total liabilities and shareholders’ equity | $ | 7,271,834 | $ | 1,980,600 |
September 30, 2020 | December 31, 2019 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 286,656 | $ | 106,666 | |||
Accounts receivable, net | 239,650 | 140,455 | |||||
Inventories | 324,852 | 456,639 | |||||
Income taxes receivable | 7,321 | 9,919 | |||||
Other current assets | 66,667 | 75,671 | |||||
Total current assets | 925,146 | 789,350 | |||||
Property, plant and equipment, net | 145,758 | 132,760 | |||||
Operating lease right-of-use assets, net | 186,721 | 160,098 | |||||
Intangible assets, net | 474,973 | 493,423 | |||||
Goodwill | 56,041 | 203,743 | |||||
Deferred taxes, net | 51,872 | 73,948 | |||||
Investment in golf-related venture | 111,442 | 90,134 | |||||
Other assets | 14,355 | 17,092 | |||||
Total assets | $ | 1,966,308 | $ | 1,960,548 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 245,053 | $ | 276,300 | |||
Accrued employee compensation and benefits | 33,522 | 46,891 | |||||
Asset-based credit facilities | 30,235 | 144,580 | |||||
Accrued warranty expense | 9,640 | 9,636 | |||||
Operating lease liabilities, short-term | 28,011 | 26,418 | |||||
Current portion of long-term debt | 14,623 | 7,317 | |||||
Income taxes payable | 10,326 | 12,104 | |||||
Total current liabilities | 371,410 | 523,246 | |||||
Long-term liabilities: | |||||||
Operating lease liabilities, long-term | 170,732 | 137,696 | |||||
Long-term debt (Note 6) | 651,011 | 443,259 | |||||
Income tax liability | 7,456 | 7,264 | |||||
Deferred taxes, net | 60,636 | 73,483 | |||||
Other long-term liabilities | 16,529 | 8,247 | |||||
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, 2020 and December 31, 2019 | 0 | 0 | |||||
Common stock, $0.01 par value, 240,000,000 shares authorized, 95,648,648 shares issued at both September 30, 2020 and December 31, 2019, respectively | 956 | 956 | |||||
Additional paid-in capital | 344,425 | 323,600 | |||||
Retained earnings | 400,805 | 489,382 | |||||
Accumulated other comprehensive loss | (31,323 | ) | (22,422 | ) | |||
Less: Common stock held in treasury, at cost, 1,469,101 and 1,450,875 shares at September 30, 2020 and December 31, 2019, respectively | (26,329 | ) | (24,163 | ) | |||
Total shareholders’ equity | 688,534 | 767,353 | |||||
Total liabilities and shareholders’ equity | $ | 1,966,308 | $ | 1,960,548 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||
Products | $ | 591,410 | $ | 296,996 | $ | 1,151,368 | $ | 739,272 | |||||||||||||||
Services | 322,231 | 0 | 413,894 | 0 | |||||||||||||||||||
Total net revenues | 913,641 | 296,996 | 1,565,262 | 739,272 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of products | 315,008 | 174,941 | 625,638 | 421,543 | |||||||||||||||||||
Cost of services, excluding depreciation and amortization | 42,786 | 0 | 53,771 | 0 | |||||||||||||||||||
Other venue expenses | 202,339 | 0 | 267,776 | 0 | |||||||||||||||||||
Selling, general and administrative expenses | 221,124 | 115,215 | 395,004 | 256,969 | |||||||||||||||||||
Research and development expense | 20,271 | 10,020 | 33,016 | 23,260 | |||||||||||||||||||
Goodwill and trade name impairment | 0 | 174,269 | 0 | 174,269 | |||||||||||||||||||
Venue pre-opening costs | 4,844 | 0 | 6,689 | 0 | |||||||||||||||||||
Total costs and expenses | 806,372 | 474,445 | 1,381,894 | 876,041 | |||||||||||||||||||
Income (loss) from operations | 107,269 | (177,449) | 183,368 | (136,769) | |||||||||||||||||||
Interest income | 188 | 119 | 242 | 218 | |||||||||||||||||||
Interest expense | (29,064) | (12,282) | (46,575) | (21,496) | |||||||||||||||||||
Gain on Topgolf investment | 0 | 0 | 252,531 | 0 | |||||||||||||||||||
Other income (expense), net | (2,502) | 13,997 | 6,529 | 20,477 | |||||||||||||||||||
Income (loss) before income taxes | 75,891 | (175,615) | 396,095 | (137,570) | |||||||||||||||||||
Income tax (benefit) provision | (15,853) | (7,931) | 31,890 | 1,220 | |||||||||||||||||||
Net income (loss) | $ | 91,744 | $ | (167,684) | $ | 364,205 | $ | (138,790) | |||||||||||||||
Earnings (loss) per common share: | |||||||||||||||||||||||
Basic | $0.50 | ($1.78) | $2.40 | ($1.47) | |||||||||||||||||||
Diluted | $0.47 | ($1.78) | $2.28 | ($1.47) | |||||||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||||
Basic | 185,225 | 94,141 | 151,541 | 94,225 | |||||||||||||||||||
Diluted | 194,334 | 94,141 | 159,639 | 94,225 | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net sales | $ | 475,559 | $ | 426,217 | $ | 1,214,831 | $ | 1,389,122 | |||||||
Cost of sales | 274,826 | 234,828 | 696,369 | 752,483 | |||||||||||
Gross profit | 200,733 | 191,389 | 518,462 | 636,639 | |||||||||||
Operating expenses: | |||||||||||||||
Selling expense | 93,855 | 101,984 | 285,082 | 334,418 | |||||||||||
General and administrative expense | 33,230 | 36,378 | 98,972 | 108,739 | |||||||||||
Research and development expense | 10,139 | 12,538 | 33,399 | 38,158 | |||||||||||
Goodwill and trade name impairment | 0 | 0 | 174,269 | 0 | |||||||||||
Total operating expenses | 137,224 | 150,900 | 591,722 | 481,315 | |||||||||||
Income (loss) from operations | 63,509 | 40,489 | (73,260 | ) | 155,324 | ||||||||||
Interest income | 178 | 94 | 396 | 759 | |||||||||||
Interest expense | (12,905 | ) | (9,639 | ) | (34,401 | ) | (30,203 | ) | |||||||
Other income, net | 7,010 | 2,232 | 27,487 | 1,459 | |||||||||||
Income (loss) before income taxes | 57,792 | 33,176 | (79,778 | ) | 127,339 | ||||||||||
Income tax provision | 5,360 | 2,128 | 6,580 | 18,892 | |||||||||||
Net income (loss) | 52,432 | 31,048 | (86,358 | ) | 108,447 | ||||||||||
Less: Net loss attributable to non-controlling interest | 0 | 0 | 0 | (179 | ) | ||||||||||
Net income (loss) attributable to Callaway Golf Company | $ | 52,432 | $ | 31,048 | $ | (86,358 | ) | $ | 108,626 | ||||||
Earnings (loss) per common share: | |||||||||||||||
Basic | $ | 0.56 | $ | 0.33 | $ | (0.92 | ) | $ | 1.15 | ||||||
Diluted | $ | 0.54 | $ | 0.32 | $ | (0.92 | ) | $ | 1.13 | ||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 94,171 | 94,100 | 94,207 | 94,284 | |||||||||||
Diluted | 96,612 | 96,287 | 94,207 | 96,197 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income (loss) | $ | 91,744 | $ | (167,684) | $ | 364,205 | $ | (138,790) | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Change in derivative instruments | 403 | (13,453) | 6,717 | (14,042) | |||||||||||||||||||
Foreign currency translation adjustments | 5,966 | 8,155 | (10,277) | (6,781) | |||||||||||||||||||
Comprehensive income (loss), before income tax on other comprehensive income items | 98,113 | (172,982) | 360,645 | (159,613) | |||||||||||||||||||
Income tax provision (benefit) on derivative instruments | 617 | (3,023) | 1,588 | (3,453) | |||||||||||||||||||
Comprehensive income (loss) | $ | 97,496 | $ | (169,959) | $ | 359,057 | $ | (156,160) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss) | $ | 52,432 | $ | 31,048 | $ | (86,358 | ) | $ | 108,447 | ||||||
Other comprehensive income: | |||||||||||||||
Change in derivative instruments | (593 | ) | 661 | (14,635 | ) | (8,080 | ) | ||||||||
Foreign currency translation adjustments | 9,128 | (17,083 | ) | 2,347 | (18,740 | ) | |||||||||
Comprehensive income (loss), before income tax on other comprehensive income items | 60,967 | 14,626 | (98,646 | ) | 81,627 | ||||||||||
Income tax (provision) benefit on derivative instruments | (66 | ) | (666 | ) | 3,387 | 822 | |||||||||
Comprehensive income (loss) | 60,901 | 13,960 | (95,259 | ) | 82,449 | ||||||||||
Less: Comprehensive loss attributable to non-controlling interests | 0 | 0 | 0 | (339 | ) | ||||||||||
Comprehensive income (loss) attributable to Callaway Golf Company | $ | 60,901 | $ | 13,960 | $ | (95,259 | ) | $ | 82,788 |
Six months ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 364,205 | $ | (138,790) | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 63,542 | 18,357 | |||||||||
Lease amortization expense | 26,896 | 16,313 | |||||||||
Amortization of debt issuance costs | 2,618 | 1,823 | |||||||||
Debt discount amortization | 6,527 | 1,483 | |||||||||
Impairment loss | 0 | 174,269 | |||||||||
Deferred taxes, net | 28,067 | 8,684 | |||||||||
Non-cash share-based compensation | 15,648 | 4,794 | |||||||||
Loss on disposal of long-lived assets | 100 | 123 | |||||||||
Gain on Topgolf investment | (252,531) | 0 | |||||||||
Unrealized net gains on hedging instruments and foreign currency | (5,048) | (14,059) | |||||||||
Acquisition costs | (16,199) | 0 | |||||||||
Change in assets and liabilities, net of effect from acquisitions: | |||||||||||
Accounts receivable, net | (181,975) | (73,177) | |||||||||
Inventories | 26,479 | 73,029 | |||||||||
Leasing receivables | (11,199) | 0 | |||||||||
Other assets | (50,276) | 13,984 | |||||||||
Accounts payable and accrued expenses | 62,414 | (73,087) | |||||||||
Deferred revenue | 16,651 | 595 | |||||||||
Accrued employee compensation and benefits | 25,211 | (16,876) | |||||||||
Accrued warranty expense | 0 | 143 | |||||||||
Change in operating leases, net | (18,881) | (13,438) | |||||||||
Income taxes receivable/payable, net | (3,646) | (13,118) | |||||||||
Other liabilities | 1,864 | 8,627 | |||||||||
Net cash provided by (used in) operating activities | 100,467 | (20,321) | |||||||||
Cash flows from investing activities: | |||||||||||
Cash acquired in merger | 171,294 | 0 | |||||||||
Capital expenditures | (120,833) | (25,097) | |||||||||
Note receivable, net of discount | 0 | (5,234) | |||||||||
Net cash provided by (used in) investing activities | 50,461 | (30,331) | |||||||||
Cash flows from financing activities: | |||||||||||
Repayments of credit facilities, net | (110,757) | (89,029) | |||||||||
Proceeds from lease financing | 24,799 | 0 | |||||||||
Exercise of stock options | 18,403 | 130 | |||||||||
Acquisition of treasury stock | (12,538) | (21,953) | |||||||||
Repayments of long-term debt | (12,029) | (5,504) | |||||||||
Debt issuance cost | (5,441) | (9,119) | |||||||||
Payment on contingent earn-out obligation | (3,577) | 0 | |||||||||
Repayments of financing leases | (200) | (206) | |||||||||
Dividends paid | (3) | (1,891) | |||||||||
Proceeds from issuance of convertible notes | 0 | 258,750 | |||||||||
Proceeds from issuance of long-term debt | 0 | 9,766 | |||||||||
Premium paid for capped call confirmations | 0 | (31,775) | |||||||||
Net cash (used in) provided by financing activities | (101,343) | 109,169 | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,969 | (767) | |||||||||
Net increase in cash, cash equivalents and restricted cash | 51,554 | 57,750 | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 366,119 | 106,666 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 417,673 | $ | 164,416 | |||||||
Supplemental disclosures: | |||||||||||
Cash paid for income taxes, net | $ | 6,566 | $ | 1,692 | |||||||
Cash paid for interest and fees | $ | 41,422 | $ | 16,489 | |||||||
Non-cash investing and financing activities: | |||||||||||
Issuance of treasury stock and common stock for compensatory stock awards released from restriction | $ | 18,315 | $ | 19,143 | |||||||
