Restructuring Plans and Separation Costs

3 Months Ended

Mar. 31, 2025

Restructuring and Related Activities [Abstract]

Restructuring Plans and Separation Costs

Restructuring Plans and Separation Costs

Restructuring Plans

2023 Restructuring Plan

During 2023, we initiated a reorganization and restructuring plan, which was completed in December 2024, in order to improve the organizational structure of and increase operational efficiencies for certain businesses and functions within our Active Lifestyle and Topgolf operating segments. There were no costs incurred pursuant to the 2023 Restructuring Plan during the three months ended March 31, 2025. A negligible amount of costs were incurred pursuant to the 2023 Restructuring Plan during the three months ended March 31, 2024.

The following table summarizes the restructuring liability that is included in accounts payable and accrued expenses, accrued employee compensation and benefits, and other current liabilities on the condensed consolidated balance sheets as of the periods presented below (in millions):

	Employee termination costs		PP&E disposals		Legal & other costs		Total
Balance at December 31, 2024	$	10.2	$	0.4	$	3.2	$	13.8
Payments	(8.1)		(0.3)		(1.7)		(10.1)
Balance at March 31, 2025	$	2.1	$	0.1	$	1.5	$	3.7

The remaining $3.7 million total restructuring balance at March 31, 2025 is associated with the Jack Wolfskin business and is included in current liabilities held for sale on the condensed consolidated balance sheet.

Transformation Plan

In connection with the September 2024 announcement of our intended separation of the Topgolf business, we initiated a plan which is intended to optimize organizational efficiencies and decrease operating costs under the separate business structures that are anticipated after the separation (the “Transformation Plan”). For the three months ended March 31, 2025, costs incurred under the Transformation Plan were primarily related to employee termination and severance costs and the disposal of property, plant and equipment. We expect to incur a total of approximately $20.0 million to $30.0 million in costs related to the Transformation Plan, which we expect to be completed in conjunction with the timing of the separation.

The following table summarizes costs related to the restructuring plan recognized within selling, general and administrative expenses in the condensed consolidated statement of operations for the periods presented below (in millions):

	Three Months Ended March 31,
	2025
Employee termination & severance	$	4.4
PP&E disposals	3.3
Total restructuring	$	7.7

The following table summarizes the restructuring liability that is included in accounts payable and accrued expenses, accrued employee compensation and benefits, and other current liabilities on the condensed consolidated balance sheets as of the periods presented below (in millions):

	Employee Termination costs		PP&E disposals		Legal & other costs		Total
Balance at December 31, 2024	$	0.6	$	—	$	0.1	$	0.7
Additions	4.4		3.3		—		7.7
Payments	(3.9)		—		(0.1)		(4.0)
Non-cash adjustments	—		(3.3)		—		(3.3)
Balance at March 31, 2025	$	1.1	$	—	$	—	$	1.1

As of March 31, 2025, we incurred $9.1 million in total costs related to the Transformation Plan, of which $1.4 million was incurred during the fourth quarter of 2024. Of the $9.1 million in total costs incurred, $1.6 million and $7.5 million were associated with our corporate functions and Topgolf business, respectively.

Separation Costs

In addition to the restructuring costs noted above, during the three months ended March 31, 2025, we recognized $2.6 million and $1.1 million of consulting, legal, accounting and other costs in connection with the planned separation of Topgolf and the sale of Jack Wolfskin, respectively, which are primarily included within selling, general and administrative expenses in the condensed consolidated statement of operations.

Costs incurred related to restructuring plans and planned separations are excluded from the measurement of segment profitability for internal and external reporting purposes, and are included in Reconciling Items. See Note 16 for further information.