XML 45 R30.htm IDEA: XBRL DOCUMENT v3.22.4
Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has three operating and reportable segments:
•Topgolf, which is primarily comprised of service revenues and expenses from its Company-operated Topgolf venues, Toptracer ball-flight tracking technology, and WGT digital golf game;
•Golf Equipment, which is comprised of product revenues and expenses that encompass golf club and golf ball products, including Callaway Golf-branded woods, hybrids, irons, wedges, Odyssey putters, including Toulon Design putters by Odyssey, packaged sets, Callaway Golf and Strata-branded golf balls and sales of pre-owned golf clubs; and
•Active Lifestyle, which is comprised of product revenues and expenses for the Jack Wolfskin outdoor apparel, gear and accessories business, the TravisMathew golf and lifestyle apparel and accessories business, the Callaway soft goods business and the OGIO business, which consists of golf apparel and accessories (including golf bags and gloves), and storage gear for sport and personal use. This segment also includes royalties from licensing of the Company’s trademarks and service marks for various soft goods products. During the second quarter of 2022, the Company changed the name of its Apparel, Gear, and Other operating segment to Active Lifestyle. The segment name change had no impact on the composition of the Company’s segments or on previously reported financial position, results of operations, cash flow or segment operating results.
There were no significant intersegment transactions during the years ended December 31, 2022, 2021, or 2020.
The following table contains information utilized by management to evaluate its operating segments for the periods presented below (in millions):
Years Ended December 31,
202220212020
Net revenues:
Topgolf(1)
$1,549.0 $1,087.6 $— 
Golf Equipment1,406.6 1,229.2 982.7 
Active Lifestyle1,040.1 816.6 606.8 
Total net revenues$3,995.7 $3,133.4 $1,589.5 
Income (loss) before income taxes:
Topgolf(1)
$76.8 $58.2 $— 
Golf Equipment251.4 203.9 148.6 
Active Lifestyle77.4 68.5 0.7 
Total segment operating income405.6 330.6 149.3 
Reconciling Items(2)
(148.8)(125.9)(254.8)
Total operating income (loss)256.8 204.7 (105.5)
Gain on Topgolf investment(3)
— 252.5 — 
Interest expense, net(142.8)(115.6)(46.9)
Other income, net27.9 9.0 24.9 
Total income (loss) before income taxes$141.9 $350.6 $(127.5)
December 31,
20222021
Identifiable assets:
Topgolf(1)
$5,302.0 $4,910.0 
Golf Equipment1,340.0 1,107.6 
Active Lifestyle1,034.0 840.5 
Reconciling items(2)
914.4 889.7 
Total identifiable assets$8,590.4 $7,747.8 
Additions to long-lived assets:
Topgolf(1)
$490.4 $286.8 
Golf Equipment13.8 30.7 
Active Lifestyle22.4 21.0 
Total additions to long-lived assets$526.6 $338.5 
Depreciation and amortization:
Topgolf(1)
$143.8 $114.6 
Golf Equipment20.7 14.1 
Active Lifestyle28.3 27.1 
Total depreciation and amortization$192.8 $155.8 
(1) On March 8, 2021, the Company completed the merger with Topgolf and has included the results of operations, identifiable assets, additions to long-lived assets, and depreciation and amortization of Topgolf in its consolidated statements of operations and statements of financial position from that date forward.
(2) Reconciling items include corporate general and administrative expenses not utilized by management in determining segment profitability as well as the amortization and depreciation of acquired intangible assets and purchase accounting adjustments. The amount for 2022 also includes costs associated with the one-time implementation of new ERP systems installed at acquired companies, legal and credit agency fees related to a postponed debt refinancing, and impairment losses related to an underperforming premerger Topgolf concept location in addition to the suspension of business operations in Russia. The amount for 2021 also includes transaction, transition and other non-recurring costs associated with the merger with Topgolf and costs associated with the implementation of new IT systems for Jack Wolfskin.
(3) The gain on Topgolf investment is related to the fair value step-up on the Company’s investment in Topgolf (see Note 6).
The Company markets its products in the United States and internationally, with its principal international markets being Asia and Europe. The tables below contain information about the geographical areas in which the Company operates. Net revenues are attributed to the location to which the product was shipped. Long-lived assets are based on location of domicile.
202220212020
(in millions)
Net Revenues:
United States$2,798.0 $2,067.1 $778.6 
Europe537.4 499.5 373.0 
Asia545.4 465.5 212.1 
Rest of World114.9 101.3 225.8 
Total Net Revenues$3,995.7 $3,133.4 $1,589.5 
Long-Lived Assets(1)
United States$1,729.0 $1,383.6 $116.5 
Europe58.8 48.9 17.1 
Asia18.8 7.2 6.0 
Rest of World3.0 11.7 6.9 
Total Long-Lived Assets$1,809.6 $1,451.4 $146.5 
(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 was recast to conform with the current year presentation.