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Revenue Recognition | 12 Months Ended
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Dec. 31, 2023
Revenue Recognition [Abstract] |
Revenue Recognition | Revenue Recognition We primarily recognize revenue from the sale of our products and the operation of our Topgolf venues. Contracts with customers for the purchase of our products are generally in the form of a purchase order. In certain cases, we enter into sales agreements which may contain specific terms, discounts and allowances. We also enter into licensing agreements with certain distributors and, with respect to our Toptracer operations, driving ranges and hospitality and entertainment venues. The following table presents our revenue disaggregated by operating and reportable segment and major category (in millions):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Topgolf (1): |  |  |  |  |
Venues | $ | 1,692.6 |  |  | $ | 1,477.1 |  |  | $ | 1,029.0 |
Other business lines | 68.4 |  |  | 71.9 |  |  | 58.6 |
Total Topgolf | $ | 1,761.0 |  |  | $ | 1,549.0 |  |  | $ | 1,087.6 |
Golf Equipment: |  |  |  |  |
Golf clubs | $ | 1,073.5 |  |  | $ | 1,097.1 |  |  | $ | 994.5 |
Golf balls | 314.0 |  |  | 309.5 |  |  | 234.7 |
Total Golf Equipment | $ | 1,387.5 |  |  | $ | 1,406.6 |  |  | $ | 1,229.2 |
Active Lifestyle: |  |  |  |  |
Apparel | $ | 713.2 |  |  | $ | 631.7 |  |  | $ | 490.9 |
Gear, accessories & other | 423.1 |  |  | 408.4 |  |  | 325.7 |
Total Active Lifestyle | $ | 1,136.3 |  |  | $ | 1,040.1 |  |  | $ | 816.6 |
Total Consolidated | $ | 4,284.8 |  |  | $ | 3,995.7 |  |  | $ | 3,133.4 |
(1) Topgolf revenues for year ended December 31, 2021 are for the period of March 8, 2021 through January 2, 2022, due to the timing of the merger.
Venue product sales at our Topgolf operating segment include the sale of golf clubs, golf balls, apparel, and gear and accessories. During the years ended December 31, 2023, 2022, and 2021, venue product sales were $16.3 million, $18.7 million, and $12.9 million, respectively. Product and Service Revenue We sell our Golf Equipment products and Active Lifestyle products in the United States and internationally, with our principal international regions being Europe and Asia. Golf Equipment product sales are generally higher than Active Lifestyle sales in most regions except for Europe, which has a higher concentration of Active Lifestyle sales due to the Jack Wolfskin business. Venues revenue is higher in the United States due to Topgolf having significantly more domestic venues than international venues. Revenue related to other business lines at Topgolf is predominantly in the United States, in addition to certain regions within Europe. The following table summarizes revenue by geographical region (in millions):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Revenue by Major Geographic Region: |  |  |  |  |
United States | $ | 3,081.4 |  |  | $ | 2,798.0 |  |  | $ | 2,067.1 |
Europe | 540.6 |  |  | 537.4 |  |  | 499.5 |
Asia | 531.9 |  |  | 545.4 |  |  | 465.5 |
Rest of World | 130.9 |  |  | 114.9 |  |  | 101.3 |
Total | $ | 4,284.8 |  |  | $ | 3,995.7 |  |  | $ | 3,133.4 |
Licensing, Royalty and Other Income The following table summarizes all licensing, royalty and other income revenues by operating and reportable segment (in millions):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Topgolf |  | $ | 49.0 |  |  | $ | 50.3 |  |  | $ | 37.3 |
Active Lifestyle |  | 26.9 |  |  | 26.6 |  |  | 30.9 |
Total |  | $ | 75.9 |  |  | $ | 76.9 |  |  | $ | 68.2 |
Deferred Revenue Our deferred revenue balance includes short-term and long-term deferred revenue, which consists primarily of revenue from the sale of gift cards, event deposits, loyalty points, memberships and prepaid sponsorships at Topgolf, virtual currency and game credits related to digital golf games, as well as upfront territory fees and upfront franchise fees received from international franchise partners. The following table provides a reconciliation of activity related to our short-term deferred revenue balance for the periods presented (in millions):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Beginning Balance(1) |  | $ | 94.9 |  |  | $ | 93.9 |  |  | $ | 2.5 |
Deferral of revenue |  | 694.1 |  |  | 646.4 |  |  | 459.6 |
Revenue recognized |  | (651.7) |  |  | (630.2) |  |  | (360.2) |
Breakage |  | (26.3) |  |  | (19.0) |  |  | (10.3) |
Foreign currency translation and other |  | (0.1) |  |  | 3.8 |  |  | 2.3 |
Ending Balance |  | $ | 110.9 |  |  | $ | 94.9 |  |  | $ | 93.9 |
(1) 2021 Beginning Balance excludes Topgolf due to the timing of the merger.
As of December 31, 2023 and December 31, 2022, our long-term deferred revenue balance was $3.7 million and $3.2 million, respectively, which is included in other long-term liabilities on our consolidated balance sheet. The following table summarizes the amount of the deferred revenue recognized during the periods presented which were included in the balance of deferred revenue balances as of the end of the prior year reporting period (in millions):
| Year Ended December 31, |
| 2023 |  | 2022 |  | 2021 |
Deferred revenue recognized from prior period ending balance(1) | $ | 63.7 |  |  | $ | 67.0 |  |  | $ | 1.5 |  |
(1) 2021 excludes Topgolf due to the timing of the merger. |  |  |  |  |  |
Variable Consideration The following table provides a reconciliation of our short-term sales program incentives activity for the periods presented (in millions):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Beginning Balance | $ | 20.8 |  |  | $ | 23.3 |  |  | $ | 26.2 |
Additions | 40.0 |  |  | 35.7 |  |  | 32.5 |
Credits issued | (42.6) |  |  | (32.9) |  |  | (32.1) |
Foreign currency translation and other | (1.7) |  |  | (5.3) |  |  | (3.3) |
Ending Balance | $ | 16.5 |  |  | $ | 20.8 |  |  | $ | 23.3 |
Our provision for the sales return liability fluctuates with the seasonality of the business, while actual sales returns are generally more heavily weighted toward the second half of the year as the golf season comes to an end. The following table provides a reconciliation of the activity related to our sales return reserve for the periods presented (in millions):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Beginning Balance | $ | 55.4 |  |  | $ | 47.4 |  |  | $ | 44.0 |
Provision | 181.9 |  |  | 128.4 |  |  | 91.0 |
Sales returns | (181.4) |  |  | (120.4) |  |  | (87.6) |
Ending Balance | $ | 55.9 |  |  | $ | 55.4 |  |  | $ | 47.4 |
As of December 31, 2023 and December 31, 2022, the cost recovery of inventory associated with our sales return liability was $25.7 million and $25.5 million, respectively.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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