Callaway Golf Company told its employees Aug. 10 it will reorganize its golf ball manufacturing and distribution facilities located in Chicopee, MA over the next 18 months as part of a global restructuring plan unveiled July 27.
Set forth below are the current estimated charges (or estimated range of charges) that are expected to be incurred over the next 18 months in connection with the Chicopee Reorganization (in thousands):
Cash Non-Cash Total
Termination benefits $850 – 2,350 $ – $850 – 2,350
Asset write-offs – 1,600 1,600
Transition costs1 2,850 – 2,850
Total $3,700 – 5,200 $1,600 $5,300 – 6,800
The above enumerated charges reflect the Company's best estimate as of the filing of this report based upon the Company's current plans. Any change in the Company's plans during implementation, or any delays, difficulties, or increased costs associated with the implementation of these initiatives, could affect the estimated amounts or timing of the charges.The announcement follows the company's July 27, 2010 announcement that it would reorganize its manufacturing and distribution centers located in Carlsbad, California and Toronto, Canada, create third-party logistics sites in Dallas, Texas and Toronto, Canada, and establish a new production facility in Monterrey, Mexico.