Segment Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

We have three operating and reportable segments:

•Topgolf, which is primarily comprised of service revenues and expenses from our 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, 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 storage gear for sport and personal use. This segment also includes royalties from licensing of our trademarks and service marks for various soft goods products.

There were no significant intersegment transactions during the three months ended March 31, 2024 or 2023.

The following table contains information utilized by management to evaluate our operating segments for the interim periods presented (in millions):

	Three Months Ended March 31,
	2024		2023
Net revenues:
Topgolf	$	422.8	$	403.5
Golf Equipment	449.9		443.7
Active Lifestyle	271.5		320.2
Total net revenues	$	1,144.2	$	1,167.4
Segment operating income:
Topgolf	$	2.9	$	2.8
Golf Equipment	82.1		81.6
Active Lifestyle	24.7		37.3
Total segment operating income	109.7		121.7
Reconciling items(1)	(42.8)		(41.2)
Total operating income	66.9		80.5
Interest expense, net	(58.8)		(49.6)
Other income, net	3.4		(10.1)
Total income before income taxes	$	11.5	$	20.8
Additions to property, plant, and equipment:
Topgolf	$	64.1	$	133.2
Golf Equipment	1.4		3.4
Active Lifestyle	3.7		3.4
Corporate	5.8		14.5
Total additions to long-lived assets	$	75.0	$	154.5
(1) Reconciling items include corporate general and administrative expenses not utilized by management in determining segment profitability, including the amortization and depreciation of acquired intangible assets, purchase accounting adjustments related to acquisitions and other non-recurring costs associated with our debt modifications, integration of new IT systems stemming from acquisitions, and cybersecurity costs.