v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
We recognize revenue from the sale of our products. The following table presents our net sales disaggregated by operating and reportable segment and major category (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Net Sales by Operating and Reportable Segment and Major Category
Golf Equipment:
Golf clubs$316.5 $312.7 $697.1 $652.7 
Golf balls113.8 99.1 219.4 203.0 
Total Golf Equipment$430.3 $411.8 $916.5 $855.7 
Apparel, Gear and Other:
Apparel$105.2 $104.3 $207.9 $202.3 
Gear, accessories & other76.7 84.3 175.3 172.0 
Total Apparel, Gear and Other$181.9 $188.6 $383.2 $374.3 
Total Consolidated$612.2 $600.4 $1,299.7 $1,230.0 
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 all regions.
The following table summarizes sales by geographical region (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Net Sales by Major Geographic Region:
United States$414.7 $401.1 $863.5 $817.2 
Europe64.8 64.6 148.0 128.9 
Asia90.3 91.9 193.9 198.7 
Rest of World42.4 42.8 94.3 85.2 
Total Consolidated$612.2 $600.4 $1,299.7 $1,230.0 
Licensing and royalties
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 recognized in net sales for the periods presented (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Apparel, Gear and Other$6.1 $9.0 $15.1 $16.1 
Deferred revenue
Our short-term deferred revenue balance 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):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Beginning Balance (1)
$15.5 $16.2 $21.5 $15.9 
Deferral of revenue8.0 5.9 14.7 11.4 
Revenue recognized(7.6)(5.7)(20.3)(11.0)
Foreign currency translation and other
— (0.1)— — 
Ending Balance$15.9 $16.3 $15.9 $16.3 
(1) Beginning balances for the three months ended June 30, 2026 and 2025 represent ending balances as of March 31, 2026 and 2025, respectively. Beginning balances for the six months ended June 30, 2026 and 2025 represent ending balances as of December 31, 2025 and 2024, respectively.
Deferred revenue recognized during the three months ended June 30, 2026 and 2025 from gift card redemptions that were included in the deferred revenue balance at the end of the prior year period was $0.7 million and $1.0 million, respectively. Deferred revenue recognized during the six months ended June 30, 2026 and 2025 from gift card redemptions that were included in the deferred revenue balance at the end of the prior year period was $2.0 million and $2.4 million, respectively. The increase in revenue recognized during the three and six months ended June 30, 2026, includes the impact of the transition to a new customer loyalty program related to our TravisMathew business. We have recognized $2.2 million and $8.0 million, respectively, of deferred revenue related to expired loyalty points during the three and six months ended June 30, 2026.
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. These estimates are based on the amounts earned or expected to be claimed by customers.
As of June 30, 2026 and December 31, 2025, the balances for our short-term sales incentive program included in accounts receivable, net on our condensed consolidated balance sheets, were $28.9 million and $15.0 million, respectively.
As of June 30, 2026 and December 31, 2025, the balances for our sales return reserve included in accounts receivable, net on our condensed consolidated balance sheets, were $100.1 million and $64.2 million, respectively. For these periods, the related cost recovery balances of inventory associated with the sales return liability included in other current assets on our condensed consolidated balance sheets, were $42.2 million and $30.4 million, respectively.