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Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2016 shares
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
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	93,941,287

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 35,136	$ 49,801
Accounts receivable, net	233,210	115,607
Inventories	186,149	208,883
Income taxes receivable	1,857	487
Other current assets	14,346	16,709
Total current assets	470,698	391,487
Property, plant and equipment, net	55,631	55,808
Intangible assets, net	88,769	88,782
Goodwill	26,777	26,500
Deferred taxes, net	6,942	6,962
Investment in golf-related ventures (Note 6)	54,575	53,315
Other assets	8,480	8,370
Total assets	711,872	631,224
Current liabilities:
Accounts payable and accrued expenses	110,268	122,620
Accrued employee compensation and benefits	22,025	33,518
Asset-based credit facilities	78,969	14,969
Accrued warranty expense	6,350	5,706
Income tax liability	2,741	1,823
Total current liabilities	220,353	178,636
Long-term liabilities:
Income tax payable	3,224	3,476
Deferred taxes, net	34,866	35,093
Long-term incentive compensation and other	770	1,074
Commitments and contingencies (Note 9)
Shareholders’ equity:
Preferred stock, $0.01 par value, 3,000,000 shares authorized, none issued and outstanding at March 31, 2016 and December 31, 2015	0	0
Common stock, $0.01 par value, 240,000,000 shares authorized, 94,214,295 and 93,769,199 shares issued at March 31, 2016 and December 31, 2015, respectively	942	938
Additional paid-in capital	324,922	322,793
Retained earnings	138,451	101,047
Accumulated other comprehensive loss	(9,248)	(11,813)
Less: Common stock held in treasury, at cost, 273,008 and 2,075 shares at March 31, 2016 and December 31, 2015, respectively	(2,408)	(20)
Total shareholders’ equity	452,659	412,945
Total liabilities and shareholders’ equity	$ 711,872	$ 631,224

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	240,000,000	240,000,000
Common stock, shares issued	94,214,295	93,769,199
Common Stock held in treasury, shares	273,008	2,075

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Net sales	$ 274,053	$ 284,179
Cost of sales	141,661	156,913
Gross profit	132,392	127,266
Operating expenses:
Selling expense	63,286	66,319
General and administrative expense	15,544	16,099
Research and development expense	8,234	7,916
Total operating expenses	87,064	90,334
Income from operations	45,328	36,932
Interest income	162	71
Interest expense	(783)	(2,092)
Other income (expense), net	(4,916)	2,546
Income before income taxes	39,791	37,457
Income tax provision	1,401	1,638
Net income	$ 38,390	$ 35,819
Earnings per common share:
Basic (in dollars per share)	$ 0.41	$ 0.46
Diluted (in dollars per share)	$ 0.40	$ 0.39
Weighted-average common shares outstanding:
Basic (in shares)	93,952	77,753
Diluted (in shares)	95,424	93,896
Dividends paid per common share (usd per share)	$ 0.01	$ 0.01

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 38,390	$ 35,819
Other comprehensive income, before tax:
Change in fair value of derivative instruments	(2,287)	1,856
Foreign currency translation adjustments	4,761	(6,978)
Comprehensive income, before tax	40,864	30,697
Income tax benefit related to items of other comprehensive income	91	0
Comprehensive income	$ 40,955	$ 30,697

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 38,390	$ 35,819
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	4,157	4,703
Deferred taxes	0	(15)
Share-based compensation	2,194	1,826
Gain on disposal of long-lived assets and deferred gain amortization	(270)	(257)
Discount amortization on convertible notes	0	202
Change in assets and liabilities:
Accounts receivable, net	(114,973)	(155,309)
Inventories	25,625	23,357
Other assets	(2,821)	1,129
Accounts payable and accrued expenses	(11,793)	9,274
Accrued employee compensation and benefits	(11,641)	(11,111)
Accrued warranty expense	644	801
Income taxes receivable/payable	(718)	(295)
Other liabilities	(253)	(472)
Net cash used in operating activities	(71,459)	(90,348)
Cash flows from investing activities:
Capital expenditures	(4,963)	(2,393)
Investment in golf-related ventures	(1,260)	0
Collection of note receivable	3,104	0
Proceeds from sales of property and equipment	6	1
Net cash used in investing activities	(3,113)	(2,392)
Cash flows from financing activities:
Proceeds from asset-based credit facilities, net	64,000	79,083
Exercise of stock options	384	2,239
Dividends paid	(941)	(780)
Acquisition of treasury stock	(2,878)	(1,402)
Net cash provided by financing activities	60,565	79,140
Effect of exchange rate changes on cash and cash equivalents	(658)	(799)
Net decrease in cash and cash equivalents	(14,665)	(14,399)
Cash and cash equivalents at beginning of period	49,801	37,635
Cash and cash equivalents at end of period	35,136	23,236
Supplemental disclosures:
Cash paid for income taxes, net	2,122	1,929
Cash paid for interest and fees	527	2,812
Noncash investing and financing activities:
Issuance of treasury stock for compensatory stock awards released from restriction	0	3,300
Accrued capital expenditures at period-end	$ 793	$ 656

CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY - 3 months ended Mar. 31, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Beginning Balance (in shares) at Dec. 31, 2015		93,769				(2)
Beginning Balance at Dec. 31, 2015	$ 412,945	$ 938	$ 322,793	$ 101,047	$ (11,813)	$ (20)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Acquisition of treasury stock (in shares)						(328)
Acquisition of treasury stock	(2,878)					$ (2,878)
Exercise of stock options (in shares)		0				57
Exercise of stock options	384	$ 0	(106)			$ 490
Compensatory awards released from restriction (in shares)		440				0
Compensatory awards released from restriction		$ 4	(4)			$ 0
Share-based compensation	2,194		2,194
Stock dividends (in shares)		5				0
Stock dividends			45	(45)		$ 0
Cash dividends	(941)			(941)
Equity adjustment from foreign currency translation	4,761				4,761
Change in fair value of derivative instruments	(2,287)				(2,196)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(2,196)
Net income	38,390			38,390
Ending Balance (in shares) at Mar. 31, 2016		94,214				(273)
Ending Balance at Mar. 31, 2016	$ 452,659	$ 942	$ 324,922	$ 138,451	$ (9,248)	$ (2,408)

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Note 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 (the “Commission”). Accordingly, certain information and 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, 2015 filed with the Commission. These consolidated condensed financial statements, in the opinion of management, include all the normal and recurring 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 March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." This amendment is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendment is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early application is permitted. The Company is currently evaluating the impact of this guidance on its consolidated condensed financial statements and disclosures. In March 2016, the FASB issued ASU 2016-04, "Liabilities —Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products." The amendment clarifies when it is acceptable to recognize the unredeemed portion of prepaid gift cards into income, and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated condensed financial statements and disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged and lessees will no longer be provided with a source of off-balance sheet financing. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the impact this ASU will have on its consolidated condensed financial statements and disclosures. In January 2016, the FASB issued ASU No. 2016-01, "'Financial Instruments─Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The amendment requires (i) equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, (ii) public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes and (iii) separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). This amendment eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. This amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact this ASU will have on its consolidated condensed financial statements and disclosures. In July 2015, the FASB issued ASU No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The amendments apply to inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure in-scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in this update more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company does not expect that the adoption of this amendment will have a material impact on its consolidated condensed financial statements. In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern." This ASU is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures, and provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. Until the issuance of this ASU, U.S. GAAP lacked guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. The amendments are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect that the adoption of this amendment will have a material impact on its consolidated condensed financial statements and disclosures. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers: (Topic 606)." This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, "Revenue Recognition," and most industry-specific guidance. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, "Property, Plant, and Equipment," and intangible assets within the scope of Topic 350, "Intangibles-Goodwill and Other") are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact this ASU will have on its consolidated condensed financial statements and disclosures.

