XML 57 R41.htm IDEA: XBRL DOCUMENT v3.24.0.1

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Before Income Tax Provision (Benefit)

Our income before income taxes was subject to taxes in the following jurisdictions for the following periods (in millions):

			Years Ended December 31,
			2023						2022						2021
United States			$	3.5					$	97.8					$	295.3
Foreign			31.3						44.1						55.3
Total			$	34.8					$	141.9					$	350.6

Expense (Benefit) for Income Taxes

The provision (benefit) for income taxes is comprised of (in millions):

			Years Ended December 31,
			2023						2022						2021
Current tax provision:
Federal			$	7.0					$	9.8					$	2.9
State			7.1						5.7						2.3
Foreign			6.8						6.4						14.6
			20.9						21.9						19.8
Deferred tax provision (benefit):
Federal			(36.3)						(42.6)						11.0
State			(37.0)						7.9						7.2
Foreign			(7.8)						(3.2)						(9.4)
			(81.1)						(37.9)						8.8
Income tax (benefit) provision			$	(60.2)					$	(16.0)					$	28.6

Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities as of December 31, 2023 and 2022 are as follows (in millions):

			December 31,
			2023						2022
Deferred tax assets:
Operating loss carryforwards			$	132.3					$	135.9
Tax credit carryforwards			58.7						57.3
ASC Topic 842 lease liability			461.1						441.6
Deemed landlord financing			252.3						167.5
Other			103.9						90.3
Total deferred tax assets			1,008.3						892.6
Valuation allowance for deferred tax assets			(47.7)						(100.2)
Deferred tax assets, net of valuation allowance			960.6						792.4
Deferred tax liabilities:
Basis difference related to fixed assets			(209.9)						(146.6)
Basis difference related to intangible assets with an indefinite life			(337.1)						(332.4)
ASC Topic 842 ROU assets			(425.3)						(414.7)
Other			(9.3)						(0.1)
Total deferred tax liabilities			(981.6)						(893.8)
Net deferred tax assets (liabilities) are shown on the accompanying consolidated balance sheets as follows:
Non-current deferred tax assets			15.7						16.1
Non-current deferred tax liabilities			(36.7)						(117.5)
Deferred tax liabilities, net			$	(21.0)					$	(101.4)

Credit Carryforward Expiry

As of December 31, 2023, we had federal and state income tax credit carryforwards of $46.6 million and $33.7 million, respectively, which will expire if unused at various dates beginning on December 31, 2028. Such carryforwards expire as follows (in millions):

U.S. foreign tax credit			$	2.2					2028-2033
U.S. business tax credits			$	44.4					2030-2043
State business tax credits - indefinite lived			$	29.4					Do not expire
State business tax credits - definite lived			$	4.3					2032-2047

Net Operating Losses Expiry

As of December 31, 2023, we had federal, Germany, and United Kingdom net operating losses (“NOLs”) carryforwards of $389.3 million and interest expense carryforwards of $49.9 million, respectively. Such carryforwards expire as follows (in millions):

U.S. loss carryforwards - definite lived			$	14.7					2028-2037
U.S. loss carryforwards - indefinite lived			$	179.2					Do not expire
U.S. interest expense carryforwards			$	49.9					Do not expire
Germany loss carryforwards			$	110.8					Do not expire
United Kingdom loss carryforwards			$	84.6					Do not expire

Reconciliation of Effective Tax Rate on Income or Loss and Statutory Tax Rate

A reconciliation of the effective tax rate on income or loss and the statutory tax rate is as follows:

			Years Ended December 31,
			2023						2022						2021
Statutory U.S. tax rate			21.0		%				21.0		%				21.0		%
State income taxes, net of U.S. tax benefit			(67.7)		%				7.1		%				2.1		%
Foreign income taxed at other than U.S. statutory rate			(26.0)		%				(8.9)		%				(3.3)		%
Federal tax credits			(46.6)		%				(8.7)		%				(2.0)		%
Revaluation of Company stock attributable to Topgolf merger			—		%				—		%				(15.1)		%
Other non-deductible expenses			6.0		%				1.0		%				0.7		%
Non-deductible compensation			17.9		%				4.5		%				1.4		%
U.S. Foreign tax inclusion			0.4		%				1.0		%				0.5		%
Foreign derived intangible income deduction			(7.5)		%				(3.0)		%				(2.1)		%
Stock compensation excess tax benefits			—		%				—		%				(1.6)		%
Impact of uncertain tax positions			8.5		%				(0.8)		%				(2.2)		%
Change in deferred tax valuation allowance			(88.5)		%				(23.0)		%				7.8		%
Withholding tax impacts on foreign subsidiaries			5.5		%				—		%				—		%
Other			4.3		%				(1.5)		%				1.0		%
Effective tax rate			(172.7)		%				(11.3)		%				8.2		%

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):

			2023						2022						2021
Balance at January 1			$	26.2					$	26.6					$	28.3
Additions based on tax positions related to the current year			1.8						1.7						1.7
Additions for tax positions of prior years			2.0						1.2						0.5
Reductions for tax positions of prior years			—						(1.5)						(0.9)
Settlement of tax audits			—						—						(2.7)
Current year acquisitions			—						—						6.7
Reductions due to lapsed statute of limitations			(0.7)						(1.8)						(7.0)
Balance at December 31			$	29.3					$	26.2					$	26.6

Major Jurisdictions No Longer Subject to Income Tax Examinations by Tax Authorities

We or one of our subsidiaries files income tax returns in the U.S. federal jurisdiction and various U.S. states and foreign jurisdictions. We are generally no longer subject to income tax examinations by tax authorities in our major jurisdictions as follows:

Major Tax Jurisdiction						Years No Longer Subject to Audit
U.S. Federal						2010 and prior
Germany						2013 and prior
Japan						2017 and prior
South Korea						2021 and prior
United Kingdom						2018 and prior

X

- Definition

Tabular disclosure of components comprising expense (benefit) for income taxes.

+ References

No definition available.

+ Details

Name:	ely_ScheduleOfTotalIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	ely_
Data Type:	dtr-types1:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income (loss) before income tax provision (benefit) by tax jurisdiction.

+ References

No definition available.

+ Details

Name:	ely_SummaryOfComponentsOfIncomeLossBeforeIncomeTaxesTableTextBlock
Namespace Prefix:	ely_
Data Type:	dtr-types1:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Paragraph 2
-Section 50
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-2

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Paragraph 12
-Section 50
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-12

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 217
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482663/740-10-55-217

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-15

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482663/740-10-55-217

+ Details

Name:	us-gaap_SummaryOfIncomeTaxExaminationsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-3

+ Details

Name:	us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of tax credit carryforwards available to reduce future taxable income, including amounts, expiration dates, limitations on use and the related deferred tax assets and valuation allowances.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-3

+ Details

Name:	us-gaap_SummaryOfTaxCreditCarryforwardsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration