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Segment Information
 12 Months Ended
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
•Active 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 significant 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,
202320222021
Net revenues:
Topgolf(1)
$1,761.0 $1,549.0 $1,087.6 
Golf Equipment1,387.5 1,406.6 1,229.2 
Active Lifestyle1,136.3 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 Equipment193.3 251.4 203.9 
Active Lifestyle117.0 77.4 68.5 
Total segment operating income419.1 405.6 330.6 
Reconciling Items(2)
(181.4)(148.8)(125.9)
Total operating income237.7 256.8 204.7 
Gain on Topgolf investment(3)
— — 252.5 
Interest expense, net(210.2)(142.8)(115.6)
Other income, net7.3 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,
20232022
Inventory:
Topgolf$50.2 $38.2 
Golf Equipment454.2 567.2 
Active Lifestyle290.0 353.8 
Total inventory$794.4 $959.2 
Property, Plant, & Equipment, net:
Topgolf$1,963.0 $1,612.4 
Golf Equipment102.5 106.5 
Active Lifestyle91.0 90.7 
Total property, plant, & equipment, net$2,156.5 $1,809.6 
Goodwill & Intangibles, net:
Topgolf$2,427.6 $2,421.3 
Golf Equipment621.5 620.6 
Active Lifestyle445.1 445.5 
Total goodwill & intangibles, net$3,494.2 $3,487.4 
Additions to long-lived assets:
Topgolf$503.1 $490.4 
Golf Equipment8.1 13.8 
Active Lifestyle20.2 22.4 
Corporate57.7 36.3 
Total additions to long-lived assets$589.1 $562.9 
Depreciation and amortization:
Topgolf$183.9 $143.8 
Golf Equipment19.7 20.7 
Active Lifestyle36.1 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.
202320222021
(in millions)
Net Revenues:
United States$3,081.4 $2,798.0 $2,067.1 
Europe540.6 537.4 499.5 
Asia531.9 545.4 465.5 
Rest of World130.9 114.9 101.3 
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 
Europe92.9 58.8 48.9 
Asia19.2 18.8 7.2 
Rest of World3.0 3.0 11.7 
Total Long-Lived Assets$2,156.5 $1,809.6 $1,451.4