v3.25.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2025
Revenue Recognition [Abstract]  
Revenue Recognition Revenue Recognition
We primarily recognize revenue from the sale of our products. The following table presents our sales disaggregated by operating and reportable segment and major category (in millions):
Year Ended December 31,
202520242023
Golf Equipment:
Golf clubs$1,052.9 $1,060.9 $1,073.4 
Golf balls322.2 321.8 314.5 
Total Golf Equipment$1,375.1 $1,382.7 $1,387.9 
Apparel, Gear and Other:
Apparel$398.8 $405.6 $411.7 
Gear, accessories & other286.2 289.4 333.1 
Total Apparel, Gear and Other
$685.0 $695.0 $744.8 
Total Consolidated$2,060.1 $2,077.7 $2,132.7 
Net sales
We sell our Golf Equipment products and Apparel, Gear and Other products in the United States and internationally, with our principal international regions being Europe and Asia. Golf Equipment product sales are generally higher than Apparel, Gear and Other sales in most regions.
The following table summarizes sales by geographical region (in millions):
Year Ended December 31,
202520242023
Sales by Major Geographic Region:
United States$1,363.3 $1,381.1 $1,395.7 
Europe203.8 182.1 173.4 
Asia363.1 379.1 436.6 
Rest of World129.9 135.4 127.0 
Total$2,060.1 $2,077.7 $2,132.7 
Licensing, royalty and other income
We have licensing and royalty income from licensing agreements for apparel and soft good products in our Apparel, Gear and Other operating segment. The following table summarizes the licensing and royalty income we received, which is recorded as sales, for the periods presented (in millions):
Year Ended December 31,
202520242023
Apparel, Gear and Other$28.8 $27.1 $26.9 
Deferred revenue
Our deferred revenue balance includes short-term revenue which consists primarily of revenue from the sale of gift cards and accrued customer loyalty points.
The following table provides a reconciliation of activity related to our short-term deferred revenue balance for the periods presented (in millions):
Year Ended December 31,
202520242023
Beginning Balance$15.9 $12.7 $10.5 
Deferral of revenue25.2 23.4 18.5 
Revenue recognized(17.4)(19.5)(15.5)
Breakage(2.1)(1.4)(0.8)
Foreign currency translation and other(0.1)0.7 — 
Ending Balance$21.5 $15.9 $12.7 
The following table summarizes the amount of the deferred revenue recognized related to the redemption of gift cards during the periods presented which were included in the deferred revenue balance as of the end of the prior year reporting period (in millions):
Year Ended December 31,
202520242023
Deferred revenue recognized from prior period ending balance (excluding breakage)$3.0 $5.0 $3.2 
Variable consideration
We recognize revenue based on the amount of consideration we expect to receive from customers for the sale of our products adjusted for estimates of variable consideration related to sales returns, discounts and allowances, sales promotions and sales programs, and price concessions that we offer. These estimates are based on the amounts earned or expected to be claimed by customers.
The following table provides a reconciliation of our short-term sales program incentives activity for the periods presented (in millions):
Year Ended December 31,
202520242023
Sales Program Incentives:
Beginning Balance$18.2 $15.9 $20.1 
Additions44.5 43.4 39.3 
Credits issued(46.9)(39.6)(41.9)
Foreign currency translation and other(0.8)(1.5)(1.6)
Ending Balance$15.0 $18.2 $15.9 
Our provision for the sales return liability fluctuates with the seasonality of the business, while actual sales returns are generally more heavily weighted toward the second half of the year as the golf season comes to an end. The following table provides a reconciliation of the activity related to our sales return reserve for the periods presented (in millions):
Year Ended December 31,
202520242023
Sales Return Liability:
Beginning Balance$62.2 $51.6 $50.0 
Provision185.0 178.1 174.4 
Sales returns(183.0)(167.5)(172.8)
Ending Balance$64.2 $62.2 $51.6 
The following table summarizes the cost recovery of inventory associated with our sales return liability included in other current assets (in millions):
Year Ended December 31,
202520242023
Cost recovery of inventory$30.4 $27.9 $24.2 
The following table summarizes the accrued rebate liability associated with our sales program included in accounts payable and accrued expenses (in millions):
Year Ended December 31,
202520242023
Accrued rebate liability$15.0 $14.3 $13.6