0000837465-20-000002 | 10-K | XBRL Viewer

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Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2019	Jan. 31, 2020	Jun. 30, 2019	Jun. 30, 2018
Cover page.
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	Callaway Golf Company
Entity Central Index Key	0000837465
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Entity Public Float			$ 1,591,446,868	$ 1,769,386,515
Entity Common Stock, Shares Outstanding		94,217,773
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	ELY
Security Exchange Name	NYSE
Entity File Number	1-10962
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-3797580
Entity Address, Address Line One	2180 Rutherford Road
Entity Address, City or Town	Carlsbad
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92008
City Area Code	760
Local Phone Number	931-1771
Document Annual Report	true
Document Transition Report	false
Documents Incorporated by Reference	Part III incorporates certain information by reference from the registrant’s Definitive Proxy Statement to be filed with the Securities and Exchange Commission ("SEC" or “Commission”) pursuant to Regulation 14A in connection with the registrant’s 2020 Annual Meeting of Shareholders, which is scheduled to be held on May 12, 2020. Such Definitive Proxy Statement will be filed with the Commission not later than 120 days after the conclusion of the registrant’s fiscal year ended December 31, 2019.

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 106,666,000	$ 63,981,000
Accounts receivable, net	140,455,000	71,374,000
Inventories	456,639,000	338,057,000
Income taxes receivable	9,919,000	713,000
Other current assets	75,671,000	50,781,000
Total current assets	789,350,000	524,906,000
Property, plant and equipment, net	132,760,000	88,472,000
ROU assets, net	160,098,000	0
Intangible assets, net	493,423,000	224,692,000
Deferred Tax Assets, Net, Noncurrent	73,948,000	75,079,000
Goodwill	203,743,000	55,816,000
Equity Securities without Readily Determinable Fair Value, Amount	90,134,000	72,238,000
Income Taxes Receivable, Noncurrent	862,000	1,102,000
Income taxes receivable	16,230,000	10,639,000
Total assets	1,960,548,000	1,052,944,000
Current liabilities:
Accounts payable and accrued expenses	276,300,000	208,653,000
Accrued employee compensation and benefits	46,891,000	43,172,000
Asset-based credit facilities	144,580,000	40,300,000
Lease liabilities, short-term	26,418,000	0
Accrued warranty expense	9,636,000	7,610,000
Current portion of long-term debt	7,317,000	2,411,000
Income taxes payable	12,104,000	1,091,000
Total current liabilities	523,246,000	303,237,000
Long-term liabilities:
Lease liabilities, long-term	137,696,000	0
Income tax liability	7,264,000	4,430,000
Deferred taxes, net	73,483,000	1,796,000
Long-Term Debt, excluding current portion	443,259,000	7,218,000
Other Liabilities, Noncurrent	8,247,000	1,955,000
Commitments & contingencies (Note 13)
Shareholders’ equity:
Preferred stock, $.01 par value, 3,000,000 shares authorized, none issued and outstanding at both December 31, 2019 and 2018	0	0
Common stock, $.01 par value, 240,000,000 shares authorized, 95,648,648 shares issued at both December 31, 2019 and 2018, respectively	956,000	956,000
Additional paid-in capital	323,600,000	341,241,000
Retained earnings	489,382,000	413,799,000
Accumulated other comprehensive loss	(22,422,000)	(13,700,000)
Less: Common stock held in treasury, at cost, 1,450,875 shares and 1,137,470 shares at December 31, 2019 and 2018, respectively	(24,163,000)	(17,722,000)
Total Callaway Golf Company shareholders’ equity	767,353,000	724,574,000
Non-controlling interest in consolidated entity (Note 10)	0	9,734,000
Total shareholders’ equity	767,353,000	734,308,000
Total liabilities and shareholders’ equity	$ 1,960,548,000	$ 1,052,944,000

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	3,000,000	3,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	240,000,000	240,000,000
Common stock, shares issued (in shares)	95,042,557	94,214,295
Common stock held in treasury (in shares)	411,013	97,837

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Net sales	$ 1,701,063	$ 1,242,834	$ 1,048,736
Cost of sales	934,276	664,465	568,288
Gross profit	766,787	578,369	480,448
Selling expenses	438,238	308,709	270,890
General and administrative expenses	145,302	100,466	94,153
Research and development expenses	50,579	40,752	36,568
Total operating expenses	634,119	449,927	401,611
Income from operations	132,668	128,442	78,837
Interest income	807	594	454
Interest expense	(39,300)	(5,543)	(4,365)
Other income (expense), net	1,594	7,779	(6,871)
Income before income taxes	95,769	131,272	68,055
Income tax provision	16,540	26,018	26,388
Net income	79,229	105,254	41,667
Less: Net income (loss) attributable to non-controlling interests	(179)	514	861
Net income attributable to Callaway Golf Company	$ 79,408	$ 104,740	$ 40,806
Earnings per common share:
Basic (in dollars per share)	$ 0.84	$ 1.11	$ 0.43
Diluted (in dollars per share)	$ 0.82	$ 1.08	$ 0.42
Weighted-average common shares outstanding:
Basic (in shares)	94,251	94,579	94,329
Diluted (in shares)	96,287	97,153	96,577

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 79,229	$ 105,254	$ 41,667
Other comprehensive income (loss):
Change in derivative instruments	(5,585)	153	(2,492)
Foreign currency translation adjustments	(4,751)	(7,672)	14,361
Comprehensive income, before income tax on other comprehensive income items	68,893	97,735	53,536
Income tax expense on derivative instruments	1,275	282	594
Comprehensive income	70,168	98,017	54,130
Less: Comprehensive income (loss) attributable to non-controlling interests	(339)	297	163
Comprehensive income attributable to Callaway Golf Company	$ 70,507	$ 97,720	$ 53,967

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ 79,229,000	$ 105,254,000	$ 41,667,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	34,951,000	19,948,000	17,605,000
Lease, Amortization	30,893,000	0	0
Amortization of Debt Discount (Premium)	3,262,000	0	0
Inventory step-up amortization from acquisitions	10,885,000	0	3,112,000
Deferred taxes	(1,381,000)	21,705,000	24,594,000
Non-cash share-based compensation	12,896,000	13,530,000	12,647,000
Loss (gain) on disposal of long-lived assets	218,000	(13,000)	1,490,000
Unrealized foreign currency loss (gain)	3,642,000	(4,585,000)	1,023,000
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	(44,476,000)	(2,109,000)	51,618,000
Inventories	(33,952,000)	(78,017,000)	(52,010,000)
Other assets	(12,124,000)	(9,975,000)	(6,533,000)
Accounts payable and accrued expenses	34,908,000	22,268,000	15,414,000
Accrued employee compensation and benefits	(2,460,000)	3,148,000	7,021,000
Accrued warranty expense	(144,000)	953,000	1,262,000
Operating and financing leases	(29,874,000)	0	0
Income taxes receivable/payable, net	1,414,000	82,000	(2,155,000)
Other liabilities	(1,337,000)	93,000	944,000
Net cash provided by operating activities	86,550,000	92,282,000	117,699,000
Cash flows from investing activities:
Capital expenditures	(54,702,000)	(36,825,000)	(26,203,000)
Investment in golf-related ventures	(17,897,000)	(1,743,000)	(21,499,000)
Payments to Acquire Businesses, Net of Cash Acquired	(463,105,000)	0	(183,478,000)
Proceeds from sales of property and equipment	38,000	43,000	587,000
Net cash used in investing activities	(535,666,000)	(38,525,000)	(230,593,000)
Cash flows from financing activities:
Proceeds from (repayments of) credit facilities, net	105,850,000	(47,455,000)	75,789,000
Proceeds from issuance of long-term debt	493,167,000	0	11,815,000
Repayments of long-term debt	(36,685,000)	(2,186,000)	0
Finance Lease, Principal Payments	(706,000)	0	0
Payments of Debt Issuance Costs	19,091,000	0	2,246,000
Exercise of stock options	368,000	1,636,000	5,362,000
Dividends paid, net	(3,776,000)	(3,788,000)	(3,773,000)
Acquisition of treasury stock	(28,073,000)	(22,456,000)	(16,617,000)
Distributions to non-controlling interest	0	(821,000)	(974,000)
Payments to Acquire Interest in Joint Venture	(18,538,000)	0	0
Net cash provided by (used in) financing activities	492,516,000	(75,070,000)	69,356,000
Effect of exchange rate changes on cash and cash equivalents	(715,000)	(380,000)	3,237,000
Net increase (decrease) in cash and cash equivalents	42,685,000	(21,693,000)	(40,301,000)
Cash and cash equivalents at beginning of year	63,981,000	85,674,000	125,975,000
Cash and cash equivalents at end of year	106,666,000	63,981,000	85,674,000
Supplemental disclosures:
Cash paid for interest and fees	32,875,000	4,990,000	4,594,000
Cash paid for income taxes, net	9,520,000	9,564,000	10,788,000
Noncash investing and financing activities:
Accrued capital expenditures at period-end	3,128,000	2,672,000	2,007,000
Issuance of treasury stock and common stock for compensatory stock awards released from restriction	$ 20,656,000	$ 5,744,000	$ 5,813,000

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Callaway Golf Company	Non-controlling Interest
Beginning balance (in shares) at Dec. 31, 2016		94,214				98
Beginning balance at Dec. 31, 2016	$ 608,600,000	$ 942,000	$ 330,206,000	$ 287,129,000	$ (18,466,000)	$ (905,000)	$ 598,906,000	$ 9,694,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Acquisition of treasury stock (in shares)						(1,536)
Acquisition of treasury stock	(16,617,000)					$ (16,617,000)	(16,617,000)
Exercise of stock options (in shares)						681
Exercise of stock options	5,362,000		(1,899,000)			$ 7,261,000	5,362,000
Compensatory awards released from restriction (in shares)		825				542
Compensatory awards released from restriction	0	$ 8,000	(5,813,000)			$ 5,805,000
Share-based compensation	12,647,000		12,647,000				12,647,000
Stock dividends (in shares)		(4)
Stock dividends	0		81,000	(81,000)
Cash dividends ($0.04 per share)	(3,773,000)			(3,773,000)			(3,773,000)
Equity adjustment from foreign currency translation	14,361,000				14,198,000		14,198,000	163,000
Change in fair value of derivative instruments, net of tax	(1,898,000)				(1,898,000)		(1,898,000)
Non-controlling interest	974,000							974,000
Net income	41,667,000			40,806,000			40,806,000	861,000
Ending balance (in shares) at Dec. 31, 2017		(95,043)				(411)
Ending balance at Dec. 31, 2017	659,375,000	$ 950,000	335,222,000	324,081,000	(6,166,000)	$ (4,456,000)	649,631,000	9,744,000
Cumulative Effect on Retained Earnings, Net of Tax	(11,185,000)			(11,185,000)			(11,185,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Acquisition of treasury stock (in shares)						(1,412)
Acquisition of treasury stock	(22,456,000)					$ (22,456,000)	(22,456,000)
Exercise of stock options (in shares)						231
Exercise of stock options	1,636,000		(1,734,000)			$ 3,370,000	1,636,000
Compensatory awards released from restriction (in shares)		606				451
Compensatory awards released from restriction	0	$ 6,000	(5,744,000)			$ 5,738,000
Share-based compensation	13,530,000		13,530,000				13,530,000
Stock dividends (in shares)						(3)
Stock dividends	0		(33,000)	(49,000)		$ 82,000
Cash dividends ($0.04 per share)	(3,788,000)			(3,788,000)			(3,788,000)
Equity adjustment from foreign currency translation	(7,672,000)				(7,969,000)		(7,969,000)	297,000
Change in fair value of derivative instruments, net of tax	435,000				435,000		435,000
Distributions to non-controlling interests	(821,000)							(821,000)
Net income	105,254,000			104,740,000			104,740,000	514,000
Ending balance (in shares) at Dec. 31, 2018		(95,649)				(1,138)
Ending balance at Dec. 31, 2018	734,308,000	$ 956,000	341,241,000	413,799,000	(13,700,000)	$ (17,722,000)	724,574,000	9,734,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Acquisition of treasury stock (in shares)						(1,690)
Acquisition of treasury stock	$ (28,073,000)					$ (28,073,000)	(28,073,000)
Exercise of stock options (in shares)	56					56
Exercise of stock options	$ 368,000		(560,000)			$ 928,000	368,000
Compensatory awards released from restriction (in shares)						1,318
Compensatory awards released from restriction	0		(20,656,000)			$ 20,656,000
Share-based compensation	12,896,000		12,896,000				12,896,000
Stock dividends (in shares)						3
Stock dividends	0		1,000	(49,000)		$ 48,000
Cash dividends ($0.04 per share)	(3,776,000)			(3,776,000)			(3,776,000)
Equity adjustment from foreign currency translation	(4,751,000)				(4,412,000)		(4,412,000)	(339,000)
Change in fair value of derivative instruments, net of tax	(4,310,000)				(4,310,000)		(4,310,000)
Non-controlling interest	(18,538,000)		9,322,000				(9,322,000)	(9,216,000)
Net income	79,229,000			79,408,000			79,408,000	(179,000)
Ending balance (in shares) at Dec. 31, 2019		(95,649)				(1,451)
Ending balance at Dec. 31, 2019	$ 767,353,000	$ 956,000	$ 323,600,000	$ 489,382,000	$ (22,422,000)	$ (24,163,000)	$ 767,353,000	$ 0

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY - Parenthetical - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]
Cash dividends (in usd per share)	$ 40.00	$ 40.00	$ 40.00

The Company	12 Months Ended
The Company	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company	Note 1. The Company Callaway Golf Company (“Callaway Golf” or the “Company”), a Delaware corporation, together with its subsidiaries, designs, manufactures and sells high quality golf clubs (woods, irons and putters), golf balls and a full line of apparel, gear and accessories. Since 2017, the Company completed a series of acquisitions (see Note 5) targeted at expanding and diversifying its soft goods product lines to include premium, active lifestyle brands. As of December 31, 2019, the Company's soft goods product lines have been expanded to include premium storage gear for sport and personal use under the OGIO brand, which was acquired in January 2017; premium active lifestyle and golf apparel, as well as gear and accessories under the TravisMathew brand, which was acquired in August 2017; and premium active and urban outdoor apparel as well as equipment and accessories under the Jack Wolfskin brand that was recently acquired in January 2019, which the Company believes is complementary to its portfolio of brands and product capabilities. These acquisitions have enhanced the Company's presence in golf while also providing a platform for future growth in the active lifestyle category. The Company sells its products in the United States and internationally in over 100 countries around the world to golf retailers (including pro-shops at golf courses and off-course retailers), sporting goods retailers, premium department stores, Internet retailers and mass merchants, directly and through its wholly owned subsidiaries and third party distributors, as well as directly to consumers through its retail and outlet locations in the United States, Europe and Japan, and through its e-commerce channel. The Company also sells pre-owned Callaway and non-Callaway branded golf products through its website www.callawaygolfpreowned.com, and licenses its trademarks and service marks to third parties in exchange for a royalty fee for use on golf related accessories including golf apparel and footwear, golf gloves, prescription eyewear and practice aids. The Company's products and brands are reported under two operating segments: Golf Equipment and Apparel, Gear and Other. Sales of Callaway golf clubs, Odyssey putters and Callaway and Strata golf balls are reported in the Golf Equipment operating segment, and sales of Callaway, Odyssey, OGIO, TravisMathew and Jack Wolfskin apparel, gear, equipment and accessories are reported in the Apparel, Gear and Other operating segment. As of December 31, 2019, approximately 42% of the Company's net sales were included in the Apparel, Gear and Other operating segment, and 58% of net sales were included in the Golf Equipment operating segment. For more information about the Company's operating segments see Note 19.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its domestic and foreign subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Examples of such estimates include provisions for warranty, uncollectible accounts receivable, inventory obsolescence, sales returns, tax contingencies and estimates related to the Tax Cuts and Jobs Act (the "Tax Act") enacted in December 2017, estimates on the valuation of share-based awards and recoverability of long-lived assets and investments. Actual results may materially differ from these estimates. On an ongoing basis, the Company reviews its estimates to ensure that these estimates appropriately reflect changes in its business or as new information becomes available.

Recent Accounting Standards

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This ASU removes specific exception to the general principles in Accounting Standards Codification ("ASC") Topic 740, "Accounting for Income Taxes" ("Topic 740") and simplifies certain U.S. GAAP requirements. ASU 2019-12 is effective for public filers for fiscal years, and interim

periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and disclosures.

In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement." The amendments in this ASU will remove, modify or add to the disclosure requirements for fair value measurements in ASC Topic 820, "Fair Value Measurement" ("Topic 820"). The amendments are effective for all entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. An entity is permitted to early adopt the removed or modified disclosures upon the issuance of this ASU and may delay adoption of the additional disclosures required for public companies until the effective date of this ASU. The adoption of this ASU will not have a material impact on the Company's consolidated financial statements and disclosures.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Additionally, this ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. ASU 2016-13 is effective for public filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company will adopt this ASU as of January 1, 2020. The Company completed its preliminary assessment of this new standard, and concluded that the Company's current methodology of estimating credit losses on its trade accounts receivable closely aligns with the requirements of this new standard. Therefore, the Company believes this new standard will not have a material impact on its consolidated financial statements and disclosures.

Adoption of New Accounting Standards

On January 1, 2019, the Company adopted ASU No. 2016-02, "Leases (Topic 842)" ("Topic 842") utilizing the modified retrospective adoption method, and the targeted improvement amendments under ASU 2018-11, which allows entities to change their date of initial application to January 1, 2019 and not restate the comparative prior periods in the period of adoption when transitioning to Topic 842. Therefore, the consolidated financial statements for the year ended December 31, 2019 are presented under the new standard, while the comparative periods presented are not adjusted and continue to be reported in accordance with the Company's historical accounting policy. Under Topic 842, the Company elected the transition relief package to not reassess (1) any expired or existing contracts that are leases or contain leases, (2) the classification of any expired or existing leases and (3) initial direct costs for any existing leases. This standard requires all lessees to recognize a right-of-use ("ROU") asset and a lease liability, initially measured at the present value of the lease payments, for all leases with a term greater than 12 months. The adoption of the new lease standard had a significant impact on the Company's consolidated balance sheet due to the recognition of $133,632,000 of ROU assets for operating leases and a corresponding lease obligation of $136,290,000. The accounting for finance leases is substantially unchanged. The adoption of Topic 842 did not have a material impact on the Company's lease classification or on its statements of operations and liquidity. Additionally, the adoption of Topic 842 did not have a material impact on the Company’s debt-covenant compliance under its current agreements. See Note 3 for information regarding the Company's adoption of Topic 842 and the Company's undiscounted future lease payments and the timing of those payments.

On January 1, 2019, the Company adopted ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." The new standard refined and expanded hedge accounting for both financial (e.g., interest rate) and commodity risks to create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. It also targeted improvements to simplify the application of hedge accounting guidance. Based on the Company's assessment, this new standard did not have a material impact on the Company's consolidated financial statements and disclosures.

Significant Accounting Policies

Warranty Policy

The Company has a stated two-year warranty policy for its golf clubs and certain Jack Wolfskin gear, as well as a limited lifetime warranty for its OGIO line of products. 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 Company’s estimates for calculating the warranty reserve are principally based on assumptions regarding the warranty costs of each product line over the expected warranty period. Where little or no claims experience may exist, the Company’s warranty obligation calculation is based upon long-term historical warranty rates of similar products until sufficient data is available. As actual model-specific rates become available, the Company’s estimates are modified to reflect the range of likely outcomes.

The warranty provision for the year ended December 31, 2019 includes the warranty reserves assumed in connection with the Jack Wolfskin acquisition (see Note 5).

The following table provides a reconciliation of the activity related to the Company’s accrued warranty expense:



	Years Ended December 31,
	2019			2018			2017
	(In thousands)
Beginning balance	$	7,610		$	6,657		$	5,395
Provision	8,311			9,437			9,434
Provision liability assumed from acquisition	2,208			—			—
Claims paid/costs incurred	(8,493		)	(8,484		)	(8,172		)
Ending balance	$	9,636		$	7,610		$	6,657

Fair Value Measurements

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. The Company measures and discloses the fair value of nonfinancial and financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. The measurement of assets and liabilities 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 Company measures fair value using a set of standardized procedures that are outlined herein for all assets and liabilities which are required to be measured at fair value. When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and classifies such items in Level 1. In some instances where a market price is available, but the instrument is in an inactive or over-the-counter market, the Company consistently applies the dealer (market maker) pricing estimate and uses a midpoint approach on bid and ask prices from financial institutions to determine the reasonableness of these estimates. Assets and liabilities subject to this fair value valuation approach are typically classified as Level 2.

Items valued using internally-generated valuation techniques are classified according to the lowest level input that is significant to the fair value measurement. As a result, the asset or liability could be classified in either Level 2 or Level 3 even

though there may be some significant inputs that are readily observable. The Company utilizes a discounted cash flow valuation model whenever applicable to derive a fair value measurement on long-lived assets and goodwill and intangible assets. The Company uses its internal cash flow estimates discounted at an appropriate rate, quoted market prices, royalty rates when available and independent appraisals as appropriate. The Company also considers its counterparty’s and own credit risk on derivatives and other liabilities measured at their fair value.

Business Combinations

The Company allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require the Company to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, the use of expected future revenues, cash flows and growth rates as well as estimated discount rates. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Allocation of purchase consideration to identifiable assets and liabilities affects Company amortization expense, as acquired finite-lived intangible assets are amortized over the useful life, whereas any indefinite lived intangible assets, including goodwill, are not amortized. During the measurement period of one year from the acquisition date, the Company recorded adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Any subsequent adjustments to the acquired assets and liabilities will be recorded in earnings.

Advertising Costs

The Company's primary advertising costs are from television and print media advertisements. The Company’s policy is to expense advertising costs, including production costs, as incurred. Advertising expenses for 2019, 2018 and 2017 were $93,331,000, $72,164,000 and $62,898,000, respectively.

Research and Development Costs

Research and development costs are expensed as incurred. Research and development costs for 2019, 2018 and 2017 were $50,579,000, $40,752,000 and $36,568,000, respectively.

Foreign Currency Translation and Transactions

A significant portion of the Company’s business is conducted outside of the United States in currencies other than the U.S. dollar. As a result, changes in foreign currency exchange rates can have a significant effect on the Company’s financial results. Revenues and expenses that are denominated in foreign currencies are translated using the average exchange rate for the period. Assets and liabilities are translated at the rate of exchange on the balance sheet date. Gains and losses from assets and liabilities denominated in a currency other than the functional currency of the entity in which they reside are generally recognized currently in the Company's statements of operations. Gains and losses from the translation of foreign subsidiary financial statements into U.S. dollars are included in accumulated other comprehensive income or loss (see Accumulated Other Comprehensive Income (Loss) policy below).

The Company recorded net losses in foreign currency transactions of $5,838,000 and $2,824,000 in 2019 and 2018, respectively, and a net gain of $808,000 in 2017.

Derivatives and Hedging

In order to mitigate the impact of foreign currency translation on transactions and changes in interest rates, the Company uses foreign currency forward contracts, cross-currency debt swaps and interest rate hedge contracts that are accounted for as designated and non-designated hedges pursuant to ASC Topic 815, “Derivatives and Hedging” ("ASC Topic 815"). ASC Topic 815 requires that an entity recognize all derivatives as either assets or liabilities on the balance sheet, measure those instruments at fair value and recognize changes in the fair value of derivatives in earnings in the period of change unless the derivative qualifies as 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. Derivatives that are not elected for hedge accounting treatment are recorded immediately in earnings.

The Company would discontinue hedge accounting prospectively (i) if 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 17).

Cash and Cash Equivalents

Cash equivalents are highly liquid investments purchased with original maturities of three months or less.

Trade Accounts Receivable

The Company's trade accounts receivable are recorded at net realizable value, which includes an appropriate allowance for estimated credit losses, as well as reserves related to product returns and sales programs as described in Note 4. The estimate of credit losses is based upon historical bad debts, current customer receivable balances, age of customer receivable balances, the customer’s financial condition and current economic trends, all of which are subject to change. Actual uncollected amounts have historically been consistent with the Company’s expectations. The Company's payment terms on its receivables from customers are generally 60 days or less.

From time to time, dependent upon the cost, the Company purchases trade insurance to mitigate the risk of uncollectible accounts on its outstanding accounts receivable. The Company considers any available insurance coverage when estimating its provision for uncollectible accounts. Insurance claim recoveries from this trade insurance are applied to the Company’s outstanding accounts receivable or are recorded as a reduction to bad debt expense in the period in which the claim is received.

The following table provides a reconciliation of the activity related to the Company’s allowance for estimated credit losses.



	Years Ended December 31,
	2019			2018			2017
	(In thousands)
Beginning balance	$	5,610		$	4,447		$	5,728
Provision for credit losses	1,107			2,257			2,335
Write-off of uncollectible amounts, net of recoveries	(725		)	(1,094		)	(3,616		)
Ending balance	$	5,992		$	5,610		$	4,447

Inventories

Inventories are valued at the lower of cost or net realizable value. Cost is determined using the first-in, first-out (FIFO) method. The inventory balance, which includes material, labor and manufacturing overhead costs, is recorded net of an estimate for obsolete or unmarketable inventory. This estimate is based upon current inventory levels, sales trends and historical experience as well as management’s estimates of market conditions and forecasts of future product demand, all of which are subject to change.

Merchandise inventories for Jack Wolfskin, TravisMathew and Callaway branded soft goods offered for sale at the Company's retail stores and through its on-line business are stated at the lower of cost or net realizable value using the retail inventory method. An initial markup is applied to inventory at cost in order to establish a cost-to-retail ratio, which the Company believes approximates cost. The Company reviews inventory levels to identify slow-moving merchandise and generally uses markdowns to clear this merchandise. At any given time, merchandise inventories include items that have been marked down to the Company's best estimate of their fair market value at retail price, with a proportionate write-down to the cost of the inventory. The Company bases the decision to mark down merchandise primarily upon its current sell-through rate and the age of the item, among other factors.

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives generally as follows:



Buildings and improvements	10-30 years
Machinery and equipment	5-10 years
Furniture, computers and equipment	3-5 years
Production molds	2-5 years

Normal repairs and maintenance costs are expensed as incurred. Expenditures that materially increase values, change capacities or extend useful lives are capitalized. The related costs and accumulated depreciation of disposed assets are eliminated and any resulting gain or loss on disposition is recognized in earnings. Construction in-process consists primarily of costs associated with building improvements, machinery and equipment that have not yet been placed into service, unfinished molds as well as in-process internal-use software.

In accordance with ASC Topic 350-40, “Internal-Use Software,” the Company capitalizes certain costs incurred in connection with developing or obtaining internal use software. Costs incurred in the preliminary project stage are expensed. All direct external costs incurred to develop internal-use software during the development stage are capitalized and depreciated using the straight-line method over the remaining estimated useful lives. Costs such as maintenance and training are expensed as incurred.

Long-Lived Assets

In accordance with ASC Topic 360-10-35, “Impairment or Disposal of Long-Lived Assets”, the Company assesses potential impairments of its long-lived assets whenever events or changes in circumstances indicate that the asset’s carrying value may not be recoverable. An impairment charge would be recognized when the carrying amount of a long-lived asset or asset group is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset or asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group.

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 acquisitions of Odyssey Sports, Inc. in 1997, FrogTrader, Inc. in 2004, OGIO in January 2017, TravisMathew in August 2017, Jack Wolfskin in January 2019, and certain foreign distributors.

In accordance with ASC Topic 350, “Intangibles—Goodwill and Other,” goodwill and intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually or more frequently when events indicate that an impairment exists. The Company calculates impairment as the excess of the carrying value of goodwill and other indefinite-lived intangible assets over their estimated fair value. If the carrying value exceeds the estimate of fair value a write-down is recorded. To determine fair value, the Company uses its internal discounted cash flow estimates, quoted market prices, royalty rates when available and independent appraisals when appropriate. The Company completed its annual impairment test and fair value analysis of goodwill and other indefinite-lived intangible assets as of December 31, 2019, and the estimated fair values of the Company’s reporting units, as well as the estimated fair values of certain trade names and trademarks, significantly exceeded their carrying values. As a result, no impairment was recorded as of December 31, 2019.