Accrued capital expenditures at period-end | $ | 9,224 | $ | 1,861 | |||||||
Financed additions of capital expenditures | $ | 9,256 | $ | 0 | |||||||
Issuance of common stock in Topgolf merger | $ | 2,650,201 | $ | 0 |
Nine Months Ended September 30, | |||||||
2020 | 2019 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (86,358 | ) | $ | 108,447 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 28,668 | 25,471 | |||||
Lease amortization expense | 24,293 | 23,615 | |||||
Amortization of debt issuance costs | 3,024 | 2,428 | |||||
Debt discount amortization | 3,857 | 0 | |||||
Inventory step-up on acquisition | 0 | 10,703 | |||||
Impairment loss | 174,269 | 0 | |||||
Deferred taxes, net | (117 | ) | 8,407 | ||||
Non-cash share-based compensation | 8,066 | 9,476 | |||||
Loss on disposal of long-lived assets | 297 | 649 | |||||
Gain on conversion of note receivable | (1,252 | ) | 0 | ||||
Unrealized net (gains) losses on hedging instruments | (8,899 | ) | 999 | ||||
Change in assets and liabilities, net of effect from acquisitions: | |||||||
Accounts receivable, net | (96,344 | ) | (123,560 | ) | |||
Inventories | 135,976 | 71,246 | |||||
Other assets | 11,097 | 3,547 | |||||
Accounts payable and accrued expenses | (40,042 | ) | (37,392 | ) | |||
Accrued employee compensation and benefits | (13,252 | ) | (5,558 | ) | |||
Accrued warranty expense | 4 | 412 | |||||
Change in operating leases, net | (21,181 | ) | (22,463 | ) | |||
Income taxes receivable/payable, net | 43 | (11,573 | ) | ||||
Other liabilities | 402 | (1,001 | ) | ||||
Net cash provided by operating activities | 122,551 | 63,853 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (30,911 | ) | (36,843 | ) | |||
Investments in golf related ventures | (19,999 | ) | 0 | ||||
Acquisitions, net of cash acquired | 0 | (463,105 | ) | ||||
Proceeds from sales of property and equipment | 8 | 43 | |||||
Net cash used in investing activities | (50,902 | ) | (499,905 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of convertible notes | 258,750 | 0 | |||||
Proceeds from issuance of long-term debt | 37,728 | 493,167 | |||||
Premium paid for capped call confirmations | (31,775 | ) | 0 | ||||
Debt issuance cost | (9,143 | ) | (19,088 | ) | |||
(Repayments of) proceeds from credit facilities, net | (114,345 | ) | 70,411 | ||||
Repayments of long-term debt | (8,203 | ) | (34,298 | ) | |||
Repayments of financing leases | (530 | ) | (583 | ) | |||
Exercise of stock options | 130 | 0 | |||||
Dividends paid, net | (1,891 | ) | (2,834 | ) | |||
Acquisition of treasury stock | (22,143 | ) | (27,505 | ) | |||
Purchase of non-controlling interest | 0 | (18,538 | ) | ||||
Net cash provided by financing activities | 108,578 | 460,732 | |||||
Effect of exchange rate changes on cash and cash equivalents | (237 | ) | (445 | ) | |||
Net increase in cash and cash equivalents | 179,990 | 24,235 | |||||
Cash and cash equivalents at beginning of period | 106,666 | 63,981 | |||||
Cash and cash equivalents at end of period | $ | 286,656 | $ | 88,216 | |||
Supplemental disclosures: | |||||||
Cash paid for income taxes, net | $ | 2,935 | $ | 14,874 | |||
Cash paid for interest and fees | $ | 23,704 | $ | 25,184 | |||
Non-cash investing and financing activities: | |||||||
Issuance of treasury stock and common stock for compensatory stock awards released from restriction | $ | 19,609 | $ | 19,613 | |||
Accrued capital expenditures at period-end | $ | 777 | $ | 2,283 |
Shareholders' Equity Callaway Golf Company | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 185,613 | $ | 1,856 | $ | 3,016,902 | $ | 632,650 | $ | (17,446) | (941) | $ | (21,143) | $ | 3,612,819 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | 253 | — | — | (9) | (290) | (37) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 327 | 3 | (1,449) | — | — | 869 | 19,592 | 18,146 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory awards released from restriction | — | — | (1,750) | — | — | 78 | 1,750 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 11,039 | — | — | — | — | 11,039 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock dividends | — | — | — | (1) | — | — | 1 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity adjustment from foreign currency translation | — | — | — | — | 5,966 | — | — | 5,966 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of derivative instruments, net of tax | — | — | — | — | (214) | — | — | (214) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | 91,744 | — | — | — | 91,744 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 185,940 | $ | 1,859 | $ | 3,024,995 | $ | 724,393 | $ | (11,694) | (3) | $ | (90) | $ | 3,739,463 |
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 | ||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||
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, net of tax | — | — | — | — | (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 |
Shareholders' Equity Callaway Golf Company | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity Callaway Golf Company | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Callaway Golf Company Shareholders' Equity | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 95,649 | $ | 956 | $ | 323,600 | $ | 489,382 | $ | (22,422 | ) | (1,451 | ) | $ | (24,163 | ) | $ | 767,353 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of accounting standard | — | — | — | (289 | ) | — | — | — | (289 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 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 merger | Common stock issued in Topgolf merger | 89,776 | 898 | 2,649,303 | — | — | — | — | 2,650,201 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of replacement awards converted in Topgolf merger | Fair value of replacement awards converted in Topgolf merger | — | — | 33,051 | — | — | — | — | 33,051 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for replacement restricted stock awards | Common stock issued for replacement restricted stock awards | 188 | 2 | (2) | — | — | — | — | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | — | — | — | (1,178 | ) | (22,143 | ) | (22,143 | ) | Acquisition of treasury stock | — | — | 253 | — | — | (409) | (12,791) | (12,538) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | (203 | ) | — | — | 20 | 333 | 130 | Exercise of stock options | 327 | 3 | (1,901) | — | — | 909 | 20,301 | 18,403 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory awards released from restriction | — | — | (19,609 | ) | — | — | 1,138 | 19,609 | — | Compensatory awards released from restriction | — | — | (18,315) | — | — | 942 | 18,315 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 8,066 | — | — | — | — | 8,066 | Share-based compensation | — | — | 15,648 | — | — | — | — | 15,648 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock dividends | — | — | 4 | (39 | ) | — | 2 | 35 | — | Stock dividends | — | — | 13 | (37) | — | 1 | 24 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($0.01 per share) | — | — | — | (1,891 | ) | — | — | — | (1,891 | ) | Cash dividends ($0.01 per share) | — | — | — | (3) | — | — | — | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity adjustment from foreign currency translation | — | — | — | — | 2,347 | — | — | 2,347 | Equity adjustment from foreign currency translation | — | — | — | — | (10,277) | — | — | (10,277) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of derivative instruments, net of tax | — | — | — | — | (11,248 | ) | — | — | (11,248 | ) | Change in fair value of derivative instruments, net of tax | — | — | — | — | 5,129 | — | — | 5,129 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity component of convertible notes, net of issuance costs and tax | — | — | 57,080 | — | — | — | — | 57,080 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums paid for capped call transactions, net of tax | — | — | (24,513 | ) | — | — | — | — | (24,513 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (86,358 | ) | — | — | — | (86,358 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 95,649 | $ | 956 | $ | 344,425 | $ | 400,805 | $ | (31,323 | ) | (1,469 | ) | $ | (26,329 | ) | $ | 688,534 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | Net Income | — | — | — | 364,205 | — | — | — | 364,205 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | Balance at June 30, 2021 | 185,940 | $ | 1,859 | $ | 3,024,995 | $ | 724,393 | $ | (11,694) | (3) | $ | (90) | $ | 3,739,463 |
Shareholders' Equity Callaway Golf Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 95,649 | $ | 956 | $ | 307,133 | $ | 517,004 | $ | (37,517) | (1,541) | $ | (27,609) | $ | 759,967 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | — | — | — | (1) | (15) | (15) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory awards released from restriction | — | — | (1,014) | — | — | 57 | 1,014 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 2,933 | — | — | — | — | 2,933 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock dividends | — | — | (1) | (2) | — | — | 3 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($0.01 per share) | — | — | — | (942) | — | — | — | (942) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity adjustment from foreign currency translation | — | — | — | — | 8,155 | — | — | 8,155 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of derivative instruments | — | — | — | — | (10,430) | — | — | (10,430) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity component of convertible notes, net of issuance costs and tax | — | — | 57,077 | — | — | — | — | 57,077 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums paid for capped call confirmations, net of tax | — | — | (24,513) | — | — | — | — | (24,513) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (167,684) | — | — | — | (167,684) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 95,649 | $ | 956 | $ | 341,615 | $ | 348,376 | $ | (39,792) | (1,485) | $ | (26,607) | $ | 624,548 |
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 | ||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 95,649 | $ | 956 | $ | 319,579 | $ | 489,445 | $ | (22,271 | ) | (1,555 | ) | $ | (25,773 | ) | $ | 761,936 | ||||||||||||||||
Acquisition of treasury stock | — | — | — | — | — | (7 | ) | (111 | ) | (111 | ) | ||||||||||||||||||||||
Compensatory awards released from restriction | — | — | (309 | ) | — | — | 19 | 309 | — | ||||||||||||||||||||||||
Share-based compensation | — | — | 2,512 | — | — | — | — | 2,512 | |||||||||||||||||||||||||
Stock dividends | — | — | — | (1 | ) | — | — | 1 | — | ||||||||||||||||||||||||
Cash dividends ($0.01 per share) | — | — | — | (941 | ) | — | — | — | (941 | ) | |||||||||||||||||||||||
Equity adjustment from foreign currency translation | — | — | — | — | (17,083 | ) | — | — | (17,083 | ) | |||||||||||||||||||||||
Change in fair value of derivative instruments | — | — | — | — | (5 | ) | — | — | (5 | ) | |||||||||||||||||||||||
Net Income | — | — | — | 31,048 | — | — | — | 31,048 | |||||||||||||||||||||||||
Balance at September 30, 2019 | 95,649 | $ | 956 | $ | 321,782 | $ | 519,551 | $ | (39,359 | ) | (1,543 | ) | $ | (25,574 | ) | $ | 777,356 |
