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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form
10-Q

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
or
☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from  to    
Commission file number: 001-37935
Acushnet Holdings Corp.
(Exact name of registrant as specified in its charter)
Delaware45-2644353
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
333 Bridge StreetFairhaven,Massachusetts02719
(Address of principal executive offices)(Zip Code)
 
(800) 225-8500
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock - $0.001 par value per shareGOLFNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒  No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒

Accelerated filer☐
Non-accelerated filer
☐

Smaller reporting company☐
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒
The registrant had 65,377,739 shares of common stock outstanding as of October 27, 2023.
ACUSHNET HOLDINGS CORP.
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2023
TABLE OF CONTENTS
 
 
1
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by that section. These forward-looking statements are included throughout this report, including in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and relate to matters such as our industry, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. We have used the words “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable” and similar terms and phrases to identify forward-looking statements in this report, although not all forward-looking statements use these identifying words.
The forward-looking statements contained in this report are based on management’s current expectations and are subject to uncertainty and changes in circumstances. We cannot assure you that future developments affecting us will be those that we have anticipated. Actual results may differ materially from these expectations due to changes in global, regional or local economic, business, competitive, market, regulatory and other factors, many of which are beyond our control. We believe that these factors include:
•a reduction in the number of rounds of golf played or in the number of golf participants;
•unfavorable weather conditions may impact the number of playable days and rounds played in a given year;
•consumer spending habits and macroeconomic factors may affect the number of rounds of golf played and related spending on golf products;
•demographic factors may affect the number of golf participants and related spending on our products;
•changes to the Rules of Golf with respect to equipment;
•a significant disruption in the operations of our manufacturing, assembly or distribution facilities;
•our ability to procure raw materials or components of our products;
•a disruption in the operations of our suppliers;
•the cost of raw materials and components;
•currency transaction and translation risk;
•our ability to successfully manage the frequent introduction of new products or satisfy changing consumer preferences, quality and regulatory standards;
•our reliance on technical innovation and high-quality products;
•our ability to adequately enforce and protect our intellectual property rights;
•involvement in lawsuits to protect, defend or enforce our intellectual property rights;
•our ability to prevent infringement of intellectual property rights by others;
•changes to patent laws;
•intense competition and our ability to maintain a competitive advantage in each of our markets;
•limited opportunities for future growth in sales of certain of our products, including golf balls, golf shoes and golf gloves;
•our customers’ financial condition, their levels of business activity and their ability to pay trade obligations;
•a decrease in corporate spending on our custom logo golf balls;
•our ability to maintain and further develop our sales channels;
•consolidation of retailers or concentration of retail market share;
•our ability to maintain and enhance our brands;
•seasonal fluctuations of our business;
•fluctuations of our business based on the timing of new product introductions;
•risks associated with doing business globally;
•compliance with laws, regulations and policies, including the U.S. Foreign Corrupt Practices Act or other applicable anti-corruption legislation;
