Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

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


	Operating and Reportable Segments
	Three Months Ended March 31, 2021								Three Months Ended March 31, 2020
	Golf Equipment		Apparel, Gear & Other		Topgolf		Total		Golf Equipment		Apparel, Gear & Other		Total
Major revenue categories:
Golf clubs	$	316,353	$	—	$	—	$	316,353	$	251,224	$	—	$	251,224
Golf balls	60,529		—		—		60,529		40,437		—		40,437
Apparel	—		95,289		—		95,289		—		77,290		77,290
Gear, accessories & other	—		86,813		—		86,813		—		73,325		73,325
Venues	—		—		85,170		85,170		—		—		—
Other business lines	—		—		7,467		7,467		—		—		—
	$	376,882	$	182,102	$	92,637	$	651,621	$	291,661	$	150,615	$	442,276

The Topgolf segment includes an immaterial amount of golf clubs, golf balls, and apparel sales, which are reflected within product sales within the consolidated condensed statement of operations for the three months ended March 31, 2021.

The Apparel, Gear and Other and Topgolf segments include royalty income from licensing agreements of $10,868,000 and $5,545,000 for the three months ended March 31, 2021 and 2020, respectively.

As of March 31, 2021 and December 31, 2020, the Company's deferred revenue liability was $70,946,000 and $2,546,000, respectively. The balance as of March 31, 2021 included a deferred revenue liability of $68,093,000 in the Topgolf segment related to gift cards, event deposits, lifetime memberships, prepaid sponsorship, premium membership, the WGT digital golf game, and game credits. Revenue from redeemed gift cards and gift card breakage was $3,306,000 and $525,000 for the three months ended March 31, 2021 and 2020, respectively. Deferred revenue from redeemed event deposits, lifetime memberships, prepaid sponsorship, premium membership, WGT digital golf game, game credits, and the corresponding breakage was $24,740,000 for the three months ended March 31, 2021.

The following table summarizes revenue by geographical areas in which the Company operates (in thousands):


	Three Months Ended March 31,
		2021		2020
Revenue by Major Geographic Region:
United States		$	388,222	$	217,503
Europe		108,345		96,719
Japan		71,886		77,347
Rest of World		83,168		50,707
		$	651,621	$	442,276

Sales Returns and Allowances

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


	Three Months Ended March 31,
		2021		2020
Beginning balance		$	43,986	$	34,314
Provision		35,890		35,636
Sales returns		(19,092)		(18,958)
Ending balance		$	60,784	$	50,992

Schedule of reconciliation of the activity related to the Company’s allowance for estimated credit losses

The following table provides a reconciliation of the activity related to the Company’s allowance for estimated credit losses (in thousands):


	Three Months Ended March 31,
		2021		2020
Beginning balance		$	8,841	$	5,992
Adjustment due to the adoption of Topic 326		—		289
(Recovery)/provision for credit losses		(378)		13
Write-off of uncollectible amounts, net of recoveries		(1,662)		(154)

Ending balance		$	6,801	$	6,140