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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
Our operating segments are based on how the Chief Executive Officer as the designated Chief Operating Decision Maker (“CODM”) makes decisions about assessing performance and allocating resources. The CODM primarily evaluates segment performance using segment operating income (loss), which is calculated by taking total segment revenues less segment operating expenses. Segment operating expenses include operating expenses directly attributable to the segment as well as certain shared corporate administration services and other costs which are allocated to the reportable segments. Segment operating expenses exclude certain non-recurring items and other costs, such as interest expense, interest income and taxes. Our CODM evaluates the profitability of each reportable segment based on segment operating income (loss) because it provides insight to operational leverage and other key operational metrics for each segment. Segment operating income (loss) is also used in the annual budget and forecasting process, and budget-to-actual and forecast-to-actual variances are considered when determining the appropriate allocation of company resources to each of our segments. The CODM does not evaluate a measure of assets when assessing segment performance.
We have three operating and reportable segments:
•Topgolf, which is primarily comprised of service revenues and expenses from our Company-owned and operated Topgolf venues, Toptracer ball-flight tracking technology, and WGT digital golf game, which was sold in December 2024;
•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, 2024, 2023, or 2022.
In December 2024, we completed the sale of Topgolf’s mobile golf game, WGT, for a sale price of $27.3 million. After transaction and closing costs, we recorded a loss on disposal of the related assets of $9.6 million, which is included within selling, general and administrative expenses on our consolidated statement of operations.
The following table contains information utilized by the CODM to evaluate our operating segments for the periods presented below (in millions):
Years Ended December 31,
202420232022
Topgolf:
Service and product revenue$1,809.4 $1,761.0 $1,549.0 
Less:
Cost of products and services, excluding depreciation and amortization196.4 196.1 194.7 
Other venue expense1,297.6 1,241.7 1,062.2 
Selling, general and administrative expense170.1 170.3 170.6 
Research and development expense16.3 18.2 14.3 
Venue pre-opening costs14.8 25.9 30.4 
Segment operating income$114.2 $108.8 $76.8 
Golf Equipment:
Product revenue$1,382.0 $1,387.5 $1,406.6 
Less:
Cost of products833.3 828.3 805.7 
Selling, general and administrative expense313.9 316.5 304.9 
Research and development expense51.2 49.4 44.6 
Segment operating income$183.6 $193.3 $251.4 
Active Lifestyle:
Product revenue$1,047.9 $1,136.3 $1,040.1 
Less:
Cost of products554.0 605.5 584.6 
Selling, general and administrative expense392.4 393.6 360.6 
Research and development expense19.1 20.2 17.5 
Segment operating income$82.4 $117.0 $77.4 
Total segment operating income380.2 419.1 405.6 
Reconciling items (1):
Topgolf Goodwill and intangible assets impairment(1,452.0)— — 
Unallocated other corporate expenses(185.4)(181.4)(148.8)
Total Reconciling items:(1,637.4)(181.4)(148.8)
Total operating (loss) income (1,257.2)237.7 256.8 
Interest expense, net(231.2)(210.2)(142.8)
Other income, net15.2 7.3 27.9 
Total (loss) income before income taxes$(1,473.2)$34.8 $141.9 
(1) Reconciling items include corporate general and administrative expenses not utilized by management in determining segment profitability, including the amortization of acquired intangible assets, goodwill and intangible assets impairment, restructuring and reorganization charges, and other non-recurring costs associated with our planned separation of Topgolf, debt modifications, integration of new IT systems stemming from acquisitions, and cybersecurity costs.
December 31,
20242023
Depreciation and amortization:
Topgolf$214.0 $183.9 
Golf Equipment18.7 19.7 
Active Lifestyle35.7 36.1 
Total depreciation and amortization$268.4 $239.7 
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.
202420232022
(in millions)
Net Revenues:
United States$3,102.5 $3,081.4 $2,798.0 
Europe511.1 540.6 537.4 
Asia487.6 531.9 545.4 
Rest of World138.1 130.9 114.9 
Total Net Revenues$4,239.3 $4,284.8 $3,995.7 
Long-Lived Assets
United States$2,112.5 $2,041.4 $1,729.0 
Europe84.9 92.9 58.8 
Asia16.4 19.2 18.8 
Rest of World5.2 3.0 3.0 
Total Long-Lived Assets$2,219.0 $2,156.5 $1,809.6