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Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2012 shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Trading Symbol	ELY
Entity Registrant Name	CALLAWAY GOLF CO
Entity Central Index Key	0000837465
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	65,102,277

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 27,986	$ 43,023
Accounts receivable, net	254,903	115,673
Inventories	215,794	233,070
Deferred taxes, net	3,955	4,029
Income taxes receivable	1,753	3,654
Other current assets	18,663	19,880
Total current assets	523,054	419,329
Property, plant and equipment, net	114,323	117,147
Intangible assets, net	99,998	121,935
Goodwill	29,128	29,203
Deferred taxes, net	1,392	1,386
Other assets	37,230	38,112
Total assets	805,125	727,112
Current liabilities:
Accounts payable and accrued expenses	113,762	129,193
Accrued employee compensation and benefits	23,522	23,785
Accrued warranty expense	7,863	8,140
Deferred taxes	4,108	4,108
Income tax liability	1,129	2,558
Credit facility	70,150
Total current liabilities	220,534	167,784
Long-term liabilities:
Income taxes payable	7,401	8,115
Deferred taxes, net	29,627	31,429
Long-term other	6,519	6,970
Commitments and contingencies (Note 13)
Shareholders' equity:
Preferred stock, $.01 par value, 3,000,000 shares authorized, 1,400,000 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively	14	14
Common stock, $.01 par value, 240,000,000 shares authorized, 66,397,199 and 66,340,695 shares issued at June 30, 2012 and December 31, 2011, respectively	664	663
Additional paid-in capital	263,764	265,067
Retained earnings	275,942	247,941
Accumulated other comprehensive income	13,003	14,071
Less: Common Stock held in treasury, at cost, 1,294,922 shares and 1,453,819 shares at June 30, 2012 and December 31, 2011, respectively	(15,252)	(17,800)
Total Callaway Golf Company shareholders' equity	538,135	509,956
Non-controlling interest in consolidated entity (Note 10)	2,909	2,858
Total shareholders' equity	541,044	512,814
Total liabilities and shareholders' equity	$ 805,125	$ 727,112

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2012	Dec. 31, 2011
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, shares issued	1,400,000	1,400,000
Preferred stock, shares outstanding	1,400,000	1,400,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	240,000,000	240,000,000
Common stock, shares issued	66,397,199	66,340,695
Less: Common Stock held in treasury, shares	1,294,922	1,453,819

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net sales	$ 281,123	$ 273,814	$ 566,221	$ 559,413
Cost of sales	170,470	171,152	331,197	333,070
Gross profit	110,653	102,662	235,024	226,343
Operating expenses:
Selling expense	75,711	74,196	152,549	149,415
General and administrative expense	18,446	30,124	30,680	46,411
Research and development expense	6,930	8,498	14,403	17,695
Total operating expenses	101,087	112,818	197,632	213,521
Income (loss) from operations	9,566	(10,156)	37,392	12,822
Other expense, net	(4,571)	(3,427)	(887)	(4,807)
Income (loss) before income taxes	4,995	(13,583)	36,505	8,015
Provision for income taxes	2,196	45,483	1,904	54,263
Net income (loss)	2,799	(59,066)	34,601	(46,248)
Dividends on convertible preferred stock	2,625	2,625	5,250	5,250
Net income (loss) allocable to common shareholders	$ 174	$ (61,691)	$ 29,351	$ (51,498)
Earnings (loss) per common share:
Basic	$ 0.00	$ (0.96)	$ 0.45	$ (0.80)
Diluted	$ 0.00	$ (0.96)	$ 0.41	$ (0.80)
Weighted-average common shares outstanding:
Basic	65,060	64,425	65,021	64,365
Diluted	65,112	64,425	84,950	64,365

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net income (loss)	$ 2,799	$ (59,066)	$ 34,601	$ (46,248)
Other comprehensive income (loss):
Foreign currency translation adjustments	(1,361)	2,980	(1,068)	5,329
Other comprehensive income (loss):	(1,361)	2,980	(1,068)	5,329
Comprehensive income (loss)	$ 1,438	$ (56,086)	$ 33,533	$ (40,919)

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net income (loss)	$ 34,601	$ (46,248)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	18,234	19,191
Impairment charge		5,413
Deferred taxes	(1,746)	51,397
Non-cash share-based compensation	1,896	7,581
Gain and deferred gain amortization on disposal of long-lived assets	(975)	(6,752)
Gain on sale of intangible assets	(6,602)
Changes in assets and liabilities:
Accounts receivable, net	(141,100)	(107,442)
Inventories	16,769	56,606
Other assets	690	5,095
Accounts payable and accrued expenses	(11,941)	(28,345)
Accrued employee compensation and benefits	(964)	9,095
Accrued warranty expense	(277)	3,555
Income taxes receivable/payable	522	3,051
Other liabilities	(387)	2,370
Net cash used in operating activities	(91,280)	(25,433)
Cash flows from investing activities:
Capital expenditures	(14,115)	(14,089)
Proceeds from sale of property, plant and equipment	70	18,172
Proceeds from sale of intangible assets	26,861
Net cash provided by investing activities	12,816	4,083
Cash flows from financing activities:
Issuance of common stock		1,160
Dividends paid	(6,554)	(6,542)
Proceeds from credit facilities, net	70,150	37,142
Other financing activities	69	129
Net cash provided by financing activities	63,665	31,889
Effect of exchange rate changes on cash and cash equivalents	(238)	950
Net (decrease) increase in cash and cash equivalents	(15,037)	11,489
Cash and cash equivalents at beginning of year	43,023	55,043
Cash and cash equivalents at end of period	27,986	66,532
Supplemental disclosures:
Cash (paid) received for income taxes, net	(2,983)	37
Cash paid for interest and fees	(2,355)	(216)
Dividends payable	438	438
Issuance of treasury stock from the settlement of compensatory stock awards	3,244	2,920
Acquisition of treasury stock for minimum statutory withholding taxes	(696)	(1,512)
Purchases of capital expenditures unpaid at period end	$ 727	$ 1,609

CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY - 6 months ended Jun. 30, 2012 - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Treasury Stock	Non-controlling Interest
Beginning Balance (in shares) at Dec. 31, 2011		1,400	66,341				(1,454)
Beginning Balance at Dec. 31, 2011	$ 512,814	$ 14	$ 663	$ 265,067	$ 247,941	$ 14,071	$ (17,800)	$ 2,858
Acquisition of treasury stock for minimum statutory withholding taxes (in shares)							(108)
Acquisition of treasury stock for minimum statutory withholding taxes	(696)						$ (696)
Compensatory stock and stock options (in shares)			55				267
Compensatory stock and stock options	1,896		$ 1	(1,349)			$ 3,244
Stock dividends (in shares)			1
Stock dividends				46	(46)
Cash dividends	(6,554)				(6,554)
Equity adjustment from foreign currency translation	(1,068)					(1,068)
Net income	34,652				34,601			51
Ending Balance (in shares) at Jun. 30, 2012		1,400	66,397				(1,295)
Ending Balance at Jun. 30, 2012	$ 541,044	$ 14	$ 664	$ 263,764	$ 275,942	$ 13,003	$ (15,252)	$ 2,909

Basis of Presentation

6 Months Ended

Jun. 30, 2012

Basis of Presentation

1. Basis of Presentation

The accompanying unaudited consolidated condensed financial statements have been prepared by Callaway Golf Company (the “Company” or “Callaway Golf”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 filed with the SEC. These consolidated condensed financial statements, in the opinion of management, include all adjustments necessary for the fair presentation of the financial position, results of operations and cash flows for the periods and dates presented. Interim operating results are not necessarily indicative of operating results for the full year.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions.

Recent Accounting Standards

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” This ASU requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU No. 2011-11 will be applied retrospectively and is effective for annual and interim reporting periods beginning on or after January 1, 2013. The adoption of this ASU is not expected to have a material impact on the Company’s disclosures to the consolidated financial statements.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

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+ Details

Restructuring Initiatives

6 Months Ended

Jun. 30, 2012

Restructuring Initiatives

2. Restructuring Initiatives

Global Operations Strategy

In 2010, the Company began the implementation of its Global Operations Strategy Initiatives (“GOS Initiatives”), which targeted the restructuring and relocation of the Company’s manufacturing and distribution operations. This restructuring, which is designed to add speed and flexibility to customer service demands, optimize efficiencies, and facilitate long-term gross margin improvements, includes the reorganization of the Company’s manufacturing and distribution centers located in Carlsbad, California, Toronto, Canada, and Chicopee, Massachusetts, the creation of third-party logistics sites in Dallas, Texas and Toronto, Canada, as well as the establishment of a new production facility in Monterrey, Mexico. This restructuring was completed in 2011 and only nominal charges were incurred in 2012. The Company intends to maintain limited manufacturing and distribution facilities in Carlsbad, California and Chicopee, Massachusetts.

During the three and six months ended June 30, 2011, the Company recorded pre-tax charges of $5,813,000 and $12,342,000, respectively in connection with this restructuring. The majority of these charges were recognized within cost of sales, and $8,356,000 and $3,793,000 were absorbed by the Company’s golf clubs and golf balls segments, respectively. Costs incurred during the first half of 2012 were de minimis. Charges related to corporate general and administrative expenses were excluded from the Company’s operating segments. In the aggregate through December 31, 2011, the Company recognized total charges of $39,496,000 in connection with the GOS Initiatives.

The charges recognized under this restructuring include non-cash charges for the acceleration of depreciation on certain golf club and golf ball manufacturing equipment and cash charges related to severance benefits and transition costs, which consist primarily of consulting expenses, costs associated with redundancies during the start-up and training phase of the new production facility in Monterrey, Mexico, start-up costs associated with the establishment of third-party logistics sites, travel expenses, and costs associated with the transfer of inventory and equipment.

Reorganization and Reinvestment Initiatives

In June 2011, the Company announced that it was implementing certain restructuring initiatives (the “Reorganization and Reinvestment Initiatives”) that involve (i) streamlining the Company’s organization to reduce costs, simplify internal processes, and increase focus on the Company’s consumers and retail partners, (ii) reorganizing the Company’s organizational structure to place greater emphasis on global brand management and improve the effectiveness of the Company’s key initiatives, and (iii) reinvesting in brand and demand creation initiatives to drive sales growth. The Company’s restructuring plan is expected to result in annualized pre-tax savings of approximately $50,000,000 with up to half of the savings to be reinvested into the Callaway and Odyssey brands and more effective demand creation initiatives. The majority of these savings and reinvestments are expected to be realized in 2012.

During the quarter ended June 30, 2012, the Company recognized $283,000 of charges in connection with these initiatives of which $148,000 and $135,000 were recognized in cost of goods sold and operating expenses, respectively. Total charges absorbed by the Company’s golf clubs and golf balls operating segments were $191,000 and $29,000, respectively. During the six months ended June 30, 2012, the Company recognized $720,000 of charges in connection with these initiatives of which $296,000 and $424,000 were recognized in cost of goods sold and operating expenses, respectively. Total charges absorbed by the Company’s golf clubs and golf balls operating segments were $554,000 and $108,000, respectively. Charges related to corporate general and administrative expenses were excluded from the Company’s operating segments. The Company expects future estimated charges of $183,000, to be settled in cash, during the balance of 2012.

The table below depicts the activity and liability balances recorded as part of the GOS Initiatives and the Reorganization and Reinvestment Initiatives as well as the current estimated future charges relating to these initiatives (in thousands). Amounts payable as of June 30, 2012 are included in accrued employee compensation and benefits, and amounts payable at December 31, 2011 are included in accrued employee compensation and benefits and accounts payable and accrued expenses in the accompanying consolidated condensed balance sheets. The majority of the amounts payable as of June 30, 2012 will be paid during the balance of 2012.


