Segment Information (Tables)

12 Months Ended

Dec. 31, 2021

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,
	2021		2020		2019
Net revenues:
Topgolf(1)	$	1,087,671	$	—	$	—
Golf equipment	1,229,175		982,675		979,173
Apparel, gear and other	816,601		606,785		721,890
Total net revenues	$	3,133,447	$	1,589,460	$	1,701,063

Income (loss) before income taxes:
Topgolf(1)	$	58,225	$	—	$	—
Golf equipment	203,846		148,578		140,316
Apparel, gear and other	68,511		679		75,490
Total segment operating income	330,582		149,257		215,806
Corporate G&A and other(2)	(125,867)		(80,503)		(83,138)
Goodwill and tradename impairment(3)	—		(174,269)		—
Total operating income (loss)	204,715		(105,515)		132,668
Gain on Topgolf investment(4)	252,531		—		—
Interest expense, net	(115,565)		(46,932)		(38,493)
Other income, net	8,961		24,969		1,594

Total income (loss) before income taxes	$	350,642	$	(127,478)	$	95,769


	December 31,
	2021		2020
Identifiable assets:
Topgolf(1)	$	4,909,968	$	—
Golf equipment	1,107,632		481,214
Apparel, gear and other	840,466		754,601
Reconciling items(5)	889,714		744,785
Total identifiable assets	$	7,747,780	$	1,980,600

Additions to long-lived assets:(6)
Topgolf(1)	$	286,813	$	—
Golf equipment	30,657		25,695
Apparel, gear and other	20,996		21,235
Total additions to long-lived assets	$	338,466	$	46,930

Goodwill:(7)
Topgolf(1)	$	1,340,663	$	—
Golf equipment	531,122		27,025
Apparel, gear and other	88,285		29,633
Total goodwill	$	1,960,070	56,658

Depreciation and amortization:
Topgolf(1)	$	114,618	$	—
Golf equipment	14,073		19,212
Apparel, gear and other	27,131		20,296
Total depreciation and amortization	$	155,822	$	39,508

____________

(1)On March 8, 2021, the Company completed the merger with Topgolf and has included the results of operations of Topgolf in its consolidated statements of operations from that date forward.

(2)Corporate general and administrative expenses for the year ended December 31, 2021 include (i) $22.3 million of non-cash amortization expense for intangible assets acquired in connection with the merger with Topgolf, combined with depreciation expense from the fair value step-up of Topgolf property, plant and equipment and amortization expense related to the fair value adjustments to Topgolf leases, (ii)$21.2 million of transaction, transition and other non-recurring costs associated with the merger with Topgolf completed on March 8, 2021, and (iii) $2.8 million of costs related to the implementation of new IT systems for Jack Wolfskin. The amount for the year ended December 31, 2020 includes certain non-recurring costs, including (i) $8.5 million in transaction, transition, and other non-recurring costs associated with the Topgolf Merger Agreement, (ii) $3.7 million of costs associated with the Company’s transition to its new North America Distribution Center; (iii) $3.8 million related to cost-reduction initiatives, including severance charges associated with workforce reductions due to the COVID-19 pandemic, and (iv) $1.5 million related to the implementation of new IT systems for Jack Wolfskin. The amount for the year ended December 31, 2019 includes $26.4 million of non-recurring transaction fees and transition costs associated with the acquisition of Jack Wolfskin completed in January 2019, as well as other non-recurring advisory fees.

(3)The $174.3 million goodwill and tradename impairment for the year ended December 31, 2020 was primarily related to an impairment in goodwill at Jack Wolfskin (see Note 9).

(4)The $252.5 million gain on Topgolf investment included in the year ended December 31, 2021 was related to the fair value step-up on the Company's pre-acquisition investment in Topgolf (see Note 10).

(5)Reconciling items represent unallocated corporate assets not segregated between the three segments including income taxes receivable, prepaid expense and other current assets. The $144.9 million increase in reconciling items in 2021 compared to 2020 was primarily due to an increase of $84.2 million in other current assets and an increase of $33.9 million in prepaid expenses.

(6)Additions to long-lived assets are comprised of purchases of property, plant and equipment.(7)The $1,903.4 million increase in goodwill in 2021 compared to 2020 was primarily due to the Topgolf merger in March 2021 (see Note 9).

Revenues and Long Lived Assets

Long-lived assets are based on location of domicile.


	Net Revenues		Long-Lived Assets(1)
	(in thousands)
2021
United States	$	2,067,070	$	1,383,614
Europe	499,533		48,854
Japan	243,848		7,205
Rest of World	322,996		11,729
	$	3,133,447	$	1,451,402
2020
United States	$	778,600	$	116,459
Europe	372,957		17,078
Japan	212,055		6,028
Rest of World	225,848		6,930
	$	1,589,460	$	146,495
2019
United States	$	788,232	$	103,111
Europe	428,628		19,148
Japan	246,260		5,655
Rest of World	237,943		4,846
	$	1,701,063	$	132,760

____________

(1)In 2021, the Company re-evaluated its definition of long-lived assets to include property, plant and equipment. As a result, the information presented for 2020 and 2019 was recast to conform with the current year presentation.