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Segment Information | 12 Months Ended
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Dec. 31, 2023
Segment Reporting [Abstract] |
Segment Information | Segment Information We have three operating and reportable segments: •Topgolf, which is primarily comprised of service revenues and expenses from our 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 •Activ e Lifestyle, 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 storage gear for sport and personal use. This segment also includes royalties from licensing of our trademarks and service marks for various soft goods products. During the second quarter of 2022, we changed the name of our Apparel, Gear, and Other operating segment to Active Lifestyle. The segment name change had no impact on the composition of our segments or on previously reported financial position, results of operations, cash flow or segment operating results. There were no sign ificant intersegment transactions during the years ended December 31, 2023, 2022, or 2021. The following table contains information utilized by management to evaluate our operating segments for the periods presented below (in millions):
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Net revenues: |  |  |  |  |
Topgolf(1) | $ | 1,761.0 |  |  | $ | 1,549.0 |  |  | $ | 1,087.6 |
Golf Equipment | 1,387.5 |  |  | 1,406.6 |  |  | 1,229.2 |
Active Lifestyle | 1,136.3 |  |  | 1,040.1 |  |  | 816.6 |
Total net revenues | $ | 4,284.8 |  |  | $ | 3,995.7 |  |  | $ | 3,133.4 |
Income before income taxes: |  |  |  |  |
Topgolf(1) | $ | 108.8 |  |  | $ | 76.8 |  |  | $ | 58.2 |
Golf Equipment | 193.3 |  |  | 251.4 |  |  | 203.9 |
Active Lifestyle | 117.0 |  |  | 77.4 |  |  | 68.5 |
Total segment operating income | 419.1 |  |  | 405.6 |  |  | 330.6 |
Reconciling Items(2) | (181.4) |  |  | (148.8) |  |  | (125.9) |
Total operating income | 237.7 |  |  | 256.8 |  |  | 204.7 |
Gain on Topgolf investment(3) | — |  |  | — |  |  | 252.5 |
Interest expense, net | (210.2) |  |  | (142.8) |  |  | (115.6) |
Other income, net | 7.3 |  |  | 27.9 |  |  | 9.0 |
Total income before income taxes | $ | 34.8 |  |  | $ | 141.9 |  |  | $ | 350.6 |
(1) On March 8, 2021, the Company completed the merger with Topgolf and has included the results of operations of Topgolf in its consolidated statements of operations and statements of financial position from that date forward.
(2) Reconciling items in 2023 include corporate general and administrative expenses not utilized by management in determining segment profitability, including reorganization charges of $12.3 million incurred during the twelve months ended December 31, 2023 to reorganize our IT functions and improve the organizational structure in our Active Lifestyle and Topgolf Segments. As of December 31, 2023, our total liability in accrued employee costs and benefits related to the reorganization was $4.0 million. Reconciling items in 2023 and 2022 also include the amortization and depreciation of acquired intangible assets, purchase accounting adjustments related to acquisitions, non-recurring costs associated with the integration of new IT systems stemming from acquisitions, and costs related to a 2023 cybersecurity incident. In addition, reconciling items in 2022 and 2021 include legal and credit agency fees related to the postponement of our debt refinancing, and charges related to the suspension of our Jack Wolfskin retail business in Russia due to the Russia-Ukraine war and the closure of a pre-merger Topgolf concept location. 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 4).
| December 31,
| 2023 |  | 2022
Inventory: |  |  |
Topgolf | $ | 50.2 |  |  | $ | 38.2 |
Golf Equipment | 454.2 |  |  | 567.2 |
Active Lifestyle | 290.0 |  |  | 353.8 |
Total inventory | $ | 794.4 |  |  | $ | 959.2 |
Property, Plant, & Equipment, net: |  |  |
Topgolf | $ | 1,963.0 |  |  | $ | 1,612.4 |
Golf Equipment | 102.5 |  |  | 106.5 |
Active Lifestyle | 91.0 |  |  | 90.7 |
Total property, plant, & equipment, net | $ | 2,156.5 |  |  | $ | 1,809.6 |
Goodwill & Intangibles, net: |  |  |
Topgolf | $ | 2,427.6 |  |  | $ | 2,421.3 |
Golf Equipment | 621.5 |  |  | 620.6 |
Active Lifestyle | 445.1 |  |  | 445.5 |
Total goodwill & intangibles, net | $ | 3,494.2 |  |  | $ | 3,487.4 |
Additions to long-lived assets: |  |  |
Topgolf | $ | 503.1 |  |  | $ | 490.4 |
Golf Equipment | 8.1 |  |  | 13.8 |
Active Lifestyle | 20.2 |  |  | 22.4 |
Corporate | 57.7 |  |  | 36.3 |
Total additions to long-lived assets | $ | 589.1 |  |  | $ | 562.9 |
Depreciation and amortization: |  |  |
Topgolf | $ | 183.9 |  |  | $ | 143.8 |
Golf Equipment | 19.7 |  |  | 20.7 |
Active Lifestyle | 36.1 |  |  | 28.3 |
Total depreciation and amortization | $ | 239.7 |  |  | $ | 192.8 |
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.
| 2023 |  | 2022 |  | 2021
| (in millions)
Net Revenues: |  |  |  |  |
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 Net Revenues | $ | 4,284.8 |  |  | $ | 3,995.7 |  |  | $ | 3,133.4 |
Long-Lived Assets |  |  |  |  |
United States | $ | 2,041.4 |  |  | $ | 1,729.0 |  |  | $ | 1,383.6 |
Europe | 92.9 |  |  | 58.8 |  |  | 48.9 |
Asia | 19.2 |  |  | 18.8 |  |  | 7.2 |
Rest of World | 3.0 |  |  | 3.0 |  |  | 11.7 |
Total Long-Lived Assets | $ | 2,156.5 |  |  | $ | 1,809.6 |  |  | $ | 1,451.4 |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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