Shareholders' Equity Callaway Golf Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | — | — | — | — | — | (1,168) | (21,953) | (21,953) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | (203) | — | — | 20 | 333 | 130 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory awards released from restriction | — | — | (19,143) | — | — | 1,112 | 19,143 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 4,794 | — | — | — | — | 4,794 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock dividends | — | — | 3 | (36) | — | 2 | 33 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($0.01 per share) | — | — | — | (1,891) | — | — | — | (1,891) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity adjustment from foreign currency translation | — | — | — | — | (6,781) | — | — | (6,781) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of derivative instruments, net of tax | — | — | — | — | (10,589) | — | — | (10,589) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity component of convertible notes, net of issuance costs and tax | — | — | 57,077 | — | — | — | — | 57,077 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums paid for capped call confirmations, net of tax | — | — | (24,513) | — | — | — | — | (24,513) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (138,790) | — | — | — | (138,790) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | 95,649 | $ | 956 | $ | 341,615 | $ | 348,376 | $ | (39,792) | (1,485) | $ | (26,607) | $ | 624,548 |
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 | — | — | — | — | — | (1,662 | ) | (27,505 | ) | (27,505 | ) | — | (27,505 | ) | |||||||||||||||||||||||||||
Compensatory awards released from restriction | — | — | (19,613 | ) | — | — | 872 | 19,613 | — | — | 0 | ||||||||||||||||||||||||||||||
Share-based compensation | — | — | 9,476 | — | — | — | — | 9,476 | — | 9,476 | |||||||||||||||||||||||||||||||
Stock dividends | — | 0 | (40 | ) | — | 385 | 40 | — | — | 0 | |||||||||||||||||||||||||||||||
Cash dividends ($0.01 per share) | — | — | — | (2,834 | ) | — | — | — | (2,834 | ) | — | (2,834 | ) | ||||||||||||||||||||||||||||
Equity adjustment from foreign currency translation | — | — | — | — | (18,401 | ) | — | — | (18,401 | ) | (339 | ) | (18,740 | ) | |||||||||||||||||||||||||||
Change in fair value of derivative instruments | — | — | — | — | (7,258 | ) | — | — | (7,258 | ) | — | (7,258 | ) | ||||||||||||||||||||||||||||
Acquisition of non-controlling interest | — | — | (9,322 | ) | — | — | — | — | (9,322 | ) | (9,216 | ) | (18,538 | ) | |||||||||||||||||||||||||||
Net Income | — | — | — | 108,626 | — | — | — | 108,626 | (179 | ) | 108,447 | ||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 95,649 | $ | 956 | $ | 321,782 | $ | 519,551 | $ | (39,359 | ) | (1,543 | ) | $ | (25,574 | ) | $ | 777,356 | $ | 0 | $ | 777,356 |
June 30, 2021 | December 31, 2020 | ||||||||||
Cash and cash equivalents | $ | 415,204 | $ | 366,119 | |||||||
Restricted cash | 2,469 | 0 | |||||||||
Total cash, cash equivalents and restricted cash | $ | 417,673 | $ | 366,119 |
Buildings and improvements | 10-40 years | ||||
Machinery and equipment | 5-10 years | ||||
Furniture, computer hardware and equipment | 3-5 years | ||||
Internal-use software | 3-5 years | ||||
Production molds | 2-5 years |
Balance Sheet Location | June 30, 2021 | ||||||||||
Leasing receivables, net - current | Other current assets | $ | 9,983 | ||||||||
Leasing receivables - long-term | Other assets | 36,309 | |||||||||
$ | 46,292 |
Balance Sheet Location | June 30, 2021 | December 31, 2020 | |||||||||||||||
Operating Leases | |||||||||||||||||
ROU assets, net | Operating lease ROU assets, net | $ | 1,057,225 | $ | 194,776 | ||||||||||||
Lease liabilities, short-term | Operating lease liabilities, short-term | $ | 55,492 | $ | 29,579 | ||||||||||||
Lease liabilities, long-term | Operating lease liabilities, long-term | $ | 1,174,780 | $ | 177,996 | ||||||||||||
Finance Leases | |||||||||||||||||
ROU assets, net, | Other assets | $ | 2,077 | $ | 1,003 | ||||||||||||
Lease liabilities, short-term | Accrued expenses | $ | 1,169 | $ | 252 | ||||||||||||
Lease liabilities, long-term | Long-term other | $ | 1,672 | $ | 447 | ||||||||||||
Balance Sheet Location | September 30, 2020 | December 31, 2019 | |||||||
Operating leases | |||||||||
ROU assets, net | Operating lease ROU assets, net | $ | 186,721 | $ | 160,098 | ||||
Lease liabilities, short-term | Operating lease liabilities, short-term | $ | 28,011 | $ | 26,418 | ||||
Lease liabilities, long-term | Operating lease liabilities, long-term | $ | 170,732 | $ | 137,696 | ||||
Finance Leases | |||||||||
ROU assets, net, | Other assets | $ | 930 | $ | 1,263 | ||||
Lease liabilities, short-term | Accounts payable and accrued expenses | $ | 271 | $ | 589 | ||||
Lease liabilities, long-term | Long-term other | $ | 493 | $ | 558 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||
Operating lease costs | $ | 10,458 | $ | 8,758 | $ | 31,759 | $ | 28,357 | Operating lease costs | $ | 40,915 | $ | 10,279 | $ | 61,412 | $ | 21,301 | |||||||||||||||||||||
Financing lease costs: | Financing lease costs: | |||||||||||||||||||||||||||||||||||||
Amortization of right-of-use assets | 185 | 180 | 505 | 657 | Amortization of right-of-use assets | 854 | 153 | 1,177 | 320 | |||||||||||||||||||||||||||||
Interest on lease liabilities | 9 | 14 | 31 | 69 | Interest on lease liabilities | 26 | 11 | 46 | 22 | |||||||||||||||||||||||||||||
Total financing lease costs | 194 | 194 | 536 | 726 | Total financing lease costs | 880 | 164 | 1,223 | 342 | |||||||||||||||||||||||||||||
Variable lease costs | 590 | 1,091 | 2,473 | 3,277 | Variable lease costs | 1,953 | 587 | 2,532 | 1,883 | |||||||||||||||||||||||||||||
Total lease costs | $ | 11,242 | $ | 10,043 | $ | 34,768 | $ | 32,360 | Total lease costs | $ | 43,748 | $ | 11,030 | $ | 65,167 | $ | 23,526 |
Nine Months Ended September 30, | ||||||||
Supplemental Cash Flows Information | 2020 | 2019 | ||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows from operating leases | $ | 29,122 | $ | 29,783 | ||||
Operating cash flows from finance leases | $ | 31 | $ | 69 | ||||
Financing cash flows from finance leases | $ | 530 | $ | 583 | ||||
Lease liabilities arising from new ROU assets: | ||||||||
Operating leases | $ | 54,678 | $ | 8,819 | ||||
Finance leases | $ | 131 | $ | 172 |
Six Months Ended June 30, | ||||||||||||||
Supplemental Cash Flows Information | 2021 | 2020 | ||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows from operating leases | $ | 52,513 | $ | 18,227 | ||||||||||
Operating cash flows from finance leases | $ | 311 | $ | 22 | ||||||||||
Financing cash flows from finance leases | $ | 200 | $ | 206 | ||||||||||
Lease liabilities arising from new ROU assets: | ||||||||||||||
Operating leases | $ | 33,000 | $ | 53,417 | ||||||||||
Finance leases | $ | 188 | $ | 130 |
September 30, 2020 | December 31, 2019 | ||||
Weighted average remaining lease term (years): | |||||
Operating leases | 10.0 | 10.4 | |||
Finance leases | 3.1 | 2.8 | |||
Weighted average discount rate: | |||||
Operating leases | 5.4 | % | 5.7 | % | |
Finance leases | 3.5 | % | 4.2 | % |
June 30, 2021 | December 31, 2020 | ||||||||||
Weighted average remaining lease term (years): | |||||||||||
Operating leases | 14.4 | 9.8 | |||||||||
Finance leases | 2.6 | 3.0 | |||||||||
Weighted average discount rate: | |||||||||||
Operating leases | 8.2 | % | 5.3 | % | |||||||
Finance leases | 5.4 | % | 3.9 | % |
Operating Leases | Finance Leases | ||||||||||||||||
Remainder of 2021 | $ | 67,587 | $ | 584 | |||||||||||||
2022 | 149,746 | 1,261 | |||||||||||||||
2023 | 147,019 | 771 | |||||||||||||||
2024 | 143,893 | 367 | |||||||||||||||
2025 | 142,622 | 24 | |||||||||||||||
Thereafter | 1,514,983 | 8 | |||||||||||||||
Total future lease payments | 2,165,850 | 3,015 | |||||||||||||||
Less: imputed interest | 935,578 | 174 | |||||||||||||||
Total | $ | 1,230,272 | $ | 2,841 |
Operating Leases | Finance Leases | ||||||
Remainder of 2020 | $ | 10,644 | $ | 89 | |||
2021 | 36,073 | 274 | |||||
2022 | 31,426 | 234 | |||||
2023 | 27,259 | 124 | |||||
2024 | 23,591 | 51 | |||||
Thereafter | 130,615 | 31 | |||||
Total future lease payments | 259,608 | 803 | |||||
Less: imputed interest | 60,865 | 39 | |||||
Total | $ | 198,743 | $ | 764 |
Balance Sheet Location | June 30, 2021 | ||||||||||||||||||||||
DLF contracts liabilities, short-term | Accrued expenses | $ | 516 | ||||||||||||||||||||
DLF contracts liabilities, long-term | Deemed landlord financing, long-term | $ | 263,219 |
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | ||||||||||
Amortization of DLF contracts | $ | 1,337 | $ | 1,704 | |||||||
Interest on DLF contracts | 5,638 | 7,146 | |||||||||
Total DLF contracts expenses | $ | 6,975 | $ | 8,850 |
Supplemental Cash Flows Information | Six Months Ended June 30, 2021 | |||||||||||||
Financing cash flows from DLF contracts | $ | 8,789 |
June 30, 2021 | |||||||||||
Weighted average remaining lease term (years) | 19.4 | ||||||||||
Weighted average discount rate | 8.9 | % |
Remainder of 2021 | $ | 9,845 | ||||||
2022 | 23,225 | |||||||
2023 | 23,062 | |||||||
2024 | 23,253 | |||||||
2025 | 23,581 | |||||||
Thereafter | 412,498 | |||||||
Total future lease payments | 515,464 | |||||||
Less: imputed interest | 251,729 | |||||||
Total | $ | 263,735 |
Operating and Reportable Segments | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Golf Equipment | Apparel, Gear & Other | Topgolf | Total | Golf Equipment | Apparel, Gear & Other | Total | |||||||||||||||||||||||||||||||||||||||||
Major revenue categories: | |||||||||||||||||||||||||||||||||||||||||||||||
Golf clubs | $ | 319,973 | $ | — | $ | — | $ | 319,973 | $ | 156,040 | $ | — | $ | 156,040 | |||||||||||||||||||||||||||||||||
Golf balls | 81,286 | — | — | 81,286 | 53,903 | — | 53,903 | ||||||||||||||||||||||||||||||||||||||||
Apparel | — | 91,413 | — | 91,413 | — | 36,302 | 36,302 | ||||||||||||||||||||||||||||||||||||||||
Gear, accessories & other | — | 95,516 | — | 95,516 | — | 50,751 | 50,751 | ||||||||||||||||||||||||||||||||||||||||
Venues | — | — | 303,424 | 303,424 | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other business lines | — | — | 22,029 | 22,029 | — | — | — | ||||||||||||||||||||||||||||||||||||||||
$ | 401,259 | $ | 186,929 | $ | 325,453 | $ | 913,641 | $ | 209,943 | $ | 87,053 | $ | 296,996 | ||||||||||||||||||||||||||||||||||
Operating and Reportable Segments | Operating and Reportable Segments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Golf Equipment | Apparel, Gear & Other | Total | Golf Equipment | Apparel, Gear & Other | Total | Golf Equipment | Apparel, Gear & Other | Topgolf | Total | Golf Equipment | Apparel, Gear & Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major product category: | Major product category: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Golf Clubs | $ | 209,356 | $ | 0 | $ | 209,356 | $ | 168,005 | $ | 0 | $ | 168,005 | Golf Clubs | $ | 636,326 | $ | — | $ | — | $ | 636,326 | $ | 407,264 | $ | — | $ | 407,264 | |||||||||||||||||||||||||||||||||||||||||||
