Segment Information

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Information

Segment Information

Our operating segments are based on how the Chief Executive Officer as the designated Chief Operating Decision Maker (“CODM”) makes decisions about assessing performance and allocating resources. The CODM primarily evaluates segment performance using segment operating income (loss), which is calculated by taking total segment revenues less segment operating expenses. Segment operating expenses include operating expenses directly attributable to the segment as well as certain shared corporate administration services and other costs which are allocated to the reportable segments. Segment operating expenses exclude certain non-recurring items and other costs, such as interest expense, interest income, taxes and non-allocated corporate expenses. Our CODM evaluates the profitability of each reportable segment based on segment operating income (loss) because it provides insight to operational leverage and other key operational metrics for each segment. Segment operating income (loss) is also used in the annual budget and forecasting process, and budget-to-actual and forecast-to-actual variances are considered when determining the appropriate allocation of company resources to each of our segments. The CODM does not evaluate a measure of assets when assessing segment performance.

We have three operating and reportable segments:

•Topgolf, which is primarily comprised of service revenues and expenses from our Company-owned and operated Topgolf venues, Toptracer ball-flight tracking technology, and WGT digital golf game, which was sold in December 2024;

•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 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, 2025 or 2024.

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

	Three Months Ended March 31,
	2025			2024
Topgolf:
Service and product revenue	$	393.7		$	422.8
Less:
Cost of products and services, excluding depreciation and amortization	41.1			44.4
Other venue expense	320.0			321.6
Selling, general and administrative expense	39.9			46.3
Research and development expense	4.0			4.4
Venue pre-opening costs	0.6			3.2
Segment operating (loss) income	$	(11.9)		$	2.9
Golf Equipment:
Product revenue	$	443.7		$	449.9
Less:
Cost of products	247.0			263.6
Selling, general and administrative expense	82.4			90.8
Research and development expense	12.7			13.4
Segment operating income	$	101.6		$	82.1
Active Lifestyle:
Product revenue	$	254.9		$	271.5
Less:
Cost of products	136.5		—	146.6
Selling, general and administrative expense	83.5			94.8
Research and development expense	4.3			5.4
Segment operating income	$	30.6		$	24.7
Total segment operating income	$	120.3		$	109.7
Reconciling items:
Unallocated other corporate expenses (1)	(53.8)			(42.8)
Total operating income	66.5			66.9
Interest expense, net	(58.0)			(58.8)
Other income, net	3.1			3.4
Total income before income taxes	$	11.6		$	11.5
Supplementary Data:
Depreciation and amortization:
Topgolf	$	55.0		$	52.4
Golf Equipment	5.2			4.8
Active Lifestyle	8.9			8.2
Total depreciation and amortization	$	69.1		$	65.4
(1) Unallocated other corporate expenses include corporate general and administrative expenses not utilized by management in determining segment profitability, including the amortization of acquired intangible assets, restructuring and reorganization charges, and other non-recurring costs associated with our planned separation of Topgolf, the sale of the Jack Wolfskin business, debt modifications, the integration of new IT systems stemming from acquisitions, and cybersecurity costs.

We market our products in the United States and internationally, with our principal international markets being Asia and Europe. The tables below contain information about the geographical areas in which we operate. Net revenues are attributed to the location to which the product was shipped. Long-lived assets are based on location of domicile.

	Three Months Ended March 31,
	2025		2024
	(in millions)
Net Revenues:
United States	$	790.4	$	829.0
Europe	130.1		141.4
Asia	128.8		127.6
Rest of World	43.0		46.2
Total Net Revenues	$	1,092.3	$	1,144.2
	March 31, 2025		December 31, 2024
	(in millions)
Long-Lived Assets:
United States	$	2,108.4	$	2,112.5
Europe	82.2		84.9
Asia	10.2		16.4
Rest of World	5.9		5.2
Total Long-Lived Assets	$	2,206.7	$	2,219.0