Taylormade Golf a Growing up Year: Oracle Financial Consolidation and Close Cloud and Taylormade Speakers

TaylorMade Golf A growing up year: Oracle Financial Consolidation and Close Cloud and TaylorMade Speakers

Lakshmi Devulapalli Vanessa Koenig Pamela Stone IT Project Manager Sr. Financial Analyst Manager TaylorMade Golf TaylorMade Golf Grant Thornton [email protected] [email protected] [email protected]

Office locations People 59 offices spread across 30 More than 8,500 states and Washington D.C. professionals in the U.S.

Reach Partners Serve 36% of companies on the 594 partners serving more 2017 Fortune 500 list and 25% of than 8,000 clients in the companies on the Russell 2000 list nation

Our services Revenue • Assurance • Tax • Advisory GT U.S. net revenue equals $1.74 billion

Established: 1979 Employees: 1200 + Headquarters: Carlsbad, California Markets: US, Europe, Canada, Japan, Korea, APAC

Customers: Golf distributors, retailers, retail customers Retail: 89% Wholesale, 11% Direct to Consumer Distribution: Global, across multiple countries ERP: EBS R12.1.3+

© Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd Business needs TaylorMade was spun off from adidas during Q4 of 2017 and initiated a project to establish its own consolidation and reporting application as a standalone company.

2018 was the first full year TaylorMade started doing business on its own.

The consolidation tool should: • Assist in the preparation of monthly, quarterly and annual financial statements • Allow the addition of new entities as the company grows • Facilitate intercompany eliminations • “Out of the Box” application that allows minor customizations per the company’s business needs • Flexibility in reporting based on company’s internal attributes (separate or combined)

• Multi-currency application allowing • TaylorMade needed to maintain the analysis of legal entities in their same level of reporting they had prior to local currency and translated USD the separation, i.e. the ability to slice and value dice data by the following company attributes: • Dimensions that align with the - Brand – multiple brands (i.e. EBS account fields – accounts, TaylorMade, Ashworth, Adams etc.) entities, cost centers, etc. - Cost Centers – need to analyze • Data integration with multiple various overhead costs sources including Oracle EBS - Product Line –multiple product lines (i.e. Metalwoods, Irons, Putters, Golf • Preparation of monthly, quarterly, Balls, etc.) and annual financial reports ready for audit and published to the - Management Business Unit (MBU) – leadership team, as well as, areas of business responsibilities that roll under each legal entity. Today, external parties there are more than 20 different MBU's across the company

• Global solution PBCS • Integrated platform • Financial reporting EPM • Intuitive UI PBCS Cloud FCCS Enterprise Platform • Data integration with EBS and flat files • Cloud infrastructure • Scalability for company’s future growth PSPBCS

© Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd Growing up with FCC Key issue: During the FCC design session in 2017, it became clear that the standard 2 custom dimensions application of FCC would not be sufficient for TaylorMade, due to their multiple reporting attributes. Additionally, TaylorMade needed to be off of the adidas consolidation tool (SAP GRAPE) by mid-2018.

Journey: • The waiting time (not expected from initial time estimates) • Commitment of resources • Realigning expectations to the leadership team • Start and stop of the implementation • Deadline rush/Cramming • Preparing for year-end audit sign-off of historical data (GRAPE & FCC were different) • GT working on a solution with Oracle • TaylorMade trusting GT & Oracle to deliver on an application to report

Decision: • Participate in the Oracle preview program for Extended dimensionality. • Continue FCC implementation with 2 custom dimensions in order to go live by mid-2018.

Work-around: • Cost Center was set up as its own custom dimension • Brand and Product Line were combined into one custom dimension • Product Line populated the attribute dimension • MBU was rolled into the Entity dimension • Data matching/validation with prior application account structure to FCC structure

In preparation for combining Brand and Product Line into one dimension, we decided which attribute would be the main outline of the dimension and which one would populate the Attribute Dimension. We decided on the brand dimension because it was more widely and frequently used.

Step 1: Set up the brand dimension members

Step 2: Set up the Attribute values under the Brand's Custom Attribute

Populate the Attribute Dimension with the Product members

Finished product

Custom dimension that presents the combination of TaylorMade Brands and Product Lines

Using Smart View Product Line (Attribute Dimension) is available under Member Selection. Provides the same functionality as other dimensions.

Like other FCC dimensions, the Product Line works in conjunction with the other dimensions, including the Brand dimension, to provide additional analysis.

Using Attribute Dimension in Report build • Brand – selectable by user • Product Line – part of the grid and attached to an account

All feasible due to Attribute Dimension

© Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd FCC system gains With the implementation of FCC, the company has gained savings in their close process by:

• Creating FCC rules to automatically calculate a Key Performance Metric - Previously the process required a manual extraction of data into excel to perform a calculation within the spreadsheet before being able to book a journal entry - 3 steps decreased by a rule that generates a value during consolidation • Using data management mapping to transform an EBS non-intercompany account with the supplied intercompany code to an FCC intercompany account • Automating loads from on-premise Oracle EBS application by using EPM Automate • Streamlined and efficient consolidation process - Validation of each entity, followed by the click of a button to translate and consolidate - Has shortened the process by approximately 2 days

© Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd Team improvements The participation of the TaylorMade team members in the implementation of FCC, allowed them to see other areas they could leverage with the new consolidation tool:

• Revamping of the chart of accounts for consistency across the board: Creation of a policy to instruct all legal entities on what type of activity should be used for each account • Setting the standard: Regional training on accurate data submission, allowing the corporate team to spend more time analyzing results versus making adjustments • Accountability at the regional level: Education of the regions on how to use Smart View to validate and analyze their financials once consolidated • Overall project implementation allowed the team to identify and resolve reporting issues to ensure more accurate and consistent reporting

© Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd Still to come… Due to the timing of when TaylorMade had to be functioning using its "own" consolidation tool, the FCC implementation focused on going live with an application that would allow them to report effectively and efficiently.

• We are not done taking advantage of what Oracle EPM has to offer, the following initiatives are in the works:

• Parallel close in the FCC 4 custom dimension - Go-live January 2020 • Utilizing task manager and engaging regions by assigning them tasks • Fully automating the EBS loads • Implementation of PBC - Go-live September 2019