Financing Arrangements	3 Months Ended
Financing Arrangements	Mar. 31, 2016
Debt Disclosure [Abstract]
Financing Arrangements	Note 2. Financing Arrangements In addition to cash on hand, as well as cash generated from operations, the Company relies on its primary and Japan asset-based revolving credit facilities to manage seasonal fluctuations in liquidity and to provide additional liquidity when the Company’s operating cash flows are not sufficient to fund the Company’s requirements. As of March 31, 2016, the Company had $78,969,000 outstanding under both facilities, $1,007,000 in outstanding letters of credit, and $35,136,000 in cash and cash equivalents. The combined maximum amount that could have been outstanding under both facilities on March 31, 2016, after letters of credit was $192,146,000, resulting in total available liquidity including cash on hand of $227,282,000 compared to the maximum amount that could have been outstanding under both facilities on March 31, 2015 of $183,732,000, and total available liquidity including cash on hand of $206,968,000. Primary Asset-Based Revolving Credit Facility The Company's primary credit facility is 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 $160,000,000 U.S. facility, a $25,000,000 Canadian facility and a $45,000,000 United Kingdom facility, in each case subject to borrowing base availability under the applicable facility. The amounts outstanding under the ABL Facility are secured by certain assets, including cash (to the extent pledged by the Company), inventory and accounts receivable of the Company’s subsidiaries in the United States, Canada and the United Kingdom. As of March 31, 2016, the Company had $65,200,000 in borrowings outstanding under the ABL Facility and $1,007,000 in outstanding letters of credit. The maximum amount of additional indebtedness (as defined by the ABL Facility) that could have been outstanding on March 31, 2016, after outstanding borrowings and letters of credit, was approximately $109,180,000. The maximum availability under the ABL Facility fluctuates with the general seasonality of the business and increases and decreases with changes in the Company’s inventory and accounts receivable balances. The maximum availability is at its highest during the first half of the year when the Company’s inventory and accounts receivable balances are higher and is lower during the second half of the year when the Company's inventory levels decrease and its accounts receivable decrease as a result of cash collections and lower sales. Average outstanding borrowings during the three months ended March 31, 2016 were $43,412,000, and the average amount available under the ABL Facility during the three months ended March 31, 2016, after outstanding borrowings and letters of credit, was approximately $95,160,000. Amounts borrowed under the ABL Facility may be repaid and borrowed as needed. The entire outstanding principal amount (if any) is due and payable on June 23, 2019. The ABL Facility includes certain restrictions including, among other things, restrictions on the incurrence of additional debt, liens, stock repurchases and other restricted payments, asset sales, investments, mergers, acquisitions and affiliate transactions. In addition, the ABL Facility imposes restrictions on the amount the Company could pay in annual cash dividends, including meeting certain restrictions on the amount of additional indebtedness and requirements to maintain a certain fixed charge coverage ratio under certain circumstances. As of March 31, 2016, the maximum amount that the Company could have paid out in dividends was $74,680,000. As of March 31, 2016, the Company was in compliance with all financial covenants of the ABL Facility. Additionally, the Company is 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, as amended, falls below $23,000,000. The Company’s borrowing base availability was above $23,000,000 during the three months ended March 31, 2016, and the Company was in compliance with the fixed charge coverage ratio as of March 31, 2016. Had the Company not been in compliance with the fixed charge coverage ratio as of March 31, 2016, the Company's maximum amount of additional indebtedness that could have been outstanding on March 31, 2016 would have been reduced by $23,000,000. The interest rate applicable to outstanding loans under the ABL Facility fluctuates depending on the Company’s “availability ratio," which is expressed as a percentage of (i) the average daily availability under the ABL Facility to (ii) the sum of the Canadian, the U.K. and the U.S. borrowing bases, as adjusted. The applicable margin for any month will be reduced by 0.25% if the Company’s availability ratio is greater than or equal to 67% and the Company’s “leverage ratio” (as defined below) is less than 4.0 to 1.0 as of the last day of the month for which financial statements have been delivered, so long as no default or event of default exists. The Company’s “leverage ratio” is the ratio of the amount of debt for borrowed money to the twelve-month trailing EBITDA (as defined in the ABL Facility), each determined on a consolidated basis. At March 31, 2016, the Company’s trailing 12 months average interest rate applicable to its outstanding loans under the ABL Facility, including the fees described below, was 4.58%. In addition, the ABL Facility provides for monthly fees ranging from 0.25% to 0.375% 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 fees incurred in connection with the origination and amendment of the ABL Facility totaled $4,970,000, which are amortized into interest expense over the term of the ABL Facility agreement. Unamortized fees at March 31, 2016 and December 31, 2015 totaled $1,662,000 and $1,781,000, respectively, of which $511,000 and $509,000 were included in other current assets, respectively, and $1,151,000 and $1,272,000 were included in other assets, respectively, in the accompanying consolidated condensed balance sheets. Japan ABL Facility The Company has a separate asset-based loan and guarantee agreement between its subsidiary in Japan and The Bank of Tokyo-Mitsubishi UFG, Ltd and The Development Bank of Japan (as amended, the "Japan ABL Facility"). The Company can borrow up to 2 billion Yen (or U.S. $17,766,000, using the exchange rate in effect as of March 31, 2016) under this credit facility over a two-year term, and the amounts outstanding are secured by certain assets, including eligible inventory. The Japan ABL Facility is subject to an effective interest rate equal to TIBOR plus 0.25%. At March 31, 2016, the trailing 12 months average interest rate applicable to the Company's outstanding loans under the Japan ABL Facility, together with fees was 2.48% and includes certain restrictions including covenants related to certain pledged assets and financial performance metrics. As of March 31, 2016, the Company was in compliance with these covenants. There were 1.6 billion Yen (or U.S. $13,769,000 using the exchange rate in effect as of March 31, 2016) in borrowings outstanding under this facility at March 31, 2016, and the maximum amount that could have been outstanding at March 31, 2016 was 2 billion Yen (or U.S. $17,766,000). Convertible Senior Notes In 2012, the Company issued $112,500,000 of 3.75% Convertible Senior Notes (the “convertible notes”). The convertible notes were convertible at the option of the note holder at any time on or prior to the close of business on the business day immediately preceding August 15, 2019, into shares of common stock at an initial conversion rate of 133.3333 shares per $1,000 principal amount of convertible notes, which is equal to an aggregate of 15,000,000 shares of common stock at a conversion price of approximately $7.50 per share, subject to customary anti-dilution adjustments. In connection with these convertible notes, the Company incurred transactional fees of $3,537,000, which were being amortized over the term of the convertible notes. During the second half of 2015, the convertible notes were retired pursuant to certain exchange transactions and shareholder conversions, which resulted, among other things, in the issuance of 15,000,000 shares of the Company's common stock to the note holders. In connection with the retirement of the convertible notes, the Company recorded $108,955,000 in shareholders' equity as of December 31, 2015, net of the outstanding discount of $3,395,000. There were no convertible notes outstanding as of March 31, 2016 and December 31, 2015. In connection with the elimination of the convertible notes, the Company accelerated the amortization of transaction fees during the second half of 2015. As a result, there were no transaction fees amortized during the three months ended March 31, 2016. Total interest and amortization expense recognized in the three months ended March 31, 2015 was $1,258,000.

Earnings per Common Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings per Common Share

Note 3. Earnings per Common Share

Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding for the period.

Diluted earnings per common share reflects the potential dilution that could occur if convertible securities, or other contracts to issue common stock, were exercised or converted into common stock. Dilutive securities are included in the calculation of diluted earnings per common share using the treasury stock method and the if-converted method in accordance with Accounting Standards Codification ("ASC") Topic 260, “Earnings per Share.” Dilutive securities include convertible notes, options granted pursuant to the Company’s stock option plans and outstanding restricted stock units and performance share units granted to employees and non-employee directors (see Note 10).

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 per share is higher than basic earnings per share.

The following table summarizes the computation of basic and diluted earnings per share (in thousands, except per share data):



	Three Months Ended March 31,
	2016		2015
Earnings per common share—basic
Net income	$	38,390	$	35,819
Weighted-average common shares outstanding—basic	93,952		77,753
Basic earnings per common share	$	0.41	$	0.46
Earnings per common share—diluted
Net income	$	38,390	$	35,819
Add: Interest on convertible debt	—		1,246
Net income including assumed conversions	$	38,390	$	37,065
Weighted-average common shares outstanding—basic	93,952		77,753
Convertible notes weighted-average shares outstanding	—		15,000
Options and restricted stock	1,472		1,143
Weighted-average common shares outstanding—diluted	95,424		93,896
Dilutive earnings per common share	$	0.40	$	0.39

For the three months ended March 31, 2016 and 2015, securities outstanding totaling approximately 413,000 and 705,000 shares, respectively, comprised of stock options and restricted stock units, have been excluded from the calculation of earnings per common share—diluted as their effect would be antidilutive.

Inventories

3 Months Ended

Mar. 31, 2016

Inventory Disclosure [Abstract]

Inventories

Note 4. Inventories

Inventories are summarized below (in thousands):



	March 31, 2016		December 31, 2015
Inventories:
Raw materials	$	50,446	$	53,876
Work-in-process	560		703
Finished goods	135,143		154,304
	$	186,149	$	208,883

Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 5. Goodwill and Intangible Assets

Goodwill and intangible assets, which consist of trade names, trademarks, service marks, trade dress, patents and other intangible assets, were acquired in connection with the acquisition of Odyssey Sports, Inc. in 1997, FrogTrader, Inc. in 2004, and certain foreign distributors. Internally developed intangible assets are expensed as incurred.

The Company’s goodwill and acquired intangible assets with indefinite lives 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. Acquired intangible assets with definite lives are amortized over their estimated useful lives and are tested for impairment only when impairment indicators are present.