Intangible assets that are determined to have definite lives are amortized over their estimated useful lives and are measured for impairment only when events or circumstances indicate the carrying value may be impaired in accordance with ASC Topic 360-10-35 discussed above. See Note 8 for further discussion of the Company’s goodwill and intangible assets.

Costs related to the development, maintenance or renewal of internally developed intangible assets that are inherent in the Company's continuing business and relate to the Company as a whole, that were not acquired as a part of a business combination or asset acquisition, are expensed as incurred.

Investments

The Company determines the appropriate classification of its investments at the time of acquisition and reevaluates such classification at each balance sheet date. Investments that do not have readily determinable fair values are stated at cost. The Company monitors investments for impairment whenever events or changes in circumstances indicate that the investment's carrying value may not be recoverable. An impairment charge would be recognized when the carrying amount exceeds its fair value. See Note 9 for further discussion of the Company’s investments.

Share-Based Compensation

The Company accounts for its share-based compensation arrangements in accordance with (i) ASC Topic 718, “Compensation—Stock Compensation” (“ASC Topic 718”), which requires the measurement and recognition of compensation expense for all share-based payment awards to employees and non-employees based on estimated fair values and (ii) ASU No. 2014-12, "Compensation—Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period" ("ASU No. 2014-12"). ASC Topic 718 further requires a reduction in share-based compensation expense by an estimated forfeiture rate. The forfeiture rate used by the Company is based on historical forfeiture trends. If actual forfeiture rates are not consistent with the Company’s estimates, the Company may be required to increase or decrease compensation expenses in future periods.

Performance based awards are stock-based awards in which the number of shares ultimately received depends on the Company's performance against specified goals that are measured over a designated performance period from the date of grant. These performance goals 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 0% to 200% of the participant's target award. The Company primarily grants two types of performance based awards: (1) performance share units subject to performance against designated financial goals and (2) performance share units subject to total shareholder return in relation to the total shareholder return of certain designated comparison companies.

Performance share units are initially valued at the Company's closing stock price on the date of grant. Stock compensation expense, net of estimated forfeitures, is recognized on a straight-line basis over the vesting period. The expense recognized over the vesting period is adjusted up or down based on the anticipated performance level 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 share units cliff-vest in full over a period of three to five years from the date of grant.

Performance share units with total shareholder return requirements are awards that compare the performance of the Company's common stock over a three-year period to that of the Company's peer group. The fair value of these awards is derived using the Monte Carlo simulation which utilizes the stock volatility, dividend yield and market correlation of the Company and the Company's peer group. The Monte Carlo fair value is expensed on a straight-line basis over the vesting period, net of estimated forfeitures. The awards are forfeited if the threshold performance metrics are not achieved as of the end of the performance period. The performance share units cliff-vest in full over a three-year vesting period.

The Company records compensation expense for restricted stock awards and restricted stock units (collectively “restricted stock”) based on the estimated fair value of the award on the date of grant. The estimated fair value is determined based on the closing price of the Company’s common stock on the award date multiplied by the number of shares underlying the restricted stock awarded. Total compensation expense is recognized on a straight-line basis over a vesting period of three to five years from the date of grant.

Income Taxes

Current income tax expense or benefit is the amount of income taxes expected to be payable or receivable for the current year. A deferred income tax asset or liability is established for the difference between the tax basis of an asset or liability computed pursuant to ASC Topic 740 and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively. In accordance with the applicable accounting rules, the Company maintains a valuation allowance for a deferred tax asset when it is deemed to be more likely than not that some or all of the deferred tax assets will not be realized. In evaluating whether a valuation allowance is required under such rules, the Company considers all available positive and negative evidence, including prior operating results, the nature and reason for any losses, its forecast of future taxable income, and the dates on which any deferred

tax assets are expected to expire. These assumptions require a significant amount of judgment, including estimates of future taxable income. These estimates are based on the Company’s best judgment at the time made based on current and projected circumstances and conditions. For further information, see Note 12 “Income Taxes.”

Pursuant to ASC Topic 740-25-6, the Company is required to accrue for the estimated additional amount of taxes for uncertain tax positions if it is deemed to be more likely than not that the Company would be required to pay such additional taxes. The Company is required to file federal and state income tax returns in the United States and various other income tax returns in foreign jurisdictions. The preparation of these income tax returns requires the Company to interpret the applicable tax laws and regulations in effect in such jurisdictions, which could affect the amount of tax paid by the Company. The Company accrues an amount for its estimate of additional tax liability, including interest and penalties in income tax expense, for any uncertain tax positions taken or expected to be taken in an income tax return. The Company reviews and updates the accrual for uncertain tax positions as more definitive information becomes available. Historically, additional taxes paid as a result of the resolution of the Company’s uncertain tax positions have not been materially different from the Company’s expectations. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. For further information, see Note 12 “Income Taxes.”

In December 2017, the U.S. government enacted comprehensive tax legislation referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Company has elected to treat global intangible low taxed income ("GILTI") as a period cost and will expense GILTI in the period it is incurred. No other income tax policies have been adopted or adjusted as a result of the Tax Act. For further information, see Note 12 “Income Taxes.”

Other Income (Expense), Net

Other income (expense), net primarily includes gains and losses on foreign currency forward contracts, cross-currency debt swap contracts and foreign currency transactions. The components of other income (expense), net are as follows:



	Years Ended December 31,
	2019			2018			2017
	(In thousands)
Foreign currency forward contract gain (loss), net	$	6,947		$	10,085		$	(7,688	)
Foreign currency transaction gain (loss), net	(5,838		)	(2,824		)	808
Other	485			518			9
	$	1,594		$	7,779		$	(6,871	)

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss includes the impact of foreign currency translation adjustments and activity related to derivative instruments designated for hedge accounting. The total equity adjustments from foreign currency translation included in accumulated other comprehensive loss were net losses of $4,412,000 and $7,969,000 for the years ended December 31, 2019 and 2018, respectively, and net gains of $14,198,000 for the year ended December 31, 2017. The total equity adjustments from the remeasurement of derivative instruments, net of amounts reclassified from equity to the consolidated statement of operations, were net losses of $4,310,000 and $1,898,000 for the years ended December 31, 2019 and 2017, respectively, and net gains of $435,000 for the year ended December 31, 2018. For further information see Note 18 "Derivatives and Hedging."

The following table details the amounts reclassified from accumulated other comprehensive income to cost of goods sold, as well as changes in foreign currency translation for the years ended December 31, 2019, 2018 and 2017 (in thousands):



	Derivative Instruments			Foreign Currency Translation			Total
Accumulated other comprehensive loss, December 31, 2016	$	1,570		$	(20,036	)	$	(18,466	)
Change in derivative instruments	(2,679		)	—			(2,679		)
Net losses reclassified to cost of goods sold	187			—			187
Foreign currency translation adjustments	—			14,198			14,198
Income tax expense	594			—			594
Accumulated other comprehensive loss, December 31, 2017, after tax	(328		)	(5,838		)	(6,166		)
Change in derivative instruments	389			—			389
Net gains reclassified to cost of goods sold	(236		)	—			(236		)
Foreign currency translation adjustments	—			(7,969		)	(7,969		)
Income tax expense	282			—			282
Accumulated other comprehensive loss, December 31, 2018, after tax	107			(13,807		)	(13,700		)
Change in derivative instruments	2,811			—			2,811
Net gains reclassified to cost of goods sold	(1,165		)	—			(1,165		)
Net gains reclassified to other income (expense)	(2,756		)	—			(2,756		)
Net gains reclassified to interest expense	(4,475		)	—			(4,475		)
Foreign currency translation adjustments	—			(4,412		)	(4,412		)
Income tax expense	1,275			—			1,275
Accumulated other comprehensive loss, December, 2019, after tax	$	(4,203	)	$	(18,219	)	$	(22,422	)

Segment Information

At December 31, 2018 the Company had three operating and reportable segments, namely Golf Clubs, Golf Balls and Gear, Accessories and Other. Due to the Company's acquisition of Jack Wolfskin in January 2019, combined with the continued growth of TravisMathew branded soft goods, the Company has experienced significant growth in its soft goods business. As of January 1, 2019, the Company re-evaluated its global business platform, including its management structure, operations, supply chain and distribution, in addition to how it reviews the results of its operations to assess its performance and allocate resources and also reassessed its operating segments. Based on this assessment, the Company concluded it has two reportable operating segments: Golf Equipment operating segment and Apparel, Gear and Other operating segment.

The Golf Equipment operating segment, which is comprised of golf club and golf ball products, includes Callaway Golf branded woods, hybrids, irons, wedges, Odyssey putters, including Toulon Design putters by Odyssey, packaged sets, Callaway Golf and Strata branded golf balls and sales of pre-owned golf clubs.

The Apparel, Gear and Other operating segment includes the newly acquired Jack Wolfskin outdoor apparel, equipment and accessories business, the TravisMathew golf and lifestyle apparel and accessories business, and the Callaway and Ogio business, which consists of golf apparel and accessories, footwear, storage gear for sport and personal use, and royalties from licensing of the Company’s trademarks and service marks for various soft goods products.

This information, as well as information about the Company's geographic areas, is presented in Note 19 “Segment Information.”

Concentration of Risk

The Company operates in the golf equipment industry and has a concentrated customer base, which is primarily comprised of golf equipment retailers (including pro shops at golf courses and off-course retailers), sporting goods retailers and mass merchants and foreign distributors. On a consolidated basis, no single customer accounted for more than 10% of the Company’s consolidated revenues in 2019, 2018, and 2017. The Company's top five customers accounted for approximately 18% of the Company's consolidated revenues in 2019, 22% in 2018, and 21% in 2017.

The Company's top five customers specific to each operating segment represented the following as a percentage of each segment's total net sales by operating segment:


•	Golf Equipment customers accounted for approximately 23%, 24% and 22% of total consolidated Golf Equipment sales in 2019, 2018 and 2017, respectively; and


•	Apparel, Gear and Other customers accounted for approximately 11%, 19% and 15% of total consolidated Apparel, Gear and Other sales in 2019, 2018 and 2017, respectively.

A loss of one or more of these customers would have a significant effect on the Company's net sales.

With respect to the Company's trade receivables, the Company performs ongoing credit evaluations of its customers’ financial condition and generally requires no collateral from these customers. The Company maintains reserves for estimated credit losses, which it considers adequate to cover any such losses. At December 31, 2019 one customer represented 11% of the Company’s outstanding accounts receivable balance. At December 31, 2018, one customer represented 12% of the Company’s outstanding accounts receivable balance. Of the Company’s total net sales, approximately 54%, 43% and 46% were derived from sales outside of the United States in 2019, 2018 and 2017, respectively.

The Company is dependent on a limited number of suppliers for its clubheads and shafts, some of which are single sourced. Furthermore, some of the Company’s products require specially developed manufacturing techniques and processes which make it difficult to identify and utilize alternative suppliers quickly. The Company also depends on a single or a limited number of suppliers for the materials it uses to make its golf balls. Many of these materials are customized for the Company.

The Company’s financial instruments that are subject to concentrations of credit risk consist primarily of cash equivalents, trade receivables, foreign currency forward contracts, cross-currency debt swap contracts and interest rate hedge contracts.

From time to time, the Company invests its excess cash in money market accounts and short-term U.S. government securities and has established guidelines relative to diversification and maturities in an effort to maintain safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates.

The Company enters into foreign currency forward contracts and cross-currency debt swaps for the purpose of hedging foreign exchange rate exposures on existing or anticipated transactions, and interest rate hedge contracts for the purpose of hedging interest rate exposures on its term loan facility. In the event of a failure to honor one of these contracts by one of the banks with which the Company has contracted, management believes any loss would be limited to the exchange rate differential from the time the contract was made until the time it was settled. The Company's hedging contracts are subject to a master netting agreement with each respective counterparty bank and are therefore net settled.

Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Note 3. Leases

The Company leases office space, manufacturing plants, warehouses, distribution centers and vehicles and equipment, for all of its affiliates as well as retail and/or outlet locations related to the TravisMathew and Jack Wolfskin businesses and the Callaway apparel business in Japan. Certain real estate leases include one or more options to renew, with renewal terms that can extend the lease term for up to eight years. The exercise of lease renewal options are at the Company's sole discretion. Certain leases also include options to purchase the leased property. When deemed reasonably certain of exercise, the renewal and purchase options are included in the determination of the lease term and lease payment obligation, respectively. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Right of use ("ROU") assets represent the right to use an underlying asset during the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of the minimum lease payments over the lease term. When readily determinable, the Company uses the rate implicit in the lease agreement in determining the present value of lease payments. If the implicit rate is not provided, the Company uses its incremental borrowing rate based on information available at the lease commencement date, including the lease term. At the commencement of a lease, the ROU asset for operating leases is measured by taking the sum of the present value of the lease liability, initial direct costs (if any) and prepaid lease payments (if any), and deducting lease incentives (if any). After the lease commencement date and over the lease term, lease expense is recognized as a single lease cost on a straight-line basis. Lease agreements related to properties are generally comprised of lease components and non-lease components. Non-lease components, such as common area maintenance charges,

are expensed as incurred and recognized separately from the straight-line lease expense. Variable lease payments that do not depend on an index or rate, such as rental payments based on a percentage of retail sales over contractual levels, are expensed separately as incurred, and are not included in the measurement of the ROU asset and lease liability. Variable lease payments that depend on an index or rate, such as payments that are adjusted periodically for inflation, are included in the measurement of the ROU asset and lease liability and are recognized on a straight-line basis over the lease term.

Supplemental balance sheet information related to leases is as follows (in thousands):



	Balance Sheet Location	December 31, 2019
Operating leases
ROU assets, net	Operating lease ROU assets, net	$	160,098
Lease liabilities, short-term	Operating lease liabilities, short-term	$	26,418
Lease liabilities, long-term	Operating lease liabilities, long-term	$	137,696

Finance Leases
ROU assets, net,	Other assets	$	1,263
Lease liabilities, short-term	Accounts payable and accrued expenses	$	589
Lease liabilities, long-term	Long-term other	$	558

The components of lease expense are as follows (in thousands):



	December 31, 2019
Operating lease costs	$	38,449
Financing lease costs:
Amortization of right-of-use assets	845
Interest on lease liabilities	83
Total financing lease costs	928
Variable lease costs	4,361
Total lease costs	$	43,738

Other information related to leases was as follows (in thousands):



Supplemental Cash Flows Information	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	38,926
Operating cash flows from finance leases	$	83
Financing cash flows from finance leases	$	706

Lease liabilities arising from new ROU assets:
Operating leases	$	18,026
Finance leases	$	308

Weighted average remaining lease term (years):
Operating leases	10.4
Finance leases	2.8

Weighted average discount rate:
Operating leases	5.7		%
Finance leases	4.2		%

Future minimum lease obligations as of December 31, 2019 were as follows (in thousands):



	Operating Leases		Finance Leases
2020	$	34,573	$	629
2021	29,034		242
2022	24,786		201
2023	21,203		92
2024	17,873		19
Thereafter	85,483		22
Total future lease payments	212,952		1,205
Less: imputed interest	48,838		58
Total	$	164,114	$	1,147

Leases

Note 3. Leases

Supplemental balance sheet information related to leases is as follows (in thousands):



	Balance Sheet Location	December 31, 2019
Operating leases
ROU assets, net	Operating lease ROU assets, net	$	160,098
Lease liabilities, short-term	Operating lease liabilities, short-term	$	26,418
Lease liabilities, long-term	Operating lease liabilities, long-term	$	137,696

Finance Leases
ROU assets, net,	Other assets	$	1,263
Lease liabilities, short-term	Accounts payable and accrued expenses	$	589
Lease liabilities, long-term	Long-term other	$	558

The components of lease expense are as follows (in thousands):



	December 31, 2019
Operating lease costs	$	38,449
Financing lease costs:
Amortization of right-of-use assets	845
Interest on lease liabilities	83
Total financing lease costs	928
Variable lease costs	4,361
Total lease costs	$	43,738

Other information related to leases was as follows (in thousands):



Supplemental Cash Flows Information	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	38,926
Operating cash flows from finance leases	$	83
Financing cash flows from finance leases	$	706

Lease liabilities arising from new ROU assets:
Operating leases	$	18,026
Finance leases	$	308

Weighted average remaining lease term (years):
Operating leases	10.4
Finance leases	2.8

Weighted average discount rate:
Operating leases	5.7		%
Finance leases	4.2		%

Future minimum lease obligations as of December 31, 2019 were as follows (in thousands):



	Operating Leases		Finance Leases
2020	$	34,573	$	629
2021	29,034		242
2022	24,786		201
2023	21,203		92
2024	17,873		19
Thereafter	85,483		22
Total future lease payments	212,952		1,205
Less: imputed interest	48,838		58
Total	$	164,114	$	1,147

Revenue Recognition Revenue Recognition

12 Months Ended

Dec. 31, 2019

Revenue Recognition [Abstract]

Revenue from Contract with Customer [Text Block]

Note 4. Revenue Recognition

The Company recognizes revenue from the sale of its products, which include golf clubs, golf balls, lifestyle and outdoor apparel, gear and accessories, in addition to golf apparel and accessories. The Company sells its products to customers, which include on- and off-course golf shops and national retail stores, as well as to consumers through its e-commerce business and at its apparel retail locations. In addition, the Company recognizes royalty income from third parties from the licensing of certain soft goods products, as well as revenue from gift cards.

The Company's contracts with customers are generally in the form of a purchase order. In certain cases, the Company enters into sales agreements containing specific terms, discounts and allowances. In addition, the Company enters into licensing agreements with certain distributors.

As of January 1, 2019, the Company has two operating and reportable segments, namely the Golf Equipment operating segment and the Apparel, Gear and Other operating segment. The following table presents the Company's revenue disaggregated by major product category and operating and reportable segment (in thousands):



	Operating and Reportable Segments⁽¹⁾
	Year Ended December 31, 2019						Year Ended December 31, 2018
	Golf Equipment		Apparel, Gear & Other		Total		Golf Equipment		Apparel, Gear & Other		Total
Major product category:
Golf Clubs	$	768,310	$	—	$	768,310	$	717,293	$	—	$	717,293
Golf Balls	210,863		—		210,863		195,654		—		195,654
Apparel	—		410,712		410,712		—		112,157		112,157
Gear, Accessories & Other	—		311,178		311,178		—		217,730		217,730
	$	979,173	$	721,890	$	1,701,063	$	912,947	$	329,887	$	1,242,834


(1)	The Company changed its operating segments as of January 1, 2019 (see Note 19). Accordingly, prior period amounts have been reclassified to conform with the current period presentation.

The Company sells its golf equipment products and apparel, gear and accessories in the United States and internationally, with its principal international regions being Japan and Europe. As the majority of the Company's sales are concentrated in golf equipment products, sales of golf equipment are generally higher on a regional basis, with the exception of Europe, which has a higher concentration of sales of apparel, gear and other as a result of the Jack Wolfskin acquisition completed in January 2019. See Note 19 for information on revenue by major geographical region.

Product Sales

The Company recognizes revenue from the sale of its products when it satisfies the terms of a sales order from a customer, and transfers control of the products ordered to the customer. Control transfers when products are shipped, and in certain cases, when products are received by customers. In addition, the Company recognizes revenue at the point of sale on transactions with consumers at its retail locations. Sales taxes, value added taxes and other taxes that are collected in connection with revenue transactions are withheld and remitted to the respective taxing authorities. As such, these taxes are excluded from revenue. The Company elected to account for shipping and handling as activities to fulfill the promise to transfer the good. Therefore, shipping and handling fees that are billed to customers are recognized in revenue and the associated shipping and handling costs are recognized in cost of goods sold as soon as control of the goods transfers to the customer.

Royalty Income

Royalty income is recognized over time in net sales as underlying product sales occur, subject to certain minimum royalties, in accordance with the related licensing arrangements. Royalty income is included in the Company's Apparel, Gear and Other operating segment. Total royalty income for the years ended December 31, 2019, 2018 and 2017 was $22,455,000, $19,021,000 and $18,622,000 respectively.

Gift Cards

Revenues from gift cards are deferred and recognized when the cards are redeemed. The Company’s gift cards have no expiration date. The Company recognizes revenue from unredeemed gift cards, otherwise known as breakage, when the likelihood of redemption becomes remote and under circumstances that comply with any applicable state escheatment laws. To determine when redemption is remote, the Company analyzes an aging of unredeemed cards (based on the date the card was last used or the activation date if the card has never been used) and compares that information with historical redemption trends. The Company uses this historical redemption rate to recognize breakage on unredeemed gift cards over the redemption period. The Company does not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions used to determine the timing of recognition of gift card revenues. As of December 31, 2019 and 2018, the Company had $2,190,000 and $1,096,000, respectively, in accrued deferred revenue related to gift cards in accounts payable and accrued expenses on the accompanying consolidated balance sheets. The Company recognized $3,031,000 and $1,854,000 of deferred gift card revenue during the year ended December 31, 2019 and 2018, respectively.

Variable Consideration

The amount of revenue the Company recognizes is based on the amount of consideration it expects to receive from customers. The amount of consideration is the sales price adjusted for estimates of variable consideration, including sales returns, discounts and allowances as well as sales programs, sales promotions and price concessions that are offered by the Company as described below. These estimates are based on the amounts earned or to be claimed by customers on the related sales, and are therefore recorded as reductions to sales and trade accounts receivable.

The Company’s primary sales program, the “Preferred Retailer Program,” offers potential rebates and discounts for participating retailers in exchange for providing certain benefits to the Company, including the maintenance of agreed upon inventory levels, prime product placement and retailer staff training. Under this program, qualifying retailers can earn either discounts or rebates based upon the amount of product purchased. Discounts are applied and recorded at the time of sale. For rebates, the Company estimates the amount of variable consideration related to the rebate at the time of sale based on the customer’s estimated qualifying current year product purchases. The estimate is based on the historical level of purchases, adjusted for any factors expected to affect the current year purchase levels. The estimated year-end rebate is adjusted quarterly based on actual purchase levels, as necessary. The Preferred Retailer Program is generally short-term in nature and the actual amount of rebate to be paid under this program is known as of the end of the year and paid to customers shortly after year-end. Historically, the Company's actual amount of variable consideration related to its Preferred Retailer Program has not been materially different from its estimates.

The Company also offers short-term sales program incentives, which include sell-through promotions and price concessions or price reductions. Sell-through promotions are generally offered throughout the product's life cycle of approximately two years, and price concessions or price reductions are generally offered at the end of the product's life cycle. The estimated variable consideration related to these programs is based on a rate that includes historical and forecasted data. The Company records a reduction to net sales using this rate at the time of the sale. The Company monitors this rate against actual results and forecasted estimates, and adjusts the rate as deemed necessary in order to reflect the amount of consideration it expects to receive from its customers. There were no material changes to the rate during the twelve months ended December 31, 2019. Historically, the Company's actual amount of variable consideration related to these sales programs has not been materially different from its estimates.

The Company records an estimate for anticipated returns as a reduction of sales and cost of sales, and accounts receivable, in the period that the related sales are recorded. Sales returns are estimated based upon historical returns, current economic trends, changes in customer demands and sell-through of products. The Company also offers certain customers sales programs that allow for specific returns. The Company records a return liability as an offset to accounts receivable for anticipated returns related to these sales programs at the time of the sale based on the terms of the sales program. The cost recovery of inventory associated with this reserve is accounted for in other current assets. Historically, the Company’s actual sales returns have not been materially different from management’s original estimates.

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



	Years Ended December 31,
	2019			2018			2017
	(in thousands)
Beginning balance	$	24,522		$	15,470		$	9,341
Provision for credit losses	95,094			52,088			37,521
Write-off of uncollectible amounts, net of recoveries	(90,573		)	(43,036		)	(31,392		)
Ending balance	$	29,043		$	24,522		$	15,470

Business Combinations (Notes)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Note 5. Business Combinations

In 2017, the Company completed the acquisitions of OGIO and TravisMathew and in 2019, the Company completed the acquisition of Jack Wolfskin. The purchase price of each acquisition was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values as of the date of acquisition in accordance with ASC Topic 820. The excess between the purchase price and the fair value of the net identifiable tangible and intangible assets acquired and liabilities assumed was allocated to goodwill. The Company determined the estimated fair values after review and consideration of relevant information, including discounted cash flows, quoted market prices and estimates made by management.

Valuations of acquired intangible assets and inventory are subject to fair value measurements that were based primarily on significant inputs not observable in the market and thus represent Level 3 measurements (see Note 17).

Acquisition of OGIO International, Inc.

In January 2017, the Company acquired all of the outstanding shares of capital stock of OGIO, a leading manufacturer of high quality bags, accessories and apparel in the golf and lifestyle categories, in a cash transaction pursuant to the terms of a Share Purchase Agreement, by and among the Company, OGIO, and each of the shareholders and option holders of OGIO.

The acquired furniture, fixtures, office equipment, leasehold improvements, computer equipment and warehouse equipment were all valued at their estimated replacement cost, which the Company determined approximated the net book value of the assets on the date of the acquisition. Inventory was valued using the net realizable value approach, which was based on the estimated selling price in the ordinary course of business less reasonable disposal costs and profit on the disposal effort. The customer and distributor relationships were valued under the income approach based on the present value of future earnings. The trade name was valued under the royalty savings income approach method, which is equal to the present value of the after-tax royalty savings attributable to owning the trade name as opposed to paying a third party for its use. For this valuation, the Company used a royalty rate of 7.5%, which is reflective of royalty rates paid in market transactions, and a discount rate of 14.0% on the future cash flows generated by the net after-tax savings. Goodwill arising from the acquisition consists largely of the synergies expected from combining the operations of the Company and OGIO. For segment reporting purposes, goodwill is reported in the Apparel, Gear, and Other operating segment. The OGIO acquisition was treated as an asset purchase for income tax purposes, therefore, the Company expects to deduct all of the intangible assets, including goodwill, from taxable income over time.

The total purchase price was valued at $65,951,000. The Company incurred transaction costs of approximately $3,052,000, of which $1,805,000 was recognized in general and administrative expenses during the year ended December 31, 2017. The remainder was recognized in 2016.

The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date based on the purchase price allocation (in thousands):



	At January 11, 2017
Assets Acquired
Cash		$	8,061
Accounts receivable		7,696
Inventory		7,092
Other current assets		328
Property and equipment		2,369
Intangibles - trade name		49,700
Intangibles - customer & distributor relationships		1,500
Intangibles - non-compete agreements		150
Goodwill		5,885
Total assets acquired		82,781
Liabilities Assumed
Accounts Payable and accrued liabilities		16,830
Net assets acquired		$	65,951

Acquisition of TravisMathew, LLC

In August 2017, the Company acquired TravisMathew, a golf and lifestyle apparel company in an all-cash transaction pursuant to the terms of an Agreement and Plan of Merger, by and among the Company, TravisMathew, OTP LLC, a California limited liability company and wholly-owned subsidiary of the Company (“Merger Sub”), and a representative of the equity holders of TravisMathew. The Company acquired TravisMathew by way of a merger of Merger Sub with and into TravisMathew, with TravisMathew surviving as a wholly-owned subsidiary of the Company. The primary reason for this acquisition was to enhance the Company's presence in golf while also providing a platform for future growth in the lifestyle category.