Golf Balls | 57,921 | 0 | 57,921 | 42,497 | 0 | 42,497 | Golf Balls | 141,815 | — | — | 141,815 | 94,340 | — | 94,340 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Apparel | 0 | 125,609 | 125,609 | 0 | 139,998 | 139,998 | Apparel | — | 186,703 | — | 186,703 | — | 113,592 | 113,592 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gear, Accessories & Other | 0 | 82,673 | 82,673 | 0 | 75,717 | 75,717 | Gear, Accessories & Other | — | 182,328 | — | 182,328 | — | 124,076 | 124,076 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Venues | Venues | — | — | 388,594 | 388,594 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other business lines | Other business lines | — | — | 29,496 | 29,496 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 267,277 | $ | 208,282 | $ | 475,559 | $ | 210,502 | $ | 215,715 | $ | 426,217 | $ | 778,141 | $ | 369,031 | $ | 418,090 | $ | 1,565,262 | $ | 501,604 | $ | 237,668 | $ | 739,272 |
Operating and Reportable Segments | |||||||||||||||||||||||
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | ||||||||||||||||||||||
Golf Equipment | Apparel, Gear & Other | Total | Golf Equipment | Apparel, Gear & Other | Total | ||||||||||||||||||
Major product category: | |||||||||||||||||||||||
Golf Clubs | $ | 616,620 | $ | 0 | $ | 616,620 | $ | 653,531 | $ | 0 | $ | 653,531 | |||||||||||
Golf Balls | 152,261 | 0 | 152,261 | 172,943 | 0 | 172,943 | |||||||||||||||||
Apparel | 0 | 239,201 | 239,201 | 0 | 309,439 | 309,439 | |||||||||||||||||
Gear, Accessories & Other | 0 | 206,749 | 206,749 | 0 | 253,209 | 253,209 | |||||||||||||||||
$ | 768,881 | $ | 445,950 | $ | 1,214,831 | $ | 826,474 | $ | 562,648 | $ | 1,389,122 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenue by Major Geographic Region: | |||||||||||||||||||||||
United States | $ | 642,757 | $ | 171,714 | $ | 1,030,979 | $ | 389,217 | |||||||||||||||
Europe | 120,999 | 50,074 | 229,344 | 146,793 | |||||||||||||||||||
Japan | 61,861 | 24,640 | 133,747 | 101,987 | |||||||||||||||||||
Rest of World | 88,024 | 50,568 | 171,192 | 101,275 | |||||||||||||||||||
$ | 913,641 | $ | 296,996 | $ | 1,565,262 | $ | 739,272 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Major Geographic Region: | |||||||||||||||
United States | $ | 214,619 | $ | 161,631 | $ | 603,836 | $ | 658,051 | |||||||
Europe | 134,680 | 133,351 | 281,473 | 341,594 | |||||||||||
Japan | 56,530 | 64,176 | 158,517 | 193,080 | |||||||||||
Rest of World | 69,730 | 67,059 | 171,005 | 196,397 | |||||||||||
$ | 475,559 | $ | 426,217 | $ | 1,214,831 | $ | 1,389,122 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Beginning balance | $ | 60,784 | $ | 50,992 | $ | 43,986 | $ | 34,314 | |||||||||||||||
Provision | 29,000 | 26,374 | 64,890 | 62,010 | |||||||||||||||||||
Sales returns | (18,192) | (20,529) | (37,284) | (39,487) | |||||||||||||||||||
Ending balance | $ | 71,592 | $ | 56,837 | $ | 71,592 | $ | 56,837 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Beginning balance | $ | 8,944 | $ | 5,499 | $ | 5,992 | $ | 5,610 | |||||||
Adjustment due to the adoption of Topic 326 | — | — | 289 | — | |||||||||||
Provision for credit losses | (1,340 | ) | 778 | 2,292 | 920 | ||||||||||
Write-off of uncollectible amounts, net of recoveries | (258 | ) | (155 | ) | (1,227 | ) | (408 | ) | |||||||
Ending balance | $ | 7,346 | $ | 6,122 | $ | 7,346 | $ | 6,122 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Beginning balance | $ | 6,801 | $ | 6,140 | $ | 8,841 | $ | 5,992 | |||||||||||||||
Adjustment due to the adoption of Topic 326 | 0 | 0 | 0 | 289 | |||||||||||||||||||
(Recovery)/provision for credit losses | 152 | 3,619 | (226) | 3,632 | |||||||||||||||||||
Write-off of uncollectible amounts, net of recoveries | (252) | (815) | (1,914) | (969) | |||||||||||||||||||
Ending balance | $ | 6,701 | $ | 8,944 | $ | 6,701 | $ | 8,944 |
At January 4, 2019 | ||||
Assets Acquired | ||||
Cash | $ | 58,096 | ||
Accounts receivable | 26,637 | |||
Inventories | 94,504 | |||
Income tax receivable | 6,588 | |||
Other current assets | 11,483 | |||
Property and equipment | 20,930 | |||
Operating lease right-of-use assets | 120,865 | |||
Deferred tax assets | 2,930 | |||
Other assets | 23 | |||
Intangibles - trade name(1) | 239,295 | |||
Intangibles - retail partners & distributor relationships | 38,743 | |||
Goodwill(1) | 150,180 | |||
Total assets acquired | 770,274 | |||
Liabilities Assumed | ||||
Accounts Payable and accrued liabilities | 46,124 | |||
Income taxes payable, long-term | 2,416 | |||
Operating lease liabilities | 120,524 | |||
Deferred tax liabilities | 80,009 | |||
Net assets acquired | $ | 521,201 |
At March 8, 2021 | ||||||||
Assets Acquired | ||||||||
Cash | $ | 171,294 | ||||||
Accounts receivable | 11,277 | |||||||
Inventories | 13,828 | |||||||
Other current assets | 52,233 | |||||||
Property and equipment | 1,018,647 | |||||||
Operating lease right-of-use assets | 833,812 | |||||||
Investments | 28,162 | |||||||
Other assets | 33,664 | |||||||
Intangibles - trade name | 994,200 | |||||||
Intangibles - technology & customer relationships | 91,929 | |||||||
Goodwill | 1,402,101 | |||||||
Total assets acquired | 4,651,147 | |||||||
Liabilities Assumed | ||||||||
Accounts Payable and accrued liabilities | 90,140 | |||||||
Accrued employee costs | 36,992 | |||||||
Construction advances | 60,333 | |||||||
Deferred revenue | 64,359 | |||||||
Other current liabilities | 7,821 | |||||||
Long-term debt | 535,096 | |||||||
Deemed landlord financing | 179,718 | |||||||
Operating lease liabilities | 1,023,338 | |||||||
Other long-term liabilities | 23,539 | |||||||
Deferred tax liabilities | 144,181 | |||||||
Net assets acquired | $ | 2,485,630 | ||||||
Goodwill allocated to other business units | 563,220 | |||||||
Total purchase price and consideration transferred in the merger | $ | 3,048,850 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Net revenues | $ | 913,641 | $ | 342,767 | $ | 1,708,206 | $ | 1,008,901 | |||||||||||||||
Net income (loss) | $ | 59,552 | $ | (272,089) | $ | 103,767 | $ | (106,340) |
June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||
Maturity Date | Interest Rate | Unamortized Debt Issuance Costs | Carrying Value | Carrying Value | ||||||||||||||||||||||||||||
Short-Term Credit Facilities | ||||||||||||||||||||||||||||||||
U.S. Asset-Based Revolving Credit Facility | May 17, 2024 | 3.00 | % | $ | 1,391 | $ | 21,438 | $ | 22,130 | |||||||||||||||||||||||
Japan ABL Facility | January 21, 2022 | 1.28 | % | 0 | 0 | 0 | ||||||||||||||||||||||||||
$ | 1,391 | $ | 21,438 | $ | 22,130 | |||||||||||||||||||||||||||
Balance Sheet Location | ||||||||||||||||||||||||||||||||
Prepaid expenses | $ | 1,043 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||
Other long-term assets | 348 | 0 | 0 | |||||||||||||||||||||||||||||
Asset-based credit facilities | 0 | 21,438 | 22,130 | |||||||||||||||||||||||||||||
$ | 1,391 | $ | 21,438 | $ | 22,130 | |||||||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||
Maturity Date | Interest Rate | Unamortized Original Issuance Discount and Debt Issuance Costs | Carrying Value, net | Carrying Value, net | ||||||||||||||||||||||||||||
Long-Term Debt and Credit Facility | ||||||||||||||||||||||||||||||||
Japan Term Loan Facility | July 31, 2025 | 0.86 | % | $ | 0 | $ | 15,300 | $ | 18,390 | |||||||||||||||||||||||
Term Loan B Facility | January 4, 2026 | 4.59 | % | 17,171 | 422,029 | 428,150 | ||||||||||||||||||||||||||
Topgolf Term Loan | February 8, 2026 | 7.00 | % | 7,037 | 335,088 | 0 | ||||||||||||||||||||||||||
Topgolf Revolving Credit Facility | February 8, 2024 | 4.75 | % | 7,127 | 42,873 | 0 | ||||||||||||||||||||||||||
Convertible Notes | May 1, 2026 | 2.75 | % | 70,087 | 188,663 | 183,126 | ||||||||||||||||||||||||||
Equipment Notes | December 27, 2022 - March 19, 2027 | 2.36% - 3.79% | 0 | 27,655 | 31,822 | |||||||||||||||||||||||||||
Mortgage Loans | July 1, 2033 - July 29, 2036 | 9.75% - 11.31% | 0 | 46,634 | 0 | |||||||||||||||||||||||||||
Financed Tenant Improvements | February 1, 2035 | 8.00 | % | 0 | 3,727 | 3,801 | ||||||||||||||||||||||||||
$ | 101,422 | $ | 1,081,969 | $ | 665,289 | |||||||||||||||||||||||||||
Balance Sheet Location | ||||||||||||||||||||||||||||||||
Other current liabilities | $ | 3,816 | $ | 17,540 | $ | 0 | ||||||||||||||||||||||||||
Accrued expenses | 0 | 0 | 14,725 | |||||||||||||||||||||||||||||
Long-term debt | 97,606 | 1,064,429 | 650,564 | |||||||||||||||||||||||||||||
$ | 101,422 | $ | 1,081,969 | $ | 665,289 |
(in thousands) | ||||
Remainder of 2020 | $ | 4,312 | ||
2021 | 17,147 | |||
2022 | 17,437 | |||
2023 | 14,721 | |||
2024 | 13,432 | |||
Thereafter | 691,031 | |||
$ | 758,080 |
(in thousands) | ||||||||
Remainder of 2021 | $ | 10,489 | ||||||
2022 | 21,237 | |||||||
2023 | 18,581 | |||||||
2024 | 67,357 | |||||||
2025 | 14,159 | |||||||
Thereafter | 1,051,568 | |||||||
$ | 1,183,391 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Earnings per common share—basic | |||||||||||||||||||||||
Net income (loss) | $ | 91,744 | $ | (167,684) | $ | 364,205 | $ | (138,790) | |||||||||||||||
Weighted-average common shares outstanding—basic(1) | 185,225 | 94,141 | 151,541 | 94,225 | |||||||||||||||||||
Basic earnings (loss) per common share | $ | 0.50 | $ | (1.78) | $ | 2.40 | $ | (1.47) | |||||||||||||||
Earnings per common share—diluted | |||||||||||||||||||||||
Net income (loss) | $ | 91,744 | $ | (167,684) | $ | 364,205 | $ | (138,790) | |||||||||||||||
Weighted-average common shares outstanding—basic(1) | 185,225 | 94,141 | 151,541 | 94,225 | |||||||||||||||||||
Convertible notes weighted-average shares outstanding | 6,850 | 0 | 6,105 | 0 | |||||||||||||||||||
Outstanding options, restricted stock units and performance share units | 2,259 | 0 | 1,993 | 0 | |||||||||||||||||||
Weighted-average common shares outstanding—diluted | 194,334 | 94,141 | 159,639 | 94,225 | |||||||||||||||||||
Diluted earnings (loss) per common share | $ | 0.47 | $ | (1.78) | $ | 2.28 | $ | (1.47) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Earnings (loss) per common share—basic | |||||||||||||||
Net income (loss) attributable to Callaway Golf Company | $ | 52,432 | $ | 31,048 | $ | (86,358 | ) | $ | 108,626 | ||||||
Weighted-average common shares outstanding—basic | 94,171 | 94,100 | 94,207 | 94,284 | |||||||||||
Basic earnings (loss) per common share | $ | 0.56 | $ | 0.33 | $ | (0.92 | ) | $ | 1.15 | ||||||
Earnings (loss) per common share—diluted | |||||||||||||||
Net income (loss) attributable to Callaway Golf Company | $ | 52,432 | $ | 31,048 | $ | (86,358 | ) | $ | 108,626 | ||||||
Weighted-average common shares outstanding—basic | 94,171 | 94,100 | 94,207 | 94,284 | |||||||||||
Convertible notes weighted-average shares outstanding | 924 | 0 | 0 | 0 | |||||||||||
Outstanding options, restricted stock units and performance share units | 1,517 | 2,187 | 0 | 1,913 | |||||||||||
Weighted-average common shares outstanding—diluted | 96,612 | 96,287 | 94,207 | 96,197 | |||||||||||