Goodwill at March 31, 2016 and December 31, 2015 was $26,777,000 and $26,500,000, respectively. The increase in goodwill during the three months ended March 31, 2016 of $277,000 was due to foreign currency fluctuations.

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



	Useful Life (Years)	March 31, 2016							December 31, 2015
	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	$	88,590		$	—	$	88,590
Amortizing:
Patents	2-16	31,581			31,402		179		31,581			31,389		192
Developed technology and other	1-9	7,961			7,961		—		7,961			7,961		—
Total intangible assets		$	128,132		$	39,363	$	88,769	$	128,132		$	39,350	$	88,782

Aggregate amortization expense on intangible assets was approximately $13,000 for each of the three months ended March 31, 2016 and 2015.

Amortization expense related to intangible assets at March 31, 2016 in each of the next five fiscal years and beyond is expected to be incurred as follows (in thousands):



Remainder of 2016	$	38
2017	51
2018	51
2019	39
	$	179

- 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	3 Months Ended
Investments	Mar. 31, 2016
Investments, All Other Investments [Abstract]
Investments	Note 6. Investments Investment in TopGolf International, Inc. The Company owns a minority interest in Topgolf International, Inc., doing business as the Topgolf Entertainment Group (“Topgolf”), the owner and operator of Topgolf entertainment centers, which ownership consists of common stock and various classes of preferred stock. In connection with this investment, the Company 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 above. In January 2016, the Company invested an additional $1,260,000 in preferred shares of Topgolf, thereby increasing the Company's total investment as of March 31, 2016 to $54,575,000. In addition, in December 2015, the Company and Topgolf entered into a shareholder loan agreement, which resulted in a note receivable from Topgolf for $3,200,000. The loan was subject to an annual interest rate of 10.0%, and was due and payable on March 30, 2016. The loan was paid in full in February 2016. The Company’s total ownership interest in TopGolf, including the Company's voting rights in the preferred shares of TopGolf, remains at less than 20.0% of the outstanding equity securities of TopGolf. As of March 31, 2016, the Company did not have the ability to significantly influence the operating and financing activities and policies of TopGolf, and accordingly, the Company’s investment in TopGolf is accounted for at cost in accordance with ASC Topic 325, “Investments—Other.” On February 22, 2016, Topgolf announced that Providence Equity Partners L.L.C. (“Providence Equity”) has made a significant minority preferred stock investment in Topgolf (the “Providence Equity Investment”). In connection with the Providence Equity Investment, Topgolf used a portion of the proceeds it received to repurchase shares from its existing shareholders, other than Providence Equity (the “Topgolf Repurchase Program”). In April 2016, the Company sold approximately 10.0% or $5,767,000 (on a cost basis) of its preferred shares in Topgolf under the Topgolf Repurchase Program for $23,429,000, thereby reducing the Company's total investment to $48,808,000, and the Company's ownership percentage to approximately 15.0%. In connection with this sale, the Company will recognize a gain of approximately $17,662,000. Based upon the transactions described above, the Company estimates the fair value of its Topgolf shares to be within the range of $207,000,000 to $217,000,000 immediately after the Providence Equity Investment and the Topgolf Repurchase Program. This fair value estimate is based solely upon the valuations and pricing in the Providence Equity Investment and related Topgolf Repurchase Program. No discount has been attributed to this fair value estimate for any preferred terms, including any shareholder, governance or other rights provided to Providence Equity that may differ from those held by the Company, and no premium has been attributed to this fair value estimate for any incremental value that might otherwise apply in the case of a change in control transaction (e.g. an initial public offering or sale of Topgolf). The Company’s Topgolf shares are illiquid and there is no assurance that the Company could sell its shares for the estimated fair value, or at all. Further, this estimate represents the fair value as of a point in time immediately after the Providence Equity Investment. The future value of the Company’s shares may differ materially from the estimated fair value. The future fair value will be affected by many factors, including the availability of interested and willing buyers, the future performance of the Topgolf business, Topgolf’s future capital structure, potential future dilution, and private and public equity market valuations and market conditions. In the absence of the Providence Equity Investment, it would not have been practicable for the Company to estimate the fair value of its Topgolf shares and there is no assurance that the Company will be able to estimate the fair value of its Topgolf shares in the future.

Product Warranty

3 Months Ended

Mar. 31, 2016

Guarantees [Abstract]

Product Warranty

Note 7. Product Warranty

The Company has a stated two-year warranty policy for its golf clubs. 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 following table provides a reconciliation of the activity related to the Company’s reserve for accrued warranty expense (in thousands):



	Three Months Ended March 31,
	2016			2015
Beginning balance	$	5,706		$	5,607
Provision	1,737			1,803
Claims paid/costs incurred	(1,093		)	(1,002		)
Ending balance	$	6,350		$	6,408

Income Taxes

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Note 8. Income Taxes

The Company calculates its interim income tax provision in accordance with ASC 270, “Interim Reporting,” and ASC 740 “Accounting for Income Taxes” (together, “ASC 740”). At the end of each interim period, the Company estimates the annual effective tax rate for foreign operations and applies that rate to its ordinary foreign quarterly earnings. For the Company's U.S. operations, the Company uses the discrete method to calculate the U.S. interim tax expense as the annual effective rate is 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 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 Company believes that using the discrete method is more appropriate than the annual effective tax rate method to calculate the income tax provision related to its U.S. operations.

The realization of deferred tax assets, including loss and credit carry forwards, is subject to the Company generating sufficient taxable income during the periods in which the deferred tax assets become realizable. Due to the Company's cumulative pre-tax operating losses generated in the United States from 2009 to 2014, the Company recorded a valuation allowance against its U.S. deferred tax assets. As of March 31, 2016, the valuation allowance against the U.S. deferred tax assets was $164,616,000. So long as the valuation allowance exists, U.S. income tax expense related to deferred tax assets will be offset by the associated valuation allowance, resulting in an effective U.S. income tax rate on a consolidated basis substantially less than statutory rates. Once the Company demonstrates sufficient positive evidence that it is more likely than not that the Company will be able to realize its deferred tax assets, the valuation allowance would be reversed. Such evidence includes a sustained return to profitability in the U.S. business. The Company’s U.S. business was profitable in 2015. If this trend continues, the Company would be able to reverse all or a significant portion of the valuation allowance. If the Company were to reverse the valuation allowance, the Company would realize a significant one-time non-cash tax benefit in the period of reversal. Prospectively, the Company would then report an effective U.S. income tax rate on a consolidated basis that is closer to its statutory rates.

The provision for income taxes is primarily comprised of taxes related to the Company's foreign operations. The income tax provision for the three months ended March 31, 2016 and 2015 was $1,401,000 and $1,638,000, respectively. The decrease in the income tax provision was primarily due to the decrease in income taxes in foreign jurisdictions in the first quarter of 2016.

At March 31, 2016, the gross liability for income taxes associated with uncertain tax positions was $7,061,000. Of this amount $901,000, would benefit the Company’s consolidated condensed financial statements and effective income tax rate, if favorably settled. The unrecognized tax benefit liabilities are expected to decrease by approximately $183,000 during the next 12 months. The gross liability for uncertain tax positions decreased by $29,000 for the three months ended March 31, 2016. The decrease was primarily due to foreign currency translation and the lapse of statutes of limitation in various jurisdictions.

The Company recognizes interest and penalties related to income tax matters in income tax expense. For the three months ended March 31, 2016 and 2015, the Company's provision for income taxes includes benefits of $24,000 and $25,000, respectively, related to the recognition and reversal of interest and penalties, respectively. As of March 31, 2016 and December 31, 2015, the gross amount of accrued interest and penalties included in income taxes payable in the accompanying consolidated condensed balance sheets was $1,035,000 and $1,060,000, respectively.

The Company files income tax returns in the U.S. federal jurisdiction and various state 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		2010 and prior
California (United States)		2008 and prior
Canada		2009 and prior
Japan		2009 and prior
South Korea		2011 and prior
United Kingdom		2011 and prior

Pursuant to Section 382 of the Internal Revenue Code, use of the Company's net operating losses and credit carry-forwards may be limited significantly if the Company were to experience a cumulative change in ownership of the Company's stock by “5-percent shareholders” that exceeds 50% over a rolling three-year period. The Company does not believe there has been a cumulative change in ownership in excess of 50% during that period. The Company continues to monitor changes in ownership. If such a cumulative change 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 could be adversely impacted.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 9. Commitments & 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 material 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 these 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. The Company’s results of operations or cash flows, however, 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, severance arrangements, the Company’s sales levels, and reductions in payment obligations if designated minimum performance criteria are not achieved. As of March 31, 2016, the Company has entered into many of these contractual agreements with terms ranging from one to four years. The minimum obligation that the Company is required to pay under these agreements is $68,530,000 over the next four 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 minimum purchase commitments as of March 31, 2016, are as follows (in thousands):



Remainder of 2016	$	44,643
2017	18,681
2018	4,326
2019	874
Thereafter	6
	$	68,530

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 standby letters of credit of $1,007,000 as of March 31, 2016.