	GOS Initiatives						Reorganization and Reinvestment Initiatives			Total
	Workforce Reductions			Transition Costs			Workforce Reductions			Total
Restructuring payable balance, December 31, 2011	$	1,219		$	55		$	5,357		$	6,631
Charges to cost and expense		—			21			442			463
Cash payments		(559	)		(76	)		(3,357	)		(3,992	)

Restructuring payable balance, March 31, 2012	$	660		$	—		$	2,442		$	3,102
Charges to cost and expense		—			—			283			283
Cash payments		(159	)		—			(1,675	)		(1,834	)

Restructuring payable balance, June 30, 2012	$	501		$	—		$	1,050		$	1,551

Total future estimated charges as of June 30, 2012	$	—		$	—		$	183		$	183

Cost Reduction Initiatives

The Company has begun implementing additional cost-reduction initiatives (the “Cost Reduction Initiatives”). These initiatives are designed to streamline and simplify the Company’s organizational structure and change the manner in which the Company approaches and operates its business. The actions include a 12% reduction in workforce that impacts all regions and levels of the organization and include greater focus on the Company’s core product lines by licensing to third parties the rights to develop, manufacture and distribute certain non-core product lines (e.g. apparel and footwear). These initiatives are estimated to yield approximately $52,000,000 in annualized savings. In connection with these initiatives, the Company expects to incur total pre-tax charges of up to $36,000,000 to $42,000,000, of which less than 50% is expected to result in cash expenditures. The Company expects to incur these estimated charges over the following twelve months. These estimates are based upon current information and expectations, however, the amount or timing of these changes could vary as the Company further develops and implements these initiatives.

During the three and six months ended June 30, 2012, the Company recognized charges of $4,643,000 and $4,671,000, respectively, in connection with these initiatives. Amounts recognized in cost of goods sold and operating expenses totaled $937,000 and $3,706,000 during the three months ended June 30, 2012, respectively, and $961,000 and $3,710,000 during the six months ended June 30, 2012, respectively. Total charges absorbed by the Company’s golf clubs and golf balls operating segments were $1,667,000 and $324,000, respectively, for the three months ended June 30, 2012, and $1,686,000 and $333,000, respectively, for the six months ended June 30, 2012. Charges related to corporate general and administrative expenses were excluded from the Company’s operating segments.

The table below depicts the total charges recognized in 2012, the liability balances, and the current estimated future charges relating to the Cost Reduction Initiatives (in thousands). Amounts payable as of June 30, 2012 are included in accrued employee compensation and benefits on the accompanying consolidated condensed balance sheet.


	Cost Reduction Initiatives
	Workforce Reductions			Transition Costs			Asset Write-offs			Total
Charges to cost and expense	$	3,240		$	707		$	724		$	4,671
Non-cash items		(240	)		—			(724	)		(964	)
Cash payments		(542	)		(707	)		—			(1,249	)

Restructuring payable balance, June 30, 2012	$	2,458		$	—		$	—		$	2,458

Total future estimated charges as of June 30, 2012⁽¹⁾	$	10,700		$	5,300		$	18,300		$	34,300

(1)	For purposes of this table, the Company used the middle of the range of future estimated charges.

In connection with the Company’s Cost Reduction Initiatives, the Company is reorganizing its golf ball manufacturing supply chain. The Company is currently using only a small portion of its golf ball manufacturing facilities in Chicopee, Massachusetts and is exploring the possibility of selling those facilities. Because the Company intends to maintain manufacturing capabilities in Chicopee even if it sells the current facilities, the Company is also exploring alternative sites in the Chicopee area as well as the possibility of leasing back from potential buyers the portion of the facilities the Company is currently using. If the Company were to sell the facilities at less than their current carrying value, the Company would be required to recognize a charge equal to the amount by which the carrying value exceeds the sale price. The Company has included in the future estimated charges related to the Cost Reduction Initiatives summarized in the table above an estimate of potential charges relating to the reorganization of the golf ball manufacturing supply chain, including potential charges for the sale of the golf ball manufacturing facilities in Chicopee.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details

Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes

3. Income Taxes

The Company calculates its interim income tax provision in accordance with Accounting Standards Codification (“ASC”) 270, “Interim Reporting,” and ASC 740, “Accounting for Income Taxes” (together, “ASC 740”). In general, at the end of each interim period, the Company estimates the annual effective tax rate and applies that rate to its ordinary quarterly earnings. The tax expense or benefit related to significant, unusual, or extraordinary items is recognized in the interim period in which those items occur. In addition, the effect of changes in enacted tax laws, rates, or tax status is recognized in the interim period in which the change occurs.

The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment, including the expected operating income/loss for the year, projections of the proportion of income earned and taxed in foreign jurisdictions, permanent and temporary differences as a result of differences between amounts measured and recognized in accordance with tax laws and financial accounting standards, and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained, or as the tax environment changes. For the three and six months ended June 30, 2012, the discrete method was used to calculate the Company’s U.S. interim tax expense as the annual effective rate was not considered a reliable estimate of year-to-date income tax expense. Under the discrete method, the Company determines its U.S. tax expense based upon actual results as if the interim period were an annual period. The Company’s full U.S. valuation allowance position, the tax effects related to the changes in indefinite life intangibles and the seasonality of the Company’s business create results with significant variations in the customary relationship between income tax expense and pre-tax income for the interim periods. As a result, the use of the discrete method is more appropriate than the annual year effective tax rate method.

The Company is required to file federal and state tax returns in the United States and various other tax returns in foreign jurisdictions. The preparation of these tax returns requires the Company to interpret the applicable tax laws and regulations in effect in such jurisdictions, which could impact the amount of tax paid by the Company. The Company, in consultation with its tax advisors, bases its tax returns on interpretations that are believed to be reasonable under the circumstances. The tax returns, however, are subject to routine reviews by the various federal, state, and international taxing authorities in the jurisdictions in which the Company files its returns. As part of these reviews, a taxing authority may disagree with respect to the tax positions taken by the Company (“uncertain tax positions”) and, therefore, require the Company to pay additional taxes. In accordance with ASC 740, the Company accrues for the estimated additional amount of taxes for uncertain tax positions if it is more likely than not (50% likelihood) that the Company would be required to pay additional taxes. The accrual for uncertain tax positions can result in a difference between the estimated benefit recorded in the Company’s consolidated condensed financial statements and the benefit taken or expected to be taken in the Company’s income tax returns. This difference is generally referred to as an “unrecognized tax benefit.” As of June 30, 2012, the liability for income taxes associated with uncertain tax positions was $9,286,000 and could be reduced by $3,808,000 of offsetting tax benefits associated with the correlative effects of potential transfer pricing adjustments as well as $1,089,000 of tax benefits associated with state income taxes. The net amount of $4,389,000, if recognized, would favorably affect the Company’s consolidated condensed financial statements and effective income tax rate. The Company does not expect that unrecognized tax benefit liabilities will significantly increase or decrease during the next 12 months.

Deferred tax assets and liabilities result from temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are anticipated to be in effect at the time the differences are expected to reverse. The realization of the deferred tax assets, including loss and credit carry forwards, is subject to the Company generating sufficient taxable income during the periods in which the temporary differences become realizable. The Company establishes a valuation allowance against its deferred tax assets when required by applicable accounting rules, increasing income tax expense in the period that such allowance is established. During the second quarter of 2011, the Company evaluated whether the realization of its U.S. deferred tax assets would be deemed likely under applicable accounting rules, and considered, among other things, the Company’s taxable losses in the United States from 2009 to 2011. When evaluated in light of the applicable standards, this evidence suggested that the Company should establish a valuation allowance. As a result, during 2011, the Company recorded a valuation allowance against its U.S. deferred tax assets. At each quarter end that a valuation allowance is maintained, as the U.S. deferred tax assets are adjusted upwards or downwards, the associated valuation allowance and income tax expense will be adjusted. If sufficient positive evidence arises in the future, such as a sustained return to profitability in the U.S. business, any existing valuation allowance could be reversed as appropriate, decreasing income tax expense in the period that such conclusion is reached. The Company has concluded that with respect to non-U.S. entities, there is sufficient positive evidence to conclude that realization of its deferred tax assets is deemed to be likely under applicable accounting rules, and no allowances have been established.

The non-cash charge to establish a valuation allowance does not have any impact on the Company’s consolidated income from operations or cash flows, nor does such an allowance preclude the Company from using loss carry forwards or other deferred tax assets in the future, except as described below. Until the Company re-establishes a pattern of continuing profitability, U.S. income tax expense or benefit related to the recognition of deferred tax assets in the consolidated condensed statement of operations for future periods will be offset by decreases or increases in the valuation allowance with no net effect on the consolidated condensed statement of operations.

Subsequent to the issuance of the consolidated financial statements for the period ended June 30, 2011, the Company identified that it had understated its long-term deferred tax liabilities. This understatement included amounts related to the tax treatment of certain depreciable assets, deductible stock options and deferred revenue related to gift cards all of which relate to periods prior to 2008. As a result of these corrections to the long-term deferred tax liabilities, the Company determined that it had overstated the amount of the valuation allowance recorded during the three and six months ended June 30, 2011 by $4,498,000. The Company corrected the consolidated condensed financial statements for the three and six months ended June 30, 2011 as follows (in thousands):


	Three Months Ended June 30, 2011						Six Months Ended June 30, 2011
	As Previously Reported			As Corrected			As Previously Reported			As Corrected
Provision for income taxes	$	49,981		$	45,483		$	58,761		$	54,263
Net loss	$	(63,564	)	$	(59,066	)	$	(50,746	)	$	(46,248	)
Net loss allocable to common shareholders	$	(66,189	)	$	(61,691	)	$	(55,996	)	$	(51,498	)
Loss per common share basic and diluted	$	(1.03	)	$	(0.96	)	$	(0.87	)	$	(0.80	)

The Company does not believe the corrections above are material to the financial statements for the three and six months ended June 30, 2011, and they did not affect the net cash used in operating activities in the consolidated condensed statement of cash flows for the six months ended June 30, 2011.

The Company recognizes interest and/or penalties related to income tax matters in income tax expense. For the three months ended June 30, 2012 and 2011, the Company recognized approximately $28,000 and $41,000, respectively, of interest expense and penalties in the provision for income taxes. As of June 30, 2012 and December 31, 2011, the Company had accrued $980,000 and $890,000, respectively, before income tax benefit, for the payment of interest and penalties.

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company is generally no longer subject to income tax examinations by tax authorities in the following major jurisdictions:


Tax Jurisdiction	Years No Longer Subject to Audit
U.S. federal		2007 and prior
California (United States)		2006 and prior
Canada		2007 and prior
Japan		2007 and prior
South Korea		2008 and prior
United Kingdom		2007 and prior

Although the Company has set up a valuation allowance against the majority of its U.S. federal and state deferred tax assets, which include tax credits, net operating loss carry forwards (“NOLs”) and other losses, such allowance does not preclude the Company from using the deferred tax assets in the future. However, the Company’s ability to utilize the tax credits and losses to offset future taxable income may be limited significantly if the Company were to experience a cumulative change in ownership of the Company’s stock by “5-percent shareholders” (as defined in Section 382 of the Internal Revenue Code of 1986, as amended) that exceeds 50 percentage points over a rolling three-year period. The determination of whether a Section 382 ownership change has occurred is complex and requires significant judgment. The extent to which the Company’s ability to utilize the losses is limited as a result of such an ownership change depends on many variables, including the value of the Company’s stock at the time of the ownership change. The Company does not believe there has been a cumulative increase in ownership by “5-percent shareholders” in excess of 50 percentage points during the three year period ended June 30, 2012, however, the Company continues to monitor changes in ownership. If such a cumulative increase did occur in any three year period and the Company were limited in the amount of losses it could use to offset taxable income, the Company’s results of operations and cash flows would be adversely impacted.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Sale of Buildings

6 Months Ended

Jun. 30, 2012

Sale of Buildings

4. Sale of Buildings

In March 2011, the Company completed the sale of three of its buildings located in Carlsbad, California, and entered into lease-back agreements for each building over a period of one to five years. The sale of these buildings was in connection with the Company’s consolidation of its campus into a more efficient layout, and the relocation of the Company’s golf club manufacturing facilities from Carlsbad, California to Monterrey, Mexico (see Note 2). The sale resulted in net proceeds of $18,079,000 and a net gain of $12,668,000, of which $6,170,000 was recognized in general and administrative expenses during the first quarter of 2011. Due to the lease-back arrangement, the Company deferred a portion of this gain in the amount of $6,498,000, which represents the sum of the net present value of the minimum future lease payments through the end of each respective lease term. During the three and six months ended June 30, 2012, the Company recognized $399,000 and $909,000, respectively, of this deferred gain in general and administrative expenses. The amortization of the deferred gain will offset future rent expense over the term of the leases which range from 1 to 5 years.