•our ability to secure professional golfers to endorse or use our products;
•negative publicity relating to us or the golfers who use our products or the golf industry in general;
•our ability to accurately forecast demand for our products;
•a disruption in the service, or a significant increase in the cost, of our primary delivery and shipping services or a significant disruption at shipping ports;
•our ability to maintain our information systems to adequately perform their functions;
•cybersecurity risks;
•our ability to comply with data privacy and security laws;
•the ability of our eCommerce systems to function effectively;
•impairment of goodwill and identifiable intangible assets;
2
•our ability to attract and/or retain management and other key employees and hire qualified management, technical and manufacturing personnel;
•our ability to prohibit sales of our products by unauthorized retailers or distributors;
•our ability to grow our presence in existing international markets and expand into additional international markets;
•tax uncertainties, including potential changes in tax laws, unanticipated tax liabilities and limitations on utilization of tax attributes after any change of control;
•adequate levels of coverage of our insurance policies;
•product liability, warranty and recall claims;
•litigation and other regulatory proceedings;
•compliance with environmental, health and safety laws and regulations;
•our ability to secure additional capital at all or on terms acceptable to us and potential dilution of holders of our common stock;
•lack of assurance of positive returns on capital investments;
•risks associated with acquisitions and investments;
•our estimates or judgments relating to our critical accounting estimates;
•terrorist activities and international political instability;
•occurrence of natural disasters or pandemic diseases;
•a high degree of leverage, ability to service our indebtedness, ability to incur more indebtedness and restrictions in the agreements governing our indebtedness;
•our use of derivative financial instruments;
•the ability of our controlling shareholder to control significant corporate activities, and that our controlling shareholder’s interests may conflict with yours;
•our status as a controlled company;
•the market price of shares of our common stock;
•the execution of our share repurchase program and effects thereof;
•our ability to maintain effective internal controls over financial reporting;
•our ability to pay dividends;
•our status as a holding company;
•dilution from future issuances or sales of our common stock;
•anti-takeover provisions in our organizational documents and Delaware law;
•reports from securities analysts; and
•other factors discussed under the heading "Risk Factors" in our most recent Annual Report on Form 10-K and in any other reports we file with the Securities and Exchange Commission (“SEC”), including this Quarterly Report on Form 10-Q.
These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in these forward-looking statements.
Any forward-looking statement made by us in this report speaks only as of the date of this report. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments or other strategic transactions we may make. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
Website Disclosure
We use our website (www.acushnetholdingscorp.com) as a channel of distribution of company information. The information we post through this channel may be material. Accordingly, investors should monitor this channel, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts and other information about Acushnet Holdings Corp. when you enroll your e-mail address by visiting the “Resources” section of our website at https://www.acushnetholdingscorp.com/investors/resources. On our website, we post the following filings free of charge as soon as reasonably practicable after they are electronically filed with or furnished to the SEC: our annual reports on Form 10-K, our proxy statements, our quarterly reports on Form 10-Q, our current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act. The contents of our website are not, however, a part of this report.
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PART I.       FINANCIAL INFORMATION