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 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 three months ended March 31, 2016 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 without substantial cause or by the officer for good reason or non-renewal. 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 a change in control of the Company. These protections include the payment of certain severance benefits, such as monetary payments and health benefits, upon the termination of employment following a change in control.

Share-Based Employee Compensation

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Employee Compensation

Note 10. Share-Based Employee Compensation

As of March 31, 2016, the Company had two shareholder approved stock plans under which shares were available for equity-based awards: the Callaway Golf Company Amended and Restated 2004 Incentive Plan (the "2004 Incentive Plan") and the 2013 Non-Employee Directors Stock Incentive Plan (the "2013 Directors Plan"). From time to time, the Company grants stock options, restricted stock units, phantom stock units, stock appreciation rights and other awards under these plans.

The table below summarizes the amounts recognized in the financial statements for the three months ended March 31, 2016 and 2015 for share-based compensation, including expense for stock options, restricted stock units, phantom stock units, cash settled stock appreciation rights and performance share units.



	Three Months Ended March 31,
	2016		2015
	(In thousands)
Cost of sales	$	142	$	337
Operating expenses	1,910		5,033
Total cost of share-based compensation included in income, before income tax	$	2,052	$	5,370

Stock Options

Stock options granted under the 2004 Incentive Plan are valued using the Black-Scholes option-pricing model on the date of grant. The model uses various assumptions, including a risk-free interest rate, the estimated term of the options, the estimated stock price volatility, and the estimated dividend yield. Compensation expense for stock options is recognized over the vesting period and is reduced by an estimate for forfeitures, which is based on the Company’s historical forfeitures of unvested options and awards.

There were no stock options granted during the three months ended March 31, 2016 or 2015. Total compensation expense recognized for stock options during the three months ended March 31, 2016 and 2015 was $121,000 and $376,000, respectively. At March 31, 2016, the total amount of unamortized expense related to stock options was $73,000, which will be recognized over a weighted-average period of 2.2 years.

Restricted Stock Units

Restricted stock units granted under the 2004 Incentive Plan and 2013 Directors Plan are valued at the Company’s closing stock price on the date of grant and generally vest within a one to three year period. Compensation expense for restricted stock units is recognized over the vesting period and is reduced by an estimate for forfeitures. During the three months ended March 31, 2016 and 2015, the Company granted 493,000 and 406,000 shares underlying restricted stock units, respectively, at a weighted average grant-date fair value of $8.61 and $7.87, respectively. Total compensation expense, net of estimated forfeitures, recognized for restricted stock units during the three months ended March 31, 2016 and 2015 was $1,040,000 and $920,000, respectively.

At March 31, 2016, the Company had $7,762,000 of total unamortized compensation expense related to non-vested restricted stock units under the Company’s share-based payment plans. That cost is expected to be recognized over a weighted-average period of 1.9 years.

Performance Share Units

Performance share units granted under the 2004 Incentive Plan are stock-based awards in which the number of shares ultimately received depends on the Company's performance against specified metrics over a one to three year performance period from the date of grant. These performance metrics are established by the Company at the beginning of the performance period. At the end of the performance period, the number of shares of stock that could be issued is fixed based upon the degree of achievement of the performance goals. The number of shares that could be issued can range from 50% to 200% of the participant's target award. Performance share units are initially valued at the Company's closing stock price on the date of grant. Compensation expense, net of estimated forfeitures, is recognized over the vesting period and will vary based on remeasurements during the performance period. If the performance metrics are not probable of achievement during the performance period, compensation expense would be reversed. The awards are forfeited if the threshold performance metrics are not achieved as of the end of the performance period. The performance units cliff-vest in full at the end of a three year period.

The Company granted 420,000 and 483,000 shares underlying performance units during the three months ended March 31, 2016 and 2015, respectively, at a weighted average grant-date fair value of $8.61 and $7.87 per share, respectively.

During the three months ended March 31, 2016 and 2015, the Company recognized total compensation expense, net of estimated forfeitures, of $1,033,000 and $530,000, respectively, for performance share units. At March 31, 2016, unamortized compensation expense related to these awards was $8,120,000, which is expected to be recognized over a weighted-average period of 1.9 years.

Phantom Stock Units

Phantom stock units granted under the 2004 Incentive Plan are a form of share-based awards that are indexed to the Company’s stock and are settled in cash. Because phantom stock units are settled in cash, compensation expense recognized over the vesting period will vary based on changes in fair value. Fair value is remeasured at the end of each interim reporting period based on the closing price of the Company’s common stock.

There were 3,000 phantom stock units granted during the three months ended March 31, 2016 at a grant date fair value of $8.61. The Company recognized $1,000 in expense for the three months ended March 31, 2016 for these phantom stock units. There were no phantom stock units granted during the three months ended March 31, 2015. The Company recognized $317,000 of compensation expense related to previously granted phantom stock units during the three months ended March 31, 2015. All of the previously granted phantom stock units were fully vested as of December 31, 2015.

Stock Appreciation Rights

Cash settled stock appreciation rights ("SARs") granted under the 2004 Incentive Plan are valued using the Black-Scholes option-pricing model on the date of grant. SARs are subsequently remeasured at each interim reporting period based on a revised Black-Scholes value until they are exercised. SARs vest over a three year period. As of March 31, 2016, all outstanding SARs were fully vested.

There were no SARs granted during the three months ended March 31, 2016 or 2015. The Company reversed $(143,000) and recognized $3,227,000 of compensation expense related to previously granted SARs during the three months ended March 31, 2016 and 2015, respectively. Accrued compensation expense for these awards was $1,168,000 and $1,460,000 at March 31, 2016 and December 31, 2015, respectively, which was recorded in accrued employee compensation and benefits in the accompanying consolidated condensed balance sheets.

- 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 + Details

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 11. Fair Value of Financial Instruments

Certain of the Company’s financial assets and liabilities are measured at fair value on a recurring and nonrecurring basis. 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. Assets and liabilities carried at fair value are classified using the following three-tier hierarchy:

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

Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and

Level 3: Fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The following table summarizes the valuation of the Company’s foreign currency forward contracts (see Note 12) that are measured at fair value on a recurring basis by the above pricing levels at March 31, 2016 and December 31, 2015 (in thousands):



	Fair Value			Level 1		Level 2			Level 3
March 31, 2016
Foreign currency forward contracts—asset position	$	835		$	—	$	835		$	—
Foreign currency forward contracts—liability position	(7,643		)	—		(7,643		)	—
	$	(6,808	)	$	—	$	(6,808	)	$	—
December 31, 2015
Foreign currency forward contracts—asset position	$	680		$	—	$	680		$	—
Foreign currency forward contracts—liability position	(342		)	—		(342		)	—
	$	338		$	—	$	338		$	—

The fair value of the Company’s foreign currency forward contracts is based on observable inputs that are corroborated by market data. Observable inputs include broker quotes, daily market foreign currency rates and forward pricing curves. Remeasurement gains and losses on foreign currency forward contracts designated as cash flow hedges are recorded in other comprehensive income, and in other income (expense) for non-designated foreign currency forward contracts (see Note 12) .

Disclosures about the Fair Value of Financial Instruments

The carrying values of cash and cash equivalents at March 31, 2016 and December 31, 2015 are reasonable estimates of fair value due to the short-term nature of these balances. The table below illustrates information about fair value relating to the Company’s financial assets and liabilities that are recognized in the accompanying consolidated balance sheets as of March 31, 2016 and December 31, 2015, as well as the fair value of contingent contracts that represent financial instruments (in thousands).



	March 31, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value
ABL Facility⁽¹⁾	$	65,200	$	65,200	$	—	$	—
Japan ABL Facility⁽¹⁾	$	13,769	$	13,769	$	14,969	$	14,969
Standby letters of credit⁽²⁾	$	1,007	$	1,007	$	1,030	$	1,030


(1)	The carrying value of amounts outstanding under the Company's ABL Facility and Japan ABL Facility approximates the fair value due to the short-term nature of this obligation. The fair value of this debt is categorized within Level 2 of the fair value hierarchy. See Note 2 for information on the Company's credit facilities, including certain risks and uncertainties related thereto.

(2)

The carrying value of the Company's standby letters of credit approximates the fair value as they represent the Company’s contingent obligation to perform in accordance with the underlying contracts. There were no amounts outstanding under these letters of credit as of March 31, 2016 and December 31, 2015. The fair value of this contingent obligation is categorized within Level 2 of the fair value hierarchy.

