0000837465-21-000009 | 10-Q | XBRL Viewer

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Cover Page	9 Months Ended
Cover Page	Sep. 30, 2021 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-10962
Entity Registrant Name	Callaway Golf Company
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-3797580
Entity Address, Address Line One	2180 Rutherford Road
Entity Address, City or Town	Carlsbad
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92008
City Area Code	760
Local Phone Number	931-1771
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	ELY
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	186,013,802
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000837465
Current Fiscal Year End Date	--12-31

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 508,177	$ 366,119
Restricted cash	1,754	0
Accounts receivable, net	255,223	138,482
Inventories	385,311	352,544
Prepaid expenses	48,161	20,318
Other current assets	140,785	35,164
Total current assets	1,339,411	912,627
Property, plant and equipment, net	1,330,326	146,495
Operating lease right-of-use assets, net	1,066,124	194,776
Intangible assets, net	1,537,047	484,339
Goodwill	2,025,175	56,658
Investment in golf-related venture	9,250	111,442
Other assets	90,046	74,263
Total assets	7,397,379	1,980,600
Current liabilities:
Accounts payable and accrued expenses	453,638	276,209
Accrued employee compensation and benefits	115,946	30,937
Asset-based credit facilities	30,108	22,130
Operating lease liabilities, short-term	55,507	29,579
Construction advances	54,264	0
Deferred revenue	84,359	2,546
Other current liabilities	46,333	29,871
Total current liabilities	840,155	391,272
Long-term liabilities:
Long-term debt, net (Note 7)	1,049,019	650,564
Operating lease liabilities, long-term	1,181,443	177,996
Deemed landlord financing, long-term	12,121	447
Deferred taxes, net	241,205	58,628
Other long-term liabilities	51,604	26,496
Commitments and contingencies (Note 14)
Shareholders’ equity:
Preferred stock, $0.01 par value, 3,000,000 shares authorized, none issued and outstanding at September 30, 2021 and December 31, 2020	0	0
Common stock, $0.01 par value, 360,000,000 shares authorized, 186,031,283 and 95,648,648 shares issued at September 30, 2021 and December 31, 2020, respectively	1,860	956
Additional paid-in capital	3,037,609	346,945
Retained earnings	708,391	360,228
Accumulated other comprehensive loss	(25,422)	(6,546)
Less: Common stock held in treasury, at cost, 17,481 and 1,446,408 shares at September 30, 2021 and December 31, 2020, respectively	(512)	(25,939)
Total shareholders’ equity	3,721,926	675,644
Total liabilities and shareholders’ equity	7,397,379	1,980,600
Deemed Landlord Finance Lease
Long-term liabilities:
Deemed landlord financing, long-term	$ 312,027	$ 0

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Shareholders’ equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	3,000,000	3,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	360,000,000	360,000,000
Common stock, shares issued (in shares)	186,031,283	95,648,648
Common stock held in treasury, shares (in shares)	17,481	1,446,408

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net revenues:
Total net revenues	$ 856,461	$ 475,559	$ 2,421,723	$ 1,214,831
Costs and expenses:
Other venue expenses	215,841	0	483,617	0
Selling, general and administrative expenses	217,736	127,085	612,740	384,054
Research and development expense	15,753	10,139	48,769	33,399
Goodwill and trade name impairment	0	0	0	174,269
Venue pre-opening costs	2,687	0	9,376	0
Total costs and expenses	780,451	412,050	2,162,345	1,288,091
Income (loss) from operations	76,010	63,509	259,378	(73,260)
Interest income	77	178	319	396
Interest expense	(28,807)	(12,905)	(75,382)	(34,401)
Gain on Topgolf investment	0	0	252,531	0
Other income, net	2,958	7,010	9,487	27,487
Income (loss) before income taxes	50,238	57,792	446,333	(79,778)
Income tax provision	66,229	5,360	98,119	6,580
Net income (loss)	$ (15,991)	$ 52,432	$ 348,214	$ (86,358)
Earnings (loss) per common share:
Basic (in dollars per share)	$ (0.09)	$ 0.56	$ 2.13	$ (0.92)
Diluted (in dollars per share)	$ (0.09)	$ 0.54	$ 2.03	$ (0.92)
Weighted-average common shares outstanding:
Basic (in shares)	185,963	94,171	163,141	94,207
Diluted (in shares)	185,963	96,612	171,194	94,207
Products
Net revenues:
Total net revenues	$ 527,064	$ 475,559	$ 1,678,432	$ 1,214,831
Costs and expenses:
Cost of products	288,364	274,826	914,002	696,369
Services
Net revenues:
Total net revenues	329,397	0	743,291	0
Costs and expenses:
Cost of services, excluding depreciation and amortization	$ 40,070	$ 0	$ 93,841	$ 0

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (15,991)	$ 52,432	$ 348,214	$ (86,358)
Other comprehensive income (loss):
Change in derivative instruments	541	(593)	7,258	(14,635)
Foreign currency translation adjustments	(12,929)	9,128	(23,206)	2,347
Comprehensive income (loss), before income tax on other comprehensive income items	(28,379)	60,967	332,266	(98,646)
Income tax provision (benefit) on derivative instruments	1,340	66	2,928	(3,387)
Comprehensive income (loss)	$ (29,719)	$ 60,901	$ 329,338	$ (95,259)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income (loss)	$ 348,214	$ (86,358)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	107,919	28,668
Lease amortization expense	45,996	24,293
Amortization of debt issuance costs	4,042	3,024
Debt discount amortization	10,255	3,857
Impairment loss	0	174,269
Deferred taxes, net	86,982	(117)
Non-cash share-based compensation	27,113	8,066
Loss on disposal of long-lived assets	194	297
Gain on Topgolf investment	(252,531)	0
Gain on conversion of note receivable	0	(1,252)
Unrealized net gains on hedging instruments and foreign currency	(2,659)	(8,899)
Acquisition costs	(16,199)	0
Change in assets and liabilities, net of effect from acquisitions:
Accounts receivable, net	(111,049)	(96,344)
Inventories	(27,280)	135,976
Leasing receivables	(16,387)	0
Other assets	(57,943)	11,097
Accounts payable and accrued expenses	71,230	(40,855)
Deferred revenue	18,985	813
Accrued employee compensation and benefits	46,930	(13,252)
Payments on operating leases	(37,658)	(21,181)
Income taxes receivable/payable, net	2,679	43
Other liabilities	(2,029)	406
Net cash provided by operating activities	246,804	122,551
Cash flows from investing activities:
Cash acquired in merger	171,294	0
Capital expenditures	(198,896)	(30,911)
Investment in golf-related ventures	0	(19,999)
Proceeds from sales of property and equipment	0	8
Proceeds from sale of investment in golf-related ventures	18,591	0
Net cash used in investing activities	(9,011)	(50,902)
Cash flows from financing activities:
Repayments of long-term debt	(160,860)	(8,203)
Proceeds from issuance of long-term debt	20,000	37,728
Proceeds from (repayments of) credit facilities, net	7,978	(114,345)
Proceeds from issuance of convertible notes	0	258,750
Premium paid for capped call confirmations	0	(31,775)
Debt issuance cost	(5,441)	(9,143)
Payment on contingent earn-out obligation	(3,577)	0
Repayments of financing leases	(465)	(530)
Proceeds from lease financing	49,508	0
Exercise of stock options	19,520	130
Dividends paid	(3)	(1,891)
Acquisition of treasury stock	(12,938)	(22,143)
Net cash (used in) provided by financing activities	(86,278)	108,578
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(3,775)	(237)
Net increase in cash, cash equivalents and restricted cash	147,740	179,990
Cash, cash equivalents and restricted cash at beginning of period	366,119	106,666
Cash, cash equivalents and restricted cash at end of period	513,859	286,656
Supplemental disclosures:
Cash paid for income taxes, net	8,021	2,935
Cash paid for interest and fees	68,124	23,704
Non-cash investing and financing activities:
Issuance of treasury stock and common stock for compensatory stock awards released from restriction	18,320	19,609
Accrued capital expenditures at period-end	36,750	777
Financed additions of capital expenditures	53,892	0
Issuance of common stock in Topgolf merger	$ 2,650,201	$ 0

CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Restricted Stock	Options and Restricted Stock	Common Stock	Common Stock Options and Restricted Stock	Additional Paid-in Capital	Additional Paid-in Capital Restricted Stock	Additional Paid-in Capital Options and Restricted Stock	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Treasury Stock
Balance at beginning of period (in shares) at Dec. 31, 2019				95,649							1,451
Balance at beginning of period at Dec. 31, 2019	$ 767,353			$ 956		$ 323,600			$ 489,382	$ (22,422)	$ (24,163)
Balance at beginning of period (ASU 2016-13 (Topic 326)) at Dec. 31, 2019	(289)								(289)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Acquisition of treasury stock	(22,143)										$ (22,143)
Acquisition of treasury stock (in shares)											(1,178)
Share-based compensation	8,066					8,066
Exercise of stock options (in shares)											20
Exercise of stock options	130					(203)					$ 333
Compensatory awards released from restriction (in shares)											1,138
Compensatory awards released from restriction	0					(19,609)					$ 19,609
Stock dividends	0					4			(39)		$ 35
Stock dividends (in shares)											2
Cash dividends	(1,891)								(1,891)
Equity adjustment from foreign currency translation	2,347									2,347
Change in fair value of derivative instruments, net of tax	(11,248)									(11,248)
Equity component of convertible notes, net of issuance costs and tax	57,080					57,080
Premiums paid for capped call confirmations, net of tax	(24,513)					(24,513)
Net income (loss)	(86,358)								(86,358)
Balance at end of period (in shares) at Sep. 30, 2020				95,649							1,469
Balance at end of period at Sep. 30, 2020	688,534			$ 956		344,425			400,805	(31,323)	$ (26,329)
Balance at beginning of period (in shares) at Jun. 30, 2020				95,649							1,485
Balance at beginning of period at Jun. 30, 2020	624,548			$ 956		341,615			348,376	(39,792)	$ (26,607)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Acquisition of treasury stock	(190)										$ (190)
Acquisition of treasury stock (in shares)											(10)
Share-based compensation	3,272					3,272
Compensatory awards released from restriction (in shares)											26
Compensatory awards released from restriction	0					(466)					$ 466
Stock dividends	0					1			(3)		$ 2
Equity adjustment from foreign currency translation	9,128									9,128
Change in fair value of derivative instruments, net of tax	(659)									(659)
Equity component of convertible notes, net of issuance costs and tax	3					3
Net income (loss)	52,432								52,432
Balance at end of period (in shares) at Sep. 30, 2020				95,649							1,469
Balance at end of period at Sep. 30, 2020	688,534			$ 956		344,425			400,805	(31,323)	$ (26,329)
Balance at beginning of period (in shares) at Dec. 31, 2020				95,649							1,446
Balance at beginning of period at Dec. 31, 2020	675,644			$ 956		346,945			360,228	(6,546)	$ (25,939)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Acquisition of treasury stock	(12,938)					331					$ (13,269)
Acquisition of treasury stock (in shares)											(426)
Common stock issued during period (in shares)				89,776	188
Common stock issued during period	2,650,201		$ 0	$ 898	$ 2	2,649,303		$ (2)
Share-based compensation	27,113	$ 33,051				27,113	$ 33,051
Exercise of stock options (in shares)				379							911
Exercise of stock options	19,520			$ 4		(836)					$ 20,352
Compensatory awards released from restriction (in shares)				39							943
Compensatory awards released from restriction	0					(18,320)					$ 18,320
Stock dividends	0					24			(48)		$ 24
Stock dividends (in shares)											1
Cash dividends	(3)								(3)
Equity adjustment from foreign currency translation	(23,206)									(23,206)
Change in fair value of derivative instruments, net of tax	4,330									4,330
Net income (loss)	348,214								348,214
Balance at end of period (in shares) at Sep. 30, 2021				186,031							17
Balance at end of period at Sep. 30, 2021	3,721,926			$ 1,860		3,037,609			708,391	(25,422)	$ (512)
Balance at beginning of period (in shares) at Jun. 30, 2021				185,940							3
Balance at beginning of period at Jun. 30, 2021	3,739,463			$ 1,859		3,024,995			724,393	(11,694)	$ (90)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Acquisition of treasury stock	(400)					78					$ (478)
Acquisition of treasury stock (in shares)											(17)
Share-based compensation	11,465					11,465
Exercise of stock options (in shares)				52							2
Exercise of stock options	1,117			$ 1		1,065					$ 51
Compensatory awards released from restriction (in shares)				39							1
Compensatory awards released from restriction	0					(5)					$ 5
Stock dividends	0					11			(11)		$ 0
Equity adjustment from foreign currency translation	(12,929)									(12,929)
Change in fair value of derivative instruments, net of tax	(799)									(799)
Net income (loss)	(15,991)								(15,991)
Balance at end of period (in shares) at Sep. 30, 2021				186,031							17
Balance at end of period at Sep. 30, 2021	$ 3,721,926			$ 1,860		$ 3,037,609			$ 708,391	$ (25,422)	$ (512)

CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Statement of Stockholders' Equity [Abstract]
Cash dividends (in dollars per share)	$ 0.01	$ 0.01

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 1. Basis of Presentation The accompanying unaudited consolidated condensed financial statements have been prepared by Callaway Golf Company (the “Company” or “Callaway Golf”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “Commission”). Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Commission. These consolidated condensed financial statements, in the opinion of management, include all the normal and recurring adjustments necessary for the fair presentation of the financial position, results of operations and cash flows for the periods and dates presented. Interim operating results are not necessarily indicative of operating results for the full year. On March 8, 2021, the Company completed the merger with Topgolf International, Inc. (“Topgolf”) and has included the results of operations of Topgolf in its consolidated condensed statements of operations from that date forward. The Company’s Topgolf subsidiary operates on a 52- or 53-week fiscal year ending on the Sunday closest to December 31. As such, the Topgolf financial information included in the Company's consolidated condensed financial statements for the three and nine months ended September 30, 2021 is from July 5, 2021 through October 3, 2021 and March 8, 2021 through October 3, 2021, respectively. Additionally, based on the Company's assessment of the combined business, the Company modified the presentation of its consolidated condensed statements of operations for the three and nine months ended September 30, 2021 and 2020, and its consolidated condensed balance sheets as of September 30, 2021 and December 31, 2020. For further information about the merger with Topgolf, see Note 6. In connection with the merger, the Company reassessed its operating segments by evaluating its global business platform, including its management structure after the addition of Topgolf, and determined the Company has three operating segments, namely, Golf Equipment; Apparel, Gear and Other; and Topgolf. For further information about the Company's operating segments, see Note 19.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

The following reflects updates to the Company’s significant accounting policies disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Commission.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Examples of such estimates include determining the nature and timing of satisfaction of performance obligations as it relates to revenue recognition, the valuation of share-based awards, recoverability of long-lived assets, assessing intangible assets and goodwill for impairment, determining the incremental borrowing rate for operating and financing leases, in addition to provisions for warranty, expected credit losses, inventory obsolescence, sales returns, future price concessions, and tax contingencies and valuation allowances as well the estimated useful lives of property, plant and equipment and acquired intangible assets. Actual results may materially differ from these estimates. On an ongoing basis, the Company reviews its estimates to ensure that these estimates appropriately reflect changes in its business or as new information becomes available.

Recent Accounting Standards

In July 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-05, “Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments” which requires lessors to classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: (1) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in ASC 842-10-25-2 through 25-3; and (2) the lessor

would have otherwise recognized a day-one loss. The amendments are effective for annual periods beginning after December 15, 2021 with early adoption permitted. The Company is currently assessing the impact of this ASU on its consolidated condensed financial statements.

In August 2020, FASB issued ASU No. 2020-06, "Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity." This ASU simplifies the accounting for convertible instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost. These changes will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that was bifurcated according to previously existing rules. Also, this ASU requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method will be no longer available. The new guidance is effective for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. Entities may adopt the guidance through either a modified retrospective method of transition or a fully retrospective method of transition. In applying the modified retrospective method, entities should apply the guidance to transactions outstanding as of the beginning of the fiscal year in which the amendments are adopted. The Company is currently assessing the impact this ASU will have on its consolidated condensed financial statements. The Company anticipates adopting the modified retrospective approach, which may result in a significant increase in its dilutive share-count as the result of calculating the impact of dilution from its convertible notes using the if-converted method. The Company also anticipates a decrease in interest expense resulting from the elimination of the original issuance discount. Under the modified retrospective approach, the Company anticipates recognizing the difference between the removal of the equity component of the convertible notes and the unamortized original issuance discount as an adjustment to beginning retained earnings when it adopts this new standard on January 1, 2022.

Adoption of New Accounting Standards

The Company adopted ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This ASU provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Inter-bank Offered Rate ("LIBOR") or another reference rate expected to be discontinued. In January 2021, the FASB issued Accounting Standards Update ("ASU") 2021-01, "Reference Rate Reform (Topic 848): Scope." This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. The Company has elected to apply the hedge accounting expedients related to the probability and the assessments of effectiveness of LIBOR-indexed cash flow hedges upon a change in the critical terms of the derivative or the hedged transactions, and upon the end of relief under Topic 848. The Company has elected to continue the method of assessing effectiveness as documented in the original hedge documentation and elects to apply the expedient in ASC 848-50-35-17 (through 35-18) which allows the reference rate on the hypothetical derivative to match the reference rate on the hedging instrument. The adoption of this ASU did not have a material impact on the Company's consolidated condensed financial statements and disclosures.

The Company adopted ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This ASU removes specific exceptions to the general principles in Accounting Standards Codification ("ASC") Topic 740, "Accounting for Income Taxes" ("Topic 740") and simplifies certain U.S. GAAP requirements. This ASU did not have a material impact on the Company's consolidated condensed financial statements or disclosures.

Significant Accounting Policies

Leases

The Company leases office space, manufacturing plants, warehouses, distribution centers, Company-operated Topgolf venues, vehicles, and equipment, as well as retail and/or outlet locations related to the TravisMathew and Jack Wolfskin businesses and the apparel business in Japan. Certain real estate leases include one or more options to extend the lease term, options to purchase the leased property at the Company's sole discretion or escalation clauses that increase the rent payments over the lease term. When deemed reasonably certain of exercise, the renewal and purchase options are

included in the determination of the lease term and lease payment obligation, respectively. The depreciable life of machinery and equipment, computer equipment and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. Certain leases may require an additional contingent rent payment based on a percentage of total gross sales greater than certain specified threshold amounts. The Company recognizes contingent rent expense when it is probable that sales thresholds will be reached during the fiscal year. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Right-of-use ("ROU") assets represent the right to use an underlying asset during the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. When readily determinable, the Company uses the rate implicit in the lease agreement in determining the present value of minimum lease payments. If the implicit rate is not provided, the Company uses its incremental borrowing rate based on information available at the lease commencement date, including the lease term. At the commencement of a lease, the ROU asset for operating leases is measured by taking the sum of the present value of the lease liability, initial direct costs (if any) and prepaid lease payments (if any) and deducting lease incentives (if any). After the lease commencement date and over the lease term, lease expense is recognized as a single lease cost on a straight-line basis. Lease agreements related to properties are generally comprised of lease components and non-lease components. Non-lease components, such as common area maintenance charges, property taxes and insurance, are expensed as incurred and recognized separately from the straight-line lease expense. Variable lease payments that do not depend on an index or rate, such as rental payments based on a percentage of retail revenue over contractual levels, are expensed separately as incurred, and are not included in the measurement of the ROU asset and lease liability. Variable lease payments that depend on an index or rate, such as rates that are adjusted periodically for inflation, are included in the initial measurement of the ROU asset and lease liability and are recognized on a straight-line basis over the lease term.

In certain venue leasing arrangements, due to the Company’s involvement in the construction of leased assets, the Company is considered the owner of the leased assets for accounting purposes. In such cases, in addition to capitalizing the Company’s construction costs, the Company capitalizes the construction costs funded by the landlord related to its leased premises and recognizes a corresponding liability for those costs as construction advances during the construction period. At the end of the construction period, the Company applies sale and leaseback guidance to determine whether the underlying asset should be derecognized. When the application of the sale and leaseback guidance results in a sale, the asset and liability on the Company’s balance sheet are derecognized. When the application of the sale and leaseback guidance results in a failed sale, the asset remains on the Company’s balance sheet and is depreciated over its respective useful life or the lease term, whichever is shorter, and the liability is accounted for as a deemed landlord financing ("DLF") obligation. These DLF obligations are generally non-cancelable leases with initial terms of 20 years containing various renewal options following the initial term and escalation clauses that increase the payments over the lease term.

With respect to the Company’s Toptracer operations, the Company enters into non-cancelable license agreements that provide software and hardware to driving ranges and golf courses. These license agreements provide the customer the right to use Company-owned software and hardware products for a specified period generally ranging from three to five years. The software and hardware are a distinct bundle of goods that are highly interrelated. At the inception of the arrangement, lease classification is assessed, which generally results in the license agreements being classified as sales-type leases. Upon lease commencement for sales-type leases, revenue is recognized for the software and hardware as a single component, and a leasing receivable is recorded consisting of the present value of payments over the non-cancellable term. Interest income on the leasing receivable is recognized over the lease term.

Revenue Recognition

The Company accounts for revenue recognition of products and services in accordance with ASC Topic 606, "Revenue from Contracts with Customers." See Note 4.

Product Revenue

The Company recognizes revenue from the sale of its golf clubs, golf balls, lifestyle and outdoor apparel, gear and accessories and golf apparel and accessories when it satisfies the terms of a sales order from a customer, and transfers control of the products ordered to the customer. Control transfers when products are shipped, and in certain cases, when products are received by customers under certain contract terms. In addition, the Company recognizes revenue at the point

of sale on transactions with consumers at its retail locations and retail shops at Topgolf locations. Sales taxes, value added taxes and other taxes that are collected in connection with revenue transactions are withheld and remitted to the respective taxing authorities. As such, these taxes are excluded from revenue. The Company elected to account for shipping and handling as activities to fulfill the promise to transfer the good. Therefore, shipping and handling fees that are billed to customers are recognized in revenue and the associated shipping and handling costs are recognized in cost of products as soon as control of the goods transfers to the customer.

The Company, in exchange for a royalty fee, licenses its trademarks and service marks to third parties for use on products such as golf apparel and footwear, practice aids and other golf accessories. Royalty income is recognized over time as underlying product sales occur, subject to certain minimum royalties, in accordance with the related licensing arrangements. Royalty income is included in the Company's Apparel, Gear and Other operating segment.

Revenues from gift cards are deferred and recognized when the cards are redeemed for product purchases. The Company’s gift cards have no expiration date. The Company recognizes revenue from unredeemed gift cards, otherwise known as breakage, when the likelihood of redemption becomes remote and under circumstances that comply with any applicable state escheatment laws. To determine when redemption is remote, the Company analyzes an aging of unredeemed cards (based on the date the card was last used or the activation date if the card has never been used) and compares that information with historical redemption trends. The Company uses this historical redemption rate to recognize breakage on unredeemed gift cards over the redemption period. The Company does not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions used to determine the timing of recognition of gift card revenues.

Services Revenue

The Company recognizes revenue from the operation of its Topgolf venues consisting primarily of revenues from food and beverage sales, event deposits, fees charged for gameplay, purchases of game credits and membership fees. In addition, services revenues are recognized through the redemption of gift cards, sponsorship contracts, franchise fees, leasing revenue, the Company’s World Golf Tour ("WGT") digital golf game and non-refundable deposits for venue reservations.

The Company's food and beverage revenue is recognized at the time of sale. Event deposits received from guests attributable to food and beverage purchases are deferred and recognized as revenue when the event is held. Food and beverage revenues are presented net of discounts. All sales taxes collected from guests are excluded from revenue in the consolidated condensed statements of operations and the obligation is included in accounts payable and accrued expenses on the Company’s consolidated condensed balance sheets until the taxes are remitted to the appropriate taxing authorities.

Fees charged for gameplay are recognized at the time of purchase. Event deposits received from guests attributable to gameplay purchases are deferred and recognized as revenue when the event is held. Purchases of game credits are deferred and recognized as revenue when: (i) the game credits are redeemed by the guest; or (ii) the likelihood of the game credits being redeemed by the guest is remote (“game credit breakage”). The Company uses historic game credit redemption patterns to determine the likelihood of game credit redemption and game credit breakage. Game credit breakage is recorded consistent with the historic redemption pattern.

Membership fees received from guests are deferred and recognized as revenue over the estimated life of the associated membership, which is one year or less.

Revenues from gift cards to purchase for food and beverage or gameplay at Topgolf locations are deferred and recognized when the cards are redeemed, consistent with the gift card policy on product revenues.

The Company enters into sponsorship contracts that provide advertising opportunities to market to Topgolf guests in the form of custom displays, lobby displays, digital and print posters and other advertising at Topgolf venues and on Topgolf websites. Sponsorship contracts are typically for a fixed price over a specified length of time and revenue is generally recognized ratably over the contract period unless there is a different predominate pattern of performance.

The Company enters into international development agreements that grant franchise partners the right to develop, open and operate a certain number of venues within a particular geographic area. The franchise partner may be required to pay a territory fee upon entering into a development agreement and a franchise fee for each developed venue. The franchisee will also pay ongoing royalty fees based upon a percentage of sales. The franchise fees are recognized over the

franchise term for each venue, which generally ranges from 15 to 20 years. Revenue from sales-based royalties is recognized as the related sales occur.

Leasing revenue is recognized on non-cancelable sales-type lease agreements related to the licensing of Toptracer software and hardware to driving ranges and golf courses. See discussion above on sales-type leases.

The Company’s WGT digital golf game is a live service that allows players to play for free via web and mobile gaming platforms. Within the WGT digital golf game, players can purchase virtual currency to obtain virtual goods to enhance their game-playing experience. Revenues from purchases of virtual currency are deferred at the point of purchase and recognized as revenue over the average life of a player, determined using historic gameplay activity patterns.

Non-refundable deposits received for venue reservations are recognized at the time of purchase.

Variable Consideration

The Company offers certain discounts and promotions on its products and services. The amount of revenue the Company recognizes is based on the amount of consideration it expects to receive from customers. The amount of consideration is the sales price adjusted for estimates of variable consideration, including sales returns, discounts, and allowances as well as sales programs, sales promotions and price concessions that are offered by the Company as described below. These estimates are based on the amounts earned or to be claimed by customers on the related sales and are therefore recorded as reductions to net revenue and trade accounts receivable.

The Company’s primary sales program, the “Preferred Retailer Program,” offers potential rebates and discounts for participating retailers in exchange for providing certain benefits to the Company, including the maintenance of agreed upon inventory levels, prime product placement and retailer staff training. Under this program, qualifying retailers can earn either discounts or rebates based upon the amount of product purchased. Discounts are applied and recorded at the time of sale. For rebates, the Company estimates the amount of variable consideration related to the rebate at the time of sale based on the customer’s estimated qualifying current year product purchases. The estimate is based on the historical level of purchases, adjusted for any factors expected to affect the current year purchase levels. The estimated year-end rebate is adjusted quarterly based on actual purchase levels, as necessary. The Preferred Retailer Program is generally short-term in nature and the actual amount of rebate to be paid under this program is known as of the end of the year and paid to customers shortly after year-end. Historically, the Company's actual amount of variable consideration related to its Preferred Retailer Program has not been materially different from its estimates.

The Company also offers short-term sales program incentives, which include sell-through promotions and price concessions or price reductions. Sell-through promotions are generally offered throughout the product's life cycle of approximately two years, and price concessions or price reductions are generally offered at the end of the product's life cycle. The estimated variable consideration related to these programs is based on a rate that includes historical and forecasted data. The Company records a reduction to product revenues using this rate at the time of the sale. The Company monitors this rate against actual results and forecasted estimates and adjusts the rate as deemed necessary to reflect the amount of consideration it expects to receive from its customers. There were no material changes to the rate during the three months ended September 30, 2021 and 2020. Historically, the Company's actual amount of variable consideration related to these sales programs has not been materially different from its estimates.

The Company records an estimate for anticipated returns as a reduction of sales and cost of sales, and accounts receivable, in the period that the related sales are recorded. Sales returns are estimated based upon historical returns, current economic trends, changes in customer demands and sell-through of products. The Company also offers certain customers sales programs that allow for specific returns. The Company records a return liability as an offset to accounts receivable for anticipated returns related to these sales programs at the time of the sale based on the terms of the sales program. The cost recovery of inventory associated with this reserve is accounted for in other current assets. Historically, the Company’s actual sales returns have not been materially different from management’s original estimates.

Cost of Products

The Company’s cost of products is comprised primarily of variable costs that fluctuate with sales volumes, including raw materials and component costs, merchandise from third parties, conversion costs including direct labor and manufacturing overhead, and inbound freight, duties, and shipping charges. In addition, cost of products includes retail merchandise costs for products sold in retail shops within Topgolf venue facilities. Fixed overhead expenses include warehousing costs, indirect labor, and supplies, as well as depreciation expense associated with assets used to manufacture

and distribute products. In addition, cost of products includes adjustments to reflect inventory at its net realizable value, as well as adjustments for obsolescence and product warranties.

Cost of Services, Excluding Depreciation and Amortization

The Company’s cost of services primarily consists of food and beverage costs and transaction fees with respect to in-app purchases within the Company’s WGT digital golf game. In addition, cost of services includes costs associated with Topgolf's Toptracer license agreements classified as sales-type leases. Food and beverage costs are variable by nature, change with sales volume, and are impacted by product mix and commodity pricing. Cost of services excludes employee costs as well as depreciation and amortization.

Other Venue Expenses

Other venue expenses consist of salaries and wages, bonuses, commissions, payroll taxes, and other employee costs that directly support venue operations, in addition to rent and occupancy costs, property taxes, depreciation associated with venues, supplies, credit card fees and marketing expenses. Other venue expenses include both fixed and variable components and are therefore not directly correlated with revenue.

Venue Pre-Opening Costs

Pre-opening costs primarily include costs associated with activities prior to the opening of a new Company-operated venue, as well as other costs that are not considered in the evaluation of ongoing performance. Pre-opening costs consist of, but are not limited to, labor, rent, occupancy costs, travel and marketing expenses. Pre-opening costs fluctuate based on the timing, size and location of new Company-operated venues.

Selling, General and Administrative Expenses (SG&A)

SG&A expenses are comprised primarily of employee costs, advertising and promotional costs, tour expenses, legal and professional fees, travel expenses, building and rent expenses, depreciation charges (excluding those related to manufacturing and distribution operations), amortization of intangible assets, and other miscellaneous expenses.

Research and Development

Research and development expenses are comprised of costs to develop or significantly improve the Company's products and technology, which primarily include the salaries and wages of personnel engaged in research and development activities, research costs and depreciation expense. Other than software development costs qualifying for capitalization, research and development costs are expensed as incurred.

