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CALLAWAY GOLF COMPANY (NYSE:ELY) Files An 8-K Regulation FD Disclosure

CALLAWAY GOLF COMPANY (NYSE:ELY) Files An 8-K Regulation FD DisclosureItem 7.01 Regulation FD Disclosure.

On December22, 2017, the Tax Cuts and Jobs Act (the “Tax Legislation”) was enacted. The Tax Legislation significantly revises the U.S. corporate income tax by, among other things, lowering corporate income tax rates and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries.

Callaway Golf Company (the “Company”) estimates, based on currently available information, that the enactment of the Tax Legislation will result in a net increase of approximately $5 million – $10 million in income tax expense in the Company’s fourth quarter and full year ended December 31, 2017 financial statements, consisting primarily of the following impacts:

The reduction in the federal corporate tax rate under the Tax Legislation from 35% to 21% is estimated to result in a reduction of approximately $10 million in the value of the Company’s net deferred tax assets;

The one-time deemed repatriation tax on untaxed foreign earnings imposed under the Tax Legislation is estimated to result in a non-recurring net benefit of approximately $4 million due to the utilization of prior net operating losses and the generation of foreign tax credits in excess of the tax effect of such net operating losses; and

The other impacts of the Tax Legislation are expected to result in additional non-recurring net tax expense estimated to be less than $2 million.

The information in this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section and shall not be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as set forth by specific reference in such filing.

Cautionary Note on Forward-Looking Statements

This Current Report onForm8-Kincludes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the Company’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside the Company’s control. It is possible that the Company’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect the Company’s future results and financial condition, see the Company’s Annual Report onForm10-Kfor the year ended December31, 2016 as well as other risks and uncertainties detailed from time to time in the Company’s reports on Forms 10-K, 10-Q and 8-K subsequently filed with the Securities and Exchange Commission.

Forward-looking statements include statements regarding the estimated effects of the Tax Legislation on the Company’s earnings for the fourth quarter and full year ended December31, 2017. These forward-looking statements consist of preliminary estimates, are based on currently available information, as well as our current interpretations, assumptions and expectations relating to the Tax Legislation, and are subject to change, possibly materially, as the Company completes its year-end financial statements due to, among other things, changes in interpretations and assumptions the Company has made, guidance that may be issued and actions the Company may take as a result of the Tax Legislation. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

About CALLAWAY GOLF COMPANY (NYSE:ELY)
Callaway Golf Company designs, manufactures and sells golf clubs, golf balls, golf bags and other golf-related accessories. The Company has two segments: the golf clubs segment and golf balls segment. The golf clubs segment consists of its woods, hybrids, irons and wedges and Odyssey putters. This segment also includes other golf-related accessories, royalties from licensing of the Company’s trademarks and service marks and sales of pre-owned golf clubs. The golf balls segment consists of the Company’s balls that are designed, manufactured and sold by the Company. The Company sells its products to retailers, directly and through its wholly owned subsidiaries, and to third-party distributors. The Company sells pre-owned golf products through its Website, www.callawaygolfpreowned.com. In addition, the Company sells Odyssey and its products direct to consumers through its Websites www.callawaygolf.com and www.odysseygolf.com.

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