The acquired furniture, fixtures, office equipment, leasehold improvements, computer equipment and warehouse equipment were all valued at their estimated replacement cost, which the Company determined approximated the net book value of the assets on the date of the acquisition. Inventory was valued using the net realizable value approach, which was based on the estimated selling price in the ordinary course of business less reasonable disposal costs and profit on the disposal effort. The licensing agreement was valued under the income approach based on the projected royalty income from the distributors. The customer and distributor relationships were valued under the income approach based on the present value of future earnings. The trade name was valued under the royalty savings income approach method, which is equal to the present value of the after-tax royalty savings attributable to owning the trade name as opposed to paying a third party for its use. For this valuation, the Company used a royalty rate of 8.0%, which is reflective of royalty rates paid in market transactions, and a discount rate of 11.0% on the future cash flows generated by the net after-tax savings. Goodwill associated with this acquisition is related to the operational synergies the Company expects to realize in future periods. For segment reporting purposes, goodwill is reported in the Apparel, Gear, and Other operating segment. The TravisMathew acquisition was treated as an asset purchase for income tax purposes, therefore, the Company expects to deduct all of the intangible assets, including goodwill, from taxable income over time.

The total purchase price was valued at $124,578,000. In connection with the acquisition, during the year ended December 31, 2017, the Company recognized transaction costs of approximately $2,521,000 in general and administrative expenses.

The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date based on the purchase price allocation (in thousands):



	At August 17, 2017
Assets Acquired
Cash		$	663
Accounts receivable		9,715
Inventory		11,909
Other current assets		549
Property and equipment		4,327
Other assets		117
Intangibles - trade name		78,400
Intangibles - licensing agreement		1,100
Intangibles - customer & distributor relationships		4,450
Intangibles - non-compete agreements		600
Goodwill		23,748
Total assets acquired		135,578
Liabilities Assumed
Accounts Payable and accrued liabilities		11,000
Net assets acquired		$	124,578

Acquisition of JW Stargazer Holding GmbH

In January 2019, the Company completed the acquisition of JW Stargazer Holding GmbH, the owner of the international, premium outdoor apparel, gear and accessories brand, Jack Wolfskin, for €457,394,000 (including cash acquired of €50,984,000) or approximately $521,201,000 (including cash acquired of $58,096,000) (using the exchange rate in effect on the acquisition date), subject to working capital adjustments. The Company financed the acquisition with a Term Loan B facility in the aggregate principal amount of $480,000,000 (see Note 6). Jack Wolfskin designs premium outdoor apparel, gear and accessories targeted at the active outdoor and urban outdoor customer categories. This acquisition further enhanced the Company's lifestyle category and provides a platform for future growth in the active outdoor and urban outdoor categories, which the Company believes are complementary to its portfolio of brands and product capabilities. In addition, the Company anticipates it will realize synergies with respect to supply chain operations as well as warehousing and distribution activities.

The Company allocated the purchase price to the net identifiable tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition. The excess of the purchase price over the estimated fair value of the net assets and liabilities was allocated to goodwill. The Company determined the estimated fair values after review and consideration of relevant information as of the acquisition date, including discounted cash flows, quoted market prices and estimates made by management.

The allocation of the purchase price presented below was based on management's estimate of the fair values of the acquired assets and assumed liabilities using valuation techniques including income, cost and market approaches. These valuation techniques incorporate the use of expected future revenues, cash flows and growth rates as well as estimated discount rates. Current and noncurrent assets and liabilities are valued at historical carrying values, which approximates fair value. Inventory was valued using the net realizable value approach, which was based on the estimated selling price in the ordinary course of business less reasonable disposal costs and a profit on the disposal efforts. The customer and distributor relationships were valued under the income approach based on the present value of future earnings. The Company amortizes the fair value of these relationships over a 10-year period. The trade name was valued under the royalty savings income approach method, which is equal to the present value of the after-tax royalty savings attributable to owning the trade name as opposed to paying a third party for its use. For this valuation the Company used a royalty rate of 5.0%, which is reflective of royalty rates paid in market transactions, and a discount rate of 10.0% on the future cash flows generated by the net after-tax savings. The goodwill of $150,180,000 arising from the acquisition consists largely of the synergies expected from combining the operations of the Company and Jack Wolfskin.

As of December 31, 2019, the Company completed its evaluation of information that existed as of the acquisition date and finalized the purchase price allocation of the underlying acquired assets and liabilities. The resulting adjustments were offset against goodwill. The final assessment included the completion of the market analysis of the operating leases assumed, and the completion of the fair value assessment of the deferred taxes acquired. As a non-taxable stock acquisition, the value attributable to the acquired intangible assets and goodwill are not tax deductible, accordingly, the Company recognized a net deferred tax liability of $77,079,000, including a valuation reserve of $8,281,000 on certain deferred tax assets. In addition, the Company recognized certain adjustments on income taxes receivable and long-term income taxes payable. The Company's final assessment also included adjustments related to certain sales returns reserves and inventory obsolescence reserves, and adjustments to the useful lives of certain property, plant and equipment. All of the goodwill was assigned to the Apparel, Gear and Other operating segment.

In connection with the acquisition, during the year ended December 31, 2019, the Company recognized transaction costs of approximately $9,987,000, of which $6,326,000 was recognized in general and administrative expenses during the twelve months ended December 31, 2019. The remaining $3,661,000 was recognized in general and administrative expenses during 2018. In addition, the Company recorded a loss of $3,215,000 in other income (expense) in the first quarter of 2019 upon the settlement of a foreign currency forward contract to mitigate the risk of foreign currency fluctuations on the purchase price, which was denominated in Euros. In December 2018, the Company recognized an unrealized gain of $4,409,000 in connection with this foreign currency forward contract.

The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date based on the purchase price allocation (in thousands):



	At January 4, 2019
Assets Acquired
Cash		$	58,096
Accounts receivable		26,637
Inventories		94,504
Income tax receivable		6,588
Other current assets		11,483
Property and equipment		20,930
Operating lease right-of-use assets		120,865
Deferred tax assets		2,930
Other assets		23
Intangibles - trade name		239,295
Intangibles - retail partners & distributor relationships		38,743
Goodwill		150,180
Total assets acquired		770,274
Liabilities Assumed
Accounts payable and accrued liabilities		46,124
Income taxes payable, long-term		2,416
Operating lease liabilities		120,524
Deferred tax liabilities		80,009
Net assets acquired		$	521,201

Supplemental Pro-Forma Information (Unaudited)

The following table presents supplemental pro-forma information for the twelve months ended December 31, 2019 and 2018 as if the Jack Wolfskin acquisition had occurred on January 1, 2018. These amounts have been calculated after applying the Company's accounting policies and are based upon currently available information. For this analysis, the Company assumed that costs associated with the acquisition, including the amortization of intangible assets and the step-up of inventory, as well as the tax effect on those costs, were recognized as of January 1, 2018. Pre-acquisition net sales and net income amounts for Jack Wolfskin were derived from the books and records of Jack Wolfskin prepared prior to the acquisition and are presented

for informational purposes only and do not purport to be indicative of the results of future operations or of the results that would have occurred had the acquisition taken place as of the dates noted below.



	December 31, 2019
	2019		2018
	(in thousands)
Net sales	$	1,701,063	$	1,622,053
Net income attributable to Callaway Golf Company	$	96,770	$	63,983

Supplemental Information of Operating Results

For the twelve months ended December 31, 2019, the Company's consolidated results of operations included net sales of $356,195,000 and a net loss of $15,505,000 attributable to Jack Wolfskin. The Jack Wolfskin results of operations include the recognition of $10,928,000 in cost of goods sold in the twelve months ended December 31, 2019 related to the fair value adjustment of the acquired inventory, combined with $4,134,000 recognized in general and administrative expenses related to the amortization of the intangible assets related to distributor relationships and leases. In addition, during the twelve months ended December 31, 2019, the Company recognized transition related costs of $4,728,000, of which $3,832,000 was recognized in general and administrative expense, $776,000 was recognized in cost of goods sold, and $120,000 was recognized in selling expenses.

Financing Arrangements

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Financing Arrangements

Note 6. 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 December 31, 2019, the Company had $144,580,000 outstanding under these facilities, $1,075,000 in outstanding letters of credit, and $106,666,000 in cash and cash equivalents. As of December 31, 2019, the Company's available liquidity, which is comprised of cash on hand and amounts available under both facilities, after letters of credit and outstanding borrowings was $303,300,000 compared to $270,588,000 as of December 31, 2018.

Primary Asset-Based Revolving Credit Facility

In May 2019, the Company amended and restated its primary credit facility (the Fourth Amended and Restated Loan and Security Agreement) with Bank of America N.A. and other lenders (the “ABL Facility”), which provides a senior secured asset-based revolving credit facility of up to $400,000,000, comprised of a $260,000,000 U.S. facility, a $70,000,000 German 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), the Company's intellectual property, certain eligible real estate, inventory and accounts receivable of the Company’s subsidiaries in the United States, Germany, Canada and the United Kingdom. The real estate and intellectual property components of the borrowing base under the ABL Facility are both amortizing. The amount available for the real estate portion is reduced quarterly over a 15-year period, and the amount available for the intellectual property portion is reduced quarterly over a 3-year period.

As of December 31, 2019, the Company had $114,480,000 in borrowings outstanding under the ABL Facility and $1,075,000 in outstanding letters of credit. Amounts available under the ABL Facility fluctuate with the general seasonality of the business and increase and decrease with changes in the Company’s inventory and accounts receivable balances. With respect to the Company's Golf Equipment business, inventory balances are generally higher in the fourth and first quarters, primarily to meet demand during the height of the golf season, and accounts receivable are generally higher during the first half of the year when sales are higher. Average outstanding borrowings during the year ended December 31, 2019 were $134,842,000, and average amounts available under the ABL Facility during the year ended December 31, 2019, after outstanding borrowings and letters of credit, was approximately $170,217,000. Amounts borrowed under the ABL Facility may be repaid and borrowed as needed. The entire outstanding principal amount (if any) is due and payable in May 2024.

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 certain restrictions on the amount of additional indebtedness and requirements to maintain a certain fixed charge coverage ratio under certain circumstance. These restrictions do not materially limit the Company's ability to pay future dividends at the current dividend rate. As of December 31, 2019, 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 10% of the maximum facility amount or $40,000,000. The Company’s borrowing base availability was above $40,000,000 during the year ended December 31, 2019, and the Company was in compliance with the fixed charge coverage ratio as of December 31, 2019. Had the Company not been in compliance with the fixed charge coverage ratio as of December 31, 2019, the maximum amount of additional indebtedness that could have been outstanding on December 31, 2019 would have been reduced by $40,000,000.

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 German, the U.K. and the U.S. borrowing bases, as adjusted. At December 31, 2019, the Company’s trailing 12-month average interest rate applicable to its outstanding loans under the ABL Facility was 4.60%. Additionally, the ABL Facility provides for monthly fees of 0.25% of the unused portion of the ABL Facility.

The fees incurred in connection with the origination and amendment of the ABL Facility totaled $3,299,000, which are amortized on a straight-line basis into interest expense over the term of the ABL Facility agreement. Unamortized origination fees as of December 31, 2019 and 2018 were $2,115,000 and $1,825,000, respectively, of which $746,000 and $476,000, respectively, were included in other current assets and $1,369,000 and $1,349,000, respectively, were included in other long-term assets in the accompanying consolidated balance sheets.

Japan ABL Facilities

In January 2018, the Company refinanced the asset-based loan agreement between its subsidiary in Japan and The Bank of Tokyo-Mitsubishi UFJ, Ltd (the "2018 Japan ABL Facility"), which provides a credit facility of up to 4,000,000,000 Yen (or U.S. $36,820,000, using the exchange rate in effect as of December 31, 2019) over a three-year term, subject to borrowing base availability under the 2018 Japan ABL Facility. The amounts outstanding are secured by certain assets, including eligible inventory and eligible accounts receivable. The Company had 3,270,000,000 Yen (or U.S. $30,100,000, using the exchange rate in effect as of December 31, 2019) in borrowings outstanding under the 2018 Japan ABL Facility as of December 31, 2019. The 2018 Japan ABL Facility also includes certain restrictions including covenants related to certain pledged assets and financial performance metrics. As of December 31, 2019, the Company was in compliance with these covenants. The 2018 Japan ABL Facility is subject to an effective interest rate equal to the Tokyo Interbank Offered Rate (TIBOR) plus 0.80%. The average interest rate under the 2018 Japan ABL Facility during 2019 was 0.87%. The 2018 Japan ABL Facility expires in January 2021.

On July 31, 2019, the Company entered into a new one-year asset-based loan facility ("2019 Japan ABL Facility" and collectively with the 2018 Japan ABL Facility, the "Japan ABL Facility") between its subsidiary in Japan and MUFG Bank, Ltd. for 2,000,000,000 Yen, (or approximately U.S. $18,410,000 using the exchange rate in effect as of December 31, 2019), and had no borrowings outstanding under the 2019 Japan ABL Facility as of December 31, 2019. The amounts outstanding are secured by certain assets, including eligible inventory and eligible accounts receivable. The 2019 Japan ABL Facility is subject to an effective interest rate equal to the TIBOR plus 1.0%, and is subject to certain restrictions including covenants related to certain pledged assets and financial performance metrics. The average interest rate under the 2019 Japan ABL Facility during 2019 was1.07%.

Long-Term Debt

Equipment Notes

In December 2017, the Company entered into a long-term financing agreement (the "2017 Equipment Note") secured by certain equipment at the Company's golf ball manufacturing facility. As of December 31, 2019 and 2018, the Company had $7,357,000 and $9,628,000 outstanding under the 2017 Equipment Note, respectively, of which $2,455,000 and $2,411,000 were reported in current liabilities, and $4,902,000 and $7,218,000 were reported in long-term liabilities in the accompanying balance sheets, respectively. The Company's interest rate applicable to outstanding borrowings was 3.79%. Total interest expense related to the 2017 Equipment Note recognized during the year ended December 31, 2019 was $325,000. The 2017 Equipment Note amortizes over a 5-year term.

In August 2019, the Company entered into a second long-term financing agreement (the "2019 Equipment Note") secured by certain equipment at the Company's golf ball manufacturing facility. As of December 31, 2019 the Company had $12,358,000 outstanding under the 2019 Equipment Note, of which $2,652,000 was reported in current liabilities and $9,706,000 was reported in long-term liabilities in the accompanying consolidated balance sheets. The Company's interest rate applicable to outstanding borrowings was 3.21%. Total interest expense related to the 2019 Equipment Note recognized during the year ended December 31, 2019 was $138,000. The 2019 Equipment Note amortizes over a 5-year term.

The 2017 Equipment Note and 2019 Equipment Note are subject to compliance with the financial covenants in the Company's ABL Facility. As of December 31, 2019, the Company was in compliance with these covenants.

Term Loan B Facility

In January 2019, to fund the purchase price of the Jack Wolfskin acquisition, the Company entered into a Credit Agreement (the “Credit Agreement”) with Bank of America, N.A and other lenders party to the Credit Agreement (the "Term Lenders"). The Credit Agreement provides for a Term Loan B facility (the “Term Loan Facility”) in an aggregate principal of $480,000,000, which was issued less $9,600,000 in original issue discount and other transaction fees. Such principal amount may be increased pursuant to incremental facilities in the form of additional tranches of term loans or new commitments, up to a maximum incremental amount of $225,000,000, or an unlimited amount subject to compliance with a first lien net leverage ratio of 2.25 to 1.00. The Term Loan Facility is due in January 2026.

As of December 31, 2019, the Company had $446,400,000 outstanding under the Term Loan Facility of which $4,800,000 is reflected in current liabilities and $441,600,000 was reflected in long term liabilities. The amount outstanding as of December 31, 2019 was offset by unamortized debt issuance costs of $15,539,000, of which $2,590,000 was reflected in the short-term portion of the facility, and $12,949,000 was reflected in the long-term portion of the facility in the accompanying consolidated balance sheet. Total interest and amortization expense related to the Term Loan Facility recognized during the year ended December 31, 2019 was $31,707,000.

Loans under the Term Loan Facility are subject to interest at a rate per annum equal to either, at the Company's option, the LIBOR rate or the base rate plus 4.50%. Principal payments of $1,200,000 are due quarterly, however the Company has the option to prepay any outstanding loan balance in whole or in part without premium or penalty. In addition, the Term Loan Facility requires excess cash flow payments beginning after December 31, 2019.

In order to mitigate the risk of interest rate fluctuations under the Term Loan Facility, the Company entered into agreements with the lenders party to the Credit Agreement to swap the floating rate of LIBOR plus 4.5% to a fixed rate of 4.6% on $200,357,000 of the total principal outstanding under the Term Loan Facility. This was achieved by entering into an interest rate hedge contract and a cross-currency debt swap contract, converting the $200,357,000 principal into €176,200,000, both of which mature in January 2025. During the year ended December 31, 2019, the Company recognized interest income of $5,027,000, under the cross-currency swap to offset the interest expense recognized under the Term Loan Facility.

Loans outstanding under this facility are guaranteed by the Company's domestic subsidiaries. The loans and guaranties are secured by substantially all the assets of the Company and guarantors.

The Credit Agreement contains a cross-default provision with respect to any indebtedness of the Company as defined in the Credit Agreement, as well as customary representations and warranties and customary affirmative and negative covenants, including, among other things, restrictions on incurrence of additional debt, liens, dividends and other restricted payments, asset sales, investments, mergers, acquisitions and affiliate transactions. Events of default permitting acceleration under the Credit Agreement include, among others, nonpayment of principal or interest, covenant defaults, material breaches of representations and warranties, bankruptcy and insolvency events, certain cross defaults or a change of control.

The following table presents the Company's combined aggregate amount of maturities for its 2017 Equipment Note, 2019 Equipment Note and Term Loan Facility over the next five years and thereafter as of December 31, 2019. Amounts payable under the Term Loan Facility included below represent the minimum principal repayment obligations. As of December 31, 2019, the Company does not anticipate excess cash flow repayments as defined by the Term Loan Facility.



	(in thousands)
2020	$	9,653
2021	9,825
2022	10,003
2023	7,545
2024	6,680
2025	422,400
	$	466,106

Earnings per Common Share

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Earnings per Common Share

Note 7. 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 takes into account the potential dilution that could occur if outstanding securities were exercised. Dilutive securities are included in the calculation of diluted earnings per common share using the treasury stock method in accordance with ASC Topic 260, “Earnings per Share.” Dilutive securities include outstanding stock options, restricted stock units and performance share units granted to employees and non-employee directors (see Note 15).

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 anti-dilution occurs.

The following table summarizes the computation of basic and diluted earnings per share:



	Years Ended December 31,
	2019		2018		2017
	(In thousands, except per share data)
Earnings per common share—basic
Net income attributable to Callaway Golf Company	$	79,408	$	104,740	$	40,806
Weighted-average common shares outstanding—basic	94,251		94,579		94,329
Basic earnings per common share	$	0.84	$	1.11	$	0.43

Earnings per common share—diluted
Net income attributable to Callaway Golf Company	$	79,408	$	104,740	$	40,806
Weighted-average common shares outstanding—basic	94,251		94,579		94,329
Options and restricted stock	2,036		2,574		2,248
Weighted-average common shares outstanding—diluted	96,287		97,153		96,577
Diluted earnings per common share	$	0.82	$	1.08	$	0.42

Antidilutive securities excluded from the earnings per share computation are summarized as follows:


•	For the years ended December 31, 2019 and 2018, there were no securities excluded from the calculation of earnings per common share—diluted.

•

For the year ended December 31, 2017, securities outstanding totaling approximately 129,000, compromised of anti-dilutive options were excluded from the calculation of earnings per common share—diluted.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 8. Goodwill and Intangible Assets

Goodwill at December 31, 2019 increased to $203,743,000 from $55,816,000 at December 31, 2018. This $147,927,000 increase was primarily due to the Jack Wolfskin acquisition in January 2019 (see Note 5), which increased goodwill by $147,781,000. The additional increase of $146,000 was related to changes in foreign currency rates period over period. The Company's goodwill is reported in both the Golf Equipment and Apparel, Gear and Other operating segments (see Note 19).

In accordance with ASC Topic 350, “Intangibles—Goodwill and Other,” the Company’s goodwill and non-amortizing intangible assets are subject to an annual impairment test or more frequently when impairment indicators are present. There were no impairment charges recognized during the years ended December 31, 2019 and 2018. The following sets forth the intangible assets by major asset class:



	Useful Life (Years)	December 31, 2019							December 31, 2018
	Useful Life (Years)	Gross		Accumulated Amortization			Net Book Value		Gross		Accumulated Amortization			Net Book Value
				(In thousands)							(In thousands)
Indefinite-lived:
Trade name, trademark and trade dress and other	NA	$	453,837		$	—	$	453,837	$	218,364		$	—	$	218,364
Amortizing:
Patents	2-16	31,581			31,581		—		31,581			31,543		38
Customer and distributor relationships, and other	1-9	53,904			14,318		39,586		15,780			9,490		6,290
Total intangible assets		$	539,322		$	45,899	$	493,423	$	265,725		$	41,033	$	224,692

Aggregate amortization expense on intangible assets was approximately $4,866,000, $1,066,000 and $546,000 for the years ended December 31, 2019, 2018 and 2017, respectively. Amortization expense related to intangible assets at December 31, 2019 in each of the next five fiscal years and beyond is expected to be incurred as follows (in thousands):



2020	$	4,780
2021	4,724
2022	4,548
2023	4,409
2024	4,409
Thereafter	16,716
	$	39,586

Investments	12 Months Ended
Investments	Dec. 31, 2019
Investments, All Other Investments [Abstract]
Investments	Note 9. Investments Investment in Topgolf International, Inc. The Company owns a minority interest of approximately 14.0% 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 Topgolf retail stores, and other rights incidental to those listed above. Topgolf is a privately held company, and as such, the common and preferred shares comprising the Company’s investment are illiquid and their fair value is not readily determinable. The Company accounts for changes in fair value in accordance with ASU No. 2016-01, which requires equity securities without a readily determinable fair value to be measured at cost, less impairments if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. As of December 31, 2019 and 2018, the Company's total investment in Topgolf was $90,134,000 and $72,238,000, respectively. During the years ended December 31, 2019, 2018 and 2017, the Company invested $17,897,000, $1,743,000 and $21,499,000, respectively, in shares of Topgolf. In November 2019, the Company invested $17,897,000 in series G preferred shares of Topgolf as part of a new financing round. The series G preferred shares have conversion, redemption, liquidation and other rights which differ from the other series of Topgolf preferred and common shares. As a result, the Company was not able to estimate the fair value of its total holdings in Topgolf as of December 31, 2019, and continued to account for its investment at cost less impairments in accordance with ASU No. 2016-01. As of December 31, 2019, the Company has not recorded any impairments with respect to this investment. If in the future there is an observable price change as a result of an orderly transaction for the identical or similar investment in Topgolf, the Company would be required to assess the fair value impact, if any, on each identified or similar class of Topgolf stock held by the Company, and write such stock up or down to its estimated fair value, which could have a material effect on the Company's financial position and results of operations.

Joint Venture	12 Months Ended
Joint Venture	Dec. 31, 2019
Noncontrolling Interest [Abstract]
Joint Venture	Note 10. Joint Venture The Company had a joint venture in Japan, Callaway Apparel K.K., with its long-time apparel licensee, TSI Groove & Sports Co, Ltd., ("TSI") for the design, manufacture and distribution of Callaway-branded apparel, footwear and headwear in Japan. In July 2016, the Company contributed $10,556,000, primarily in cash, for a 52% ownership of the joint venture, and TSI contributed $9,744,000, primarily in inventory, for the remaining 48%. In May 2019, the Company entered into a stock purchase agreement with TSI to acquire the remaining shares comprising the 48% ownership in Callaway Apparel K.K. for 2 billion Yen, or approximately $18,538,000 (using the exchange rate in effect on the acquisition date). The purchase was completed as of May 31, 2019 and, pursuant to the stock purchase agreement, the purchase price was paid in August 2019. As of December 31, 2019, the Company owned 100% of this entity and controlled all matters pertaining to its business operations and significant management decisions. Callaway Apparel K.K. is consolidated one month in arrears. As a result of the consolidation, during the year ended December 31, 2019, the Company recorded a net loss attributable to the non-controlling interest of $179,000 and net income of $514,000 and $861,000 during the years ended December 31, 2018, and 2017, respectively. During the year ended December 31, 2018, the joint venture paid dividends to TSI of $821,000, which were recorded as a reduction in non-controlling interests in the consolidated financial statements. The total non-controlling interest on the Company's consolidated balance sheet at December 31, 2018 was $9,734,000.

Selected Financial Statement Information

12 Months Ended

Dec. 31, 2019

Disclosure Selected Financial Statement Information [Abstract]

Selected Financial Statement Information

Note 11. Selected Financial Statement Information



	December 31,
	2019			2018
	(In thousands)
Accounts receivable, net:
Trade accounts receivable	$	203,078		$	108,547
Liability for sales returns	(29,043		)	(24,522		)
Accrued variable consideration for sales program incentives	(20,336		)	(7,041		)
Allowance for doubtful accounts	(13,244		)	(5,610		)
	$	140,455		$	71,374
Inventories:
Raw materials	$	76,140		$	80,474
Work-in-process	860			815
Finished goods	379,639			256,768
	$	456,639		$	338,057
Property, plant and equipment, net:
Land	$	7,229		$	7,232
Buildings and improvements	80,856			75,070
Machinery and equipment	129,680			111,055
Furniture, computers and equipment	134,719			111,793
Production molds	5,820			4,804
Construction-in-process	37,244			17,026
	395,548			326,980
Accumulated depreciation	(262,788		)	(238,508		)
	$	132,760		$	88,472
Accounts payable and accrued expenses:
Accounts payable	$	67,843		$	42,468
Accrued expenses	196,308			127,135
Accrued goods in-transit	12,149			39,050
	$	276,300		$	208,653
Accrued employee compensation and benefits:
Accrued payroll and taxes	$	34,303		$	31,559
Accrued vacation and sick pay	11,574			10,606
Accrued commissions	1,014			1,007
	$	46,891		$	43,172

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 12. Income Taxes

The Company’s income before income tax provision was subject to taxes in the following jurisdictions for the following periods (in thousands):



	Years Ended December 31,
	2019		2018		2017
United States	$	55,352	$	100,031	$	50,706
Foreign	40,417		31,241		17,349
	$	95,769	$	131,272	$	68,055

The expense (benefit) for income taxes is comprised of (in thousands):



	Years Ended December 31,
	2019			2018		2017
Current tax provision:
Federal	$	1,022		$	736	$	610
State	1,403			1,880		1,259
Foreign	9,933			6,577		6,135
	12,358			9,193		8,004
Deferred tax expense (benefit):
Federal	10,185			14,844		20,746
State	335			1,086		(1,127		)
Foreign	(6,338		)	895		(1,235		)
	4,182			16,825		18,384
Income tax provision	$	16,540		$	26,018	$	26,388

In December 2017, the Tax Act was enacted into legislation, which includes a broad range of provisions affecting businesses. The Tax Act significantly revises how companies compute their U.S corporate tax liability by, among other provisions, reducing the corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017, implementing a territorial tax system, and requiring a mandatory one-time tax on U.S. owned undistributed foreign earnings and profits known as the toll charge or transition tax. Additionally, the Tax Act implemented a tax on foreign earnings called Global Intangible Low-Taxed Income (“GILTI”). The Company has elected to treat GILTI as a period cost and will expense GILTI in the period it is incurred.

On January 4, 2019, the Company acquired Jack Wolfskin for approximately $521,201,000 (including cash acquired of $58,096,000) in a taxable stock acquisition. The Company recorded a deferred tax liability of $88,462,000 related to the intangibles upon acquisition in addition to $11,384,000 deferred tax assets acquired (see Note 5).