ITEM 1.      FINANCIAL STATEMENTS
INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

4
ACUSHNET HOLDINGS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 
September 30,December 31,
(in thousands, except share and per share amounts)20232022
Assets
Current assets
Cash, cash equivalents and restricted cash ($13,748 and $14,376 attributable to the variable interest entity ("VIE"))
$56,766 $58,904 
Accounts receivable, net335,821 216,695 
Inventories ($8,248 and $17,866 attributable to the VIE)
528,730 674,684 
Prepaid and other assets112,204 108,793 
Total current assets1,033,521 1,059,076 
Property, plant and equipment, net ($9,358 and $10,089 attributable to the VIE)
275,007 254,472 
Goodwill ($32,312 and $32,312 attributable to the VIE)
222,678 224,814 
Intangible assets, net540,728 525,903 
Deferred income taxes21,440 47,551 
Other assets ($2,003 and $2,083 attributable to the VIE)
117,193 81,991 
Total assets$2,210,567 $2,193,807 
Liabilities, Redeemable Noncontrolling Interests and Shareholders' Equity
Current liabilities
Short-term debt$34,121 $40,336 
Current portion of long-term debt345,065 — 
Accounts payable ($4,664 and $11,914 attributable to the VIE)
136,777 166,998 
Accrued taxes43,386 40,922 
Accrued compensation and benefits ($1,115 and $1,651 attributable to the VIE)
96,127 98,245 
Accrued expenses and other liabilities ($1,592 and $3,380 attributable to the VIE)
200,721 202,124 
Total current liabilities856,197 548,625 
Long-term debt213,623 527,509 
Deferred income taxes6,113 5,896 
Accrued pension and other postretirement benefits76,128 74,234 
Other noncurrent liabilities ($52 and $2,145 attributable to the VIE)
84,600 54,177 
Total liabilities1,236,661 1,210,441 
Commitments and contingencies (Note 15)
Redeemable noncontrolling interests7,260 6,663 
Shareholders' equity
Common stock, $0.001 par value, 500,000,000 shares authorized; 76,805,736 and 76,321,523 shares issued
77 76 
Additional paid-in capital970,646 960,685 
Accumulated other comprehensive loss, net of tax(122,770)(109,668)
Retained earnings657,793 473,130 
Treasury stock, at cost; 12,481,803 and 8,892,425 shares (including 1,439,400 and 2,000,839 of accrued share repurchases (Note 10))
(577,380)(385,167)
Total equity attributable to Acushnet Holdings Corp.928,366 939,056 
Noncontrolling interests38,280 37,647 
Total shareholders' equity966,646 976,703 
Total liabilities, redeemable noncontrolling interests and shareholders' equity$2,210,567 $2,193,807 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5
ACUSHNET HOLDINGS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 
 Three months ended September 30,Nine months ended September 30,
(in thousands, except share and per share amounts)2023202220232022
Net sales$593,381 $558,246 $1,969,034 $1,822,932 
Cost of goods sold284,859 263,251 926,317 867,332 
Gross profit308,522 294,995 1,042,717 955,600 
Operating expenses:    
Selling, general and administrative210,166 202,418 674,720 637,276 
Research and development16,239 14,619 47,286 42,533 
Intangible amortization3,512 1,948 10,712 5,865 
Income from operations78,605 76,010 309,999 269,926 
Interest expense, net9,389 4,534 30,234 7,902 
Other expense, net918 2,355 2,010 5,828 
Income before income taxes68,298 69,121 277,755 256,196 
Income tax expense11,252 15,797 52,726 52,786 
Net income57,046 53,324 225,029 203,410 
Less: Net loss (income) attributable to noncontrolling interests261 (1,487)208 (4,074)
Net income attributable to Acushnet Holdings Corp.$57,307 $51,837 $225,237 $199,336 
Net income per common share attributable to Acushnet Holdings Corp.:    
Basic$0.86 $0.72 $3.32 $2.74 
Diluted0.85 0.72 3.30 2.72 
Weighted average number of common shares:    
Basic66,898,142 71,706,824 67,812,790 72,701,647 
Diluted67,343,260 72,334,398 68,208,022 73,209,719 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6
ACUSHNET HOLDINGS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
 