- Definition

The entire disclosure for sale leaseback transactions. Includes the elements of a transaction involving the sale of property to another party and the lease of the property back to the seller.

+ References + Details

Preferred Stock Offering

6 Months Ended

Jun. 30, 2012

Preferred Stock Offering

5. Preferred Stock Offering

In June 2009, the Company sold 1,400,000 shares of its 7.50% Series B Cumulative Perpetual Convertible Preferred Stock, $0.01 par value (the “preferred stock”). The Company received gross proceeds of $140,000,000 and incurred costs of $6,085,000, which were recorded as an offset to additional paid-in capital in the consolidated condensed statement of shareholders’ equity. The terms of the preferred stock provide for a liquidation preference of $100 per share and cumulative dividends from the date of original issue at a rate of 7.50% per annum (equal to an annual rate of $7.50 per share), subject to adjustment in certain circumstances. As of June 30, 2012, the liquidation preference would have been $140,438,000. Dividends on the preferred stock are payable quarterly in arrears subject to declaration by the Board of Directors and compliance with the Company’s line of credit and applicable law.

The preferred stock is generally convertible at any time at the holder’s option into common stock of the Company at an initial conversion rate of 14.1844 shares of Callaway’s common stock per share of preferred stock, which is equivalent to an initial conversion price of approximately $7.05 per share. Based on the initial conversion rate, approximately 19,900,000 shares of common stock would be issuable upon conversion of all of the outstanding shares of preferred stock.

The Company, at its option, may redeem the preferred stock, in whole or in part, at a price equal to 100% of the liquidation preference, plus all accrued and unpaid dividends. The preferred stock has no maturity date and has no voting rights prior to conversion into the Company’s common stock, except in limited circumstances.

Earnings per Common Share

6 Months Ended

Jun. 30, 2012

Earnings per Common Share

6. Earnings per Common Share

Earnings per common share, basic, is computed by dividing net income less preferred stock dividends (i.e., net income allocable to common shareholders) by the weighted-average number of common shares outstanding for the period. Earnings per common share, diluted, is computed by dividing net income by the weighted-average number of common and potentially dilutive common equivalent shares outstanding for the period. Weighted-average common shares outstanding—diluted is the same as weighted-average common shares outstanding—basic in periods when a net loss is reported, or in periods when diluted earnings (loss) per share is more favorable than basic earnings (loss) per share.

Dilutive securities include the common stock equivalents of convertible preferred stock, options granted pursuant to the Company’s stock option plans and outstanding restricted stock units granted to employees and non-employees (see Note 14). Dilutive securities are included in the calculation of diluted earnings per common share using the treasury stock method in accordance with ASC Topic 260, “Earnings per Share” (“ASC 260”).

The following table summarizes the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, and reconciles the weighted-average common shares used in the computation of basic and diluted earnings per share (in thousands, except per share data):


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Earnings (loss) per common share—basic
Net income (loss)	$	2,799		$	(59,066	)	$	34,601		$	(46,248	)
Less: Preferred stock dividends		(2,625	)		(2,625	)		(5,250	)		(5,250	)

Net income (loss) allocable to common shareholders	$	174		$	(61,691	)	$	29,351		$	(51,498	)

Weighted-average common shares outstanding—basic		65,060			64,425			65,021			64,365

Basic earnings (loss) per common share	$	0.00		$	(0.96	)	$	0.45		$	(0.80	)

Earnings (loss) per common share—diluted
Net income (loss)	$	174		$	(61,691	)	$	34,601		$	(51,498	)

Weighted-average common shares outstanding—basic		65,060			64,425			65,021			64,365
Preferred stock weighted-average shares outstanding		—			—			19,858			—
Options, restricted stock and other dilutive securities		52			—			71			—

Weighted-average common shares outstanding—diluted		65,112			64,425			84,950			64,365

Diluted earnings (loss) per common share	$	0.00		$	(0.96	)	$	0.41		$	(0.80	)

Options with an exercise price in excess of the average market value of the Company’s common stock during the period have been excluded from the calculation as their effect would be antidilutive. Additionally, potentially dilutive securities were excluded from the computation in periods in which a net loss is reported as their effect would be antidilutive. For the three months ended June 30, 2012 and 2011, dilutive securities outstanding totaling approximately 29,100,000 and 30,902,000 shares, respectively, (including preferred stock of 19,858,000) were excluded from the calculations as their effect would have been antidilutive. For the six months ended June 30, 2012 and 2011 dilutive securities outstanding totaling approximately 9,353,000 and 30,893,000 (including preferred stock of 19,858,000), respectively, were excluded from the calculations as their effect would have been antidilutive.

Inventories

6 Months Ended

Jun. 30, 2012

Inventories

7. Inventories

Inventories are summarized below (in thousands):


	June 30, 2012		December 31, 2011
Inventories:
Raw materials	$	52,289	$	46,976
Work-in-process		727		1,286
Finished goods		162,778		184,808

	$	215,794	$	233,070

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets

8. Goodwill and Intangible Assets

In accordance with ASC Topic 350, “Intangibles—Goodwill and Other,” the Company’s goodwill and certain intangible assets are not amortized, but are subject to an annual impairment test. The Company performs an impairment analysis on its goodwill and intangible assets at least annually and whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. The following sets forth the intangible assets by major asset class (dollars in thousands):


	Useful Life (Years)		June 30, 2012						December 31, 2011
	Useful Life (Years)		Gross		Accumulated Amortization		Net Book Value		Gross		Accumulated Amortization		Net Book Value
Non-Amortizing:
Trade name, trademark and trade dress and other		NA	$	88,590	$	—	$	88,590	$	108,834	$	—	$	108,834
Amortizing:
Patents		2-16		36,459		29,982		6,477		36,459		28,908		7,551
Developed technology and other		1-9		12,487		7,556		4,931		12,387		6,837		5,550

Total intangible assets			$	137,536	$	37,538	$	99,998	$	157,680	$	35,745	$	121,935

Aggregate amortization expense on intangible assets was approximately $1,793,000 and $2,010,000 for the six months ended June 30, 2012 and 2011. Amortization expense related to intangible assets at June 30, 2012 in each of the next five fiscal years and beyond is expected to be incurred as follows (in thousands):


Remainder of 2012	$	1,757
2013		2,560
2014		1,882
2015		1,844
2016		1,834
2017		846
Thereafter		685

	$	11,408

Goodwill at June 30, 2012 and December 31, 2011 was $29,128,000 and $29,203,000, respectively. The decrease in goodwill during the six months ended June 30, 2012 of $75,000 was due to foreign currency fluctuations. Gross goodwill before impairments at June 30, 2012 and December 31, 2011 was $30,248,000 and $30,323,000, respectively.

In March 2012, in an effort to simplify the Company’s operations and increase focus on the Company’s core Callaway and Odyssey business, the Company sold certain assets related to the Top-Flite brand, including world-wide trademarks and service marks for net cash proceeds of $19,900,000. In addition, in February 2012, the Company completed the sale of the Ben Hogan brand including all trademarks, service marks and certain other intellectual property for net cash proceeds of $6,961,000. At the time of sale, the net book value of the Top-Flite and Ben Hogan assets totaled $20,244,000 and were included with the net identifiable assets of the Company’s golf ball operating segment. During the six months ended June 30, 2012, the Company recognized a pre-tax net gain of $6,602,000 in general and administrative expenses in the accompanying consolidated condensed statement of operations related to the sale of these two brands.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Investments

6 Months Ended

Jun. 30, 2012

Investments

9. Investments

Investment in TopGolf International, Inc.

The Company has an investment in TopGolf International, Inc. (“TopGolf”), the owner and operator of TopGolf entertainment centers. In connection with this investment, the Company owns $20,699,000 of preferred shares of TopGolf and has a Preferred Partner Agreement with TopGolf in which the Company has preferred signage rights, rights as the preferred supplier of golf products used or offered for use at TopGolf facilities at prices no less than those paid by the Company’s customers, preferred retail positioning in the TopGolf retail stores, access to consumer information obtained by TopGolf, and other rights incidental to those listed.

The Company’s ownership interest in TopGolf is less than 20%. In addition, the Company does not have the ability to significantly influence the operating and financing activities and policies of TopGolf. Accordingly, the Company’s investment in TopGolf is accounted for at cost in accordance with ASC Topic 325, “Investments—Other,” and is included in other long-term assets in the accompanying consolidated condensed balance sheets as of June 30, 2012 and December 31, 2011.

Non-Controlling Interest

6 Months Ended

Jun. 30, 2012

Non-Controlling Interest

10. Non-Controlling Interest

Investment in Qingdao Suntech Sporting Goods Limited Company

The Company has a Golf Ball Manufacturing and Supply Agreement with Qingdao Suntech Sporting Goods Limited Company (“Suntech”), where Suntech manufactures and supplies certain golf balls solely for and to the Company. In connection with the agreement, the Company provides Suntech with golf ball raw materials, packing materials, molds, tooling, as well as manufacturing equipment in order to carry out the manufacturing and supply obligations set forth in the agreement. Suntech provides the personnel as well as the facilities to effectively perform these manufacturing and supply obligations. Due to the nature of the arrangement, as well as the controlling influence the Company has in the Suntech operations, the Company is required to consolidate the financial results of Suntech in its consolidated condensed financial statements as of June 30, 2012 and December 31, 2011, in accordance with ASC Topic 810, “Consolidations.”

Suntech is a wholly-owned subsidiary of Suntech Mauritius Limited Company (“Mauritius”). The Company has entered into a loan agreement with Mauritius in order to provide working capital for Suntech. In connection with this loan agreement, the Company loaned Mauritius a total of $3,200,000 of which $1,988,000 was outstanding as of both June 30, 2012 and December 31, 2011. The Company recorded the loan in other long-term assets in the accompanying consolidated condensed balance sheets as of June 30, 2012 and December 31, 2011.

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

+ References + Details

Product Warranty

6 Months Ended

Jun. 30, 2012

Product Warranty

11. Product Warranty

The Company has a stated two-year warranty policy for its golf clubs, although the Company sometimes honors warranty claims after the two-year stated warranty period at the Company’s discretion. The Company’s policy is to accrue the estimated cost of satisfying future warranty claims at the time the sale is recorded. In estimating its future warranty obligations, the Company considers various relevant factors, including the Company’s stated warranty policies and practices, the historical frequency of claims, and the cost to replace or repair its products under warranty. The decrease in the provision for future warranty claims during the three and six months ended June 30, 2012 is primarily due to increased reserves in 2011 as a result of the product withdrawal of the uPro MX GPS device in 2011. The following table provides a reconciliation of the activity related to the Company’s reserve for warranty expense (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Beginning balance	$	8,262		$	8,646		$	8,140		$	8,427
Provision		1,919			6,234			3,773			8,185
Claims paid/costs incurred		(2,318	)		(2,898	)		(4,050	)		(4,630	)

Ending balance	$	7,863		$	11,982		$	7,863		$	11,982

Financing Arrangements

6 Months Ended

Jun. 30, 2012

Financing Arrangements

12. Financing Arrangements

The Company has a Loan and Security Agreement with Bank of America N.A. (as amended, the “ABL Facility”) which provides a senior secured asset-based revolving credit facility of up to $230,000,000, comprised of a $158,333,000 U.S. facility (of which $20,000,000 is available for letters of credit), a $31,667,000 Canadian facility (of which $5,000,000 is available for letters of credit) and a $40,000,000 United Kingdom facility (of which $2,000,000 is available for letters of credit), in each case subject to borrowing base availability under the applicable facility. The aggregate amount outstanding under the Company’s letters of credit was $3,355,000 at June 30, 2012. The amounts outstanding under the ABL Facility are secured by certain assets, including inventory and accounts receivable, of the Company’s U.S., Canadian and U.K. legal entities.

