XML 36 R25.htm IDEA: XBRL DOCUMENT v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 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 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. Results of operations for the Jack Wolfskin business were also reflected within the Active Lifestyle operating segment through the date of the sale. See Note 3 for further information. 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 and six months ended June 30, 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 June 30,Six Months Ended June 30,
2025202420252024
Topgolf:
Service and product revenue$485.3 $494.4 $879.0 $917.2 
Less:
Cost of products and services, excluding depreciation and amortization52.2 53.6 93.3 98.0 
Other venue expense334.8 338.0 654.8 659.6 
Selling, general and administrative expense37.5 39.9 77.4 86.2 
Research and development expense3.6 4.0 7.6 8.4 
Venue pre-opening costs1.8 2.8 2.4 6.0 
Segment operating income$55.4 $56.1 $43.5 $59.0 
Golf Equipment:
Product revenue$411.6 $413.8 $855.3 $863.7 
Less:
Cost of products237.5 239.0 484.5 502.6 
Selling, general and administrative expense85.4 84.7 167.8 175.5 
Research and development expense12.4 12.7 25.1 26.1 
Segment operating income$76.3 $77.4 $177.9 $159.5 
Active Lifestyle:
Product revenue$213.6 $249.6 $468.5 $521.1 
Less:
Cost of products113.9 132.6 250.4 279.2 
Selling, general and administrative expense75.4 97.0 158.9 191.8 
Research and development expense3.8 5.3 8.1 10.7 
Segment operating income$20.5 $14.7 $51.1 $39.4 
Total segment operating income$152.2 $148.2 $272.5 $257.9 
Reconciling items:
Unallocated corporate expenses (1)
(46.4)(45.2)(100.2)(88.0)
Total operating income 105.8 103.0 172.3 169.9 
Interest expense, net(58.7)(57.0)(116.7)(115.8)
Other (expense) income, net (2)
(13.0)6.4 (9.9)9.8 
Total income before income taxes$34.1 $52.4 $45.7 $63.9 
Supplementary Data:
Depreciation and amortization:
Topgolf$54.2 $52.5 $109.2 $104.9 
Golf Equipment5.7 4.7 10.9 9.5 
Active Lifestyle7.9 8.6 16.8 16.8 
Total depreciation and amortization$67.8 $65.8 $136.9 $131.2 
(1) Unallocated corporate expenses include corporate general and administrative expenses not utilized by management in determining segment profitability, amortization of acquired intangible assets, restructuring and reorganization charges, other non-recurring losses and costs associated with the sale of the Jack Wolfskin business, our planned separation of Topgolf, debt modifications, the integration of new IT systems stemming from acquisitions, and non-recurring costs related to a cybersecurity incident. For the three months ended June 30, 2025 and 2024, $32.7 million and $29.3 million of corporate general and administrative expenses, respectively, were included in unallocated corporate expenses. For the six months ended June 30, 2025 and 2024, $67.8 million and $69.3 million of corporate general and administrative expenses, respectively, were included in unallocated corporate expenses.
(2) Includes portion of pre-tax loss associated with the sale of the Jack Wolfskin business.
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 June 30,Six Months Ended June 30,
(in millions)
2025202420252024
Net Revenues:
United States$862.2 $891.3 $1,652.6 $1,720.3 
Europe105.3 114.1 235.4 255.5 
Asia99.8 109.1 228.6 236.7 
Rest of World43.2 43.3 86.2 89.5 
Total Net Revenues$1,110.5 $1,157.8 $2,202.8 $2,302.0 
June 30, 2025December 31, 2024
Long-Lived Assets:
United States$2,123.3 $2,112.5 
Europe87.5 84.9 
Asia9.9 16.4 
Rest of World6.2 5.2 
Total Long-Lived Assets$2,226.9 $2,219.0