Discontinued operations is comprised of our former Topgolf and Jack Wolfskin businesses. Results of operations, financial position and cash flows for these businesses are reported as discontinued operations for all periods presented and the notes to the financial statements have been adjusted on a retrospective basis.

On November 17, 2025, we entered into a definitive agreement to sell a 60% stake in the Topgolf and Toptracer businesses (“Topgolf”) to private equity funds managed by Leonard Green & Partners, L.P. The sale was completed effective January 1, 2026 whereby the purchaser acquired 60% of the indirect equity interests of Topgolf (the “Sale”) based upon an equity value of approximately $1,100.0 million. In connection with the Sale and related financing transactions, we received proceeds of approximately $800 million, net of working capital adjustments and transaction expenses, which will be subject to further customary purchase price adjustments. In the fourth quarter of 2025, we concluded the assets and liabilities of Topgolf met the criteria for classification as held for sale and determined the ultimate disposal represents a strategic shift that will have a major effect on our operations and financial results. Accordingly, the assets and liabilities of Topgolf are presented separately on the consolidated balance sheets for all periods presented, and the results of Topgolf are presented as discontinued operations in the accompanying consolidated statements of operations for all periods presented and as such have been excluded from continuing operations and segment results.

We have continuing involvement with Topgolf as we have retained a 40% ownership interest in the business, which will be accounted for under the equity method of accounting. We also maintain involvement primarily through ongoing sales of products, a preferred marketing agreement, a warehousing agreement, and a transition services agreement through which certain services will be provided for a period of time of up to eighteen months following the separation.

Certain revenues that were previously eliminated in consolidation as intra-entity transactions prior to the sale of Topgolf are required to be reflected in continuing operations. For the years ended December 31, 2025, 2024 and 2023, net sales and cost of sales of $3.0 million, $2.9 million and $2.4 million, respectively, are now recognized in continuing operations that relate to transactions with Topgolf following its disposal. Prior to the sale, these amounts were eliminated in consolidation as intercompany revenues, intercompany cost of sales, and royalty income.

We ceased depreciating and amortizing our long-lived assets and intangible assets for the Topgolf business when it met the held for sale criteria, which primarily includes property and equipment, right-of-use assets and amortizing intangible assets. Additionally, due to the amendment of our Term Loan B requiring a mandatory repayment of $500.0 million upon the consummation of the sale of Topgolf, we attributed a portion of the interest expense incurred on our Term Loan B to discontinued operations. Accordingly, for the years ended December 31, 2025, 2024 and 2023, we allocated interest expense of $38.1 million, $43.5 million, and $36.8 million, respectively, from continuing operations to discontinued operations.

Assets and liabilities classified as held for sale are subject to an impairment assessment before applying a measurement basis of fair value less cost to sell on the carrying value of the disposal group. As a result of this assessment, we determined that as of December 31, 2025, the carrying value of the Topgolf trade name was above its fair value and we therefore recognized an impairment loss of $284.0 million within discontinued operations in the consolidated statement of operations. Subsequently, we determined that the carrying amount of the disposal group exceeded its fair value less cost to sell and recorded an estimated loss on sale of $143.1 million within discontinued operations in the consolidated statement of operations.

On May 31, 2025, pursuant to the terms and conditions of the previously disclosed Sale & Purchase Agreement, dated as of April 10, 2025 by and between the Company and Anca Holdco GmbH & Co. KG, an indirect wholly-owned subsidiary of ANTA Sports Products Limited, we completed the sale of 100% of the outstanding equity interests of Callaway Germany Holdco GmbH, which owned various entities that operate the Jack Wolfskin business, for $290.0 million, net of cash retained and subject to net working capital and other customary adjustments. We recorded a total loss on the sale of $26.2 million within discontinued operations in the consolidated statement of operations. Certain working capital adjustments are to be finalized over a defined period from the closing of the sale. Any resulting revisions will be settled in cash, with an offsetting impact recognized in loss on sale.

Although the Jack Wolfskin business was initially classified as held for sale, its results were not presented as discontinued operations at that time, as the disposition alone did not meet the criteria for discontinued operations. Following the sale of a majority stake in the Topgolf business, management determined that both transactions collectively represent a strategic shift to focus the Company on its core Golf Equipment and complementary soft goods businesses. As a result, the operating results of Jack Wolfskin are presented as discontinued operations for all periods presented in the consolidated financial statements.


	May 31, 2025
Assets

Accounts receivable	$	11.7
Inventories	86.2
Property, plant and equipment, net	11.8
Operating lease right-of-use assets, net	67.4
Trade names and trademarks	212.2
Goodwill and other intangible assets	16.2
Other assets	36.2
Total assets	$	441.7

Liabilities
Accounts payable and accrued expenses	$	48.6
Operating lease liabilities	64.7
Other liabilities	40.7
Total liabilities	$	154.0

Carrying value of net assets sold	$	287.7


For the year ended December 31, 2025
	Topgolf		Jack Wolfskin		Total
Net revenues:
Products	$	13.7	$	95.4	$	109.1
Services	1,778.6		—		1,778.6
Total net revenues	1,792.3		95.4		1,887.7
Costs and expenses:
Cost of products	7.2		54.5		61.7
Cost of services, excluding depreciation and amortization	188.2		—		188.2
Other venue expense	1,295.4		—		1,295.4
Selling, general and administrative expense	179.5		68.7		248.2
Research and development expense	15.2		2.2		17.4
Trade name impairment	284.0		—		284.0
Loss on classification of Topgolf as discontinued operations	143.1		—		143.1
Venue pre-opening costs	7.7		—		7.7
Total costs and expenses	2,120.3		125.4		2,245.7
Income (loss) from discontinued operations	(328.0)		(30.0)		(358.0)
Interest expense, net	(176.0)		(0.1)		(176.1)
Other income (expense), net	(1.0)		(11.5)		(12.5)
Income (loss) from discontinued operations before income taxes	(505.0)		(41.6)		(546.6)
Income tax provision (benefit)	(98.1)		(0.4)		(98.5)
Net income (loss) from discontinued operations	$	(406.9)	$	(41.2)	$	(448.1)