As of June 30, 2012, the Company had $70,150,000 outstanding under the ABL Facility and had $27,986,000 of cash and cash equivalents. The Company’s seasonality, as well as the timing of product launches will affect the level of borrowings against the Company’s credit facilities. Generally, during the first quarter, the Company will rely more heavily on its credit facilities to fund operations as cash inflows from operations typically increase during the second and third quarters as a result of cash collections from customers. During 2012, the Company shifted its product launches to the first quarter. In the prior year, products were launched earlier in the fourth quarter of 2010. As such, the cash conversion cycle also shifted to later in the current year as compared to the prior year, which resulted in higher borrowings outstanding at June 30, 2012 compared to June 30, 2011. The maximum amount of Consolidated Funded Indebtedness (as defined by the ABL Facility), including borrowings under the ABL Facility, that could have been outstanding on June 30, 2012, was approximately $170,423,000. Average outstanding borrowings during the six months ended June 30, 2012 were $76,674,000. Amounts borrowed under the ABL Facility may be repaid and borrowed as needed. The entire outstanding principal amount (if any) is due and payable at maturity on June 30, 2016.

The interest rate applicable to outstanding loans under the ABL Facility fluctuates depending on the Company’s trailing-twelve month EBITDA (as defined by the ABL Facility) combined with the Company’s “availability ratio” (as defined below). The Company’s “availability ratio” is the ratio, expressed as a percentage of (a) the average daily availability under the ABL Facility to (b) the sum of the Canadian, the U.K. and the U.S. borrowing bases, as adjusted. All applicable margins will be permanently reduced by 0.25% if EBITDA, as defined in the ABL Facility, meets or exceeds $25,000,000 over any trailing twelve-month period, and will be permanently reduced by an additional 0.25% if EBITDA meets or exceeds $50,000,000 over any trailing twelve-month period. At June 30, 2012, the Company’s interest rate applicable to its outstanding loans under the ABL Facility was 4.75%.

In addition, the ABL Facility provides for monthly fees ranging from 0.375% to 0.5% of the unused portion of the ABL Facility, depending on the prior month’s average daily balance of revolver loans and stated amount of letters of credit relative to lenders’ commitments.

The ABL Facility includes certain restrictions including, among other things, restrictions on incurrence of additional debt, liens, dividends and other restricted payments, asset sales, investments, mergers, acquisitions and affiliate transactions. As of June 30, 2012, the Company was in compliance with all covenants of the ABL Facility. Additionally, the Company will be subject to compliance with a fixed charge coverage ratio covenant during, and continuing 30 days after, any period in which the Company’s borrowing base availability falls below $25,000,000. The Company’s borrowing base was above $25,000,000 during the six months ended June 30, 2012, and as such was not subject to compliance with the fixed charge coverage ratio.

The origination fees incurred in connection with the ABL Facility totaled $4,133,000, which will be amortized into interest expense over the term of the ABL Facility agreement. Unamortized origination fees as of June 30, 2012 and December 31, 2011 were $3,490,000 and $3,194,000, respectively, of which $873,000 and $650,000, respectively, was included in other current assets and $2,618,000 and $2,275,000, respectively, in other long-term assets in the accompanying consolidated condensed financial statements.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies

13. Commitments and Contingencies

Legal Matters

The Company is subject to routine legal claims, proceedings, and investigations incident to its business activities, including claims, proceedings, and investigations relating to commercial disputes and employment matters. The Company also receives from time to time information claiming that products sold by the Company infringe or may infringe patent, trademark, or other intellectual property rights of third parties. One or more such claims of potential infringement could lead to litigation, the need to obtain licenses, the need to alter a product to avoid infringement, a settlement or judgment, or some other action or material loss by the Company, which also could adversely affect the Company’s overall ability to protect its product designs and ultimately limit its future success in the marketplace. In addition, the Company is occasionally subject to non-routine claims, proceedings, or investigations.

The Company regularly assesses such matters to determine the degree of probability that the Company will incur a loss as a result of such matters as well as the range of possible loss. An estimated loss contingency is accrued in the Company’s financial statements if it is probable the Company will incur a loss and the amount of the loss can be reasonably estimated. The Company reviews all claims, proceedings, and investigations at least quarterly and establishes or adjusts any accruals for such matters to reflect the impact of negotiations, settlements, advice of legal counsel, and other information and events pertaining to a particular matter. All legal costs associated with such matters are expensed as incurred.

Historically, the claims, proceedings and investigations brought against the Company, individually, and in the aggregate, have not had a material adverse effect upon the consolidated results of operations, cash flows, or financial position of the Company. The Company believes that it has valid legal defenses to the matters currently pending against the Company. These matters are inherently unpredictable and the resolutions of those matters are subject to many uncertainties and the outcomes are not predictable with assurance. Consequently, management is unable to estimate the ultimate aggregate amount of monetary loss, amounts covered by insurance, or the financial impact that will result from such matters. Management believes that the final resolution of the current matters pending against the Company, individually and in the aggregate, will not have a material adverse effect upon the Company’s consolidated financial position. It is possible, however, that the Company’s results of operations or cash flows could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies.

Unconditional Purchase Obligations

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, reductions in payment obligations if designated minimum performance criteria are not achieved, the Company’s sales levels, and severance arrangements. As of June 30, 2012, the Company has entered into many of these contractual agreements with terms ranging from one to six years. The minimum obligation that the Company is required to pay under these agreements is $84,220,000 over the next six years. 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 total. Future purchase commitments as of June 30, 2012, are as follows (in thousands):


Remainder of 2012	$	49,505
2013		24,530
2014		8,845
2015		674
2016		463
2017		203
Thereafter		—

	$	84,220

Other Contingent Contractual Obligations

During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These include (i) intellectual property indemnities to the Company’s customers and licensees in connection with the use, sale and/or license of Company product or trademarks, (ii) indemnities to various lessors in connection with facility leases for certain claims arising from such facilities or leases, (iii) indemnities to vendors and service providers pertaining to the goods and services provided to the Company or based on the negligence or willful misconduct of the Company and (iv) indemnities involving the accuracy of representations and warranties in certain contracts. In addition, the Company has consulting agreements that provide for payment of nominal fees upon the issuance of patents and/or the commercialization of research results. The Company has also issued guarantees in the form of a standby letter of credit as security for contingent liabilities under certain workers’ compensation insurance policies.

The duration of these indemnities, commitments and guarantees varies, and in certain cases, may be indefinite. The majority of these indemnities, commitments and guarantees do not provide for any limitation on the maximum amount of future payments the Company could be obligated to make. Historically, costs incurred to settle claims related to indemnities have not been material to the Company’s financial position, results of operations or cash flows. In addition, the Company believes the likelihood is remote that material payments under the commitments and guarantees described above will have a material effect on the Company’s financial condition. The fair value of indemnities, commitments and guarantees that the Company issued during the six months ended June 30, 2012 was not material to the Company’s financial position, results of operations or cash flows.

Employment Contracts

In addition, the Company has made contractual commitments to each of its officers and certain other employees providing for severance payments, including salary continuation, upon the termination of employment by the Company for convenience or by the officer for substantial cause. In addition, in order to assure that the officers would continue to provide independent leadership consistent with the Company’s best interest, the contracts also generally provide for certain protections in the event of an actual or threatened change in control of the Company. These protections include the payment of certain severance benefits, such as salary continuation, upon the termination of employment following a change in control.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Subparagraph (SX 210.5-02.25)
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Share-Based Employee Compensation

6 Months Ended

Jun. 30, 2012

Share-Based Employee Compensation

14. Share-Based Employee Compensation

As of June 30, 2012, the Company had one shareholder approved stock plan under which shares were available for equity-based awards: the Callaway Golf Company Amended and Restated 2004 Incentive Plan. From time to time, the Company grants stock options, restricted stock units, phantom stock units, stock appreciation rights and other awards under this plan.

The table below summarizes the amounts recognized in the financial statements for the three and six months ended June 30, 2012 and 2011 for share-based compensation, including expense for phantom stock units and cash settled stock appreciation rights granted to employees (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Cost of sales	$	67		$	180		$	147		$	343
Operating expenses		944			5,640			3,729			8,191

Total cost of employee share-based compensation included in income (loss), before income tax		1,011			5,820			3,876			8,534
Amount of income tax recognized in earnings		(389	)		(2,383	)		(1,492	)		(3,284	)

Amount charged against net income (loss)	$	622		$	3,437		$	2,384		$	5,250

Impact on net income per common share:
Basic	$	(0.01	)	$	(0.05	)	$	(0.04	)	$	(0.08	)
Diluted	$	(0.01	)	$	(0.05	)	$	(0.03	)	$	(0.08	)

Stock Options

During the six months ended June 30, 2012 and 2011, the Company granted 5,000 and 1,731,000 shares underlying stock options, respectively, at a weighted average grant-date fair value of $2.63 and $2.94 per share, respectively. There were no stock options granted during the second quarter of 2012 and 2011. Total compensation expense recognized for stock options during the three and six months ended June 30, 2012 was $621,000 and $1,056,000, respectively. During the three and six months ended June 30, 2011, the Company recognized $962,000 and $1,817,000, respectively.

The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model. The table below summarizes the weighted average Black-Scholes fair value assumptions used in the valuation of stock options granted during the six months ended June 30, 2012 and 2011.


	Six Months Ended June 30,
	2012		2011
Dividend yield		1.2%		1.4%
Expected volatility		50.6%		48.5%
Risk free interest rate		0.8%		2.0%
Expected life		4.9 years		5.0 years

Restricted Stock Units

During the three months ended June 30, 2012 and 2011, the Company granted 83,000 and 58,000 shares underlying restricted stock units, respectively, at a weighted average grant-date fair value of $6.01 and $6.94 per share, respectively. The Company granted 383,000 and 61,000 shares underlying restricted stock units during the six months ended June 30, 2012 and 2011, respectively, at a weighted average grant-date fair value of $6.38 and $7.01 per share, respectively. Total compensation expense recognized for restricted stock units during the three months ended June 30, 2012 and 2011 was $488,000 and $688,000, respectively. Total compensation expense recognized for restricted stock units during the six months ended June 30, 2012 and 2011 was $839,000 and $1,328,000, respectively. At June 30, 2012, the Company had $3,063,000 of total unrecognized compensation expense related to non-vested shares granted to employees and non-employees related to restricted stock units. The amount of unrecognized compensation expense noted above does not necessarily represent the amount that will ultimately be realized by the Company in its consolidated condensed statement of operations due to the application of forfeiture rates.

Phantom Stock Units

Phantom stock units (“PSUs”) are a form of share-based awards that are indexed to the Company’s common stock and are settled in cash. PSUs are accounted for as liabilities and are remeasured based on the closing price of the Company’s common stock at the end of each interim period through the settlement date of the awards. PSUs vest over two and three year periods and compensation expense is recognized on a straight-line basis over these vesting periods.

During the three and six months ended June 30, 2012, the Company granted 117,000 and 401,000 shares underlying PSUs, respectively, at a weighted average grant date fair value of $5.60 and $6.37 per share, respectively. During the three months ended June 30, 2011, the Company granted 679,000 shares underlying PSUs with a grant date fair value of $7.51 per share. There were no PSUs granted during the second quarter of 2011. At June 30, 2012 and 2011, the fair value of total PSUs outstanding was $2,084,000 and $8,313,000, respectively.