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 long-lived assets, 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 months ended March 31, 2016 and 2015, 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 + Details

Derivatives and Hedging

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

Note 12. Derivatives and Hedging

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. As part of its strategy to manage the level of exposure to the risk of fluctuations in foreign currency exchange rates, the Company uses designated cash flow hedges and non-designated hedges in the form of foreign currency forward contracts to mitigate the impact of foreign currency translation on transactions that are denominated primarily in Japanese Yen, British Pounds, Euros, Canadian Dollars, Australian Dollars and Korean Won.

The Company accounts for its foreign currency forward contracts in accordance with ASC Topic 815, “Derivatives and Hedging” (“ASC Topic 815”). ASC Topic 815 requires the recognition of all derivatives instruments 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 a designated cash flow hedge that offsets certain exposures. Certain criteria must be satisfied in order for derivative financial instruments to be classified and accounted for as a cash flow hedge. Gains and losses from the remeasurement of qualifying hedges are recorded as a component of other comprehensive income and released into earnings as a component of cost of goods sold or net sales during the period in which the hedged transaction takes place. Gains and losses on the ineffective portion of hedges (hedges that do not meet accounting requirements due to ineffectiveness) and derivatives that are not elected for hedge accounting treatment are immediately recorded in earnings as a component of other income (expense).

Foreign currency forward contracts are used only to meet the Company’s objectives of minimizing variability in the Company’s operating results arising from foreign exchange rate movements. The Company does not enter into foreign currency forward contracts for speculative purposes. The Company utilizes counterparties for its derivative instruments that it believes are credit-worthy at the time the transactions are entered into and the Company closely monitors the credit ratings of these counterparties.

The following table summarizes the fair value of the Company's foreign currency forward contracts as well as the location of the asset and/or liability on the consolidated condensed balance sheets at March 31, 2016 and December 31, 2015 (in thousands):



	Asset Derivatives
	March 31, 2016			December 31, 2015
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as cash flow hedging instruments:
Foreign currency forward contracts	Other current assets	$	60	Other current assets	$	520

Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	775	Other current assets	$	160



	Liability Derivatives
	March 31, 2016			December 31, 2015
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as cash flow hedging instruments:
Foreign currency forward contracts	Accounts payable and accrued expenses	$	1,734	Accounts payable and accrued expenses	$	296
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Accounts payable and accrued expenses	$	5,909	Accounts payable and accrued expenses	$	46

The Company's foreign currency forward contracts are subject to a master netting agreement with each respective counterparty bank and are therefore net settled at their maturity date. Although the Company has the legal right of offset under the master netting agreements, the Company elected not to present these contracts on a net settlement amount basis, and are therefore presented on a gross basis on the accompanying consolidated condensed balance sheets at March 31, 2016 and December 31, 2015.

Cash Flow Hedging Instruments

Beginning in January 2015, the Company entered into foreign currency forward contracts designated as qualifying cash flow hedges to help mitigate the Company's foreign currency exposure on intercompany sales of inventory to its foreign subsidiaries. These contracts generally mature within 12 to 15 months from their inception. At March 31, 2016 and December 31, 2015, the notional amount of the Company's foreign currency forward contracts designated as cash flow hedge instruments was approximately $33,423,000 and $55,938,000, respectively. The reporting of gains and losses on these cash flow hedging instruments depends on whether the gains or losses are effective at offsetting changes in the cash flows of the underlying hedged items. The Company uses the hypothetical derivative method to measure the effectiveness of the foreign currency forward contracts and evaluates the effectiveness on a quarterly basis. The effective portion of the gains and losses on the hedging instruments are recorded in other comprehensive income until recognized in earnings during the period that the hedged transactions take place. Any ineffective portion of the gains and losses from the hedging instruments is recognized in earnings immediately. The Company would discontinue hedge accounting prospectively if (i) it is determined that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item, (ii) when the derivative expires or is sold, terminated, or exercised, (iii) if it becomes probable that the forecasted transaction being hedged by the derivative will not occur, (iv) if a hedged firm commitment no longer meets the definition of a firm commitment, or (v) if it is determined that designation of the derivative as a hedge instrument is no longer appropriate. The Company estimates the fair value of its foreign currency forward contracts based on pricing models using current market rates. These contracts are classified under Level 2 of the fair value hierarchy (see Note 11).

As of March 31, 2016, the Company recorded a net loss of $1,671,000 in other comprehensive income (loss) related to its hedging activities. Of this amount, for the three months ended March 31, 2016, net gains of $579,000 were relieved from other comprehensive income and recognized in cost of goods sold for the underlying intercompany sales that were recognized, and net losses of $365,000 were relieved from other comprehensive income and recognized in net sales for the underlying third party sales. For the three months ended March 31, 2015, the Company recognized net gains of $203,000 in other income (expense) as a result of ineffectiveness. There were no ineffective gains or losses recognized during the three months ended March 31, 2016. Forward points of $63,000 were expensed as of March 31, 2016. Based on the current valuation, the Company expects to reclassify net gains of $1,671,000 from accumulated other comprehensive income (loss) into net earnings during the next 12 months.

The following tables summarize the net effect of all cash flow hedges on the consolidated condensed financial statements for the three months ended March 31, 2016 (in thousands):



	Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion)
	Three Months Ended March 31,
Derivatives designated as cash flow hedging instruments	2016			2015
Foreign currency forward contracts	$	(1,671	)	$	1,856



	Gain Reclassified from Other Comprehensive Income into Earnings (Effective Portion)
	Three Months Ended March 31,
Derivatives designated as cash flow hedging instruments	2016		2015
Foreign currency forward contracts	$	214	$	—



	Gain Recognized in Other Income (Expense) (Ineffective Portion)
	Three Months Ended March 31,
Derivatives designated as cash flow hedging instruments	2016		2015
Foreign currency forward contracts	$	—	$	203

The following table details the amounts reclassified from accumulated other comprehensive loss to cost of goods sold, as well as changes in foreign currency translation for the three months ended March 31, 2016. Amounts shown do not include any tax effect due to the valuation allowance on the Company's deferred taxes in the United States (Note 8). Amounts are in thousands.



Accumulated other comprehensive loss, December 31, 2015	$	(11,813	)
Change in fair value of derivative instruments	(2,073		)
Amounts reclassified from accumulated other comprehensive income to cost of goods sold	(579		)
Amounts reclassified from accumulated other comprehensive income to net sales	365
Foreign currency translation adjustments	4,761
Accumulated other comprehensive loss, March 31, 2016, before tax	$	(9,339	)
Accumulated other comprehensive loss, March 31, 2016, after tax	$	(9,248	)

Foreign Currency Forward Contracts Not Designated as Hedging Instruments

The Company uses foreign currency forward contracts that are not designated as qualified hedging instruments to mitigate certain balance sheet exposures (payables and receivables denominated in foreign currencies), as well as 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. These contracts generally mature within 12 months from their inception. At March 31, 2016 and December 31, 2015, the notional amounts of the Company’s foreign currency forward contracts not designated as hedging instruments used to help mitigate the exposures discussed above were approximately $169,209,000 and $43,098,000, respectively. The increase in foreign currency forward contracts reflects the general timing of when the Company enters into these contracts. The Company estimates the fair values of foreign currency forward 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 foreign currency contracts are classified under Level 2 of the fair value hierarchy (see Note 11).

The following table summarizes the location of net gains and losses in the consolidated condensed statements of operations that were recognized during the three months ended March 31, 2016 and 2015, respectively (in thousands):



	Location of Net Gain (Loss) Recognized in Income on Derivative Instruments	Amount of Net Gain (Loss) Recognized in Income on Derivative Instruments
Derivatives not designated as hedging instruments		Three Months Ended March 31,
Derivatives not designated as hedging instruments		2016			2015
Foreign currency forward contracts	Other income (expense), net	$	(6,312	)	$	2,592

In addition, for the three months ended March 31, 2016 and 2015, the Company recognized net foreign currency losses related to transactions with its foreign subsidiaries of $1,312,000 and $479,000, respectively.

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

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+ Details

Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

Note 13. Segment Information

The Company has two operating segments that are organized on the basis of products, namely the golf clubs segment and golf balls segment. The golf clubs segment consists of Callaway Golf woods, hybrids, irons and wedges and Odyssey putters. This segment also includes golf apparel and footwear, golf bags, golf gloves, travel gear, headwear and other golf-related accessories, in addition to royalties from licensing of the Company’s trademarks and service marks and sales of pre-owned golf clubs. The golf balls segment consists of Callaway Golf and Strata balls that are designed, manufactured and sold by the Company. 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 March 31,
	2016			2015
Net sales:
Golf Clubs	$	232,637		$	241,156
Golf Balls	41,416			43,023
	$	274,053		$	284,179
Income before income taxes:
Golf Clubs	$	44,946		$	40,940
Golf Balls	10,563			7,409
Reconciling items⁽¹⁾	(15,718		)	(10,892		)
	$	39,791		$	37,457
Additions to long-lived assets:
Golf Clubs	$	2,719		$	2,083
Golf Balls	1,114			566
	$	3,833		$	2,649

(1)

Reconciling items represent corporate general and administrative expenses and other income (expense) not included by management in determining segment profitability. The increase in reconciling items in the first quarter of 2016 compared to the first quarter of 2015 was primarily due to an increase in net foreign currency losses, partially offset by decreases in corporate stock compensation expense and interest expense.