Diluted earnings (loss) per common share | $ | 0.54 | $ | 0.32 | $ | (0.92 | ) | $ | 1.13 |
Golf Equipment | Apparel, Gear and Other | Topgolf | Total | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 27,025 | $ | 29,633 | $ | 0 | $ | 56,658 | ||||||||||||||||||||||||||||||
Acquisitions | 504,568 | 58,652 | 1,402,101 | 1,965,321 | ||||||||||||||||||||||||||||||||||
Impairments | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Foreign currency translation | (71) | 0 | 0 | (71) | ||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 531,522 | $ | 88,285 | $ | 1,402,101 | $ | 2,021,908 |
Useful Life (Years) | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Gross(1) | Accumulated Amortization | Net Book Value | Gross | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||||
Indefinite-lived: | |||||||||||||||||||||||||||||
Trade name, trademark, trade dress and other | NA | $ | 437,546 | $ | — | $ | 437,546 | $ | 453,837 | $ | — | $ | 453,837 | ||||||||||||||||
Amortizing: | |||||||||||||||||||||||||||||
Patents | 2-16 | 31,581 | 31,581 | 0 | 31,581 | 31,581 | 0 | ||||||||||||||||||||||
Customer and distributor relationships and other | 1-10 | 55,794 | 18,367 | 37,427 | 53,904 | 14,318 | 39,586 | ||||||||||||||||||||||
Total intangible assets | $ | 524,921 | $ | 49,948 | $ | 474,973 | $ | 539,322 | $ | 45,899 | $ | 493,423 |
Useful Life (Years) | June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross(1) | Accumulated Amortization | Translation Adjustment | Net Book Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indefinite-lived: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade name, trademark, trade dress and other | NA | $ | 1,441,003 | $ | — | $ | 6,695 | $ | 1,434,308 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liquor licenses | NA | 7,452 | — | 0 | 7,452 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortizing: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Patents | 2-16 | 32,041 | 31,617 | 0 | 424 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer and distributor relationships and other | 1-10 | 61,377 | 23,278 | 1,021 | 37,078 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Developed technology | 10 | 79,994 | 2,496 | 123 | 77,375 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total intangible assets | $ | 1,621,867 | $ | 57,391 | $ | 7,839 | $ | 1,556,637 |
Useful Life (Years) | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net Book Value | |||||||||||||||||||||||||||||||||||||||
Indefinite-lived: | |||||||||||||||||||||||||||||||||||||||||
Trade name, trademark, trade dress and other | NA | $ | 446,803 | $ | — | $ | 446,803 | ||||||||||||||||||||||||||||||||||
Amortizing: | |||||||||||||||||||||||||||||||||||||||||
Patents | 2-16 | 31,581 | 31,581 | 0 | |||||||||||||||||||||||||||||||||||||
Customer and distributor relationships and other | 1-10 | 57,309 | 19,773 | 37,536 | |||||||||||||||||||||||||||||||||||||
Total intangible assets | $ | 535,693 | $ | 51,354 | $ | 484,339 |
Remainder of 2020 | $ | 3,586 | |
2021 | 4,724 | ||
2022 | 4,548 | ||
2023 | 4,409 | ||
2024 | 4,409 | ||
Thereafter | 15,751 | ||
$ | 37,427 |
Remainder of 2021 | $ | 10,522 | |||
2022 | 14,348 | ||||
2023 | 12,675 | ||||
2024 | 12,532 | ||||
2025 | 12,454 | ||||
Thereafter | 52,346 | ||||
$ | 114,877 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Beginning balance | $ | 10,700 | $ | 9,791 | $ | 9,364 | $ | 9,636 | |||||||||||||||
Provision | 3,477 | 1,562 | 5,933 | 3,370 | |||||||||||||||||||
Claims paid/costs incurred | (2,644) | (1,574) | (3,764) | (3,227) | |||||||||||||||||||
Ending balance | $ | 11,533 | $ | 9,779 | $ | 11,533 | $ | 9,779 |
June 30, 2021 | December 31, 2020 | ||||||||||
(In thousands) | |||||||||||
Inventories: | |||||||||||
Raw materials | $ | 70,900 | $ | 69,932 | |||||||
Work-in-process | 1,098 | 1,010 | |||||||||
Finished goods | 258,760 | 281,602 | |||||||||
Food and beverage | 4,588 | 0 | |||||||||
$ | 335,346 | $ | 352,544 | ||||||||
Property, plant and equipment, net: | |||||||||||
Land | $ | 90,232 | $ | 7,308 | |||||||
Buildings and leasehold improvements | 798,078 | 100,653 | |||||||||
Machinery and equipment | 196,819 | 137,026 | |||||||||
Furniture, computer hardware and equipment | 176,141 | 100,558 | |||||||||
Internal-use software | 77,566 | 42,082 | |||||||||
Production molds | 7,163 | 6,809 | |||||||||
Construction-in-process | 181,044 | 13,299 | |||||||||
1,527,043 | 407,735 | ||||||||||
Accumulated depreciation | (262,157) | (261,240) | |||||||||
$ | 1,264,886 | $ | 146,495 | ||||||||
Accounts payable and accrued expenses: | |||||||||||
Accounts payable | $ | 111,255 | $ | 66,282 | |||||||
Accrued expenses | 207,149 | 136,277 | |||||||||
Accrued inventory | 108,173 | 73,650 | |||||||||
$ | 426,577 | $ | 276,209 | ||||||||
Accrued employee compensation and benefits: | |||||||||||
Accrued payroll and taxes | $ | 68,173 | $ | 17,009 | |||||||
Accrued vacation and sick pay | 22,355 | 12,887 | |||||||||
Accrued commissions | 4,899 | 1,041 | |||||||||
$ | 95,427 | $ | 30,937 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Beginning balance | $ | 9,779 | $ | 10,976 | $ | 9,636 | $ | 7,610 | |||||||
Provision | 2,137 | 1,494 | 5,507 | 6,492 | |||||||||||
Provision liability assumed from acquisition | 0 | 0 | 0 | 2,208 | |||||||||||
Claims paid/costs incurred | (2,276 | ) | (2,349 | ) | (5,503 | ) | (6,189 | ) | |||||||
Ending balance | $ | 9,640 | $ | 10,121 | $ | 9,640 | $ | 10,121 |
Tax Jurisdiction | Years No Longer Subject to Audit | |||||||
U.S. federal | 2010 and prior | |||||||
California (U.S.) | 2008 and prior | |||||||
Germany | ||||||||
2013 and prior | ||||||||
2015 and prior | ||||||||
South Korea | 2015 and prior | |||||||
United Kingdom | 2016 and prior |
Remainder of 2020 | $ | 36,774 | |
2021 | 25,229 | ||
2022 | 7,085 | ||
2023 | 1,505 | ||
2024 | 106 | ||
$ | 70,699 |
Remainder of 2021 | $ | 40,895 | |||
2022 | 33,472 | ||||
2023 | 20,969 | ||||
2024 | 753 | ||||
2025 | 125 | ||||
$ | 96,214 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Cost of sales | $ | 158 | $ | 213 | $ | 553 | $ | 715 | |||||||
Operating expenses | 3,114 | 2,300 | 7,513 | 8,763 | |||||||||||
Total cost of share-based compensation included in income, before income tax | $ | 3,272 | $ | 2,513 | $ | 8,066 | $ | 9,478 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Cost of products | $ | 321 | $ | 239 | $ | 547 | $ | 395 | |||||||||||||||
Selling, general and administrative expenses | 10,471 | 2,526 | 14,681 | 4,114 | |||||||||||||||||||
Research and development expenses | 244 | 168 | 420 | 285 | |||||||||||||||||||
Total cost of share-based compensation included in income, before income tax | 11,036 | 2,933 | 15,648 | 4,794 | |||||||||||||||||||
Income tax benefit | 2,649 | 704 | 3,756 | 1,151 | |||||||||||||||||||
Total cost of employee share-based compensation, after tax | $ | 8,387 | $ | 2,229 | $ | 11,892 | $ | 3,643 |
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
September 30, 2020 | |||||||||||||||
Foreign currency forward contracts—asset position | $ | 2,701 | $ | — | $ | 2,701 | $ | — | |||||||
Foreign currency forward contracts—liability position | (2,440 | ) | — | (2,440 | ) | — | |||||||||
Interest rate hedge agreements—liability position | (19,505 | ) | — | (19,505 | ) | — | |||||||||
$ | (19,244 | ) | $ | — | $ | (19,244 | ) | $ | — | ||||||
December 31, 2019 | |||||||||||||||
Foreign currency forward contracts—asset position | $ | 61 | $ | — | $ | 61 | $ | — | |||||||
Foreign currency forward contracts—liability position | (766 | ) | — | (766 | ) | — | |||||||||
Cross-currency debt swap agreements—asset position | 6,163 | — | 6,163 | — | |||||||||||
Cross-currency debt swap agreements—liability position | (25 | ) | — | (25 | ) | — | |||||||||
Interest rate hedge agreements—liability position | (8,894 | ) | — | (8,894 | ) | — | |||||||||
$ | (3,461 | ) | $ | — | $ | (3,461 | ) | $ | — |
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||
Foreign currency forward contracts—asset position(1) | $ | 6,552 | $ | 0 | $ | 6,552 | $ | 0 | |||||||||||||||
Foreign currency forward contracts—liability position(1) | (378) | 0 | (378) | 0 | |||||||||||||||||||
Interest rate hedge agreements—liability position(2) | (13,303) | 0 | (13,303) | 0 | |||||||||||||||||||
$ | (7,129) | $ | 0 | $ | (7,129) | $ | 0 | ||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Foreign currency forward contracts—asset position(1) | $ | 90 | $ | 0 | $ | 90 | $ | 0 | |||||||||||||||
Foreign currency forward contracts—liability position(1) | (1,553) | 0 | (1,553) | 0 | |||||||||||||||||||
Interest rate hedge agreements—liability position(2) | (17,922) | 0 | (17,922) | 0 | |||||||||||||||||||
$ | (19,385) | $ | 0 | $ | (19,385) | $ | 0 |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Term Loan Facility(1) | $ | 439,200 | $ | 441,515 | $ | 441,600 | $ | 443,243 | |||||||||||||||
Japan Term Loan Facility(2) | $ | 15,300 | $ | 15,356 | $ | 18,390 | $ | 16,083 | |||||||||||||||
Convertible Notes(3) | $ | 258,750 | $ | 526,802 | $ | 258,750 | $ | 414,191 | |||||||||||||||
U.S. Asset-Based Revolving Credit Facility(4) | $ | 21,438 | $ | 21,438 | $ | 22,130 | $ | 22,130 | |||||||||||||||
Equipment Notes(5) | $ | 27,655 | $ | 29,380 | $ | 31,822 | $ | 29,385 | |||||||||||||||
Topgolf Revolving Credit Facility(6) | $ | 42,873 | $ | 42,873 | $ | 0 | $ | 0 | |||||||||||||||
Mortgage Loans(7) | $ | 46,634 | $ | 52,739 | $ | 0 | $ | 0 | |||||||||||||||
Topgolf Term Loan(8) | $ | 335,088 | $ | 331,835 | $ | 0 | $ | 0 | |||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Term Loan Facility(1) | $ | 442,800 | $ | 443,221 | $ | 446,400 | $ | 450,864 | |||||||
2020 Japan Term Loan Facility(2) | $ | 18,966 | $ | 18,966 | $ | 0 | $ | 0 | |||||||
Convertible Notes(3) | $ | 258,750 | $ | 349,561 | $ | 0 | $ | 0 | |||||||
Primary Asset-Based Revolving Credit Facility(4) | $ | 28,813 | $ | 28,813 | $ | 114,480 | $ | 114,480 | |||||||
Japan ABL Facility(4) | $ | 1,422 | $ | 1,422 | $ | 30,100 | $ | 30,100 | |||||||
Equipment notes(5) | $ | 33,881 | $ | 33,881 | $ | 19,715 | $ | 19,715 |
Balance Sheet Location | Fair Value of Asset Derivatives | Balance Sheet Location | Fair Value of Asset Derivatives | |||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments: | Derivatives designated as cash flow hedging instruments: | |||||||||||||||||||||||||
Foreign currency forward contracts | Other current assets | $ | 158 | $ | 53 | Foreign currency forward contracts | Other current assets | $ | 1,874 | $ | 37 | |||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Foreign currency forward contracts | Other current assets | 2,543 | 8 | Foreign currency forward contracts | Other current assets | 4,678 | 53 | |||||||||||||||||||
Total asset position | Total asset position | $ | 2,701 | $ | 61 | Total asset position | $ | 6,552 | $ | 90 |
Balance Sheet Location | Fair Value of Liability Derivatives | ||||||||
September 30, 2020 | December 31, 2019 | ||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||
Foreign currency forward contracts | Accounts payable and accrued expenses | $ | 225 | $ | 24 | ||||