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows (in thousands):



	December 31,
	2019			2018
Deferred tax assets:
Reserves and allowances not currently deductible for tax purposes	$	22,926		$	13,495
Basis difference related to fixed assets	8,381			5,342
Compensation and benefits	7,580			8,416
Basis difference for inventory valuation	849			1,784
Compensatory stock options and rights	3,404			3,988
Operating loss carryforwards	9,080			7,191
Tax credit carryforwards	55,001			54,219
ASC 842 lease liability	44,768			—
Interest expense carryforward	5,057			—
Basis difference related to intangible assets with a definite life	354			12,767
Other	2,790			5,798
Total deferred tax assets	160,190			113,000
Valuation allowance for deferred tax assets	(14,469		)	(13,408		)
Deferred tax assets, net of valuation allowance	$	145,721		$	99,592
Deferred tax liabilities:
Prepaid expenses	(1,685		)	(1,181		)
Basis difference related to intangible assets with an indefinite life	(99,712		)	(25,128		)
ASC 842 right-of-use assets	(43,859		)	—
Total deferred tax liabilities	(145,256		)	(26,309		)
Net deferred tax assets	$	465		$	73,283
Net deferred tax assets (liabilities) are shown on the accompanying consolidated balance sheets as follows:
Non-current deferred tax assets	$	73,948		$	75,079
Non-current deferred tax liabilities	(73,483		)	(1,796		)
Net deferred tax assets	$	465		$	73,283

The net change in net deferred taxes in 2019 of $72,818,000 is primarily comprised of the acquired net deferred tax liabilities as a result of the Jack Wolfskin acquisition combined with the utilization of net operating losses and tax credits through profitable operations.

Deferred tax assets and liabilities result from temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are anticipated to be in effect at the time the differences are expected to reverse. The realization of the deferred tax assets, including loss and credit carry forwards, is subject to the Company generating sufficient taxable income during the periods in which the temporary differences become realizable. In accordance with the applicable accounting rules, the Company maintains a valuation allowance for a deferred tax asset when it is deemed to be more likely than not that some or all of the deferred tax assets will not be realized. In evaluating whether a valuation allowance is required under such rules, the Company considers all available positive and negative evidence, including prior operating results, the nature and reason for any losses, its forecast of future taxable income, and the dates on which any deferred tax assets are expected to expire. These assumptions require a significant amount of judgment, including estimates of future taxable income. These estimates are based on the Company’s best judgment at the time made based on current and projected circumstances and conditions.

The Company has evaluated all available positive and negative evidence and determined that the majority of its U.S. deferred tax assets were more likely than not to be realized. The valuation allowance on the Company's U.S. deferred tax assets as of December 31, 2019 and 2018 relate primarily to state net operating loss carryforwards and credits the Company estimates it may not be able to utilize in future periods. With respect to non-U.S. entities, there continues to be sufficient positive evidence to conclude that realization of its deferred tax assets is more likely than not under applicable accounting

rules, and no significant allowances have been established. With respect to the Jack Wolfskin acquisition, no significant valuation allowances were acquired at acquisition or established during 2019.

At December 31, 2019, the Company had federal and state income tax credit carryforwards of $47,378,000 and $20,088,000, respectively, which will expire if unused at various dates beginning on December 31, 2020. Such credit carryforwards expire as follows (in thousands):



U.S. foreign tax credit	$	28,599	2020 - 2029
U.S. research tax credit	$	18,758	2031 - 2039
U.S. business tax credits	$	21	2031 - 2039
State investment tax credits	$	1,148	Do not expire
State research tax credits	$	18,940	Do not expire

The Company has recorded a deferred tax asset reflecting the benefit of operating loss carryforwards. The net operating losses expire as follows (in thousands):



U.S. loss carryforwards	$	—	N/A
State loss carryforwards	$	101,205	2025 - 2036

The Company’s ability to utilize the losses and credits to offset future taxable income may be deferred or limited significantly if the Company were to experience an “ownership change” as defined in section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). In general, an ownership change will occur if there is a cumulative change in ownership of the Company’s stock by “5-percent shareholders” (as defined in the Code) that exceeds 50 percentage points over a rolling three-year period. The Company determined that no ownership change has occurred for purposes of Section 382 for the period ended December 31, 2019.

A reconciliation of the effective tax rate on income or loss and the statutory tax rate is as follows:



	Years Ended December 31,
	2019		2018		2017
Statutory U.S. tax rate	21.0	%	21.0	%	35.0	%
State income taxes, net of U.S. tax benefit	1.6	%	1.8	%	1.8	%
Foreign income taxed at other than U.S. statutory rate	(5.0	)%	1.1	%	(0.6	)%
Federal tax credits	(3.5	)%	(4.4	)%	(2.7	)%
Other non-deductible expenses	1.2	%	0.7	%	1.1	%
Non-deductible compensation	1.5	%	0.8	%	0.7	%
Stock option compensation excess tax benefits	(1.5	)%	(1.0	)%	(2.0	)%
Intra-entity asset transfers	—	%	0.8	%	(6.3	)%
U.S. foreign tax inclusions	0.1	%	1.1	%	1.6	%
Foreign derived intangible income deduction	(3.2	)%	(2.7	)%	—	%
Impact of uncertain tax positions	3.7	%	0.8	%	1.8	%
Enactment of the Tax Cuts and Jobs Act	—	%	0.3	%	11.1	%
Change in deferred tax valuation allowance	0.2	%	—	%	(2.0	)%
Other	1.2	%	(0.5	)%	(0.7	)%
Effective tax rate	17.3	%	19.8	%	38.8	%

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	2019			2018			2017
Balance at January 1	$	11,832		$	9,300		$	8,256
Additions based on tax positions related to the current year	3,224			1,354			1,061
Additions for tax positions of prior years	593			1,624			233
Reductions for tax positions of prior years	(174		)	(148		)	(192		)
Settlement of tax audits	(7		)	—			(33		)
Current year acquisitions	11,006			—			—
Reductions due to lapsed statute of limitations	(481		)	(298		)	(25		)
Balance at December 31	$	25,993		$	11,832		$	9,300

As of December 31, 2019, the gross liability for income taxes associated with uncertain tax benefits was $25,993,000. This liability could be reduced by $1,339,000 of offsetting tax benefits associated with the correlative effects of potential transfer pricing adjustments, which was recorded as a long-term income tax receivable, as well as $13,795,000 of deferred taxes. The net amount of $10,859,000, if recognized, would affect the Company’s financial statements and favorably affect the Company’s effective income tax rate.

The Company does not expect changes to the unrecognized tax benefits in the next 12 months to have a material impact on its results of operations or its financial position.

The Company recognizes interest and/or penalties related to income tax matters in income tax expense. The Company recognized a tax expense of approximately $9,000, $42,000, and $301,000 for the years ended December 31, 2019, 2018, and 2017, respectively. As of December 31, 2019 and 2018, the gross amount of accrued interest and penalties included in income taxes payable in the accompanying consolidated balance sheets was $1,669,000 and $1,660,000, respectively.

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



Major Tax Jurisdiction	Years No Longer Subject to Audit
U.S. federal	2010 and prior
California (U.S.)	2008 and prior
Germany	2013 and prior
Japan	2012 and prior
South Korea	2013 and prior
United Kingdom	2015 and prior

As of December 31, 2019, the Company had $167,933,000 of undistributed foreign earnings and profits. Pursuant to the Tax Act, the Company’s undistributed foreign earnings and profits were deemed repatriated as of December 31, 2017 and subsequent foreign profits are not expected to be subject to U.S. income tax upon repatriation. The Company has not provided deferred tax liabilities for foreign withholding taxes and certain state income taxes on the undistributed earnings and profits from certain non-U.S. subsidiaries that will be permanently reinvested outside the United States, and expects the net impact of any future repatriations of permanently invested earnings on the Company’s overall tax liability to be insignificant. For jurisdictions in which the Company is not permanently reinvested, the Company has estimated and accrued approximately $1,400,000 for the net impact on the Company’s overall tax liability.

Commitments & Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments & Contingencies

Note 13. 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 on 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. In addition, the Company cannot assure that it will be able to successfully defend itself in those matters, or that any amounts accrued are sufficient. The Company does not believe that the matters currently pending against the Company will have a material adverse effect on the Company's consolidated business, financial condition, cash flows, or results of operations on an annual basis.

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, as well as endorsement agreements with professional athletes and other endorsers, employment and consulting agreements, and intellectual property licensing agreements pursuant to which the Company is required to pay royalty fees. It is not possible to determine the amounts the Company will ultimately be required to pay under these agreements as they are subject to many variables including performance-based bonuses, severance arrangements, the Company’s sales levels, and reductions in payment obligations if designated minimum performance criteria are not achieved. The amounts listed approximate minimum purchase obligations, base compensation, and guaranteed minimum royalty payments the Company is obligated to pay under these agreements. The actual amounts paid under some of these agreements may be higher or lower than the amounts included. In the aggregate, the actual amount paid under these obligations is likely to be higher than the amounts listed as a result of the variable nature of these obligations. 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 as of December 31, 2019 under these agreements is $72,906,000 over the next five years as follows (in thousands):



2020	$	39,492
2021	18,668
2022	11,415
2023	3,331
2024	—
	$	72,906

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 $1,075,000 as of December 31, 2019.

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 consolidated financial statements. The fair value of indemnities, commitments and guarantees that the Company issued during and as of December 31, 2019 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 salary continuation, upon the termination of employment following a change in control.

Capital Stock	12 Months Ended
Capital Stock	Dec. 31, 2019
Equity [Abstract]
Capital Stock	Note 14. Capital Stock Common Stock and Preferred Stock As of December 31, 2019, the Company has an authorized capital of 243,000,000 shares, $0.01 par value, of which 240,000,000 shares are designated common stock, and 3,000,000 shares are designated preferred stock. Of the preferred stock, 240,000 shares are designated Series A Junior Participating Preferred Stock and the remaining shares of preferred stock are undesignated as to series, rights, preferences, privileges or restrictions. The holders of common stock are entitled to one vote for each share of common stock on all matters submitted to a vote of the Company’s shareholders. Although to date no shares of Series A Junior Participating preferred stock have been issued, if such shares were issued, each share of Series A Junior Participating Preferred Stock would entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the shareholders of the Company. The holders of Series A Junior Participating Preferred Stock and the holders of common stock shall generally vote together as one class on all matters submitted to a vote of the Company’s shareholders. Shareholders entitled to vote for the election of directors are entitled to vote cumulatively for one or more nominees. Treasury Stock and Stock Repurchases In May 2018, the Company's Board of Directors authorized a $50,000,000 share repurchase program (the "2018 Repurchase Program") under which the Company was authorized to repurchase shares of its common stock in the open market or in private transactions, subject to the Company’s assessment of market conditions and buying opportunities. Through July 2019, the Company repurchased a total of $27,394,000 of its common stock under this program. In the third quarter of 2019, the 2018 Repurchase Program was canceled by the Board of Directors and replaced by a newly authorized $100,000,000 share repurchase program (the "2019 Repurchase Program"), under which the Company is authorized to repurchase shares of its common stock in the open market or in private transactions, subject to the Company's assessment of market conditions and buying opportunities. Repurchases under both the 2018 Repurchase Program and 2019 Repurchase Program are made consistent with the terms of the Company's ABL Facility and long-term debt, which limits the amount of stock that can be repurchased. The 2019 Repurchase Program will remain in effect until completed or until terminated by the Board of Directors. During 2019, the Company repurchased approximately 1,690,000 shares of its common stock under the 2018 and 2019 repurchase programs at an average cost per share of $16.62, for a total cost of $28,073,000. Included in these amounts are $8,049,000 of shares the Company withheld to satisfy the Company's tax withholding obligations in connection with the vesting and settlement of employee restricted stock unit awards and performance share units. The Company’s repurchases of shares of common stock are recorded at cost and result in a reduction of shareholders’ equity. As of December 31, 2019, the total amount remaining under the repurchase authorization was $99,322,000.

Share-Based Employee Compensation

12 Months Ended

Dec. 31, 2019

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

Share-Based Employee Compensation

Note 15. Share-Based Employee Compensation

The Company accounts for its share-based compensation arrangements in accordance with ASC Topic 718, which requires the measurement and recognition of compensation expense for all share-based payment awards to employees and directors based on estimated fair values, and ASU No. 2014-12 for stock awards that are subject to performance measures. ASC Topic 718 further requires a reduction in share-based compensation expense by an estimated forfeiture rate. The forfeiture rate used by the Company is based on historical forfeiture trends. If actual forfeiture rates are not consistent with the Company’s estimates, the Company may be required to increase or decrease compensation expenses in future periods.

Stock Plans

As of December 31, 2019, 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").

The 2004 Incentive Plan permits the granting of stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance share units and other equity-based awards to the Company’s officers, employees, consultants and certain other non-employees who provide services to the Company. All grants under the 2004 Incentive Plan are discretionary, although no participant may receive awards in any one year in excess of 2,000,000 shares. The maximum number of shares issuable over the term of the 2004 Incentive Plan is 33,000,000.

The 2013 Directors Plan permits the granting of stock options, restricted stock awards and restricted stock units to eligible directors serving on the Company's Board of Directors. The Directors may receive a one-time grant upon their initial appointment to the Board and thereafter an annual grant upon being re-elected at each annual meeting of shareholders, not to exceed 50,000 shares within any calendar year. The maximum number of shares issuable over the term of the 2013 Directors Plan is 1,000,000.

The following table presents shares authorized, available for future grant and outstanding under each of the Company’s plans as of December 31, 2019:



	Authorized	Available	Outstanding⁽¹⁾
	(In thousands)
2004 Incentive Plan	33,000	9,003	2,671
2013 Directors Plan	1,000	640	56
Total	34,000	9,643	2,727


(1)	Includes 4,000 shares of accrued incremental dividend equivalent rights on outstanding shares underlying restricted stock units granted under the 2004 Incentive Plan and 2013 Directors Plan.

Stock Options

All stock option grants made under the 2004 Incentive Plan are made at exercise prices no less than the Company’s closing stock price on the date of grant. Outstanding stock options generally vest over a three-year period from the grant date and generally expire up to 10 years after the grant date. The Company recorded $14,000 and $34,000 of compensation expense relating to outstanding stock options for the years ended December 31, 2018 and 2017, respectively. All outstanding stock options were fully vested as of December 31, 2018, therefore, the Company did not record compensation expense related to stock options in 2019.

The Company recorded compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model. The model uses various assumptions, including a risk-free interest rate, the expected term of the options, the expected stock price volatility, and the expected dividend yield. Compensation expense for employee stock options was recognized over the vesting term and was reduced by an estimate for forfeitures, which was based on the Company’s historical forfeitures of unvested options and awards. The Company did not grant stock options during the years ended December 31, 2019, 2018 and 2017. The weighted average estimated forfeiture rate that was used in both years ended December 31, 2018 and 2017 was 1.7%.

The following table summarizes the Company’s stock option activities for the year ended December 31, 2019 (in thousands, except price per share and contractual term):



Options	Number of Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2019	691		$	6.54
Granted	—		$	—
Exercised	(56	)	$	6.60
Forfeited	—		$	—
Expired	—		$	—
Outstanding at December 31, 2019	635		$	6.53	3.07	$	9,313
Vested and expected to vest in the future at December 31, 2019	635		$	6.53	3.07	$	9,313
Exercisable at December 31, 2019	635		$	6.53	3.07	$	9,313

At December 31, 2019, there was no unrecognized compensation expense related to options granted to employees under the Company’s share-based payment plans.

The total intrinsic value for options exercised during the years ended December 31, 2019, 2018 and 2017 was $792,000, $2,621,000 and $3,546,000, respectively. Cash received from the exercise of stock options for the years ended December 31, 2019, 2018 and 2017 was $368,000, $1,636,000 and $5,362,000, respectively.

Restricted Stock Units

Restricted stock units awarded under the 2004 Incentive Plan and the 2013 Directors Plan are recorded at the Company’s closing stock price on the date of grant. Restricted stock units generally vest over a one- to five-year period. During the years ended December 31, 2019, 2018 and 2017, the weighted average grant-date fair value of restricted stock units granted was $15.63, $15.30 and $9.36, respectively. The Company recorded $6,098,000, $5,949,000 and $5,537,000 of compensation expense related to restricted stock units in 2019, 2018 and 2017, respectively.

The table below is a roll-forward of the activity for restricted stock units during the 12 months ended December 31, 2019 (in thousands, except fair value amounts):



Restricted Stock Units	Units		Weighted- Average Grant-Date Fair Value
Nonvested at January 1, 2019	1,239		$	12.16
Granted	479		15.63
Vested	(543	)	11.53
Forfeited	(139	)	12.56
Nonvested at December 31, 2019⁽¹⁾	1,036		$	14.04


(1)	Excludes 4,000 shares of accrued incremental dividend equivalent rights on outstanding shares underlying restricted stock units granted under the 2004 Incentive Plan and 2013 Directors Plan.

At December 31, 2019, there was $9,674,000 of total unrecognized compensation expense related to nonvested restricted stock units granted to employees under the Company’s share-based payment plans. That cost is expected to be recognized over a weighted-average period of 1.8 years.

Performance Based Awards

Performance based awards 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 five-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 0% to 200% of the participant's target award. The Company

grants two types of performance based awards: performance share units and awards subject to total shareholder return metrics under the 2004 Incentive Plan.

The Company granted 226,000, 307,000 and 462,000 performance share units during the years ended December 31, 2019, 2018 and 2017, respectively, at a weighted average grant-date fair value of $15.17, $14.80 and $10.68 per share, respectively. The awards granted during 2019 and 2018 are subject to a three- to five-year performance period provided that (i) if certain first year performance goals are achieved, the participant could earn up to 50% of the three-year target award shares, subject to continued service through the vesting date, and (ii) if certain cumulative first- and second-year performance goals are achieved, the participant could earn up to an aggregate of 80% of the three-year target award shares (which includes any shares earned during the first year), subject to continued service through the vesting date. Based on the Company’s performance, participants earned a minimum of 50% of the target award shares granted in 2018, and 80% of the target award shares granted in 2017, in each case subject to continued service through the vesting date.

During year ended December 31, 2019, the Company granted 149,000 shares underlying performance share units subject to total shareholder return requirements at a weighted average grant-date fair value of $16.96 per share. There were no performance share units with total shareholder return requirements granted in 2018 that were subject to total shareholder return requirements.

During the years ended December 31, 2019, 2018 and 2017, the Company recognized total compensation expense, net of estimated forfeitures, of $6,796,000, $7,567,000 and $7,075,000, respectively, related to performance share units. At December 31, 2019, the unamortized compensation expense related to these awards was $8,483,000, which is expected to be recognized over a weighted-average period of 1.3 years.

The table below is a roll-forward of the activity for performance share units during the 12 months ended December 31, 2019 (in thousands, except fair value amounts):



Performance Share Units	Units		Weighted- Average Grant-Date Fair Value
Nonvested at January 1, 2019	1,119		$	11.10
Granted	375		15.88
Target Award Adjustment⁽¹⁾	383		8.61
Vested	(774	)	8.66
Forfeited	(52	)	15.28
Nonvested at December 31, 2019	1,051		$	13.50


(1)	Represents shares earned by participants at 200.0% for awards granted in 2016.

Stock Appreciation Rights

There were no stock appreciation rights outstanding as of December 31, 2019, 2018 and 2017. The Company reversed $32,000 of compensation expense during the year ended December 31, 2017 related to previously granted awards.

Share-Based Compensation Expense

The table below summarizes the amounts recognized in the financial statements for the years ended December 31, 2019, 2018 and 2017 for share-based compensation, including expense for restricted stock units, performance share units, stock options and cash settled stock appreciation rights (in thousands):



	2019		2018		2017
Cost of sales	$	961	$	976	$	907
Operating expenses	11,935		12,554		11,708
Total cost of employee share-based compensation included in income before income tax	$	12,896	$	13,530	$	12,615

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Dec. 31, 2019
Retirement Benefits [Abstract]
Employee Benefit Plan	Note 16. Employee Benefit Plan The Company has a voluntary deferred compensation plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) for all employees who satisfy the age and service requirements under the 401(k) Plan. Each participant may elect to contribute up to 75% of annual compensation, up to the maximum permitted under federal law, and the Company is obligated to contribute annually an amount equal to 50% of the participant’s contributions up to 6% of their eligible annual compensation. The portion of the participant’s account attributable to elective deferral contributions and rollover contributions are 100% vested and nonforfeitable. Participants vest in employer contributions at a rate of 50% per year, becoming fully vested after the completion of two years of service. In accordance with the provisions of the 401(k) Plan, the Company matched employee contributions in the amount of $2,719,000, $2,340,000 and $1,927,000 during 2019, 2018 and 2017, respectively.

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 17. 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 three-tier hierarchy (see Note 2).

The following table summarizes the valuation of the Company’s foreign currency forward contracts, cross-currency debt swap contracts and interest rate hedge contracts (see Note 18) that are measured at fair value on a recurring basis as of December 31, 2019 and 2018 (in thousands):



	Fair Value			Level 1		Level 2			Level 3
2019
Foreign currency forward contracts — asset position	$	61		$	—	$	61		$	—
Foreign currency forward contracts — liability position	(766		)	—		(766		)	—

Cross-currency debt swap contracts — asset position	6,163			—		6,163			—
Cross-currency debt swap contracts — liability position	(25		)	—		(25		)	—

Interest rate hedge contracts — liability position	(8,894		)	—		(8,894		)	—
	$	(3,461	)	$	—	$	(3,461	)	$	—
2018
Foreign currency forward contracts — asset position	$	4,539		$	—	$	4,539		$	—
Foreign currency forward contracts — liability position	(236		)	—		(236		)	—
	$	4,303		$	—	$	4,303		$	—

The fair value of the Company’s foreign currency forward contracts and cross-currency debt swap contracts are 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 and cross-currency debt swap contracts designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) until recognized in earnings during the period that the hedged transactions take place. The fair value of interest rate hedge

contracts are based on observable inputs that are corroborated by market data. Observable inputs include daily market foreign currency rates and interest rate curves. Remeasurement gains and losses are recorded in accumulated other comprehensive income (loss) until recognized in earnings as interest payments are made or received on the Company’s variable-rate debt. Remeasurement gains and losses on foreign currency forward contracts that are not-designated as cash flow hedges are recorded in other income (expense) (see Note 18).

Disclosures about the Fair Value of Financial Instruments

The carrying values of cash and cash equivalents at December 31, 2019 and 2018 are categorized within Level 1 of the fair value hierarchy. 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 December 31, 2019 and 2018, as well as the fair value of contingent contracts that represent financial instruments (in thousands).



	December 31, 2019				December 31, 2018
	Carrying Value		Fair Value		Carrying Value		Fair Value
Term Loan Facility⁽¹⁾	$	446,400	$	450,864	$	—	$	—
Primary Asset-Based Revolving Credit Facility⁽²⁾	$	114,480	$	114,480	$	40,300	$	40,300
Japan ABL Facility	$	30,100	$	30,100	$	—	$	—
Equipment notes⁽³⁾	$	19,715	$	19,715	$	9,629	$	9,629
Standby letters of credit⁽⁴⁾	$	1,075	$	1,075	$	1,187	$	1,187


(1)	In January 2019, the Company entered into the Term Loan Facility. The fair value of this debt is categorized within Level 2 of the fair value hierarchy. See Note 6 for further information.

(2)

The carrying value of the amounts outstanding under the Company's ABL Facility and Japan ABL Facility approximates the fair value due to the short-term nature of these obligations. The fair value of this debt is categorized within Level 2 of the fair value hierarchy based on the observable market borrowing rates. See Note 6 for information on the Company's credit facilities, including certain risks and uncertainties related thereto.


(3)	In December 2017 and August 2019, the Company entered into equipment notes that are both secured by certain equipment at the Company's golf ball manufacturing facility. The fair value of this debt is categorized within Level 2 of the fair value hierarchy. See Note 6 for further information.


(4)	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, using the exchange rates in effect at December 31, 2019. As such, 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 more frequently if certain indicators are present. These assets include long-lived assets, goodwill, non-amortizing intangible assets and investments that are written down to fair value when they are held for sale or determined to be impaired. In each of 2019, 2018, and 2017, there were no impairment indicators related to the Company's assets that are measured at fair value on a nonrecurring basis. Assets purchased in connection with the acquisitions of Jack Wolfskin were valued at their fair value on the date of purchase (see Note 5).

- 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

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

Note 18. 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 well as fluctuations in foreign currency exchange rates and changes in interest rates relating to its long-term debt. The Company uses designated cash flow hedges and non-designated hedges in the form of foreign currency forward contracts as part of its strategy to manage the level of exposure to the risk of fluctuations in foreign currency exchange rates and 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 also uses cross-currency debt swap contracts and interest rate hedge contracts to mitigate the impact of variable rates on its long-term debt as well as changes in foreign currencies.

The Company accounts for its foreign currency forward contracts, cross-currency debt swap contracts and interest rate hedge contracts in accordance with ASC Topic 815. ASC Topic 815 requires the recognition of all derivative 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 cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) and released into earnings as a component of cost of goods sold or net sales, other income (expense) and interest expense during the period in which the hedged transaction takes place. Remeasurement gains or losses of derivatives that are not elected for hedge accounting treatment are recorded in earnings immediately as a component of other income (expense).

Foreign currency forward contracts, cross-currency debt swap contracts and interest rate hedge 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 and changes in interest rates. The Company does not enter into foreign currency forward contracts, cross-currency debt swap contracts and interest rate hedge 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, cross-currency debt swap contracts and interest rate hedge contracts as well as the location of the asset and/or liability on the consolidated balance sheets at December 31, 2019 and 2018 (in thousands):



		Fair Value of Asset Derivatives
		December 31,
	Balance Sheet Location	2019		2018
Derivatives designated as cash flow hedging instruments:
Foreign currency forward contracts	Other current assets	$	53	$	54

Cross-currency debt swap contracts	Other current assets	6,163		—
		$	6,216	$	54
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	8	$	4,485



		Fair Value of Liability Derivatives
		December 31,
	Balance Sheet Location	2019		2018
Derivatives designated as cash flow hedging instruments:
Foreign currency forward contracts	Accounts payable and accrued expenses	$	24	$	39

Cross-currency debt swap contracts	Accounts payable and accrued expenses	25		—

Interest rate hedge contracts	Accounts payable and accrued expenses	1,865		—
	Other long-term liabilities	7,030		—
		$	8,944	$	39
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Accounts payable and accrued expenses	$	741	$	197

The Company's derivative instruments 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 has elected not to present these contracts on a net settlement amount basis, and therefore present these contracts on a gross basis on the accompanying consolidated balance sheets at December 31, 2019 and 2018.

Cash Flow Hedging Instruments

Foreign Currency Forward Contracts

The Company uses foreign currency derivatives designated as qualifying cash flow hedging instruments, including foreign currency forward contracts 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 December 31, 2019 and 2018, the Company had no outstanding foreign currency forward contracts designated as cash flow hedge instruments.

As of December 31, 2019, the Company recorded a net gain of $1,033,000 in accumulated other comprehensive income (loss) related to foreign currency forward contracts. Of this amount, net gains of $398,000 were relieved from accumulated other comprehensive income (loss) and recognized in cost of goods sold for the underlying intercompany sales that were recognized. There were no ineffective hedge gains or losses recognized during 2019. Net gains of $767,000 were relieved from accumulated other comprehensive income (loss) related to the amortization of forward points. Based on the current valuation, the Company expects to reclassify net gains of $661,000 from accumulated other comprehensive income (loss) into net earnings during the next 12 months. See Note 2 for a roll-forward of accumulated other comprehensive income (loss).

In the years ended December 31, 2018 and 2017, the Company recognized a net gain of $236,000 and a net loss of $187,000 in cost of goods sold related to foreign currency forward contracts, respectively.

Cross-Currency Debt Swap and Interest Rate Hedge Contract

The Company uses the combination of a cross-currency debt swap and interest rate hedge, designated as cash flow hedges, to mitigate the risk of changes in interest rates associated with the Company's variable-rate Term Loan Facility (Note 6). In order to achieve this, the Company entered into agreements with lenders party to the Term Loan Facility to convert a portion of the USD denominated Term Loan Facility, which has a higher variable interest rate, to a Euro denominated synthetic note at a lower fixed rate. Over the life of the facility, the Company will receive variable interest payments from the counterparty lenders in exchange for the Company making fixed rate payments, without exchange of the underlying notional amount. In addition, the cross-currency debt swap mitigates the risk of foreign currency exchange fluctuations related to the Euro denominated synthetic note. As of December 31, 2019, the notional amount of the outstanding cross-currency debt swap and interest rate hedge contract was $198,353,000.