- 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

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+ Details

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	Mar. 31, 2016
Accounting Policies [Abstract]
Recent Accounting Standards	Recent Accounting Standards In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." This amendment is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendment is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early application is permitted. The Company is currently evaluating the impact of this guidance on its consolidated condensed financial statements and disclosures. In March 2016, the FASB issued ASU 2016-04, "Liabilities —Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products." The amendment clarifies when it is acceptable to recognize the unredeemed portion of prepaid gift cards into income, and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated condensed financial statements and disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged and lessees will no longer be provided with a source of off-balance sheet financing. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the impact this ASU will have on its consolidated condensed financial statements and disclosures. In January 2016, the FASB issued ASU No. 2016-01, "'Financial Instruments─Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The amendment requires (i) equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, (ii) public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes and (iii) separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). This amendment eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. This amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact this ASU will have on its consolidated condensed financial statements and disclosures. In July 2015, the FASB issued ASU No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The amendments apply to inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure in-scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in this update more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company does not expect that the adoption of this amendment will have a material impact on its consolidated condensed financial statements. In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern." This ASU is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures, and provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. Until the issuance of this ASU, U.S. GAAP lacked guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. The amendments are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect that the adoption of this amendment will have a material impact on its consolidated condensed financial statements and disclosures. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers: (Topic 606)." This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, "Revenue Recognition," and most industry-specific guidance. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, "Property, Plant, and Equipment," and intangible assets within the scope of Topic 350, "Intangibles-Goodwill and Other") are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact this ASU will have on its consolidated condensed financial statements and disclosures.

Earnings per Common Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table summarizes the computation of basic and diluted earnings per share (in thousands, except per share data):



	Three Months Ended March 31,
	2016		2015
Earnings per common share—basic
Net income	$	38,390	$	35,819
Weighted-average common shares outstanding—basic	93,952		77,753
Basic earnings per common share	$	0.41	$	0.46
Earnings per common share—diluted
Net income	$	38,390	$	35,819
Add: Interest on convertible debt	—		1,246
Net income including assumed conversions	$	38,390	$	37,065
Weighted-average common shares outstanding—basic	93,952		77,753
Convertible notes weighted-average shares outstanding	—		15,000
Options and restricted stock	1,472		1,143
Weighted-average common shares outstanding—diluted	95,424		93,896
Dilutive earnings per common share	$	0.40	$	0.39

Inventories (Tables)

3 Months Ended

Mar. 31, 2016

Inventory Disclosure [Abstract]

Inventories

Inventories are summarized below (in thousands):



	March 31, 2016		December 31, 2015
Inventories:
Raw materials	$	50,446	$	53,876
Work-in-process	560		703
Finished goods	135,143		154,304
	$	186,149	$	208,883

Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets by Major Asset Class

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



	Useful Life (Years)	March 31, 2016							December 31, 2015
	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	$	88,590		$	—	$	88,590
Amortizing:
Patents	2-16	31,581			31,402		179		31,581			31,389		192
Developed technology and other	1-9	7,961			7,961		—		7,961			7,961		—
Total intangible assets		$	128,132		$	39,363	$	88,769	$	128,132		$	39,350	$	88,782

Amortization Expense Related to Intangible Assets

Amortization expense related to intangible assets at March 31, 2016 in each of the next five fiscal years and beyond is expected to be incurred as follows (in thousands):



Remainder of 2016	$	38
2017	51
2018	51
2019	39
	$	179

Product Warranty (Tables)

3 Months Ended

Mar. 31, 2016

Guarantees [Abstract]

Reconciliation of Reserve for Warranty Expense

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



	Three Months Ended March 31,
	2016			2015
Beginning balance	$	5,706		$	5,607
Provision	1,737			1,803
Claims paid/costs incurred	(1,093		)	(1,002		)
Ending balance	$	6,350		$	6,408

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

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



Tax Jurisdiction		Years No Longer Subject to Audit
U.S. federal		2010 and prior
California (United States)		2008 and prior
Canada		2009 and prior
Japan		2009 and prior
South Korea		2011 and prior
United Kingdom		2011 and prior

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Future Purchase Commitments

Future minimum purchase commitments as of March 31, 2016, are as follows (in thousands):



Remainder of 2016	$	44,643
2017	18,681
2018	4,326
2019	874
Thereafter	6
	$	68,530

Share-Based Employee Compensation (Tables)

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs



	Three Months Ended March 31,
	2016		2015
	(In thousands)
Cost of sales	$	142	$	337
Operating expenses	1,910		5,033
Total cost of share-based compensation included in income, before income tax	$	2,052	$	5,370

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Valuation of Foreign Currency Exchange Contracts by Pricing Levels



	Fair Value			Level 1		Level 2			Level 3
March 31, 2016
Foreign currency forward contracts—asset position	$	835		$	—	$	835		$	—
Foreign currency forward contracts—liability position	(7,643		)	—		(7,643		)	—
	$	(6,808	)	$	—	$	(6,808	)	$	—
December 31, 2015
Foreign currency forward contracts—asset position	$	680		$	—	$	680		$	—
Foreign currency forward contracts—liability position	(342		)	—		(342		)	—
	$	338		$	—	$	338		$	—

Fair Value Relating to Financial Assets and Liabilities



	March 31, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value
ABL Facility⁽¹⁾	$	65,200	$	65,200	$	—	$	—
Japan ABL Facility⁽¹⁾	$	13,769	$	13,769	$	14,969	$	14,969
Standby letters of credit⁽²⁾	$	1,007	$	1,007	$	1,030	$	1,030


(1)	The carrying value of amounts outstanding under the Company's ABL Facility and Japan ABL Facility approximates the fair value due to the short-term nature of this obligation. The fair value of this debt is categorized within Level 2 of the fair value hierarchy. See Note 2 for information on the Company's credit facilities, including certain risks and uncertainties related thereto.

(2)

Derivatives and Hedging (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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



	Asset Derivatives
	March 31, 2016			December 31, 2015
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as cash flow hedging instruments:
Foreign currency forward contracts	Other current assets	$	60	Other current assets	$	520

Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	775	Other current assets	$	160



	Liability Derivatives
	March 31, 2016			December 31, 2015
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as cash flow hedging instruments:
Foreign currency forward contracts	Accounts payable and accrued expenses	$	1,734	Accounts payable and accrued expenses	$	296
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Accounts payable and accrued expenses	$	5,909	Accounts payable and accrued expenses	$	46

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following tables summarize the net effect of all cash flow hedges on the consolidated condensed financial statements for the three months ended March 31, 2016 (in thousands):



	Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion)
	Three Months Ended March 31,
Derivatives designated as cash flow hedging instruments	2016			2015
Foreign currency forward contracts	$	(1,671	)	$	1,856



	Gain Reclassified from Other Comprehensive Income into Earnings (Effective Portion)
	Three Months Ended March 31,
Derivatives designated as cash flow hedging instruments	2016		2015
Foreign currency forward contracts	$	214	$	—



	Gain Recognized in Other Income (Expense) (Ineffective Portion)
	Three Months Ended March 31,
Derivatives designated as cash flow hedging instruments	2016		2015
Foreign currency forward contracts	$	—	$	203

Schedule of Accumulated Other Comprehensive Income (Loss)



Accumulated other comprehensive loss, December 31, 2015	$	(11,813	)
Change in fair value of derivative instruments	(2,073		)
Amounts reclassified from accumulated other comprehensive income to cost of goods sold	(579		)
Amounts reclassified from accumulated other comprehensive income to net sales	365
Foreign currency translation adjustments	4,761
Accumulated other comprehensive loss, March 31, 2016, before tax	$	(9,339	)
Accumulated other comprehensive loss, March 31, 2016, after tax	$	(9,248	)

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



	Location of Net Gain (Loss) Recognized in Income on Derivative Instruments	Amount of Net Gain (Loss) Recognized in Income on Derivative Instruments
Derivatives not designated as hedging instruments		Three Months Ended March 31,
Derivatives not designated as hedging instruments		2016			2015
Foreign currency forward contracts	Other income (expense), net	$	(6,312	)	$	2,592

Segment Information (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

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 March 31,
	2016			2015
Net sales:
Golf Clubs	$	232,637		$	241,156
Golf Balls	41,416			43,023
	$	274,053		$	284,179
Income before income taxes:
Golf Clubs	$	44,946		$	40,940
Golf Balls	10,563			7,409
Reconciling items⁽¹⁾	(15,718		)	(10,892		)
	$	39,791		$	37,457
Additions to long-lived assets:
Golf Clubs	$	2,719		$	2,083
Golf Balls	1,114			566
	$	3,833		$	2,649