Compensation expense recognized for PSUs outstanding was $138,000 and $995,000, during the three and six months ended June 30, 2012, respectively, and $1,216,000 and $1,633,000 during the three and six month ended June 30, 2011, respectively. In connection with the PSUs, at June 30, 2012 and December 31, 2011, the Company accrued $1,162,000 and $1,325,000, respectively, in accrued employee compensation and benefits, and $923,000 and $594,000, respectively, in long-term other liabilities in the accompanying consolidated condensed balance sheets.

Stock Appreciation Rights

During the three and six months ended June 30, 2012, the Company granted 289,000 and 3,400,000 of cash settled stock appreciation rights (“SARs”), respectively, at a weighted average grant date fair value of $1.78 and $2.07 per share, respectively. The Company records compensation expense for SARs based on the estimated fair value using the Black Scholes option-pricing model. SARs are remeasured based on a revised Black Scholes value at each interim reporting period until they reach the expected term date. The Company reversed $236,000 and recognized $985,000 in compensation expense related to these awards during the three and six months ended June 30, 2012. The Company accrued $922,000 and $321,000 at June 30, 2012 and December 31, 2011, respectively, in accrued employee compensation and benefits in the accompanying consolidated condensed balance sheets. At June 30, 2012, the Company accrued $385,000 in long-term other liabilities in the accompanying consolidated condensed balance sheet. There was no accrual in long-term other liabilities at December 31, 2011.

In connection with an employment agreement with a former executive officer of the Company, the Company was contractually obligated to grant $11,730,000 in the form of various share-based awards over the service period stipulated in the agreement. As a result, the total contractual obligation related to these equity awards was recognized on a straight-line basis over the contract term. In connection with the resignation of the executive officer in June 2011, the Company recognized a total of $2,852,000 and $3,551,000 during the three and six months ended June 30, 2011, respectively.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2012

Fair Value of Financial Instruments

15. Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability (the exit price) in the principal and most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Assets and liabilities carried at fair value are classified using a three-tier hierarchy based upon observable and unobservable inputs as follows:

Level 1: Quoted market prices in active markets for identical assets or liabilities

Level 2: Observable market based inputs that are corroborated by market data

Level 3: Unobservable inputs that are not corroborated by market data

The carrying values of cash and cash equivalents (Level 1), trade accounts receivable (Level 3) and trade accounts payable and accrued expenses (Level 3) are reasonable estimates of fair value due to the short-term maturities of these instruments.

The following table summarizes the valuation of the Company’s foreign currency exchange contracts by the above pricing levels as of the valuation dates listed (in thousands):


	June 30, 2012				December 31, 2011
	Carrying Value		Observable market based inputs (Level 2)		Carrying Value		Observable market based inputs (Level 2)
Foreign currency derivative instruments—asset position	$	1,957	$	1,957	$	2,514	$	2,514
Foreign currency derivative instruments—liability position		1,289		1,289		3,746		3,746

The fair value of the Company’s foreign currency exchange contracts is determined based on observable inputs that are corroborated by market data. Foreign currency derivatives on the balance sheet are recorded at fair value with changes in fair value recorded in the statement of operations. See Note 16 below for further information on foreign currency exchange contracts.

Nonrecurring Fair Value Measurements

The Company measures certain assets at fair value on a nonrecurring basis at least annually or when certain indicators are present. These assets include property, plant and equipment, goodwill and non-amortizing intangible assets that are written down to fair value when they are held for sale or determined to be impaired. During the three and six months ended June 30, 2012 and 2011, the Company did not have any significant assets or liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Derivatives and Hedging

6 Months Ended

Jun. 30, 2012

Derivatives and Hedging

16. Derivatives and Hedging

The Company accounts for its foreign currency exchange contracts in accordance with ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). ASC 815 requires the recognition of all derivatives as either assets or liabilities on the balance sheet, the measurement of those instruments at fair value and the recognition of changes in the fair value of derivatives in earnings in the period of change, unless the derivative qualifies as an effective hedge that offsets certain exposures. In addition, it requires enhanced disclosures regarding derivative instruments and hedging activities to better convey the purpose of derivative use in terms of the risks the Company is intending to manage, specifically about (a) how and why the Company uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under ASC 815, and (c) how derivative instruments and related hedged items affect the Company’s financial position, financial performance, and cash flows.

In the normal course of business, the Company is exposed to gains and losses resulting from fluctuations in foreign currency exchange rates relating to transactions of its international subsidiaries, including certain balance sheet exposures (payables and receivables denominated in foreign currencies). In addition, the Company is exposed to gains and losses resulting from the translation of the operating results of the Company’s international subsidiaries into U.S. dollars for financial reporting purposes. As part of its strategy to manage the level of exposure to the risk of fluctuations in foreign currency exchange rates, the Company uses derivative financial instruments in the form of foreign currency forward contracts and put and call option contracts (“foreign currency exchange contracts”) to hedge transactions that are denominated primarily in British Pounds, Euros, Japanese Yen, Canadian Dollars, Australian Dollars and Korean Won. Foreign currency exchange contracts are used only to meet the Company’s objectives of minimizing variability in the Company’s operating results arising from foreign currency exchange rate movements. The Company does not enter into foreign currency exchange contracts for speculative purposes. Foreign currency exchange contracts usually mature within twelve months from their inception.

The Company did not designate any foreign currency exchange contracts as derivatives that qualify for hedge accounting under ASC 815. At June 30, 2012 and December 31, 2011, the notional amounts of the Company’s foreign currency exchange contracts used to hedge the exposures discussed above were approximately $186,097,000 and $165,533,000, respectively, of which $85,637,000 and $131,311,000, respectively, represent contracts used to hedge exposures in operating results from the translation of revenues and expenses of the Company’s international subsidiaries into U.S. dollars and $100,460,000 and $34,222,000, respectively, represents contracts used to hedge balance sheet exposures denominated in foreign currencies. The Company estimates the fair values of foreign currency exchange contracts based on pricing models using current market rates, and records all derivatives on the balance sheet at fair value with changes in fair value recorded in the statement of operations.

The following table summarizes the fair value of derivative instruments by contract type as well as the location of the asset and/or liability on the consolidated condensed balance sheets at June 30, 2012 and December 31, 2011 (in thousands):

Asset Derivatives

June 30, 2012

December 31, 2011

Derivatives not designated as hedging
instruments

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Foreign currency exchange contracts

Other current assets

1,957

Other current assets

2,514

Liability Derivatives

June 30, 2012

December 31, 2011

Derivatives not designated as hedging
instruments

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Foreign currency exchange contracts

Accounts payable and accrued expenses

1,289

Accounts payable and accrued expenses

3,746

The following table summarizes the location of gains and losses in the consolidated condensed statements of operations that were recognized during the three months ended June 30, 2012 and 2011, respectively, in addition to the derivative contract type (in thousands):


		Amount of Gain (Loss) Recognized in Income on Derivative Instruments
Derivatives not designated as hedging instruments	Location of gain (loss) recognized in income on derivative instruments	Three Months Ended June 30,						Six Months Ended June 30,
Derivatives not designated as hedging instruments		2012			2011			2012		2011
Foreign currency exchange contracts	Other income (expense)	$	(2,200	)	$	(5,716	)	$	3,485	$	(7,054	)

The net realized and unrealized contractual net gains recognized for the three and six months ended June 30, 2012 were used to offset actual foreign currency transactional losses of $1,506,000 and $2,692,000, respectively. The net realized and unrealized contractual net losses recognized for the three and six months ended June 30, 2011 were used to offset actual foreign currency transactional gains of $2,479,000 and $2,544,000, respectively.

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information

17. Segment Information

The Company has two operating segments that are organized on the basis of products, which are segregated between golf clubs and golf balls. The golf clubs segment consists primarily of Callaway Golf woods, hybrids, irons, wedges and putters as well as Odyssey putters, other golf-related accessories, including uPro GPS on-course measurement devices, royalties from licensing of the Company’s trademarks and service marks as well as sales of pre-owned golf clubs. The golf balls segment consists primarily of Callaway Golf balls and Top-Flite golf balls until the sale of the Top-Flite brand in March 2012 (see Note 8). There are no significant intersegment transactions.

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Net sales
Golf clubs	$	231,285		$	219,081		$	473,837		$	460,067
Golf balls		49,838			54,733			92,384			99,346

	$	281,123		$	273,814		$	566,221		$	559,413

Income (loss) before provision for income taxes
Golf clubs⁽¹⁾⁽²⁾	$	17,953		$	12,308		$	50,595		$	41,613
Golf balls⁽¹⁾⁽²⁾		4,162			1,085			5,739			3,385
Reconciling items⁽³⁾		(17,120	)		(26,976	)		(19,829	)		(36,983	)

	$	4,995		$	(13,583	)	$	36,505		$	8,015

Additions to long-lived assets
Golf clubs	$	5,208		$	6,126		$	12,715		$	11,224
Golf balls		56			1,321			239			3,421

	$	5,264		$	7,447		$	12,954		$	14,645

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

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

•

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

•

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

•

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

•

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

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

•

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

•

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

•

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

•

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

•

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

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Restructuring Initiatives (Tables)

6 Months Ended

Jun. 30, 2012

Global Operations Strategy, Reorganization and Reinvestment Initiatives

Activity and Liability Balances Recorded as part of Initiatives as well as Current Estimated Future Charges Relating Initiatives


	GOS Initiatives						Reorganization and Reinvestment Initiatives			Total
	Workforce Reductions			Transition Costs			Workforce Reductions			Total
Restructuring payable balance, December 31, 2011	$	1,219		$	55		$	5,357		$	6,631
Charges to cost and expense		—			21			442			463
Cash payments		(559	)		(76	)		(3,357	)		(3,992	)

Restructuring payable balance, March 31, 2012	$	660		$	—		$	2,442		$	3,102
Charges to cost and expense		—			—			283			283
Cash payments		(159	)		—			(1,675	)		(1,834	)

Restructuring payable balance, June 30, 2012	$	501		$	—		$	1,050		$	1,551

Total future estimated charges as of June 30, 2012	$	—		$	—		$	183		$	183

Cost Reduction Initiatives

Activity and Liability Balances Recorded as part of Initiatives as well as Current Estimated Future Charges Relating Initiatives


	Cost Reduction Initiatives
	Workforce Reductions			Transition Costs			Asset Write-offs			Total
Charges to cost and expense	$	3,240		$	707		$	724		$	4,671
Non-cash items		(240	)		—			(724	)		(964	)
Cash payments		(542	)		(707	)		—			(1,249	)

Restructuring payable balance, June 30, 2012	$	2,458		$	—		$	—		$	2,458

Total future estimated charges as of June 30, 2012⁽¹⁾	$	10,700		$	5,300		$	18,300		$	34,300

(1)	For purposes of this table, the Company used the middle of the range of future estimated charges.

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2012

Corrected Consolidated Condensed Financial Statements

The Company corrected the consolidated condensed financial statements for the three and six months ended June 30, 2011 as follows (in thousands):


	Three Months Ended June 30, 2011						Six Months Ended June 30, 2011
	As Previously Reported			As Corrected			As Previously Reported			As Corrected
Provision for income taxes	$	49,981		$	45,483		$	58,761		$	54,263
Net loss	$	(63,564	)	$	(59,066	)	$	(50,746	)	$	(46,248	)
Net loss allocable to common shareholders	$	(66,189	)	$	(61,691	)	$	(55,996	)	$	(51,498	)
Loss per common share basic and diluted	$	(1.03	)	$	(0.96	)	$	(0.87	)	$	(0.80	)

Major Jurisdictions no Longer Subject to Income Tax Examinations by Tax Authorities


Tax Jurisdiction	Years No Longer Subject to Audit
U.S. federal		2007 and prior
California (United States)		2006 and prior
Canada		2007 and prior
Japan		2007 and prior
South Korea		2008 and prior
United Kingdom		2007 and prior

- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

+ References + Details

- Definition

Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded.