 Three months ended September 30,Nine months ended September 30,
(in thousands)2023202220232022
Net income$57,046 $53,324 $225,029 $203,410 
Other comprehensive loss:
Foreign currency translation adjustments(10,991)(26,527)(12,919)(58,592)
Cash flow derivative instruments:
Unrealized holding gains arising during period4,090 6,106 8,320 18,155 
Reclassification adjustments included in net income(923)(2,535)(7,404)(5,476)
Tax expense (807)(1,099)(269)(3,977)
Cash flow derivative instruments, net2,360 2,472 647 8,702 
Pension and other postretirement benefits:    
Pension and other postretirement benefits adjustments190 2,252 (914)5,788 
Tax (expense) benefit (32)(576)216 (1,395)
Pension and other postretirement benefits adjustments, net158 1,676 (698)4,393 
Total other comprehensive loss(8,473)(22,379)(12,970)(45,497)
Comprehensive income48,573 30,945 212,059 157,913 
Less: Comprehensive loss (income) attributable to noncontrolling interests309 (1,446)76 (3,862)
Comprehensive income attributable to Acushnet Holdings Corp.$48,882 $29,499 $212,135 $154,051 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7
ACUSHNET HOLDINGS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
 Nine months ended September 30,
(in thousands)20232022
Cash flows from operating activities  
Net income$225,029 $203,410 
Adjustments to reconcile net income to cash flows provided by (used in) operating activities
Depreciation and amortization38,181 30,894 
Unrealized foreign exchange (gain) loss (2,495)12,531 
Amortization of debt issuance costs501 1,835 
Share-based compensation21,369 18,159 
Gain on disposals of property, plant and equipment(19)(3,257)
Deferred income taxes25,015 6,928 
Changes in operating assets and liabilities
Accounts receivable(125,667)(176,531)
Inventories136,828 (156,065)
Accounts payable(30,030)21,437 
Accrued taxes5,798 (3,419)
Other assets and liabilities2,420 (14,964)
Cash flows provided by (used in) operating activities296,930 (59,042)
Cash flows from investing activities  
Additions to property, plant and equipment(42,432)(33,638)
Additions to intangible assets (Note 16)
(25,235)— 
Other, net(887)4,542 
Cash flows used in investing activities(68,554)(29,096)
Cash flows from financing activities
(Repayments of) proceeds from short-term borrowings, net (Note 5)
(3,121)31,056 
Proceeds from revolving credit facilities (Note 5)
1,039,443 483,000 
Repayments of revolving credit facilities (Note 5)
(1,010,387)(77,400)
Repayments of term loan facility (Note 5)
— (315,000)
Purchases of common stock(204,656)(138,158)
Payment of debt issuance costs— (2,583)
Dividends paid on common stock(40,099)(39,672)
Dividends paid to noncontrolling interests— (1,601)
Payment of employee restricted stock tax withholdings(11,460)(10,661)
Other, net1,078 (3,600)
Cash flows used in financing activities(229,202)(74,619)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash(1,312)(10,463)
Net decrease in cash, cash equivalents and restricted cash(2,138)(173,220)
Cash, cash equivalents and restricted cash, beginning of year58,904 281,677 
Cash, cash equivalents and restricted cash, end of period$56,766 $108,457 
Supplemental non-cash information  
Purchases of property, plant and equipment, accrued not paid$6,007 $6,757 
Additions to right-of-use assets obtained in exchange for operating lease obligations50,813 17,919 
Additions to right-of-use assets obtained in exchange for finance lease obligations711 335 
Additions to treasury stock2,023 1,595 
Dividend equivalents rights ("DERs") declared not paid1,411 1,323 
Contingent consideration (Note 16)
— 1,400 
Share repurchase liability (Note 10)
79,765 41,577 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
8
ACUSHNET HOLDINGS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)
 Common StockAdditional
Paid-in
Capital		Accumulated
Other
Comprehensive
Loss,
Net of Tax		Retained
Earnings		Treasury StockTotal
Shareholders'
Equity
Attributable
to Acushnet
Holdings Corp.		Noncontrolling
Interests		Total
Shareholders'
Equity
(in thousands)SharesAmount
Balances as of June 30, 202276,289 $76 $949,206 $(122,700)$444,592 $(200,001)$1,071,173 $34,654 $1,105,827 
Net income— — — — 51,837 — 51,837 1,594 53,431 
Other comprehensive loss— — — (22,379)— — (22,379)— (22,379)
Share-based compensation — — 5,673 — — — 5,673 — 5,673 
Vesting of restricted common stock, including impact of DERs,
net of shares withheld for employee taxes (Note 11)
33 — 47 — — — 47 — 47 
Purchases of common stock (Note 10)