During the year ended December 31, 2019, the Company recorded a net gain of $11,212,000 in accumulated other comprehensive income (loss) related to the remeasurement of the cross currency swap contract. Of this amount, net gains of $7,783,000 were relieved from accumulated other comprehensive income (loss), of which $5,027,000 was recognized in interest expense and $2,756,000 related to foreign currency exchange was recognized in other income (expense) during the year ended December 31, 2019. The Company did not have cross-currency debt swap contracts in the years ended December 31, 2018 and 2017.

During the year ended December 31, 2019, the Company recorded a net loss of $9,434,000 related to the remeasurement of the interest rate hedge contract. Of this amount, net losses of $552,000 were relieved from accumulated other comprehensive income (loss) and recognized in interest expense during the year ended December 31, 2019. Based on the current valuation, the Company expects to reclassify a net loss of $1,865,000 from accumulated other comprehensive income (loss) into earnings during the next 12 months. The Company did not have interest rate hedge contracts in the years ended December 31, 2018 and 2017.

The following tables summarize the net effect of all cash flow hedges on the consolidated financial statements for the year ended December 31, 2019, 2018, and 2017 (in thousands):



	Net Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) (Effective Portion)
	Year Ended December 31,
Derivatives designated as cash flow hedging instruments	2019			2018		2017
Foreign currency forward contracts	$	1,033		$	389	$	(2,679	)
Cross-currency debt swap contracts	11,212			—		—
Interest rate hedge contracts	(9,434		)	—		—
	$	2,811		$	389	$	(2,679	)



	Net Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Earnings (Effective Portion)
	Year Ended December 31,
Derivatives designated as cash flow hedging instruments	2019			2018		2017
Foreign currency forward contracts	$	1,165		$	236	$	(187	)
Cross-currency debt swap contracts	7,783			—		—
Interest rate hedge contracts	(552		)	—		—
	$	8,396		$	236	$	(187	)

Foreign Currency Forward Contracts Not Designated as Hedging Instruments

The Company uses foreign currency forward contracts that are not designated as qualifying cash flow 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 December 31, 2019, 2018 and 2017, the notional amounts of the Company’s foreign currency forward contracts used to mitigate the exposures discussed above were approximately $72,119,000, $459,600,000 and $4,821,000, respectively. The significant increase in 2018 includes a foreign currency forward contract that was put in place to mitigate the risk of foreign currency fluctuations in connection with the acquisition of Jack Wolfskin, which was denominated in Euros (see Note 5). 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 consolidated statements of operations. The foreign currency contracts are classified under Level 2 of the fair value hierarchy (see Note 17).

The following table summarizes the location of gains and losses on the consolidated statements of operations that were recognized during the years ended December 31, 2019, 2018 and 2017, respectively, in addition to the derivative contract type (in thousands):



		Amount of Net Gain (Loss) Recognized in Income on Derivative Instruments
Derivatives not designated as hedging instruments	Location of Net gain (loss) recognized in income on derivative instruments	Years Ended December 31,
Derivatives not designated as hedging instruments		2019		2018		2017
Foreign currency forward contracts	Other income (expense), net	$	4,176	$	9,705	$	(7,958	)

In addition, during the year ended December 31, 2019, 2018, and 2017, the Company recognized net foreign currency losses of $5,838,000, and $2,824,000 and gains of $808,000 related to transactions with foreign subsidiaries, respectively.

Segment Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Information

Note 19. Segment Information

As of December 31, 2018, the Company had three operating and reportable segments, namely Golf Clubs, Golf Balls and Gear, Accessories and Other. Due to the Company's acquisition of Jack Wolfskin in January 2019, combined with the continued growth of TravisMathew branded soft goods, the Company has experienced significant growth in its soft goods business. As of January 1, 2019, the Company re-evaluated its global business platform, including its management structure, operations, supply chain and distribution, in addition to how it reviews the results of its operations to assess its performance and allocate resources and also reassessed its operating segments. Based on this assessment, the Company concluded it has two reportable operating segments: Golf Equipment operating segment and Apparel, Gear and Other operating segment.

The Apparel, Gear and Other operating segment includes the newly acquired Jack Wolfskin outdoor apparel, gear and accessories business, the TravisMathew golf and lifestyle apparel and accessories business, and the Callaway and OGIO business, which consists of golf apparel and accessories, storage gear for sport and personal use, and royalties from licensing of the Company’s trademarks and service marks for various soft goods products.

Comparative periods have been reclassified to reflect these changes. There are no significant intersegment transactions.

The table below contains information utilized by management to evaluate its operating segments.



	Years Ended December 31,
	2019			2018			2017
	(In thousands)
Net sales:
Golf Equipment	$	979,173		$	912,947		$	805,642
Apparel, Gear and Other	721,890			329,887			243,094
	$	1,701,063		$	1,242,834		$	1,048,736
Income (loss) before income tax:
Golf Equipment	$	140,316		$	128,619		$	103,872
Apparel, Gear and Other	75,490			54,879			30,631
Reconciling items⁽¹⁾	(120,037		)	(52,226		)	(66,448		)
	$	95,769		$	131,272		$	68,055
Identifiable assets:⁽²⁾
Golf Equipment	$	508,463		$	437,604		$	378,385
Apparel, Gear and Other	939,463			269,432			236,515
Reconciling items⁽³⁾	512,622			345,908			376,257
	$	1,960,548		$	1,052,944		$	991,157
Additions to long-lived assets:⁽³⁾
Golf Equipment	$	29,167		$	27,778		$	23,574
Apparel, Gear and Other	25,386			9,712			3,790
	$	54,553		$	37,490		$	27,364
Goodwill:
Golf Equipment	$	26,329		$	26,183		$	26,904
Apparel, Gear and Other	177,414			29,633			29,525
	$	203,743		$	55,816		$	56,429
Depreciation and amortization:
Golf Equipment	$	16,847		$	11,165		$	13,265
Apparel, Gear and Other	18,104			8,783			4,340
	$	34,951		$	19,948		$	17,605

(1)

Reconciling items represent the deduction of corporate general and administration expenses and other income (expenses), which are not utilized by management in determining segment profitability. The increase in reconciling items in 2019 compared to 2018 includes incremental corporate general and administrative expenses associated with the addition of the Jack Wolfskin business in January 2019, in addition to $34,084,000 in non-recurring transition costs associated with the acquisition of Jack Wolfskin combined with amortization charges of intangible assets related to the Company's OGIO and TravisMathew acquisitions as well as the amortization of intangible assets and the cost impact associated with a change in valuation of inventory (inventory step-up) related to the Company's Jack Wolfskin acquisition. Reconciling items in 2019 also include incremental interest expense of $31,707,000 related to the Term Loan Facility used for the Jack Wolfskin acquisition, as well as $3,896,000 of net foreign currency exchange losses associated with the Jack Wolfskin acquisition. In 2018, reconciling items include $7,261,000 of net foreign currency exchange gains, and $3,661,000 of transaction costs associated with the Jack Wolfskin acquisition that was completed in January 2019. Reconciling items in 2017 include $11,264,000 of transaction and transitional costs associated with the acquisitions of OGIO and TravisMathew in 2017, and net foreign currency exchange losses of $6,880,000.

(2)

Identifiable assets are comprised of net inventory, certain property, plant and equipment, intangible assets and goodwill. Reconciling items represent unallocated corporate assets not segregated between the two segments including cash and cash equivalents, net accounts receivable, and deferred tax assets. The $166,714,000 increase in reconciling items in 2019 compared to 2018 was primarily due to increases of $42,685,000 in cash and cash equivalents, $69,081,000 in net accounts receivable and a $17,897,000 increase related to the additional investment in Topgolf in the fourth quarter of 2019. The $30,349,000 decrease in reconciling items in 2018 compared to 2017 was primarily due to decreases of $21,693,000 in cash and cash equivalents and $16,319,000 in deferred tax assets related to utilization of net operating losses, tax credits, and tax reform regulations released in 2018. Reconciling items in 2017 were primarily comprised of a $40,301,000 decrease in cash and cash equivalents compared to 2016 primarily to fund the OGIO and TravisMathew acquisitions in 2017, combined with a $23,535,000 decrease in net deferred tax assets compared to 2016 primarily due to the utilization of net operating losses and the reevaluation of deferred tax assets as a result of the Tax Act.


(3)	Additions to long-lived assets are comprised of purchases of property, plant and equipment.


(4)	The $147,927,000 increase in goodwill in 2019 compared to 2018 was primarily as a result of the acquisition of Jack Wolfskin in January 2019.

The Company markets its products in the United States and internationally, with its principal international markets being Japan and Europe. The tables below contain information about the geographical areas in which the Company operates. Revenues are attributed to the location to which the product was shipped. Long-lived assets are based on location of domicile.



	Sales		Long-Lived Assets⁽¹⁾
	(In thousands)
2019⁽²⁾
United States	$	788,232	$	466,957
Europe	428,628		444,468
Japan	246,260		10,347
Rest of World	237,943		15,380
	$	1,701,063	$	937,152
2018⁽²⁾
United States	$	708,467	$	422,803
Europe	149,602		6,855
Japan	223,707		8,723
Rest of World	161,058		14,578
	$	1,242,834	$	452,959
2017⁽²⁾
United States	$	564,648	$	403,493
Europe	140,947		7,681
Japan	199,372		7,635
Rest of World	143,769		14,965
	$	1,048,736	$	433,774


(1)	Long-lived assets include all non-current assets of the Company except deferred tax assets.

(2)

In connection with the Company's assessment of its operating and reportable segments the Company also reassessed its reportable regions. As a result, as of January 1, 2019, the Company reports regional sales previously reported in Rest of Asia and Other Foreign Countries in Rest of World. Accordingly, prior period amounts have been reclassified to conform to the current year presentation of regional sales.

Transactions with Related Parties	12 Months Ended
Transactions with Related Parties	Dec. 31, 2019
Related Party Transactions [Abstract]
Transactions with Related Parties	Note 20. Transactions with Related Parties The Callaway Golf Company Foundation (the “Foundation”) oversees and administers charitable giving and makes grants to selected organizations. Officers of the Company also serve as directors of the Foundation and the Company’s employees provide accounting and administrative services for the Foundation. In each of 2019, 2018 and 2017, the Company recognized charitable contribution expense of $750,000 for the Foundation.

Summarized Quarterly Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Summarized Quarterly Data (Unaudited)

Note 21. Summarized Quarterly Data (Unaudited)



	Fiscal Year 2019 Quarters
	1st			2nd			3rd		4th			Total
	(In thousands, except per share data)
Net sales	$	516,197		$	446,708		$	426,217	$	311,941		$	1,701,063
Gross profit	$	238,433		$	206,817		$	191,389	$	130,148		$	766,787
Net income (loss)	$	48,501		$	28,898		$	31,048	$	(29,218	)	$	79,229
Less: Net loss attributable to non-controlling interests	$	(146	)	$	(33	)	$	—	$	—		$	(179	)
Net income (loss) attributable to Callaway Golf Company	$	48,647		$	28,931		$	31,048	$	(29,218	)	$	79,408
Earnings (loss) per common share⁽¹⁾
Basic	$	0.51		$	0.31		$	0.33	$	(0.31	)	$	0.84
Diluted	$	0.50		$	0.30		$	0.32	$	(0.31	)	$	0.82



	Fiscal Year 2018 Quarters
	1st			2nd		3rd		4th			Total
	(In thousands, except per share data)
Net sales	$	403,191		$	396,311	$	262,654	$	180,678		$	1,242,834
Gross profit	$	200,462		$	192,697	$	115,239	$	69,971		$	578,369
Net income (loss)	$	62,731		$	60,934	$	9,740	$	(28,151	)	$	105,254
Less: Net income (loss) attributable to non-controlling interests	$	(124	)	$	67	$	223	$	348		$	514
Net income (loss) attributable to Callaway Golf Company	$	62,855		$	60,867	$	9,517	$	(28,499	)	$	104,740
Earnings (loss) per common share⁽¹⁾
Basic	$	0.66		$	0.65	$	0.10	$	(0.30	)	$	1.11
Diluted	$	0.65		$	0.63	$	0.10	$	(0.30	)	$	1.08

(1)

Earnings per share is computed individually for each of the quarters presented; therefore, the sum of the quarterly earnings per share may not necessarily equal the total for the year.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Reconciliation of Allowance for Sales Returns

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



	Years Ended December 31,
	2019			2018			2017
	(in thousands)
Beginning balance	$	24,522		$	15,470		$	9,341
Provision for credit losses	95,094			52,088			37,521
Write-off of uncollectible amounts, net of recoveries	(90,573		)	(43,036		)	(31,392		)
Ending balance	$	29,043		$	24,522		$	15,470

Principles of Consolidation

Use of Estimates

Recent Accounting Standards

Adoption of New Accounting Standards

Revenue Recognition

Royalty Income

Gift Cards

Warranty Policy

Fair Value Measurements

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

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

Advertising Costs

The Company's primary advertising costs are from television and print media advertisements. The Company’s policy is to expense advertising costs, including production costs, as incurred.

Research and Development Costs

Research and development costs are expensed as incurred.

Foreign Currency Translation and Transactions

Derivatives and Hedging

Cash and Cash Equivalents

Cash equivalents are highly liquid investments purchased with original maturities of three months or less.

Trade Accounts Receivable

Allowance for Doubtful Accounts

Inventories

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives generally as follows:



Buildings and improvements	10-30 years
Machinery and equipment	5-10 years
Furniture, computers and equipment	3-5 years
Production molds	2-5 years

Long-Lived Assets

Goodwill and Intangible Assets

Investments

Share-Based Compensation

Income Taxes

Other Income (Expense), Net

Other income (expense), net primarily includes gains and losses on foreign currency forward contracts, cross-currency debt swap contracts and foreign currency transactions.

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss includes the impact of foreign currency translation adjustments and activity related to derivative instruments designated for hedge accounting.

Segment Information

At December 31, 2018 the Company had three

Concentration of Risk

The Company's top five customers specific to each operating segment represented the following as a percentage of each segment's total net sales by operating segment:


•	Golf Equipment customers accounted for approximately 23%, 24% and 22% of total consolidated Golf Equipment sales in 2019, 2018 and 2017, respectively; and


•	Apparel, Gear and Other customers accounted for approximately 11%, 19% and 15% of total consolidated Apparel, Gear and Other sales in 2019, 2018 and 2017, respectively.

A loss of one or more of these customers would have a significant effect on the Company's net sales.

Revenue Recognition (Policies)	12 Months Ended
Revenue Recognition (Policies)	Dec. 31, 2019
Revenue Recognition [Abstract]
Revenue Recognition	Royalty Income Royalty income is recognized over time in net sales as underlying product sales occur, subject to certain minimum royalties, in accordance with the related licensing arrangements. Royalty income is included in the Company's Apparel, Gear and Other operating segment. Total royalty income for the years ended December 31, 2019, 2018 and 2017 was $22,455,000, $19,021,000 and $18,622,000 respectively. Gift Cards

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Reconciliation of Allowance for Sales Returns

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



	Years Ended December 31,
	2019			2018			2017
	(in thousands)
Beginning balance	$	24,522		$	15,470		$	9,341
Provision for credit losses	95,094			52,088			37,521
Write-off of uncollectible amounts, net of recoveries	(90,573		)	(43,036		)	(31,392		)
Ending balance	$	29,043		$	24,522		$	15,470

Reconciliation of Reserve for Warranty Expense

The following table provides a reconciliation of the activity related to the Company’s accrued warranty expense:



	Years Ended December 31,
	2019			2018			2017
	(In thousands)
Beginning balance	$	7,610		$	6,657		$	5,395
Provision	8,311			9,437			9,434
Provision liability assumed from acquisition	2,208			—			—
Claims paid/costs incurred	(8,493		)	(8,484		)	(8,172		)
Ending balance	$	9,636		$	7,610		$	6,657

Reconciliation of Allowance for Doubtful Accounts

The following table provides a reconciliation of the activity related to the Company’s allowance for estimated credit losses.



	Years Ended December 31,
	2019			2018			2017
	(In thousands)
Beginning balance	$	5,610		$	4,447		$	5,728
Provision for credit losses	1,107			2,257			2,335
Write-off of uncollectible amounts, net of recoveries	(725		)	(1,094		)	(3,616		)
Ending balance	$	5,992		$	5,610		$	4,447

Estimated Useful Lives

Depreciation is computed using the straight-line method over estimated useful lives generally as follows:



Buildings and improvements	10-30 years
Machinery and equipment	5-10 years
Furniture, computers and equipment	3-5 years
Production molds	2-5 years

Other Income (Expense) Net



	Years Ended December 31,
	2019			2018			2017
	(In thousands)
Foreign currency forward contract gain (loss), net	$	6,947		$	10,085		$	(7,688	)
Foreign currency transaction gain (loss), net	(5,838		)	(2,824		)	808
Other	485			518			9
	$	1,594		$	7,779		$	(6,871	)

Schedule of Accumulated Other Comprehensive Income (Loss)



	Derivative Instruments			Foreign Currency Translation			Total
Accumulated other comprehensive loss, December 31, 2016	$	1,570		$	(20,036	)	$	(18,466	)
Change in derivative instruments	(2,679		)	—			(2,679		)
Net losses reclassified to cost of goods sold	187			—			187
Foreign currency translation adjustments	—			14,198			14,198
Income tax expense	594			—			594
Accumulated other comprehensive loss, December 31, 2017, after tax	(328		)	(5,838		)	(6,166		)
Change in derivative instruments	389			—			389
Net gains reclassified to cost of goods sold	(236		)	—			(236		)
Foreign currency translation adjustments	—			(7,969		)	(7,969		)
Income tax expense	282			—			282
Accumulated other comprehensive loss, December 31, 2018, after tax	107			(13,807		)	(13,700		)
Change in derivative instruments	2,811			—			2,811
Net gains reclassified to cost of goods sold	(1,165		)	—			(1,165		)
Net gains reclassified to other income (expense)	(2,756		)	—			(2,756		)
Net gains reclassified to interest expense	(4,475		)	—			(4,475		)
Foreign currency translation adjustments	—			(4,412		)	(4,412		)
Income tax expense	1,275			—			1,275
Accumulated other comprehensive loss, December, 2019, after tax	$	(4,203	)	$	(18,219	)	$	(22,422	)

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases is as follows (in thousands):



	Balance Sheet Location	December 31, 2019
Operating leases
ROU assets, net	Operating lease ROU assets, net	$	160,098
Lease liabilities, short-term	Operating lease liabilities, short-term	$	26,418
Lease liabilities, long-term	Operating lease liabilities, long-term	$	137,696

Finance Leases
ROU assets, net,	Other assets	$	1,263
Lease liabilities, short-term	Accounts payable and accrued expenses	$	589
Lease liabilities, long-term	Long-term other	$	558

Components of Lease Expense and Other Information Related to Leases

The components of lease expense are as follows (in thousands):



	December 31, 2019
Operating lease costs	$	38,449
Financing lease costs:
Amortization of right-of-use assets	845
Interest on lease liabilities	83
Total financing lease costs	928
Variable lease costs	4,361
Total lease costs	$	43,738

Other information related to leases was as follows (in thousands):



Supplemental Cash Flows Information	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	38,926
Operating cash flows from finance leases	$	83
Financing cash flows from finance leases	$	706

Lease liabilities arising from new ROU assets:
Operating leases	$	18,026
Finance leases	$	308

Weighted average remaining lease term (years):
Operating leases	10.4
Finance leases	2.8

Weighted average discount rate:
Operating leases	5.7		%
Finance leases	4.2		%

Future Minimum Lease Obligations

Future minimum lease obligations as of December 31, 2019 were as follows (in thousands):



	Operating Leases		Finance Leases
2020	$	34,573	$	629
2021	29,034		242
2022	24,786		201
2023	21,203		92
2024	17,873		19
Thereafter	85,483		22
Total future lease payments	212,952		1,205
Less: imputed interest	48,838		58
Total	$	164,114	$	1,147

Future Minimum Lease Obligations

Future minimum lease obligations as of December 31, 2019 were as follows (in thousands):



	Operating Leases		Finance Leases
2020	$	34,573	$	629
2021	29,034		242
2022	24,786		201
2023	21,203		92
2024	17,873		19
Thereafter	85,483		22
Total future lease payments	212,952		1,205
Less: imputed interest	48,838		58
Total	$	164,114	$	1,147

Revenue Recognition Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2019

Revenue Recognition [Abstract]

Reconciliation of Allowance for Sales Returns

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



	Years Ended December 31,
	2019			2018			2017
	(in thousands)
Beginning balance	$	24,522		$	15,470		$	9,341
Provision for credit losses	95,094			52,088			37,521
Write-off of uncollectible amounts, net of recoveries	(90,573		)	(43,036		)	(31,392		)
Ending balance	$	29,043		$	24,522		$	15,470

Disaggregation of Revenue

The following table presents the Company's revenue disaggregated by major product category and operating and reportable segment (in thousands):



	Operating and Reportable Segments⁽¹⁾
	Year Ended December 31, 2019						Year Ended December 31, 2018
	Golf Equipment		Apparel, Gear & Other		Total		Golf Equipment		Apparel, Gear & Other		Total
Major product category:
Golf Clubs	$	768,310	$	—	$	768,310	$	717,293	$	—	$	717,293
Golf Balls	210,863		—		210,863		195,654		—		195,654
Apparel	—		410,712		410,712		—		112,157		112,157
Gear, Accessories & Other	—		311,178		311,178		—		217,730		217,730
	$	979,173	$	721,890	$	1,701,063	$	912,947	$	329,887	$	1,242,834

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date based on the purchase price allocation (in thousands):



	At August 17, 2017
Assets Acquired
Cash		$	663
Accounts receivable		9,715
Inventory		11,909
Other current assets		549
Property and equipment		4,327
Other assets		117
Intangibles - trade name		78,400
Intangibles - licensing agreement		1,100
Intangibles - customer & distributor relationships		4,450
Intangibles - non-compete agreements		600
Goodwill		23,748
Total assets acquired		135,578
Liabilities Assumed
Accounts Payable and accrued liabilities		11,000
Net assets acquired		$	124,578

The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date based on the purchase price allocation (in thousands):



	At January 11, 2017
Assets Acquired
Cash		$	8,061
Accounts receivable		7,696
Inventory		7,092
Other current assets		328
Property and equipment		2,369
Intangibles - trade name		49,700
Intangibles - customer & distributor relationships		1,500
Intangibles - non-compete agreements		150
Goodwill		5,885
Total assets acquired		82,781
Liabilities Assumed
Accounts Payable and accrued liabilities		16,830
Net assets acquired		$	65,951

The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date based on the purchase price allocation (in thousands):



	At January 4, 2019
Assets Acquired
Cash		$	58,096
Accounts receivable		26,637
Inventories		94,504
Income tax receivable		6,588
Other current assets		11,483
Property and equipment		20,930
Operating lease right-of-use assets		120,865
Deferred tax assets		2,930
Other assets		23
Intangibles - trade name		239,295
Intangibles - retail partners & distributor relationships		38,743
Goodwill		150,180
Total assets acquired		770,274
Liabilities Assumed
Accounts payable and accrued liabilities		46,124
Income taxes payable, long-term		2,416
Operating lease liabilities		120,524
Deferred tax liabilities		80,009
Net assets acquired		$	521,201

Business Acquisition, Pro Forma Information [Table Text Block]



	December 31, 2019
	2019		2018
	(in thousands)
Net sales	$	1,701,063	$	1,622,053
Net income attributable to Callaway Golf Company	$	96,770	$	63,983

Financing Arrangements Financing Arrangements (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Maturities of Long-term Debt



	(in thousands)
2020	$	9,653
2021	9,825
2022	10,003
2023	7,545
2024	6,680
2025	422,400
	$	466,106

Earnings per Common Share (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Computation of Basic and Diluted Earnings (Loss) Per Share

The following table summarizes the computation of basic and diluted earnings per share:



	Years Ended December 31,
	2019		2018		2017
	(In thousands, except per share data)
Earnings per common share—basic
Net income attributable to Callaway Golf Company	$	79,408	$	104,740	$	40,806
Weighted-average common shares outstanding—basic	94,251		94,579		94,329
Basic earnings per common share	$	0.84	$	1.11	$	0.43

Earnings per common share—diluted
Net income attributable to Callaway Golf Company	$	79,408	$	104,740	$	40,806
Weighted-average common shares outstanding—basic	94,251		94,579		94,329
Options and restricted stock	2,036		2,574		2,248
Weighted-average common shares outstanding—diluted	96,287		97,153		96,577
Diluted earnings per common share	$	0.82	$	1.08	$	0.42

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets by Major Asset Class

The following sets forth the intangible assets by major asset class:



	Useful Life (Years)	December 31, 2019							December 31, 2018
	Useful Life (Years)	Gross		Accumulated Amortization			Net Book Value		Gross		Accumulated Amortization			Net Book Value
				(In thousands)							(In thousands)
Indefinite-lived:
Trade name, trademark and trade dress and other	NA	$	453,837		$	—	$	453,837	$	218,364		$	—	$	218,364
Amortizing:
Patents	2-16	31,581			31,581		—		31,581			31,543		38
Customer and distributor relationships, and other	1-9	53,904			14,318		39,586		15,780			9,490		6,290
Total intangible assets		$	539,322		$	45,899	$	493,423	$	265,725		$	41,033	$	224,692

Amortization Expense Related to Intangible Assets

Amortization expense related to intangible assets at December 31, 2019 in each of the next five fiscal years and beyond is expected to be incurred as follows (in thousands):



2020	$	4,780
2021	4,724
2022	4,548
2023	4,409
2024	4,409
Thereafter	16,716
	$	39,586

Selected Financial Statement Information (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure Selected Financial Statement Information [Abstract]

Selected Financial Statement Information



	December 31,
	2019			2018
	(In thousands)
Accounts receivable, net:
Trade accounts receivable	$	203,078		$	108,547
Liability for sales returns	(29,043		)	(24,522		)
Accrued variable consideration for sales program incentives	(20,336		)	(7,041		)
Allowance for doubtful accounts	(13,244		)	(5,610		)
	$	140,455		$	71,374
Inventories:
Raw materials	$	76,140		$	80,474
Work-in-process	860			815
Finished goods	379,639			256,768
	$	456,639		$	338,057
Property, plant and equipment, net:
Land	$	7,229		$	7,232
Buildings and improvements	80,856			75,070
Machinery and equipment	129,680			111,055
Furniture, computers and equipment	134,719			111,793
Production molds	5,820			4,804
Construction-in-process	37,244			17,026
	395,548			326,980
Accumulated depreciation	(262,788		)	(238,508		)
	$	132,760		$	88,472
Accounts payable and accrued expenses:
Accounts payable	$	67,843		$	42,468
Accrued expenses	196,308			127,135
Accrued goods in-transit	12,149			39,050
	$	276,300		$	208,653
Accrued employee compensation and benefits:
Accrued payroll and taxes	$	34,303		$	31,559
Accrued vacation and sick pay	11,574			10,606
Accrued commissions	1,014			1,007
	$	46,891		$	43,172

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Loss Before Income Tax Provision (Benefit)

The Company’s income before income tax provision was subject to taxes in the following jurisdictions for the following periods (in thousands):



	Years Ended December 31,
	2019		2018		2017
United States	$	55,352	$	100,031	$	50,706
Foreign	40,417		31,241		17,349
	$	95,769	$	131,272	$	68,055

Expense Benefit for Income Taxes

The expense (benefit) for income taxes is comprised of (in thousands):