Cross-currency debt swap agreements | Accounts payable and accrued expenses | 0 | 25 | ||||||
Interest rate hedge agreements | Accounts payable and accrued expenses | 4,757 | 1,865 | ||||||
Other long-term liabilities | 14,748 | 7,030 | |||||||
19,730 | 8,944 | ||||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency forward contracts | Accounts payable and accrued expenses | 2,215 | 741 | ||||||
Total liability position | $ | 21,945 | $ | 9,685 |
Balance Sheet Location | Fair Value of Liability Derivatives | ||||||||||||||||
June 30, 2021 | December 31, 2020 | ||||||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||||||
Foreign currency forward contracts | Accrued AP and expenses | $ | 116 | $ | 38 | ||||||||||||
Interest rate hedge contracts | Accrued AP and expenses | 4,752 | 4,780 | ||||||||||||||
Interest rate hedge contracts | Other long-term liabilities | 8,551 | 13,142 | ||||||||||||||
13,419 | 17,960 | ||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign currency forward contracts | Accrued AP and expenses | 262 | 1,515 | ||||||||||||||
Total liability position | $ | 13,681 | $ | 19,475 |
Gain/(Loss) Recognized in Other Comprehensive Income (Effective Portion) | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Foreign currency forward contracts | $ | (126) | $ | (436) | $ | 2,065 | $ | 1,974 | ||||||||||||||||||
Cross-currency debt swap agreements | 0 | 0 | 0 | 15,081 | ||||||||||||||||||||||
Interest rate hedge agreements | (462) | (1,928) | 2,228 | (13,161) | ||||||||||||||||||||||
$ | (588) | $ | (2,364) | $ | 4,293 | $ | 3,894 |
Gain/(Loss) Recognized in Other Comprehensive Income (Effective Portion) | Gain/(Loss) Reclassified from Other Comprehensive Income into Earnings (Effective Portion) | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments | 2020 | 2019 | 2020 | 2019 | Derivatives designated as cash flow hedging instruments | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | $ | (1,070 | ) | $ | 464 | $ | 904 | $ | 1,037 | Foreign currency forward contracts | $ | 215 | $ | 638 | $ | (33) | $ | 872 | ||||||||||||||||||||||||
Cross-currency debt swap agreements | 0 | 13,133 | 15,081 | 14,297 | Cross-currency debt swap agreements | 0 | 11,463 | 0 | 18,510 | |||||||||||||||||||||||||||||||||
Interest rate hedge agreements | (100 | ) | (2,662 | ) | (13,261 | ) | (10,559 | ) | Interest rate hedge agreements | (1,206) | (1,017) | (2,391) | (1,447) | |||||||||||||||||||||||||||||
$ | (1,170 | ) | $ | 10,935 | $ | 2,724 | $ | 4,775 | $ | (991) | $ | 11,084 | $ | (2,424) | $ | 17,935 |
Gain/(Loss) Reclassified from Other Comprehensive Income into Earnings (Effective Portion) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Derivatives designated as cash flow hedging instruments | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Foreign currency forward contracts | $ | 621 | $ | 556 | $ | 1,493 | $ | 930 | ||||||||
Cross-currency debt swap agreements | 0 | 9,868 | 18,510 | 12,119 | ||||||||||||
Interest rate hedge agreements | (1,198 | ) | (150 | ) | (2,644 | ) | (194 | ) | ||||||||
$ | (577 | ) | $ | 10,274 | $ | 17,359 | $ | 12,855 |
Location of Net Gain/(Loss) Recognized in Income on Derivative Instruments | Amount of Net Gain/(Loss) Recognized in Income on Derivative Instruments | |||||||||||||||||
Derivatives not designated as hedging instruments | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||
Foreign currency forward contracts | Other expense, net | $ | (4,639 | ) | $ | 4,035 | $ | 622 | $ | 5,476 |
Location of Net Gain (Loss) Recognized in Income on Derivative Instruments | Amount of Net Gain (Loss) Recognized in Income on Derivative Instruments | |||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Foreign currency forward contracts | Other expense, net | $ | (1,610) | $ | (595) | $ | 9,030 | $ | 5,261 |
Derivative Instruments | Foreign Currency Translation | Total | ||||||||||
Accumulated other comprehensive loss, June 30, 2020, after tax | $ | (14,792 | ) | $ | (25,000 | ) | $ | (39,792 | ) | |||
Change in derivative instruments | (1,170 | ) | 0 | (1,170 | ) | |||||||
Net gains reclassified to cost of goods sold | (621 | ) | 0 | (621 | ) | |||||||
Net gains reclassified to interest expense | 1,198 | — | 1,198 | |||||||||
Income tax expense on derivative instruments | (66 | ) | 0 | (66 | ) | |||||||
Foreign currency translation adjustments | 0 | 9,128 | 9,128 | |||||||||
Accumulated other comprehensive loss, September 30, 2020, after tax | $ | (15,451 | ) | $ | (15,872 | ) | $ | (31,323 | ) |
Derivative Instruments | Foreign Currency Translation | Total | ||||||||||
Accumulated other comprehensive loss, December 31, 2019, after tax | $ | (4,203 | ) | $ | (18,219 | ) | $ | (22,422 | ) | |||
Change in derivative instruments | 2,724 | 0 | 2,724 | |||||||||
Net gains reclassified to cost of goods sold | (1,493 | ) | 0 | (1,493 | ) | |||||||
Net gains reclassified to other expense | (16,781 | ) | 0 | (16,781 | ) | |||||||
Net gains reclassified to interest expense | 915 | 0 | 915 | |||||||||
Income tax benefit on derivative instruments | 3,387 | 0 | 3,387 | |||||||||
Foreign currency translation adjustments | 0 | 2,347 | 2,347 | |||||||||
Accumulated other comprehensive loss, September 30, 2020, after tax | $ | (15,451 | ) | $ | (15,872 | ) | $ | (31,323 | ) |
Derivative Instruments | Foreign Currency Translation | Total | ||||||||||||||||||
Accumulated other comprehensive loss, March 31, 2021, after tax | $ | (8,674) | $ | (8,772) | $ | (17,446) | ||||||||||||||
Change in derivative instruments | (588) | 0 | (588) | |||||||||||||||||
Net gains reclassified to cost of goods sold | (215) | 0 | (215) | |||||||||||||||||
Net losses reclassified to interest expense | 1,206 | 0 | 1,206 | |||||||||||||||||
Income tax provision on derivative instruments | (617) | 0 | (617) | |||||||||||||||||
Foreign currency translation adjustments | 0 | 5,966 | 5,966 | |||||||||||||||||
Accumulated other comprehensive loss, June 30, 2021, after tax | $ | (8,888) | $ | (2,806) | $ | (11,694) |
Derivative Instruments | Foreign Currency Translation | Total | ||||||||||||||||||
Accumulated other comprehensive loss, December 31, 2020, after tax | $ | (14,017) | $ | 7,471 | $ | (6,546) | ||||||||||||||
Change in derivative instruments | 4,293 | 0 | 4,293 | |||||||||||||||||
Net gains reclassified to cost of products | 33 | 0 | 33 | |||||||||||||||||
Net losses reclassified to interest expense | 2,391 | 0 | 2,391 | |||||||||||||||||
Income tax provision on derivative instruments | (1,588) | 0 | (1,588) | |||||||||||||||||
Foreign currency translation adjustments | 0 | (10,277) | (10,277) | |||||||||||||||||
Accumulated other comprehensive loss, June 30, 2021, after tax | $ | (8,888) | $ | (2,806) | $ | (11,694) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||
Golf Equipment | $ | 401,259 | $ | 209,943 | $ | 778,141 | $ | 501,604 | |||||||||||||||
Apparel, Gear and Other | 186,929 | 87,053 | 369,031 | 237,668 | |||||||||||||||||||
Topgolf(1) | 325,453 | 0 | 418,090 | 0 | |||||||||||||||||||
Total net revenues | $ | 913,641 | $ | 296,996 | $ | 1,565,262 | $ | 739,272 | |||||||||||||||
Income before income taxes: | |||||||||||||||||||||||
Golf Equipment | $ | 98,089 | $ | 29,181 | $ | 183,010 | $ | 87,801 | |||||||||||||||
Apparel, Gear and Other | 15,668 | (11,711) | 36,158 | (15,510) | |||||||||||||||||||
Topgolf(1) | 24,204 | 0 | 28,158 | 0 | |||||||||||||||||||
Total segment operating income | 137,961 | 17,470 | 247,326 | 72,291 | |||||||||||||||||||
Reconciling items(2) | (62,070) | (193,085) | 148,769 | (209,861) | |||||||||||||||||||
Total income before income taxes | $ | 75,891 | $ | (175,615) | $ | 396,095 | $ | (137,570) | |||||||||||||||
Additions to long-lived assets:(3) | |||||||||||||||||||||||
Golf Equipment | $ | 9,359 | $ | 2,778 | $ | 15,784 | $ | 19,740 | |||||||||||||||
Apparel, Gear and Other | 7,507 | 3,142 | 12,574 | 13,266 | |||||||||||||||||||
Topgolf | 114,009 | 0 | 140,127 | 0 | |||||||||||||||||||
Total additions to long-lived assets | $ | 130,875 | $ | 5,920 | $ | 168,485 | $ | 33,006 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net sales: | |||||||||||||||
Golf Equipment | $ | 267,277 | $ | 210,502 | $ | 768,881 | $ | 826,474 | |||||||
Apparel, Gear and Other | 208,282 | 215,715 | 445,950 | 562,648 | |||||||||||
$ | 475,559 | $ | 426,217 | $ | 1,214,831 | $ | 1,389,122 | ||||||||
Income (loss) before income taxes: | |||||||||||||||
Golf Equipment | $ | 56,784 | $ | 23,124 | $ | 144,585 | $ | 148,782 | |||||||
Apparel, Gear and Other | 25,909 | 34,877 | 10,399 | 68,909 | |||||||||||
Reconciling items(1) | (24,901 | ) | (24,825 | ) | (234,762 | ) | (90,352 | ) | |||||||
$ | 57,792 | $ | 33,176 | $ | (79,778 | ) | $ | 127,339 | |||||||
Additions to long-lived assets:(2) | |||||||||||||||
Golf Equipment | $ | 1,616 | $ | 7,648 | $ | 21,356 | $ | 20,989 | |||||||
Apparel, Gear and Other | 3,508 | 6,783 | 16,774 | 15,465 | |||||||||||
$ | 5,124 | $ | 14,431 | $ | 38,130 | $ | 36,454 |
Three Months Ended June 30, | Growth | ||||||||||||||||||||||||||||
2021 | 2020 | Dollars | Percent | ||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Golf Equipment | $ | 401.3 | $ | 209.9 | $ | 191.4 | 91.2 | % | |||||||||||||||||||||
Apparel, Gear and Other | 186.9 | 87.1 | 99.8 | 114.6 | % | ||||||||||||||||||||||||
Topgolf | 325.4 | — | 325.4 | — | |||||||||||||||||||||||||
$ | 913.6 | $ | 297.0 | $ | 616.6 | 207.6 | % |
Three Months Ended September 30, | Growth/(Decline) | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Net sales: | ||||||||||||||
Golf Equipment | $ | 267.3 | $ | 210.5 | $ | 56.8 | 27.0 | % | ||||||
Apparel, Gear and Other | 208.3 | 215.7 | (7.4 | ) | -3.4 | % | ||||||||
$ | 475.6 | $ | 426.2 | $ | 49.4 | 11.6 | % |
Three Months Ended June 30, | Growth | Constant Currency Growth vs. 2020 | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Growth/(Decline) | Constant Currency Growth/( Decline) vs. 2019 | 2021 | 2020 | Dollars | Percent | Percent | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Dollars | Percent | Percent | |||||||||||||||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||||||||||||||||||
Net revenues: | Net revenues: | ||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 214.6 | $ | 161.6 | $ | 53.0 | 32.8 | % | 32.8% | United States | $ | 642.8 | $ | 171.7 | $ | 471.1 | 274.4 | % | 274.4% | ||||||||||||||||||||||||||
Europe | 134.7 | 133.4 | 1.3 | 1.0 | % | -3.9% | Europe | 121.0 | 50.1 | 70.9 | 141.5 | % | 118.7% | ||||||||||||||||||||||||||||||||
Japan | 56.6 | 64.2 | (7.6 | ) | -11.8 | % | -13.0% | Japan | 61.9 | 24.6 | 37.3 | 151.6 | % | 155.3% | |||||||||||||||||||||||||||||||
Rest of World | 69.7 | 67.0 | 2.7 | 4.0 | % | 2.5% | Rest of World | 87.9 | 50.6 | 37.3 | 73.7 | % | 58.5% | ||||||||||||||||||||||||||||||||
$ | 475.6 | $ | 426.2 | $ | 49.4 | 11.6 | % | 9.7% | $ | 913.6 | $ | 297.0 | $ | 616.6 | 207.6 | % | 201.5% |
Three Months Ended September 30, 2020 | ||||||||||||||||||||
As Reported | Non-Cash Intangible Amortization Expense(1) | Non-Cash Amortization of Discount on Convertible Notes(2) | Other Non-Recurring Charges(3) | Non-GAAP | ||||||||||||||||