(1)

Financing Arrangements (Asset Based Revolving Credit Facility) - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2016 JPY (¥)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
Asset-based credit facilities			$ 78,969,000	$ 14,969,000
Cash and cash equivalents			35,136,000	49,801,000	$ 23,236,000	$ 37,635,000
Debt instrument maximum additional borrowing capacity amount			192,146,000		183,732,000
Total available liquidity			227,282,000		$ 206,968,000
Asset-based credit facility, maximum borrowing capacity			230,000,000
Dividend restrictions, maximum additional dividends			74,680,000
Bank of America, N.A.
Debt Instrument [Line Items]
Asset-based credit facilities			65,200,000
Amount outstanding under letters of credit			1,007,000
Maximum amount of additional indebtedness after outstanding borrowings			$ 109,180,000
Average outstanding borrowing	$ 43,412,000
Average available liquidity	$ 95,160,000
Asset-based credit facility, maturity date	Jun. 23, 2019
Debt covenants , dividend restrictions	In addition, the ABL Facility imposes restrictions on the amount the Company could pay in annual cash dividends, including meeting certain restrictions on the amount of additional indebtedness and requirements to maintain a certain fixed charge coverage ratio under certain circumstances.
Debt covenants, borrowing base below threshold, period ratio required to be in compliance	30 days
Borrowing base availability	$ 23,000,000
Applicable margin rate reduction	The applicable margin for any month will be reduced by 0.25% if the Company’s availability ratio is greater than or equal to 67% and the Company’s “leverage ratio” (as defined below) is less than 4.0 to 1.0 as of the last day of the month for which financial statements have been delivered, so long as no default or event of default exists.
Line of credit facility conditional reduction in margin rate		0.25%	0.25%
Asset-based credit facility, interest rate		4.58%	4.58%
Asset-based credit facility, origination fees			$ 4,970,000
Unamortized origination fees			1,662,000	1,781,000
Bank of America, N.A. \| Other Current Assets
Debt Instrument [Line Items]
Asset-based credit facility, origination fees included in other current assets			511,000	509,000
Bank of America, N.A. \| Other Assets
Debt Instrument [Line Items]
Asset-based credit facility, origination fees included in other long-term assets			$ 1,151,000	$ 1,272,000
Bank of America, N.A. \| Minimum
Debt Instrument [Line Items]
Availability ratio required to reduce applicable margin		67.00%	67.00%
Line of credit facility, commitment fee percentage	0.25%
Bank of America, N.A. \| Maximum
Debt Instrument [Line Items]
Leverage ratio required to reduce applicable margin	4
Line of credit facility, commitment fee percentage	0.375%
The Bank of Tokyo-Mitsubishi UFG Ltd
Debt Instrument [Line Items]
Asset-based credit facilities		¥ 1,600,000,000	$ 13,769,000
Debt instrument maximum additional borrowing capacity amount			17,766,000
Asset-based credit facility, maximum borrowing capacity		¥ 2,000,000,000	$ 17,766,000
Applicable margin rate reduction	subject to an effective interest rate equal to TIBOR plus 0.25%
Asset-based credit facility, interest rate		2.48%	2.48%
United States
Debt Instrument [Line Items]
Asset-based credit facility, maximum borrowing capacity			$ 160,000,000
Canada
Debt Instrument [Line Items]
Asset-based credit facility, maximum borrowing capacity			25,000,000
United Kingdom
Debt Instrument [Line Items]
Asset-based credit facility, maximum borrowing capacity			$ 45,000,000
Japan \| The Bank of Tokyo-Mitsubishi UFG Ltd
Debt Instrument [Line Items]
Term of credit facility	2 days
Tokyo Interbank Offered Rate (TIBOR) [Member] \| The Bank of Tokyo-Mitsubishi UFG Ltd
Debt Instrument [Line Items]
Basis spread on variable rate on debt	0.25%

Financing Arrangements (Convertible Senior Notes) - Additional Information (Detail)	1 Months Ended	3 Months Ended		6 Months Ended	12 Months Ended
	Aug. 31, 2012 USD ($) shares	Mar. 31, 2016 USD ($) $ / shares	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($) shares	Dec. 31, 2015 USD ($)	Dec. 31, 2012 USD ($)
Debt Disclosure [Abstract]
Convertible senior notes		$ 0				$ 112,500,000
Convertible senior notes interest rate						3.75%
Convertible senior notes convertible latest date		Aug. 15, 2019
Debt conversion, maximum number of common stock shares \| shares	15,000,000
Conversion price per share \| $ / shares		$ 7.50
Convertible senior notes, transactional fees	$ 3,537,000	$ 0
Amount of shares issued upon conversion \| shares				15,000,000
Amount of discount on convertible notes					$ 108,955,000
Convertible senior notes, unamortized discount				$ 3,395,000	$ 3,395,000
Convertible senior notes, total interest and amortization expense recognized			$ 1,258,000
Initial conversion rate, number of common stock issuable		0.1333

Earnings per Common Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings per common share—basic
Net income	$ 38,390	$ 35,819
Weighted-average common shares outstanding—basic (in shares)	93,952	77,753
Basic earnings per common share (in dollars per share)	$ 0.41	$ 0.46
Earnings per common share—diluted
Net income	$ 38,390	$ 35,819
Add: Interest on convertible debt	0	1,246
Net income including assumed conversions	$ 38,390	$ 37,065
Weighted-average common shares outstanding—basic (in shares)	93,952	77,753
Convertible notes weighted-average shares outstanding (in shares)	0	15,000
Options, restricted stock and other dilutive securities (in shares)	1,472	1,143
Weighted-average common shares outstanding—diluted (in shares)	95,424	93,896
Dilutive earnings per common share (in dollars per share)	$ 0.40	$ 0.39

Earnings per Common Share - Additional Information (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	413	705

Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventories:
Raw materials	$ 50,446	$ 53,876
Work-in-process	560	703
Finished goods	135,143	154,304
Inventories	$ 186,149	$ 208,883

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 26,777		$ 26,500
Decrease in goodwill offset amount due to foreign currency fluctuations	277
Aggregate amortization expense on intangible assets	$ 13	$ 13

Goodwill and Intangible Assets - Intangible Assets by Major Asset Class (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Intangible Assets By Major Class [Line Items]
Gross	$ 128,132		$ 128,132
Accumulated Amortization	39,363		39,350
Net Book Value	88,769		88,782
Aggregate amortization expense on intangible assets	13	$ 13
Trade name, trademark and trade dress and other
Intangible Assets By Major Class [Line Items]
Gross	88,590		88,590
Net Book Value	88,590		88,590
Patents
Intangible Assets By Major Class [Line Items]
Gross	31,581		31,581
Accumulated Amortization	31,402		31,389
Net Book Value	$ 179		192
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	$ 7,961		7,961
Accumulated Amortization	7,961		7,961
Net Book Value	$ 0		$ 0
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 - Amortization Expense Related to Intangible Assets (Detail) $ in Thousands	Mar. 31, 2016 USD ($)
Amortization expense related to intangible assets:
Remainder of 2016	$ 38
2017	51
2018	51
2019	39
Total	$ 179

Investments (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
Investments (Detail) - USD ($) $ in Thousands	Apr. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Schedule of Cost-method Investments [Line Items]
Investment in Topgolf, during the period		$ 1,260
Investment in Topgolf		$ 54,575	$ 53,315
Notes Receivable from Topgolf			$ 3,200
Annual Interest Rate on notes receivable			10.00%
Percentage of ownership interest in Topgolf		20.00%
Subsequent Event [Member]
Schedule of Cost-method Investments [Line Items]
Investment in Topgolf	$ 48,808
Percentage of ownership interest in Topgolf	15.00%
Percentage of Topgolf preferred shares sold	10.00%
Reduction in total investment in Topgolf	$ 5,767
Proceeds from sale of preferred shares in Topgolf	23,429
Gain on sale of preferred shares in Topgolf	17,662
Fair Value \| Minimum \| Subsequent Event [Member]
Schedule of Cost-method Investments [Line Items]
Investment in Topgolf	207,000
Fair Value \| Maximum \| Subsequent Event [Member]
Schedule of Cost-method Investments [Line Items]
Investment in Topgolf	$ 217,000

Product Warranty - Reconciliation of Reserve for Warranty Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Guarantees [Abstract]
Warranty policy term	2 years
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Beginning balance	$ 5,706	$ 5,607
Provision	1,737	1,803
Claims paid/costs incurred	(1,093)	(1,002)
Ending balance	$ 6,350	$ 6,408