Restricted Cash

Restricted cash is primarily comprised of deposits associated with gift cards as required under certain statutory mandates, and lender impound reserve accounts for the development of one of the Company’s venues. Long-term restricted cash is included in other assets on the accompanying consolidated condensed balance sheet as of September 30, 2021. The Company had no restricted cash as of December 31, 2020. The following is a summary of cash, cash equivalents and restricted cash as of September 30, 2021 and December 31, 2020 (in thousands):


	September 30, 2021		December 31, 2020
Cash and cash equivalents	$	508,177	$	366,119
Restricted cash, short-term	1,754		—
Restricted cash, long-term	3,928		—
Total cash, cash equivalents and restricted cash	$	513,859	$	366,119

Inventories

Unless otherwise stated below, the Company's inventory is recorded at the lower of cost or net realizable value, which includes a reserve for excess, obsolete and/or unmarketable inventory. This reserve is regularly assessed based on current inventory levels, sales trends, and historical experience, as well as management’s estimates of market conditions and forecasts of future product demand, all of which are subject to change. The Company utilizes the standard costing method, determined on the first-in, first-out basis, for its golf equipment inventory and soft goods inventory sold under the TravisMathew, OGIO, Callaway and Jack Wolfskin brands. Golf equipment inventory, which is directly manufactured by the Company, includes finished goods, raw materials, labor and manufacturing overhead costs and work in process. The

Company's soft goods product lines, which are manufactured by third-party contractors, primarily include finished good products. Toptracer hardware and software, food and beverage products and Topgolf-specific retail merchandise inventories are stated at weighted average cost.

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives generally as follows:


Buildings and improvements			10-40 years
Machinery and equipment			5-10 years
Furniture, computer hardware and equipment			3-5 years
Internal-use software			3-5 years
Production molds			2-5 years

Buildings capitalized in conjunction with DLF obligations where the Company is deemed to be the accounting owner are depreciated, less residual value, over the shorter of 20 years or the lease term.

Normal repairs and maintenance costs are expensed as incurred. Expenditures that materially increase values, change capacities, or extend useful lives are capitalized. The related costs and accumulated depreciation of disposed assets are eliminated and any resulting gain or loss on disposition is recognized in earnings. Construction-in-process consists primarily of costs associated with building improvements, machinery and equipment and venues under construction that have not yet been placed into service, unfinished molds as well as in-process internal-use software.

In accordance with ASC Topic 350-40, “Internal-Use Software,” the Company capitalizes certain costs incurred in connection with developing or obtaining internal use software. Costs incurred in the preliminary project stage are expensed. All direct external costs and internal direct labor costs incurred to develop internal-use software during the development stage are capitalized and depreciated using the straight-line method over the remaining estimated useful lives. Costs such as maintenance and training are expensed as incurred. In accordance with ASC Topic 985-20, “Costs of Software to Be Sold, Leased, or Marketed,” costs incurred to establish the technological feasibility of software to be sold, leased, or otherwise marketed are expensed and recorded in research and development expense on the consolidated condensed statements of operations. Once technological feasibility is established, costs are capitalized until the product is available for general use and then depreciated over the estimated useful life.

Goodwill and Intangible Assets

The Company's intangible assets, which are comprised of goodwill, trade names, trademarks, service marks, trade dress, customer and distributor relationships, developed technology, non-competes, patents and liquor licenses, were acquired in connection with the acquisitions of Odyssey Sports, Inc., FrogTrader, Inc., OGIO, TravisMathew, Jack Wolfskin, certain foreign distributors and the recently completed merger with Topgolf on March 8, 2021.

In accordance with ASC Topic 350, “Intangibles—Goodwill and Other,” goodwill and intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually or more frequently when events indicate that an impairment exists. The Company calculates impairment as the excess of the carrying value of goodwill and other indefinite-lived intangible assets over their estimated fair value of the reporting unit or intangible asset. If the carrying value of the reporting unit exceeds the estimate of fair value a write-down is recorded. To determine fair value, the Company uses discounted cash flow estimates, quoted market prices, royalty rates when available and independent appraisals when appropriate.

During the second quarter of 2020, due to the significant disruptions caused by the COVID-19 pandemic on the Company's operations, the Company performed a qualitative assessment considering the macroeconomic conditions caused by the COVID-19 pandemic, and the potential impact on the Company's revenue and operating income for the remainder of fiscal 2020 and potentially beyond. As a result, the Company determined that there were indicators of impairment, and proceeded with a quantitative assessment to test the recoverability of goodwill for all its reporting units, in addition to the recoverability of indefinite-lived intangible assets, consisting primarily of the trade names and trademarks associated with the Company's brands. Based on this assessment, the Company determined that the fair values of the Jack Wolfskin reporting unit and the Jack Wolfskin trade name were less than their carrying values. As a result, during the second quarter of 2020, the Company recognized impairment losses to write-off the goodwill associated with the Jack Wolfskin reporting

unit and write-down the trade name associated with the Jack Wolfskin brand name to its new estimated fair value. There were no further impairments recognized over the remainder of 2020. For further discussion, see Note 9.

Intangible assets that are determined to have definite lives are amortized over their estimated useful lives and are measured for impairment in accordance with ASC Topic 360-10-35, “Impairment or Disposal of Long-Lived Assets” only when events or circumstances indicate the carrying value may be impaired. See Note 9 for further discussion of the Company’s intangible assets.

Costs related to the development, maintenance, or renewal of internally developed intangible assets that are inherent in the Company's continuing business and relate to the Company as a whole, that were not acquired as a part of a business combination or asset acquisition, are expensed as incurred.

Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

Note 3. Leases

The Company leases office space, manufacturing plants, warehouses, distribution centers, Company-operated Topgolf venues, vehicles, and equipment, as well as retail and/or outlet locations related to the TravisMathew and Jack Wolfskin businesses and the apparel business in Japan. With respect to the Company's Toptracer operations, the Company also enters into non-cancellable license agreements that provide software and hardware to driving ranges and hospitality and entertainment venues, which are classified as sales-type leases.

Sales-Type Leases

Leasing revenue attributed to sales-type leases was $8,954,000 and $24,124,000 for the three and nine months ended September 30, 2021, respectively, and are included in services revenues within the consolidated condensed statement of operations. Leasing revenue attributed to sales-type leases consists of the selling price and interest income as follows (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2021		2021
Sales-type lease selling price(1)	$	7,529	$	21,113
Cost of underlying assets	(2,990)		(8,583)
Operating profit	$	4,539	$	12,530

Interest income	$	1,425	$	3,011

(1) Selling price is equal to the present value of lease payments over the non-cancellable term.

Leasing receivables related to the Company’s net investment in sales-type leases are as follows (in thousands):


	Balance Sheet Location	September 30, 2021
Leasing receivables, net - short-term	Other current assets	$	12,016
Leasing receivables - long-term	Other assets	38,604
		$	50,620

Operating and Finance Leases

In response to the COVID-19 pandemic, the Company received certain rent concessions in the form of deferments and abatement on a few of its operating leases. The Company opted to apply FASB Staff Q&A-Topic 842 and Topic 840: "Accounting For Lease Concessions Related to the Effects of the COVID-19 Pandemic" issued in April 2020, and account for these concessions as if they were made under the enforceable rights included in the original agreement. Rent deferments were recorded as a payable and paid at a later negotiated date. Rent abatements were recognized as reductions in rent expense over the periods covered by the abatement period. The Company received rent deferments of $687,000, which were recorded in accounts payable and accrued expenses in the Consolidated Condensed Balance Sheet as of September 30, 2020, and rent abatements of $120,000 and $1,431,000, which were recorded as reductions in rent expense in the Consolidated Condensed Statements of Operations for the three and nine months ended September 30, 2020, respectively. As of September 30, 2021 the Company recorded rent deferments of $6,722,000 of which $670,000 was recorded in accrued expenses, and $6,052,000 was recorded in other long-term liabilities in the consolidated condensed balance sheets. There were no material rent abatements recorded for the three and nine months ended September 30, 2021.

Supplemental balance sheet information related to leases is as follows (in thousands):


	Balance Sheet Location	September 30, 2021		December 31, 2020
Operating Leases
ROU assets, net	Operating lease ROU assets, net	$	1,066,124	$	194,776
Lease liabilities, short-term	Operating lease liabilities, short-term	$	55,507	$	29,579
Lease liabilities, long-term	Operating lease liabilities, long-term	$	1,181,443	$	177,996

Finance Leases
ROU assets, net	Other assets	$	12,025	$	1,003
Lease liabilities, short-term	Accrued expenses	$	1,269	$	252
Lease liabilities, long-term	Long-term other	$	12,121	$	447

The components of lease expense are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease costs	$	41,610	$	10,458	$	103,022	$	31,759
Financing lease costs:
Amortization of right-of-use assets	810		185		1,987		505
Interest on lease liabilities	130		9		176		31
Total financing lease costs	940		194		2,163		536
Variable lease costs	1,393		590		3,925		2,473
Total lease costs	$	43,943	$	11,242	$	109,110	$	34,768

Other information related to leases was as follows (in thousands):


	Nine Months Ended September 30,
Supplemental Cash Flows Information	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	95,757	$	29,122
Operating cash outflows from finance leases	$	390	$	31
Financing cash outflows from finance leases	$	465	$	530

Lease liabilities arising from new ROU assets:
Operating leases	$	87,484	$	54,678
Finance leases	$	10,959	$	131


	September 30, 2021		December 31, 2020
Weighted average remaining lease term (years):
Operating leases	14.4		9.8
Finance leases	17.4		3.0

Weighted average discount rate:
Operating leases	8.2	%	5.3	%
Finance leases	5.3	%	3.9	%

Future minimum lease obligations as of September 30, 2021 were as follows (in thousands):


	Operating Leases		Finance Leases
Remainder of 2021	$	37,341	$	343
2022	151,948		1,585
2023	150,345		1,580
2024	147,680		1,179
2025	145,734		836
Thereafter	1,566,420		16,123
Total future lease payments	2,199,468		21,646
Less: imputed interest	962,518		8,256
Total	$	1,236,950	$	13,390

Lease payments exclude $800,820,000 related to 15 non-cancellable leases that have been signed as of September 30, 2021 but have not yet commenced. The Company's minimum capital commitment related to leases was approximately $83,000,000 as of September 30, 2021. As the Company is actively involved in the construction of these properties, the Company recorded $120,983,000 in construction costs within property, plant and equipment as of September 30, 2021. Additionally, as of September 30, 2021, the Company recorded $54,264,000 in construction advances from the landlord in connection with properties. The Company will determine the lease classification for properties currently under construction at the end of the construction period. The initial base term upon the commencement of these leases is generally 20 years.

Financing Obligations (Deemed Landlord Financing Obligations)

During the nine months ended September 30, 2021, the Company accounted for five DLF obligations that did not meet the sale-leaseback criteria upon the completion of construction in accordance with ASC Topic 842. As of September 30, 2021, the Company was the accounting owner of a total of thirteen buildings under DLF obligations. As of September 30, 2021, the net book value included in property, plant and equipment on the consolidated condensed balance sheets related to these buildings totaled $375,139,000. Buildings capitalized in conjunction with DLF obligations are depreciated, less residual value, over 20 years or over their estimated useful life, whichever is shorter.

Supplemental balance sheet information related to DLF obligations is as follows (in thousands):


	Balance Sheet Location	September 30, 2021
DLF obligation liabilities, short-term	Accrued expenses	$	580
DLF obligation liabilities, long-term	Deemed landlord financing, long-term	$	312,027

The components of DLF obligation expenses are as follows (in thousands):


	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
Amortization of DLF obligations	$	1,804	$	3,507
Interest on DLF obligations	6,528		13,674
Total DLF contracts expenses	$	8,332	$	17,181

Principal payments on DLF obligations presented below are included in repayments of long-term debt in the accompanying consolidated condensed statement of cash flows for the nine months ended September 30, 2021.


Supplemental Cash Flows Information (in thousands)	Nine Months Ended September 30, 2021
Financing cash outflows from DLF obligations	$	14,039


	September 30, 2021
Weighted average remaining lease term (years)	19.25
Weighted average discount rate	8.8	%

Future minimum financing obligations related to DLF obligations as of September 30, 2021 were as follows (in thousands):


Remainder of 2021	$	6,742
2022	27,176
2023	27,044
2024	27,335
2025	27,728
Thereafter	486,354
Total future lease payments	602,379
Less: imputed interest	289,772
Total	$	312,607

Leases

Note 3. Leases

The Company leases office space, manufacturing plants, warehouses, distribution centers, Company-operated Topgolf venues, vehicles, and equipment, as well as retail and/or outlet locations related to the TravisMathew and Jack Wolfskin businesses and the apparel business in Japan. With respect to the Company's Toptracer operations, the Company also enters into non-cancellable license agreements that provide software and hardware to driving ranges and hospitality and entertainment venues, which are classified as sales-type leases.

Sales-Type Leases


	Three Months Ended September 30,		Nine Months Ended September 30,
	2021		2021
Sales-type lease selling price(1)	$	7,529	$	21,113
Cost of underlying assets	(2,990)		(8,583)
Operating profit	$	4,539	$	12,530

Interest income	$	1,425	$	3,011

(1) Selling price is equal to the present value of lease payments over the non-cancellable term.

Leasing receivables related to the Company’s net investment in sales-type leases are as follows (in thousands):


	Balance Sheet Location	September 30, 2021
Leasing receivables, net - short-term	Other current assets	$	12,016
Leasing receivables - long-term	Other assets	38,604
		$	50,620

Operating and Finance Leases

Supplemental balance sheet information related to leases is as follows (in thousands):


	Balance Sheet Location	September 30, 2021		December 31, 2020
Operating Leases
ROU assets, net	Operating lease ROU assets, net	$	1,066,124	$	194,776
Lease liabilities, short-term	Operating lease liabilities, short-term	$	55,507	$	29,579
Lease liabilities, long-term	Operating lease liabilities, long-term	$	1,181,443	$	177,996

Finance Leases
ROU assets, net	Other assets	$	12,025	$	1,003
Lease liabilities, short-term	Accrued expenses	$	1,269	$	252
Lease liabilities, long-term	Long-term other	$	12,121	$	447

The components of lease expense are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease costs	$	41,610	$	10,458	$	103,022	$	31,759
Financing lease costs:
Amortization of right-of-use assets	810		185		1,987		505
Interest on lease liabilities	130		9		176		31
Total financing lease costs	940		194		2,163		536
Variable lease costs	1,393		590		3,925		2,473
Total lease costs	$	43,943	$	11,242	$	109,110	$	34,768

Other information related to leases was as follows (in thousands):


	Nine Months Ended September 30,
Supplemental Cash Flows Information	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	95,757	$	29,122
Operating cash outflows from finance leases	$	390	$	31
Financing cash outflows from finance leases	$	465	$	530

Lease liabilities arising from new ROU assets:
Operating leases	$	87,484	$	54,678
Finance leases	$	10,959	$	131


	September 30, 2021		December 31, 2020
Weighted average remaining lease term (years):
Operating leases	14.4		9.8
Finance leases	17.4		3.0

Weighted average discount rate:
Operating leases	8.2	%	5.3	%
Finance leases	5.3	%	3.9	%

Future minimum lease obligations as of September 30, 2021 were as follows (in thousands):


	Operating Leases		Finance Leases
Remainder of 2021	$	37,341	$	343
2022	151,948		1,585
2023	150,345		1,580
2024	147,680		1,179
2025	145,734		836
Thereafter	1,566,420		16,123
Total future lease payments	2,199,468		21,646
Less: imputed interest	962,518		8,256
Total	$	1,236,950	$	13,390

Financing Obligations (Deemed Landlord Financing Obligations)

Supplemental balance sheet information related to DLF obligations is as follows (in thousands):


	Balance Sheet Location	September 30, 2021
DLF obligation liabilities, short-term	Accrued expenses	$	580
DLF obligation liabilities, long-term	Deemed landlord financing, long-term	$	312,027

The components of DLF obligation expenses are as follows (in thousands):


	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
Amortization of DLF obligations	$	1,804	$	3,507
Interest on DLF obligations	6,528		13,674
Total DLF contracts expenses	$	8,332	$	17,181


Supplemental Cash Flows Information (in thousands)	Nine Months Ended September 30, 2021
Financing cash outflows from DLF obligations	$	14,039


	September 30, 2021
Weighted average remaining lease term (years)	19.25
Weighted average discount rate	8.8	%

Future minimum financing obligations related to DLF obligations as of September 30, 2021 were as follows (in thousands):


Remainder of 2021	$	6,742
2022	27,176
2023	27,044
2024	27,335
2025	27,728
Thereafter	486,354
Total future lease payments	602,379
Less: imputed interest	289,772
Total	$	312,607

Leases

Note 3. Leases

The Company leases office space, manufacturing plants, warehouses, distribution centers, Company-operated Topgolf venues, vehicles, and equipment, as well as retail and/or outlet locations related to the TravisMathew and Jack Wolfskin businesses and the apparel business in Japan. With respect to the Company's Toptracer operations, the Company also enters into non-cancellable license agreements that provide software and hardware to driving ranges and hospitality and entertainment venues, which are classified as sales-type leases.

Sales-Type Leases


	Three Months Ended September 30,		Nine Months Ended September 30,
	2021		2021
Sales-type lease selling price(1)	$	7,529	$	21,113
Cost of underlying assets	(2,990)		(8,583)
Operating profit	$	4,539	$	12,530

Interest income	$	1,425	$	3,011

(1) Selling price is equal to the present value of lease payments over the non-cancellable term.

Leasing receivables related to the Company’s net investment in sales-type leases are as follows (in thousands):


	Balance Sheet Location	September 30, 2021
Leasing receivables, net - short-term	Other current assets	$	12,016
Leasing receivables - long-term	Other assets	38,604
		$	50,620

Operating and Finance Leases

Supplemental balance sheet information related to leases is as follows (in thousands):


	Balance Sheet Location	September 30, 2021		December 31, 2020
Operating Leases
ROU assets, net	Operating lease ROU assets, net	$	1,066,124	$	194,776
Lease liabilities, short-term	Operating lease liabilities, short-term	$	55,507	$	29,579
Lease liabilities, long-term	Operating lease liabilities, long-term	$	1,181,443	$	177,996

Finance Leases
ROU assets, net	Other assets	$	12,025	$	1,003
Lease liabilities, short-term	Accrued expenses	$	1,269	$	252
Lease liabilities, long-term	Long-term other	$	12,121	$	447

The components of lease expense are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease costs	$	41,610	$	10,458	$	103,022	$	31,759
Financing lease costs:
Amortization of right-of-use assets	810		185		1,987		505
Interest on lease liabilities	130		9		176		31
Total financing lease costs	940		194		2,163		536
Variable lease costs	1,393		590		3,925		2,473
Total lease costs	$	43,943	$	11,242	$	109,110	$	34,768

Other information related to leases was as follows (in thousands):


	Nine Months Ended September 30,
Supplemental Cash Flows Information	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	95,757	$	29,122
Operating cash outflows from finance leases	$	390	$	31
Financing cash outflows from finance leases	$	465	$	530

Lease liabilities arising from new ROU assets:
Operating leases	$	87,484	$	54,678
Finance leases	$	10,959	$	131


	September 30, 2021		December 31, 2020
Weighted average remaining lease term (years):
Operating leases	14.4		9.8
Finance leases	17.4		3.0

Weighted average discount rate:
Operating leases	8.2	%	5.3	%
Finance leases	5.3	%	3.9	%

Future minimum lease obligations as of September 30, 2021 were as follows (in thousands):


	Operating Leases		Finance Leases
Remainder of 2021	$	37,341	$	343
2022	151,948		1,585
2023	150,345		1,580
2024	147,680		1,179
2025	145,734		836
Thereafter	1,566,420		16,123
Total future lease payments	2,199,468		21,646
Less: imputed interest	962,518		8,256
Total	$	1,236,950	$	13,390

Financing Obligations (Deemed Landlord Financing Obligations)

Supplemental balance sheet information related to DLF obligations is as follows (in thousands):


	Balance Sheet Location	September 30, 2021
DLF obligation liabilities, short-term	Accrued expenses	$	580
DLF obligation liabilities, long-term	Deemed landlord financing, long-term	$	312,027

The components of DLF obligation expenses are as follows (in thousands):


	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
Amortization of DLF obligations	$	1,804	$	3,507
Interest on DLF obligations	6,528		13,674
Total DLF contracts expenses	$	8,332	$	17,181


Supplemental Cash Flows Information (in thousands)	Nine Months Ended September 30, 2021
Financing cash outflows from DLF obligations	$	14,039


	September 30, 2021
Weighted average remaining lease term (years)	19.25
Weighted average discount rate	8.8	%

Future minimum financing obligations related to DLF obligations as of September 30, 2021 were as follows (in thousands):


Remainder of 2021	$	6,742
2022	27,176
2023	27,044
2024	27,335
2025	27,728
Thereafter	486,354
Total future lease payments	602,379
Less: imputed interest	289,772
Total	$	312,607

Revenue Recognition

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 4. Revenue Recognition

The Company primarily recognizes revenue from the sale of its products and operation of its venues. Revenue from product sales include golf clubs, golf balls, lifestyle and outdoor apparel, gear and accessories, and golf apparel and accessories. The Company sells its products to customers, which include on- and off-course golf shops and national retail stores, as well as to consumers through its e-commerce business and at its apparel retail and venue locations. The Company's product revenues also include royalty income from third parties from the licensing of certain soft goods products. Revenue from services primarily includes venue sales of food and beverage, fees charged for gameplay, and the sale of game credits to guests. Service revenues also include franchise fees from franchised international venues, as well as revenue from gift cards, sponsorship contracts, franchise fees, leasing revenue and non-refundable deposits received for venue reservations. In addition, the Company recognizes service revenues through its online multiplayer WGT digital golf game.

The Company's contracts with customers for its products are generally in the form of a purchase order. In certain cases, the Company enters into sales agreements containing specific terms, discounts and allowances. The Company enters into licensing agreements with certain distributors and, with respect to the Company's Toptracer operations, driving ranges and hospitality and entertainment venues.

The Company has three operating and reportable segments, namely the Topgolf operating segment, the Golf Equipment operating segment and the Apparel, Gear and Other operating segment. On March 8, 2021, the Company completed its merger with Topgolf. The Company’s results of operations, therefore, include the operations of Topgolf from that date forward. Topgolf contributed $333,783,000 in net revenues for the three months ended September 30, 2021, and $751,873,000 for the nine months ended September 30, 2021, which includes approximately seven months of revenues since the completion of the merger.

The following table presents the Company's revenue disaggregated by major product category and operating and reportable segment (in thousands):


			Operating and Reportable Segments
	Three Months Ended September 30, 2021								Three Months Ended September 30, 2020
	Topgolf		Golf Equipment		Apparel, Gear & Other		Total		Golf Equipment		Apparel, Gear & Other		Total
Major revenue categories:
Venues	$	313,640	$	—	$	—	$	313,640	$	—	$	—	$	—
Other business lines	20,143		—		—		20,143		—		—		—
Golf clubs	—		229,346		—		229,346		209,356		—		209,356
Golf balls	—		60,269		—		60,269		57,921		—		57,921
Apparel	—		—		150,240		150,240		—		125,609		125,609
Gear, accessories & other	—		—		82,823		82,823		—		82,673		82,673
	$	333,783	$	289,615	$	233,063	$	856,461	$	267,277	$	208,282	$	475,559



			Operating and Reportable Segments
	Nine Months Ended September 30, 2021								Nine Months Ended September 30, 2020
	Topgolf		Golf Equipment		Apparel, Gear & Other		Total		Golf Equipment		Apparel, Gear & Other		Total
Major product category:
Venues	$	702,234	$	—	$	—	$	702,234	$	—	$	—	$	—
Other business lines	49,639		—		—		49,639		—		—		—
Golf clubs	—		865,671		—		865,671		616,620		—		616,620
Golf balls	—		202,085		—		202,085		152,261		—		152,261
Apparel	—		—		336,942		336,942		—		239,201		239,201
Gear, accessories & other	—		—		265,152		265,152		—		206,749		206,749
	$	751,873	$	1,067,756	$	602,094	$	2,421,723	$	768,881	$	445,950	$	1,214,831

The Topgolf operating segment contributed $4,387,000 and $8,582,000 in product sales for the three and nine months ended September 30, 2021, respectively, that are included within the consolidated condensed statements of operations, which include sales of golf clubs, golf balls, apparel sales, and equipment sales.

The Apparel, Gear and Other and Topgolf operating segments include royalty income from licensing agreements of $17,009,000 and $50,117,000, respectively, for the three and nine months ended September 30, 2021. For the three and nine months ended September 30, 2020, the Company recognized royalty income of $5,849,000 and $14,946,000, respectively.

As of December 31, 2020, the Company's balance for deferred revenue was $2,546,000, which included deferred revenue from gift cards. In connection with the merger with Topgolf completed on March 8, 2021, the Company acquired deferred revenue related to event deposits, lifetime and premium memberships, prepaid sponsorships, virtual currency and game credits related to the WGT digital golf game, and gift cards. As of September 30, 2021, the Company’s deferred revenue balance was $84,359,000.

The Company recognized revenues of $106,283,000 and $231,561,000 related to the redemption and amortization of deferred revenue, including breakage on unredeemed gift cards, during the three and nine months ended September 30, 2021, respectively. The Company recognized revenues of $795,000 and $1,825,000 related to the redemption and breakage of unredeemed gift cards during the three and nine months ended September 30, 2020, respectively.

The following table summarizes revenue by geographical areas in which the Company operates (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue by Major Geographic Region:
United States	$	552,895	$	214,619	$	1,583,874	$	603,836
Europe	157,215		134,680		386,559		281,473
Japan	63,441		56,530		197,188		158,517
Rest of world	82,910		69,730		254,102		171,005
	$	856,461	$	475,559	$	2,421,723	$	1,214,831

The Company sells its golf equipment products and apparel, gear and accessories in the United States and internationally, with its principal international regions being Japan and Europe. On a regional basis, sales of golf equipment are generally higher than sales of apparel gear and other in most regions other than Europe, which has a higher concentration of apparel, gear and other sales as a result of Jack Wolfskin, which is headquartered in Germany. Venues revenue is higher in the United States, as Topgolf has more domestic venues than international. Other business lines revenue is predominantly in the United States and Europe.

The Company records an estimate for anticipated returns as a reduction of product revenues and cost of products, and accounts receivable, in the period that the related sales are recorded. Sales returns are estimated based upon historical returns, current economic trends, changes in customer demands and sell-through of products. The Company also offers certain customers sales programs that allow for specific returns. The Company records a sales return liability as an offset to accounts receivable for anticipated returns related to these sales programs at the time of sale based on the terms of the sales program. The cost recovery of inventory associated with this reserve is accounted for in other current assets. The Company's balance for cost recovery was $36,652,000 and $23,441,000 as of September 30, 2021 and December 31, 2020, respectively. The Company's provision for the sales return liability will fluctuate with the seasonality of the business, while actual sales returns are generally more heavily weighted toward the back half of the year as the golf season comes to an end. Historically, the Company’s actual sales returns have not been materially different from management’s original estimates.

The following table provides a reconciliation of the activity related to the Company’s sales return liability (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Beginning balance	$	71,592	$	56,837	$	43,986	$	34,314
Provision	14,381		20,578		79,271		82,588
Sales returns	(14,558)		(17,099)		(51,842)		(56,586)
Ending balance	$	71,415	$	60,316	$	71,415	$	60,316

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Estimated Credit Losses

9 Months Ended

Sep. 30, 2021

Credit Loss [Abstract]

Estimated Credit Losses

Note 5. Estimated Credit Losses

The Company's trade accounts receivable are recorded at net realizable value, which includes an appropriate allowance for estimated credit losses, as well as reserves related to product returns and sales programs as described in Note 4. Under ASC Topic 326, the “expected credit loss” model replaces the “incurred loss” model and requires consideration of a broader range of information to estimate expected credit losses over the life of the asset. Specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. An estimate of credit losses for the remaining customers in the aggregate is based upon historical bad debts, current customer receivable balances, age of customer receivable balances, the customers' financial condition, all of which are subject to change. Additionally, the Company’s monitoring activities consider future reasonable and supportable forecasts of economic conditions to adjust all general reserve percentages as necessary. Balances are written off when determined to be uncollectible. The Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and determined, based on current information, that the estimate of credit losses as of September 30, 2021 was not significantly impacted.

Actual uncollected amounts have historically been consistent with the Company’s expectations. The Company’s payment terms on its receivables from customers are generally 60 days or less.

The following table provides a reconciliation of the activity related to the Company’s allowance for estimated credit losses (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Beginning balance	$	6,701	$	8,944	$	8,841	$	5,992
Adjustment due to the adoption of Topic 326	—		—		—		289
(Recovery)/provision for credit losses	(267)		(1,340)		(493)		2,292
Write-off of uncollectible amounts, net of recoveries	(80)		(258)		(1,994)		(1,227)

Ending balance	$	6,354	$	7,346	$	6,354	$	7,346

- Definition

The entire disclosure for credit loss on financial instrument measured at amortized cost basis, net investment in lease, off-balance sheet credit exposure, and available-for-sale debt security.

+ References + Details

Business Combinations

9 Months Ended

Sep. 30, 2021

Business Combinations [Abstract]

Business Combinations

Note 6. Business Combinations

Merger with Topgolf International, Inc.

On March 8, 2021, the Company completed its merger with Topgolf, pursuant to the terms of an Agreement and Plan of Merger, dated as of October 27, 2020 (the “Merger Agreement”). Topgolf is a leading technology-enabled golf entertainment business, with an innovative platform that comprises its state-of-the-art open-air golf and entertainment venues, Toptracer ball-tracking technology and innovative media platform with a differentiated position in eSports. The Company will benefit from a compelling family of brands with reach across multiple channels including retail, venues, e-commerce and digital communities.

Pursuant to the terms of the Merger Agreement, at the closing of the merger, the Company issued approximately 89,776,450 unrestricted and fully vested shares of its common stock to the stockholders of Topgolf (excluding approximately 12,329,721 shares of the Company’s common stock that would have been allocated to the Company in the merger based on the shares of Topgolf held by the Company) for 100% of the outstanding equity of Topgolf, at an exchange ratio based on an equity value of Topgolf of $1,987,000,000 (or $1,748,000,000 excluding Topgolf shares that were held by the Company) and a price per share of the Company's common stock fixed at $19.40 per share (the “Callaway Share Price”). The actual purchase consideration upon the closing of the merger of $3,014,174,000 (or $2,650,201,000 excluding Topgolf shares that were held by the Company) was based on the number of shares of the Company’s common stock issued, multiplied by the closing price of $29.52 of the Company's common stock on March 8, 2021. Additionally, the Company converted certain stock options previously held by former equity holders of Topgolf into options to purchase a number of shares of Callaway common stock, and certain outstanding restricted stock awards of Topgolf, into 187,568 shares of Callaway common stock (together, the "replacement awards"). The Company included $33,051,000 in the consideration transferred in the merger for these replacement awards, which represents the fair value of the vested portion the replacement awards. The unvested portion of these replacement awards related to future services that will be rendered in the post-combination period will be recognized as compensation expense over the remaining vesting period (see Note 15). In addition, the Company converted issued and outstanding warrants to purchase certain preferred shares of Topgolf into a warrant to purchase a number of shares of Callaway common stock. The fair value of the consideration transferred in the merger related to these warrants totaled $1,625,000. The purchase consideration, together with the fair value of the consideration transferred for outstanding stock awards and warrants totaled $3,048,850,000.