Net income (loss) attributable to Callaway Golf Company | $ | 52.4 | $ | (1.0 | ) | $ | (1.9 | ) | $ | (2.7 | ) | $ | 58.0 | |||||||
Diluted earnings (loss) per share | $ | 0.54 | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | 0.60 | |||||||
Weighted-average shares outstanding | 96.6 | 96.6 | 96.6 | 96.6 | 96.6 |
Three Months Ended September 30, 2019 | ||||||||||||||||
As Reported | Non-Cash Intangible Amortization Expense(1) | Acquisition and Transition Costs(4) | Non-GAAP | |||||||||||||
Net income (loss) attributable to Callaway Golf Company | $ | 31.1 | $ | (0.9 | ) | $ | (2.3 | ) | $ | 34.3 | ||||||
Diluted earnings (loss) per share | $ | 0.32 | $ | (0.01 | ) | $ | (0.03 | ) | $ | 0.36 | ||||||
Weighted-average shares outstanding | 96.3 | 96.3 | 96.3 | 96.3 |
Three Months Ended September 30, | Growth | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Net sales: | ||||||||||||||
Golf Clubs | $ | 209.4 | $ | 168.0 | $ | 41.4 | 24.6 | % | ||||||
Golf Balls | 57.9 | 42.5 | 15.4 | 36.2 | % | |||||||||
$ | 267.3 | $ | 210.5 | $ | 56.8 | 27.0 | % |
Three Months Ended September 30, | Growth/(Decline) | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Net sales: | ||||||||||||||
Apparel | $ | 125.6 | $ | 140.0 | $ | (14.4 | ) | -10.3 | % | |||||
Gear, Accessories, & Other | 82.7 | 75.7 | 7.0 | 9.2 | % | |||||||||
$ | 208.3 | $ | 215.7 | $ | (7.4 | ) | -3.4 | % |
Three Months Ended September 30, | Growth/(Decline) | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Income before income taxes: | ||||||||||||||
Golf Equipment | $ | 56.8 | $ | 23.1 | $ | 33.7 | 145.9 | % | ||||||
Apparel, Gear and Other | 25.9 | 34.9 | (9.0 | ) | -25.8 | % | ||||||||
Reconciling items(1) | (24.9 | ) | (24.8 | ) | (0.1 | ) | 0.4 | % | ||||||
$ | 57.8 | $ | 33.2 | $ | 24.6 | 74.1 | % |
Nine Months Ended September 30, | Decline | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Net sales: | ||||||||||||||
Golf Equipment | $ | 768.9 | $ | 826.5 | $ | (57.6 | ) | -7.0 | % | |||||
Apparel, Gear and Other | 445.9 | 562.6 | (116.7 | ) | -20.7 | % | ||||||||
$ | 1,214.8 | $ | 1,389.1 | $ | (174.3 | ) | -12.5 | % |
Nine Months Ended September 30, | Decline | Constant Currency Decline vs. 2019 | ||||||||||||||
2020 | 2019 | Dollars | Percent | Percent | ||||||||||||
Net sales: | ||||||||||||||||
United States | $ | 603.8 | $ | 658.1 | $ | (54.3 | ) | -8.3 | % | -8.3% | ||||||
Europe | 281.5 | 341.6 | (60.1 | ) | -17.6 | % | -18.5% | |||||||||
Japan | 158.5 | 193.1 | (34.6 | ) | -17.9 | % | -19.0% | |||||||||
Rest of World | 171.0 | 196.3 | (25.3 | ) | -12.9 | % | -11.4% | |||||||||
$ | 1,214.8 | $ | 1,389.1 | $ | (174.3 | ) | -12.5 | % | -12.7% |
Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||
GAAP | Non-Cash Acquisition Amortization(1) | Non-Cash Amortization of Discount on Convertible Notes(2) | Acquisition and Other Non-Recurring Items(3) | Tax Valuation Allowance(4) | Non-GAAP | ||||||||||||||||||||||||||||||
Net income (loss) | $ | 91.7 | $ | (6.8) | $ | (2.0) | $ | (2.7) | $ | 32.7 | $ | 70.5 | |||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.47 | $ | (0.03) | $ | (0.01) | $ | (0.02) | $ | 0.17 | $ | 0.36 | |||||||||||||||||||||||
Weighted-average shares outstanding | 194.3 | 194.3 | 194.3 | 194.3 | 194.3 | 194.3 |
Nine Months Ended September 30, 2020 | |||||||||||||||||||
GAAP | Non-Cash Acquisition Amortization and Impairment Charges(1) | Non-Cash Amortization of Discount on Convertible Notes(2) | Other Non-Recurring Charges(3) | Non-GAAP(4) | |||||||||||||||
Net income (loss) attributable to Callaway Golf Company | $ | (86.4 | ) | $ | (169.1 | ) | $ | (3.0 | ) | $ | (8.5 | ) | $ | 94.2 | |||||
Diluted earnings (loss) per share | $ | (0.92 | ) | $ | (1.80 | ) | $ | (0.03 | ) | $ | (0.09 | ) | $ | 0.98 | |||||
Weighted-average shares outstanding | 94.2 | 94.2 | 94.2 | 94.2 | 96.1 |
Nine Months Ended September 30, 2019 | |||||||||||||||
GAAP | Non-Cash Purchase Accounting Adjustments and Acquisition Amortization(1) | Acquisition and Transition Expenses(5) | Non-GAAP | ||||||||||||
Net income (loss) attributable to Callaway Golf Company | $ | 108.6 | $ | (11.0 | ) | $ | (10.2 | ) | $ | 129.8 | |||||
Diluted earnings (loss) per share | $ | 1.13 | $ | (0.11 | ) | $ | (0.11 | ) | $ | 1.35 | |||||
Weighted-average shares outstanding | 96.2 | 96.2 | 96.2 | 96.2 |
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||
GAAP | Non-Cash Acquisition Amortization and Impairment Charges(1) | Non-Cash Amortization of Discount on Convertible Notes(2) | Other Non-Recurring Items(3) | Non-GAAP | |||||||||||||||||||||||||
Net income (loss) | $ | (167.7) | $ | (167.3) | $ | (1.2) | $ | (4.5) | $ | 5.3 | |||||||||||||||||||
Diluted earnings (loss) per share | $ | (1.78) | $ | (1.78) | $ | (0.01) | $ | (0.05) | $ | 0.06 | |||||||||||||||||||
Weighted-average shares outstanding | 94.1 | 94.1 | 94.1 | 94.1 | 94.1 |
Three Months Ended June 30, | Growth | ||||||||||||||||||||||||||||
2021 | 2020 | Dollars | Percent | ||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Golf Clubs | $ | 320.0 | $ | 156.0 | $ | 164.0 | 105.1 | % | |||||||||||||||||||||
Golf Balls | 81.3 | 53.9 | 27.4 | 50.8 | % | ||||||||||||||||||||||||
$ | 401.3 | $ | 209.9 | $ | 191.4 | 91.2 | % |
Nine Months Ended September 30, | Decline | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Net sales: | ||||||||||||||
Golf Clubs | $ | 616.6 | $ | 653.6 | $ | (37.0 | ) | -5.7 | % | |||||
Golf Balls | 152.3 | 172.9 | (20.6 | ) | -11.9 | % | ||||||||
$ | 768.9 | $ | 826.5 | $ | (57.6 | ) | -7.0 | % |
Three Months Ended June 30, | Growth | ||||||||||||||||||||||||||||
2021 | 2020 | Dollars | Percent | ||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Apparel | $ | 91.4 | $ | 36.3 | $ | 55.1 | 151.8 | % | |||||||||||||||||||||
Gear, Accessories, & Other | 95.5 | 50.8 | 44.7 | 88.0 | % | ||||||||||||||||||||||||
$ | 186.9 | $ | 87.1 | $ | 99.8 | 114.6 | % |
Three months ended June 30, 2021 | ||||||||||||||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||||||||||
Venues | $ | 303.4 | ||||||||||||||||||||||||||||||
Other business lines | 22.0 | |||||||||||||||||||||||||||||||
$ | 325.4 |
Three Months Ended June 30, | Growth | Non-GAAP Constant Currency Growth vs. 2020(1) | |||||||||||||||||||||||||||
2021 | 2020 | Dollars | Percent | Percent | |||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Golf Equipment | $ | 401.3 | $ | 209.9 | $ | 191.4 | 91.2 | % | 86.1% | ||||||||||||||||||||
Apparel, Gear and Other | 186.9 | 87.1 | 99.8 | 114.6 | % | 108.4% | |||||||||||||||||||||||
Topgolf | 325.4 | — | 325.4 | — | — | ||||||||||||||||||||||||
Total net revenues | $ | 913.6 | $ | 297.0 | $ | 616.6 | 207.6 | % | 201.5% | ||||||||||||||||||||
Segment operating income: | |||||||||||||||||||||||||||||
Golf Equipment | $ | 98.1 | $ | 29.2 | $ | 68.9 | 236.0 | % | |||||||||||||||||||||
Apparel, Gear and Other | 15.7 | (11.7) | 27.4 | 234.2 | % | ||||||||||||||||||||||||
Topgolf | 24.2 | — | 24.2 | — | |||||||||||||||||||||||||
Total segment operating income | 138.0 | 17.5 | 120.5 | 688.6 | % | ||||||||||||||||||||||||
Corporate G&A and other(2) | 30.7 | 194.9 | (164.2) | (84.2) | % | ||||||||||||||||||||||||
Total operating income | 107.3 | (177.4) | 284.7 | (160.5) | % | ||||||||||||||||||||||||
Interest expense, net | (28.9) | (12.2) | (16.7) | 136.9 | % | ||||||||||||||||||||||||
Other income, net | (2.5) | 14.0 | (16.5) | (117.9) | % | ||||||||||||||||||||||||
Total income before income taxes | $ | 75.9 | $ | (175.6) | $ | 251.5 | (143.2) | % |
Six Months Ended June 30, | Growth | ||||||||||||||||||||||||||||
2021 | 2020 | Dollars | Percent | ||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Golf Equipment | $ | 778.1 | $ | 501.6 | $ | 276.5 | 55.1 | % | |||||||||||||||||||||
Apparel, Gear and Other | 369.0 | 237.7 | 131.3 | 55.2 | % | ||||||||||||||||||||||||
Topgolf | 418.1 | — | 418.1 | — | |||||||||||||||||||||||||
$ | 1,565.2 | $ | 739.3 | $ | 825.9 | 111.7 | % |
Six Months Ended June 30, | Growth | Non-GAAP Constant Currency Growth vs. 2020 | |||||||||||||||||||||||||||
2021 | 2020 | Dollars | Percent | Percent | |||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
United States | $ | 1,031.0 | $ | 389.2 | $ | 641.8 | 164.9 | % | 164.9% | ||||||||||||||||||||
Europe | 229.3 | 146.8 | 82.5 | 56.2 | % | 42.5% | |||||||||||||||||||||||
Japan | 133.7 | 102.0 | 31.7 | 31.1 | % | 30.5% | |||||||||||||||||||||||
Rest of World | 171.2 | 101.3 | 69.9 | 69.0 | % | 55.2% | |||||||||||||||||||||||
$ | 1,565.2 | $ | 739.3 | $ | 825.9 | 111.7 | % | 107.0% |
Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Non-Cash Acquisition Amortization(1) | Non-Cash Amortization of Discount on Convertible Notes(2) | Acquisition and Other Non-Recurring Items(3) | Tax Valuation Allowance(4) | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 364.2 | $ | (9.7) | $ | (3.9) | $ | 236.9 | $ | (6.2) | $ | 147.1 | |||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $2.28 | $(0.06) | $(0.02) | $1.48 | $(0.04) | $0.92 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares outstanding | 159.6 | 159.6 | 159.6 | 159.6 | 159.6 | 159.6 |
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Non-Cash Acquisition Amortization and Impairment Charges(1) | Non-Cash Amortization of Discount on Convertible Notes(2) | Other Non-Recurring Items(3) | Non-GAAP | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (138.8) | $ | (168.2) | $ | (1.2) | $ | (5.7) | $ | 36.3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | (1.47) | $ | (1.78) | $ | (0.01) | $ | (0.06) | $ | 0.38 | |||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares outstanding | 94.2 | 94.2 | 94.2 | 94.2 | 94.2 |
Six Months Ended June 30, | Growth | ||||||||||||||||||||||||||||
2021 | 2020 | Dollars | Percent | ||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Golf Clubs | $ | 636.3 | $ | 407.3 | $ | 229.0 | 56.2 | % | |||||||||||||||||||||
Golf Balls | 141.8 | 94.3 | 47.5 | 50.4 | % | ||||||||||||||||||||||||
$ | 778.1 | $ | 501.6 | $ | 276.5 | 55.1 | % |
Six Months Ended June 30, | Growth | ||||||||||||||||||||||||||||
2021 | 2020 | Dollars | Percent | ||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Apparel | $ | 186.7 | $ | 113.6 | $ | 73.1 | 64.3 | % | |||||||||||||||||||||
Gear, Accessories, & Other | 182.3 | 124.1 | 58.2 | 46.9 | % | ||||||||||||||||||||||||
$ | 369.0 | $ | 237.7 | $ | 131.3 | 55.2 | % |
Nine Months Ended September 30, | Decline | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Net sales: | ||||||||||||||
Apparel | $ | 239.2 | $ | 309.4 | $ | (70.2 | ) | -22.7 | % | |||||
Gear, Accessories, & Other | 206.7 | 253.2 | (46.5 | ) | -18.4 | % | ||||||||
$ | 445.9 | $ | 562.6 | $ | (116.7 | ) | -20.7 | % |
Six months ended June 30, 2021 | ||||||||
Net revenues: | ||||||||
Venues | $ | 388.6 | ||||||
Other business lines | 29.5 | |||||||
$ | 418.1 |
Nine Months Ended September 30, | Decline | |||||||||||||
2020 | 2019 | Dollars | Percent | |||||||||||
Income before income taxes: | ||||||||||||||