	Years Ended December 31,
	2019			2018		2017
Current tax provision:
Federal	$	1,022		$	736	$	610
State	1,403			1,880		1,259
Foreign	9,933			6,577		6,135
	12,358			9,193		8,004
Deferred tax expense (benefit):
Federal	10,185			14,844		20,746
State	335			1,086		(1,127		)
Foreign	(6,338		)	895		(1,235		)
	4,182			16,825		18,384
Income tax provision	$	16,540		$	26,018	$	26,388

Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows (in thousands):



	December 31,
	2019			2018
Deferred tax assets:
Reserves and allowances not currently deductible for tax purposes	$	22,926		$	13,495
Basis difference related to fixed assets	8,381			5,342
Compensation and benefits	7,580			8,416
Basis difference for inventory valuation	849			1,784
Compensatory stock options and rights	3,404			3,988
Operating loss carryforwards	9,080			7,191
Tax credit carryforwards	55,001			54,219
ASC 842 lease liability	44,768			—
Interest expense carryforward	5,057			—
Basis difference related to intangible assets with a definite life	354			12,767
Other	2,790			5,798
Total deferred tax assets	160,190			113,000
Valuation allowance for deferred tax assets	(14,469		)	(13,408		)
Deferred tax assets, net of valuation allowance	$	145,721		$	99,592
Deferred tax liabilities:
Prepaid expenses	(1,685		)	(1,181		)
Basis difference related to intangible assets with an indefinite life	(99,712		)	(25,128		)
ASC 842 right-of-use assets	(43,859		)	—
Total deferred tax liabilities	(145,256		)	(26,309		)
Net deferred tax assets	$	465		$	73,283
Net deferred tax assets (liabilities) are shown on the accompanying consolidated balance sheets as follows:
Non-current deferred tax assets	$	73,948		$	75,079
Non-current deferred tax liabilities	(73,483		)	(1,796		)
Net deferred tax assets	$	465		$	73,283

Credit Carryforward Expiry



U.S. foreign tax credit	$	28,599	2020 - 2029
U.S. research tax credit	$	18,758	2031 - 2039
U.S. business tax credits	$	21	2031 - 2039
State investment tax credits	$	1,148	Do not expire
State research tax credits	$	18,940	Do not expire

Net Operating Losses Expiry

The Company has recorded a deferred tax asset reflecting the benefit of operating loss carryforwards. The net operating losses expire as follows (in thousands):



U.S. loss carryforwards	$	—	N/A
State loss carryforwards	$	101,205	2025 - 2036

Reconciliation of Effective Tax Rate on Income or Loss and Statutory Tax Rate

A reconciliation of the effective tax rate on income or loss and the statutory tax rate is as follows:



	Years Ended December 31,
	2019		2018		2017
Statutory U.S. tax rate	21.0	%	21.0	%	35.0	%
State income taxes, net of U.S. tax benefit	1.6	%	1.8	%	1.8	%
Foreign income taxed at other than U.S. statutory rate	(5.0	)%	1.1	%	(0.6	)%
Federal tax credits	(3.5	)%	(4.4	)%	(2.7	)%
Other non-deductible expenses	1.2	%	0.7	%	1.1	%
Non-deductible compensation	1.5	%	0.8	%	0.7	%
Stock option compensation excess tax benefits	(1.5	)%	(1.0	)%	(2.0	)%
Intra-entity asset transfers	—	%	0.8	%	(6.3	)%
U.S. foreign tax inclusions	0.1	%	1.1	%	1.6	%
Foreign derived intangible income deduction	(3.2	)%	(2.7	)%	—	%
Impact of uncertain tax positions	3.7	%	0.8	%	1.8	%
Enactment of the Tax Cuts and Jobs Act	—	%	0.3	%	11.1	%
Change in deferred tax valuation allowance	0.2	%	—	%	(2.0	)%
Other	1.2	%	(0.5	)%	(0.7	)%
Effective tax rate	17.3	%	19.8	%	38.8	%

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	2019			2018			2017
Balance at January 1	$	11,832		$	9,300		$	8,256
Additions based on tax positions related to the current year	3,224			1,354			1,061
Additions for tax positions of prior years	593			1,624			233
Reductions for tax positions of prior years	(174		)	(148		)	(192		)
Settlement of tax audits	(7		)	—			(33		)
Current year acquisitions	11,006			—			—
Reductions due to lapsed statute of limitations	(481		)	(298		)	(25		)
Balance at December 31	$	25,993		$	11,832		$	9,300

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



Major Tax Jurisdiction	Years No Longer Subject to Audit
U.S. federal	2010 and prior
California (U.S.)	2008 and prior
Germany	2013 and prior
Japan	2012 and prior
South Korea	2013 and prior
United Kingdom	2015 and prior

Commitments & Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Future Purchase Commitments



2020	$	39,492
2021	18,668
2022	11,415
2023	3,331
2024	—
	$	72,906

Share-Based Employee Compensation (Tables)

12 Months Ended

Dec. 31, 2019

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

Shares Authorized, Available for Future Grant and Outstanding Under Each Plans

The following table presents shares authorized, available for future grant and outstanding under each of the Company’s plans as of December 31, 2019:



	Authorized	Available	Outstanding⁽¹⁾
	(In thousands)
2004 Incentive Plan	33,000	9,003	2,671
2013 Directors Plan	1,000	640	56
Total	34,000	9,643	2,727

(1)

Includes 4,000 shares of accrued incremental dividend equivalent rights on outstanding shares underlying restricted stock units granted under the 2004 Incentive Plan and 2013 Directors Plan.

Stock Option Activities

The following table summarizes the Company’s stock option activities for the year ended December 31, 2019 (in thousands, except price per share and contractual term):



Options	Number of Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2019	691		$	6.54
Granted	—		$	—
Exercised	(56	)	$	6.60
Forfeited	—		$	—
Expired	—		$	—
Outstanding at December 31, 2019	635		$	6.53	3.07	$	9,313
Vested and expected to vest in the future at December 31, 2019	635		$	6.53	3.07	$	9,313
Exercisable at December 31, 2019	635		$	6.53	3.07	$	9,313

Roll-Forward of Activity for Restricted Stock Units

The table below is a roll-forward of the activity for restricted stock units during the 12 months ended December 31, 2019 (in thousands, except fair value amounts):



Restricted Stock Units	Units		Weighted- Average Grant-Date Fair Value
Nonvested at January 1, 2019	1,239		$	12.16
Granted	479		15.63
Vested	(543	)	11.53
Forfeited	(139	)	12.56
Nonvested at December 31, 2019⁽¹⁾	1,036		$	14.04

(1)

Excludes 4,000 shares of accrued incremental dividend equivalent rights on outstanding shares underlying restricted stock units granted under the 2004 Incentive Plan and 2013 Directors Plan.

Roll-Forward of Activity for Performance Share Units

The table below is a roll-forward of the activity for performance share units during the 12 months ended December 31, 2019 (in thousands, except fair value amounts):



Performance Share Units	Units		Weighted- Average Grant-Date Fair Value
Nonvested at January 1, 2019	1,119		$	11.10
Granted	375		15.88
Target Award Adjustment⁽¹⁾	383		8.61
Vested	(774	)	8.66
Forfeited	(52	)	15.28
Nonvested at December 31, 2019	1,051		$	13.50

(1)

Represents shares earned by participants at 200.0% for awards granted in 201

Summary of Total Number of Stock Appreciation Rights Granted

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



	2019		2018		2017
Cost of sales	$	961	$	976	$	907
Operating expenses	11,935		12,554		11,708
Total cost of employee share-based compensation included in income before income tax	$	12,896	$	13,530	$	12,615

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Valuation of Foreign Currency Exchange Contracts by Pricing Levels



	Fair Value			Level 1		Level 2			Level 3
2019
Foreign currency forward contracts — asset position	$	61		$	—	$	61		$	—
Foreign currency forward contracts — liability position	(766		)	—		(766		)	—

Cross-currency debt swap contracts — asset position	6,163			—		6,163			—
Cross-currency debt swap contracts — liability position	(25		)	—		(25		)	—

Interest rate hedge contracts — liability position	(8,894		)	—		(8,894		)	—
	$	(3,461	)	$	—	$	(3,461	)	$	—
2018
Foreign currency forward contracts — asset position	$	4,539		$	—	$	4,539		$	—
Foreign currency forward contracts — liability position	(236		)	—		(236		)	—
	$	4,303		$	—	$	4,303		$	—

Fair Value Relating to Financial Assets and Liabilities

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 December 31, 2019 and 2018, as well as the fair value of contingent contracts that represent financial instruments (in thousands).



	December 31, 2019				December 31, 2018
	Carrying Value		Fair Value		Carrying Value		Fair Value
Term Loan Facility⁽¹⁾	$	446,400	$	450,864	$	—	$	—
Primary Asset-Based Revolving Credit Facility⁽²⁾	$	114,480	$	114,480	$	40,300	$	40,300
Japan ABL Facility	$	30,100	$	30,100	$	—	$	—
Equipment notes⁽³⁾	$	19,715	$	19,715	$	9,629	$	9,629
Standby letters of credit⁽⁴⁾	$	1,075	$	1,075	$	1,187	$	1,187


(1)	In January 2019, the Company entered into the Term Loan Facility. The fair value of this debt is categorized within Level 2 of the fair value hierarchy. See Note 6 for further information.

(2)


(3)	In December 2017 and August 2019, the Company entered into equipment notes that are both secured by certain equipment at the Company's golf ball manufacturing facility. The fair value of this debt is categorized within Level 2 of the fair value hierarchy. See Note 6 for further information.

(4)

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, using the exchange rates in effect at December 31, 2019. As such, the fair value of this contingent obligation is categorized within Level 2 of the fair value hierarchy.

Derivatives and Hedging (Tables)

12 Months Ended

Dec. 31, 2019

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



		Fair Value of Asset Derivatives
		December 31,
	Balance Sheet Location	2019		2018
Derivatives designated as cash flow hedging instruments:
Foreign currency forward contracts	Other current assets	$	53	$	54

Cross-currency debt swap contracts	Other current assets	6,163		—
		$	6,216	$	54
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	8	$	4,485



		Fair Value of Liability Derivatives
		December 31,
	Balance Sheet Location	2019		2018
Derivatives designated as cash flow hedging instruments:
Foreign currency forward contracts	Accounts payable and accrued expenses	$	24	$	39

Cross-currency debt swap contracts	Accounts payable and accrued expenses	25		—

Interest rate hedge contracts	Accounts payable and accrued expenses	1,865		—
	Other long-term liabilities	7,030		—
		$	8,944	$	39
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Accounts payable and accrued expenses	$	741	$	197

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 financial statements for the year ended December 31, 2019, 2018, and 2017 (in thousands):



	Net Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) (Effective Portion)
	Year Ended December 31,
Derivatives designated as cash flow hedging instruments	2019			2018		2017
Foreign currency forward contracts	$	1,033		$	389	$	(2,679	)
Cross-currency debt swap contracts	11,212			—		—
Interest rate hedge contracts	(9,434		)	—		—
	$	2,811		$	389	$	(2,679	)



	Net Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Earnings (Effective Portion)
	Year Ended December 31,
Derivatives designated as cash flow hedging instruments	2019			2018		2017
Foreign currency forward contracts	$	1,165		$	236	$	(187	)
Cross-currency debt swap contracts	7,783			—		—
Interest rate hedge contracts	(552		)	—		—
	$	8,396		$	236	$	(187	)

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



		Amount of Net Gain (Loss) Recognized in Income on Derivative Instruments
Derivatives not designated as hedging instruments	Location of Net gain (loss) recognized in income on derivative instruments	Years Ended December 31,
Derivatives not designated as hedging instruments		2019		2018		2017
Foreign currency forward contracts	Other income (expense), net	$	4,176	$	9,705	$	(7,958	)

Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Information Utilized by Management to Evaluate its Operating Segments

The table below contains information utilized by management to evaluate its operating segments.



	Years Ended December 31,
	2019			2018			2017
	(In thousands)
Net sales:
Golf Equipment	$	979,173		$	912,947		$	805,642
Apparel, Gear and Other	721,890			329,887			243,094
	$	1,701,063		$	1,242,834		$	1,048,736
Income (loss) before income tax:
Golf Equipment	$	140,316		$	128,619		$	103,872
Apparel, Gear and Other	75,490			54,879			30,631
Reconciling items⁽¹⁾	(120,037		)	(52,226		)	(66,448		)
	$	95,769		$	131,272		$	68,055
Identifiable assets:⁽²⁾
Golf Equipment	$	508,463		$	437,604		$	378,385
Apparel, Gear and Other	939,463			269,432			236,515
Reconciling items⁽³⁾	512,622			345,908			376,257
	$	1,960,548		$	1,052,944		$	991,157
Additions to long-lived assets:⁽³⁾
Golf Equipment	$	29,167		$	27,778		$	23,574
Apparel, Gear and Other	25,386			9,712			3,790
	$	54,553		$	37,490		$	27,364
Goodwill:
Golf Equipment	$	26,329		$	26,183		$	26,904
Apparel, Gear and Other	177,414			29,633			29,525
	$	203,743		$	55,816		$	56,429
Depreciation and amortization:
Golf Equipment	$	16,847		$	11,165		$	13,265
Apparel, Gear and Other	18,104			8,783			4,340
	$	34,951		$	19,948		$	17,605

(1)

(2)


(3)	Additions to long-lived assets are comprised of purchases of property, plant and equipment.

(4)

The $147,927,000 increase in goodwill in 2019 compared to 2018 was primarily as a result of the acquisition

Net Sales By Product Category

Revenues and Long Lived Assets

Long-lived assets are based on location of domicile.



	Sales		Long-Lived Assets⁽¹⁾
	(In thousands)
2019⁽²⁾
United States	$	788,232	$	466,957
Europe	428,628		444,468
Japan	246,260		10,347
Rest of World	237,943		15,380
	$	1,701,063	$	937,152
2018⁽²⁾
United States	$	708,467	$	422,803
Europe	149,602		6,855
Japan	223,707		8,723
Rest of World	161,058		14,578
	$	1,242,834	$	452,959
2017⁽²⁾
United States	$	564,648	$	403,493
Europe	140,947		7,681
Japan	199,372		7,635
Rest of World	143,769		14,965
	$	1,048,736	$	433,774


(1)	Long-lived assets include all non-current assets of the Company except deferred tax assets.

(2)

Summarized Quarterly Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Summarized Quarterly Data



	Fiscal Year 2019 Quarters
	1st			2nd			3rd		4th			Total
	(In thousands, except per share data)
Net sales	$	516,197		$	446,708		$	426,217	$	311,941		$	1,701,063
Gross profit	$	238,433		$	206,817		$	191,389	$	130,148		$	766,787
Net income (loss)	$	48,501		$	28,898		$	31,048	$	(29,218	)	$	79,229
Less: Net loss attributable to non-controlling interests	$	(146	)	$	(33	)	$	—	$	—		$	(179	)
Net income (loss) attributable to Callaway Golf Company	$	48,647		$	28,931		$	31,048	$	(29,218	)	$	79,408
Earnings (loss) per common share⁽¹⁾
Basic	$	0.51		$	0.31		$	0.33	$	(0.31	)	$	0.84
Diluted	$	0.50		$	0.30		$	0.32	$	(0.31	)	$	0.82



	Fiscal Year 2018 Quarters
	1st			2nd		3rd		4th			Total
	(In thousands, except per share data)
Net sales	$	403,191		$	396,311	$	262,654	$	180,678		$	1,242,834
Gross profit	$	200,462		$	192,697	$	115,239	$	69,971		$	578,369
Net income (loss)	$	62,731		$	60,934	$	9,740	$	(28,151	)	$	105,254
Less: Net income (loss) attributable to non-controlling interests	$	(124	)	$	67	$	223	$	348		$	514
Net income (loss) attributable to Callaway Golf Company	$	62,855		$	60,867	$	9,517	$	(28,499	)	$	104,740
Earnings (loss) per common share⁽¹⁾
Basic	$	0.66		$	0.65	$	0.10	$	(0.30	)	$	1.11
Diluted	$	0.65		$	0.63	$	0.10	$	(0.30	)	$	1.08

(1)

Earnings per share is computed individually for each of the quarters presented; therefore, the sum of the quarterly earnings per share may not necessarily equal the total for the year.

The Company - Additional Information (Details)	12 Months Ended
The Company - Additional Information (Details)	Dec. 31, 2019 segment
Segment Reporting Information [Line Items]
Number of countries in which company operates (more than)	100
Number of reportable segments	2
Golf Equipment \| Operating Segments
Segment Reporting Information [Line Items]
Percent of sales by operating segment	58.00%
Apparel, Gear and Other \| Operating Segments
Segment Reporting Information [Line Items]
Percent of sales by operating segment	42.00%

Summary of Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2019 USD ($) segment	Dec. 31, 2018 USD ($) segment	Dec. 31, 2017 USD ($)	Jan. 04, 2019 USD ($)	Jan. 01, 2019 USD ($)
Significant Accounting Policies [Line Items]
Standard product warranty term	2 years
ROU assets, net	$ 160,098,000	$ 0
Operating lease liability	164,114,000
Advertising expenses	93,331,000	72,164,000	$ 62,898,000
Research and development expenses	50,579,000	40,752,000	36,568,000
Foreign Currency Transaction Gain (Loss), net	(5,838,000)	(2,824,000)	808,000
Retained earnings	$ 489,382,000	$ 413,799,000
Number of operating segments \| segment	2	3
Equity adjustment from foreign currency translation	$ (4,751,000)	$ (7,672,000)	14,361,000
Total equity adjustment from activity related to derivative instruments	(4,310,000)	435,000	(1,898,000)
Accumulated Other Comprehensive Income (Loss)
Significant Accounting Policies [Line Items]
Equity adjustment from foreign currency translation	(4,412,000)	(7,969,000)	14,198,000
Total equity adjustment from activity related to derivative instruments	$ (4,310,000)	$ 435,000	$ (1,898,000)
Accounting Standards Update 2016-02
Significant Accounting Policies [Line Items]
ROU assets, net					$ 133,632,000
Operating lease liability					136,290,000
Jack Wolfskin
Significant Accounting Policies [Line Items]
ROU assets, net				$ 120,865,000
Operating lease liability				$ 120,524,000
Jack Wolfskin \| Accounting Standards Update 2016-02
Significant Accounting Policies [Line Items]
Operating lease liability					$ 81,424,000

Summary of Significant Accounting Policies - Reconciliation of Reserve for Warranty Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Beginning balance	$ 7,610	$ 6,657
Provision	8,311	9,437	$ 9,434
Standard Product Warranty Accrual, Period Increase (Decrease)	2,208	0	0
Claims paid/costs incurred	(8,493)	(8,484)	(8,172)
Ending balance	$ 9,636	$ 7,610	$ 6,657

Summary of Significant Accounting Policies - Reconciliation of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning balance	$ 5,610	$ 4,447	$ 5,728
Provision for credit losses	1,107	2,257	2,335
Write-off of uncollectible amounts, net of recoveries	(725)	(1,094)	(3,616)
Ending Balance	$ 5,992	$ 5,610	$ 4,447

Summary of Significant Accounting Policies - Estimated Useful Lives (Detail)	12 Months Ended
	Dec. 31, 2019
Buildings and improvements \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Buildings and improvements \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	30 years
Machinery and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Machinery and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Furniture, computers and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Furniture, computers and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Production molds \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	2 years
Production molds \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years

Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2019 USD ($)
Accounting Policies [Abstract]
Goodwill and intangible asset impairment	$ 0

Summary of Significant Accounting Policies - Share-based Compensation (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2015
Performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares awarded as a percentage of granted		200.00%
Performance Share Units with Total Shareholder Return Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost recognition period	3 years
Minimum \| Performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares awarded as a percentage of granted	0.00%
Vesting period	3 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost recognition period	5 years
Maximum \| Performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares awarded as a percentage of granted	200.00%
Vesting period	5 years

Summary of Significant Accounting Policies - Other Income (Expense) Net (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Foreign currency forward contract gain (loss), net	$ 6,947,000	$ 10,085,000	$ (7,688,000)
Foreign currency transaction gain (loss), net	(5,838,000)	(2,824,000)	808,000
Other	485,000	518,000	9,000
Other income (expense), net	$ 1,594,000	$ 7,779,000	$ (6,871,000)

Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation adjustments	$ (4,751,000)	$ (7,672,000)	$ 14,361,000
Foreign currency transaction gain (loss), net	(5,838,000)	(2,824,000)	808,000
Foreign currency translation adjustments	(4,412,000)	(7,969,000)	594,000
Net Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) (Effective Portion)	2,811,000	389,000	(2,679,000)
Income tax expense on derivative instruments	1,275,000	282,000	594,000
Less: Comprehensive income attributable to non-controlling interest	339,000	(297,000)	(163,000)
Accumulated other comprehensive loss	(22,422,000)	(13,700,000)	(6,166,000)	$ (18,466,000)
Change in fair value of derivative instruments, net of tax	(4,310,000)	435,000	(1,898,000)
Foreign Exchange Forward \| Cost of Goods Sold
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income to cost of goods sold	(1,165,000)	(236,000)	187,000
Foreign Exchange Forward \| Other income (expense)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income to cost of goods sold	(2,756,000)
Foreign Exchange Forward \| Sales Revenue, Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income to cost of goods sold			14,198,000
Foreign Exchange Forward \| Interest Expense
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income to cost of goods sold	(4,475,000)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation adjustments	(4,412,000)	(7,969,000)	14,198,000
Change in fair value of derivative instruments, net of tax	(4,310,000)	435,000	(1,898,000)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	107,000	(328,000)	1,570,000
Foreign currency translation adjustments	0	0	594,000
Net Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) (Effective Portion)	2,811,000	389,000	(2,679,000)
Income tax expense on derivative instruments	1,275,000	282,000
Ending balance	(4,203,000)	107,000	(328,000)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] \| Foreign Exchange Forward \| Cost of Goods Sold
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income to cost of goods sold	(1,165,000)	(236,000)	187,000
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] \| Foreign Exchange Forward \| Other income (expense)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income to cost of goods sold	(2,756,000)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] \| Foreign Exchange Forward \| Sales Revenue, Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income to cost of goods sold			0
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] \| Foreign Exchange Forward \| Interest Expense
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income to cost of goods sold	(4,475,000)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(13,807,000)	(5,838,000)	(20,036,000)
Foreign currency translation adjustments	(4,412,000)	(7,969,000)	0
Net Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) (Effective Portion)	0	0	0
Income tax expense on derivative instruments	0	0
Ending balance	(18,219,000)	(13,807,000)	(5,838,000)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] \| Foreign Exchange Forward \| Cost of Goods Sold
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income to cost of goods sold	0	$ 0	0
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] \| Foreign Exchange Forward \| Other income (expense)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income to cost of goods sold	0
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] \| Foreign Exchange Forward \| Sales Revenue, Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income to cost of goods sold			$ (14,198,000)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] \| Foreign Exchange Forward \| Interest Expense
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive income to cost of goods sold	$ 0

Summary of Significant Accounting Policies - Concentration of Risk (Details) - customer	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Concentration Risk [Line Items]
Percentage of revenues	one customer represented 11% of the Company’s outstanding accounts receivable balance.	one customer represented 12% of the Company’s outstanding accounts receivable balance.
Sales Revenue, Net \| Customer Concentration Risk
Concentration Risk [Line Items]
Threshold used to determine number of major customers	10.00%	10.00%
Sales Revenue, Net \| Customer Concentration Risk \| Regions outside the U.S.
Concentration Risk [Line Items]
Concentration risk percentage	54.00%	43.00%	46.00%
Sales Revenue, Net \| Customer Concentration Risk \| Top Five Customers Worldwide
Concentration Risk [Line Items]
Concentration risk percentage	18.00%	22.00%	21.00%
Accounts Receivable \| Credit Concentration Risk
Concentration Risk [Line Items]
Threshold used to determine number of major customers	12.00%	9.00%
Accounts Receivable \| Credit Concentration Risk \| Customers With Accounts Receivable Greater Than Nine Percent Of Outstanding Receivables [Member]
Concentration Risk [Line Items]
Number of major customers	1	0
Golf Clubs \| Sales Revenue, Net \| Customer Concentration Risk \| Top Five Customers Worldwide
Concentration Risk [Line Items]
Concentration risk percentage	23.00%	24.00%	22.00%
Gear, Accessories and Other \| Sales Revenue, Net \| Customer Concentration Risk \| Top Five Customers Worldwide
Concentration Risk [Line Items]
Concentration risk percentage	11.00%	19.00%	15.00%

Leases Leases (Details)	12 Months Ended
Leases Leases (Details)	Dec. 31, 2019
Leases [Abstract]
Real estate leases, renewal term	8 years

Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Leases [Abstract]
Real estate leases, renewal term	8 years
Operating leases
ROU assets, net	$ 160,098	$ 0
Lease liabilities, short-term	26,418	0
Lease liabilities, long-term	137,696	$ 0
Finance Leases
ROU assets, net,	1,263
Lease liabilities, short-term	589
Lease liabilities, long-term	$ 558

Leases - Components of Lease Expense (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Leases [Abstract]
Operating lease costs	$ 38,449
Financing lease costs:
Amortization of right-of-use assets	845
Interest on lease liabilities	83
Total financing lease costs	928
Variable lease costs	4,361
Total lease costs	$ 43,738

Leases - Other Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Leases [Abstract]
Operating cash flows - operating leases	$ 38,926
Operating cash flows from finance leases	83
Financing cash flows from finance leases	706	$ 0	$ 0
Lease liabilities arising from new ROU assets, Operating leases	18,026
Lease liabilities arising from new ROU assets, Finance leases	$ 308
Weighted Average remaining lease term, Operating leases	10 years 4 months 24 days
Weighted Average remaining lease term, Finance leases	2 years 9 months 18 days
Weighted Average Discount Rate, Operating leases	5.70%
Weighted Average Discount Rate, Finance leases	4.20%

Leases - Future Minimum Lease Obligations (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Operating Lease Liabilities, Payments Due [Abstract]
2020	$ 34,573
2021	29,034
2022	24,786
2023	21,203
2024	17,873
Thereafter	85,483
Total future lease payments	212,952
Less: imputed interest	48,838
Total	164,114
Finance Lease Liabilities, Payments, Due [Abstract]
2020	629
2021	242
2022	201
2023	92
2024	19
Thereafter	22
Total future lease payments	1,205
Less: imputed interest	58
Total	$ 1,147

Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Net sales	$ 311,941	$ 426,217	$ 446,708	$ 516,197	$ 180,678	$ 262,654	$ 396,311	$ 403,191	$ 1,701,063	$ 1,242,834	$ 1,048,736
Golf Equipment
Disaggregation of Revenue [Line Items]
Net sales									979,173	912,947
Apparel, Gear and Other
Disaggregation of Revenue [Line Items]
Net sales									721,890	329,887
Golf Clubs
Disaggregation of Revenue [Line Items]
Net sales									768,310	717,293
Golf Clubs \| Golf Equipment
Disaggregation of Revenue [Line Items]
Net sales									768,310	717,293
Golf Clubs \| Apparel, Gear and Other
Disaggregation of Revenue [Line Items]
Net sales									0	0
Golf Balls
Disaggregation of Revenue [Line Items]
Net sales									210,863	195,654
Golf Balls \| Golf Equipment
Disaggregation of Revenue [Line Items]
Net sales									210,863	195,654
Golf Balls \| Apparel, Gear and Other
Disaggregation of Revenue [Line Items]
Net sales									0	0
Apparel
Disaggregation of Revenue [Line Items]
Net sales									410,712	112,157
Apparel \| Golf Equipment
Disaggregation of Revenue [Line Items]
Net sales									0	0
Apparel \| Apparel, Gear and Other
Disaggregation of Revenue [Line Items]
Net sales									410,712	112,157
Gear, Accessories and Other
Disaggregation of Revenue [Line Items]
Net sales									311,178	217,730
Gear, Accessories and Other \| Golf Equipment
Disaggregation of Revenue [Line Items]
Net sales									0	0
Gear, Accessories and Other \| Apparel, Gear and Other
Disaggregation of Revenue [Line Items]
Net sales									311,178	217,730
Royalty
Disaggregation of Revenue [Line Items]
Net sales									$ 22,455	$ 19,021	$ 18,622