+ References + Details

Earnings per Common Share (Tables)

6 Months Ended

Jun. 30, 2012

Computation of Basic and Diluted Earnings Per Share


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Earnings (loss) per common share—basic
Net income (loss)	$	2,799		$	(59,066	)	$	34,601		$	(46,248	)
Less: Preferred stock dividends		(2,625	)		(2,625	)		(5,250	)		(5,250	)

Net income (loss) allocable to common shareholders	$	174		$	(61,691	)	$	29,351		$	(51,498	)

Weighted-average common shares outstanding—basic		65,060			64,425			65,021			64,365

Basic earnings (loss) per common share	$	0.00		$	(0.96	)	$	0.45		$	(0.80	)

Earnings (loss) per common share—diluted
Net income (loss)	$	174		$	(61,691	)	$	34,601		$	(51,498	)

Weighted-average common shares outstanding—basic		65,060			64,425			65,021			64,365
Preferred stock weighted-average shares outstanding		—			—			19,858			—
Options, restricted stock and other dilutive securities		52			—			71			—

Weighted-average common shares outstanding—diluted		65,112			64,425			84,950			64,365

Diluted earnings (loss) per common share	$	0.00		$	(0.96	)	$	0.41		$	(0.80	)

Inventories (Tables)

6 Months Ended

Jun. 30, 2012

Inventories

Inventories are summarized below (in thousands):


	June 30, 2012		December 31, 2011
Inventories:
Raw materials	$	52,289	$	46,976
Work-in-process		727		1,286
Finished goods		162,778		184,808

	$	215,794	$	233,070

Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2012

Intangible Assets by Major Asset Class

The following sets forth the intangible assets by major asset class (dollars in thousands):


	Useful Life (Years)		June 30, 2012						December 31, 2011
	Useful Life (Years)		Gross		Accumulated Amortization		Net Book Value		Gross		Accumulated Amortization		Net Book Value
Non-Amortizing:
Trade name, trademark and trade dress and other		NA	$	88,590	$	—	$	88,590	$	108,834	$	—	$	108,834
Amortizing:
Patents		2-16		36,459		29,982		6,477		36,459		28,908		7,551
Developed technology and other		1-9		12,487		7,556		4,931		12,387		6,837		5,550

Total intangible assets			$	137,536	$	37,538	$	99,998	$	157,680	$	35,745	$	121,935

Amortization Expense Related to Intangible Assets

Amortization expense related to intangible assets at June 30, 2012 in each of the next five fiscal years and beyond is expected to be incurred as follows (in thousands):


Remainder of 2012	$	1,757
2013		2,560
2014		1,882
2015		1,844
2016		1,834
2017		846
Thereafter		685

	$	11,408

Product Warranty (Tables)

6 Months Ended

Jun. 30, 2012

Reconciliation of Reserve for Warranty Expense

The following table provides a reconciliation of the activity related to the Company’s reserve for warranty expense (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Beginning balance	$	8,262		$	8,646		$	8,140		$	8,427
Provision		1,919			6,234			3,773			8,185
Claims paid/costs incurred		(2,318	)		(2,898	)		(4,050	)		(4,630	)

Ending balance	$	7,863		$	11,982		$	7,863		$	11,982

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2012

Future Purchase Commitments

Future purchase commitments as of June 30, 2012, are as follows (in thousands):


Remainder of 2012	$	49,505
2013		24,530
2014		8,845
2015		674
2016		463
2017		203
Thereafter		—

	$	84,220

Share-Based Employee Compensation (Tables)

6 Months Ended

Jun. 30, 2012

Share-Based Compensation Including Expense for Phantom Stock Units and Cash Settled Stock Appreciation Rights Granted to Employees


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Cost of sales	$	67		$	180		$	147		$	343
Operating expenses		944			5,640			3,729			8,191

Total cost of employee share-based compensation included in income (loss), before income tax		1,011			5,820			3,876			8,534
Amount of income tax recognized in earnings		(389	)		(2,383	)		(1,492	)		(3,284	)

Amount charged against net income (loss)	$	622		$	3,437		$	2,384		$	5,250

Impact on net income per common share:
Basic	$	(0.01	)	$	(0.05	)	$	(0.04	)	$	(0.08	)
Diluted	$	(0.01	)	$	(0.05	)	$	(0.03	)	$	(0.08	)

Weighted Average Black-Scholes Fair Value Assumptions used in Valuation of Stock Options Granted

The table below summarizes the weighted average Black-Scholes fair value assumptions used in the valuation of stock options granted during the six months ended June 30, 2012 and 2011.


	Six Months Ended June 30,
	2012		2011
Dividend yield		1.2%		1.4%
Expected volatility		50.6%		48.5%
Risk free interest rate		0.8%		2.0%
Expected life		4.9 years		5.0 years

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2012

Valuation of Foreign Currency Exchange Contracts by Pricing Levels

The following table summarizes the valuation of the Company’s foreign currency exchange contracts by the above pricing levels as of the valuation dates listed (in thousands):


	June 30, 2012				December 31, 2011
	Carrying Value		Observable market based inputs (Level 2)		Carrying Value		Observable market based inputs (Level 2)
Foreign currency derivative instruments—asset position	$	1,957	$	1,957	$	2,514	$	2,514
Foreign currency derivative instruments—liability position		1,289		1,289		3,746		3,746

Derivatives and Hedging (Tables)

6 Months Ended

Jun. 30, 2012

Summary of Fair Value of Derivative Instruments by Contract Type and Location of Asset and/or Liability on Consolidated Condensed Balance Sheets

Asset Derivatives

June 30, 2012

December 31, 2011

Derivatives not designated as hedging
instruments

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Foreign currency exchange contracts

Other current assets

1,957

Other current assets

2,514

Liability Derivatives

June 30, 2012

December 31, 2011

Derivatives not designated as hedging
instruments

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Foreign currency exchange contracts

Accounts payable and accrued expenses

1,289

Accounts payable and accrued expenses

3,746

Location of Gains and Losses in Consolidated Condensed Statements of Operations that were Recognized and Derivative Contract Type


		Amount of Gain (Loss) Recognized in Income on Derivative Instruments
Derivatives not designated as hedging instruments	Location of gain (loss) recognized in income on derivative instruments	Three Months Ended June 30,						Six Months Ended June 30,
Derivatives not designated as hedging instruments		2012			2011			2012		2011
Foreign currency exchange contracts	Other income (expense)	$	(2,200	)	$	(5,716	)	$	3,485	$	(7,054	)

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References + Details

Segment Information (Tables)

6 Months Ended

Jun. 30, 2012

Operating Segments

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Net sales
Golf clubs	$	231,285		$	219,081		$	473,837		$	460,067
Golf balls		49,838			54,733			92,384			99,346

	$	281,123		$	273,814		$	566,221		$	559,413

Income (loss) before provision for income taxes
Golf clubs⁽¹⁾⁽²⁾	$	17,953		$	12,308		$	50,595		$	41,613
Golf balls⁽¹⁾⁽²⁾		4,162			1,085			5,739			3,385
Reconciling items⁽³⁾		(17,120	)		(26,976	)		(19,829	)		(36,983	)

	$	4,995		$	(13,583	)	$	36,505		$	8,015

Additions to long-lived assets
Golf clubs	$	5,208		$	6,126		$	12,715		$	11,224
Golf balls		56			1,321			239			3,421

	$	5,264		$	7,447		$	12,954		$	14,645

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

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

•

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

•

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

•

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

•

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

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

•

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

•

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

•

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

•

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

•

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

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

Restructuring Initiatives - Additional Information (Detail) - USD ($)

3 Months Ended

6 Months Ended

12 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2012

Jun. 30, 2011

Dec. 31, 2011

Restructuring Cost and Reserve [Line Items]

Percentage of reduction in workforce

12.00%

Reorganization and Reinvestment Initiatives

Restructuring Cost and Reserve [Line Items]

Pre-tax restructuring charges to cost and expense

$ 283,000

$ 720,000

Expected annualized pre-tax savings from restructuring plan

50,000,000

Total future estimated charges

183,000

Reorganization and Reinvestment Initiatives | Cost of Goods Sold

Restructuring Cost and Reserve [Line Items]

Pre-tax restructuring charges to cost and expense

148,000

296,000

Reorganization and Reinvestment Initiatives | Operating expenses

Restructuring Cost and Reserve [Line Items]

Pre-tax restructuring charges to cost and expense

135,000

424,000

Reorganization and Reinvestment Initiatives | Golf clubs

Restructuring Cost and Reserve [Line Items]

Pre-tax restructuring charges to cost and expense

191,000

554,000

Reorganization and Reinvestment Initiatives | Golf balls

Restructuring Cost and Reserve [Line Items]

Pre-tax restructuring charges to cost and expense

29,000

108,000

Global Operations Strategy

Restructuring Cost and Reserve [Line Items]

Pre-tax restructuring charges to cost and expense

$ 5,813,000

$ 12,342,000

$ 39,496,000

Global Operations Strategy | Golf clubs

Restructuring Cost and Reserve [Line Items]

Pre-tax restructuring charges to cost and expense

3,816,000

8,356,000

Global Operations Strategy | Golf balls

Restructuring Cost and Reserve [Line Items]

Pre-tax restructuring charges to cost and expense

$ 2,031,000

$ 3,793,000

Cost Reduction Initiatives

Restructuring Cost and Reserve [Line Items]

Pre-tax restructuring charges to cost and expense

4,643,000

4,671,000

Expected annualized pre-tax savings from restructuring plan

52,000,000

Total future estimated charges

^[1]

34,300,000

Cost Reduction Initiatives | Minimum

Restructuring Cost and Reserve [Line Items]

Total future estimated charges

36,000,000

Cost Reduction Initiatives | Maximum

Restructuring Cost and Reserve [Line Items]

Total future estimated charges

$ 42,000,000

Percentage of future estimated charges expected to result in cash expenditures

50.00%

Cost Reduction Initiatives | Cost of Goods Sold

Restructuring Cost and Reserve [Line Items]

Pre-tax restructuring charges to cost and expense

937,000

$ 961,000

Cost Reduction Initiatives | Operating expenses

Restructuring Cost and Reserve [Line Items]

Pre-tax restructuring charges to cost and expense

3,706,000

3,710,000

Cost Reduction Initiatives | Golf clubs

Restructuring Cost and Reserve [Line Items]

Pre-tax restructuring charges to cost and expense

1,667,000

1,686,000

Cost Reduction Initiatives | Golf balls

Restructuring Cost and Reserve [Line Items]

Pre-tax restructuring charges to cost and expense

$ 324,000

$ 333,000

[1]	For purposes of this table, the Company used the middle of the range of future estimated charges.