Golf Equipment | $ | 144.6 | $ | 148.8 | $ | (4.2 | ) | -2.8 | % | |||||
Apparel, Gear and Other | 10.4 | 68.9 | (58.5 | ) | -84.9 | % | ||||||||
Reconciling items(1) | (234.8 | ) | (90.4 | ) | (144.4 | ) | 159.7 | % | ||||||
$ | (79.8 | ) | $ | 127.3 | $ | (207.1 | ) | -162.7 | % |
Six Months Ended June 30, | Growth | Non-GAAP Constant Currency Growth vs. 2020(1) | |||||||||||||||||||||||||||
2021 | 2020 | Dollars | Percent | Percent | |||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Golf Equipment | $ | 778.1 | $ | 501.6 | $ | 276.5 | 55.1 | % | 51.3% | ||||||||||||||||||||
Apparel, Gear and Other | 369.0 | 237.7 | 131.3 | 55.2 | % | 49.7% | |||||||||||||||||||||||
Topgolf | 418.1 | — | 418.1 | — | — | ||||||||||||||||||||||||
Total net revenues | $ | 1,565.2 | $ | 739.3 | $ | 825.9 | 111.7 | % | 107.0% | ||||||||||||||||||||
Segment operating income (loss): | |||||||||||||||||||||||||||||
Golf Equipment | $ | 183.0 | $ | 87.8 | $ | 95.2 | 108.4 | % | |||||||||||||||||||||
Apparel, Gear and Other | 36.2 | (15.5) | 51.7 | 333.5 | % | ||||||||||||||||||||||||
Topgolf | 28.2 | — | 28.2 | — | |||||||||||||||||||||||||
Total segment operating income | 247.4 | 72.3 | 175.1 | 242.2 | % | ||||||||||||||||||||||||
Corporate G&A and other(2) | 64.0 | 209.1 | (145.1) | (69.4) | % | ||||||||||||||||||||||||
Total operating income (loss) | 183.4 | (136.8) | 320.2 | (234.1) | % | ||||||||||||||||||||||||
Gain on Topgolf investment(3) | 252.5 | — | 252.5 | — | |||||||||||||||||||||||||
Interest expense, net | (46.3) | (21.3) | (25.0) | 117.4 | % | ||||||||||||||||||||||||
Other income, net | 6.5 | 20.5 | (14.0) | (68.3) | % | ||||||||||||||||||||||||
Total income (loss) before income taxes | $ | 396.1 | $ | (137.6) | $ | 533.7 | (387.9) | % |
(1)Calculated by applying 2020 exchange rates to 2021 reported sales in regions outside the United States. (2)Amounts for the first half of 2021 and 2020 include corporate general and administrative expenses not utilized by management in determining segment profitability as well as non-cash amortization expense of intangible assets in connection with the acquisitions of OGIO, TravisMathew and Jack Wolfskin. In addition, the amount for 2021 includes (i) $18.7 million of transaction, transition and other non-recurring costs associated with the merger with Topgolf completed on March 8, 2021, (ii) $8.4 million of non-cash amortization expense for intangible assets acquired in connection with the merger with Topgolf, combined with depreciation expense |
Payments Due By Period | |||||||||||||||||||
Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||||||
(in millions) | |||||||||||||||||||
Term Loan Facility(1) | $ | 442.8 | $ | 4.8 | $ | 9.6 | $ | 9.6 | $ | 418.8 | |||||||||
Interest on Term Loan Facility | 112.4 | 21.7 | 43.1 | 42.2 | 5.4 | ||||||||||||||
2020 Japan Term Loan Facility(2) | 19.0 | 3.8 | 7.6 | 7.6 | — | ||||||||||||||
Interest on Japan Term Loan Facility | 0.4 | 0.1 | 0.2 | 0.1 | — | ||||||||||||||
Convertible Notes(3) | 258.8 | — | — | — | 258.8 | ||||||||||||||
Equipment Notes(4) | 33.9 | 8.3 | 15.4 | 7.9 | 2.3 | ||||||||||||||
Interest on Equipment Notes | 2.3 | 0.9 | 1.0 | 0.3 | 0.1 | ||||||||||||||
ABL Facility | 28.8 | 28.8 | — | — | — | ||||||||||||||
Japan ABL Facility | 1.4 | 1.4 | — | — | — | ||||||||||||||
Finance leases, including imputed interest(5) | 0.8 | 0.1 | 0.5 | 0.2 | — | ||||||||||||||
Operating leases, including imputed interest(6) | 259.6 | 10.6 | 67.5 | 50.9 | 130.6 | ||||||||||||||
Unconditional purchase obligations(7) | 70.7 | 36.8 | 32.3 | 1.6 | — | ||||||||||||||
Uncertain tax contingencies(8) | 7.7 | 0.5 | 1.1 | 1.0 | 5.1 | ||||||||||||||
Total | $ | 1,238.6 | $ | 117.8 | $ | 178.3 | $ | 121.4 | $ | 821.1 |
Payments Due By Period | |||||||||||||||||||||||||||||
Total | Remainder of 2021 | 2022 - 2023 | 2024 - 2025 | Thereafter | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Japan Term Loan Facility (1) | $ | 15.3 | $ | 1.8 | $ | 7.2 | $ | 6.3 | $ | — | |||||||||||||||||||
Interest on Japan Term Loan Facility | 0.3 | 0.1 | 0.1 | 0.1 | — | ||||||||||||||||||||||||
Term Loan B Facility (2) | 439.2 | 2.4 | 9.6 | 9.6 | 417.6 | ||||||||||||||||||||||||
Interest on Term Loan Facility | 96.1 | 10.9 | 43.0 | 36.8 | 5.4 | ||||||||||||||||||||||||
Topgolf Term Loan (3) | 342.1 | 1.8 | 7.0 | 7.0 | 326.3 | ||||||||||||||||||||||||
Topgolf Revolving Credit Facility (3) | 50.0 | — | — | 50.0 | — | ||||||||||||||||||||||||
Convertible Notes (4) | 258.8 | — | — | — | 258.8 | ||||||||||||||||||||||||
Equipment Notes (5) | 27.7 | 4.2 | 14.7 | 6.9 | 1.9 | ||||||||||||||||||||||||
Interest on Equipment Notes | 1.5 | 0.4 | 0.9 | 0.2 | — | ||||||||||||||||||||||||
Mortgage Loans (6) | 46.6 | 0.2 | 1.1 | 1.3 | 44.0 | ||||||||||||||||||||||||
Financed Tenant Improvements | 3.7 | 0.1 | 0.4 | 0.4 | 2.8 | ||||||||||||||||||||||||
ABL Facility (7) | 21.4 | 21.4 | — | — | — | ||||||||||||||||||||||||
Finance leases, including imputed interest (8) | 3.0 | 0.6 | 2.0 | 0.4 | — | ||||||||||||||||||||||||
Operating leases, including imputed interest (9) | 2,165.8 | 67.6 | 296.7 | 286.5 | 1,515.0 | ||||||||||||||||||||||||
Deemed landlord financing leases (10) | 515.5 | 9.8 | 46.3 | 46.9 | 412.5 | ||||||||||||||||||||||||
Minimum lease payments for leases signed but not yet commenced (11) | 896.8 | 24.0 | 92.6 | 93.2 | 687.0 | ||||||||||||||||||||||||
Capital commitments (12) | 178.0 | 77.0 | 101.0 | — | — | ||||||||||||||||||||||||
Unconditional purchase obligations (13) | 96.2 | 40.9 | 54.4 | 0.9 | — | ||||||||||||||||||||||||
Uncertain tax contingencies (14) | 4.4 | 0.7 | 1.4 | 1.1 | 1.2 | ||||||||||||||||||||||||
Total | $ | 5,162.4 | $ | 263.9 | $ | 678.4 | $ | 547.6 | $ | 3,672.5 |
(9)The Company leases certain manufacturing facilities, distribution centers, warehouses, office facilities, vehicles and office equipment under operating leases. The amounts presented in this line item represent commitments for minimum lease payments under non-cancelable operating leases. At June 30, 2021, short-term and long-term operating lease liabilities of $55.5 million and $1,174.8 million, respectively, were recorded in the accompanying consolidated condensed balance sheets. For further discussion, see Note 3 "Leases" to the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q. (10)In connection with the merger with Topgolf on March 8, 2021, the Company assumed certain deemed landlord financed leases in connection with the construction of Topgolf venue facilities. At June 30, 2021, the short-term and long-term obligations under these leases were $0.5 million and $263.2 million, respectively. For further discussion, see Note 3 "Leases" to the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q. (11)Amount represents the future minimum lease payments under lease agreements related to future Topgolf facilities that have not yet commenced as of June 30, 2021. For further discussion, see Note 3 "Leases" to the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q. (12)Amount represents capital expenditure commitments under lease agreements for Topgolf venues under construction that have been signed as of June 30, 2021. (13)During the normal course of its business, the Company enters into agreements to purchase goods and services, including purchase commitments for production materials, endorsement agreements with professional golfers and other endorsers, employment and consulting agreements, and intellectual property licensing agreements pursuant to which the Company is required to pay royalty fees. It is not possible to determine the amounts the Company will ultimately be required to pay under these agreements as they are subject to many variables including performance-based bonuses, severance arrangements, the Company’s sales levels, and reductions in payment obligations if designated minimum performance criteria are not achieved. The amounts listed approximate minimum purchase obligations, base compensation, and guaranteed minimum royalty payments the Company is obligated to pay under these agreements. The actual amounts paid under some of these agreements may be higher or lower than the amounts included. In the aggregate, the actual amount paid under these obligations is likely to be higher than the amounts listed as a result of the variable nature of these obligations. In addition, the Company also enters into unconditional purchase obligations with various vendors and suppliers of goods and services in the normal course of operations through purchase orders or other documentation or that are undocumented except for an invoice. Such unconditional purchase obligations are generally outstanding for periods less than a year and are settled by cash payments upon delivery of goods and services and are not reflected in this line item. (14)Amountrepresents the current and non-current portions of uncertain income tax positions as recorded on the Company's consolidated condensed balance sheets as of June 30, 2021. Amounts exclude uncertain income tax positions that the Company would be able to offset against deferred taxes. For further discussion, see Note 13 “Income Taxes” to the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q. |
Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Number of Shares Purchased | Weighted Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Maximum Dollar Value that May Yet Be Purchased Under the Program | ||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||||||||
April 1, 2021-April 30, 2021 | 6 | $ | 27.52 | — | $ | 77,379 | |||||||||||||||||||||||||||||||||||||||||
May 1, 2021-May 31, 2021 | — | $ | — | — | $ | 77,379 | |||||||||||||||||||||||||||||||||||||||||
June 1, 2021-June 30, 2021 | 3 | $ | 35.23 | — | $ | 77,369 | |||||||||||||||||||||||||||||||||||||||||
Total | 9 | $ | 30.06 | — | $ | 77,369 |
Three Months Ended September 30, 2020 | |||||||||||||||||||||
Total Number of Shares Purchased | Weighted Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program(1) | Maximum Dollar Value that May Yet Be Purchased Under the Program | ||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||
July 1, 2020-July 31, 2020 | — | $ | — | — | $ | 77,369 | |||||||||||||||
August 1, 2020-August 31, 2020 | 10 | $ | 18.71 | — | $ | 77,369 | |||||||||||||||
September 1, 2020-September 30, 2020 | — | $ | — | — | $ | 77,369 | |||||||||||||||
Total | 10 | $ | 18.71 | — | $ | 77,369 |
3.1 | |||||||||
3.2 | |||||||||
3.3 | |||||||||
10.1 | |||||||||
31.2 | |||||||||
32.1 | |||||||||
101.1 | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||
101.2 | XBRL Taxonomy Extension Schema Document † | ||||||||
101.3 | XBRL Taxonomy Extension Calculation Linkbase Document † | ||||||||
101.4 | XBRL Taxonomy Extension Definition Linkbase Document † | ||||||||
101.5 | XBRL Taxonomy Extension Label Linkbase Document † | ||||||||
101.6 | XBRL Taxonomy Extension Presentation Linkbase Document † | ||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) † |
CALLAWAY GOLF COMPANY | |||||
By: | |||||
/s/ Jennifer Thomas | |||||
Jennifer Thomas | |||||
Vice President and Chief Accounting Officer |