Revenue Recognition Contracts with Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Revenue from gift cards, recognized in period	$ 3,031	$ 1,854
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	24,522	15,470	$ 9,341
Provision for credit losses	95,094	52,088	37,521
Write-off of uncollectible amounts, net of recoveries	(90,573)	(43,036)	(31,392)
Ending balance	29,043	24,522	$ 15,470
Unredeemed Gift Cards
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Deferred Revenue from Gift Cards	$ 2,190	$ 1,096

Business Combinations (Details)	1 Months Ended					3 Months Ended								12 Months Ended
Business Combinations (Details)	Jan. 31, 2019 USD ($)	Jan. 31, 2019 EUR (€)	Dec. 31, 2018 USD ($)	Aug. 31, 2017 USD ($)	Jan. 31, 2017 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jan. 04, 2019 USD ($)	Jan. 04, 2019 EUR (€)	Aug. 17, 2017 USD ($)	Jan. 11, 2017 USD ($)
Business Acquisition [Line Items]
Net sales						$ 311,941,000	$ 426,217,000	$ 446,708,000	$ 516,197,000	$ 180,678,000	$ 262,654,000	$ 396,311,000	$ 403,191,000	$ 1,701,063,000	$ 1,242,834,000	$ 1,048,736,000
Goodwill			$ 55,816,000			203,743,000				55,816,000				203,743,000	55,816,000	56,429,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net														77,079,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Valuation Allowance						8,281,000								8,281,000
Long-term Debt, Gross						466,106,000								466,106,000
Business Acquisition, Transaction Costs			3,661,000							3,661,000					3,661,000	11,264,000
Net Income (Loss) Attributable to Parent						(29,218,000)	31,048,000	$ 28,931,000	$ 48,647,000	(28,499,000)	$ 9,517,000	$ 60,867,000	$ 62,855,000	79,408,000	104,740,000	40,806,000
Aggregate amortization expense on intangible assets														4,866,000	1,066,000	$ 546,000
TravisMathew
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Cash																			$ 663,000
Business Combination, Recognized Identifiable Assets Acquired, Current Assets, Receivables																			9,715,000
Business Combination, Recognized Identifiable Assets Acquired, Inventory																			11,909,000
Business Combination, Recognized Identifiable Assets Acquired, Current Assets, Other																			549,000
Business Combination, Recognized Identifiable Assets Acquired, Property, Plant, and Equipment																			4,327,000
Goodwill																			23,748,000
Business Combination, Recognized Identifiable Assets Acquired, Assets																			135,578,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities																			11,000,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net																			124,578,000
Business Combination, Recognized Identifiable Assets Acquired, Other Noncurrent Assets																			117,000
Business Combination, Consideration Transferred				$ 124,578,000
Business Acquisition, Transaction Costs			2,521,000							2,521,000					2,521,000
OGIO International, Inc.
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Cash																				$ 8,061,000
Business Combination, Recognized Identifiable Assets Acquired, Current Assets, Receivables																				7,696,000
Business Combination, Recognized Identifiable Assets Acquired, Inventory																				7,092,000
Business Combination, Recognized Identifiable Assets Acquired, Current Assets, Other																				328,000
Business Combination, Recognized Identifiable Assets Acquired, Property, Plant, and Equipment																				2,369,000
Goodwill																				5,885,000
Business Combination, Recognized Identifiable Assets Acquired, Assets																				82,781,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities																				16,830,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net																				65,951,000
Business Combination, Consideration Transferred					$ 65,951,000
Business Acquisition, Transaction Costs			3,052,000							3,052,000					3,052,000
OGIO International, Inc. \| General and Administrative Expense [Member]
Business Acquisition [Line Items]
Business Acquisition, Transaction Costs			1,805,000							$ 1,805,000					1,805,000
Jack Wolfskin
Business Acquisition [Line Items]
Net sales														356,195,000
Business Combination, Recognized Identifiable Assets Acquired, Cash																	$ 58,096,000	€ 50,984,000
Business Combination, Recognized Identifiable Assets Acquired, Current Assets, Receivables																	26,637,000
Business Combination, Recognized Identifiable Assets Acquired, Inventory																	94,504,000
Business Combination, Recognized Identifiable Assets Acquired, Current Assets, Other																	11,483,000
Business Combination, Recognized Identifiable Assets Acquired, Property, Plant, and Equipment																	20,930,000
Goodwill						147,781,000	$ 150,180,000							147,781,000			150,180,000
Business Combination, Recognized Identifiable Assets Acquired, Assets																	770,274,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net																	521,201,000
Business Combination, Recognized Identifiable Assets Acquired, Other Noncurrent Assets																	23,000
Business Combination, Consideration Transferred	$ 521,201,000	€ 457,394,000
Business Acquisition, Transaction Costs						$ 9,987,000								9,987,000
Business Combination, Acquisition Related Costs														34,084,000
Net sales														1,701,063,000	1,622,053,000
Net Income (Loss) Attributable to Parent														15,505,000
Foreign Currency Transaction Gain (Loss), Unrealized			3,215,000
Foreign Currency Transaction Gain (Loss), before Tax			$ 4,409,000
Business Combination, Transition Costs														4,728,000
Jack Wolfskin \| General and Administrative Expense [Member]
Business Acquisition [Line Items]
Business Combination, Acquisition Related Costs														6,326,000	$ 3,661,000
Aggregate amortization expense on intangible assets														4,134,000
Business Combination, Transition Costs														3,832,000
Jack Wolfskin \| Cost of Goods, Total [Member]
Business Acquisition [Line Items]
Business Combination, Fair Value Adjustment Of Acquired Inventory														10,928,000
Business Combination, Transition Costs														776,000
Jack Wolfskin \| Selling and Marketing Expense [Member]
Business Acquisition [Line Items]
Business Combination, Transition Costs														$ 120,000
Trade Names [Member] \| TravisMathew
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Indefinite-Lived Intangible Assets																			78,400,000
Trade Names [Member] \| OGIO International, Inc.
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Indefinite-Lived Intangible Assets																				49,700,000
Trade Names [Member] \| Jack Wolfskin
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Indefinite-Lived Intangible Assets																	239,295,000
Customer Lists [Member] \| TravisMathew
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Finite-Lived Intangibles																			4,450,000
Customer Lists [Member] \| OGIO International, Inc.
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Finite-Lived Intangibles																				1,500,000
Customer Lists [Member] \| Jack Wolfskin
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Finite-Lived Intangibles																	$ 38,743,000
Noncompete Agreements [Member] \| TravisMathew
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Finite-Lived Intangibles																			$ 600,000
Noncompete Agreements [Member] \| OGIO International, Inc.
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Finite-Lived Intangibles																				$ 150,000
Measurement Input, Royalty Rate [Member] \| Royalty Savings Income Approach Method [Member] \| TravisMathew
Business Acquisition [Line Items]
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure																			0.080
Measurement Input, Royalty Rate [Member] \| Royalty Savings Income Approach Method [Member] \| OGIO International, Inc.
Business Acquisition [Line Items]
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure																				0.075
Measurement Input, Royalty Rate [Member] \| Royalty Savings Income Approach Method [Member] \| Jack Wolfskin
Business Acquisition [Line Items]
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure																	0.050	0.050
Measurement Input, Discount Rate [Member] \| Royalty Savings Income Approach Method [Member] \| TravisMathew
Business Acquisition [Line Items]
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure																			0.110
Measurement Input, Discount Rate [Member] \| Royalty Savings Income Approach Method [Member] \| OGIO International, Inc.
Business Acquisition [Line Items]
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure																				0.140
Measurement Input, Discount Rate [Member] \| Royalty Savings Income Approach Method [Member] \| Jack Wolfskin
Business Acquisition [Line Items]
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure																	0.100	0.100
Term Loan B Facility [Member] \| Secured Debt
Business Acquisition [Line Items]
Long-term Debt, Gross	$ 480,000,000

- Details

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Business Combinations - Assets Acquired and Liabilities Assumed (Details) € in Thousands	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jan. 04, 2019 USD ($)	Jan. 04, 2019 EUR (€)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Aug. 17, 2017 USD ($)	Jan. 11, 2017 USD ($)
Business Acquisition [Line Items]
Operating Lease, Right-of-Use Asset	$ 160,098,000				$ 0
Goodwill	203,743,000				$ 55,816,000	$ 56,429,000
Operating lease liability	164,114,000
OGIO International, Inc.
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Cash								$ 8,061,000
Business Combination, Recognized Identifiable Assets Acquired, Current Assets, Receivables								7,696,000
Business Combination, Recognized Identifiable Assets Acquired, Inventory								7,092,000
Business Combination, Recognized Identifiable Assets Acquired, Current Assets, Other								328,000
Business Combination, Recognized Identifiable Assets Acquired, Property, Plant, and Equipment								2,369,000
Goodwill								5,885,000
Business Combination, Recognized Identifiable Assets Acquired, Assets								82,781,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net								65,951,000
TravisMathew
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Cash							$ 663,000
Business Combination, Recognized Identifiable Assets Acquired, Current Assets, Receivables							9,715,000
Business Combination, Recognized Identifiable Assets Acquired, Inventory							11,909,000
Business Combination, Recognized Identifiable Assets Acquired, Current Assets, Other							549,000
Business Combination, Recognized Identifiable Assets Acquired, Property, Plant, and Equipment							4,327,000
Business Combination, Recognized Identifiable Assets Acquired, Other Noncurrent Assets							117,000
Goodwill							23,748,000
Business Combination, Recognized Identifiable Assets Acquired, Assets							135,578,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net							124,578,000
Jack Wolfskin
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Cash			$ 58,096,000	€ 50,984
Business Combination, Recognized Identifiable Assets Acquired, Current Assets, Receivables			26,637,000
Business Combination, Recognized Identifiable Assets Acquired, Inventory			94,504,000
Business Combination, Recognized Identifiable Assets Acquired, Income Tax Receivables			6,588,000
Business Combination, Recognized Identifiable Assets Acquired, Current Assets, Other			11,483,000
Business Combination, Recognized Identifiable Assets Acquired, Property, Plant, and Equipment			20,930,000
Operating Lease, Right-of-Use Asset			120,865,000
Business Combination, Recognized Identifiable Assets Acquired, Deferred Tax Assets Noncurrent			2,930,000
Business Combination, Recognized Identifiable Assets Acquired, Other Noncurrent Assets			23,000
Goodwill	$ 147,781,000	$ 150,180,000	150,180,000
Business Combination, Recognized Identifiable Assets Acquired, Assets			770,274,000
Business Combination, Liabilities Assumed, Accounts Payable and Accrued Liabilities			46,124,000
Business Combination, Liabilities Assumed, Income Taxes Payable			2,416,000
Operating lease liability			120,524,000
Business Combination, Liabilities Assumed, Deferred Tax Liabilities Noncurrent			80,009,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net			521,201,000
Trade Names [Member] \| OGIO International, Inc.
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Indefinite-Lived Intangible Assets								49,700,000
Trade Names [Member] \| TravisMathew
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Indefinite-Lived Intangible Assets							78,400,000
Trade Names [Member] \| Jack Wolfskin
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Indefinite-Lived Intangible Assets			239,295,000
Licensing Agreements [Member] \| TravisMathew
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Finite-Lived Intangibles							1,100,000
Customer Lists [Member] \| OGIO International, Inc.
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Finite-Lived Intangibles								1,500,000
Customer Lists [Member] \| TravisMathew
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Finite-Lived Intangibles							4,450,000
Customer Lists [Member] \| Jack Wolfskin
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Finite-Lived Intangibles			$ 38,743,000
Noncompete Agreements [Member] \| OGIO International, Inc.
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Finite-Lived Intangibles								$ 150,000
Noncompete Agreements [Member] \| TravisMathew
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Finite-Lived Intangibles							$ 600,000

- Details

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Namespace Prefix:
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Period Type:

Business Combinations - Pro Forma Information (Details) - Jack Wolfskin - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Net sales	$ 1,701,063	$ 1,622,053
Net income attributable to Callaway Golf Company	$ 96,770	$ 63,983

Financing Arrangements - Additional Information (Detail)	1 Months Ended	12 Months Ended
	Jan. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2019 JPY (¥)	Dec. 31, 2016 USD ($)
Debt Instrument [Line Items]
Asset-based credit facilities		$ 144,580,000	$ 40,300,000
Cash and cash equivalents		106,666,000	63,981,000	$ 85,674,000		$ 125,975,000
Available liquidity		303,300,000	270,588,000
Asset-based credit facility, maximum borrowing capacity		400,000,000
Current portion of long-term debt		7,317,000	2,411,000
Long-Term Debt, excluding current portion		443,259,000	7,218,000
Long-term Debt, Gross		466,106,000
Interest income		807,000	594,000	$ 454,000
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months		9,653,000
Long-term Debt, Maturities, Repayments of Principal in Year Two		9,825,000
Long-term Debt, Maturities, Repayments of Principal in Year Three		10,003,000
Long-term Debt, Maturities, Repayments of Principal in Year Four		7,545,000
Long-term Debt, Maturities, Repayments Of Principal In Year Five		6,680,000
Long-term Debt, Maturities, Repayments Of Principal In Year Six		422,400,000
Bank of America, N.A.
Debt Instrument [Line Items]
Asset-based credit facilities		114,480,000
Amount outstanding under letters of credit		1,075,000
Average outstanding borrowing		134,842,000
Average available liquidity		$ 170,217,000
Asset-based credit facility, maturity date		May 31, 2024
Period fixed charge cover ratio must be in compliance if borrowing base falls below threshold		30 days
Fixed Charge Coverage Ratio Covenant Reference Borrowing Capacity, Percent		10.00%
Debt instrument fixed charge coverage		$ 40,000,000
Asset-based credit facility, interest rate		4.60%			4.60%
Asset-based credit facility, monthly fees		0.25%
Asset-based credit facility, origination fees		$ 3,299,000
Unamortized origination fees		2,115,000	1,825,000
Asset-based credit facility, origination fees included in other current assets		746,000	476,000
Asset-based credit facility, origination fees included in other long-term assets		$ 1,369,000	1,349,000
The Bank Of Tokyo-Mitsubishi UFG Ltd
Debt Instrument [Line Items]
Debt instrument term		3 years
United States
Debt Instrument [Line Items]
Asset-based credit facility, maximum borrowing capacity		$ 260,000,000
Germany
Debt Instrument [Line Items]
Asset-based credit facility, maximum borrowing capacity		70,000,000
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 Credit Facility 1 \| The Bank Of Tokyo-Mitsubishi UFG Ltd \| Tokyo Interbank Offered Rate (TIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate on debt		0.80%
Japan Credit Facility 1 \| The Bank Of Tokyo-Mitsubishi UFJ
Debt Instrument [Line Items]
Asset-based credit facilities		$ 30,100,000			¥ 3,270,000,000
Asset-based credit facility, maximum borrowing capacity		$ 36,820,000			¥ 4,000,000,000
Asset-based credit facility, interest rate		0.87%			0.87%
Japan Credit Facility 2 \| The Bank Of Tokyo-Mitsubishi UFG Ltd
Debt Instrument [Line Items]
Asset-based credit facilities		$ 18,410,000			¥ 0
Asset-based credit facility, maximum borrowing capacity \| ¥					¥ 2,000,000,000
Asset-based credit facility, interest rate		1.07%			1.07%
Japan Credit Facility 2 \| The Bank Of Tokyo-Mitsubishi UFG Ltd \| Tokyo Interbank Offered Rate (TIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate on debt		1.00%
Maximum \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate on debt	4.60%
Minimum \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate on debt	4.50%
Real Estate
Debt Instrument [Line Items]
Line Of Credit, Maximum Borrowing Capacity, Quarterly Reduction Period		15 years
Intellectual Property
Debt Instrument [Line Items]
Line Of Credit, Maximum Borrowing Capacity, Quarterly Reduction Period		3 years
2017 Equipment Note \| Secured Debt
Debt Instrument [Line Items]
Asset-based credit facility, interest rate		3.79%			3.79%
Long-term debt outstanding		$ 7,357,000	9,628,000
Current portion of long-term debt		2,455,000	2,411,000
Long-Term Debt, excluding current portion		4,902,000	$ 7,218,000
Interest Expense, Debt		$ 325,000
Amortization Of Debt, Period		5 years
2019 Equipment Note \| Secured Debt
Debt Instrument [Line Items]
Asset-based credit facility, interest rate		3.21%			3.21%
Long-term debt outstanding		$ 12,358,000
Current portion of long-term debt		2,652,000
Long-Term Debt, excluding current portion		9,706,000
Interest Expense, Debt		$ 138,000
Amortization Of Debt, Period		5 years
Term Loan Facility \| Secured Debt
Debt Instrument [Line Items]
Long-term debt outstanding		$ 446,400,000
Current portion of long-term debt		4,800,000
Long-Term Debt, excluding current portion		441,600,000
Interest Expense, Debt		31,707,000
Long-term Debt, Gross	$ 480,000,000
Debt Issuance Costs, Gross	9,600,000
Long Term Debt, Maximum Additional Loan Commitments, Amounts	$ 225,000,000
Line Of Credit Facility Covenant Terms, First Lien Net Leverage Ratio For Unlimited Commitment	2.25
Debt Issuance Costs, Net		15,539,000
Debt Instrument, Periodic Payment	$ 1,200,000
Interest income		$ 5,027,000
Term Loan Facility \| Secured Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate on debt		4.50%
Term Loan Facility, Short-Term Portion \| Secured Debt
Debt Instrument [Line Items]
Debt Issuance Costs, Net		$ 2,590,000
Term Loan Facility, Long-Term Portion \| Secured Debt
Debt Instrument [Line Items]
Debt Issuance Costs, Net		$ 12,949,000
Interest Rate Swap
Debt Instrument [Line Items]
Long-term Debt, Gross	200,357,000
Currency Swap
Debt Instrument [Line Items]
Hedging Liabilities, Noncurrent	$ 176,200,000

Earnings per Common Share - Additional Information (Detail) - $ / shares	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share Disclosure [Line Items]
Dilutive earnings (loss) per common share (in dollars per share)	$ (0.31)	$ 0.32	$ 0.30	$ 0.50	$ (0.30)	$ 0.10	$ 0.63	$ 0.65	$ 0.82	$ 1.08	$ 0.42
Stock Options
Earnings Per Share Disclosure [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)									0	0	129,000

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

Earnings per Common Share - Computation of Basic and Diluted Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Equity [Abstract]
Net income attributable to Callaway Golf Company	$ (29,218)	$ 31,048	$ 28,931	$ 48,647	$ (28,499)	$ 9,517	$ 60,867	$ 62,855	$ 79,408	$ 104,740	$ 40,806
Weighted-average common shares outstanding—basic (in shares)									94,251	94,579	94,329
Basic earnings per common share (in dollars per share)	$ (0.31)	$ 0.33	$ 0.31	$ 0.51	$ (0.30)	$ 0.10	$ 0.65	$ 0.66	$ 0.84	$ 1.11	$ 0.43
Options and restricted stock (in shares)									2,036	2,574	2,248
Weighted-average common shares outstanding—diluted (in shares)									96,287	97,153	96,577
Dilutive earnings (loss) per common share (in dollars per share)	$ (0.31)	$ 0.32	$ 0.30	$ 0.50	$ (0.30)	$ 0.10	$ 0.63	$ 0.65	$ 0.82	$ 1.08	$ 0.42

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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-Name Accounting Standards Codification
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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Jan. 04, 2019
Business Acquisition [Line Items]
Goodwill	$ 203,743,000	$ 55,816,000	$ 56,429,000
Goodwill, Period Increase (Decrease)	147,927,000
Decrease in goodwill offset amount due to foreign currency fluctuations	(146,000)
Aggregate amortization expense on intangible assets	4,866,000	$ 1,066,000	$ 546,000
Jack Wolfskin
Business Acquisition [Line Items]
Goodwill	$ 147,781,000			$ 150,180,000	$ 150,180,000

Goodwill and Intangible Assets - Intangible Assets by Major Asset Class (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Intangible Assets by Major Class [Line Items]
Gross	$ 539,322	$ 265,725
Accumulated amortization	45,899	41,033
Net book value	493,423	224,692
Trade name, trademark and trade dress and other
Intangible Assets by Major Class [Line Items]
Gross	453,837	218,364
Net book value	453,837	218,364
Patents
Intangible Assets by Major Class [Line Items]
Gross	31,581	31,581
Accumulated amortization	31,581	31,543
Net book value	$ 0	38
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	$ 53,904	15,780
Accumulated amortization	14,318	9,490
Net book value	$ 39,586	$ 6,290
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	Dec. 31, 2019 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2018	$ 4,780
2019	4,724
2020	4,548
2021	4,409
2022	4,409
Thereafter	16,716
Total	$ 39,586

Investments - Additional Information (Detail) - USD ($)	12 Months Ended
Investments - Additional Information (Detail) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Investments, All Other Investments [Abstract]
Percentage of ownership interest in TopGolf International, Inc.	14.00%
Equity Securities without Readily Determinable Fair Value, Amount	$ 90,134,000	$ 72,238,000
Payments to Acquire Investments	$ 17,897,000	$ 1,743,000	$ 21,499,000

Joint Venture - Additional Information (Detail) ¥ in Billions	3 Months Ended								12 Months Ended
	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 JPY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jul. 01, 2016 USD ($)
Noncontrolling Interest [Line Items]
Payments to Acquire Interest in Joint Venture									$ 18,538,000		$ 0	$ 0
Net income attributable to noncontrolling interests	$ 0	$ 0	$ (33,000)	$ (146,000)	$ 348,000	$ 223,000	$ 67,000	$ (124,000)	(179,000)		514,000	861,000
Distributions to non-controlling interest									0		821,000	$ 974,000
Stockholders' equity attributable to noncontrolling interest	$ 0				$ 9,734,000				0		$ 9,734,000
Callaway Apparel K.K.
Noncontrolling Interest [Line Items]
Payments to Acquire Interest in Joint Venture									$ 18,538,000	¥ 2
Callaway Golf Company
Noncontrolling Interest [Line Items]
Noncontrolling interest in joint ventures													$ 10,556,000
TSI Groove & Sports Co, Ltd.
Noncontrolling Interest [Line Items]
Noncontrolling interest in joint ventures													$ 9,744,000
Callaway Apparel K.K.
Noncontrolling Interest [Line Items]
Ownership percentage by parent													52.00%
Ownership percentage by noncontrolling owners													48.00%

Selected Financial Statement Information - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounts receivable, net:
Trade accounts receivable	$ 203,078	$ 108,547
Allowance for sales returns	(29,043)	(24,522)	$ (15,470)	$ (9,341)
Accrued variable consideration for sales program incentives	(20,336)	(7,041)
Allowance for doubtful accounts	(13,244)	(5,610)	$ (4,447)	$ (5,728)
Accounts receivable, net	140,455	71,374
Inventories:
Raw materials	76,140	80,474
Work-in-process	860	815
Finished goods	379,639	256,768
Inventory	456,639	338,057
Property, plant and equipment, net:
Land	7,229	7,232
Buildings and improvements	80,856	75,070
Machinery and equipment	129,680	111,055
Furniture, computers and equipment	134,719	111,793
Production molds	5,820	4,804
Construction-in-process	37,244	17,026
Property, plant and equipment, gross	395,548	326,980
Accumulated depreciation	(262,788)	(238,508)
Property, plant and equipment, net	132,760	88,472
Accounts payable and accrued expenses:
Accounts payable	67,843	42,468
Accrued expenses	196,308	127,135
Accrued goods in-transit	12,149	39,050
Accounts payable and accrued expenses	276,300	208,653
Accrued employee compensation and benefits:
Accrued payroll and taxes	34,303	31,559
Accrued vacation and sick pay	11,574	10,606
Accrued commissions	1,014	1,007
Accrued employee compensation and benefits	$ 46,891	$ 43,172

Income Taxes - Income (Loss) Before Income Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
United States	$ 55,352	$ 100,031	$ 50,706
Foreign	40,417	31,241	17,349
Income before income taxes	$ 95,769	$ 131,272	$ 68,055

Income Taxes - Expense (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current tax provision:
Federal	$ 1,022	$ 736	$ 610
State	1,403	1,880	1,259
Foreign	9,933	6,577	6,135
Current tax provision (benefit)	12,358	9,193	8,004
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]
Federal	10,185	14,844	20,746
State	335	1,086	(1,127)
Foreign	(6,338)	895	(1,235)
Deferred tax expense (benefit)	4,182	16,825	18,384
Income tax provision	$ 16,540	$ 26,018	$ 26,388

Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 04, 2019	Dec. 31, 2018
Deferred tax assets:
Reserves and allowances not currently deductible for tax purposes	$ 22,926		$ 13,495
Basis difference related to fixed assets	8,381		5,342
Compensation and benefits	7,580		8,416
Basis difference for inventory valuation	849		1,784
Compensatory stock options and rights	3,404		3,988
Operating loss carryforwards	9,080		7,191
Tax credit carryforwards	55,001		54,219
Deferred Tax Asset, Lease Liability	44,768		0
Interest expense carryforward	5,057		0
Basis difference related to intangible assets with a definite life	354		12,767
Other	2,790		5,798
Total deferred tax assets	160,190		113,000
Valuation allowance for deferred tax assets	(14,469)		(13,408)
Deferred tax assets, net of valuation allowance	145,721		99,592
Deferred tax liabilities:
Prepaid expenses	(1,685)		(1,181)
Basis difference related to intangible assets with an indefinite life	(99,712)		(25,128)
Deferred Tax Liabilities, Leasing Arrangements	(43,859)		0
Total deferred tax liabilities	(145,256)		(26,309)
Net deferred tax assets	465		73,283
Net deferred tax assets are shown on the accompanying consolidated balance sheets as follows:
Non-current deferred tax assets	73,948		75,079
Non-current deferred tax liabilities	$ (73,483)		$ (1,796)
Jack Wolfskin
Schedule Of Income Tax [Line Items]
Deferred Tax Liabilities, Intangible Assets		$ 88,462
Deferred tax assets:
Other		$ 11,384

Income Taxes - Additional Information (Detail) € in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jan. 04, 2019 USD ($)	Jan. 04, 2019 EUR (€)	Dec. 31, 2016 USD ($)
Schedule Of Income Tax [Line Items]
Change in net deferred taxes	$ (72,818,000)
Deferred tax assets, valuation allowance	$ 14,469,000	$ 13,408,000
Tax credit carryforward beginning expiration year	Dec. 31, 2020
Liability for income taxes associated with uncertain tax positions	$ 25,993,000	11,832,000	$ 9,300,000			$ 8,256,000
Tax benefits associated with potential transfer pricing adjustments	1,339,000
Tax benefits associated with state income taxes and other timing adjustments	13,795,000
Net amount of unrecognized tax benefit related to uncertain tax positions that would impact, if recognized, effective income tax rate	10,859,000
Interest and penalties related to income tax matters	9,000	42,000	$ 301,000
Income tax accrued for payment of interest and penalties	1,669,000	$ 1,660,000
Undistributed earnings	167,933,000
Tax Cuts And Jobs Act of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense (Benefit)	521,201,000
Accrued impact for jurisdictions not permanently reinvested	1,400,000
U.S. federal
Schedule Of Income Tax [Line Items]
Tax credit carryforwards	47,378,000
California (U.S.)
Schedule Of Income Tax [Line Items]
Tax credit carryforwards	20,088,000
U.S. Foreign Tax Credit \| U.S. federal
Schedule Of Income Tax [Line Items]
Tax credit carryforwards	$ 28,599,000
Jack Wolfskin
Schedule Of Income Tax [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Cash				$ 58,096,000	€ 50,984

