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Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2021
Segment Reporting [Abstract] |
Segment Information | Note 22. Segment Information On March 8, 2021, the Company completed its merger with Topgolf. Topgolf is primarily a services-based business that provides hospitality offerings and golf entertainment experiences, which is uniquely different compared to the Company's Golf Equipment and Apparel, Gear and Other businesses, which produce, distribute and sell goods through various sales channels. Accordingly, based on the Company's re-assessment of its operating segments, the Company added a third operating segment for its Topgolf business. Therefore, as of December 31, 2021, the Company had three reportable operating segments: Topgolf, Golf Equipment and Apparel, Gear and Other. The Topgolf operating segment is primarily comprised of service revenues and expenses for its Company-operated Topgolf venues equipped with technology-enabled hitting bays, multiple bars, dining areas and event spaces, as well as Toptracer ball-flight tracking technology used by independent driving ranges and broadcast television, and the Company's WGT digital golf game. The Golf Equipment operating segment 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. The Apparel, Gear and Other operating segment 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), 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. The table below contains information utilized by management to evaluate its operating segments.
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Net revenues: |  |  |  |  |
Topgolf(1) | $ | 1,087,671 |  |  | $ | — |  |  | $ | — |
Golf equipment | 1,229,175 |  |  | 982,675 |  |  | 979,173 |
Apparel, gear and other | 816,601 |  |  | 606,785 |  |  | 721,890 |
Total net revenues | $ | 3,133,447 |  |  | $ | 1,589,460 |  |  | $ | 1,701,063 |
Income (loss) before income taxes: |  |  |  |  |
Topgolf(1) | $ | 58,225 |  |  | $ | — |  |  | $ | — |
Golf equipment | 203,846 |  |  | 148,578 |  |  | 140,316 |
Apparel, gear and other | 68,511 |  |  | 679 |  |  | 75,490 |
Total segment operating income | 330,582 |  |  | 149,257 |  |  | 215,806 |
Corporate G&A and other(2) | (125,867) |  |  | (80,503) |  |  | (83,138) |
Goodwill and tradename impairment(3) | — |  |  | (174,269) |  |  | — |
Total operating income (loss) | 204,715 |  |  | (105,515) |  |  | 132,668 |
Gain on Topgolf investment(4) | 252,531 |  |  | — |  |  | — |
Interest expense, net | (115,565) |  |  | (46,932) |  |  | (38,493) |
Other income, net | 8,961 |  |  | 24,969 |  |  | 1,594 |
Total income (loss) before income taxes | $ | 350,642 |  |  | $ | (127,478) |  |  | $ | 95,769 |
| December 31,
| 2021 |  | 2020
Identifiable assets: |  |  |
Topgolf(1) | $ | 4,909,968 |  |  | $ | — |
Golf equipment | 1,107,632 |  |  | 481,214 |
Apparel, gear and other | 840,466 |  |  | 754,601 |
Reconciling items(5) | 889,714 |  |  | 744,785 |
Total identifiable assets | $ | 7,747,780 |  |  | $ | 1,980,600 |
Additions to long-lived assets:(6) |  |  |
Topgolf(1) | $ | 286,813 |  |  | $ | — |
Golf equipment | 30,657 |  |  | 25,695 |
Apparel, gear and other | 20,996 |  |  | 21,235 |
Total additions to long-lived assets | $ | 338,466 |  |  | $ | 46,930 |
Goodwill:(7) |  |  |
Topgolf(1) | $ | 1,340,663 |  |  | $ | — |
Golf equipment | 531,122 |  |  | 27,025 |
Apparel, gear and other | 88,285 |  |  | 29,633 |
Total goodwill | $ | 1,960,070 |  |  | 56,658 |
Depreciation and amortization: |  |  |
Topgolf(1) | $ | 114,618 |  |  | $ | — |
Golf equipment | 14,073 |  |  | 19,212 |
Apparel, gear and other | 27,131 |  |  | 20,296 |
Total depreciation and amortization | $ | 155,822 |  |  | $ | 39,508 |
____________ (1)On March 8, 2021, the Company completed the merger with Topgolf and has included the results of operations of Topgolf in its consolidated state ments of operations from that date forward. (2)Corporate general and administrative expenses for the year ended December 31, 2021 include (i) $22.3 million of non-cash amortization expense for intangible assets acquired in connection with the merger with Topgolf, combined with depreciation expense from the fair value step-up of Topgolf property, plant and equipment and amortization expense related to the fair value adjustments to Topgolf leases, (ii)$21.2 million of transaction, transition and other non-recurring costs associated with the merger with Topgolf completed on March 8, 2021, and (iii) $2.8 million of costs related to the implementation of new IT systems for Jack Wolfskin. The amount for the year ended December 31, 2020 includes certain non-recurring costs, including (i) $8.5 million in transaction, transition, and other non-recurring costs associated with the Topgolf Merger Agreement, (ii) $3.7 million of costs associated with the Company’s transition to its new North America Distribution Center; (iii) $3.8 million related to cost-reduction initiatives, including severance charges associated with workforce reductions due to the COVID-19 pandemic, and (iv) $1.5 million related to the implementation of new IT systems for Jack Wolfskin. The amount for the year ended December 31, 2019 includes $26.4 million of non-recurring transaction fees and transition costs associated with the acquisition of Jack Wolfskin completed in January 2019, as well as other non-recurring advisory fees. (3)The $174.3 million goodwill and tradename impairment for the year ended December 31, 2020 was primarily related to an impairment in goodwill at Jack Wolfskin (see Note 9). (4)The $252.5 million gain on Topgolf investment included in the year ended December 31, 2021 was related to the fair value step-up on the Company's pre-acquisition investment in Topgolf (see Note 10). (5)Reconciling items represent unallocated corporate assets not segregated between the three segments including income taxes receivable, prepaid expense and other current assets. The $144.9 million increase in reconciling items in 2021 compared to 2020 was primarily due to an increase of $84.2 million in other current assets and an increase of $33.9 million in prepaid expenses. (6)Additions to long-lived assets are comprised of purchases of property, plant and equipment. (7)The $1,903.4 million increase in goodwill in 2021 compared to 2020 was primarily due to the Topgolf merger in March 2021 (see Note 9). The Company markets its products in the United States and internationally, with its principal international markets being Japan 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.
| Net Revenues |  | Long-Lived Assets(1)
| (in thousands)
2021 |  |  |
United States | $ | 2,067,070 |  |  | $ | 1,383,614 |
Europe | 499,533 |  |  | 48,854 |
Japan | 243,848 |  |  | 7,205 |
Rest of World | 322,996 |  |  | 11,729 |
| $ | 3,133,447 |  |  | $ | 1,451,402 |
2020 |  |  |
United States | $ | 778,600 |  |  | $ | 116,459 |
Europe | 372,957 |  |  | 17,078 |
Japan | 212,055 |  |  | 6,028 |
Rest of World | 225,848 |  |  | 6,930 |
| $ | 1,589,460 |  |  | $ | 146,495 |
2019 |  |  |
United States | $ | 788,232 |  |  | $ | 103,111 |
Europe | 428,628 |  |  | 19,148 |
Japan | 246,260 |  |  | 5,655 |
Rest of World | 237,943 |  |  | 4,846 |
| $ | 1,701,063 |  |  | $ | 132,760 |
____________ (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 and 2019 was recast to conform with the current year presentation.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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