Callaway Golf CoCALY
Callaway Golf Co Segments Disclosure
Segment Information
Our operating segments are based on how the Chief Executive Officer as the designated Chief Operating Decision Maker (“CODM”) makes decisions about assessing performance and allocating resources. The CODM primarily evaluates segment performance using segment operating income (loss), which is calculated by taking total segment revenues less segment operating expenses. Segment operating expenses include operating expenses directly attributable to the segment as well as certain shared corporate administration services and other costs which are allocated to the reportable segments. Segment operating expenses exclude certain non-recurring items and other costs, such as interest expense, interest income and taxes. Our CODM evaluates the profitability of each reportable segment based on segment operating income (loss) because it provides insight to operational leverage and other key operational metrics for each segment. Segment operating income (loss) is also used in the annual budget and forecasting process, and budget-to-actual and forecast-to-actual variances are considered when determining the appropriate allocation of company resources to each of our segments. The CODM does not evaluate a measure of assets when assessing segment performance.
We have two operating and reportable segments:
•Golf Equipment, which is comprised of product sales and expenses that encompass golf club and golf ball products, including Callaway Golf-branded woods, hybrids, irons, wedges, Odyssey putters, packaged sets, Callaway Golf-branded golf balls and sales of pre-owned golf clubs; and
•Apparel, Gear and Other, which is comprised of product sales and expenses for the TravisMathew golf and lifestyle apparel and accessories business, the Callaway soft goods business and the OGIO business, which consists of golf apparel and accessories (including golf bags), and storage gear for sport and personal use. This segment also includes royalties from licensing of our trademarks and service marks for various soft goods products.
Operating segment and business results for Topgolf and Jack Wolfskin through the date of the sale are included within discontinued operations. See Note 4 for further information.
There were no significant intersegment transactions during the years ended December 31, 2025, 2024, or 2023.
The following table contains information utilized by the CODM to evaluate our operating segments for the periods presented (in millions).
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Golf Equipment: | |||||||||||||||||
| Net sales | $ | 1,375.1 | $ | 1,382.7 | $ | 1,388.0 | |||||||||||
| Less: Cost of sales | 828.3 | 833.9 | 828.6 | ||||||||||||||
| Gross profit | 546.8 | 548.8 | 559.4 | ||||||||||||||
| Less: Selling, general and administrative expense | 323.6 | 313.9 | 316.6 | ||||||||||||||
| Less: Research and development expense | 53.1 | 51.2 | 49.4 | ||||||||||||||
| Income before income taxes | $ | 170.1 | $ | 183.7 | $ | 193.4 | |||||||||||
| Apparel, Gear and Other: | |||||||||||||||||
| Net sales | $ | 685.0 | $ | 695.0 | $ | 744.7 | |||||||||||
| Less: Cost of sales | 361.8 | 353.9 | 375.8 | ||||||||||||||
| Gross profit | 323.2 | 341.1 | 368.9 | ||||||||||||||
| Less: Selling, general and administrative expense | 223.2 | 228.8 | 221.8 | ||||||||||||||
| Less: Research and development expense | 12.2 | 12.8 | 12.3 | ||||||||||||||
| Income before income taxes | $ | 87.8 | $ | 99.5 | $ | 134.8 | |||||||||||
| Segment income from continuing operations | 257.9 | 283.2 | 328.2 | ||||||||||||||
| Reconciling items: | |||||||||||||||||
Non-recurring expenses (1) | (6.0) | (8.4) | (14.4) | ||||||||||||||
Corporate costs and expenses (2) | (123.8) | (121.9) | (119.7) | ||||||||||||||
| Total Reconciling items: | (129.8) | (130.3) | (134.1) | ||||||||||||||
| Total operating income | 128.1 | 152.9 | 194.1 | ||||||||||||||
| Interest expense, net | (60.6) | (63.0) | (70.7) | ||||||||||||||
| Other income, net | 20.1 | 21.6 | 6.1 | ||||||||||||||
| Total income from continuing operations before income taxes | $ | 87.6 | $ | 111.5 | $ | 129.5 | |||||||||||
(1) Includes non-cash amortization of acquired intangible assets and non-recurring expenses primarily consisting of restructuring and reorganization charges, other non-recurring losses and costs associated debt modifications, the integration of new IT systems stemming from acquisitions, and non-recurring costs related to a cybersecurity incident. | |||||||||||||||||
(2) Corporate costs and expenses include corporate general and administrative expenses not utilized by management in determining segment profitability. Corporate costs and expenses also includes adjustments for discontinued operations related to indirect costs that were previously allocated to the segment. | |||||||||||||||||
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Depreciation and amortization: | |||||||||||||||||
| Golf Equipment | $ | 26.5 | $ | 25.4 | $ | 25.9 | |||||||||||
| Apparel, Gear and Other | 19.9 | 19.1 | 19.8 | ||||||||||||||
| Total depreciation and amortization | $ | 46.4 | $ | 44.5 | $ | 45.7 | |||||||||||
We market our products in the United States and internationally, with our principal international markets being Asia and Europe. The tables below contain information about the geographical areas in which we operate. Net sales are attributed to the location to which the product was shipped. Long-lived assets are based on location of domicile.
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Net Sales: | |||||||||||||||||
| United States | $ | 1,363.3 | $ | 1,381.1 | $ | 1,395.7 | |||||||||||
| Europe | 203.8 | 182.1 | 173.4 | ||||||||||||||
| Asia | 363.1 | 379.1 | 436.6 | ||||||||||||||
| Rest of World | 129.9 | 135.4 | 127.0 | ||||||||||||||
| Total Net Sales | $ | 2,060.1 | $ | 2,077.7 | $ | 2,132.7 | |||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||
| Long-Lived Assets | |||||||||||
| United States | $ | 136.4 | $ | 156.7 | |||||||
| Europe | 4.2 | 3.0 | |||||||||
| Asia | 12.9 | 11.0 | |||||||||
| Rest of World | 6.0 | 5.2 | |||||||||
| Total Long-Lived Assets | $ | 159.5 | $ | 175.9 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Mar 4, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.