Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill by operating and reportable segment are as follows (in millions):


	Topgolf		Golf Equipment		Active Lifestyle		Total
Balance at December 31, 2021	$	1,340.7	$	531.1	$	88.3		$	1,960.1
Additions	14.3		0.2		—			14.5

Foreign currency translation and other	8.6		(1.8)		—			6.8
Balance at September 30, 2022	$	1,363.6	$	529.5	$	88.3		$	1,981.4

Additions to goodwill during the nine months ended September 30, 2022 are related to adjustments made during the first quarter of 2022 to finalize the fair value on certain leases assumed in connection with the merger with Topgolf, as well as the deferred taxes associated with the transaction (see Note 5). Goodwill is net of accumulated impairment losses of $148.4 million, which were recorded prior to December 31, 2021 in the Active Lifestyle segment.

The Company’s intangible assets by major asset class are as follows (in millions, except useful life amounts):


	Useful Life (Years)	September 30, 2022
		Gross		Accumulated Amortization		Translation Adjustment		Net Book Value
Indefinite-lived:
Trade name, trademark, trade dress and other	—	$	1,441.0	$	—	$	(45.1)	$	1,395.9
Liquor licenses	—	8.4		—		—		8.4
Amortizing:
Patents	2-16	32.1		(31.8)		—		0.3
Customer and distributor relationships and other	1-10	67.4		(33.6)		(6.4)		27.4
Developed technology	10	69.7		(10.5)		(4.5)		54.7
Total intangible assets		$	1,618.6	$	(75.9)	$	(56.0)	$	1,486.7


	Useful Life (Years)	December 31, 2021
		Gross		Accumulated Amortization		Translation Adjustment	Net Book Value
Indefinite-lived:
Trade name, trademark, trade dress and other	—	$	1,441.0	$	—		$	(15.8)	$	1,425.2
Liquor licenses	—	7.7		—			—		7.7
Amortizing:
Patents	2-16	32.0		(31.7)			—		0.3
Customer and distributor relationships and other	1-10	61.7		(27.4)			(2.3)		32.0
Developed technology	10	69.7		(5.5)			(0.8)		63.4
Total intangible assets		$	1,612.1	$	(64.6)		$	(18.9)	$	1,528.6

The Company recognized amortization expense related to acquired intangible assets of $4.3 million and $3.4 million for the three months ended September 30, 2022 and 2021, respectively, and $11.3 million and $9.4 million for the nine months ended September 30, 2022 and 2021, respectively. Amortization expense is included in selling, general and administrative expenses in the consolidated condensed statements of operations.

Amortization expense related to intangible assets at September 30, 2022 in each of the next five fiscal years and beyond is expected to be incurred as follows (in millions):


Remainder of 2022	$	4.0
2023	13.6
2024	11.0
2025	11.0
2026	10.9
Thereafter	31.9
	$	82.4