Activity and Liability Balances Recorded as part of Global Operations Strategy Initiatives and Reorganization and Reinvestment Initiatives as well as Current Estimated Future Charges Relating Initiatives (Detail) - USD ($)	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2012	Mar. 31, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Global Operations Strategy
Restructuring Cost and Reserve [Line Items]
Charges to cost and expense			$ 5,813,000		$ 12,342,000	$ 39,496,000
Global Operations Strategy \| Workforce Reductions
Restructuring Cost and Reserve [Line Items]
Restructuring payable, beginning balance	$ 660,000	$ 1,219,000		$ 1,219,000
Cash payments	(159,000)	(559,000)
Restructuring payable, ending balance	501,000	660,000		501,000		1,219,000
Global Operations Strategy \| Transition Costs
Restructuring Cost and Reserve [Line Items]
Restructuring payable, beginning balance		55,000		55,000
Charges to cost and expense		21,000
Cash payments		(76,000)
Restructuring payable, ending balance						55,000
Reorganization and Reinvestment Initiatives
Restructuring Cost and Reserve [Line Items]
Charges to cost and expense	283,000			720,000
Total future estimated charges, at end of period				183,000
Reorganization and Reinvestment Initiatives \| Workforce Reductions
Restructuring Cost and Reserve [Line Items]
Restructuring payable, beginning balance	2,442,000	5,357,000		5,357,000
Charges to cost and expense	283,000	442,000
Cash payments	(1,675,000)	(3,357,000)
Restructuring payable, ending balance	1,050,000	2,442,000		1,050,000		5,357,000
Total future estimated charges, at end of period	183,000
Global Operations Strategy, Reorganization and Reinvestment Initiatives
Restructuring Cost and Reserve [Line Items]
Restructuring payable, beginning balance	3,102,000	6,631,000		6,631,000
Charges to cost and expense	283,000	463,000
Cash payments	(1,834,000)	(3,992,000)
Restructuring payable, ending balance	1,551,000	$ 3,102,000		$ 1,551,000		$ 6,631,000
Total future estimated charges, at end of period	$ 183,000

Activity and Liability Balances Recorded as part of Cost Reduction Initiatives as well as Current Estimated Future Charges Relating to Initiatives (Detail) - Cost Reduction Initiatives - USD ($)

3 Months Ended

6 Months Ended

Jun. 30, 2012

Restructuring Cost and Reserve [Line Items]

Charges to cost and expense

$ 4,643,000

$ 4,671,000

Non-cash items

(964,000)

Cash payments

(1,249,000)

Restructuring payable, ending balance

2,458,000

Total future estimated charges, at end of period

^[1]

34,300,000

Workforce Reductions

Restructuring Cost and Reserve [Line Items]

Charges to cost and expense

3,240,000

Non-cash items

(240,000)

Cash payments

(542,000)

Restructuring payable, ending balance

$ 2,458,000

2,458,000

Total future estimated charges, at end of period

^[1]

10,700,000

Transition Costs

Restructuring Cost and Reserve [Line Items]

Charges to cost and expense

707,000

Cash payments

(707,000)

Total future estimated charges, at end of period

^[1]

5,300,000

Asset Write-offs

Restructuring Cost and Reserve [Line Items]

Charges to cost and expense

724,000

Non-cash items

(724,000)

Total future estimated charges, at end of period

^[1]

$ 18,300,000

[1]	For purposes of this table, the Company used the middle of the range of future estimated charges.

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2011	Dec. 31, 2011
Income Taxes [Line Items]
Liability for income taxes associated with uncertain tax positions	$ 9,286,000
Tax benefits associated with potential transfer pricing adjustments	3,808,000
Tax benefits associated with state income taxes	1,089,000
Net amount of unrecognized tax benefit related to uncertain tax positions that would impact, if recognized, effective income tax rate	4,389,000
Prior period adjustment related to the overstatement of the valuation allowance for deferred taxes		$ 4,498,000	$ 4,498,000
Interest and penalties related to income tax matters	28,000	$ 41,000
Income tax accrued for payment of interest and penalties	$ 980,000			$ 890,000

Corrected Consolidated Condensed Financial Statements (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Provision for income taxes	$ 2,196	$ 45,483	$ 1,904	$ 54,263
Net loss	2,799	(59,066)	34,601	(46,248)
Net loss allocable to common shareholders	$ 174	$ (61,691)	$ 29,351	$ (51,498)
Loss per common share basic and diluted		$ (0.96)		$ (0.80)
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Provision for income taxes		$ 49,981		$ 58,761
Net loss		(63,564)		(50,746)
Net loss allocable to common shareholders		$ (66,189)		$ (55,996)
Loss per common share basic and diluted		$ (1.03)		$ (0.87)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Major Jurisdictions no Longer Subject to Income Tax Examinations by Tax Authorities (Detail)	6 Months Ended
	Jun. 30, 2012
U.S. federal
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2007 and prior
California (United States)
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2006 and prior
Canada
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2007 and prior
Japan
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2007 and prior
South Korea
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2008 and prior
United Kingdom
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2007 and prior

Sale of Buildings - Additional Information (Detail)	3 Months Ended		6 Months Ended
Sale of Buildings - Additional Information (Detail)	Jun. 30, 2012 USD ($)	Mar. 31, 2011 USD ($) Property	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)
Sale Leaseback Transaction [Line Items]
Number of buildings sold and leased-back \| Property		3
Sale and lease-back agreement term, minimum		1 year
Sale and lease-back agreement term, maximum		5 years
Net proceeds from sale and lease-back		$ 18,079,000
Net gain on sale and lease-back		12,668,000
Lease-back transaction deferred gain recognized	$ 399,000		$ 909,000
Lease-back transaction deferred gain		6,498,000
General and Administrative Expenses
Sale Leaseback Transaction [Line Items]
Net gain on sale and lease-back		$ 6,170,000		$ 6,170,000

- Definition

The gross proceeds received from the asset(s) sold in connection with the transaction involving the sale of property to another party and the lease of the property back to the seller less the costs incurred in connection with the transaction, such as closing and deferred financing costs.

+ References + Details

Preferred Stock Offering - Additional Information (Detail) $ / shares in Units, $ in Thousands	1 Months Ended	6 Months Ended
	Jun. 30, 2009 USD ($) $ / shares shares	Jun. 30, 2012 USD ($) shares $ / shares	Dec. 31, 2011 $ / shares
Class of Stock [Line Items]
Preferred stock, shares issued \| shares	1,400,000
Preferred stock, par value	$ 0.01	$ 0.01	$ 0.01
Gross proceed from Preferred Stock \| $	$ 140,000
Preferred stock, issuance cost \| $	$ 6,085
Preferred stock, liquidation preference, per share	$ 100
Preferred stock, cumulative dividend rate (in percent)	7.50%
Preferred stock, cumulative dividend rate per share	$ 7.50
Preferred stock, liquidation value \| $		$ 140,438
Common shares issuable per share of convertible preferred stock \| shares		14.1844
Preferred stock, conversion price per share		$ 7.05
Common stock issuable upon conversion, shares \| shares		19,900,000
Redemption of preferred, term		The Company, at its option, may redeem the preferred stock, in whole or in part, at a price equal to 100% of the liquidation preference, plus all accrued and unpaid dividends.
Percentage of per share price of liquidation preference for redemption		100.00%

Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Earnings (loss) per common share-basic
Net income (loss)	$ 2,799	$ (59,066)	$ 34,601	$ (46,248)
Less: Preferred stock dividends	(2,625)	(2,625)	(5,250)	(5,250)
Net income (loss) allocable to common shareholders	$ 174	$ (61,691)	$ 29,351	$ (51,498)
Weighted-average common shares outstanding-basic	65,060	64,425	65,021	64,365
Basic earnings (loss) per common share	$ 0.00	$ (0.96)	$ 0.45	$ (0.80)
Earnings (loss) per common share-diluted
Net income (loss)	$ 174	$ (61,691)	$ 34,601	$ (51,498)
Weighted-average common shares outstanding-basic	65,060	64,425	65,021	64,365
Preferred stock weighted-average shares outstanding			19,858
Options, restricted stock and other dilutive securities	52		71
Weighted-average common shares outstanding-diluted	65,112	64,425	84,950	64,365
Diluted earnings (loss) per common share	$ 0.00	$ (0.96)	$ 0.41	$ (0.80)

Earnings per Common Share - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Earnings Per Share Disclosure [Line Items]
Antidilutive securities excluded from computation of earnings per share	29,100,000	30,902,000	9,353,000	30,893,000
Preferred Stock
Earnings Per Share Disclosure [Line Items]
Antidilutive securities excluded from computation of earnings per share	19,858,000	19,858,000		19,858,000

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Inventories:
Raw materials	$ 52,289	$ 46,976
Work-in-process	727	1,286
Finished goods	162,778	184,808
Inventories	$ 215,794	$ 233,070

Intangible Assets by Major Asset Class (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Intangible Assets by Major Class [Line Items]
Gross	$ 137,536	$ 157,680
Accumulated Amortization	37,538	35,745
Net Book Value	99,998	121,935
Trade name, trademark and trade dress and other
Intangible Assets by Major Class [Line Items]
Gross	88,590	108,834
Net Book Value	88,590	108,834
Patents
Intangible Assets by Major Class [Line Items]
Gross	36,459	36,459
Accumulated Amortization	29,982	28,908
Net Book Value	$ 6,477	7,551
Patents \| Minimum
Intangible Assets by Major Class [Line Items]
Useful Life (years)	2 years
Patents \| Maximum
Intangible Assets by Major Class [Line Items]
Useful Life (years)	16 years
Developed technology and other
Intangible Assets by Major Class [Line Items]
Gross	$ 12,487	12,387
Accumulated Amortization	7,556	6,837
Net Book Value	$ 4,931	$ 5,550
Developed technology and other \| Minimum
Intangible Assets by Major Class [Line Items]
Useful Life (years)	1 year
Developed technology and other \| Maximum
Intangible Assets by Major Class [Line Items]
Useful Life (years)	9 years

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($)	1 Months Ended		6 Months Ended
	Mar. 31, 2012	Feb. 29, 2012	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Goodwill and Intangible Assets Disclosure [Line Items]
Aggregate amortization expense on intangible assets			$ 1,793,000	$ 2,010,000
Goodwill			29,128,000		$ 29,203,000
Decrease in goodwill due to foreign currency fluctuations			(75,000)
Gross goodwill before impairments			30,248,000		$ 30,323,000
Proceeds from sales of intangible assets	$ 19,900,000	$ 6,961,000	26,861,000
Net book value of intangible assets sold	$ 20,244,000
Pre-tax net gain from sale of intangible assets			$ 6,602,000

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Amortization Expense Related to Intangible Assets (Detail) $ in Thousands	Jun. 30, 2012 USD ($)
Expected Amortization Expense [Line Items]
Remainder of 2012	$ 1,757
2013	2,560
2014	1,882
2015	1,844
2016	1,834
2017	846
Thereafter	685
Finite-Lived Intangible Assets, Net, Total	$ 11,408

Investments - Additional Information (Detail)	Jun. 30, 2012 USD ($)
Schedule of Cost-method Investments [Line Items]
Investment in TopGolf International, Inc.	$ 20,699,000
Maximum
Schedule of Cost-method Investments [Line Items]
Percentage of ownership interest in TopGolf International, Inc.	20.00%

- Definition

This item represents the aggregate carrying amount of all cost-method investments as reported on or included in the balance sheet. The original cost of the investments may differ from the aggregate carrying amount disclosed due to various adjustments such as: (i) dividends received in excess of earnings after the date of investment that are considered a return of investment and therefore recorded as reductions to cost of the investment, or (ii) a series of operating losses of an investee or other factors which may indicate that a decrease in value of the investment has occurred which is other than temporary and accordingly such decrease in value has been recognized.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.12)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 325
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6872867&loc=d3e40691-111596

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 325
-SubTopic 20
-Section 35
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6383889&loc=d3e40346-111594

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 6
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 18
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-1
-Paragraph 22
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Non-Controlling Interest - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2011	Jun. 30, 2012
Investments in and Advances to Affiliates [Line Items]
Amount loaned to Mauritius	$ 3,200,000
Loan to Mauritius, outstanding	$ 1,988,000	$ 1,988,000

Reconciliation of Reserve for Warranty Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Product Liability Contingency [Line Items]
Beginning balance	$ 8,262	$ 8,646	$ 8,140	$ 8,427
Provision	1,919	6,234	3,773	8,185
Claims paid/costs incurred	(2,318)	(2,898)	(4,050)	(4,630)
Ending balance	$ 7,863	$ 11,982	$ 7,863	$ 11,982

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable for estimated claims under standard and extended warranty protection rights granted to customers. For classified balance sheets, represents the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