Income Taxes - Expiry Dates of Federal and State Income Tax Credit Carryforwards (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
U.S. federal
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	$ 47,378
U.S. federal \| U.S. Foreign Tax Credit
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	$ 28,599
U.S. federal \| U.S. Foreign Tax Credit \| Minimum
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, expiration year	2021
U.S. federal \| U.S. Foreign Tax Credit \| Maximum
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, expiration year	2026
U.S. federal \| U.S. research tax credit
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	$ 18,758
U.S. federal \| U.S. research tax credit \| Minimum
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, expiration year	2031
U.S. federal \| U.S. research tax credit \| Maximum
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, expiration year	2036
U.S. federal \| U.S. business tax credits
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	$ 21
U.S. federal \| U.S. business tax credits \| Minimum
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, expiration year	2031
U.S. federal \| U.S. business tax credits \| Maximum
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, expiration year	2036
California (U.S.)
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	$ 20,088
California (U.S.) \| State investment tax credits
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	1,148
California (U.S.) \| State research tax credits
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	$ 18,940

Income Taxes - Net Operating Losses Carryforwards Expire (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Operating Loss Carryforwards [Line Items]
U.S. loss carryforwards	$ 0
State loss carryforwards	$ 101,205
U.S. federal \| Minimum
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards, expiration year	2032
U.S. federal \| Maximum
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards, expiration year	2035
California (U.S.) \| Minimum
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards, expiration year	2017
California (U.S.) \| Maximum
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards, expiration year	2036

Income Taxes - Reconciliation of Effective Tax Rate on Income or Loss and Statutory Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Statutory U.S. tax rate	21.00%	21.00%	35.00%
State income taxes, net of U.S. tax benefit	1.60%	1.80%	1.80%
Foreign income taxed at other than U.S. statutory rate	(5.00%)	1.10%	(0.60%)
Federal tax credits	(3.50%)	(4.40%)	(2.70%)
Other non-deductible expense	1.20%	0.70%	1.10%
Non-deductible compensation	1.50%	0.80%	0.70%
Stock option compensation excess tax benefits	(1.50%)	(1.00%)	(2.00%)
Intra-entity asset transfers	0.00%	0.80%	(6.30%)
Effective Income Tax Rate Reconciliation, Domestic Foreign Tax Inclusions, Percent	0.10%	1.10%	1.60%
Foreign derived intangible income deduction	(3.20%)	(2.70%)	0.00%
Effective Income Tax Rate Reconciliation, Impact Of Uncertain Tax Positions, Percent	3.70%	0.80%	1.80%
Enactment of the Tax Cuts and Jobs Act	0.00%	0.30%	11.10%
Change in deferred tax valuation allowance	0.20%	0.00%	(2.00%)
Other	1.20%	(0.50%)	(0.70%)
Effective tax rate	17.30%	19.80%	38.80%

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at January 1	$ 11,832	$ 9,300	$ 8,256
Additions based on tax positions related to the current year	3,224	1,354	1,061
Additions for tax positions of prior years	593	1,624	233
Reductions for tax positions of prior years	(174)	(148)	(192)
Settlement of tax audits	(7)	0	(33)
Unrecognized Tax Benefits, Increase Resulting from Acquisition	11,006	0	0
Reductions due to lapsed statute of limitations	(481)	(298)	(25)
Balance at December 31	$ 25,993	$ 11,832	$ 9,300

Income Taxes - Major Jurisdictions no Longer Subject to Income Tax Examinations by Tax Authorities (Detail)	12 Months Ended
	Dec. 31, 2019
U.S. federal
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2010 and prior
California (U.S.)
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2008 and prior
Germany
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2013 and prior
Japan
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2012 and prior
South Korea
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2013 and prior
United Kingdom
Income Tax Examination [Line Items]
Years No Longer Subject to Audit	2015 and prior

Commitments & Contingencies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2019 USD ($)
Long-term Purchase Commitment [Line Items]
Unconditional purchase obligations over next six years	$ 72,906,000
Minimum
Long-term Purchase Commitment [Line Items]
Unconditional purchase obligations	1 year
Maximum
Long-term Purchase Commitment [Line Items]
Unconditional purchase obligations	4 years

Commitments & Contingencies - Future Purchase Commitments (Detail)	Dec. 31, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2020	$ 39,492,000
2021	18,668,000
2022	11,415,000
2023	3,331,000
2024	0
Unconditional purchase obligations over next six years	$ 72,906,000

Capital Stock - Additional Information (Detail)	12 Months Ended
Capital Stock - Additional Information (Detail)	Dec. 31, 2019 USD ($) Vote $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) shares	Aug. 30, 2019 USD ($)	May 08, 2018 USD ($)
Components Of Common Stock [Line Items]
Authorized capital, shares (in shares) \| shares	243,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.01	$ 0.01
Common stock, shares authorized (in shares) \| shares	240,000,000	240,000,000
Preferred stock, shares authorized (in shares) \| shares	3,000,000	3,000,000
Common stock, voting rights description	The holders of common stock are entitled to one vote for each share of common stock on all matters submitted to a vote of the Company’s shareholders.
Common stock, votes per share \| Vote	1
Stock repurchase program, authorized amount				$ 100,000,000	$ 50,000,000
Stock Repurchased During Period, Value	$ 27,394,000
Stock repurchased, average cost per share (in dollars per share) \| $ / shares	$ 16.62
Acquisition of treasury stock	$ 28,073,000	$ 22,456,000	$ 16,617,000
Shares Paid for Tax Withholding for Share Based Compensation, Value	8,049,000
Amount remaining under repurchase authorization	$ 99,322,000
Treasury Stock
Components Of Common Stock [Line Items]
Acquisition of treasury stock (in shares) \| shares	1,690,000	1,412,000	1,536,000
Acquisition of treasury stock	$ 28,073,000	$ 22,456,000	$ 16,617,000
Seriesa Junior Participating Preferred
Components Of Common Stock [Line Items]
Preferred stock, shares authorized (in shares) \| shares	240,000
Preferred stock, voting rights description	each share of Series A Junior Participating Preferred Stock would entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the shareholders of the Company
Preferred stock, votes per share \| Vote	1,000

Share-Based Employee Compensation - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2019 USD ($) plan $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of plans \| plan	2
Authorized (in shares) \| shares	34,000,000
Compensation expense related to stock options	$ 0	$ 14,000	$ 34,000
Share based compensation, weighted average estimated forfeiture rate		1.70%	1.70%
Number of shares granted (in shares) \| shares	0	0	0
Total intrinsic value for options exercised	$ 792,000	$ 2,621,000	$ 3,546,000
Exercise of stock options	368,000	1,636,000	5,362,000
Compensation expense related to restricted stock	6,098,000	5,949,000	5,537,000
Stock compensation - expensed (reversed)	$ 12,896,000	$ 13,530,000	$ 12,615,000
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accrued incremental dividend equivalent rights (in shares) \| shares	4,000
Total unrecognized compensation expense related to non-vested shares granted	$ 9,674,000
Unrecognized compensation expense expected recognition period	1 year 9 months 18 days
Weighted average grant date fair value per share of PSUs granted (in dollars per unit) \| $ / shares	$ 15.63	$ 15.30	$ 9.36
Number of units granted (in units) \| shares	479,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Expiration period	10 years
Total unrecognized compensation expense related to non-vested shares granted	$ 0
Performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense related to non-vested shares granted	$ 8,483,000
Unrecognized compensation expense expected recognition period	1 year 3 months 18 days
Weighted average grant date fair value per share of PSUs granted (in dollars per unit) \| $ / shares	$ 15.17	$ 14.80	$ 10.68
Award requisite service period	3 years		1 year
Shares awarded as a percentage of granted				200.00%
Number of units granted (in units) \| shares	226,000	307,000	462,000
Stock compensation - expensed (reversed)	$ 6,796,000	$ 7,567,000	$ 7,075,000
Performance Share Units with Total Shareholder Return Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation - expensed (reversed)			$ (32,000)
Minimum \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Minimum \| Performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Award requisite service period	1 year
Shares awarded as a percentage of granted	0.00%
Maximum \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Maximum \| Performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
Award requisite service period	3 years
Shares awarded as a percentage of granted	200.00%
2004 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares per employee \| shares	2,000,000
2004 Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized (in shares) \| shares	33,000,000
2013 Directors Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares per employee \| shares	50,000
2013 Directors Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized (in shares) \| shares	1,000,000

Share-Based Employee Compensation - Shares Authorized, Available for Future Grant and Outstanding Under Each Plans (Detail)	Dec. 31, 2019 shares
Equity Incentive Plan [Line Items]
Authorized (in shares)	34,000,000
Available (in shares)	9,643,000
Outstanding (in shares)	2,727,000
2004 Plan
Equity Incentive Plan [Line Items]
Authorized (in shares)	33,000,000
Available (in shares)	9,003,000
Outstanding (in shares)	2,671,000
2013 Directors Plan
Equity Incentive Plan [Line Items]
Authorized (in shares)	1,000,000
Available (in shares)	640,000
Outstanding (in shares)	56,000

Share-Based Employee Compensation - Stock Option Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Number of Shares
Number of Shares, Options outstanding, beginning balance	691,000
Number of Shares, Granted	0	0	0
Number of shares, Exercised	(56,000)
Number of Shares, Forfeited	0
Number of Shares, Expired	0
Number of Shares, Options outstanding, ending balance	635,000	691,000
Number of Shares, Vested and expected to vest at end of period	635,000
Number of Shares, Options exercisable at end of period	635,000
Weighted-Average Exercise Price Per Share
Weighted Average Exercise Price, Options outstanding, beginning balance (in dollars per share)	$ 6.54
Weighted Average Exercise Price, Granted (in dollars per share)	0
Weighted Average Exercise Price, Exercised (in dollars per share)	6.60
Weighted Average Exercise Price, Forfeited (in dollars per share)	0
Weighted Average Exercise Price, Expired (in dollars per share)	0
Weighted Average Exercise Price, Options outstanding, ending balance (in dollars per share)	6.53	$ 6.54
Weighted Average Exercise Price, Vested and expected to vest at end of period (in dollars per share)	6.53
Weighted Average Exercise Price, Options exercisable at end of period (in dollars per share)	$ 6.53
Weighted-Average Remaining Contractual Term
Weighted Average Remaining Life, Options outstanding at end of period	3 years 25 days
Weighted Average Remaining Life, Vested and expected to vest at end of period	3 years 25 days
Weighted Average Remaining Life, Options exercisable at end of period	3 years 25 days
Aggregate Intrinsic Value
Outstanding aggregate intrinsic value	$ 9,313
Vested and expected to vest in the future, aggregate intrinsic value	9,313
Exercisable, aggregate intrinsic value	$ 9,313

Share-Based Employee Compensation - Roll-Forward of Activity for Restricted Stock Units (Detail) - Restricted Stock Units - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Number of Share units
Nonvested number of Units, beginning balance	1,239
Granted, number of units	479
Vested, number of units	(543)
Forfeited, number of units	(139)
Nonvested number of units, ending balance	1,036	1,239
Weighted Average Grant Date Fair Value
Nonvested weighted Average Grant Date Fair Value, beginning balance (in dollars per unit)	$ 12.16
Granted, weighted average grant date fair value (in dollars per unit)	15.63	$ 15.30	$ 9.36
Vested, weighted average grant date fair value (in dollars per units)	11.53
Forfeited, weighted average grant date fair value (in dollars per unit)	12.56
Nonvested weighted Average Grant Date Fair Value, ending balance (in dollars per unit)	$ 14.04	$ 12.16
Accrued incremental dividend equivalent rights (in shares)	4

Share-Based Employee Compensation - Roll-Forward of Activity for Performance Share Units (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Performance shares
Number of Share units
Nonvested number of Units, beginning balance	1,119
Granted, number of units	226	307	462
Target Award Adjustment, number of units	383
Vested, number of units	(774)
Forfeited, number of units	(52)
Nonvested number of units, ending balance	1,051	1,119
Weighted Average Grant Date Fair Value
Nonvested weighted Average Grant Date Fair Value, beginning balance (in dollars per unit)	$ 11.10
Granted, weighted average grant date fair value (in dollars per unit)	15.17	$ 14.80	$ 10.68
Target Award Adjustment, weighted average grant date fair value (in dollars per unit)	8.61
Vested, weighted average grant date fair value (in dollars per units)	8.66
Forfeited, weighted average grant date fair value (in dollars per unit)	15.28
Nonvested weighted Average Grant Date Fair Value, ending balance (in dollars per unit)	$ 13.50	$ 11.10
Award requisite service period	3 years		1 year
Performance Shares, including shares subject to total shareholder return [Member]
Number of Share units
Granted, number of units	375
Weighted Average Grant Date Fair Value
Granted, weighted average grant date fair value (in dollars per unit)	$ 15.88
Minimum \| Performance shares
Weighted Average Grant Date Fair Value
Award requisite service period	1 year
Target award shares percent	50.00%
Maximum \| Performance shares
Weighted Average Grant Date Fair Value
Award requisite service period	3 years
Target award shares percent	80.00%

Share-Based Employee Compensation - Summary of Total Number of SARs Granted (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Schedule of Share based Compensation Arrangements by Share based Payment Award, Performance Options [Line Items]
Allocated Share-based Compensation Expense	$ 12,896,000	$ 13,530,000	$ 12,615,000
Stock Appreciation Rights (SARs)
Schedule of Share based Compensation Arrangements by Share based Payment Award, Performance Options [Line Items]
Allocated Share-based Compensation Expense			$ (32,000)

Share-Based Employee Compensation - Share-Based Compensation Related to Employees and Directors (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Cost of employee share-based compensation included in income (loss), before income tax	$ 12,896	$ 13,530	$ 12,615
Cost of sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Cost of employee share-based compensation included in income (loss), before income tax	961	976	907
Operating expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Cost of employee share-based compensation included in income (loss), before income tax	$ 11,935	$ 12,554	$ 11,708

Employee Benefit Plan - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Maximum employee contribution to defined contribution benefit plans	75.00%
Employer matching contribution, percentage	50.00%
Employer matching contribution, percentage of employees' gross pay	6.00%
Discretionary contributions by employer		$ 0	$ 0
Defined contribution plan employee vesting percentage	100.00%
Defined contribution plan employer vesting percentage	50.00%
Number of years of service required to vest in full	2 years
Employer contribution towards compensation plan	$ 2,719,000	$ 2,340,000	$ 1,927,000

Fair Value of Financial Instruments - Foreign Currency Exchange Contracts Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Foreign Currency Forward Contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts — asset position	$ 61	$ 4,539
Foreign currency forward contracts — liability position	(766)	(236)
Total foreign currency derivative instruments	(3,461)	4,303
Currency Swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset, Current	6,163
Derivative Liability, Current	(25)
Interest Rate Swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Liability, Current	(8,894)
Level 2 \| Foreign Currency Forward Contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts — asset position	61	4,539
Foreign currency forward contracts — liability position	(766)	(236)
Total foreign currency derivative instruments	(3,461)	$ 4,303
Level 2 \| Currency Swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset, Current	6,163
Derivative Liability, Current	(25)
Level 2 \| Interest Rate Swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Liability, Current	$ (8,894)

Fair Value of Financial Instruments - Fair Value Relating to Financial Assets and Liabilities (Detail) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Carrying Value \| ABL Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Lines of credit	$ 114,480,000	$ 40,300,000
Carrying Value \| Japan ABL Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Lines of credit	30,100,000	0
Fair Value \| ABL Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Lines of credit	114,480,000	40,300,000
Fair Value \| Japan ABL Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Lines of credit	30,100,000	0
Bank of America, N.A.
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Standby letters of credit, carrying value	1,075,000
Bank of America, N.A. \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Standby letters of credit, carrying value		1,187,000
Bank of America, N.A. \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Standby letters of credit, carrying value	1,075,000	1,187,000
Secured Debt \| Term Loan Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt outstanding	446,400,000
Secured Debt \| Carrying Value \| Term Loan Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt outstanding	446,400,000	0
Secured Debt \| Carrying Value \| Equipment Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt outstanding	19,715,000	9,629,000
Secured Debt \| Fair Value \| Term Loan Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt outstanding	450,864,000	0
Secured Debt \| Fair Value \| Equipment Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt outstanding	$ 19,715,000	$ 9,629,000

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 (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Other current assets
Derivatives, Fair Value [Line Items]
Foreign currency forward contracts, asset derivatives designated as hedging instruments, fair value	$ 53	$ 54
Foreign currency forward contracts, asset derivatives not designated as hedging instruments, fair value	8	4,485
Accounts payable and accrued expenses
Derivatives, Fair Value [Line Items]
Foreign currency forward contracts, liability derivatives designated as hedging instruments, fair value	24	39
Foreign currency exchange contracts, liability derivatives not designated as hedging instruments, fair value	741	197
Designated as Hedging Instrument \| Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	8,944	39
Designated as Hedging Instrument \| Cash Flow Hedging \| Other current assets
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	6,216	54
Currency Swap \| Designated as Hedging Instrument \| Cash Flow Hedging \| Other current assets
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	6,163	0
Currency Swap \| Designated as Hedging Instrument \| Cash Flow Hedging \| Accounts payable and accrued expenses
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	25	0
Interest Rate Swap \| Designated as Hedging Instrument \| Cash Flow Hedging \| Accounts payable and accrued expenses
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	1,865	0
Interest Rate Swap \| Designated as Hedging Instrument \| Cash Flow Hedging \| Other Noncurrent Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	$ 7,030	$ 0

Derivatives and Hedging - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative [Line Items]
Gain (loss) recognized in other comprehensive income (loss)	$ 2,811,000	$ 389,000	$ (2,679,000)
Forward points expensed on derivatives	767,000
Ineffective gains (losses) recognized	0
Net losses from accumulated other comprehensive income (loss) into net earnings during the next 12 months	661,000
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion			187,000
Interest income	$ 807,000	594,000	454,000
Maximum remaining maturity of foreign currency derivatives	12 months
Foreign Currency Transaction Gain (Loss), net	$ (5,838,000)	(2,824,000)	808,000
Effect of Cash Flow Hedges on Results of Operations [Abstract]
Net Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) (Effective Portion)	2,811,000	389,000	(2,679,000)
Net Gain Recognized in Other Income (Expense) (Ineffective Portion)	0
Designated as Hedging Instrument \| Cash Flow Hedging
Derivative [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	8,396,000	236,000	(187,000)
Currency Swap
Derivative [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	7,783,000
Currency Swap \| Other Income
Derivative [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	2,756,000
Currency Swap \| Designated as Hedging Instrument \| Cash Flow Hedging
Derivative [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax	11,212,000	0	0
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	7,783,000	0	0
Interest Rate Swap \| Other Income
Derivative [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	552,000
Interest Rate Swap \| Designated as Hedging Instrument \| Cash Flow Hedging
Derivative [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax	(9,434,000)	0	0
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	(552,000)	0	0
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net	1,865,000
Foreign Currency Forward Contracts
Derivative [Line Items]
Derivative notional amount		459,600,000	4,821,000
Foreign Currency Forward Contracts \| Designated as Hedging Instrument
Derivative [Line Items]
Derivative notional amount	0
Foreign Exchange Forward \| Cost of Goods Sold
Derivative [Line Items]
Gain reclassified from AOCI into cost of goods	398,000	236,000
Foreign Exchange Forward \| Designated as Hedging Instrument \| Cash Flow Hedging
Derivative [Line Items]
Gain (loss) recognized in other comprehensive income (loss)	1,033,000	389,000	(2,679,000)
Effect of Cash Flow Hedges on Results of Operations [Abstract]
Net Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) (Effective Portion)	1,033,000	389,000	(2,679,000)
Net Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Earnings (Effective Portion)	1,165,000	236,000	(187,000)
Currency and Interest Rate Swap Agreements \| Designated as Hedging Instrument
Derivative [Line Items]
Derivative notional amount	$ 198,353,000
Minimum
Derivative [Line Items]
Maximum length of time, foreign currency cash flow hedge	12 years
Maximum
Derivative [Line Items]
Maximum length of time, foreign currency cash flow hedge	15 years
Short [Member] \| Foreign Currency Forward Contracts
Derivative [Line Items]
Derivative notional amount	$ 72,119,000
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Derivative [Line Items]
Gain (loss) recognized in other comprehensive income (loss)	2,811,000	389,000	(2,679,000)
Effect of Cash Flow Hedges on Results of Operations [Abstract]
Net Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) (Effective Portion)	2,811,000	$ 389,000	$ (2,679,000)
Term Loan Facility \| Secured Debt
Derivative [Line Items]
Interest income	$ 5,027,000

Derivatives and Hedging - Location of Gains and Losses in Consolidated Condensed Statements of Operations that were Recognized and Derivative Contract Type (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Foreign currency exchange contracts, amount of gain (loss) recognized in income on derivatives not designated as hedging instruments	$ 6,947,000	$ 10,085,000	$ (7,688,000)
Foreign Currency Transaction Gain (Loss), net	(5,838,000)	(2,824,000)	808,000
Other income (expense)
Derivative Instruments, Gain (Loss) [Line Items]
Foreign currency exchange contracts, amount of gain (loss) recognized in income on derivatives not designated as hedging instruments	$ 4,176,000	$ 9,705,000	$ (7,958,000)

Segment Information - Information Utilized by Management to Evaluate Operating Segments (Detail)	3 Months Ended								12 Months Ended
	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) segment	Dec. 31, 2018 USD ($) segment	Dec. 31, 2017 USD ($)	Jan. 04, 2019 USD ($)
Segment Reporting [Abstract]
Number of operating segments \| segment									2	3
Segment Reporting Information [Line Items]
Net sales	$ 311,941,000	$ 426,217,000	$ 446,708,000	$ 516,197,000	$ 180,678,000	$ 262,654,000	$ 396,311,000	$ 403,191,000	$ 1,701,063,000	$ 1,242,834,000	$ 1,048,736,000
Income (loss) before income taxes									95,769,000	131,272,000	68,055,000
Identifiable assets	1,960,548,000				1,052,944,000				1,960,548,000	1,052,944,000	991,157,000
Additions to long-lived assets									54,553,000	37,490,000	27,364,000
Goodwill	203,743,000				55,816,000				203,743,000	55,816,000	56,429,000
Depreciation and amortization									34,951,000	19,948,000	17,605,000
Business Acquisition, Transaction Costs					3,661,000					3,661,000	11,264,000
Gain (loss) in foreign currency exchange											(6,880,000)
Net (decrease) increase in cash and cash equivalents									42,685,000	(21,693,000)	(40,301,000)
Goodwill, Period Increase (Decrease)									147,927,000
Increase (Decrease) in Accounts Receivable									44,476,000	2,109,000	(51,618,000)
Payments to Acquire Investments									17,897,000	1,743,000	21,499,000
Golf Equipment
Segment Reporting Information [Line Items]
Net sales									979,173,000	912,947,000
Apparel, Gear and Other
Segment Reporting Information [Line Items]
Net sales									721,890,000	329,887,000
Operating Segments \| Golf Equipment
Segment Reporting Information [Line Items]
Net sales									979,173,000	912,947,000	805,642,000
Income (loss) before income taxes									140,316,000	128,619,000	103,872,000
Identifiable assets	508,463,000				437,604,000				508,463,000	437,604,000	378,385,000
Additions to long-lived assets									29,167,000	27,778,000	23,574,000
Goodwill	26,329,000				26,183,000				26,329,000	26,183,000	26,904,000
Depreciation and amortization									16,847,000	11,165,000	13,265,000
Operating Segments \| Apparel, Gear and Other
Segment Reporting Information [Line Items]
Net sales									721,890,000	329,887,000	243,094,000
Income (loss) before income taxes									75,490,000	54,879,000	30,631,000
Identifiable assets	939,463,000				269,432,000				939,463,000	269,432,000	236,515,000
Additions to long-lived assets									25,386,000	9,712,000	3,790,000
Goodwill	177,414,000				29,633,000				177,414,000	29,633,000	29,525,000
Depreciation and amortization									18,104,000	8,783,000	4,340,000
Reconciling items
Segment Reporting Information [Line Items]
Income (loss) before income taxes									(120,037,000)	(52,226,000)	(66,448,000)
Identifiable assets	512,622,000				345,908,000				512,622,000	345,908,000	376,257,000
Gain (loss) in foreign currency exchange									(3,896,000)	7,261,000
Assets period increase (decrease)	(166,714,000)				$ (30,349,000)				(166,714,000)	(30,349,000)
Net (decrease) increase in cash and cash equivalents										(21,693,000)	(40,301,000)
Cash, Period Increase (Decrease)									42,685,000
Increase (Decrease) in Accounts Receivable									69,081,000
Payments to Acquire Investments									17,897,000
Reconciling items \| U.S. federal
Segment Reporting Information [Line Items]
Increase (decrease) in deferred tax asset										$ 16,319,000	$ (23,535,000)
Jack Wolfskin
Segment Reporting Information [Line Items]
Business Combination, Acquisition Related Costs									34,084,000
Net sales									356,195,000
Goodwill	147,781,000	$ 150,180,000							147,781,000			$ 150,180,000
Business Acquisition, Transaction Costs	$ 9,987,000								9,987,000
Term Loan Facility \| Reconciling items
Segment Reporting Information [Line Items]
Period Increase (Decrease), Interest Expense									$ 31,707,000

Segment Information - Summary of Revenue and Long Lived Assets by Geographical Areas (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Principal Transaction Revenue [Line Items]
Net sales	$ 311,941	$ 426,217	$ 446,708	$ 516,197	$ 180,678	$ 262,654	$ 396,311	$ 403,191	$ 1,701,063	$ 1,242,834	$ 1,048,736
Long-Lived Assets (excluding deferred tax assets)	937,152				452,959				937,152	452,959	433,774
United States
Principal Transaction Revenue [Line Items]
Net sales									788,232	708,467	564,648
Long-Lived Assets (excluding deferred tax assets)	466,957				422,803				466,957	422,803	403,493
Europe
Principal Transaction Revenue [Line Items]
Net sales									428,628	149,602	140,947
Long-Lived Assets (excluding deferred tax assets)	444,468				6,855				444,468	6,855	7,681
Japan
Principal Transaction Revenue [Line Items]
Net sales									246,260	223,707	199,372
Long-Lived Assets (excluding deferred tax assets)	10,347				8,723				10,347	8,723	7,635
Rest of World
Principal Transaction Revenue [Line Items]
Net sales									237,943	161,058	143,769
Long-Lived Assets (excluding deferred tax assets)	$ 15,380				$ 14,578				$ 15,380	$ 14,578	$ 14,965

Transactions with Related Parties - Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Related Party Transactions [Abstract]
Charitable contributions made to Callaway Golf Company Foundation	$ 750	$ 750	$ 750

Summarized Quarterly Data (Unaudited) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 311,941	$ 426,217	$ 446,708	$ 516,197	$ 180,678	$ 262,654	$ 396,311	$ 403,191	$ 1,701,063	$ 1,242,834	$ 1,048,736
Gross profit	130,148	191,389	206,817	238,433	69,971	115,239	192,697	200,462	766,787	578,369	480,448
Net income (loss)	(29,218)	31,048	28,898	48,501	(28,151)	9,740	60,934	62,731	79,229	105,254	41,667
Less: Net income (loss) attributable to non-controlling interests	0	0	(33)	(146)	348	223	67	(124)	(179)	514	861
Net income (loss) attributable to Callaway Golf Company	$ (29,218)	$ 31,048	$ 28,931	$ 48,647	$ (28,499)	$ 9,517	$ 60,867	$ 62,855	$ 79,408	$ 104,740	$ 40,806
Earnings per common share:
Basic (in dollars per share)	$ (0.31)	$ 0.33	$ 0.31	$ 0.51	$ (0.30)	$ 0.10	$ 0.65	$ 0.66	$ 0.84	$ 1.11	$ 0.43
Dilutive earnings (loss) per common share (in dollars per share)	$ (0.31)	$ 0.32	$ 0.30	$ 0.50	$ (0.30)	$ 0.10	$ 0.63	$ 0.65	$ 0.82	$ 1.08	$ 0.42

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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

+ References + Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

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+ Details