The Company previously held approximately 14.3% of Topgolf's outstanding shares. Immediately following the closing of the merger, the Company's stockholders, as of immediately prior to the merger, owned approximately 51.3% of the outstanding shares of the combined company, and former Topgolf stockholders, other than Callaway, owned approximately 48.7% of the outstanding shares of the combined company.

The Company allocated the purchase price to the net identifiable tangible and intangible assets acquired and liabilities assumed based on their preliminary estimated fair values as of the date of acquisition. Identifiable intangible assets include the Topgolf trade name, developed technology, Topgolf's investment in Full Swing Golf Holdings, Inc. ("Full Swing"), customer relationships and liquor licenses. The excess of the purchase price over the estimated fair value of the net assets and liabilities was allocated to goodwill. The Company determined the preliminary estimated fair values after review and consideration of relevant information as of the acquisition date, including discounted cash flows, quoted market prices and

estimates made by management. The fair values assigned to tangible and intangible assets acquired and liabilities assumed are preliminary based on management's estimates and assumptions and may be subject to change as additional information is received and certain tax returns are finalized. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.

The allocation of the purchase price presented below was based on management's preliminary estimate of the fair values of the acquired assets and assumed liabilities using valuation techniques including income, cost and market approaches. These valuation techniques incorporate the use of expected future revenues, cash flows and growth rates as well as estimated discount rates. Current and noncurrent assets and liabilities are valued at historical carrying values, which approximates fair value, except as described below. The trade name was valued under the royalty savings income approach method, which is equal to the present value of the after-tax royalty savings attributable to owning the trade name as opposed to paying a third party for its use. For this valuation the Company used a royalty rate of 2.5%, which is reflective of royalty rates paid in market transactions, and a discount rate of 7.0% to 8.5% on the future cash flows generated by the net after-tax savings. The fair value of the Topgolf hitting bays, Toptracer ball-tracking technology and the WGT digital game was based on a combination of valuation methodologies, including the residual net income approach, royalty savings income approach and the cost approach. The Company utilized the options pricing model and revenue multiples of comparable companies to determine the fair value of the investment in Full Swing. Customer relationships and liquor licenses were valued using the replacement cost method. The Company amortizes the fair value of the finite-lived intangibles, which include technology and customer relationships, over a period ranging between one and ten years. The estimated fair value of operating leases was determined based on current market terms, which resulted in a net unfavorable adjustment to the right-of-use asset. Property, plant and equipment was valued based on its replacement cost, which resulted in an estimated step-up in value. The estimated fair value of the debt assumed was based on a market credit rating, interest rates and repayment terms, which resulted in an overall decrease in value. As of September 30, 2021, the Company is in the process of completing its assessment of the fair value of the right-of-use assets of operating and DLF obligations, and deferred taxes. Additionally, the Company is still in the process of reviewing and evaluating fair value estimates as included herein. Upon the completion of these assessments, the Company will adjust the preliminary purchase price allocation accordingly. After assessing the preliminary fair value of the net assets acquired and liabilities assumed, the Company recorded goodwill of $1,968,911,000, of which the Company attributed $1,405,556,000 to the future revenues and growth potential of the Topgolf business, and $563,355,000 to the synergies the Company anticipates from leveraging the Topgolf business to expand its golf equipment and apparel businesses. For the operating segment allocation of goodwill, see Note 9. As a non-taxable stock acquisition, the Company does not expect the value attributable to the acquired intangibles and goodwill to be tax deductible.

In connection with the merger, during the nine months ended September 30, 2021, the Company recognized transaction costs of approximately $16,199,000, consisting primarily of advisor, legal, valuation and accounting fees. There were no transaction costs recognized in the three months ended September 30, 2021. There were $1,544,000 in transaction costs recognized during the three and nine months ended September 30, 2020. Transaction costs were recorded in selling, general & administrative expenses.

The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date based on the preliminary purchase price allocation (in thousands):


	At March 8, 2021
Assets Acquired
Cash		$	171,294
Accounts receivable		11,277
Inventories		13,828
Other current assets		52,233
Property and equipment		1,018,727
Operating lease right-of-use assets		833,812
Investments		28,263
Other assets		33,664
Intangibles - trade name		994,200
Intangibles - technology, customer relationships and liquor licenses		81,929
Goodwill		1,405,556
Total assets acquired		4,644,783
Liabilities Assumed
Accounts payable and accrued liabilities		94,434
Accrued employee costs		36,992
Construction advances		60,333
Deferred revenue		62,617
Other current liabilities		7,821
Long-term debt		535,096
Deemed landlord financing		179,718
Operating lease liabilities		1,023,338
Other long-term liabilities		23,539
Deferred tax liabilities		135,400
Net assets acquired		$	2,485,495
Goodwill allocated to other business units		563,355
Total purchase price and consideration transferred in the merger		$	3,048,850

Supplemental Pro-Forma Information (Unaudited)

The following table presents supplemental pro-forma information for the three and nine months ended September 30, 2021 and 2020 as if the merger with Topgolf had occurred on January 1, 2020. These amounts have been calculated after applying the Company's accounting policies and are based upon currently available information. For this analysis, the Company assumed that certain gains and costs associated with the merger were recognized as of January 1, 2020, including a gain of $252,531,000 recognized on the Company's pre-acquisition investment in Topgolf, acquisition costs of $16,199,000, the amortization of estimated intangible assets and other fair value adjustments, as well as the tax effect on those costs, and a valuation allowance on certain acquired net operating losses and tax credit carryforwards (see Note 13). Pre-acquisition net revenue and net income(loss) amounts for Topgolf were derived from the books and records of Topgolf prepared prior to the acquisition and are presented for informational purposes only and do not purport to be indicative of the results of future operations or of the results that would have occurred had the acquisition taken place as of the dates noted below.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)				(in thousands)
Net revenues	$	856,461	$	691,437	$	2,564,667	$	1,700,339
Net income (loss)	$	(15,991)	$	7,258	$	101,205	$	(187,478)

Supplemental Information of Operating ResultsFor the three months ended September 30, 2021, the Company's consolidated condensed statements of operations included net revenues of $333,783,000 and net income of $2,832,000 attributable to Topgolf. For the nine months ended September 30, 2021, the Company's consolidated condensed statements of operations included net revenues of $751,873,000 and net income of $396,000 for the period beginning March 8, 2021 through October 3, 2021.

Financing Arrangements

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Financing Arrangements

Note 7. Financing Arrangements

The Company's debt obligations are summarized as follows (in thousands):


	September 30, 2021							December 31, 2020
	Maturity Date	Interest Rate		Unamortized Debt Issuance Costs		Carrying Value		Carrying Value
Short-Term Credit Facilities
U.S. Asset-Based Revolving Credit Facility	May 17, 2024	3.00	%	$	1,134	$	30,108	$	22,130
Japan ABL Facility	January 21, 2022	1.28	%	—		—		—
				$	1,134	$	30,108	$	22,130
Balance Sheet Location
Prepaid expenses				$	1,047	$	—	$	—
Other long-term assets				87		—		—
Asset-based credit facilities				—		30,108		22,130
				$	1,134	$	30,108	$	22,130

	September 30, 2021							December 31, 2020
	Maturity Date	Interest Rate		Unamortized Original Issuance Discount and Debt Issuance Costs		Carrying Value, net		Carrying Value, net
Long-Term Debt and Credit Facility
Japan Term Loan Facility	July 31, 2025	0.86	%	$	—	$	14,379	$	18,390
Term Loan B Facility	January 4, 2026	4.59	%	16,217		421,783		428,150
Topgolf Term Loan	February 8, 2026	7.00	%	6,654		334,596		—
Topgolf Revolving Credit Facility	February 8, 2024	4.75	%	6,444		28,556		—
Convertible Notes	May 1, 2026	2.75	%	67,216		191,534		183,126
Equipment Notes	December 27, 2022 - March 19, 2027	2.36% - 3.79%		—		25,546		31,822
Mortgage Loans	July 1, 2033 - July 29, 2036	9.75% - 11.31%		—		46,522		—
Financed Tenant Improvements	February 1, 2035	8.00	%	—		3,689		3,801
				$	96,531	$	1,066,605	$	665,289
Balance Sheet Location
Other current liabilities				$	3,816	$	17,586	$	—
Accrued expenses				—		—		14,725
Long-term debt				92,715		1,049,019		650,564
				$	96,531	$	1,066,605	$	665,289

Revolving Credit Facilities and Available Liquidity

In addition to cash on hand, as well as cash generated from operations, the Company relies on its U.S. and Japan asset-based revolving credit facilities and the Topgolf revolving credit facility to manage seasonal fluctuations in liquidity and to provide additional liquidity when the Company’s operating cash flows are not sufficient to fund the Company’s requirements. As of September 30, 2021, the Company had $65,108,000 outstanding under these facilities and $508,177,000 in cash and cash equivalents. As of September 30, 2021, the Company's available liquidity, which is comprised of cash on hand and amounts available under the Company's revolving credit facilities, after letters of credit and

outstanding borrowings, was $918,000,000. As of September 30, 2020, the Company had $30,235,000 outstanding under its U.S. and Japan facilities, and $286,656,000 in cash and cash equivalents. As of September 30, 2020, the Company's available liquidity, which is comprised of cash on hand and amounts available under its U.S. and Japan facilities, after letters of credit and outstanding borrowings, was $636,891,000.

U.S. Asset-Based Revolving Credit Facility

In May 2019, the Company entered into a Fourth Amended and Restated Loan and Security Agreement with Bank of America N.A. and other lenders, which provides a senior secured asset-based revolving credit facility of up to $400,000,000 (the “ABL Facility”), comprised of a $260,000,000 U.S. facility, a $70,000,000 German facility, a $25,000,000 Canadian facility and a $45,000,000 United Kingdom facility, in each case subject to borrowing base availability under the applicable facility. The amounts outstanding under the ABL Facility are secured by certain assets, including cash (to the extent pledged by the Company), certain intellectual property, certain eligible real estate, inventory and accounts receivable of the Company’s subsidiaries in the United States, Germany, Canada and the United Kingdom. The real estate and intellectual property components of the borrowing base under the ABL Facility are both amortizing. The amount available for the real estate portion is reduced quarterly over a 15-year period, and the amount available for the intellectual property portion is reduced quarterly over a three-year period.

Amounts borrowed under the ABL Facility may be repaid and borrowed as needed. The entire outstanding principal amount (if any) is due and payable on the maturity date. Amounts available under the ABL Facility increase and decrease with changes in the Company’s inventory and accounts receivable balances. During the nine months ended September 30, 2021, average outstanding borrowings were $20,237,000 and average amount available, after outstanding borrowings and letters of credit, was approximately $307,753,000.

In April 2020, the Company amended the ABL Facility to permit a customary capped call transaction (see “Convertible Senior Notes” below) in connection with the issuance of convertible debt securities by the Company and to permit the Company to incur loans or financial assistance of up to $50,000,000 pursuant to governmental programs enacted due to the COVID-19 pandemic. As of September 30, 2021, the Company had not drawn on these funds. In addition, the ABL Facility imposes restrictions on the amount the Company could pay in annual cash dividends, including certain restrictions on the amount of additional indebtedness and requirements to maintain a certain fixed charge coverage ratio under certain circumstances. In addition, in connection with the merger with Topgolf (see Note 6), the Company amended the ABL Facility to, among other things, permit the consummation of the merger, designate Topgolf and its subsidiaries as excluded subsidiaries under the ABL Facility and amend certain covenants and other provisions to allow the Company to make certain investments in, and enter into certain transactions with Topgolf. Fees in connection with this amendment will be combined with existing debt origination and amendment fees and amortized over the remaining term of the ABL Facility.

The ABL Facility includes certain restrictions including, among other things, restrictions on the incurrence of additional debt, liens, stock repurchases and other restricted payments, asset sales, investments, mergers, acquisitions and affiliate transactions. Additionally, the Company is subject to compliance with a fixed charge coverage ratio covenant of at least 1.0 to 1.0 during, and continuing 30 days after, any period in which the Company’s borrowing base availability, as amended, falls below 10% of the maximum facility amount or $40,000,000. The Company’s borrowing base availability was above $40,000,000 during the nine months ended September 30, 2021, and the Company was in compliance with the fixed charge coverage ratio as of September 30, 2021. Had the Company not been in compliance with the fixed charge coverage ratio as of September 30, 2021, the maximum amount of additional indebtedness that could have been outstanding on September 30, 2021 would have been reduced by $40,000,000. As of September 30, 2021, in addition to the fixed charge coverage ratio covenant, the Company was in compliance with all other financial covenants of the ABL Facility.

The interest rate applicable to outstanding loans under the ABL Facility fluctuates depending on the Company’s “availability ratio” which is expressed as a percentage of (i) the average daily availability under the ABL Facility to (ii) the sum of the Canadian, the German, the U.K. and the U.S. borrowing bases, as adjusted. At September 30, 2021 the Company’s trailing 12-month average interest rate applicable to its outstanding loans under the ABL Facility was 3.07%. Additionally, the ABL Facility provides for monthly fees of 0.25% of the unused portion of the ABL Facility.

Fees in connection with the origination of the ABL Facility and prior amendments are amortized in interest expense over the term of the facility.

Japan ABL Facility

In January 2021, the Company refinanced the asset-based loan agreement between its subsidiary in Japan and The Bank of Tokyo-Mitsubishi UFJ, Ltd (the “Japan ABL Facility”), which provides a credit facility of up to 4,000,000,000 Yen (or U.S. $35,948,000, using the exchange rate in effect as of September 30, 2021) over a one-year term, subject to borrowing base availability under the Japan ABL Facility. The amounts outstanding are secured by certain assets, including eligible inventory and eligible accounts receivable. The Japan ABL Facility also includes certain restrictions including covenants related to certain pledged assets and financial performance metrics. As of September 30, 2021, the Company was in compliance with these covenants.

The Japan ABL Facility is subject to an effective interest rate equal to the Tokyo Interbank Offered Rate (“TIBOR”) plus 1.20%.

Long-Term Debt

Japan Term Loan Facility

In August 2020, the Company entered into a five-year Term Loan facility (the “Japan Term Loan Facility”) between its subsidiary in Japan and Sumitomo Mitsui Banking Corporation (“SMBC”) for 2,000,000,000 Yen (or approximately U.S. $17,974,000 using the exchange rate in effect as of September 30, 2021).

As of September 30, 2021, the Company had 1,600,000,000 Yen (or approximately U.S. $14,379,000 using the exchange rate in effect as of September 30, 2021) outstanding, of which 400,000,000 Yen (or approximately U.S. $3,595,000 using the exchange rate in effect as of September 30, 2021) is reflected in other current liabilities in the accompanying consolidated condensed balance sheets. Total interest expense recognized during the three and nine months ended September 30, 2021 was 3,544,000 Yen (or approximately U.S. $32,000) and 11,156,000 Yen (or approximately U.S. $103,000), respectively.

Loans under the Japan Term Loan Facility are subject to a rate per annum of either, at the Company’s option, SMBC TIBOR or TIBOR plus 80 basis points. Principal payments of 100,000,000 Yen (or approximately U.S. $899,000 using the exchange rate in effect as of September 30, 2021) are due quarterly, and the facility imposes certain restrictions including covenants to certain financial performance obligations. As of September 30, 2021, the Company was in compliance with these covenants.

Term Loan B Facility

In January 2019, to fund the purchase price of the Jack Wolfskin acquisition, the Company entered into a Credit Agreement (the “Credit Agreement”) with Bank of America, N.A and other lenders party to the Credit Agreement (the “Term Lenders”). The Credit Agreement provides for a Term Loan B facility (the “Term Loan Facility”) in an aggregate principal of $480,000,000, which was issued less $9,600,000 in original issue discount and other transaction fees. Such principal amount may be increased pursuant to incremental facilities in the form of additional tranches of term loans or new commitments, up to a maximum incremental amount of $225,000,000, or an unlimited amount subject to compliance with a first lien net leverage ratio of 2.25 to 1.00. Total interest and amortization expense recognized during the three months ended September 30, 2021 and 2020 was $6,105,000 and $5,986,000, respectively. Total interest and amortization expense recognized during the nine months ended September 30, 2021 and 2020 was $18,029,000 and $19,681,000, respectively.

Loans under the Term Loan Facility are subject to interest at a rate per annum equal to either, at the Company's option, the LIBOR rate or the base rate, plus 4.50% or 3.50%, respectively. The Company utilizes an interest rate hedge in order to mitigate the risk of interest rate fluctuations on this facility. See Note 17 for further information on this hedging contract. Principal payments of $1,200,000 are due quarterly, however the Company has the option to prepay any outstanding loan balance in whole or in part without premium or penalty.

Loans outstanding under this facility are guaranteed by the Company's domestic subsidiaries. The loans and guaranties are secured by substantially all the assets of the Company and guarantors.

The Credit Agreement contains a cross-default provision with respect to any indebtedness of the Company as defined in the Credit Agreement, as well as customary representations and warranties and customary affirmative and negative covenants, including, among other things, restrictions on incurrence of additional debt, liens, dividends and other restricted payments, asset sales, investments, mergers, acquisitions and affiliate transactions. Events of default permitting

acceleration under the Credit Agreement include, among others, nonpayment of principal or interest, covenant defaults, material breaches of representations and warranties, bankruptcy and insolvency events, certain cross defaults or a change of control. As of September 30, 2021, the Company was in compliance with these covenants.

In connection with the merger with Topgolf (see Note 6), the Company amended the Term Loan Facility with Bank of America, N.A. and the Term Lenders to, among other things, permit the consummation of the Merger and certain other transactions contemplated in the Merger Agreement, designate Topgolf and its subsidiaries as unrestricted subsidiaries under the Term Loan Facility and amend certain covenants and other provisions to allow the Company to make certain investments in, and enter into certain transactions with Topgolf.

Topgolf Credit Facilities

In connection with the merger with Topgolf on March 8, 2021, the Company assumed a $350,000,000 term loan facility (the “Topgolf Term Loan”), and a $175,000,000 revolving credit facility with JPMorgan Chase Bank, N.A (the “Topgolf Revolving Credit Facility”), with JPMorgan Chase Bank, N.A., as Administrative Agent, Swingline Lender and Issuing Bank, RBC Capital Markets, as Syndication Agent, and the other agents, arrangers and lenders party thereto (together, the “Topgolf Credit Facilities”).

Borrowings under the Topgolf Term Loan accrue interest at a rate per annum equal to, at the Company's option, either (i) an alternate base rate determined by reference to the highest of (a) the prime rate of JPMorgan Chase Bank, N.A. (the administrative agent), (b) the federal funds effective rate plus 0.50%, (c) the adjusted one-month LIBOR rate plus 1.00%, and (d) 1.75%, or (ii) an adjusted LIBOR rate (for a period equal to the relevant interest period) (which shall not be less than 0.75%), in each case plus an applicable margin. The applicable margin for loans under the Topgolf Term Loan is 5.25% with respect to alternate base rate borrowings and 6.25% with respect to LIBOR borrowings.

Borrowings under the Topgolf Revolving Credit Facility accrue interest at a rate per annum equal to, at the Company's option, either (i) an alternate base rate determined by reference to the highest of (a) the prime rate of JPMorgan Chase Bank, N.A. (the administrative agent), (b) the federal funds effective rate plus 0.50%, (c) the adjusted one-month LIBOR rate plus 1.00%, and (d) 1.75%, or (ii) an adjusted LIBOR rate (for a period equal to the relevant interest period) (which shall not be less than 0.75%), in each case plus an applicable margin. The applicable rate for the Topgolf Revolving Credit Facility loans is 3.00% with respect to alternate base rate borrowings and 4.00% with respect to LIBOR borrowings subject to two stepdowns of 0.25% per annum upon achievement of specified first lien leverage ratio levels. In addition, the Company is required to pay a commitment fee under the Topgolf Revolving Credit Facility based upon the first lien leverage ratio (as defined in the Amended Credit Agreement) at a rate of up to 0.50% per annum, subject to two stepdowns of 0.13% per annum upon achievement of specified first lien leverage ratio levels. The Company must also pay customary letter of credit fees and agency fees.

The Topgolf Term Loan is payable in quarterly installments of 0.25% of the principal amount per quarter. The remaining unpaid balance on the Topgolf Term Loan, together with all accrued and unpaid interest thereon, is due upon maturity. Outstanding borrowings under the Topgolf Revolving Credit Facility do not amortize and are due and payable upon maturity.

The terms of the Topgolf Credit Facilities require the Company to maintain on a quarterly basis a total leverage ratio (measured on a trailing four-quarter basis) less than or equal to 5.50:1.00. On September 17, 2020, prior to the completion of the merger, Topgolf entered into an amendment to the credit agreement (the “Amended Credit Agreement”) to modify the financial covenants and make certain other changes. The Amended Credit Agreement (i) suspends the total leverage ratio financial covenant through and including the fiscal quarter ending on or about March 31, 2022 and (ii) provides for an increased level of 7.75:1.00 for the fiscal quarter ending on or about June 30, 2022, in each case unless the Company elects to restore the 5.50:1.00 total leverage ratio test (and eliminate the restrictions in the Amended Credit Agreement that apply during the period of relief) at an earlier date. Until the Company demonstrates compliance with the 5.50:1.00 total leverage ratio test for the period ending on or about September 30, 2022 (or terminate the period of relief at an earlier date after demonstrating compliance with the 5.50:1.00 total leverage ratio test), the Company is required to maintain unrestricted cash on hand and/or availability under the Topgolf Credit Facilities of not less than $30,000,000. As of September 30, 2021, the Company was in compliance with these covenants.

The Topgolf Credit Facilities also contains certain customary representations and warranties and affirmative covenants, and certain reporting obligations. The Topgolf Term Loan also contains certain customary representations and warranties and affirmative covenants, and certain reporting obligations.

Convertible Notes

In May 2020, the Company issued $258,750,000 of 2.75% Convertible Senior Notes (the “Convertible Notes”). The Convertible Notes bear interest at a rate of 2.75% per annum on the principal amount, payable semi-annually in arrears on May 1 and November 1 of each year, beginning on November 1, 2020. The Convertible Notes mature on May 1, 2026, unless earlier redeemed or repurchased by the Company or converted. The Convertible Notes are structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity, if any, of the Company’s subsidiaries.

The Company may settle the Convertible Notes through cash settlement, physical settlement, or combination settlement at its election. Therefore, the Convertible Notes were separated into a liability component and an equity component in a manner that reflects the interest cost of a similar nonconvertible debt instrument. At inception, the fair value of the liability component was determined by measuring the fair value of a similar liability that does not have an associated equity component. The carrying amount of the liability component was $191,534,000 as of September 30, 2021. The carrying amount of the discount on the Convertible Notes, totaling $62,324,000 as of September 30, 2021, is amortized over the remaining term of approximately 4.6 years. The conversion feature of $76,508,000 was determined by deducting the fair value of the liability component from the initial proceeds ascribed to the Convertible Notes.

The Company incurred $8,527,000 of cost associated with the issuance of the Convertible Notes. These debt issuance costs were allocated between the debt and equity components in proportion to the allocation of the proceeds to those components. As such, $6,005,000 was allocated to the liability component of the Convertible Notes, and $2,522,000 was allocated to the equity conversion feature. The discount on the Convertible Notes as well as the debt issuance costs allocated to the liability component are amortized over the term of the Convertible Notes using the effective interest rate method.

All or any portion of the Convertible Notes may be converted at the conversion rate and at the holders' option on or after February 1, 2026 until the close of business on the second trading day immediately prior to the maturity date. Additionally, all or any portion of the Convertible Notes may be converted at the conversion rate at the holders' option upon the occurrence of certain contingent conversion events, including (i) if the price of the Company’s common stock is more than 130% of the conversion price of the Convertible Notes for any 20 of 30 consecutive trading days ending on the last trading day of the calendar quarter, subsequent to the quarter ending September 30, 2020; (ii) if the trading price of the Convertible Notes, after a consecutive ten trading day period, is less than 98% of the closing price per share of the Company’s common stock multiplied by the conversion rate in effect (iii) upon the occurrence of certain corporate events or distributions on the Company’s common stock, as described in the Indenture; or (iv) if the Company calls the Convertible Notes for redemption.

Upon conversion, the Company has the option to settle the conversion obligation in any combination of cash and shares. The initial conversion rate is 56.7698 shares of the Company's common stock per $1,000 principal amount of Convertible Notes, which is equal to an initial conversion price of $17.62 per share. At September 30, 2021, the price of the Company's common stock was higher than the initial conversion price. Therefore, the if-converted value of the Convertible Notes exceeded the principal amount.

The Company may redeem all or part of the Convertible Notes (i) on or after May 6, 2023, but before the 40th trading day prior to the maturity date if the last reported sale price of the Company’s common stock exceeds 130% of the conversion price for any 20 of 30 consecutive trading days; (ii) upon a Fundamental Change (where holders can require settlement entirely in cash); or (iii) upon an Event of Default. The Company will also be required to pay additional interest upon (i) failure to timely file with the Commission, (ii) failure to allow the Convertible Notes to be freely tradable, or (iii) upon an Event of Default solely related to failure to timely file with the trustee.

In connection with the pricing of the Convertible Notes on April 29, 2020, the Company paid $31,775,000 to enter into privately negotiated capped call transactions (“Capped Calls”) with Goldman Sachs & Co. LLC, Bank of America, N.A. and Morgan Stanley & Co. LLC as well as with each of the option counterparties. The Capped Calls cover the aggregate number of shares of the Company’s common stock that initially underlie the Convertible Notes, and are expected generally to reduce the potential dilution to the Company’s common stock upon any conversion of the Convertible Notes, and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Convertible Notes, with such reduction and/or offset subject to a cap based on the cap price. The cap price of the Capped Calls is initially $27.10. The Capped Calls are recorded as a reduction to additional paid-in capital and are not accounted for as derivatives.

The Convertible Notes will have an impact on the Company’s diluted earnings per share when the average market price of its common stock exceeds the conversion price of $17.62 per share, as the Company intends to settle the principal amount of the Convertible Notes in cash upon conversion. For the nine months ended September 30, 2021, the average market price of the Company's common stock was $30.85, which exceeded the conversion price. As such, the Company used the treasury stock method to compute the dilutive shares of common stock related to the Convertible Notes for periods the Company reported net income. Upon conversion, there will be no economic dilution from the Convertible Notes until the average market price of the Company’s common stock exceeds the cap price of $27.10 per share, as exercise of the Capped Calls offsets any dilution from the Convertible Notes from the conversion price up to the cap price. Capped Calls are excluded from the calculation of diluted earnings per share, as they would be anti-dilutive under the treasury stock method.

Equipment Notes

Between December 2017 and August 2020, the Company entered into four long-term financing agreements (the “Equipment Notes”) with Bank of America N.A. and other lenders to invest in its golf ball manufacturing facility in Chicopee, Massachusetts, its North American Distribution Center in Roanoke, Texas, and in corporate IT equipment. The loans are secured by the underlying equipment at each facility and the IT equipment.

Interest expense recognized during the three months ended September 30, 2021 and 2020 was $205,000 and $247,000, respectively. Interest expense recognized during the nine months ended September 30, 2021 and 2020 was $665,000 and $624,000, respectively.

The Equipment Notes are subject to compliance with the financial covenants in the Company's ABL Facility. As of September 30, 2021, the Company was in compliance with these covenants.

Mortgage Loans

In connection with the merger with Topgolf on March 8, 2021, the Company assumed three mortgage loans related to the construction of three venues. The loans require either monthly (i) principal and interest payments or (ii) interest-only payments until their maturity dates. For loans requiring monthly interest-only payments, the entire unpaid principal balance and any unpaid accrued interest is due on the maturity date. The mortgage loans are secured by the assets of each respective venue.

The following table presents the Company's combined aggregate amount of maturities for the Company's long-term debt over the next five years and thereafter as of September 30, 2021. Amounts payable under the ABL Facility are excluded from this table as they are short-term in nature. Amounts payable under the Term Loan Facility included below represent the minimum principal repayment obligations. As of September 30, 2021, the Company does not anticipate excess cash flow repayments as defined by the Term Loan Facility.


	(in thousands)
Remainder of 2021	$	5,254
2022	21,232
2023	18,575
2024	52,352
2025	14,155
Thereafter	1,051,568
	$	1,163,136

Earnings per Common Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Earnings per Common Share

Note 8. Earnings per Common Share

Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding for the period.

Diluted earnings per common share takes into account the potential dilution that could occur if outstanding securities were exercised. Dilutive securities are included in the calculation of diluted earnings per common share using the treasury stock method in accordance with ASC Topic 260, “Earnings per Share.” Dilutive securities include outstanding stock options, restricted stock units and performance share units granted to employees and non-employee directors (see Note 15), as well as common shares underlying convertible notes (see Note 7).

Weighted-average common shares outstanding—diluted is the same as weighted-average common shares outstanding—basic in periods when a net loss is reported or in periods when anti-dilution occurs.

The following table summarizes the computation of basic and diluted earnings per share (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Earnings per common share—basic
Net income (loss)	$	(15,991)	$	52,432	$	348,214	$	(86,358)
Weighted-average common shares outstanding—basic(1)	185,963		94,171		163,141		94,207
Basic earnings (loss) per common share	$	(0.09)	$	0.56	$	2.13	$	(0.92)
Earnings per common share—diluted
Net income (loss)	$	(15,991)	$	52,432	$	348,214	$	(86,358)
Weighted-average common shares outstanding—basic(1)	185,963		94,171		163,141		94,207
Convertible notes weighted-average shares outstanding	—		924		6,117		—
Outstanding options, restricted stock units and performance share units	—		1,517		1,936		—
Weighted-average common shares outstanding—diluted	185,963		96,612		171,194		94,207
Diluted earnings (loss) per common share	$	(0.09)	$	0.54	$	2.03	$	(0.92)

(1)In connection with the Topgolf merger on March 8, 2021, the Company issued 89,776,450 of its common stock to the stockholders of Topgolf, and 187,568 of its common stock for restricted stock awards converted in the merger (see Note 15), of which 89,964,018 and 67,884,937 weighted average shares for the three and nine months ended September 30, 2021, respectively, were included in the basic and diluted share calculations based on the number of days the shares were outstanding during the periods.

Convertible Notes

In May 2020, the Company issued $258,750,000 of 2.75% Convertible Notes. The Convertible Notes will have an impact on the Company’s diluted earnings per share when the average market price of its common stock exceeds the conversion price of $17.62 per share, as the Company intends to settle the principal amount of the Convertible Notes in cash upon conversion. The Company is required under the treasury stock method to compute the potentially dilutive shares of common stock related to the Convertible Notes for periods the Company reports net income. As of September 30, 2021 and September 30, 2020, the average market price of its common stock exceeded the conversion price per share and, as such, the common shares underlying convertible notes were included in the calculation of earnings per common share—diluted for the three months ended September 30, 2020 and the nine months ended September 30, 2021, respectively (see Note 7). As a net loss was reported for the three months ended September 30, 2021 and the nine months ended September 30, 2020, common shares underlying convertible notes of 6,139,949 and 502,517, respectively, were excluded from the calculation of loss per common share—diluted for these periods.