Financing Arrangements - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Debt Instrument [Line Items]
Asset-based credit facility, maximum borrowing capacity	$ 230,000,000
Amount outstanding under letters of credit	3,355,000
Asset-based credit facility	70,150,000
Cash and cash equivalents	$ 27,986,000	$ 43,023,000	$ 66,532,000	$ 55,043,000
Asset-based credit facility, maturity date	Jun. 30, 2016
Maximum amount of consolidated funded including borrowing outstanding	$ 170,423,000
Average outstanding borrowing	$ 76,674,000
Description of condition to reduce applicable margin to interest rate	All applicable margins will be permanently reduced by 0.25% if EBITDA, as defined in the ABL Facility, meets or exceeds $25,000,000 over any trailing twelve-month period, and will be permanently reduced by an additional 0.25% if EBITDA meets or exceeds $50,000,000 over any trailing twelve-month period.
Asset-based credit facility, interest rate	4.75%
Borrowing base availability	$ 25,000,000
Asset-based credit facility, origination fees	4,133,000
Unamortized origination fees	3,490,000	3,194,000
Asset-based credit facility, origination fees other current assets	873,000	650,000
Asset-based credit facility, origination fees other long-term assets	2,618,000	$ 2,275,000
UNITED STATES
Debt Instrument [Line Items]
Asset-based credit facility, maximum borrowing capacity	158,333,000
Asset-based credit facility, available for letter of credit	20,000,000
Canada
Debt Instrument [Line Items]
Asset-based credit facility, maximum borrowing capacity	31,667,000
Asset-based credit facility, available for letter of credit	5,000,000
United Kingdom
Debt Instrument [Line Items]
Asset-based credit facility, maximum borrowing capacity	40,000,000
Asset-based credit facility, available for letter of credit	$ 2,000,000
Minimum
Debt Instrument [Line Items]
Asset-based credit facility, monthly fees	0.375%
Maximum
Debt Instrument [Line Items]
Asset-based credit facility, monthly fees	0.50%
Scenario 1
Debt Instrument [Line Items]
Applicable margin rate reduction, (in percent)	0.25%
Scenario 1 \| Minimum
Debt Instrument [Line Items]
Amount of EBITDA to reduce applicable margin	$ 25,000,000
Scenario 2
Debt Instrument [Line Items]
Applicable margin rate reduction, (in percent)	0.25%
Scenario 2 \| Minimum
Debt Instrument [Line Items]
Amount of EBITDA to reduce applicable margin	$ 50,000,000

Commitments and Contingencies - Additional Information (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2012 USD ($)
Long-term Purchase Commitment [Line Items]
Unconditional purchase obligations, range minimum	1 year
Unconditional purchase obligations, range maximum	6 years
Unconditional purchase obligations over next six years	$ 84,220

Future Purchase Commitments (Detail) $ in Thousands	Jun. 30, 2012 USD ($)
Long-term Purchase Commitment [Line Items]
Remainder of 2012	$ 49,505
2013	24,530
2014	8,845
2015	674
2016	463
2017	203
Thereafter
Unconditional purchase obligations over next six years	$ 84,220

Share-Based Compensation Including Expense for Phantom Stock Units and Cash Settled Stock Appreciation Rights Granted to Employees (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Cost of employee share-based compensation included in income (loss), before income tax	$ 1,011	$ 5,820	$ 3,876	$ 8,534
Amount of income tax recognized in earnings	(389)	(2,383)	(1,492)	(3,284)
Amount charged against net income (loss)	$ 622	$ 3,437	$ 2,384	$ 5,250
Impact on net income per common share:
Basic	$ (0.01)	$ (0.05)	$ (0.04)	$ (0.08)
Diluted	$ (0.01)	$ (0.05)	$ (0.03)	$ (0.08)
Cost of sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Cost of employee share-based compensation included in income (loss), before income tax	$ 67	$ 180	$ 147	$ 343
Operating expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Cost of employee share-based compensation included in income (loss), before income tax	$ 944	$ 5,640	$ 3,729	$ 8,191

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Share-Based Employee Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, shares granted			5	1,731
Stock options granted during period, weighted average grant-date fair value			$ 2.63	$ 2.94
Compensation expense related to stock options	$ 621	$ 962	$ 1,056	$ 1,817
Stock compensation expense	1,011	5,820	3,876	8,534
Accrued employee compensation and benefits	23,522		23,522		$ 23,785
Accrued employee compensation and benefits, noncurrent	$ 6,519		$ 6,519		6,970
Executive Compensation Contracts
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense		$ 2,852		3,551
Total value of share-based awards granted				11,730
Phantom Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock units granted	117	679	401
Stock units, weighted average grant-date fair value	$ 5.60	$ 7.51	$ 6.37
Stock units outstanding, fair value	$ 2,084	$ 8,313	$ 2,084	8,313
Stock compensation expense	138	$ 1,216	995	$ 1,633
Accrued employee compensation and benefits	1,162		1,162		1,325
Accrued employee compensation and benefits, noncurrent	$ 923		$ 923		594
Phantom Stock Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			2 years
Phantom Stock Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock units granted	83	58	383	61
Stock units, weighted average grant-date fair value	$ 6.01	$ 6.94	$ 6.38	$ 7.01
Total unrecognized compensation expense related to non-vested shares granted	$ 3,063		$ 3,063
Compensation expense related to restricted stocks	$ 488	$ 688	$ 839	$ 1,328
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock units granted	289		3,400
Stock units, weighted average grant-date fair value	$ 1.78		$ 2.07
Stock compensation expense	$ (236)		$ 985
Accrued employee compensation and benefits	922		922		$ 321
Accrued employee compensation and benefits, noncurrent	$ 385		$ 385

Weighted Average Black-Scholes Fair Value Assumptions used in Valuation of Stock Options Granted (Detail)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Dividend yield	1.20%	1.40%
Expected volatility	50.60%	48.50%
Risk free interest rate	0.80%	2.00%
Expected life	4 years 329 days	5 years

Valuation of Foreign Currency Exchange Contracts by Pricing Levels (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency derivative instruments-asset position, carrying value	$ 1,957	$ 2,514
Foreign currency derivative instruments-liability position, carrying value	1,289	3,746
Observable market based inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency exchange contracts, asset derivatives not designated as hedging instruments, fair value	1,957	2,514
Foreign currency exchange contracts, liability derivatives not designated as hedging instruments, fair value	$ 1,289	$ 3,746

Derivatives and Hedging - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Derivative [Line Items]
Notional amount of foreign currency exchange contracts	$ 186,097,000		$ 186,097,000		$ 165,533,000
Actual foreign currency transactional gains (losses)	(1,506,000)	$ 2,479,000	(2,692,000)	$ 2,544,000
Contracts used to hedge exposures in operating results
Derivative [Line Items]
Notional amount of foreign currency exchange contracts	85,637,000		85,637,000		131,311,000
Contracts used to hedge balance sheet exposures denominated in foreign currencies
Derivative [Line Items]
Notional amount of foreign currency exchange contracts	$ 100,460,000		$ 100,460,000		$ 34,222,000

Summary of Fair Value of Derivative Instruments by Contract Type and Location of Asset and/or Liability on Consolidated Condensed Balance Sheets (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Other current assets
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, asset derivatives not designated as hedging instruments, fair value	$ 1,957	$ 2,514
Accounts payable and accrued expenses
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, liability derivatives not designated as hedging instruments, fair value	$ 1,289	$ 3,746

Location of Gains and Losses in Consolidated Condensed Statements of Operations that were Recognized and Derivative Contract Type (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Other income (expense)
Derivative Instruments, Gain (Loss) [Line Items]
Foreign currency exchange contracts, amount of gain (loss) recognized in income on derivatives not designated as hedging instruments	$ (2,200)	$ (5,716)	$ 3,485	$ (7,054)

Operating Segments (Detail) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2012

Jun. 30, 2011

Segment Reporting Information [Line Items]

Net sales

$ 281,123

$ 273,814

$ 566,221

$ 559,413

Income (loss) before income taxes

4,995

(13,583)

36,505

8,015

Additions to long-lived assets

5,264

7,447

12,954

14,645

Golf clubs

Segment Reporting Information [Line Items]

Net sales

231,285

219,081

473,837

460,067

Income (loss) before income taxes

^[1],[2]

17,953

12,308

50,595

41,613

Additions to long-lived assets

5,208

6,126

12,715

11,224

Golf balls

Segment Reporting Information [Line Items]

Net sales

49,838

54,733

92,384

99,346

Income (loss) before income taxes

^[1],[2]

4,162

1,085

5,739

3,385

Additions to long-lived assets

1,321

239

3,421

Reconciling items

Segment Reporting Information [Line Items]

Income (loss) before income taxes

^[3]

$ (17,120)

$ (26,976)

$ (19,829)

$ (36,983)

[1]	Certain prior period amounts were reclassified to conform with the current year presentation.
[2]	The Company's golf clubs and golf balls operating segments absorbed the following pre-tax charges: • $1,667,000 and $324,000, respectively, in connection with the Company's Cost Reduction Initiatives during the three months ended June 30, 2012; • $1,686,000 and $333,000, respectively, in connection with the Company's Cost Reduction Initiatives during the six months ended June 30, 2012; • $3,816,000 and $2,031,000, respectively, in connection with the final phase of the Company's GOS Initiatives during the three months ended June 30, 2011; and • $8,356,000 and $3,793,000, respectively, in connection with the final phase of the Company's GOS Initiatives during the six months ended June 30, 2011.
[3]	Reconciling items represent corporate general and administrative expenses and other income (expense) not included by management in determining segment profitability. The reconciling items include the following pre-tax items; • Pre-tax charges of $2,652,000 in connection with the Cost Reduction Initiatives in both the three and six months ended June 30, 2012; • A pre-tax gain of $6,602,000 in connection with the sale of the Top-Flite and Ben Hogan brands during the six months ended June 30, 2012; • Pre-tax charges of $5,162,000 in connection with the Company's Reorganization and Reinvestment Initiatives in both the three and six months ended June 30, 2011; • A pre-tax impairment charge of $5,413,000 in connection with certain trademarks and trade names in both the three and six months ended June 30, 2011; and • A pre-tax gain of $6,170,000 in connection with the sale of certain buildings during the six months ended June 30, 2011.

Operating Segments (Parenthetical) (Detail) - USD ($)	3 Months Ended			6 Months Ended		12 Months Ended
Operating Segments (Parenthetical) (Detail) - USD ($)	Jun. 30, 2012	Jun. 30, 2011	Mar. 31, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Segment Reporting Information [Line Items]
Gain on sale of intangible assets				$ 6,602,000
Impairment charge		$ 5,413,000			$ 5,413,000
Net gain on sale and lease-back			$ 12,668,000
Cost Reduction Initiatives
Segment Reporting Information [Line Items]
Pre-tax restructuring charges to cost and expense	$ 4,643,000			4,671,000
Global Operations Strategy
Segment Reporting Information [Line Items]
Pre-tax restructuring charges to cost and expense		5,813,000			12,342,000	$ 39,496,000
Reorganization and Reinvestment Initiatives
Segment Reporting Information [Line Items]
Pre-tax restructuring charges to cost and expense	283,000			720,000
General and Administrative Expenses
Segment Reporting Information [Line Items]
Net gain on sale and lease-back			$ 6,170,000		6,170,000
Golf clubs \| Cost Reduction Initiatives
Segment Reporting Information [Line Items]
Pre-tax restructuring charges to cost and expense	1,667,000			1,686,000
Golf clubs \| Global Operations Strategy
Segment Reporting Information [Line Items]
Pre-tax restructuring charges to cost and expense		3,816,000			8,356,000
Golf clubs \| Reorganization and Reinvestment Initiatives
Segment Reporting Information [Line Items]
Pre-tax restructuring charges to cost and expense	191,000			554,000
Golf balls \| Cost Reduction Initiatives
Segment Reporting Information [Line Items]
Pre-tax restructuring charges to cost and expense	324,000			333,000
Golf balls \| Global Operations Strategy
Segment Reporting Information [Line Items]
Pre-tax restructuring charges to cost and expense		2,031,000			3,793,000
Golf balls \| Reorganization and Reinvestment Initiatives
Segment Reporting Information [Line Items]
Pre-tax restructuring charges to cost and expense	29,000			108,000
Corporate general and administrative expenses \| Cost Reduction Initiatives
Segment Reporting Information [Line Items]
Pre-tax restructuring charges to cost and expense	$ 2,652,000			$ 2,652,000
Corporate general and administrative expenses \| Reorganization and Reinvestment Initiatives
Segment Reporting Information [Line Items]
Pre-tax restructuring charges to cost and expense		$ 5,162,000			$ 5,162,000