For the year ended December 31, 2024
	Topgolf		Jack Wolfskin		Total
Net revenues:
Products	$	17.9	$	355.1	$	373.0
Services	1,791.5		—		1,791.5
Total net revenues	1,809.4		355.1		2,164.5
Costs and expenses:
Cost of products	10.5		203.3		213.8
Cost of services, excluding depreciation and amortization	186.7		—		186.7
Other venue expense	1,303.5		—		1,303.5
Selling, general and administrative expense	194.1		181.6		375.7
Research and development expense	19.7		8.3		28.0
Goodwill and trade name impairment	1,452.0		—		1,452.0
Venue pre-opening costs	14.8		—		14.8
Total costs and expenses	3,181.3		393.2		3,574.5
Income (loss) from discontinued operations	(1,371.9)		(38.1)		(1,410.0)
Interest expense, net	(167.3)		(0.8)		(168.1)
Other income (expense), net	—		(6.5)		(6.5)
Income (loss) from discontinued operations before income taxes	(1,539.2)		(45.4)		(1,584.6)
Income tax provision (benefit)	(40.1)		(3.4)		(43.5)
Net income (loss) from discontinued operations	$	(1,499.1)	$	(42.0)	$	(1,541.1)


For the year ended December 31, 2023
	Topgolf		Jack Wolfskin		Total
Net revenues:
Products	$	16.3	$	393.5	$	409.8
Services	1,744.7		—		1,744.7
Total net revenues	1,761.0		393.5		2,154.5
Costs and expenses:
Cost of products	10.1		230.6		240.7
Cost of services, excluding depreciation and amortization	186.8		—		186.8
Other venue expense	1,252.3		—		1,252.3
Selling, general and administrative expense	185.1		180.3		365.4
Research and development expense	30.9		9.0		39.9

Venue pre-opening costs	25.9		—		25.9
Total costs and expenses	1,691.1		419.9		2,111.0
Income (loss) from discontinued operations	69.9		(26.4)		43.5
Interest expense, net	(137.3)		(2.2)		(139.5)
Other income (expense), net	0.8		0.5		1.3
Income (loss) from discontinued operations before income taxes	(66.6)		(28.1)		(94.7)
Income tax provision (benefit)	(82.6)		(7.6)		(90.2)
Net income (loss) from discontinued operations	$	16.0	$	(20.5)	$	(4.5)


As of December 31, 2025
	Topgolf
Current assets of discontinued operations

Accounts receivable	$	4.2
Inventories	37.1
Other current assets	117.2
Total current assets of discontinued operations	158.5
Long-term assets of discontinued operations
Property, plant and equipment, net	2,072.5
Operating lease right-of-use assets, net	1,066.4
Trade names and trademarks	607.9
Other intangible assets, net	46.5

Other assets, net	218.2
Total long-term assets of discontinued operations	4,011.5
Total assets of discontinued operations	$	4,170.0
Current liabilities of discontinued operations
Accounts payable and accrued expenses	$	117.2
Accrued employee compensation and benefits	56.1

Operating lease liabilities, short-term	59.8
Construction advances	29.1
Deferred revenue	59.7
Other current liabilities	3.1
Total current liabilities of discontinued operations	325.0
Long-term liabilities of discontinued operations
Long-term debt, net	42.8
Operating lease liabilities, long-term	1,102.5
Deemed landlord financing obligations	1,300.7
Other long-term liabilities	342.5
Total long-term liabilities of discontinued operations	2,788.5
Total liabilities of discontinued operations	$	3,113.5


As of December 31, 2024
	Topgolf		Jack Wolfskin		Total
Current assets of discontinued operations

Accounts receivable	$	8.1	$	30.4	$	38.5
Inventories	43.5		85.6		129.1
Other current assets	103.8		16.7		120.5
Total current assets of discontinued operations	155.4		132.7		288.1
Long-term assets of discontinued operations
Property, plant and equipment, net	2,030.8		12.3		2,043.1
Operating lease right-of-use assets, net	1,122.8		64.5		1,187.3
Trade names and trademarks	891.9		193.6		1,085.5
Other intangible assets, net	50.5		14.1		64.6
Goodwill	—		1.5		1.5
Other assets, net	349.5		14.1		363.6
Total long-term assets of discontinued operations	4,445.5		300.1		4,745.6
Total assets of discontinued operations	$	4,600.9	$	432.8	$	5,033.7
Current liabilities of discontinued operations
Accounts payable and accrued expenses	$	121.8	$	62.3	$	184.1
Accrued employee compensation and benefits	51.9		13.2		65.1

Operating lease liabilities, short-term	55.6		15.6		71.2
Construction advances	6.0		—		6.0
Deferred revenue	78.2		1.9		80.1
Other current liabilities	5.3		7.6		12.9
Total current liabilities of discontinued operations	318.8		100.6		419.4
Long-term liabilities of discontinued operations
Long-term debt, net	43.6		—		43.6
Operating lease liabilities, long-term	1,162.0		50.6		1,212.6
Deemed landlord financing obligations	1,194.8		—		1,194.8
Other long-term liabilities	341.1		26.2		367.3
Total long-term liabilities of discontinued operations	2,741.5		76.8		2,818.3
Total liabilities of discontinued operations	$	3,060.3	$	177.4	$	3,237.7