Options, Restricted Stock Units and Performance Share Units

As a net loss was reported for the three months ended September 30, 2021 and the nine months ended September 30, 2020, common shares underlying options, restricted stock units and performance share units of 1,822,402 and 1,345,695, respectively, were excluded from the calculation of loss per common share—diluted for these periods.

For the nine months ended September 30, 2021, securities outstanding totaling approximately 1,195,000 shares, comprised of stock options and restricted stock units, were excluded from the calculation of earnings per common share—diluted as they would be anti-dilutive. For the three months ended September 30, 2020, there were no securities excluded from the calculation of earnings per common share—diluted.

Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 9. Goodwill and Intangible Assets

Changes in the carrying amount of goodwill by operating and reportable segment are as follows (in thousands):


	Topgolf		Golf Equipment		Apparel, Gear and Other		Total
Balance at December 31, 2020	$	—	$	27,025	$	29,633		$	56,658
Acquisitions	1,405,556		504,690		58,665			$	1,968,911
Impairments	—		—		—			$	—
Foreign currency translation	—		(394)		—			$	(394)
Balance at September 30, 2021	$	1,405,556	$	531,321	$	88,298		$	2,025,175

Goodwill at September 30, 2021 increased to $2,025,175,000 from $56,658,000 at December 31, 2020. This $1,968,517,000 increase was primarily due to the addition of $1,968,911,000 in goodwill in connection with the Topgolf merger in March 2021, of which the Company attributed $1,405,556,000 to the Topgolf business, and $504,690,000 and $58,665,000 to the golf equipment and apparel businesses, respectively (see Note 6). This increase was partially offset by changes in foreign currency rates period over period.

In accordance with ASC Topic 350, “Intangibles—Goodwill and Other,” the Company’s goodwill and non-amortizing intangible assets are subject to an annual impairment test or more frequently when impairment indicators are present. As of September 30, 2021 and December 31, 2020, the Company recognized accumulated impairment losses on goodwill of $148,375,000. There were no impairment losses recognized during the three or nine months ended September 30, 2021.

The following sets forth the intangible assets by major asset class (dollars in thousands):


	Useful Life (Years)	September 30, 2021
		Gross(1)		Accumulated Amortization			Translation Adjustment			Net Book Value
Indefinite-lived:
Trade name, trademark, trade dress and other	NA	$	1,441,003		$	—		$	11,893	$	1,429,110
Liquor licenses	NA	7,756			—			—		7,756
Amortizing:
Patents	2-16	32,041			31,645			—		396
Customer and distributor relationships and other	1-10	61,378			25,195			1,757		34,426
Developed technology	10	69,821			3,909			553		65,359
Total intangible assets		$	1,611,999		$	60,749		$	14,203	$	1,537,047


	Useful Life (Years)	December 31, 2020
		Gross		Accumulated Amortization			Net Book Value
Indefinite-lived:
Trade name, trademark, trade dress and other	NA	$	446,803		$	—		$	446,803

Amortizing:
Patents	2-16	31,581			31,581			—
Customer and distributor relationships and other	1-10	57,309			19,773			37,536

Total intangible assets		$	535,693		$	51,354		$	484,339

(1) The gross balance of intangible assets as of September 30, 2021 includes additions of $1,001,600,000 and $74,529,000 in indefinite-lived and amortizing intangible assets, respectively, related to the Topgolf merger that was completed on March 8, 2021.

The Company recognized amortization expense related to intangible assets of $3,358,000 and $1,321,000 for the three months ended September 30, 2021 and 2020, respectively, and $9,395,000 and $3,714,000 for the nine months ended September 30, 2021 and 2020, respectively, in selling, general and administrative expenses in the accompanying consolidated condensed statements of operations.

Amortization expense related to intangible assets at September 30, 2021 in each of the next five fiscal years and beyond is expected to be incurred as follows (in thousands):


Remainder of 2021	$	7,233
2022	13,177
2023	11,616
2024	11,471
2025	11,395
Thereafter	45,289
	$	100,181

Investments	9 Months Ended
Investments	Sep. 30, 2021
Equity Method Investments and Joint Ventures [Abstract]
Investments	Note 10. Investments Investment in Topgolf International, Inc. Prior to the completion of the merger with Topgolf, the Company owned a minority interest of approximately 14.3% in Topgolf, the owner and operator of Topgolf entertainment centers. On March 8, 2021, the Company completed its merger with Topgolf, in which the Company issued shares of its common stock in exchange for 100% of the outstanding equity of Topgolf (see Note 6). As a result of the merger, the Company's shares of Topgolf comprised of common stock and various classes of preferred stock were stepped up to their fair value and applied toward the total purchase consideration in the merger. The fair value adjustment resulted in a gain of $252,531,000. Immediately prior to the merger and at December 31, 2020, the Company's total investment in Topgolf was $111,442,000. The Company accounted for this investment at cost less impairments in accordance with ASU No. 2016-01. Prior to the merger, the Company did not record any impairments with respect to this investment. Investment in Full Swing In connection with the merger with Topgolf, the Company acquired a minority interest of 17.7% in Full Swing, owners of indoor golf simulation technology that delivers golf ball tracking data and measures ball flight indoors. The fair value of this investment as of the merger date was $27,740,000. During the quarter ended September 30, 2021, the Company sold a portion of its investment in Full Swing for cash proceeds of approximately $18,591,000. As a result of the transaction, the Company now owns a minority interest of 7.3% in Full Swing.

Product Warranty

9 Months Ended

Sep. 30, 2021

Guarantees [Abstract]

Product Warranty

Note 11. Product Warranty

The Company has a stated two-year warranty policy for its golf clubs and certain Jack Wolfskin gear, as well as a limited lifetime warranty for its OGIO line of products. The Company’s policy is to accrue the estimated cost of satisfying future warranty claims at the time the sale is recorded. In estimating its future warranty obligations, the Company considers various relevant factors, including the Company’s stated warranty policies and practices, the historical frequency of claims, and the cost to replace or repair its products under warranty.

The Company’s estimates for calculating the warranty reserve are principally based on assumptions regarding the warranty costs of each product line over the expected warranty period. Where little or no claims experience may exist, the Company’s warranty obligation calculation is based upon long-term historical warranty rates of similar products until sufficient data is available. As actual model-specific rates become available, the Company’s estimates are modified to reflect the range of likely outcomes.

The warranty reserve is included in other current liabilities in the accompanying consolidated condensed balance sheets as of September 30, 2021 and December 31, 2020. The following table provides a reconciliation of the activity related to the Company's warranty reserve (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Beginning balance	$	11,533	$	9,779	$	9,364	$	9,636
Provision	1,938		2,137		7,871		5,507

Claims paid/costs incurred	(1,950)		(2,276)		(5,714)		(5,503)
Ending balance	$	11,521	$	9,640	$	11,521	$	9,640

Selected Financial Statement Information

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Selected Financial Statement Information

Note 12. Selected Financial Statement Information


	September 30, 2021		December 31, 2020
	(In thousands)






Inventories:
Finished goods	$	295,962	$	281,602
Work in process	858		1,010
Raw materials	83,994		69,932
Food and beverage	4,497		—
	$	385,311	$	352,544
Property, plant and equipment, net:
Land	$	90,200	$	7,308
Buildings and leasehold improvements	841,664		100,653
Machinery and equipment	200,416		137,026
Furniture, computer hardware and equipment	193,638		100,558
Internal-use software	80,697		42,082
Production molds	7,220		6,809
Construction-in-process	215,090		13,299
	1,628,925		407,735
Accumulated depreciation	(298,599)		(261,240)
	$	1,330,326	$	146,495
Accounts payable and accrued expenses:
Accounts payable	$	126,643	$	66,282
Accrued expenses	230,178		136,277
Accrued inventory	96,817		73,650
	$	453,638	$	276,209
Accrued employee compensation and benefits:
Accrued payroll and taxes	$	89,103	$	17,009
Accrued vacation and sick pay	21,753		12,887
Accrued commissions	5,090		1,041
	$	115,946	$	30,937

During the three months ended September 30, 2021 and 2020, the Company recorded depreciation expense of $40,920,000 and $8,990,000, respectively, and $98,425,000 and $24,954,000 for the nine months ended September 30, 2021 and 2020, respectively, on the accompanying consolidated condensed statements of operations.

Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 13. Income Taxes

The Company calculates its interim income tax provision in accordance with ASC Topic 270, “Interim Reporting,” and ASC Topic 740, “Accounting for Income Taxes.” At the end of nine months ended September 30, 2021, the Company estimates its annual effective tax rate and applies that rate to its ordinary quarterly earnings to calculate the tax related to

ordinary income. The tax effects for other items that are excluded from ordinary income are discretely calculated and recognized in the period in which they occur.

In March 2021, the Company acquired Topgolf through a non-taxable stock acquisition in a share exchange. The purchase price of Topgolf at acquisition was approximately $3,014,174,000. The Company recorded a deferred tax liability of approximately $293,000,000 related to the acquired intangibles, offset by approximately $154,000,000 of other acquired deferred tax assets, after consideration of acquired valuation allowances.

In January 2019, the Company acquired Jack Wolfskin for approximately $521,201,000 (including cash acquired of $58,096,000). The Company recorded a deferred tax liability of $88,392,000 related to the intangibles upon acquisition in addition to $11,384,000 of deferred tax assets acquired. In the second quarter of 2020, due to a decline in projected revenues caused by the COVID-19 pandemic, the Company recognized an impairment charge of $174,269,000 to write down the goodwill and trade name associated with Jack Wolfskin to its fair value (see Note 9). The impaired goodwill was comprised of book basis over tax basis with no corresponding deferred tax liability. The brand value impairment resulted in the reduction of approximately $7,900,000 of the deferred tax liability previously recorded as part of acquisition accounting.

The realization of deferred tax assets, including loss and credit carryforwards, is subject to the Company generating sufficient taxable income during the periods in which the deferred tax assets become realizable. As a result of the Topgolf merger and the fact that Topgolf’s losses exceed the Company’s income in recent years, the Company recorded a valuation allowance in its income tax provision of approximately $38,927,000 against certain of its net operating losses and tax credit carryforwards during the three months ended March 31, 2021. In connection with the purchase accounting related to the merger with Topgolf, the Company also recorded a valuation allowance in goodwill of approximately $80,566,000 against certain Topgolf deferred tax assets acquired in the merger. As a consequence of utilizing the annual effective tax rate method to record tax provision impacts instead of utilizing the discrete effective tax rate method used in the quarter ended June 30, 2021, for the three months ended September 30, 2021, the Company recorded Topgolf valuation allowances of approximately $32,743,000 which were previously released during the three months ended June 30, 2021. With respect to Jack Wolfskin and previously existing non-U.S. entities, there continues to be sufficient positive evidence to conclude that realization of its deferred tax assets is more likely than not under applicable accounting rules, and therefore no significant valuation allowances have been established.

The Company recorded income tax expense of $66,229,000 and $98,119,000 for the three and nine months ended September 30, 2021, respectively. As a percentage of pre-tax income, the Company's effective tax rate was 131.8% and 22.0% for the three and nine months ended September 30, 2021, respectively. In the three months ended September 30, 2021, the primary difference between the statutory rate and the effective rate relates to utilizing the annual effective tax rate method for the three months ended September 30, 2021 instead of utilizing the discrete effective tax rate method which was used for the three months ended June 30, 2021. In the nine months ended September 30, 2021, the primary difference between the statutory rate and the effective rate relates to excluding the book gain on pre-merger Topgolf shares for tax purposes offset by valuation allowances on the Company’s deferred tax assets.

At September 30, 2021, the gross liability for income taxes associated with uncertain tax positions was $27,265,000. Of this amount, $5,463,000 would benefit the Company’s consolidated condensed financial statements and effective income tax rate if favorably settled. The unrecognized tax liabilities are expected to decrease by approximately $463,000 during the next 12 months. The gross liability for uncertain tax positions increased by $237,000 for the three months ended September 30, 2021 primarily due to increases in tax positions taken during the current quarter, as well as currency translation adjustments. The gross liability for uncertain tax positions decreased by $1,037,000 for the nine months ended September 30, 2021. The decrease was primarily due to an increase in effectively settled tax positions taken in the current year.

The Company recognizes interest and penalties related to income tax matters in income tax expense. For the three months ended September 30, 2021 and 2020, the Company's provision for income taxes includes a benefit of $46,000 and an expense of $110,000, respectively, related to the recognition of interest and/or penalties. For the nine months ended September 30, 2021 and 2020, the Company's provision for income taxes includes a benefit of $236,000 and an expense of $163,000, respectively, related to the recognition of interest and/or penalties. As of September 30, 2021 and December 31, 2020, the gross amount of accrued interest and penalties included in income taxes payable in the accompanying consolidated condensed balance sheets was $996,000 and $1,232,000, respectively.

The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company is generally no longer subject to income tax examinations by tax authorities in the following major jurisdictions:


Tax Jurisdiction						Years No Longer Subject to Audit
U.S. federal						2010 and prior
California (U.S.)						2008 and prior
Germany						2013 and prior
Japan						2015 and prior
South Korea						2015 and prior
United Kingdom						2016 and prior

Pursuant to Section 382 of the Internal Revenue Code, use of the Company's net operating losses and credit carry-forwards may be limited if the Company were to experience a cumulative change in ownership of the Company's stock by “5-percent shareholders” that exceeds 50% over a rolling three-year period. The Company believes a cumulative change in ownership occurred as a result of the merger with Topgolf, for the Company and Topgolf. The resulting limitations are not expected to have an adverse impact on future combined earnings of the Company. The limitation on losses and credits could impact future cash flows but those impacts are not expected to be significant.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 14. Commitments & Contingencies

Legal Matters

The Company is subject to routine legal claims, proceedings, and investigations incident to its business activities, including claims, proceedings, and investigations relating to commercial disputes and employment matters. The Company also receives from time to time information claiming that products sold by the Company infringe or may infringe patent, trademark, or other intellectual property rights of third parties. One or more such claims of potential infringement could lead to litigation, the need to obtain licenses, the need to alter a product to avoid infringement, a settlement or judgment, or some other action or material loss by the Company, which also could adversely affect the Company’s overall ability to protect its product designs and ultimately limit its future success in the marketplace. In addition, the Company is occasionally subject to non-routine claims, proceedings, or investigations.

The Company regularly assesses such matters to determine the degree of probability that the Company will incur a material loss as a result of such matters, as well as the range of possible loss. An estimated loss contingency is accrued in the Company’s financial statements if it is probable the Company will incur a loss and the amount of the loss can be reasonably estimated. The Company reviews all claims, proceedings, and investigations at least quarterly and establishes or adjusts any accruals for such matters to reflect the impact of negotiations, settlements, advice of legal counsel, and other information and events pertaining to a particular matter. All legal costs associated with such matters are expensed as incurred.

Historically, the claims, proceedings, and investigations brought against the Company, individually and in the aggregate, have not had a material adverse effect on the consolidated results of operations, cash flows or financial position of the Company. The Company believes that it has valid legal defenses to the matters currently pending against the Company. However, these matters are inherently unpredictable and the resolutions of these matters are subject to many uncertainties and the outcomes are not predictable with assurance. Consequently, management is unable to estimate the ultimate aggregate amount of monetary loss, amounts covered by insurance, or the financial impact that will result from such matters. In addition, the Company cannot assure that it will be able to successfully defend itself in those matters, or that any amounts accrued are sufficient.

Unconditional Purchase Obligations

During the normal course of its business, the Company enters into agreements to purchase goods and services, including purchase commitments for production materials, as well as endorsement agreements with professional athletes and other endorsers, employment and consulting agreements, and intellectual property licensing agreements pursuant to which the Company is required to pay royalty fees. It is not possible to determine the amounts the Company will ultimately be required to pay under these agreements as they are subject to many variables including performance-based bonuses, severance arrangements, the Company’s sales levels, and reductions in payment obligations if designated minimum

performance criteria are not achieved. The amounts listed approximate minimum purchase obligations, base compensation, and guaranteed minimum royalty payments the Company is obligated to pay under these agreements. The actual amounts paid under some of these agreements may be higher or lower than the amounts included. In the aggregate, the actual amount paid under these obligations is likely to be higher than the amounts listed as a result of the variable nature of these obligations. The Company has entered into many of these contractual agreements with terms ranging from one to four years.

The minimum obligation that the Company is required to pay as of September 30, 2021 under these agreements is $85,143,000 over the next five years and thereafter as follows (in thousands):


Remainder of 2021	$	31,167
2022	32,429
2023	20,759
2024	664
2025	124
Thereafter	—
	$	85,143

In addition, the Company also enters into unconditional purchase obligations with various vendors and suppliers of goods and services in the normal course of operations through purchase orders or other documentation or that are undocumented except for an invoice. Such unconditional purchase obligations are generally outstanding for periods less than a year and are settled by cash payments upon delivery of goods and services and are not reflected in this total.

Other Contingent Contractual Obligations

During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These include (i) intellectual property indemnities to the Company’s customers and licensees in connection with the use, sale and/or license of Company product or trademarks, (ii) indemnities and guarantees to various lessors in connection with facility leases for certain claims arising from such facilities or leases, (iii) indemnities, commitments, and/or guarantees to vendors and service providers pertaining to the goods and services provided to the Company or based on the negligence or willful misconduct of the Company, (iv) indemnities involving the accuracy of representations and warranties in certain contracts, and (v) indemnities, commitments, and/or guarantees in connection with the Company's credit facilities. In addition, the Company has consulting agreements that provide for payment of nominal fees upon the issuance of patents and/or the commercialization of research results. The Company has also issued guarantees in the form of standby letters of credit.

The duration of these indemnities, commitments and guarantees varies, and in certain cases, may be indefinite. The majority of these indemnities, commitments and guarantees do not provide for any limitation on the maximum amount of future payments the Company could be obligated to make. Historically, costs incurred to settle claims related to indemnities have not been material to the Company’s financial position, results of operations or cash flows. In addition, the Company believes the likelihood is remote that payments under the commitments and guarantees described above will have a material effect on the Company’s consolidated financial statements. The fair value of indemnities, commitments and guarantees that the Company issued during and as of September 30, 2021 was not material to the Company’s financial position, results of operations, or cash flows.

Employment Contracts

The Company has made contractual commitments to each of its officers and certain other employees providing for severance payments, including salary continuation, upon the termination of employment by the Company without substantial cause or by the officer for good reason or non-renewal. In addition, in order to assure that the officers would continue to provide independent leadership consistent with the Company’s best interest, the contracts also generally provide for certain protections in the event of a change in control of the Company. These protections include the payment of certain severance benefits, such as salary continuation, upon the termination of employment following a change in control.

Share-Based Employee Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Share-Based Employee Compensation

Note 15. Share-Based Employee Compensation

As of September 30, 2021, the Company had three shareholder approved stock plans under which shares were available for equity-based awards: the Callaway Golf Company Amended and Restated 2004 Incentive Plan, the 2013 Non-Employee Directors Stock Incentive Plan and the 2021 Employment Inducement Plan, which was adopted in connection with the merger with Topgolf on March 8, 2021. This inducement plan has substantially the same terms as the Company's other stock plans. In general, the Company grants stock options, restricted stock units, performance based awards, phantom stock units and other awards under these plans.

The Company accounts for its share-based compensation arrangements in accordance with ASC Topic 718 and ASU No. 2014-12, which requires the measurement and recognition of compensation expense, net of an estimated forfeiture rate, for all share-based payment awards to employees and directors.

Replacement Awards

In connection with the merger with Topgolf, the Company converted certain stock options previously held by former equity holders of Topgolf into options to purchase a number of shares of Callaway common stock, and certain outstanding restricted stock awards of Topgolf into shares of Callaway common stock (together, the "replacement awards"). The Company included $33,051,000 in the consideration transferred in the merger for these replacement awards, which represents the fair value of the vested portion the replacement awards. The unvested portion of these replacement awards, which is associated with the future services that will be rendered in the post-combination period, is comprised of 3,168,000 shares underlying stock options with an acquisition date fair value of $5,343,000, and 188,000 shares of restricted stock awards with an acquisition date fair value of $4,794,000.

The fair value of the stock options was based on the Black-Scholes option-pricing model. The model uses various assumptions including a risk-free interest rate, an expected term, stock price volatility and a dividend yield. The table below summarizes the range and the weighted averages of the fair value assumptions used in the valuation as of March 8, 2021.


Assumptions:	Range	Weighted Averages
Expected term (in years)	0.3 - 7.1	3.7
Volatility	43.0% - 85.4%	55.1%
Risk free interest rate	0.1% -1.3%	0.6%
Dividend yield	—	—

During the three and nine months ended September 30, 2021, the Company recognized compensation expense of $1,525,000 and $3,503,000, respectively, related to these awards, net of estimated forfeitures. At September 30, 2021, unamortized compensation expense related to stock options and restricted stock awards was $2,857,000 and $2,831,000, respectively, which will be recognized over a weighted average vesting period of 1.3 years and 1.4 years, respectively.

Restricted Stock Units

Restricted stock units are valued at the Company’s closing stock price on the date of grant, and generally vest over one to five years. Compensation expense for restricted stock units is recognized on a straight-line basis over the vesting period and is reduced by an estimate for forfeitures.

During the three months ended September 30, 2021, the Company granted 40,000 shares underlying restricted stock units at a weighted average grant-date fair value of $29.67 per share. There were no restricted stock units granted for the three months ended September 30, 2020. During the nine months ended September 30, 2021, the Company granted 1,149,000 shares underlying restricted stock units, including 612,000 shares in connection with the merger with Topgolf, at a weighted average grant-date fair value of $29.62. During the nine months ended September 30, 2020, the Company granted 406,000 shares underlying restricted stock units at a weighted average grant-date fair value of $17.82 per share.

Compensation expense, net of estimated forfeitures, for restricted stock units was $3,840,000 and $1,907,000 for the three months ended September 30, 2021 and 2020, respectively, and $9,790,000 and $4,884,000 for the nine months ended September 30, 2021 and 2020, respectively.

At September 30, 2021, the Company had $29,298,000 of total unamortized compensation expense related to non-vested restricted stock units. That cost is expected to be recognized over a weighted-average period of 2.1 years.

Performance Based Awards

The Company grants performance based awards in which the number of shares ultimately received depends on the Company's performance against specified metrics, including adjusted earnings before interest, taxes, depreciation, amortization, earnings per share, adjusted pre-tax income and total shareholder return. The performance period ranges over one to five years from the date of grant. Performance based awards are initially valued at the Company's closing stock price on the date of grant, and compensation expense, net of estimated forfeitures, is recognized on a straight-line basis over the vesting period of three to five years, and is adjusted according to the level of performance expected to be achieved during the performance period. Awards that do not achieve the minimum performance threshold are forfeited at the end of the performance period.

During the nine months ended September 30, 2021, the Company granted 1,440,000 shares underlying performance based awards, including 1,063,000 shares in connection with the merger with Topgolf, at a weighted average grant-date fair value of $29.42. During the nine months ended September 30, 2020, the Company granted 250,000 shares underlying performance based awards at a weighted average grant-date fair value of $21.44. There were no performance based awards granted during three months ended September 30, 2021 and 2020.

Compensation expense, net of estimated forfeitures, for performance based awards was $6,100,000 and $1,365,000 for the three months ended September 30, 2021 and 2020, respectively, and $13,820,000 and $3,182,000 for the nine months ended September 30, 2021 and 2020, respectively.

At September 30, 2021, unamortized compensation expense related to these awards was $50,257,000, which is expected to be recognized over a weighted-average period of 2.2 years.

Share-Based Compensation Expense

The table below summarizes the amounts recognized in the financial statements for the three and nine months ended September 30, 2021 and 2020 for share-based compensation, including expense for restricted stock units, performance based awards units and stock options (in thousands).


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020

Cost of products	$	345	$	158	$	892	$	553
Selling, general and administrative expenses	10,867		2,930		25,548		7,044
Research and development expenses	263		184		683		469
Total cost of share-based compensation included in income, before income tax	11,475		3,272		27,123		8,066
Income tax benefit	2,754		785		6,510		1,936
Total cost of employee share-based compensation, after tax	$	8,721	$	2,487	$	20,613	$	6,130

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 16. Fair Value of Financial Instruments

Certain of the Company’s financial assets and liabilities are measured at fair value on a recurring and non-recurring basis. Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability (the exit price) in the principal and most advantageous market for the asset or liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified using the following three-tier hierarchy:

Level 1: Quoted market prices in active markets for identical assets or liabilities;

Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and

Level 3: Fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The following table summarizes the valuation of the Company’s foreign currency forward contracts and interest rate hedge agreements (see Note 17) that are measured at fair value on a recurring basis by the above pricing levels at September 30, 2021 and December 31, 2020 (in thousands):


	Fair Value		Level 1		Level 2		Level 3
September 30, 2021
Foreign currency forward contracts—asset position(1)	$	4,855	$	—	$	4,855	$	—
Foreign currency forward contracts—liability position(1)	(470)		—		(470)		—





Interest rate hedge agreements—liability position(2)	(12,224)		—		(12,224)		—


	$	(7,839)	$	—	$	(7,839)	$	—
December 31, 2020
Foreign currency forward contracts—asset position(1)	$	90	$	—	$	90	$	—
Foreign currency forward contracts—liability position(1)	(1,553)		—		(1,553)		—




Interest rate hedge agreements—liability position(2)	(17,922)		—		(17,922)		—
	$	(19,385)	$	—	$	(19,385)	$	—

(1)The fair value of the Company’s foreign currency forward contracts is based on observable inputs that are corroborated by market data. Observable inputs include broker quotes, daily market foreign currency rates and forward pricing curves. Remeasurement gains and losses on foreign currency forward contracts designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) until recognized in earnings during the period that the hedged transactions take place (see Note 17).

(2)The fair value of interest rate hedge contracts is based on observable inputs that are corroborated by market data. Observable inputs include daily market foreign currency rates and interest rate curves. Remeasurement gains and losses are recorded in accumulated other comprehensive income (loss) until recognized in earnings as interest payments are made or received on the Company’s variable-rate debt. Remeasurement gains and losses on foreign currency forward contracts that are not-designated as cash flow hedges are recorded in other income (see Note 17).

Disclosures about the Fair Value of Financial Instruments

The carrying values of cash and cash equivalents, net accounts receivable, accounts payable and accrued expenses, and other current liabilities, at September 30, 2021 and December 31, 2020 are categorized within Level 1 of the fair value hierarchy. The table below illustrates information about fair value relating to the Company’s financial assets and liabilities that are recognized in the accompanying consolidated condensed balance sheets as of September 30, 2021 and December 31, 2020 (in thousands).


	September 30, 2021				December 31, 2020
	Carrying Value		Fair Value		Carrying Value		Fair Value
Term Loan Facility(1)	$	438,000	$	439,883	$	441,600	$	443,243
Japan Term Loan Facility(2)	14,379		13,381		18,390		16,083
Convertible Notes(3)	258,750		452,937		258,750		414,191
U.S. Asset-Based Revolving Credit Facility(4)	30,108		30,108		22,130		22,130

Equipment Notes(5)	25,546		24,777		31,822		29,385
Topgolf Revolving Credit Facility(6)	35,000		28,556		—		—
Mortgage Loans(7)	46,522		52,546		—		—
Topgolf Term Loan(8)	341,250		339,782		—		—

(1)In January 2019, the Company entered into a Term Loan Facility. The fair value of this debt is based on quoted prices for similar instruments in active markets combined with quantitative pricing models, and is therefore categorized within Level 2 of the fair value hierarchy. See Note 7 for further information.

(2)In August 2020, the Company entered into the Japan Term Loan Facility. The fair value is categorized within Level 2 of the fair value hierarchy. The Company used discounted cash flows and market-based expectations for interest rates, credit risk, and the contractual terms of the debt to derive the fair value. See Note 7 for further information.

(3)In May 2020, the Company issued $258,750,000 of 2.75% Convertible Notes due in 2026. The fair value of this debt is based on quoted prices in secondary markets combined with quantitative pricing models, and is therefore categorized within Level 2 of the fair value hierarchy. For further discussion, see Note 7.

(4)The carrying value of the amounts outstanding under the Company's ABL Facility approximates the fair value due to the short-term nature of these obligations. The fair value of this debt is categorized within Level 2 of the fair value hierarchy based on the observable market borrowing rates. See Note 7 for information on the Company's credit facilities, including certain risks and uncertainties related thereto.

(5)The Company entered into equipment notes in 2017, 2019 and 2020 that are secured by certain equipment at the Company's golf ball manufacturing facility. The fair value of this debt is categorized within Level 2 of the fair value hierarchy. The Company used discounted cash flows and market-based expectations for interest rates, credit risk, and the contractual terms of the debt to derive the fair value. See Note 7 for further information.

(6)The carrying amount of the Topgolf Revolving Credit Facility approximates its fair value because the applicable interest rate is adjusted regularly based on current market conditions. See Note 7 for further information.

(7)The fair value of the mortgage loans is calculated based on the future payments under the mortgage agreement discounted at the incremental borrowing rate. See Note 7 for further information.

(8)The fair value of the Topgolf Term Loan is based on quoted market rate from the lender. See Note 7 for further information.

Non-recurring Fair Value Measurements

The Company measures certain assets at fair value on a non-recurring basis at least annually or more frequently if certain indicators are present. These assets include long-lived assets, goodwill, non-amortizing intangible assets and investments that are written down to fair value when they are held for sale or determined to be impaired. During the second quarter of 2020, the Company considered the macroeconomic conditions related to the COVID-19 pandemic and its potential impact to sales and operating income for the remainder of fiscal 2020, and determined that there were indicators of impairment and proceeded with a quantitative assessment of goodwill for all reporting units. As a result of the second quarter assessment, the Company determined that the fair value of one of its reporting units was less than its carrying value, and therefore recognized a goodwill impairment loss of $148,375,000 in the second quarter of 2020. In addition, the Company recognized an impairment loss of $25,894,000 on one of its trade names (see Note 9). There were no impairment losses recorded during the three and nine months ended September 30, 2021.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivatives and Hedging

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

Note 17. Derivatives and Hedging

In the normal course of business, the Company is exposed to gains and losses resulting from fluctuations in foreign currency exchange rates relating to transactions of its international subsidiaries as well as fluctuations in foreign currency exchange rates and changes in interest rates relating to its long-term debt. The Company uses designated cash flow hedges and non-designated hedges in the form of foreign currency forward contracts as part of its strategy to manage the level of exposure to the risk of fluctuations in foreign currency exchange rates and to mitigate the impact of foreign currency translation on transactions that are denominated primarily in Japanese Yen, British Pounds, Euros, Canadian Dollars, Australian Dollars and Korean Won. The Company also uses cross-currency debt swap contracts and interest rate hedge contracts to mitigate the impact of variable rates on its long-term debt as well as changes in foreign currencies.

