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Segment Information
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has three operating and reportable segments:
•Topgolf, which is primarily comprised of service revenues and expenses from its 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, including Toulon Design putters by Odyssey, packaged sets, Callaway Golf and Strata-branded golf balls and sales of pre-owned golf clubs; and
•Apparel, Gear and Other, 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 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.
There were no significant intersegment transactions during the three months ended March 31, 2022 or 2021.
The tables below contain information utilized by management to evaluate its operating segments for the interim periods presented (in millions).
Three Months Ended
March 31,
 20222021
Net revenues:
Topgolf(1)
$322.0 $92.6 
Golf equipment468.0 376.9 
Apparel, gear and other250.2 182.1 
Total net revenues$1,040.2 $651.6 
Segment operating income:
Topgolf(1)
$6.5 $4.0 
Golf equipment100.8 84.9 
Apparel, gear and other26.7 20.5 
Total segment operating income134.0 109.4 
Reconciling items(2)
(39.7)(33.3)
Total operating income94.3 76.1 
Gain on Topgolf investment(3)
— 252.5 
Interest expense, net(31.4)(17.4)
Other income, net8.1 9.0 
Total income before income taxes$71.0 $320.2 
Additions to long-lived assets:
Topgolf(1)
$120.1 $26.1 
Golf equipment5.3 6.4 
Apparel, gear and other3.6 5.1 
Total additions to long-lived assets$129.0 $37.6 
(1) On March 8, 2021, the Company completed the merger with Topgolf and has included the results of operations of Topgolf in its consolidated condensed statements of operations from that date forward.
(2) Reconciling items include corporate general and administrative expenses not utilized by management in determining segment profitability, including amortization expense related to intangible assets acquired in connection with the merger with Topgolf and the acquisitions of Jack Wolfskin, TravisMathew and OGIO, as well as depreciation and amortization expense on the step-up to adjust the property, plant and equipment acquired and leases assumed in the merger with Topgolf to their fair values. The amount for 2022 also includes costs associated with the implementation of new IT systems for Topgolf, legal and credit agency fees related to a postponed debt refinancing, in addition to charges related to the suspension of the Jack Wolfskin retail business in Russia due to the Russia-Ukraine war. The amount for 2021 also includes transaction, transition and other non-recurring costs associated with the merger with Topgolf and costs associated with the implementation of new IT systems for Jack Wolfskin.
(3) The gain on Topgolf investment is related to the fair value step-up on the Company’s investment in Topgolf (see Note 5).