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Valuation allowance for deferred tax assets	$ 164,616
Income tax provision	1,401	$ 1,638
Liability for income taxes associated with uncertain tax positions	7,061
Net amount of unrecognized tax benefit related to uncertain tax positions that would impact, if recognized, effective income tax rate	901
Unrecognized tax benefit liabilities decrease	183
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	29
Provision expense (benefit) for income taxes related to interest and penalties	24	$ 25
Income tax accrued for payment of interest and penalties	$ 1,035		$ 1,060

Income Taxes Major Jurisdictions No Longer Subject to Audit (Details)	3 Months Ended
	Mar. 31, 2016
U.S. federal
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2010 and prior
California (United States)
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2008 and prior
Canada
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2009 and prior
Japan
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2009 and prior
South Korea
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2011 and prior
United Kingdom
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2011 and prior

Commitments and Contingencies - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Long Term Purchase Commitment [Line Items]
Unconditional purchase obligations, term	4 years
Unconditional purchase obligations	$ 68,530
Bank of America, N.A.
Long Term Purchase Commitment [Line Items]
Amount outstanding under letters of credit	$ 1,007
Minimum
Long Term Purchase Commitment [Line Items]
Unconditional purchase obligations, term	1 year
Maximum
Long Term Purchase Commitment [Line Items]
Unconditional purchase obligations, term	4 years

Commitments and Contingencies Future Purchase Commitments (Details) $ in Thousands	Mar. 31, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2016	$ 44,643
2017	18,681
2018	4,326
2019	874
Thereafter	6
Unconditional purchase obligations	$ 68,530

Share-Based Employee Compensation - Amounts Recognized for Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Cost of employee share-based compensation included in income, before income tax	$ 2,052	$ 5,370
Cost of sales
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Cost of employee share-based compensation included in income, before income tax	142	337
Operating expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Cost of employee share-based compensation included in income, before income tax	$ 1,910	$ 5,033

Share-Based Employee Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) $ / shares shares	Mar. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2015 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shareholder approved stock plans	2
Cost (reversal) of employee share-based compensation included in income, before income tax	$ 2,052	$ 5,370
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options granted \| shares	0	0
Compensation expense related to stock options	$ 121	$ 376
Total unrecognized compensation expense related to non-vested shares granted	$ 73
Number of years compensation expense to be recognized over	2 years 2 months 5 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense related to non-vested shares granted	$ 7,762
Number of years compensation expense to be recognized over	1 year 10 months 17 days
Number of stock units granted \| shares	493,000	406,000
Stock units, weighted average grant-date fair value (usd per share) \| $ / shares	$ 8.61	$ 7.87
Compensation expense related to restricted stocks	$ 1,040	$ 920
Restricted Stock Units (RSUs) \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Restricted Stock Units (RSUs) \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense related to non-vested shares granted	$ 8,120
Number of years compensation expense to be recognized over	1 year 10 months 27 days
Vesting period	3 years
Number of stock units granted \| shares	420,000	483,000
Stock units, weighted average grant-date fair value (usd per share) \| $ / shares	$ 8.61	$ 7.87
Cost (reversal) of employee share-based compensation included in income, before income tax	$ 1,033	$ 530
Performance Shares \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award requisite service period	1 year
Shares awarded as a percentage of granted	50.00%
Performance Shares \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award requisite service period	3 years
Shares awarded as a percentage of granted	200.00%
Phantom Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock units granted \| shares	3,000	0
Stock units, weighted average grant-date fair value (usd per share) \| $ / shares	$ 8.61
Cost (reversal) of employee share-based compensation included in income, before income tax	$ 1	$ 317
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Number of stock units granted \| shares	0	0
Cost (reversal) of employee share-based compensation included in income, before income tax	$ 143	$ 3,227
Accrued compensation expense	$ 1,168		$ 1,460

Fair Value of Financial Instruments - Foreign Currency Exchange Contracts Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - Foreign Exchange Contract - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts—asset position	$ 835	$ 680
Foreign currency forward contracts—liability position	(7,643)	(342)
Foreign currency forward contracts, net	(6,808)	338
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts—asset position	835	680
Foreign currency forward contracts—liability position	(7,643)	(342)
Foreign currency forward contracts, net	$ (6,808)	$ 338

- Definition

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset, expected to be settled within one year or normal operating cycle, if longer. Includes assets not subject to a master netting arrangement and not elected to be offset.

+ References + Details

Fair Value of Financial Instruments - Fair Value Relating to Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount outstanding under letters of credit	$ 1,007	$ 1,030
Carrying Value \| ABL Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Credit facilities	65,200	0
Carrying Value \| Japan ABL Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Credit facilities	13,769	14,969
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount outstanding under letters of credit	1,007	1,030
Fair Value \| ABL Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Credit facilities	65,200	0
Fair Value \| Japan ABL Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Credit facilities	$ 13,769	$ 14,969

Derivatives and Hedging - Summary of Fair Value of Derivative Instruments by Contract Type and Location of Asset and/or Liability on Consolidated Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Other Current Assets
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, asset derivatives designated as hedging instruments, fair value	$ 60	$ 520
Foreign currency exchange contracts, asset derivatives not designated as hedging instruments, fair value	775	160
Accounts payable and accrued expenses
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, liability derivatives designated as hedging instruments, fair value	1,734	296
Foreign currency exchange contracts, liability derivatives not designated as hedging instruments, fair value	$ 5,909	$ 46

Derivatives and Hedging - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended
	Jan. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Derivative [Line Items]
Forward points expensed on derivatives		$ 63,000
Net gains from accumulated other comprehensive loss into net earnings during the next 12 months		$ 1,671,000
Maximum maturity for foreign currency derivatives		12 months
Effect of Cash Flow Hedges on Results of Operations [Abstract]
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion)		$ 1,671,000
Gain (Loss) in other income (expense) as a result of ineffectiveness		0
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance		(11,813,000)
Change in fair value of derivative instruments		(2,073,000)
Foreign currency translation adjustments		4,761,000
Ending balance		(9,339,000)
Accumulated other comprehensive loss		(9,248,000)		$ (11,813,000)
Foreign currency losses		1,312,000	$ 479,000
Foreign Exchange Forward \| Cost Of Goods Sold
Effect of Cash Flow Hedges on Results of Operations [Abstract]
Gain Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion)		579,000
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Amounts reclassified from AOCI		(579,000)
Foreign Exchange Forward \| Other Nonoperating Income (Expense)
Derivative [Line Items]
Gain (loss) on Foreign Currency Cash Flow Hedge Ineffectiveness		203,000
Foreign Exchange Forward \| Sales Revenue, Net
Effect of Cash Flow Hedges on Results of Operations [Abstract]
Gain Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion)		365,000
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Amounts reclassified from AOCI		365,000
Designated as Hedging Instrument \| Foreign Exchange Contract
Derivative [Line Items]
Notional amounts of derivatives		33,423,000		55,938,000
Not Designated as Hedging Instrument \| Foreign Exchange Contract
Derivative [Line Items]
Notional amounts of derivatives		169,209,000		$ 43,098,000
Cash Flow Hedging \| Designated as Hedging Instrument
Effect of Cash Flow Hedges on Results of Operations [Abstract]
Gain Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion)			0
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion)			(2,000)
Gain (Loss) in other income (expense) as a result of ineffectiveness			$ 203,000
Cash Flow Hedging \| Designated as Hedging Instrument \| Foreign Exchange Forward
Effect of Cash Flow Hedges on Results of Operations [Abstract]
Gain Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion)		214,000
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion)		1,671,000
Gain (Loss) in other income (expense) as a result of ineffectiveness		$ 0
Minimum
Derivative [Line Items]
Maximum maturity for foreign currency cash flow hedge	12 months
Maximum
Derivative [Line Items]
Maximum maturity for foreign currency cash flow hedge	15 months

Derivatives and Hedging - Location of Gains in Consolidated Condensed Statements of Operations that were Recognized and Derivative Contract Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Other (expense) income, net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Net Gain (Loss) Recognized in Income on Derivative Instruments	$ (6,312)	$ 2,592

Segment Information - Information Utilized by Management to Evaluate its Operating Segments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) segment	Mar. 31, 2015 USD ($)
Segment Reporting [Abstract]
Number of operating segments \| segment	2
Segment Reporting Information [Line Items]
Net sales	$ 274,053	$ 284,179
Income before income taxes	39,791	37,457
Additions to long-lived assets	3,833	2,649
Golf Clubs
Segment Reporting Information [Line Items]
Net sales	232,637	241,156
Income before income taxes	44,946	40,940
Additions to long-lived assets	2,719	2,083
Golf Balls
Segment Reporting Information [Line Items]
Net sales	41,416	43,023
Income before income taxes	10,563	7,409
Additions to long-lived assets	1,114	566
Reconciling Items
Segment Reporting Information [Line Items]
Income before income taxes	$ (15,718)	$ (10,892)