The Company accounts for its foreign currency forward contracts, cross-currency debt swap contracts and interest rate hedge contracts in accordance with ASC Topic 815. ASC Topic 815 requires the recognition of all derivative instruments as either assets or liabilities on the balance sheet, the measurement of those instruments at fair value and the recognition of changes in the fair value of derivatives in earnings in the period of change, unless the derivative qualifies as a designated cash flow hedge that offsets certain exposures. Certain criteria must be satisfied in order for derivative financial instruments to be classified and accounted for as a cash flow hedge. Gains and losses from the remeasurement of qualifying cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) and released into earnings as a component of cost of products or net revenue, other income and interest expense during the period in

which the hedged transaction takes place. Remeasurement gains or losses of derivatives that are not elected for hedge accounting treatment are recorded in earnings immediately as a component of other income.

Foreign currency forward contracts, cross-currency debt swap contracts and interest rate hedge contracts are used only to meet the Company’s objectives of minimizing variability in the Company’s operating results arising from foreign exchange rate movements and changes in interest rates. The Company does not enter into foreign currency forward contracts, cross-currency debt swap contracts and interest rate hedge contracts for speculative purposes. The Company utilizes counterparties for its derivative instruments that it believes are credit-worthy at the time the transactions are entered into and the Company closely monitors the credit ratings of these counterparties.

The following table summarizes the fair value of the Company's derivative instruments as well as the location of the asset and/or liability on the consolidated condensed balance sheets at September 30, 2021 and December 31, 2020 (in thousands):


	Balance Sheet Location	Fair Value of Asset Derivatives
		September 30, 2021		December 31, 2020
Derivatives designated as cash flow hedging instruments:
Foreign currency forward contracts	Other current assets	$	1,109	$	37






Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	3,746		53



Total asset position		$	4,855	$	90


	Balance Sheet Location	Fair Value of Liability Derivatives
		September 30, 2021		December 31, 2020
Derivatives designated as cash flow hedging instruments:
Foreign currency forward contracts	Accounts payable and accrued expenses	$	7	$	38




Interest rate hedge contracts	Accounts payable and accrued expenses	4,752		4,780
Interest rate hedge contracts	Other long-term liabilities	7,472		13,142
		12,231		17,960
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Accrued AP and expenses	463		1,515




Total liability position		$	12,694	$	19,475

The Company's derivative instruments are subject to a master netting agreement with each respective counterparty bank and are therefore net settled at their maturity date. Although the Company has the legal right of offset under the master netting agreements, the Company has elected not to present these contracts on a net settlement amount basis, and therefore present these contracts on a gross basis on the accompanying consolidated condensed balance sheets at September 30, 2021 and December 31, 2020.

Cash Flow Hedging Instruments

Foreign Currency Forward Contracts

The Company uses foreign currency derivatives designated as qualifying cash flow hedging instruments, including foreign currency forward contracts to help mitigate the Company's foreign currency exposure on intercompany sales of inventory to its foreign subsidiaries. These contracts generally mature within 12 months to 15 months from their inception. At September 30, 2021 and December 31, 2020, the notional amounts of the Company's foreign currency forward contracts designated as cash flow hedge instruments were approximately $14,632,000 and $756,000, respectively.

As of September 30, 2021, the Company recorded a net gain of $2,196,000 in accumulated other comprehensive loss related to foreign currency forward contracts. Of this amount, net gains of $645,000 for the three months ended September 30, 2021 and net gains of $567,000 for the nine months ended September 30, 2021, were removed from accumulated other comprehensive loss and recognized in cost of products for the underlying sales that were recognized, and net gains of

$17,000 and $61,000 for the three and nine months ended September 30, 2021, respectively, related to the amortization of forward points were removed from accumulated other comprehensive loss and recognized in cost of products. There were no ineffective hedge gains or losses recognized during the three and nine months ended September 30, 2021. Based on the current valuation, the Company expects to reclassify net gains of $1,299,000 from accumulated other comprehensive loss into net earnings during the next 12 months.

The Company recognized net gains of $486,000 and $894,000 in cost of products in the three and nine months ended September 30, 2020, respectively.

Interest Rate Hedge Contract and Cross-Currency Debt Swap

In order to mitigate the risk of changes in interest rates associated with the Company's variable-rate Term Loan Facility and EUR denominated intercompany loan, the Company used a cross-currency debt swap and interest rate hedge, both designated as cash flow hedges (see Note 7) by converting a portion of the USD denominated Term Loan Facility, which has a higher variable interest rate, to a EUR denominated synthetic note at a lower fixed rate. During the first quarter of 2020, the Company unwound the cross-currency swap, and as of June 30, 2020 the Company determined that the forecasted transaction in connection with the underlying EUR denominated intercompany loan was no longer probable of occurring. As such, the Company discontinued the hedge and released net gains of $11,046,000 from accumulated other comprehensive income to other income (expense), net during the second quarter of 2020. The Company maintained the interest rate hedge related to the USD denominated Term Loan Facility in order to continue mitigating the risk of changes in interest rates. Over the life of the facility, the Company will receive variable interest payments from the counterparty lenders in exchange for the Company making fixed rate payments, without exchange of the underlying notional amount. The notional amount outstanding under the interest rate hedge contract was $194,847,000 and $196,350,000 as of September 30, 2021 and December 31, 2020, respectively.

During the three and nine months ended September 30, 2021, the Company recorded a net loss of $146,000 and a net gain of $2,082,000, respectively, related to the remeasurement of the interest rate hedge contract in accumulated other comprehensive loss. Of these amounts, net losses of $1,217,000 and $3,608,000 were relieved from accumulated other comprehensive loss and recognized in interest expense during the three and nine months ended September 30, 2021, respectively. Based on the current valuation, the Company expects to reclassify a net loss of $4,752,000 related to the interest rate hedge contract from accumulated other comprehensive loss into earnings during the next 12 months. The Company recognized net losses of $1,198,000 and $2,644,000 in interest expense during the three and nine months ended September 30, 2020, respectively.

In connection with the cross-currency swap contract, during the nine months ended September 30, 2020, the Company recorded a remeasurement net gain of $15,081,000 in accumulated other comprehensive loss. There were no remeasurement gains or losses recorded during the three months ended September 30, 2020. During the three and nine months ended September 30, 2020, net gains of $0 and $18,510,000 were relieved from accumulated other comprehensive loss, respectively. The recognition of these net gains into earnings is summarized as follows:

•Net gains of $11,046,000 related to the discontinuation of the cross-currency swap contract were recognized in other income in the nine months ended September 30, 2020. There were no net gains related to the discontinuation of the cross-currency swap contract in the three months ended September 30, 2020.

•Net gains of $5,735,000 related to foreign currency were recognized in other income in the nine months ended September 30, 2020. There were no net foreign currency gains or losses recognized in the three months ended September 30, 2020.

•Net gains of $0 and $1,730,000 were recognized in interest expense during the three and nine months ended September 30, 2020, respectively. There were no net gains or losses recognized in interest income during the three and nine months ended September 30, 2021.

The following tables summarize the net effect of all cash flow hedges on the consolidated condensed financial statements for the three and nine months ended September 30, 2021 and 2020 (in thousands):


	Gain/(Loss) Recognized in Other Comprehensive Income (Effective Portion)
	Three Months Ended September 30,				Nine Months Ended September 30,
Derivatives designated as cash flow hedging instruments	2021		2020		2021		2020
Foreign currency forward contracts	$	131	$	(1,070)	$	2,196	$	904
Cross-currency debt swap agreements	—		—		—		15,081
Interest rate hedge agreements	(146)		(100)		2,082		(13,261)
	$	(15)	$	(1,170)	$	4,278	$	2,724


	Gain/(Loss) Reclassified from Other Comprehensive Income into Earnings (Effective Portion)
	Three Months Ended September 30,				Nine Months Ended September 30,
Derivatives designated as cash flow hedging instruments	2021		2020		2021		2020
Foreign currency forward contracts	$	662	$	621	$	628	$	1,493
Cross-currency debt swap agreements	—		—		—		18,510
Interest rate hedge agreements	(1,217)		(1,198)		(3,608)		(2,644)
	$	(555)	$	(577)	$	(2,980)	$	17,359

Foreign Currency Forward Contracts Not Designated as Hedging Instruments

The Company uses foreign currency forward contracts that are not designated as qualifying cash flow hedging instruments to mitigate certain balance sheet exposures (payables and receivables denominated in foreign currencies), as well as gains and losses resulting from the translation of the operating results of the Company’s international subsidiaries into U.S. dollars for financial reporting purposes. These contracts generally mature within 12 months from their inception. At September 30, 2021 and December 31, 2020, the notional amounts of the Company’s foreign currency forward contracts used to mitigate the exposures discussed above were approximately $116,252,000 and $81,627,000, respectively. The Company estimates the fair values of foreign currency forward contracts based on pricing models using current market rates, and records all derivatives on the balance sheet at fair value with changes in fair value recorded in the consolidated condensed statements of operations. The foreign currency contracts are classified under Level 2 of the fair value hierarchy (see Note 16).

The following table summarizes the location of net gains and losses in the consolidated condensed statements of operations that were recognized during the three and nine months ended September 30, 2021 and 2020, respectively, in addition to the derivative contract type (in thousands):


	Location of Net Gain (Loss) Recognized in Income on Derivative Instruments	Amount of Net Gain (Loss) Recognized in Income on Derivative Instruments
Derivatives not designated as hedging instruments		Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020
Foreign currency forward contracts	Other income, net	$	2,792	$	(4,639)	$	11,822	$	622

In addition, for the three months ended September 30, 2021 and 2020, the Company recognized a net foreign currency transaction loss of $1,174,000 and a gain of $10,098,000, respectively, and net foreign currency loss of $4,241,000 and a gain of $7,857,000, respectively, for the nine months ended September 30, 2021 and 2020, related to transactions with its foreign subsidiaries.

Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

Note 18. Accumulated Other Comprehensive Loss

The following table details the amounts reclassified from accumulated other comprehensive loss to cost of products, as well as changes in foreign currency translation for the three and nine months ended September 30, 2021. Amounts are in thousands.



	Derivative Instruments		Foreign Currency Translation		Total

Accumulated other comprehensive loss, June 30, 2021, after tax	$	(8,888)	$	(2,806)	$	(11,694)
Change in derivative instruments	(15)		—		(15)
Net gains reclassified to cost of goods sold	(661)		—		(661)

Net losses reclassified to interest expense	1,217		—		1,217
Income tax provision on derivative instruments	(1,340)		—		(1,340)
Foreign currency translation adjustments	—		(12,929)		(12,929)

Accumulated other comprehensive loss, September 30, 2021, after tax	$	(9,687)	$	(15,735)	$	(25,422)


	Derivative Instruments		Foreign Currency Translation		Total

Accumulated other comprehensive loss, December 31, 2020, after tax	$	(14,017)	$	7,471	$	(6,546)
Change in derivative instruments	4,278		—		4,278
Net gains reclassified to cost of products	(628)		—		(628)

Net losses reclassified to interest expense	3,608		—		3,608
Income tax provision on derivative instruments	(2,928)		—		(2,928)
Foreign currency translation adjustments	—		(23,206)		(23,206)
Accumulated other comprehensive loss, September 30, 2021, after tax	$	(9,687)	$	(15,735)	$	(25,422)

Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

Note 19. Segment Information

On March 8, 2021, the Company completed its merger with Topgolf. Topgolf is primarily a services-based business that provides hospitality offerings and golf entertainment experiences, which is uniquely different compared to the Company's Golf Equipment and Apparel, Gear and Other businesses, which produce, distribute and sell goods through various sales channels. Accordingly, based on the Company's re-assessment of its operating segments, the Company added a third operating segment for its Topgolf business. Therefore, as of September 30, 2021, the Company had three reportable operating segments: Topgolf, Golf Equipment and Apparel, Gear and Other.

The Topgolf operating segment is primarily comprised of service revenues and expenses for its Company-operated Topgolf venues equipped with technology-enabled hitting bays, multiple bars, dining areas and event spaces, as well as Toptracer ball-flight tracking technology used by independent driving ranges and broadcast television, and the Company's WGT digital golf game.

The Golf Equipment operating segment 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.

The Apparel, Gear and Other operating segment 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 gloves), storage gear for sport and personal use. This segment also includes royalties from licensing of the Company’s trademarks and service marks for various soft goods products.

There were no significant intersegment transactions during the three and nine months ended September 30, 2021 or 2020.

The tables below contain information utilized by management to evaluate its operating segments for the interim periods presented (in thousands).


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net revenues:
Topgolf(1)	$	333,783	$	—	$	751,873	$	—
Golf equipment	289,615		267,277		1,067,756		768,881
Apparel, gear and other	233,063		208,282		602,094		445,950
Total net revenues	$	856,461	$	475,559	$	2,421,723	$	1,214,831

Income (loss) before income taxes:
Topgolf(1)	$	23,928	$	—	$	52,086	$	—
Golf equipment	45,815		56,784		228,825		144,585
Apparel, gear and other	34,634		25,909		70,792		10,399
Total segment operating income	104,377		82,693		351,703		154,984
Reconciling items(2)	(54,139)		(24,901)		94,630		(234,762)
Total income (loss) before income taxes	$	50,238	$	57,792	$	446,333	$	(79,778)

Additions to long-lived assets:(3)
Topgolf	$	85,446	$	—	$	225,583	$	—
Golf equipment	8,976		1,616		24,760		21,356
Apparel, gear and other	7,036		3,508		18,196		16,774
Total additions to long-lived assets	$	101,458	$	5,124	$	268,539	$	38,130

(1)On March 8, 2021, the Company completed the merger with Topgolf and has included the results of operations of Topgolf in its consolidated condensed statements of operations from that date forward.

(2)Reconciling items represent the deduction of corporate general and administration expenses and other income, which are not utilized by management in determining segment profitability. Reconciling items for the three and nine months ended September 30, 2021 also include (i) transaction, transition and other non-recurring expenses in connection with the merger with Topgolf of $614,000 and $19,345,000, respectively; (ii) amortization and depreciation expense of $6,654,000 and $17,620,000, respectively, on the acquired intangible assets from the merger with Topgolf and the acquisitions of OGIO, TravisMathew and Jack Wolfskin, in addition to the fair value step-up of property, plant and equipment and the market valuation adjustment on operating leases in connection with the merger with Topgolf (see Note 6); and (iii) $510,000 and $1,990,000, respectively, of costs related to the implementation of new IT systems for Jack Wolfskin. The nine months ended September 30, 2021 also includes a gain of $252,531,000 related to the fair value step-up on the Company's pre-acquisition investment in Topgolf (see Note 10).

Reconciling items for the three and nine months ended September 30, 2020 included (i) $1,235,000 and $3,592,000, respectively, of amortization expense on intangible assets from the acquisitions of OGIO, TravisMathew and Jack Wolfskin; and (ii) non-recurring costs of $5,088,000 and $12,526,000, respectively, including costs associated with the Company's transition to its new North America Distribution Center, costs associated with the acquisition of Topgolf, and the implementation of new IT systems for Jack Wolfskin, and severance related to the Company's cost reduction initiatives in response to the COVID-19 pandemic. In addition, the nine months ended September 30, 2020 includes an impairment charge of $174,269,000 recognized in the second quarter of 2020 related to Jack Wolfskin (see Note 9), and a net gain of $11,046,000 related to a cash flow hedge that was discontinued during the second quarter of 2020 (see Note 17).

(3)Additions to long-lived assets are comprised of purchases of property, plant and equipment.

- 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

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+ Details

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Note 20. Subsequent Events Subsequent to September 30, 2021, the Company announced that it has completed a $30,000,000 minority investment in Five Iron Golf, an emerging, privately-owned, urban indoor golf and entertainment company offering simulator rentals, golf lessons, custom club fittings, social events and a curated food and beverage menu. This investment will be accounted for at cost less impairments, adjusted for observable changes in fair value.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2021
Accounting Policies [Abstract]
Use of Estimates	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Examples of such estimates include determining the nature and timing of satisfaction of performance obligations as it relates to revenue recognition, the valuation of share-based awards, recoverability of long-lived assets, assessing intangible assets and goodwill for impairment, determining the incremental borrowing rate for operating and financing leases, in addition to provisions for warranty, expected credit losses, inventory obsolescence, sales returns, future price concessions, and tax contingencies and valuation allowances as well the estimated useful lives of property, plant and equipment and acquired intangible assets. Actual results may materially differ from these estimates. On an ongoing basis, the Company reviews its estimates to ensure that these estimates appropriately reflect changes in its business or as new information becomes available.
Recent Accounting Standards and Adoption of New Accounting Standards	In July 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-05, “Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments” which requires lessors to classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: (1) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in ASC 842-10-25-2 through 25-3; and (2) the lessor would have otherwise recognized a day-one loss. The amendments are effective for annual periods beginning after December 15, 2021 with early adoption permitted. The Company is currently assessing the impact of this ASU on its consolidated condensed financial statements. In August 2020, FASB issued ASU No. 2020-06, "Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity." This ASU simplifies the accounting for convertible instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost. These changes will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that was bifurcated according to previously existing rules. Also, this ASU requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method will be no longer available. The new guidance is effective for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. Entities may adopt the guidance through either a modified retrospective method of transition or a fully retrospective method of transition. In applying the modified retrospective method, entities should apply the guidance to transactions outstanding as of the beginning of the fiscal year in which the amendments are adopted. The Company is currently assessing the impact this ASU will have on its consolidated condensed financial statements. The Company anticipates adopting the modified retrospective approach, which may result in a significant increase in its dilutive share-count as the result of calculating the impact of dilution from its convertible notes using the if-converted method. The Company also anticipates a decrease in interest expense resulting from the elimination of the original issuance discount. Under the modified retrospective approach, the Company anticipates recognizing the difference between the removal of the equity component of the convertible notes and the unamortized original issuance discount as an adjustment to beginning retained earnings when it adopts this new standard on January 1, 2022. Adoption of New Accounting Standards The Company adopted ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This ASU provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Inter-bank Offered Rate ("LIBOR") or another reference rate expected to be discontinued. In January 2021, the FASB issued Accounting Standards Update ("ASU") 2021-01, "Reference Rate Reform (Topic 848): Scope." This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. The Company has elected to apply the hedge accounting expedients related to the probability and the assessments of effectiveness of LIBOR-indexed cash flow hedges upon a change in the critical terms of the derivative or the hedged transactions, and upon the end of relief under Topic 848. The Company has elected to continue the method of assessing effectiveness as documented in the original hedge documentation and elects to apply the expedient in ASC 848-50-35-17 (through 35-18) which allows the reference rate on the hypothetical derivative to match the reference rate on the hedging instrument. The adoption of this ASU did not have a material impact on the Company's consolidated condensed financial statements and disclosures. The Company adopted ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This ASU removes specific exceptions to the general principles in Accounting Standards Codification ("ASC") Topic 740, "Accounting for Income Taxes" ("Topic 740") and simplifies certain U.S. GAAP requirements. This ASU did not have a material impact on the Company's consolidated condensed financial statements or disclosures.
Leases	The Company leases office space, manufacturing plants, warehouses, distribution centers, Company-operated Topgolf venues, vehicles, and equipment, as well as retail and/or outlet locations related to the TravisMathew and Jack Wolfskin businesses and the apparel business in Japan. Certain real estate leases include one or more options to extend the lease term, options to purchase the leased property at the Company's sole discretion or escalation clauses that increase the rent payments over the lease term. When deemed reasonably certain of exercise, the renewal and purchase options are included in the determination of the lease term and lease payment obligation, respectively. The depreciable life of machinery and equipment, computer equipment and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. Certain leases may require an additional contingent rent payment based on a percentage of total gross sales greater than certain specified threshold amounts. The Company recognizes contingent rent expense when it is probable that sales thresholds will be reached during the fiscal year. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right-of-use ("ROU") assets represent the right to use an underlying asset during the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. When readily determinable, the Company uses the rate implicit in the lease agreement in determining the present value of minimum lease payments. If the implicit rate is not provided, the Company uses its incremental borrowing rate based on information available at the lease commencement date, including the lease term. At the commencement of a lease, the ROU asset for operating leases is measured by taking the sum of the present value of the lease liability, initial direct costs (if any) and prepaid lease payments (if any) and deducting lease incentives (if any). After the lease commencement date and over the lease term, lease expense is recognized as a single lease cost on a straight-line basis. Lease agreements related to properties are generally comprised of lease components and non-lease components. Non-lease components, such as common area maintenance charges, property taxes and insurance, are expensed as incurred and recognized separately from the straight-line lease expense. Variable lease payments that do not depend on an index or rate, such as rental payments based on a percentage of retail revenue over contractual levels, are expensed separately as incurred, and are not included in the measurement of the ROU asset and lease liability. Variable lease payments that depend on an index or rate, such as rates that are adjusted periodically for inflation, are included in the initial measurement of the ROU asset and lease liability and are recognized on a straight-line basis over the lease term.
Leases	In certain venue leasing arrangements, due to the Company’s involvement in the construction of leased assets, the Company is considered the owner of the leased assets for accounting purposes. In such cases, in addition to capitalizing the Company’s construction costs, the Company capitalizes the construction costs funded by the landlord related to its leased premises and recognizes a corresponding liability for those costs as construction advances during the construction period. At the end of the construction period, the Company applies sale and leaseback guidance to determine whether the underlying asset should be derecognized. When the application of the sale and leaseback guidance results in a sale, the asset and liability on the Company’s balance sheet are derecognized. When the application of the sale and leaseback guidance results in a failed sale, the asset remains on the Company’s balance sheet and is depreciated over its respective useful life or the lease term, whichever is shorter, and the liability is accounted for as a deemed landlord financing ("DLF") obligation. These DLF obligations are generally non-cancelable leases with initial terms of 20 years containing various renewal options following the initial term and escalation clauses that increase the payments over the lease term. With respect to the Company’s Toptracer operations, the Company enters into non-cancelable license agreements that provide software and hardware to driving ranges and golf courses. These license agreements provide the customer the right to use Company-owned software and hardware products for a specified period generally ranging from three to five years. The software and hardware are a distinct bundle of goods that are highly interrelated. At the inception of the arrangement, lease classification is assessed, which generally results in the license agreements being classified as sales-type leases. Upon lease commencement for sales-type leases, revenue is recognized for the software and hardware as a single component, and a leasing receivable is recorded consisting of the present value of payments over the non-cancellable term. Interest income on the leasing receivable is recognized over the lease term.
Revenue Recognition	The Company accounts for revenue recognition of products and services in accordance with ASC Topic 606, "Revenue from Contracts with Customers." See Note 4. Product Revenue The Company recognizes revenue from the sale of its golf clubs, golf balls, lifestyle and outdoor apparel, gear and accessories and golf apparel and accessories when it satisfies the terms of a sales order from a customer, and transfers control of the products ordered to the customer. Control transfers when products are shipped, and in certain cases, when products are received by customers under certain contract terms. In addition, the Company recognizes revenue at the point of sale on transactions with consumers at its retail locations and retail shops at Topgolf locations. Sales taxes, value added taxes and other taxes that are collected in connection with revenue transactions are withheld and remitted to the respective taxing authorities. As such, these taxes are excluded from revenue. The Company elected to account for shipping and handling as activities to fulfill the promise to transfer the good. Therefore, shipping and handling fees that are billed to customers are recognized in revenue and the associated shipping and handling costs are recognized in cost of products as soon as control of the goods transfers to the customer. The Company, in exchange for a royalty fee, licenses its trademarks and service marks to third parties for use on products such as golf apparel and footwear, practice aids and other golf accessories. Royalty income is recognized over time as underlying product sales occur, subject to certain minimum royalties, in accordance with the related licensing arrangements. Royalty income is included in the Company's Apparel, Gear and Other operating segment. Revenues from gift cards are deferred and recognized when the cards are redeemed for product purchases. The Company’s gift cards have no expiration date. The Company recognizes revenue from unredeemed gift cards, otherwise known as breakage, when the likelihood of redemption becomes remote and under circumstances that comply with any applicable state escheatment laws. To determine when redemption is remote, the Company analyzes an aging of unredeemed cards (based on the date the card was last used or the activation date if the card has never been used) and compares that information with historical redemption trends. The Company uses this historical redemption rate to recognize breakage on unredeemed gift cards over the redemption period. The Company does not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions used to determine the timing of recognition of gift card revenues. Services Revenue The Company recognizes revenue from the operation of its Topgolf venues consisting primarily of revenues from food and beverage sales, event deposits, fees charged for gameplay, purchases of game credits and membership fees. In addition, services revenues are recognized through the redemption of gift cards, sponsorship contracts, franchise fees, leasing revenue, the Company’s World Golf Tour ("WGT") digital golf game and non-refundable deposits for venue reservations. The Company's food and beverage revenue is recognized at the time of sale. Event deposits received from guests attributable to food and beverage purchases are deferred and recognized as revenue when the event is held. Food and beverage revenues are presented net of discounts. All sales taxes collected from guests are excluded from revenue in the consolidated condensed statements of operations and the obligation is included in accounts payable and accrued expenses on the Company’s consolidated condensed balance sheets until the taxes are remitted to the appropriate taxing authorities. Fees charged for gameplay are recognized at the time of purchase. Event deposits received from guests attributable to gameplay purchases are deferred and recognized as revenue when the event is held. Purchases of game credits are deferred and recognized as revenue when: (i) the game credits are redeemed by the guest; or (ii) the likelihood of the game credits being redeemed by the guest is remote (“game credit breakage”). The Company uses historic game credit redemption patterns to determine the likelihood of game credit redemption and game credit breakage. Game credit breakage is recorded consistent with the historic redemption pattern. Membership fees received from guests are deferred and recognized as revenue over the estimated life of the associated membership, which is one year or less. Revenues from gift cards to purchase for food and beverage or gameplay at Topgolf locations are deferred and recognized when the cards are redeemed, consistent with the gift card policy on product revenues. The Company enters into sponsorship contracts that provide advertising opportunities to market to Topgolf guests in the form of custom displays, lobby displays, digital and print posters and other advertising at Topgolf venues and on Topgolf websites. Sponsorship contracts are typically for a fixed price over a specified length of time and revenue is generally recognized ratably over the contract period unless there is a different predominate pattern of performance. The Company enters into international development agreements that grant franchise partners the right to develop, open and operate a certain number of venues within a particular geographic area. The franchise partner may be required to pay a territory fee upon entering into a development agreement and a franchise fee for each developed venue. The franchisee will also pay ongoing royalty fees based upon a percentage of sales. The franchise fees are recognized over the franchise term for each venue, which generally ranges from 15 to 20 years. Revenue from sales-based royalties is recognized as the related sales occur. Leasing revenue is recognized on non-cancelable sales-type lease agreements related to the licensing of Toptracer software and hardware to driving ranges and golf courses. See discussion above on sales-type leases. The Company’s WGT digital golf game is a live service that allows players to play for free via web and mobile gaming platforms. Within the WGT digital golf game, players can purchase virtual currency to obtain virtual goods to enhance their game-playing experience. Revenues from purchases of virtual currency are deferred at the point of purchase and recognized as revenue over the average life of a player, determined using historic gameplay activity patterns. Non-refundable deposits received for venue reservations are recognized at the time of purchase. Variable Consideration The Company offers certain discounts and promotions on its products and services. The amount of revenue the Company recognizes is based on the amount of consideration it expects to receive from customers. The amount of consideration is the sales price adjusted for estimates of variable consideration, including sales returns, discounts, and allowances as well as sales programs, sales promotions and price concessions that are offered by the Company as described below. These estimates are based on the amounts earned or to be claimed by customers on the related sales and are therefore recorded as reductions to net revenue and trade accounts receivable. The Company’s primary sales program, the “Preferred Retailer Program,” offers potential rebates and discounts for participating retailers in exchange for providing certain benefits to the Company, including the maintenance of agreed upon inventory levels, prime product placement and retailer staff training. Under this program, qualifying retailers can earn either discounts or rebates based upon the amount of product purchased. Discounts are applied and recorded at the time of sale. For rebates, the Company estimates the amount of variable consideration related to the rebate at the time of sale based on the customer’s estimated qualifying current year product purchases. The estimate is based on the historical level of purchases, adjusted for any factors expected to affect the current year purchase levels. The estimated year-end rebate is adjusted quarterly based on actual purchase levels, as necessary. The Preferred Retailer Program is generally short-term in nature and the actual amount of rebate to be paid under this program is known as of the end of the year and paid to customers shortly after year-end. Historically, the Company's actual amount of variable consideration related to its Preferred Retailer Program has not been materially different from its estimates. The Company also offers short-term sales program incentives, which include sell-through promotions and price concessions or price reductions. Sell-through promotions are generally offered throughout the product's life cycle of approximately two years, and price concessions or price reductions are generally offered at the end of the product's life cycle. The estimated variable consideration related to these programs is based on a rate that includes historical and forecasted data. The Company records a reduction to product revenues using this rate at the time of the sale. The Company monitors this rate against actual results and forecasted estimates and adjusts the rate as deemed necessary to reflect the amount of consideration it expects to receive from its customers. There were no material changes to the rate during the three months ended September 30, 2021 and 2020. Historically, the Company's actual amount of variable consideration related to these sales programs has not been materially different from its estimates. The Company records an estimate for anticipated returns as a reduction of sales and cost of sales, and accounts receivable, in the period that the related sales are recorded. Sales returns are estimated based upon historical returns, current economic trends, changes in customer demands and sell-through of products. The Company also offers certain customers sales programs that allow for specific returns. The Company records a return liability as an offset to accounts receivable for anticipated returns related to these sales programs at the time of the sale based on the terms of the sales program. The cost recovery of inventory associated with this reserve is accounted for in other current assets. Historically, the Company’s actual sales returns have not been materially different from management’s original estimates. Cost of Products The Company’s cost of products is comprised primarily of variable costs that fluctuate with sales volumes, including raw materials and component costs, merchandise from third parties, conversion costs including direct labor and manufacturing overhead, and inbound freight, duties, and shipping charges. In addition, cost of products includes retail merchandise costs for products sold in retail shops within Topgolf venue facilities. Fixed overhead expenses include warehousing costs, indirect labor, and supplies, as well as depreciation expense associated with assets used to manufacture and distribute products. In addition, cost of products includes adjustments to reflect inventory at its net realizable value, as well as adjustments for obsolescence and product warranties. Cost of Services, Excluding Depreciation and Amortization The Company’s cost of services primarily consists of food and beverage costs and transaction fees with respect to in-app purchases within the Company’s WGT digital golf game. In addition, cost of services includes costs associated with Topgolf's Toptracer license agreements classified as sales-type leases. Food and beverage costs are variable by nature, change with sales volume, and are impacted by product mix and commodity pricing. Cost of services excludes employee costs as well as depreciation and amortization. Other Venue Expenses Other venue expenses consist of salaries and wages, bonuses, commissions, payroll taxes, and other employee costs that directly support venue operations, in addition to rent and occupancy costs, property taxes, depreciation associated with venues, supplies, credit card fees and marketing expenses. Other venue expenses include both fixed and variable components and are therefore not directly correlated with revenue. Venue Pre-Opening Costs Pre-opening costs primarily include costs associated with activities prior to the opening of a new Company-operated venue, as well as other costs that are not considered in the evaluation of ongoing performance. Pre-opening costs consist of, but are not limited to, labor, rent, occupancy costs, travel and marketing expenses. Pre-opening costs fluctuate based on the timing, size and location of new Company-operated venues.The Company records an estimate for anticipated returns as a reduction of product revenues and cost of products, and accounts receivable, in the period that the related sales are recorded. Sales returns are estimated based upon historical returns, current economic trends, changes in customer demands and sell-through of products. The Company also offers certain customers sales programs that allow for specific returns. The Company records a sales return liability as an offset to accounts receivable for anticipated returns related to these sales programs at the time of sale based on the terms of the sales program. The cost recovery of inventory associated with this reserve is accounted for in other current assets. The Company's balance for cost recovery was $36,652,000 and $23,441,000 as of September 30, 2021 and December 31, 2020, respectively. The Company's provision for the sales return liability will fluctuate with the seasonality of the business, while actual sales returns are generally more heavily weighted toward the back half of the year as the golf season comes to an end. Historically, the Company’s actual sales returns have not been materially different from management’s original estimates.
Selling, General and Administrative Expenses (SG&A)	SG&A expenses are comprised primarily of employee costs, advertising and promotional costs, tour expenses, legal and professional fees, travel expenses, building and rent expenses, depreciation charges (excluding those related to manufacturing and distribution operations), amortization of intangible assets, and other miscellaneous expenses.
Research and Development	Research and development expenses are comprised of costs to develop or significantly improve the Company's products and technology, which primarily include the salaries and wages of personnel engaged in research and development activities, research costs and depreciation expense. Other than software development costs qualifying for capitalization, research and development costs are expensed as incurred.
Inventories	Unless otherwise stated below, the Company's inventory is recorded at the lower of cost or net realizable value, which includes a reserve for excess, obsolete and/or unmarketable inventory. This reserve is regularly assessed based on current inventory levels, sales trends, and historical experience, as well as management’s estimates of market conditions and forecasts of future product demand, all of which are subject to change. The Company utilizes the standard costing method, determined on the first-in, first-out basis, for its golf equipment inventory and soft goods inventory sold under the TravisMathew, OGIO, Callaway and Jack Wolfskin brands. Golf equipment inventory, which is directly manufactured by the Company, includes finished goods, raw materials, labor and manufacturing overhead costs and work in process. The Company's soft goods product lines, which are manufactured by third-party contractors, primarily include finished good products. Toptracer hardware and software, food and beverage products and Topgolf-specific retail merchandise inventories are stated at weighted average cost.
Property, Plant and Equipment	Buildings capitalized in conjunction with DLF obligations where the Company is deemed to be the accounting owner are depreciated, less residual value, over the shorter of 20 years or the lease term. Normal repairs and maintenance costs are expensed as incurred. Expenditures that materially increase values, change capacities, or extend useful lives are capitalized. The related costs and accumulated depreciation of disposed assets are eliminated and any resulting gain or loss on disposition is recognized in earnings. Construction-in-process consists primarily of costs associated with building improvements, machinery and equipment and venues under construction that have not yet been placed into service, unfinished molds as well as in-process internal-use software. In accordance with ASC Topic 350-40, “Internal-Use Software,” the Company capitalizes certain costs incurred in connection with developing or obtaining internal use software. Costs incurred in the preliminary project stage are expensed. All direct external costs and internal direct labor costs incurred to develop internal-use software during the development stage are capitalized and depreciated using the straight-line method over the remaining estimated useful lives. Costs such as maintenance and training are expensed as incurred. In accordance with ASC Topic 985-20, “Costs of Software to Be Sold, Leased, or Marketed,” costs incurred to establish the technological feasibility of software to be sold, leased, or otherwise marketed are expensed and recorded in research and development expense on the consolidated condensed statements of operations. Once technological feasibility is established, costs are capitalized until the product is available for general use and then depreciated over the estimated useful life.
Goodwill and Intangible Assets	The Company's intangible assets, which are comprised of goodwill, trade names, trademarks, service marks, trade dress, customer and distributor relationships, developed technology, non-competes, patents and liquor licenses, were acquired in connection with the acquisitions of Odyssey Sports, Inc., FrogTrader, Inc., OGIO, TravisMathew, Jack Wolfskin, certain foreign distributors and the recently completed merger with Topgolf on March 8, 2021. In accordance with ASC Topic 350, “Intangibles—Goodwill and Other,” goodwill and intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually or more frequently when events indicate that an impairment exists. The Company calculates impairment as the excess of the carrying value of goodwill and other indefinite-lived intangible assets over their estimated fair value of the reporting unit or intangible asset. If the carrying value of the reporting unit exceeds the estimate of fair value a write-down is recorded. To determine fair value, the Company uses discounted cash flow estimates, quoted market prices, royalty rates when available and independent appraisals when appropriate. During the second quarter of 2020, due to the significant disruptions caused by the COVID-19 pandemic on the Company's operations, the Company performed a qualitative assessment considering the macroeconomic conditions caused by the COVID-19 pandemic, and the potential impact on the Company's revenue and operating income for the remainder of fiscal 2020 and potentially beyond. As a result, the Company determined that there were indicators of impairment, and proceeded with a quantitative assessment to test the recoverability of goodwill for all its reporting units, in addition to the recoverability of indefinite-lived intangible assets, consisting primarily of the trade names and trademarks associated with the Company's brands. Based on this assessment, the Company determined that the fair values of the Jack Wolfskin reporting unit and the Jack Wolfskin trade name were less than their carrying values. As a result, during the second quarter of 2020, the Company recognized impairment losses to write-off the goodwill associated with the Jack Wolfskin reporting unit and write-down the trade name associated with the Jack Wolfskin brand name to its new estimated fair value. There were no further impairments recognized over the remainder of 2020. For further discussion, see Note 9. Intangible assets that are determined to have definite lives are amortized over their estimated useful lives and are measured for impairment in accordance with ASC Topic 360-10-35, “Impairment or Disposal of Long-Lived Assets” only when events or circumstances indicate the carrying value may be impaired. See Note 9 for further discussion of the Company’s intangible assets. Costs related to the development, maintenance, or renewal of internally developed intangible assets that are inherent in the Company's continuing business and relate to the Company as a whole, that were not acquired as a part of a business combination or asset acquisition, are expensed as incurred.
Estimated Credit Losses	The Company's trade accounts receivable are recorded at net realizable value, which includes an appropriate allowance for estimated credit losses, as well as reserves related to product returns and sales programs as described in Note 4. Under ASC Topic 326, the “expected credit loss” model replaces the “incurred loss” model and requires consideration of a broader range of information to estimate expected credit losses over the life of the asset. Specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. An estimate of credit losses for the remaining customers in the aggregate is based upon historical bad debts, current customer receivable balances, age of customer receivable balances, the customers' financial condition, all of which are subject to change. Additionally, the Company’s monitoring activities consider future reasonable and supportable forecasts of economic conditions to adjust all general reserve percentages as necessary. Balances are written off when determined to be uncollectible.

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Summary of Cash, Cash Equivalents and Restricted Cash

The following is a summary of cash, cash equivalents and restricted cash as of September 30, 2021 and December 31, 2020 (in thousands):


	September 30, 2021		December 31, 2020
Cash and cash equivalents	$	508,177	$	366,119
Restricted cash, short-term	1,754		—
Restricted cash, long-term	3,928		—
Total cash, cash equivalents and restricted cash	$	513,859	$	366,119

Useful Lives of Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives generally as follows:


Buildings and improvements			10-40 years
Machinery and equipment			5-10 years
Furniture, computer hardware and equipment			3-5 years
Internal-use software			3-5 years
Production molds			2-5 years

Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Sales-Type Lease, Revenue

Leasing revenue attributed to sales-type leases consists of the selling price and interest income as follows (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2021		2021
Sales-type lease selling price(1)	$	7,529	$	21,113
Cost of underlying assets	(2,990)		(8,583)
Operating profit	$	4,539	$	12,530

Interest income	$	1,425	$	3,011

(1) Selling price is equal to the present value of lease payments over the non-cancellable term.

Supplemental Balance Sheet Information Related to Leases

Leasing receivables related to the Company’s net investment in sales-type leases are as follows (in thousands):


	Balance Sheet Location	September 30, 2021
Leasing receivables, net - short-term	Other current assets	$	12,016
Leasing receivables - long-term	Other assets	38,604
		$	50,620

Supplemental balance sheet information related to leases is as follows (in thousands):


	Balance Sheet Location	September 30, 2021		December 31, 2020
Operating Leases
ROU assets, net	Operating lease ROU assets, net	$	1,066,124	$	194,776
Lease liabilities, short-term	Operating lease liabilities, short-term	$	55,507	$	29,579
Lease liabilities, long-term	Operating lease liabilities, long-term	$	1,181,443	$	177,996

Finance Leases
ROU assets, net	Other assets	$	12,025	$	1,003
Lease liabilities, short-term	Accrued expenses	$	1,269	$	252
Lease liabilities, long-term	Long-term other	$	12,121	$	447

Supplemental balance sheet information related to DLF obligations is as follows (in thousands):


	Balance Sheet Location	September 30, 2021
DLF obligation liabilities, short-term	Accrued expenses	$	580
DLF obligation liabilities, long-term	Deemed landlord financing, long-term	$	312,027

Components of Lease Expense and Other Information Related to Leases

The components of lease expense are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease costs	$	41,610	$	10,458	$	103,022	$	31,759
Financing lease costs:
Amortization of right-of-use assets	810		185		1,987		505
Interest on lease liabilities	130		9		176		31
Total financing lease costs	940		194		2,163		536
Variable lease costs	1,393		590		3,925		2,473
Total lease costs	$	43,943	$	11,242	$	109,110	$	34,768

Other information related to leases was as follows (in thousands):


	Nine Months Ended September 30,
Supplemental Cash Flows Information	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	95,757	$	29,122
Operating cash outflows from finance leases	$	390	$	31
Financing cash outflows from finance leases	$	465	$	530

Lease liabilities arising from new ROU assets:
Operating leases	$	87,484	$	54,678
Finance leases	$	10,959	$	131


	September 30, 2021		December 31, 2020
Weighted average remaining lease term (years):
Operating leases	14.4		9.8
Finance leases	17.4		3.0

Weighted average discount rate:
Operating leases	8.2	%	5.3	%
Finance leases	5.3	%	3.9	%

The components of DLF obligation expenses are as follows (in thousands):


	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
Amortization of DLF obligations	$	1,804	$	3,507
Interest on DLF obligations	6,528		13,674
Total DLF contracts expenses	$	8,332	$	17,181


Supplemental Cash Flows Information (in thousands)	Nine Months Ended September 30, 2021
Financing cash outflows from DLF obligations	$	14,039


	September 30, 2021
Weighted average remaining lease term (years)	19.25
Weighted average discount rate	8.8	%

Future Minimum Operating Lease Obligations

Future minimum lease obligations as of September 30, 2021 were as follows (in thousands):


	Operating Leases		Finance Leases
Remainder of 2021	$	37,341	$	343
2022	151,948		1,585
2023	150,345		1,580
2024	147,680		1,179
2025	145,734		836
Thereafter	1,566,420		16,123
Total future lease payments	2,199,468		21,646
Less: imputed interest	962,518		8,256
Total	$	1,236,950	$	13,390

Future Minimum Financing Lease Obligations

Future minimum lease obligations as of September 30, 2021 were as follows (in thousands):


	Operating Leases		Finance Leases
Remainder of 2021	$	37,341	$	343
2022	151,948		1,585
2023	150,345		1,580
2024	147,680		1,179
2025	145,734		836
Thereafter	1,566,420		16,123
Total future lease payments	2,199,468		21,646
Less: imputed interest	962,518		8,256
Total	$	1,236,950	$	13,390

Future minimum financing obligations related to DLF obligations as of September 30, 2021 were as follows (in thousands):


Remainder of 2021	$	6,742
2022	27,176
2023	27,044
2024	27,335
2025	27,728
Thereafter	486,354
Total future lease payments	602,379
Less: imputed interest	289,772
Total	$	312,607

Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table presents the Company's revenue disaggregated by major product category and operating and reportable segment (in thousands):


			Operating and Reportable Segments
	Three Months Ended September 30, 2021								Three Months Ended September 30, 2020
	Topgolf		Golf Equipment		Apparel, Gear & Other		Total		Golf Equipment		Apparel, Gear & Other		Total
Major revenue categories:
Venues	$	313,640	$	—	$	—	$	313,640	$	—	$	—	$	—
Other business lines	20,143		—		—		20,143		—		—		—
Golf clubs	—		229,346		—		229,346		209,356		—		209,356
Golf balls	—		60,269		—		60,269		57,921		—		57,921
Apparel	—		—		150,240		150,240		—		125,609		125,609
Gear, accessories & other	—		—		82,823		82,823		—		82,673		82,673
	$	333,783	$	289,615	$	233,063	$	856,461	$	267,277	$	208,282	$	475,559



			Operating and Reportable Segments
	Nine Months Ended September 30, 2021								Nine Months Ended September 30, 2020
	Topgolf		Golf Equipment		Apparel, Gear & Other		Total		Golf Equipment		Apparel, Gear & Other		Total
Major product category:
Venues	$	702,234	$	—	$	—	$	702,234	$	—	$	—	$	—
Other business lines	49,639		—		—		49,639		—		—		—
Golf clubs	—		865,671		—		865,671		616,620		—		616,620
Golf balls	—		202,085		—		202,085		152,261		—		152,261
Apparel	—		—		336,942		336,942		—		239,201		239,201
Gear, accessories & other	—		—		265,152		265,152		—		206,749		206,749
	$	751,873	$	1,067,756	$	602,094	$	2,421,723	$	768,881	$	445,950	$	1,214,831

The following table summarizes revenue by geographical areas in which the Company operates (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue by Major Geographic Region:
United States	$	552,895	$	214,619	$	1,583,874	$	603,836
Europe	157,215		134,680		386,559		281,473
Japan	63,441		56,530		197,188		158,517
Rest of world	82,910		69,730		254,102		171,005
	$	856,461	$	475,559	$	2,421,723	$	1,214,831

Sales Returns and Allowances

The following table provides a reconciliation of the activity related to the Company’s sales return liability (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Beginning balance	$	71,592	$	56,837	$	43,986	$	34,314
Provision	14,381		20,578		79,271		82,588
Sales returns	(14,558)		(17,099)		(51,842)		(56,586)
Ending balance	$	71,415	$	60,316	$	71,415	$	60,316

Estimated Credit Losses (Tables)

9 Months Ended

Sep. 30, 2021

Credit Loss [Abstract]

Schedule of Reconciliation Related to Allowance for Estimated Credit Losses

The following table provides a reconciliation of the activity related to the Company’s allowance for estimated credit losses (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Beginning balance	$	6,701	$	8,944	$	8,841	$	5,992
Adjustment due to the adoption of Topic 326	—		—		—		289
(Recovery)/provision for credit losses	(267)		(1,340)		(493)		2,292
Write-off of uncollectible amounts, net of recoveries	(80)		(258)		(1,994)		(1,227)

Ending balance	$	6,354	$	7,346	$	6,354	$	7,346

Business Combinations (Tables)

9 Months Ended

Sep. 30, 2021

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date based on the preliminary purchase price allocation (in thousands):


	At March 8, 2021
Assets Acquired
Cash		$	171,294
Accounts receivable		11,277
Inventories		13,828
Other current assets		52,233
Property and equipment		1,018,727
Operating lease right-of-use assets		833,812
Investments		28,263
Other assets		33,664
Intangibles - trade name		994,200
Intangibles - technology, customer relationships and liquor licenses		81,929
Goodwill		1,405,556
Total assets acquired		4,644,783
Liabilities Assumed
Accounts payable and accrued liabilities		94,434
Accrued employee costs		36,992
Construction advances		60,333
Deferred revenue		62,617
Other current liabilities		7,821
Long-term debt		535,096
Deemed landlord financing		179,718
Operating lease liabilities		1,023,338
Other long-term liabilities		23,539
Deferred tax liabilities		135,400
Net assets acquired		$	2,485,495
Goodwill allocated to other business units		563,355
Total purchase price and consideration transferred in the merger		$	3,048,850

Supplemental Pro Forma Information


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)				(in thousands)
Net revenues	$	856,461	$	691,437	$	2,564,667	$	1,700,339
Net income (loss)	$	(15,991)	$	7,258	$	101,205	$	(187,478)

Financing Arrangements (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The Company's debt obligations are summarized as follows (in thousands):


	September 30, 2021							December 31, 2020
	Maturity Date	Interest Rate		Unamortized Debt Issuance Costs		Carrying Value		Carrying Value
Short-Term Credit Facilities
U.S. Asset-Based Revolving Credit Facility	May 17, 2024	3.00	%	$	1,134	$	30,108	$	22,130
Japan ABL Facility	January 21, 2022	1.28	%	—		—		—
				$	1,134	$	30,108	$	22,130
Balance Sheet Location
Prepaid expenses				$	1,047	$	—	$	—
Other long-term assets				87		—		—
Asset-based credit facilities				—		30,108		22,130
				$	1,134	$	30,108	$	22,130

	September 30, 2021							December 31, 2020
	Maturity Date	Interest Rate		Unamortized Original Issuance Discount and Debt Issuance Costs		Carrying Value, net		Carrying Value, net
Long-Term Debt and Credit Facility
Japan Term Loan Facility	July 31, 2025	0.86	%	$	—	$	14,379	$	18,390
Term Loan B Facility	January 4, 2026	4.59	%	16,217		421,783		428,150
Topgolf Term Loan	February 8, 2026	7.00	%	6,654		334,596		—
Topgolf Revolving Credit Facility	February 8, 2024	4.75	%	6,444		28,556		—
Convertible Notes	May 1, 2026	2.75	%	67,216		191,534		183,126
Equipment Notes	December 27, 2022 - March 19, 2027	2.36% - 3.79%		—		25,546		31,822
Mortgage Loans	July 1, 2033 - July 29, 2036	9.75% - 11.31%		—		46,522		—
Financed Tenant Improvements	February 1, 2035	8.00	%	—		3,689		3,801
				$	96,531	$	1,066,605	$	665,289
Balance Sheet Location
Other current liabilities				$	3,816	$	17,586	$	—
Accrued expenses				—		—		14,725
Long-term debt				92,715		1,049,019		650,564
				$	96,531	$	1,066,605	$	665,289

Schedule of Aggregate Amount of Maturities for Debt


	(in thousands)
Remainder of 2021	$	5,254
2022	21,232
2023	18,575
2024	52,352
2025	14,155
Thereafter	1,051,568
	$	1,163,136

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-Topic 505
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Earnings per Common Share (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Summary of Computation of Basic and Diluted Earnings Per Share

The following table summarizes the computation of basic and diluted earnings per share (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Earnings per common share—basic
Net income (loss)	$	(15,991)	$	52,432	$	348,214	$	(86,358)
Weighted-average common shares outstanding—basic(1)	185,963		94,171		163,141		94,207
Basic earnings (loss) per common share	$	(0.09)	$	0.56	$	2.13	$	(0.92)
Earnings per common share—diluted
Net income (loss)	$	(15,991)	$	52,432	$	348,214	$	(86,358)
Weighted-average common shares outstanding—basic(1)	185,963		94,171		163,141		94,207
Convertible notes weighted-average shares outstanding	—		924		6,117		—
Outstanding options, restricted stock units and performance share units	—		1,517		1,936		—
Weighted-average common shares outstanding—diluted	185,963		96,612		171,194		94,207
Diluted earnings (loss) per common share	$	(0.09)	$	0.54	$	2.03	$	(0.92)

Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Changes in the carrying amount of goodwill by operating and reportable segment are as follows (in thousands):


	Topgolf		Golf Equipment		Apparel, Gear and Other		Total
Balance at December 31, 2020	$	—	$	27,025	$	29,633		$	56,658
Acquisitions	1,405,556		504,690		58,665			$	1,968,911
Impairments	—		—		—			$	—
Foreign currency translation	—		(394)		—			$	(394)
Balance at September 30, 2021	$	1,405,556	$	531,321	$	88,298		$	2,025,175

Intangible Assets by Major Asset Class

The following sets forth the intangible assets by major asset class (dollars in thousands):


	Useful Life (Years)	September 30, 2021
		Gross(1)		Accumulated Amortization			Translation Adjustment			Net Book Value
Indefinite-lived:
Trade name, trademark, trade dress and other	NA	$	1,441,003		$	—		$	11,893	$	1,429,110
Liquor licenses	NA	7,756			—			—		7,756
Amortizing:
Patents	2-16	32,041			31,645			—		396
Customer and distributor relationships and other	1-10	61,378			25,195			1,757		34,426
Developed technology	10	69,821			3,909			553		65,359
Total intangible assets		$	1,611,999		$	60,749		$	14,203	$	1,537,047


	Useful Life (Years)	December 31, 2020
		Gross		Accumulated Amortization			Net Book Value
Indefinite-lived:
Trade name, trademark, trade dress and other	NA	$	446,803		$	—		$	446,803

Amortizing:
Patents	2-16	31,581			31,581			—
Customer and distributor relationships and other	1-10	57,309			19,773			37,536

Total intangible assets		$	535,693		$	51,354		$	484,339

Amortization Expense Related to Intangible Assets

Amortization expense related to intangible assets at September 30, 2021 in each of the next five fiscal years and beyond is expected to be incurred as follows (in thousands):


Remainder of 2021	$	7,233
2022	13,177
2023	11,616
2024	11,471
2025	11,395
Thereafter	45,289
	$	100,181

Product Warranty (Tables)

9 Months Ended

Sep. 30, 2021

Guarantees [Abstract]

Reconciliation of Reserve for Warranty Expense

The following table provides a reconciliation of the activity related to the Company's warranty reserve (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Beginning balance	$	11,533	$	9,779	$	9,364	$	9,636
Provision	1,938		2,137		7,871		5,507

Claims paid/costs incurred	(1,950)		(2,276)		(5,714)		(5,503)
Ending balance	$	11,521	$	9,640	$	11,521	$	9,640

Selected Financial Statement Information (Tables)

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Selected Financial Statement Information


	September 30, 2021		December 31, 2020
	(In thousands)






Inventories:
Finished goods	$	295,962	$	281,602
Work in process	858		1,010
Raw materials	83,994		69,932
Food and beverage	4,497		—
	$	385,311	$	352,544
Property, plant and equipment, net:
Land	$	90,200	$	7,308
Buildings and leasehold improvements	841,664		100,653
Machinery and equipment	200,416		137,026
Furniture, computer hardware and equipment	193,638		100,558
Internal-use software	80,697		42,082
Production molds	7,220		6,809
Construction-in-process	215,090		13,299
	1,628,925		407,735
Accumulated depreciation	(298,599)		(261,240)
	$	1,330,326	$	146,495
Accounts payable and accrued expenses:
Accounts payable	$	126,643	$	66,282
Accrued expenses	230,178		136,277
Accrued inventory	96,817		73,650
	$	453,638	$	276,209
Accrued employee compensation and benefits:
Accrued payroll and taxes	$	89,103	$	17,009
Accrued vacation and sick pay	21,753		12,887
Accrued commissions	5,090		1,041
	$	115,946	$	30,937

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

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


Tax Jurisdiction						Years No Longer Subject to Audit
U.S. federal						2010 and prior
California (U.S.)						2008 and prior
Germany						2013 and prior
Japan						2015 and prior
South Korea						2015 and prior
United Kingdom						2016 and prior

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Purchase Commitments

The minimum obligation that the Company is required to pay as of September 30, 2021 under these agreements is $85,143,000 over the next five years and thereafter as follows (in thousands):


Remainder of 2021	$	31,167
2022	32,429
2023	20,759
2024	664
2025	124
Thereafter	—
	$	85,143

Share-Based Employee Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Summary of Weighted Average Fair Value Assumptions

The table below summarizes the range and the weighted averages of the fair value assumptions used in the valuation as of March 8, 2021.


Assumptions:	Range	Weighted Averages
Expected term (in years)	0.3 - 7.1	3.7
Volatility	43.0% - 85.4%	55.1%
Risk free interest rate	0.1% -1.3%	0.6%
Dividend yield	—	—

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020

Cost of products	$	345	$	158	$	892	$	553
Selling, general and administrative expenses	10,867		2,930		25,548		7,044
Research and development expenses	263		184		683		469
Total cost of share-based compensation included in income, before income tax	11,475		3,272		27,123		8,066
Income tax benefit	2,754		785		6,510		1,936
Total cost of employee share-based compensation, after tax	$	8,721	$	2,487	$	20,613	$	6,130

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Valuation of Foreign Currency Exchange Contracts by Pricing Levels


	Fair Value		Level 1		Level 2		Level 3
September 30, 2021
Foreign currency forward contracts—asset position(1)	$	4,855	$	—	$	4,855	$	—
Foreign currency forward contracts—liability position(1)	(470)		—		(470)		—





Interest rate hedge agreements—liability position(2)	(12,224)		—		(12,224)		—


	$	(7,839)	$	—	$	(7,839)	$	—
December 31, 2020
Foreign currency forward contracts—asset position(1)	$	90	$	—	$	90	$	—
Foreign currency forward contracts—liability position(1)	(1,553)		—		(1,553)		—




Interest rate hedge agreements—liability position(2)	(17,922)		—		(17,922)		—
	$	(19,385)	$	—	$	(19,385)	$	—

Fair Value Relating to Financial Assets and Liabilities


	September 30, 2021				December 31, 2020
	Carrying Value		Fair Value		Carrying Value		Fair Value
Term Loan Facility(1)	$	438,000	$	439,883	$	441,600	$	443,243
Japan Term Loan Facility(2)	14,379		13,381		18,390		16,083
Convertible Notes(3)	258,750		452,937		258,750		414,191
U.S. Asset-Based Revolving Credit Facility(4)	30,108		30,108		22,130		22,130

Equipment Notes(5)	25,546		24,777		31,822		29,385
Topgolf Revolving Credit Facility(6)	35,000		28,556		—		—
Mortgage Loans(7)	46,522		52,546		—		—
Topgolf Term Loan(8)	341,250		339,782		—		—

(7)The fair value of the mortgage loans is calculated based on the future payments under the mortgage agreement discounted at the incremental borrowing rate. See Note 7 for further information.

(8)The fair value of the Topgolf Term Loan is based on quoted market rate from the lender. See Note 7 for further information.

Derivatives and Hedging (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Fair Value of Derivative Instruments by Contract Type and Location of Asset and/or Liability on Consolidated Condensed Balance Sheets


	Balance Sheet Location	Fair Value of Asset Derivatives
		September 30, 2021		December 31, 2020
Derivatives designated as cash flow hedging instruments:
Foreign currency forward contracts	Other current assets	$	1,109	$	37






Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	3,746		53



Total asset position		$	4,855	$	90


	Balance Sheet Location	Fair Value of Liability Derivatives
		September 30, 2021		December 31, 2020
Derivatives designated as cash flow hedging instruments:
Foreign currency forward contracts	Accounts payable and accrued expenses	$	7	$	38




Interest rate hedge contracts	Accounts payable and accrued expenses	4,752		4,780
Interest rate hedge contracts	Other long-term liabilities	7,472		13,142
		12,231		17,960
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Accrued AP and expenses	463		1,515




Total liability position		$	12,694	$	19,475

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)


	Gain/(Loss) Recognized in Other Comprehensive Income (Effective Portion)
	Three Months Ended September 30,				Nine Months Ended September 30,
Derivatives designated as cash flow hedging instruments	2021		2020		2021		2020
Foreign currency forward contracts	$	131	$	(1,070)	$	2,196	$	904
Cross-currency debt swap agreements	—		—		—		15,081
Interest rate hedge agreements	(146)		(100)		2,082		(13,261)
	$	(15)	$	(1,170)	$	4,278	$	2,724


	Gain/(Loss) Reclassified from Other Comprehensive Income into Earnings (Effective Portion)
	Three Months Ended September 30,				Nine Months Ended September 30,
Derivatives designated as cash flow hedging instruments	2021		2020		2021		2020
Foreign currency forward contracts	$	662	$	621	$	628	$	1,493
Cross-currency debt swap agreements	—		—		—		18,510
Interest rate hedge agreements	(1,217)		(1,198)		(3,608)		(2,644)
	$	(555)	$	(577)	$	(2,980)	$	17,359

Location of Gains in Consolidated Condensed Statements of Operations that were Recognized and Derivative Contract Type


	Location of Net Gain (Loss) Recognized in Income on Derivative Instruments	Amount of Net Gain (Loss) Recognized in Income on Derivative Instruments
Derivatives not designated as hedging instruments		Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020
Foreign currency forward contracts	Other income, net	$	2,792	$	(4,639)	$	11,822	$	622

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)



	Derivative Instruments		Foreign Currency Translation		Total

Accumulated other comprehensive loss, June 30, 2021, after tax	$	(8,888)	$	(2,806)	$	(11,694)
Change in derivative instruments	(15)		—		(15)
Net gains reclassified to cost of goods sold	(661)		—		(661)

Net losses reclassified to interest expense	1,217		—		1,217
Income tax provision on derivative instruments	(1,340)		—		(1,340)
Foreign currency translation adjustments	—		(12,929)		(12,929)

Accumulated other comprehensive loss, September 30, 2021, after tax	$	(9,687)	$	(15,735)	$	(25,422)


	Derivative Instruments		Foreign Currency Translation		Total

Accumulated other comprehensive loss, December 31, 2020, after tax	$	(14,017)	$	7,471	$	(6,546)
Change in derivative instruments	4,278		—		4,278
Net gains reclassified to cost of products	(628)		—		(628)

Net losses reclassified to interest expense	3,608		—		3,608
Income tax provision on derivative instruments	(2,928)		—		(2,928)
Foreign currency translation adjustments	—		(23,206)		(23,206)
Accumulated other comprehensive loss, September 30, 2021, after tax	$	(9,687)	$	(15,735)	$	(25,422)

Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The tables below contain information utilized by management to evaluate its operating segments for the interim periods presented (in thousands).


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net revenues:
Topgolf(1)	$	333,783	$	—	$	751,873	$	—
Golf equipment	289,615		267,277		1,067,756		768,881
Apparel, gear and other	233,063		208,282		602,094		445,950
Total net revenues	$	856,461	$	475,559	$	2,421,723	$	1,214,831

Income (loss) before income taxes:
Topgolf(1)	$	23,928	$	—	$	52,086	$	—
Golf equipment	45,815		56,784		228,825		144,585
Apparel, gear and other	34,634		25,909		70,792		10,399
Total segment operating income	104,377		82,693		351,703		154,984
Reconciling items(2)	(54,139)		(24,901)		94,630		(234,762)
Total income (loss) before income taxes	$	50,238	$	57,792	$	446,333	$	(79,778)

Additions to long-lived assets:(3)
Topgolf	$	85,446	$	—	$	225,583	$	—
Golf equipment	8,976		1,616		24,760		21,356
Apparel, gear and other	7,036		3,508		18,196		16,774
Total additions to long-lived assets	$	101,458	$	5,124	$	268,539	$	38,130

(1)On March 8, 2021, the Company completed the merger with Topgolf and has included the results of operations of Topgolf in its consolidated condensed statements of operations from that date forward.

(3)Additions to long-lived assets are comprised of purchases of property, plant and equipment.

Basis of Presentation (Details)	9 Months Ended
Basis of Presentation (Details)	Sep. 30, 2021 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	3

Summary of Significant Accounting Policies - Narrative (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Lessor, direct financing lease, term of contract	20 years
Sell-through promotion, useful life	2 years
Restricted cash		$ 0
Buildings Capitalized
Lessee, Lease, Description [Line Items]
Property, plant and equipment, useful life	20 years
Minimum
Lessee, Lease, Description [Line Items]
Franchise, term of contract	15 years
Minimum \| Software and Hardware
Lessee, Lease, Description [Line Items]
Lessor, operating lease, term of contract	3 years
Maximum
Lessee, Lease, Description [Line Items]
Franchise, term of contract	20 years
Maximum \| Software and Hardware
Lessee, Lease, Description [Line Items]
Lessor, operating lease, term of contract	5 years

Summary of Significant Accounting Policies - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 508,177	$ 366,119	$ 286,656
Restricted cash, short-term	1,754	0
Restricted cash, long-term	3,928	0
Total cash, cash equivalents and restricted cash	$ 513,859	$ 366,119	$ 286,656	$ 106,666

Summary of Significant Accounting Policies - Useful Lives of Property, Plant and Equipment (Details)	9 Months Ended
	Sep. 30, 2021
Minimum \| Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Minimum \| Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Minimum \| Furniture, computer hardware and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Minimum \| Internal-use software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Minimum \| Production molds
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	2 years
Maximum \| Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	40 years
Maximum \| Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Maximum \| Furniture, computer hardware and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Maximum \| Internal-use software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Maximum \| Production molds
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years

Leases - Narrative (Details)	3 Months Ended		9 Months Ended
Leases - Narrative (Details)	Sep. 30, 2021 USD ($) lease landlord_building	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) lease landlord_building	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Lessee, Lease, Description [Line Items]
Sales-type lease, revenue	$ 8,954,000		$ 24,124,000
Rent abatement			$ 800,820,000
Lessee, operating lease, number of leases not yet commenced \| lease	15		15
Lessee, operating lease, lease not yet commenced, construction costs	$ 120,983,000		$ 120,983,000
Construction advances	$ 54,264,000		$ 54,264,000		$ 0
Lessee, operating lease, lease not yet commenced, term of contract	20 years		20 years
Deemed Landlord Finance Lease
Lessee, Lease, Description [Line Items]
Number of deemed landlord financing leases that did not meet sale-leaseback criteria \| lease			5
Number of landlord buildings \| landlord_building	13		13
Finance lease, right-of-use asset, after accumulated amortization	$ 375,139,000		$ 375,139,000
Lessee, finance lease, term of contract	20 years		20 years
Lease Commencing 2021
Lessee, Lease, Description [Line Items]
Lessee, operating lease, lease not yet commenced, undiscounted amount	$ 83,000,000		$ 83,000,000
COVID-19
Lessee, Lease, Description [Line Items]
Rent concession payable	6,722,000	$ 687,000	6,722,000	$ 687,000
Rent abatement	0	$ 120,000	0	$ 1,431,000
COVID-19 \| Accrued expenses
Lessee, Lease, Description [Line Items]
Rent concession payable	670,000		670,000
COVID-19 \| Other long-term liabilities
Lessee, Lease, Description [Line Items]
Rent concession payable	$ 6,052,000		$ 6,052,000

Leases - Sales-Type Leases, Revenue (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Leases [Abstract]
Sales-type lease, selling price	$ 7,529	$ 21,113
Cost of underlying assets	(2,990)	(8,583)
Operating profit	4,539	12,530
Interest income	$ 1,425	$ 3,011

Leases - Sales-Type Leases (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Leases [Abstract]
Leasing receivables, net - short-term	$ 12,016
Leasing receivables - long-term	38,604
Total leasing receivables	$ 50,620

Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Operating Leases
ROU assets, net	$ 1,066,124	$ 194,776
Lease liabilities, short-term	55,507	29,579
Lease liabilities, long-term	1,181,443	177,996
Finance Leases
ROU assets, net	12,025	1,003
Lease liabilities, short-term	1,269	252
Lease liabilities, long-term	$ 12,121	$ 447
Finance Lease, Liability, Statement of Financial Position [Extensible List]	Other assets	Other assets
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accounts payable and accrued expenses	Accounts payable and accrued expenses
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities
Deemed Landlord Finance Lease
Finance Leases
Lease liabilities, short-term	$ 580
Lease liabilities, long-term	$ 312,027	$ 0

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 41,610	$ 10,458	$ 103,022	$ 31,759
Financing lease costs:
Amortization of right-of-use assets	810	185	1,987	505
Interest on lease liabilities	130	9	176	31
Total financing lease costs	940	194	2,163	536
Variable lease costs	1,393	590	3,925	2,473
Total lease costs	43,943	$ 11,242	109,110	$ 34,768
Deemed Landlord Finance Lease
Financing lease costs:
Amortization of right-of-use assets	1,804		3,507
Interest on lease liabilities	6,528		13,674
Total financing lease costs	$ 8,332		$ 17,181

Leases - Other Information Related to Leases (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$ 95,757	$ 29,122
Operating cash outflows from finance leases	390	31
Financing cash outflows from finance leases	465	530
Lease liabilities arising from new ROU assets:
Operating leases	87,484	54,678
Finance leases	$ 10,959	$ 131
Weighted average remaining lease term (years):
Operating leases	14 years 4 months 24 days		9 years 9 months 18 days
Finance leases	17 years 4 months 24 days		3 years
Weighted average discount rate:
Operating leases	8.20%		5.30%
Finance leases	5.30%		3.90%
Deemed Landlord Finance Lease
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash outflows from finance leases	$ 14,039
Weighted average remaining lease term (years):
Finance leases	19 years 3 months
Weighted average discount rate:
Finance leases	8.80%

Leases - Future Minimum Lease Obligations (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Operating Leases
Remainder of 2021	$ 37,341
2022	151,948
2023	150,345
2024	147,680
2025	145,734
Thereafter	1,566,420
Total future lease payments	2,199,468
Less: imputed interest	962,518
Total	1,236,950
Finance Leases
Remainder of 2021	343
2022	1,585
2023	1,580
2024	1,179
2025	836
Thereafter	16,123
Total future lease payments	21,646
Less: imputed interest	8,256
Total	13,390
Deemed Landlord Finance Lease
Finance Leases
Remainder of 2021	6,742
2022	27,176
2023	27,044
2024	27,335
2025	27,728
Thereafter	486,354
Total future lease payments	602,379
Less: imputed interest	289,772
Total	$ 312,607

Revenue Recognition - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
Revenue Recognition - Narrative (Details) $ in Thousands	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Number of operating segments \| segment			3
Number of reportable segments \| segment			3
Total net revenues	$ 856,461	$ 475,559	$ 2,421,723	$ 1,214,831
Royalty income	17,009	5,849	50,117	14,946
Deferred revenue	84,359		84,359		$ 2,546
Reserve for cost recovery	36,652		36,652		$ 23,441
Products
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Total net revenues	527,064	475,559	1,678,432	1,214,831
Topgolf
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Total net revenues	333,783		$ 751,873
Months of revenue			7 months
Topgolf \| Products
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Total net revenues	4,387		$ 8,582
Redeemed Gift Cards and Gift Card Breakage
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Revenue from gift cards, recognized in period	$ 106,283	$ 795	$ 231,561	$ 1,825

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total net revenues	$ 856,461	$ 475,559	$ 2,421,723	$ 1,214,831
United States
Disaggregation of Revenue [Line Items]
Total net revenues	552,895	214,619	1,583,874	603,836
Europe
Disaggregation of Revenue [Line Items]
Total net revenues	157,215	134,680	386,559	281,473
Japan
Disaggregation of Revenue [Line Items]
Total net revenues	63,441	56,530	197,188	158,517
Rest of world
Disaggregation of Revenue [Line Items]
Total net revenues	82,910	69,730	254,102	171,005
Topgolf
Disaggregation of Revenue [Line Items]
Total net revenues	333,783		751,873
Golf Equipment
Disaggregation of Revenue [Line Items]
Total net revenues	289,615	267,277	1,067,756	768,881
Apparel, Gear & Other
Disaggregation of Revenue [Line Items]
Total net revenues	233,063	208,282	602,094	445,950
Venues
Disaggregation of Revenue [Line Items]
Total net revenues	313,640		702,234
Venues \| Topgolf
Disaggregation of Revenue [Line Items]
Total net revenues	313,640		702,234
Other business lines
Disaggregation of Revenue [Line Items]
Total net revenues	20,143		49,639
Other business lines \| Topgolf
Disaggregation of Revenue [Line Items]
Total net revenues	20,143		49,639
Golf clubs
Disaggregation of Revenue [Line Items]
Total net revenues	229,346	209,356	865,671	616,620
Golf clubs \| Golf Equipment
Disaggregation of Revenue [Line Items]
Total net revenues	229,346	209,356	865,671	616,620
Golf balls
Disaggregation of Revenue [Line Items]
Total net revenues	60,269	57,921	202,085	152,261
Golf balls \| Golf Equipment
Disaggregation of Revenue [Line Items]
Total net revenues	60,269	57,921	202,085	152,261
Apparel
Disaggregation of Revenue [Line Items]
Total net revenues	150,240	125,609	336,942	239,201
Apparel \| Apparel, Gear & Other
Disaggregation of Revenue [Line Items]
Total net revenues	150,240	125,609	336,942	239,201
Gear, accessories & other
Disaggregation of Revenue [Line Items]
Total net revenues	82,823	82,673	265,152	206,749
Gear, accessories & other \| Apparel, Gear & Other
Disaggregation of Revenue [Line Items]
Total net revenues	$ 82,823	$ 82,673	$ 265,152	$ 206,749

Revenue Recognition - Sales Return Reserve (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 71,592	$ 56,837	$ 43,986	$ 34,314
Provision	14,381	20,578	79,271	82,588
Sales returns	(14,558)	(17,099)	(51,842)	(56,586)
Ending balance	$ 71,415	$ 60,316	$ 71,415	$ 60,316

Estimated Credit Losses - Narrative (Details)	9 Months Ended
Estimated Credit Losses - Narrative (Details)	Sep. 30, 2021
Credit Loss [Abstract]
Accounts receivable, allowance for credit loss, payment term for customers	60 days

Estimated Credit Losses - Schedule of Reconciliation Related to Allowance for Estimated Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 6,701	$ 8,944	$ 8,841	$ 5,992
(Recovery)/provision for credit losses	(267)	(1,340)	(493)	2,292
Write-off of uncollectible amounts, net of recoveries	(80)	(258)	(1,994)	(1,227)
Ending balance	6,354	7,346	6,354	7,346
Adjustment due to the adoption of Topic 326
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 0	$ 0	$ 0	$ 289

Business Combinations - Narrative (Details) - USD ($)		3 Months Ended			9 Months Ended
Business Combinations - Narrative (Details) - USD ($)	Mar. 08, 2021	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Oct. 27, 2020
Business Acquisition [Line Items]
Goodwill		$ 2,025,175,000			$ 2,025,175,000		$ 56,658,000
Business combination, acquisition related costs					(16,199,000)	$ 0
Gain on Topgolf investment					252,531,000	0
Total net revenues		856,461,000		$ 475,559,000	2,421,723,000	1,214,831,000
Topgolf
Business Acquisition [Line Items]
Goodwill		1,405,556,000			1,405,556,000		$ 0
Total net revenues		333,783,000			751,873,000
Operating segments \| Topgolf
Business Acquisition [Line Items]
Total net revenues		333,783,000		$ 0	751,873,000	0
Minimum \| Developed Technology and Customer Relationships
Business Acquisition [Line Items]
Useful life	1 year
Maximum \| Developed Technology and Customer Relationships
Business Acquisition [Line Items]
Useful life	10 years
Topgolf International, Inc
Business Acquisition [Line Items]
Business acquisition, equity interest issued or issuable, number of shares (in shares)	89,776,450
Business acquisition, number of common stock shares acquired (in shares)	12,329,721
Business combination, step acquisition, equity interest in acquiree, including subsequent acquisition percentage	100.00%
Business combination, equity value	$ 1,987,000,000
Business combination, step acquisition, equity value of acquiree	$ 1,748,000,000
Business combination, exchange ratio, share price (in dollars per share)	$ 19.40
Payments to acquire businesses, gross	$ 3,014,174,000
Business combination, step acquisition, equity interest in acquiree, fair value	$ 2,650,201,000
Business acquisition, share price (in dollars per share)	$ 29.52
Business combination, consideration converted, share-based compensation (in shares)	187,568
Business combination, consideration transferred, share-based compensation	$ 33,051,000
Business combination, consideration transferred, equity interest issued and issuable	1,625,000
Total purchase price and consideration transferred in the merger	3,048,850,000
Goodwill	1,968,911,000
Business combination, acquisition related costs		0			16,199,000	$ 1,544,000
Gain on Topgolf investment	252,531,000		$ 252,531,000
Business combination, pro forma information, earnings or loss of acquiree since acquisition date, actual		$ 2,832,000			$ 396,000
Topgolf International, Inc \| Future Revenues And Growth
Business Acquisition [Line Items]
Goodwill	1,405,556,000
Topgolf International, Inc \| Synergies
Business Acquisition [Line Items]
Goodwill	$ 563,355,000
Topgolf International, Inc \| Measurement Input, Royalty Rate \| Royalty Savings Income Approach Method
Business Acquisition [Line Items]
Business combination, assumed indefinite lived intangible assets, measurement input	2.50%
Topgolf International, Inc \| Measurement Input, Discount Rate \| Royalty Savings Income Approach Method \| Minimum
Business Acquisition [Line Items]
Business combination, assumed indefinite lived intangible assets, measurement input	7.00%
Topgolf International, Inc \| Measurement Input, Discount Rate \| Royalty Savings Income Approach Method \| Maximum
Business Acquisition [Line Items]
Business combination, assumed indefinite lived intangible assets, measurement input	8.50%
Topgolf International, Inc \| Callaway Shareholders
Business Acquisition [Line Items]
Business combination, step acquisition, equity interest in acquiree, including subsequent acquisition percentage								51.30%
Topgolf International, Inc \| Former Topgolf Stakeholders
Business Acquisition [Line Items]
Business combination, step acquisition, equity interest in acquiree, including subsequent acquisition percentage								48.70%
Topgolf International, Inc \| Topgolf International, Inc
Business Acquisition [Line Items]
Business combination, step acquisition, equity interest in acquiree, percentage								14.30%

Business Combinations - Summary of Fair Values of the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 08, 2021	Sep. 30, 2021	Dec. 31, 2020
Assets Acquired
Goodwill		$ 2,025,175	$ 56,658
Liabilities Assumed
Goodwill allocated to other business units		$ 2,025,175	$ 56,658
Topgolf International, Inc
Assets Acquired
Cash	$ 171,294
Accounts receivable	11,277
Inventories	13,828
Other current assets	52,233
Property and equipment	1,018,727
Operating lease right-of-use assets	833,812
Investments	28,263
Other assets	33,664
Intangibles - trade name	994,200
Intangibles - technology, customer relationships and liquor licenses	81,929
Goodwill	1,968,911
Total assets acquired	4,644,783
Liabilities Assumed
Accounts payable and accrued liabilities	94,434
Accrued employee costs	36,992
Construction advances	60,333
Deferred revenue	62,617
Other current liabilities	7,821
Long-term debt	535,096
Deemed landlord financing	179,718
Operating lease liabilities	1,023,338
Other long-term liabilities	23,539
Deferred tax liabilities	135,400
Net assets acquired	2,485,495
Goodwill allocated to other business units	1,968,911
Total purchase price and consideration transferred in the merger	3,048,850
Topgolf International, Inc \| Future Revenues And Growth
Assets Acquired
Goodwill	1,405,556
Liabilities Assumed
Goodwill allocated to other business units	1,405,556
Topgolf International, Inc \| Synergies
Assets Acquired
Goodwill	563,355
Liabilities Assumed
Goodwill allocated to other business units	$ 563,355

Business Combinations - Supplemental Pro-Forma Information (Details) - Topgolf International, Inc - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Business Acquisition [Line Items]
Net revenues	$ 856,461	$ 691,437	$ 2,564,667	$ 1,700,339
Net income (loss)	$ (15,991)	$ 7,258	$ 101,205	$ (187,478)

Financing Arrangements - Schedule of Long-term Debt Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	May 31, 2020
Debt Instrument [Line Items]
Unamortized Original Issuance Discount and Debt Issuance Costs	$ 1,134
Short-term debt	30,108	$ 22,130
Long-term debt, gross	1,163,136
Long-term debt	1,066,605	665,289
Notes Payable, Other Payables
Debt Instrument [Line Items]
Unamortized Original Issuance Discount and Debt Issuance Costs	0
Long-term debt, gross	$ 25,546	31,822
Notes Payable, Other Payables \| Minimum
Debt Instrument [Line Items]
Interest Rate	0.0236%
Notes Payable, Other Payables \| Maximum
Debt Instrument [Line Items]
Interest Rate	0.0379%
Mortgages
Debt Instrument [Line Items]
Unamortized Original Issuance Discount and Debt Issuance Costs	$ 0
Long-term debt, gross	$ 46,522	0
Mortgages \| Minimum
Debt Instrument [Line Items]
Interest Rate	0.0975%
Mortgages \| Maximum
Debt Instrument [Line Items]
Interest Rate	0.1131%
Tenant Improvements
Debt Instrument [Line Items]
Interest Rate	8.00%
Unamortized Original Issuance Discount and Debt Issuance Costs	$ 0
Long-term debt, gross	3,689	3,801
Long Term Unamortized Debt Issuance Costs
Debt Instrument [Line Items]
Unamortized Original Issuance Discount and Debt Issuance Costs	96,531
Prepaid expenses
Debt Instrument [Line Items]
Unamortized Original Issuance Discount and Debt Issuance Costs	1,047
Short-term debt	0	0
Other long-term assets
Debt Instrument [Line Items]
Unamortized Original Issuance Discount and Debt Issuance Costs	87
Short-term debt	0	0
Asset-based credit facilities
Debt Instrument [Line Items]
Unamortized Original Issuance Discount and Debt Issuance Costs	0
Short-term debt	30,108	22,130
Other current liabilities
Debt Instrument [Line Items]
Unamortized Original Issuance Discount and Debt Issuance Costs	3,816
Long-term debt	17,586	0
Accrued expenses
Debt Instrument [Line Items]
Unamortized Original Issuance Discount and Debt Issuance Costs	0
Long-term debt	0	14,725
Long-term debt
Debt Instrument [Line Items]
Unamortized Original Issuance Discount and Debt Issuance Costs	92,715
Long-term debt	$ 1,049,019	650,564
Topgolf Term Loan \| Secured Debt
Debt Instrument [Line Items]
Interest Rate	0.07%
Unamortized Original Issuance Discount and Debt Issuance Costs	$ 6,654
Long-term debt, gross	$ 334,596	0
Convertible Notes \| Senior Notes
Debt Instrument [Line Items]
Interest Rate	2.75%		2.75%
Unamortized Original Issuance Discount and Debt Issuance Costs	$ 67,216
Long-term debt, gross	$ 191,534	183,126
Revolving Credit Facility \| Japan Term Loan Facility \| Line of Credit
Debt Instrument [Line Items]
Interest Rate	0.0086%
Unamortized Original Issuance Discount and Debt Issuance Costs	$ 0
Long-term debt, gross	$ 14,379	18,390
Revolving Credit Facility \| Term Loan B Facility \| Line of Credit
Debt Instrument [Line Items]
Interest Rate	4.59%
Unamortized Original Issuance Discount and Debt Issuance Costs	$ 16,217
Long-term debt, gross	$ 421,783	428,150
Revolving Credit Facility \| Topgolf Revolving Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Interest Rate	4.75%
Unamortized Original Issuance Discount and Debt Issuance Costs	$ 6,444
Long-term debt, gross	$ 28,556	0
Revolving Credit Facility \| Line of Credit \| U.S. Asset-Based Revolving Credit Facility
Debt Instrument [Line Items]
Interest Rate	0.03%
Unamortized Original Issuance Discount and Debt Issuance Costs	$ 1,134
Short-term debt	$ 30,108	22,130
Revolving Credit Facility \| Line of Credit \| Japan ABL Facility
Debt Instrument [Line Items]
Interest Rate	0.0128%
Unamortized Original Issuance Discount and Debt Issuance Costs	$ 0
Short-term debt	$ 0	$ 0

Financing Arrangements - Revolving Credit Facilities and Available Liquidity (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Line of Credit Facility [Line Items]
Cash and cash equivalents	$ 508,177	$ 366,119	$ 286,656
Total available liquidity	918,000		636,891
Revolving Credit Facility \| Line of Credit \| U.S. and Japan Credit Facilities
Line of Credit Facility [Line Items]
Debt, long-term and short-term, combined amount	$ 65,108		$ 30,235

Financing Arrangements - U.S. Asset-Based Revolving Credit Facility (Detail)	1 Months Ended	9 Months Ended
	May 31, 2019 USD ($)	Sep. 30, 2021 USD ($)	Apr. 30, 2020 USD ($)
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 400,000,000
Line of credit facility, average outstanding amount		$ 20,237,000
Line of credit facility, average remaining borrowing capacity		$ 307,753,000
CARES Act
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity			$ 50,000,000
Bank of America, N.A.
Debt Instrument [Line Items]
Debt instrument, covenant, fixed charge coverage ratio		1.0
Debt covenant, borrowing base below threshold, ratio required to be in compliance, period		30 days
Fixed charges coverage ratio covenant reference borrowing capacity, percent		10.00%
Fixed charge coverage ratio covenant reference borrowing capacity		$ 40,000,000
Line of credit facility, interest rate at period end		3.07%
Line of credit facility, unused capacity, commitment fee percentage		0.25%
Real Estate
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity, quarterly reduction period	15 years
Intellectual Property
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity, quarterly reduction period	3 years
United States
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 260,000,000
Germany
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	70,000,000
Canada
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	25,000,000
United Kingdom
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 45,000,000

Financing Arrangements - Japan ABL Facility (Details)	9 Months Ended
Financing Arrangements - Japan ABL Facility (Details)	Sep. 30, 2021 USD ($)	Sep. 30, 2021 JPY (¥)	May 31, 2019 USD ($)
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 400,000,000
Japan Credit Facility \| The Bank of Tokyo-Mitsubishi UFJ
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 35,948,000	¥ 4,000,000,000
Debt instrument, term	1 year
Japan Credit Facility \| The Bank of Tokyo-Mitsubishi UFJ \| Tokyo Interbank Offered Rate (TIBOR)
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.20%

Financing Arrangements - Japan Term Loan Facility (Details) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Aug. 31, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2021 JPY (¥)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2021 JPY (¥)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 JPY (¥)	Aug. 31, 2020 JPY (¥)
Line of Credit Facility [Line Items]
Interest expense, debt		$ 205		$ 247	$ 665		$ 624
Japan Term Loan Facility
Line of Credit Facility [Line Items]
Debt instrument, term	5 years
Debt instrument, face amount		14,379			14,379			¥ 1,600,000,000
Long-term debt, current maturities		3,595			3,595			¥ 400,000,000
Interest expense, debt		$ 32	¥ 3,544,000		103	¥ 11,156,000
Japan Term Loan Facility \| Secured Debt
Line of Credit Facility [Line Items]
Debt instrument, face amount	$ 17,974								¥ 2,000,000,000
Debt instrument, periodic payment, principal					$ 899	¥ 100,000,000
Japan Term Loan Facility \| Secured Debt \| Tokyo Interbank Offered Rate (TIBOR)
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate					0.80%	0.80%

Financing Arrangements - Term Loan B Facility (Details)	1 Months Ended	3 Months Ended		9 Months Ended
Financing Arrangements - Term Loan B Facility (Details)	Jan. 31, 2019 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)
Line of Credit Facility [Line Items]
Interest expense, debt		$ 205,000	$ 247,000	$ 665,000	$ 624,000
Term Loan B Facility
Line of Credit Facility [Line Items]
Interest expense, debt		$ 6,105,000	$ 5,986,000	18,029,000	$ 19,681,000
Term Loan B Facility \| Secured Debt
Line of Credit Facility [Line Items]
Debt issuance costs, gross	$ 9,600,000
Long-term debt, maximum additional loan commitments, amount	$ 225,000,000
Line of credit facility, covenant terms, first lien net leverage ratio for unlimited commitment	2.25
Debt instrument, periodic payment, principal				$ 1,200,000
Term Loan B Facility \| Secured Debt \| Maximum \| London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate				4.50%
Term Loan B Facility \| Secured Debt \| Minimum \| London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate				3.50%
Former Topgolf Stakeholders \| Term Loan B Facility \| Secured Debt
Line of Credit Facility [Line Items]
Debt instrument, face amount	$ 480,000,000

Financing Arrangements - Top Golf Credit Facilities (Details)	Mar. 08, 2021 USD ($)	Sep. 30, 2021 stepdown	May 31, 2019 USD ($)
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 400,000,000
Line of Credit \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 175,000,000
Topgolf Term Loan \| Secured Debt
Line of Credit Facility [Line Items]
Debt instrument, face amount	$ 350,000,000
Debt instrument, basis spread on variable rate	1.75%
Debt instrument, percentage of periodic payment	0.0025
Topgolf Term Loan \| Secured Debt \| Fed Funds Effective Rate Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.50%
Topgolf Term Loan \| Secured Debt \| London Interbank Offered Rate (LIBOR) Adjusted One-Month Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.00%
Topgolf Term Loan \| Secured Debt \| London Interbank Offered Rate (LIBOR) Adjusted Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.75%
Topgolf Term Loan \| Secured Debt \| Base Rate
Line of Credit Facility [Line Items]
Debt instrument, margin rate	5.25%
Topgolf Term Loan \| Secured Debt \| London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Debt instrument, margin rate	6.25%
JPM Revolving Credit Facility \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, covenant, total leverage ratio, maximum	5.50
Debt instrument, covenant, increased total leverage ratio, maximum	7.75
Debt instrument, covenant, unrestricted cash on hand and/or remaining borrowing capacity	$ 30,000,000
JPM Revolving Credit Facility \| Line of Credit \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.75%
Number of stepdowns subject to upon achievement \| stepdown		2
Line of credit facility, commitment fee percentage	0.50%
Line of credit facility, commitment fee step down rate	0.13%
JPM Revolving Credit Facility \| Line of Credit \| Revolving Credit Facility \| Fed Funds Effective Rate Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.50%
JPM Revolving Credit Facility \| Line of Credit \| Revolving Credit Facility \| London Interbank Offered Rate (LIBOR) Adjusted One-Month Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.00%
JPM Revolving Credit Facility \| Line of Credit \| Revolving Credit Facility \| London Interbank Offered Rate (LIBOR) Adjusted Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.75%
JPM Revolving Credit Facility \| Line of Credit \| Revolving Credit Facility \| Base Rate
Line of Credit Facility [Line Items]
Debt instrument, margin rate	3.00%
JPM Revolving Credit Facility \| Line of Credit \| Revolving Credit Facility \| London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Debt instrument, margin rate	4.00%
Number of stepdowns subject to upon achievement \| stepdown		2
Debt instrument, basis spread on step down rate	0.25%

Financing Arrangements - Convertible Senior Notes (Details)		1 Months Ended	9 Months Ended
	May 04, 2020	May 31, 2020 USD ($) day $ / shares	Sep. 30, 2021 USD ($) $ / shares	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Long-term debt			$ 1,066,605,000	$ 665,289,000
Convertible Notes
Debt Instrument [Line Items]
Debt instrument, convertible, remaining discount amortization period			4 years 7 months 6 days
Debt instrument, convertible, beneficial conversion feature			$ 76,508,000
Debt instrument, payment for capped call transactions		$ 31,775,000
Debt instrument, capped call transaction cap price (in dollars per share) \| $ / shares		$ 27.10
Share price (in dollars per share) \| $ / shares			$ 30.85
Convertible Notes \| Senior Notes
Debt Instrument [Line Items]
Debt instrument, face amount		$ 258,750,000
Interest Rate		2.75%	2.75%
Debt issuance costs, net			$ 8,527,000
Debt instrument, convertible, conversion price, percentage		130.00%
Debt instrument, convertible, threshold trading days \| day		20
Debt instrument, convertible, threshold consecutive trading days \| day		30
Debt instrument, convertible, consecutive trading day period		10 days
Debt instrument, convertible, percentage of closing price per share		98.00%
Debt instrument, convertible, conversion ratio	0.0567698
Debt instrument, convertible, conversion price (in dollars per share) \| $ / shares			$ 17.62
Debt instrument, redemption, consecutive trading day period prior to maturity \| day		40
Debt instrument, redemption price, percentage		130.00%
Debt instrument, redemption, threshold trading days \| day		20
Debt instrument, redemption, threshold consecutive trading days \| day		30
Convertible Senior Notes, Liability Component
Debt Instrument [Line Items]
Long-term debt			$ 191,534,000
Convertible Senior Notes, Liability Component \| Senior Notes
Debt Instrument [Line Items]
Debt issuance costs, net			6,005,000
Convertible Senior Notes, Equity Component
Debt Instrument [Line Items]
Debt instrument, unamortized discount			62,324,000
Convertible Senior Notes, Equity Component \| Senior Notes
Debt Instrument [Line Items]
Debt issuance costs, net			$ 2,522,000

Financing Arrangements - Equipment Notes (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Aug. 31, 2020 agreement
Debt Disclosure [Abstract]
Number of long-term financing agreements \| agreement					4
Interest expense, debt \| $	$ 205	$ 247	$ 665	$ 624

Financing Arrangements - Mortgage Loans (Details)	Mar. 08, 2021 loan venue
Debt Instrument [Line Items]
Number of venues constructed \| venue	3
Mortgages
Debt Instrument [Line Items]
Number of mortgage loans assumed \| loan	3

Financing Arrangements - Aggregate Amount of Maturities for Debt (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Debt Disclosure [Abstract]
Remainder of 2021	$ 5,254
2022	21,232
2023	18,575
2024	52,352
2025	14,155
Thereafter	1,051,568
Long-term debt, gross	$ 1,163,136

Earnings per Common Share - Summary of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings per common share—basic
Net income (loss)	$ (15,991)	$ 52,432	$ 348,214	$ (86,358)
Weighted-average common shares outstanding—basic (in shares)	185,963	94,171	163,141	94,207
Basic (loss) earnings per common share (in dollars per share)	$ (0.09)	$ 0.56	$ 2.13	$ (0.92)
Earnings per common share—diluted
Net income (loss)	$ (15,991)	$ 52,432	$ 348,214	$ (86,358)
Weighted-average common shares outstanding—basic (in shares)	185,963	94,171	163,141	94,207
Convertible notes weighted-average shares outstanding (in shares)	0	924	6,117	0
Options and restricted stock and performance share units (in shares)	0	1,517	1,936	0
Weighted-average common shares outstanding—diluted (in shares)	185,963	96,612	171,194	94,207
Dilutive earnings (loss) per common share (in dollars per share)	$ (0.09)	$ 0.54	$ 2.03	$ (0.92)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1448-109256

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=120380238&loc=d3e4984-109258

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Earnings per Common Share - Narrative (Details) - shares		3 Months Ended		9 Months Ended
	Mar. 08, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Weighted-average common shares outstanding—basic (in shares)		185,963,000	94,171,000	163,141,000	94,207,000
Weighted-average common shares outstanding—diluted (in shares)		185,963,000	96,612,000	171,194,000	94,207,000
Antidilutive securities excluded from computation of earnings per share (in shares)			0
Common Stock
Debt Instrument [Line Items]
Stock issued during period, shares, acquisitions (in shares)	89,776,450			89,776,000
Options and Restricted Stock
Debt Instrument [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)				1,195,000
Options and Restricted Stock \| Common Stock
Debt Instrument [Line Items]
Stock issued during period, shares, acquisitions (in shares)	187,568			188,000
Options, Restricted Stock Units, and Performance Share Units
Debt Instrument [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)		1,822,402			1,345,695
Topgolf International, Inc
Debt Instrument [Line Items]
Weighted-average common shares outstanding—basic (in shares)		89,964,018		67,884,937
Weighted-average common shares outstanding—diluted (in shares)		89,964,018		67,884,937
Convertible Notes \| Convertible Debt Securities
Debt Instrument [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)		6,139,949		502,517

Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Jun. 30, 2020	Sep. 30, 2021
Goodwill [Roll Forward]
Balance at beginning of period			$ 56,658,000
Acquisitions			1,968,911,000
Impairments	$ 0	$ (148,375,000)	0
Foreign currency translation			(394,000)
Balance at end of period	2,025,175,000		2,025,175,000
Topgolf
Goodwill [Roll Forward]
Balance at beginning of period			0
Acquisitions			1,405,556,000
Impairments			0
Foreign currency translation			0
Balance at end of period	1,405,556,000		1,405,556,000
Golf Equipment
Goodwill [Roll Forward]
Balance at beginning of period			27,025,000
Acquisitions			504,690,000
Impairments			0
Foreign currency translation			(394,000)
Balance at end of period	531,321,000		531,321,000
Apparel, Gear & Other
Goodwill [Roll Forward]
Balance at beginning of period			29,633,000
Acquisitions			58,665,000
Impairments			0
Foreign currency translation			0
Balance at end of period	$ 88,298,000		$ 88,298,000

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended			9 Months Ended
	Mar. 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Mar. 08, 2021	Dec. 31, 2020
Goodwill [Line Items]
Goodwill		$ 2,025,175,000			$ 2,025,175,000			$ 56,658,000
Goodwill, period increase (decrease)					1,968,517,000
Goodwill, acquired during period					1,968,911,000
Goodwill, impaired, accumulated impairment loss		148,375,000			148,375,000			148,375,000
Goodwill, impairment loss		0		$ 148,375,000	0
Amortization of intangible assets		3,358,000	$ 1,321,000		9,395,000	$ 3,714,000
Topgolf
Goodwill [Line Items]
Goodwill		1,405,556,000			1,405,556,000			0
Goodwill, acquired during period					1,405,556,000
Goodwill, impairment loss					0
Golf Equipment
Goodwill [Line Items]
Goodwill		531,321,000			531,321,000			27,025,000
Goodwill, acquired during period					504,690,000
Goodwill, impairment loss					0
Apparel, Gear & Other
Goodwill [Line Items]
Goodwill		$ 88,298,000			88,298,000			$ 29,633,000
Goodwill, acquired during period					58,665,000
Goodwill, impairment loss					0
Topgolf International, Inc
Goodwill [Line Items]
Goodwill							$ 1,968,911,000
Goodwill, acquired during period	$ 1,968,911,000
Indefinite-lived Intangible assets acquired					1,001,600,000
Finite-lived Intangible assets acquired					$ 74,529,000

Goodwill and Intangible Assets - Intangible Assets by Major Asset Class (Details) - USD ($) $ in Thousands	6 Months Ended	9 Months Ended
	Jun. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Indefinite-lived Intangible Assets [Line Items]
Gross		$ 1,611,999	$ 535,693
Finite-Lived Intangible Assets, Net [Abstract]
Accumulated Amortization		60,749	51,354
Net Book Value		100,181
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross		1,611,999	535,693
Accumulated Amortization		60,749	51,354
Translation Adjustment		14,203
Net Book Value		1,537,047	484,339
Trade name, trademark, trade dress and other
Indefinite-lived Intangible Assets [Line Items]
Gross		1,441,003
Translation Adjustment		11,893
Net Book Value		1,429,110	446,803
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross		1,441,003
Liquor licenses
Indefinite-lived Intangible Assets [Line Items]
Gross		7,756
Translation Adjustment		0
Net Book Value		7,756
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross		7,756
Patents
Finite-Lived Intangible Assets, Net [Abstract]
Gross		32,041	31,581
Accumulated Amortization		31,645	31,581
Translation Adjustment		0
Net Book Value		396	0
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization		$ 31,645	31,581
Patents \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life	2 years	2 years
Patents \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life	16 years	16 years
Customer and distributor relationships and other
Finite-Lived Intangible Assets, Net [Abstract]
Gross		$ 61,378	57,309
Accumulated Amortization		25,195	19,773
Translation Adjustment		1,757
Net Book Value		34,426	37,536
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization		$ 25,195	$ 19,773
Customer and distributor relationships and other \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life	1 year	1 year
Customer and distributor relationships and other \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life	10 years	10 years
Developed technology
Finite-Lived Intangible Assets [Line Items]
Useful life		10 years
Finite-Lived Intangible Assets, Net [Abstract]
Gross		$ 69,821
Accumulated Amortization		3,909
Translation Adjustment		553
Net Book Value		65,359
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization		$ 3,909

Goodwill and Intangible Assets - Amortization Expense Related to Intangible Assets (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Amortization expense related to intangible assets:
Remainder of 2021	$ 7,233
2022	13,177
2023	11,616
2024	11,471
2025	11,395
Thereafter	45,289
Net Book Value	$ 100,181

Investments (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
Investments (Details) - USD ($) $ in Thousands	Mar. 08, 2021	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Oct. 27, 2020
Schedule of Equity Method Investments [Line Items]
Gain on Topgolf investment				$ 252,531	$ 0
Investment in golf-related venture		$ 9,250		9,250		$ 111,442
Fair value of investment		$ 27,740		27,740
Proceeds from sale of other investments				$ 18,591	$ 0
Full Swing Golf Holdings, Inc. \| Callaway Golf Co.
Schedule of Equity Method Investments [Line Items]
Noncontrolling interest, ownership by parent		7.30%		7.30%
Topgolf International, Inc
Schedule of Equity Method Investments [Line Items]
Investment in golf-related venture						$ 111,442
Full Swing Golf Holdings, Inc.
Schedule of Equity Method Investments [Line Items]
Proceeds from sale of other investments		$ 18,591
Full Swing Golf Holdings, Inc. \| Topgolf International, Inc
Schedule of Equity Method Investments [Line Items]
Noncontrolling interest, ownership percentage by noncontrolling owners		17.70%		17.70%
Topgolf International, Inc
Schedule of Equity Method Investments [Line Items]
Business combination, step acquisition, equity interest in acquiree, including subsequent acquisition percentage	100.00%
Gain on Topgolf investment	$ 252,531		$ 252,531
Topgolf International, Inc \| Topgolf International, Inc
Schedule of Equity Method Investments [Line Items]
Business combination, step acquisition, equity interest in acquiree, percentage							14.30%

Product Warranty - Narrative (Details)	9 Months Ended
Product Warranty - Narrative (Details)	Sep. 30, 2021
Guarantees [Abstract]
Warranty policy term	2 years

Product Warranty - Reconciliation of Reserve for Warranty Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Beginning balance	$ 11,533	$ 9,779	$ 9,364	$ 9,636
Provision	1,938	2,137	7,871	5,507
Claims paid/costs incurred	(1,950)	(2,276)	(5,714)	(5,503)
Ending balance	$ 11,521	$ 9,640	$ 11,521	$ 9,640

Selected Financial Statement Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Inventories:
Finished goods	$ 295,962		$ 295,962		$ 281,602
Work in process	858		858		1,010
Raw materials	83,994		83,994		69,932
Food and beverage	4,497		4,497		0
Inventories	385,311		385,311		352,544
Property, plant and equipment, net:
Land	90,200		90,200		7,308
Buildings and leasehold improvements	841,664		841,664		100,653
Machinery and equipment	200,416		200,416		137,026
Furniture, computer hardware and equipment	193,638		193,638		100,558
Internal-use software	80,697		80,697		42,082
Production molds	7,220		7,220		6,809
Construction-in-process	215,090		215,090		13,299
Property, plant and equipment, gross	1,628,925		1,628,925		407,735
Accumulated depreciation	(298,599)		(298,599)		(261,240)
Property, plant and equipment, net	1,330,326		1,330,326		146,495
Accounts payable and accrued expenses
Accounts payable	126,643		126,643		66,282
Accrued expenses	230,178		230,178		136,277
Accrued inventory	96,817		96,817		73,650
Accounts payable and accrued expenses	453,638		453,638		276,209
Accrued employee compensation and benefits:
Accrued payroll and taxes	89,103		89,103		17,009
Accrued vacation and sick pay	21,753		21,753		12,887
Accrued commissions	5,090		5,090		1,041
Accrued employee compensation and benefits	115,946		115,946		$ 30,937
Depreciation	$ 40,920	$ 8,990	$ 98,425	$ 24,954

Income Taxes (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jan. 31, 2019	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Mar. 08, 2021	Dec. 31, 2020
Income Tax Contingency [Line Items]
Deferred tax assets, other		$ 11,384
Incomplete accounting, change in tax rate, deferred tax asset, provisional income tax expense (benefit)		521,201
Goodwill and trade name impairment		174,269	$ 0	$ 0	$ 0	$ 174,269
Income tax provision			$ 66,229	5,360	$ 98,119	6,580
Effective tax rate			131.80%		22.00%
Liability for income taxes associated with uncertain tax positions			$ 27,265		$ 27,265
Net amount of unrecognized tax benefit related to uncertain tax positions that would impact, if recognized, effective income tax rate			5,463		5,463
Unrecognized tax benefit liabilities decrease			463		463
Unrecognized tax benefits, decrease resulting from current period tax positions			237		1,037
Provision expense (benefit) for income taxes related to interest and penalties			(46)	$ 110	(236)	$ 163
Income tax accrued for payment of interest and penalties			996		$ 996			$ 1,232
Tax Credit and Operating Loss Carryforward
Income Tax Contingency [Line Items]
Deferred tax assets, valuation allowance							$ 38,927
Topgolf International, Inc
Income Tax Contingency [Line Items]
Business combination, consideration transferred excluding equity interest issued and issuable	$ 3,014,174
Deferred tax liabilities, intangible assets	293,000
Deferred tax assets, other	$ 154,000
Cash acquired							171,294
Deferred tax assets, valuation allowance							$ 80,566
Valuation allowance, increase (decrease),			$ 32,743
Jack Wolfskin
Income Tax Contingency [Line Items]
Deferred tax liabilities, intangible assets		88,392
Cash acquired		58,096
Jack Wolfskin \| Finite-Lived Intangible Assets
Income Tax Contingency [Line Items]
Deferred tax liability, period increase (decrease)		$ 7,900

Commitments and Contingencies - Narrative (Details)	9 Months Ended
Commitments and Contingencies - Narrative (Details)	Sep. 30, 2021
Minimum
Unrecorded Unconditional Purchase Obligation [Line Items]
Unconditional purchase obligations, term	1 year
Maximum
Unrecorded Unconditional Purchase Obligation [Line Items]
Unconditional purchase obligations, term	4 years

Commitments and Contingencies - Schedule of Future Purchase Commitments (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2021	$ 31,167
2022	32,429
2023	20,759
2024	664
2025	124
Thereafter	0
Unconditional purchase obligations	$ 85,143

Share-Based Employee Compensation - Narrative (Details) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Mar. 08, 2021 USD ($) shares	Sep. 30, 2021 USD ($) $ / shares shares	Sep. 30, 2020 USD ($) shares	Sep. 30, 2021 USD ($) plan $ / shares shares	Sep. 30, 2020 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shareholder approved stock plans \| plan				3
Cost (reversal) of employee share-based compensation included in income, before income tax		$ 11,475	$ 3,272	$ 27,123	$ 8,066
Topgolf International, Inc
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Business combination, consideration transferred, share-based compensation	$ 33,051
Replacement Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options converted in connection with acquisition (in shares) \| shares	3,168,000
Stock options converted in connection with acquisition	$ 5,343
Restricted stock awards converted in connection with acquisition (in shares) \| shares	188,000
Restricted stock awards converted in connection with acquisition	$ 4,794
Cost (reversal) of employee share-based compensation included in income, before income tax		1,525		3,503
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount		2,857		$ 2,857
Number of years compensation expense to be recognized over				1 year 3 months 18 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount		$ 2,831		$ 2,831
Number of years compensation expense to be recognized over				1 year 4 months 24 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of years compensation expense to be recognized over				2 years 1 month 6 days
Number of stock units granted (in shares) \| shares				1,149,000
Stock units, weighted average grant-date fair value (in dollars per share) \| $ / shares		$ 29.67		$ 29.62	$ 17.82
Compensation expense related to restricted stocks		$ 3,840	$ 1,907	$ 9,790	$ 4,884
Total unrecognized compensation expense related to non-vested shares granted		$ 29,298		$ 29,298
Restricted Stock Units (RSUs) \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award requisite service period				1 year
Restricted Stock Units (RSUs) \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award requisite service period				5 years
Restricted Stock Units, Inducement Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock units granted (in shares) \| shares		40,000	0	612,000	406,000
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cost (reversal) of employee share-based compensation included in income, before income tax		$ 6,100	$ 1,365	$ 13,820	$ 3,182
Number of years compensation expense to be recognized over					2 years 2 months 12 days
Number of stock units granted (in shares) \| shares		0	0	1,440,000
Stock units, weighted average grant-date fair value (in dollars per share) \| $ / shares				$ 29.42	$ 21.44
Total unrecognized compensation expense related to non-vested shares granted		$ 50,257		$ 50,257
Performance Shares \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award requisite service period				1 year
Award vesting period				3 years
Performance Shares \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award requisite service period				5 years
Award vesting period				5 years
Performance Shares, Inducement Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock units granted (in shares) \| shares				1,063,000	250,000

Share-Based Employee Compensation - Schedule of Weighted Average Fair Value Assumptions (Details) $ in Millions	Mar. 08, 2021 USD ($)
Range
Expected term	3 years 8 months 12 days
Volatility, minimum	43.00%
Volatility, maximum	85.40%
Risk free interest rate, minimum	0.10%
Risk free interest rate, maximum	1.30%
Dividend yield	0.00%
Weighted Averages
Expected term	3 years 8 months 12 days
Volatility	55.10%
Risk free interest rate	0.60%
Dividend yield	$ 0
Minimum
Range
Expected term	3 months 18 days
Weighted Averages
Expected term	3 months 18 days
Maximum
Range
Expected term	7 years 1 month 6 days
Weighted Averages
Expected term	7 years 1 month 6 days

Share-Based Employee Compensation - Amounts Recognized for Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total cost of share-based compensation included in income, before income tax	$ 11,475	$ 3,272	$ 27,123	$ 8,066
Income tax benefit	2,754	785	6,510	1,936
Total cost of employee share-based compensation, after tax	8,721	2,487	20,613	6,130
Cost of products
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total cost of share-based compensation included in income, before income tax	345	158	892	553
Selling, general and administrative expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total cost of share-based compensation included in income, before income tax	10,867	2,930	25,548	7,044
Research and development expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total cost of share-based compensation included in income, before income tax	$ 263	$ 184	$ 683	$ 469

Fair Value of Financial Instruments - Valuation of Foreign Currency Exchange Contracts by Pricing Levels (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts, net	$ (7,839)	$ (19,385)
Foreign Exchange Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts—asset position	4,855	90
Foreign currency forward contracts—liability position	(470)	(1,553)
Interest rate hedge contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts—liability position	(12,224)	(17,922)
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts, net	0	0
Level 1 \| Foreign Exchange Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts—asset position	0	0
Foreign currency forward contracts—liability position	0	0
Level 1 \| Interest rate hedge contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts—liability position	0	0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts, net	(7,839)	(19,385)
Level 2 \| Foreign Exchange Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts—asset position	4,855	90
Foreign currency forward contracts—liability position	(470)	(1,553)
Level 2 \| Interest rate hedge contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts—liability position	(12,224)	(17,922)
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts, net	0	0
Level 3 \| Foreign Exchange Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts—asset position	0	0
Foreign currency forward contracts—liability position	0	0
Level 3 \| Interest rate hedge contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward contracts—liability position	$ 0	$ 0

Fair Value of Financial Instruments - Fair Value Relating to Financial Assets and Liabilities (Details)	Sep. 30, 2021 USD ($)	Sep. 30, 2021 JPY (¥)	Mar. 08, 2021 USD ($)	Dec. 31, 2020 USD ($)	Aug. 31, 2020 USD ($)	Aug. 31, 2020 JPY (¥)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 1,066,605,000			$ 665,289,000
Japan Term Loan Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, face amount	$ 14,379,000	¥ 1,600,000,000
Secured Debt \| Japan Term Loan Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, face amount					$ 17,974,000	¥ 2,000,000,000
Secured Debt \| Topgolf Term Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, face amount			$ 350,000,000
Debt instrument, interest rate, stated percentage	0.07%	0.07%
Revolving Credit Facility \| Line of Credit \| Term Loan B Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, interest rate, stated percentage	4.59%	4.59%
Revolving Credit Facility \| Line of Credit \| Japan Term Loan Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, interest rate, stated percentage	0.0086%	0.0086%
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible debt	$ 258,750,000			258,750,000
Carrying Value \| Secured Debt \| Term Loan B Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	438,000,000			441,600,000
Carrying Value \| Secured Debt \| Japan Term Loan Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	14,379,000			18,390,000
Carrying Value \| Secured Debt \| Equipment Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	25,546,000			31,822,000
Carrying Value \| Secured Debt \| Topgolf Term Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	341,250,000			0
Carrying Value \| Loans Payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	46,522,000			0
Carrying Value \| ABL Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Credit facilities	30,108,000			22,130,000
Carrying Value \| Revolving Credit Facility \| Line of Credit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Credit facilities	35,000,000			0
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible debt	452,937,000,000			414,191,000
Fair Value \| Secured Debt \| Term Loan B Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	439,883,000			443,243,000
Fair Value \| Secured Debt \| Japan Term Loan Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	13,381,000			16,083,000
Fair Value \| Secured Debt \| Equipment Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	24,777,000			29,385,000
Fair Value \| Secured Debt \| Topgolf Term Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	339,782,000			0
Fair Value \| Loans Payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	52,546,000			0
Fair Value \| ABL Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Credit facilities	30,108,000			22,130,000
Fair Value \| Revolving Credit Facility \| Line of Credit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Credit facilities	$ 28,556,000			$ 0

Fair Value of Financial Instruments - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Jun. 30, 2020	Sep. 30, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill, impairment loss	$ 0	$ 148,375,000	$ 0
Trade name, trademark, trade dress and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill, impairment loss		$ 25,894,000

Derivatives and Hedging - Summary of Fair Value of Derivative Instruments by Contract Type and Location of Asset and/or Liability on Consolidated Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset including not subject to matter netting arrangement	$ 4,855	$ 90
Derivative liability, fair value, gross liability including not subject to master netting arrangement	12,694	19,475
Not Designated as Hedging Instrument \| Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset including not subject to matter netting arrangement	3,746	53
Not Designated as Hedging Instrument \| Foreign currency forward contracts \| Accounts payable and accrued expenses
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability including not subject to master netting arrangement	463	1,515
Cash Flow Hedging \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability including not subject to master netting arrangement	12,231	17,960
Cash Flow Hedging \| Designated as Hedging Instrument \| Foreign currency forward contracts \| Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset including not subject to matter netting arrangement	1,109	37
Cash Flow Hedging \| Designated as Hedging Instrument \| Foreign currency forward contracts \| Accounts payable and accrued expenses
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability including not subject to master netting arrangement	7	38
Cash Flow Hedging \| Designated as Hedging Instrument \| Interest rate hedge contracts \| Accounts payable and accrued expenses
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability including not subject to master netting arrangement	4,752	4,780
Cash Flow Hedging \| Designated as Hedging Instrument \| Interest rate hedge contracts \| Other long-term liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability including not subject to master netting arrangement	$ 7,472	$ 13,142

Derivatives and Hedging - Forward Currency Forward Contracts (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Derivative [Line Items]
Minimum length of time, foreign currency cash flow hedge			12 months
Maximum maturity for foreign currency cash flow hedge			15 months
Net gain in accumulated other comprehensive loss related to foreign currency forward contracts	$ (15,000)		$ 4,278,000
Forward points amortized on derivatives	17,000		61,000
Designated as Hedging Instrument \| Cash Flow Hedging
Derivative [Line Items]
Net gain in accumulated other comprehensive loss related to foreign currency forward contracts	(15,000)	$ (1,170,000)	4,278,000	$ 2,724,000
Gains (losses) reclassified from AOCI into earnings	(555,000)	(577,000)	(2,980,000)	17,359,000
Foreign Exchange Contract \| Designated as Hedging Instrument
Derivative [Line Items]
Derivative instrument, notional amount	14,632,000		14,632,000		$ 756,000
Foreign currency forward contracts
Derivative [Line Items]
Forward points amortized on derivatives	0		0
Foreign currency forward contracts \| Cost of Goods Sold
Derivative [Line Items]
Gains (losses) reclassified from AOCI into earnings	645,000	486,000	567,000	894,000
Foreign currency forward contracts \| Designated as Hedging Instrument
Derivative [Line Items]
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months, net			1,299,000
Foreign currency forward contracts \| Designated as Hedging Instrument \| Cash Flow Hedging
Derivative [Line Items]
Net gain in accumulated other comprehensive loss related to foreign currency forward contracts	131,000	(1,070,000)	2,196,000	904,000
Gains (losses) reclassified from AOCI into earnings	$ 662,000	$ 621,000	$ 628,000	$ 1,493,000

Derivatives and Hedging - Interest Rate Hedge Contract and Cross-Currency Debt Swap (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Derivative [Line Items]
Change in derivative instruments	$ (15,000)		$ 4,278,000
Designated as Hedging Instrument \| Cash Flow Hedging
Derivative [Line Items]
Gains (losses) reclassified from AOCI into earnings	(555,000)	$ (577,000)	(2,980,000)	$ 17,359,000
Change in derivative instruments	(15,000)	(1,170,000)	4,278,000	2,724,000
Currency Swap \| Designated as Hedging Instrument \| Cash Flow Hedging
Derivative [Line Items]
Gains (losses) reclassified from AOCI into earnings	0	0	0	18,510,000
Change in derivative instruments	0	0	0	15,081,000
Currency Swap \| Other (expense) income, net
Derivative [Line Items]
Gains (losses) reclassified from AOCI into earnings		0		11,046,000
Other comprehensive income (loss), foreign currency transaction and translation gain (loss) arising during period, net of tax		0		5,735,000
Currency Swap \| Interest Income
Derivative [Line Items]
Gains (losses) reclassified from AOCI into earnings	0	0	0	1,730,000
Currency and Interest Rate Swap Agreements \| Designated as Hedging Instrument
Derivative [Line Items]
Derivative instrument, notional amount	194,847,000		194,847,000		$ 196,350,000
Interest rate hedge contracts \| Designated as Hedging Instrument \| Cash Flow Hedging
Derivative [Line Items]
Gains (losses) reclassified from AOCI into earnings	(1,217,000)	(1,198,000)	(3,608,000)	(2,644,000)
Change in derivative instruments	(146,000)	$ (100,000)	2,082,000	$ (13,261,000)
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months, net	$ 4,752,000		$ 4,752,000

Derivatives and Hedging - Location of Gains in Consolidated Condensed Statements of Operations that were Recognized and Derivative Contract Type (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Change in derivative instruments	$ (15,000)		$ 4,278,000
Cash Flow Hedging \| Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Change in derivative instruments	(15,000)	$ (1,170,000)	4,278,000	$ 2,724,000
Gains (losses) reclassified from AOCI into earnings	(555,000)	(577,000)	(2,980,000)	17,359,000
Foreign currency forward contracts \| Cash Flow Hedging \| Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Change in derivative instruments	131,000	(1,070,000)	2,196,000	904,000
Gains (losses) reclassified from AOCI into earnings	662,000	621,000	628,000	1,493,000
Currency Swap \| Cash Flow Hedging \| Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Change in derivative instruments	0	0	0	15,081,000
Gains (losses) reclassified from AOCI into earnings	0	0	0	18,510,000
Interest rate hedge contracts \| Cash Flow Hedging \| Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Change in derivative instruments	(146,000)	(100,000)	2,082,000	(13,261,000)
Gains (losses) reclassified from AOCI into earnings	(1,217,000)	(1,198,000)	(3,608,000)	(2,644,000)
Other (expense) income, net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments	$ 2,792,000	(4,639,000)	$ 11,822,000	622,000
Other (expense) income, net \| Currency Swap
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) reclassified from AOCI into earnings		$ 0		$ 11,046,000

Derivatives and Hedging - Foreign Currency Forward Contracts Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Derivative [Line Items]
Maximum maturity for foreign currency derivatives			12 months
Foreign currency gains (losses)	$ (1,174)	$ 10,098	$ (4,241)	$ 7,857
Foreign Exchange Contract \| Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative instrument, notional amount	$ 116,252		$ 116,252		$ 81,627

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period			$ 675,644
Change in derivative instruments	$ (15)		4,278
Income tax provision (benefit) on derivative instruments	(1,340)	$ (66)	(2,928)	$ 3,387
Foreign currency translation adjustments	(12,929)	9,128	(23,206)	2,347
Balance at end of period	3,721,926		3,721,926
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(11,694)		(6,546)
Foreign currency translation adjustments	(12,929)	$ 9,128	(23,206)	$ 2,347
Balance at end of period	(25,422)		(25,422)
Derivative Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(8,888)		(14,017)
Change in derivative instruments	(15)		4,278
Income tax provision (benefit) on derivative instruments	(1,340)		(2,928)
Foreign currency translation adjustments	0		0
Balance at end of period	(9,687)		(9,687)
Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(2,806)		7,471
Change in derivative instruments	0		0
Income tax provision (benefit) on derivative instruments	0		0
Foreign currency translation adjustments	(12,929)		(23,206)
Balance at end of period	(15,735)		(15,735)
Cost of Goods Sold
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Other comprehensive income (loss), cash flow hedge, gain (loss), reclassification, before tax	(661)		(628)
Cost of Goods Sold \| Derivative Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Other comprehensive income (loss), cash flow hedge, gain (loss), reclassification, before tax	(661)		(628)
Cost of Goods Sold \| Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Other comprehensive income (loss), cash flow hedge, gain (loss), reclassification, before tax	0		0
Interest Expense
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Other comprehensive income (loss), cash flow hedge, gain (loss), reclassification, before tax	1,217		3,608
Interest Expense \| Derivative Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Other comprehensive income (loss), cash flow hedge, gain (loss), reclassification, before tax	1,217		3,608
Interest Expense \| Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Other comprehensive income (loss), cash flow hedge, gain (loss), reclassification, before tax	$ 0		$ 0

Segment Information - Narrative (Details)	9 Months Ended
Segment Information - Narrative (Details)	Sep. 30, 2021 segment
Segment Reporting [Abstract]
Number of operating segments	3

Segment Information - Information Utilized by Management to Evaluate its Operating Segments (Details) - USD ($)		1 Months Ended	3 Months Ended				9 Months Ended
	Mar. 08, 2021	Jan. 31, 2019	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Net sales			$ 856,461,000		$ 475,559,000		$ 2,421,723,000	$ 1,214,831,000
Additions to long-lived assets			101,458,000		5,124,000		268,539,000	38,130,000
Business combination, acquisition related costs							(16,199,000)	0
Amortization of intangible assets			3,358,000		1,321,000		9,395,000	3,714,000
Gain on Topgolf investment							252,531,000	0
Other nonrecurring expense					5,088,000			12,526,000
Goodwill and trade name impairment		$ 174,269,000	0		0		0	174,269,000
Topgolf International, Inc
Segment Reporting Information [Line Items]
Business combination, acquisition related costs			0				16,199,000	1,544,000
Gain on Topgolf investment	$ 252,531,000			$ 252,531,000
OGIO, Travis Matthew, And Jack Wolfskin
Segment Reporting Information [Line Items]
Amortization of intangible assets					1,235,000			3,592,000
Operating segments
Segment Reporting Information [Line Items]
Income before income taxes			104,377,000		82,693,000		351,703,000	154,984,000
Corporate, non-segment
Segment Reporting Information [Line Items]
Income before income taxes			(54,139,000)		(24,901,000)		94,630,000	(234,762,000)
Goodwill and trade name impairment					174,269,000			174,269,000
Discontinuance, cash flow hedge, gain (loss)						$ 11,046,000
Corporate, non-segment \| Topgolf International, Inc
Segment Reporting Information [Line Items]
Business combination, acquisition related costs			614,000				19,345,000
Amortization of intangible assets			6,654,000				17,620,000
Business combination, integration related costs			510,000				1,990,000
Gain on Topgolf investment							252,531,000
Topgolf
Segment Reporting Information [Line Items]
Net sales			333,783,000				751,873,000
Topgolf \| Operating segments
Segment Reporting Information [Line Items]
Net sales			333,783,000		0		751,873,000	0
Income before income taxes			23,928,000		0		52,086,000	0
Additions to long-lived assets			85,446,000		0		225,583,000	0
Golf Equipment
Segment Reporting Information [Line Items]
Net sales			289,615,000		267,277,000		1,067,756,000	768,881,000
Golf Equipment \| Operating segments
Segment Reporting Information [Line Items]
Net sales			289,615,000		267,277,000		1,067,756,000	768,881,000
Income before income taxes			45,815,000		56,784,000		228,825,000	144,585,000
Additions to long-lived assets			8,976,000		1,616,000		24,760,000	21,356,000
Apparel, Gear & Other
Segment Reporting Information [Line Items]
Net sales			233,063,000		208,282,000		602,094,000	445,950,000
Apparel, Gear & Other \| Operating segments
Segment Reporting Information [Line Items]
Net sales			233,063,000		208,282,000		602,094,000	445,950,000
Income before income taxes			34,634,000		25,909,000		70,792,000	10,399,000
Additions to long-lived assets			$ 7,036,000		$ 3,508,000		$ 18,196,000	$ 16,774,000

Subsequent Events (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
Subsequent Events (Details) - USD ($) $ in Thousands	Nov. 09, 2021	Sep. 30, 2021	Sep. 30, 2020
Subsequent Event [Line Items]
Investments in golf related ventures		$ 0	$ 19,999
Subsequent Event \| Five Iron Golf
Subsequent Event [Line Items]
Investments in golf related ventures	$ 30,000