— — — — — (41,577)(41,577)— (41,577)
Share repurchase liability (Note 10)
— — — — — (41,577)(41,577)— (41,577)
Dividends and dividend equivalents declared— — — — (13,192)— (13,192)— (13,192)
Balances as of September 30, 202276,322 $76 $954,926 $(145,079)$483,237 $(283,155)$1,010,005 $36,248 $1,046,253 
Balances as of June 30, 202376,782 $77 $965,446 $(114,345)$613,584 $(447,543)$1,017,219 $37,998 $1,055,217 
Net income— — — — 57,307 — 57,307 282 57,589 
Other comprehensive loss— — — (8,425)— — (8,425)— (8,425)
Share-based compensation — — 5,141 — — — 5,141 — 5,141 
Vesting of restricted common stock, including impact of DERs,
net of shares withheld for employee taxes (Note 11)
24 — 59 — — — 59 — 59 
Purchases of common stock (Note 10)— — — — — (64,918)(64,918)— (64,918)
Share repurchase liability (Note 10)— — — — — (64,919)(64,919)— (64,919)
Dividends and dividend equivalents declared— — — — (13,098)— (13,098)— (13,098)
Balances as of September 30, 202376,806 $77 $970,646 $(122,770)$657,793 $(577,380)$928,366 $38,280 $966,646 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
9
ACUSHNET HOLDINGS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)
 Common StockAdditional
Paid-in
Capital		Accumulated
Other
Comprehensive
Loss,
Net of Tax		Retained
Earnings		Treasury StockTotal
Shareholders'
Equity
Attributable
to Acushnet
Holdings Corp.		Noncontrolling
Interests		Total
Shareholders'
Equity
(in thousands)SharesAmount
Balances as of December 31, 202175,855 $76 $948,423 $(99,582)$324,966 $(131,039)$1,042,844 $37,423 $1,080,267 
Purchase of equity from noncontrolling interest (Note 16)
— — (838)— — — (838)(3,905)(4,743)
Net income— — — — 199,336 — 199,336 4,331 203,667 
Other comprehensive loss— — — (45,497)— — (45,497)— (45,497)
Share-based compensation — — 17,667 — — — 17,667 — 17,667 
Vesting of restricted common stock, including impact of DERs,
net of shares withheld for employee taxes (Note 11)
467 — (10,326)— — — (10,326)— (10,326)
Purchases of common stock (Note 10)
— — — — — (110,539)(110,539)— (110,539)
Share repurchase liability (Note 10)
— — — — — (41,577)(41,577)— (41,577)
Dividends and dividend equivalents declared— — — — (40,065)— (40,065)— (40,065)
Dividends declared to noncontrolling interests
— — — — — — — (1,601)(1,601)
Redemption value adjustment (Note 1)— — — — (1,000)— (1,000)— (1,000)
Balances as of September 30, 202276,322 $76 $954,926 $(145,079)$483,237 $(283,155)$1,010,005 $36,248 $1,046,253 
Balances as of December 31, 202276,322 $76 $960,685 $(109,668)$473,130 $(385,167)$939,056 $37,647 $976,703 
Sale of equity to redeemable noncontrolling interest— — 444 — (180)— 264 — 264 
Net income— — — — 225,237 — 225,237 633 225,870 
Other comprehensive loss— — — (13,102)— — (13,102)— (13,102)
Share-based compensation — — 20,877 — — — 20,877 — 20,877 
Vesting of restricted common stock, including impact of DERs,
net of shares withheld for employee taxes (Note 11)
484 1 (11,360)— — — (11,359)— (11,359)
Purchases of common stock (Note 10)
— — — — — (112,448)(112,448)— (112,448)
Share repurchase liability (Note 10)
— — — — — (79,765)(79,765)— (79,765)
Dividends and dividend equivalents declared— — — — (40,394)— (40,394)— (40,394)
Balances as of September 30, 202376,806 $77 $970,646 $(122,770)$657,793 $(577,380)$928,366 $38,280 $966,646 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

10
ACUSHNET HOLDINGS CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of Acushnet Holdings Corp. (the “Company”), its wholly-owned subsidiaries and less than wholly-owned subsidiaries, including a variable interest entity (“VIE”) in which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.
Certain information in footnote disclosures normally included in annual financial statements has been condensed or omitted for the interim periods presented in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP. The year-end balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the unaudited condensed consolidated financial statements do not include all disclosures required by U.S. GAAP. In the opinion of management, the financial statements contain all normal and recurring adjustments necessary to state fairly the financial position and results of operations of the Company. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of results to be expected for the full year ending December 31, 2023, nor were those of the comparable 2022 periods representative of those actually experienced for the full year ended December 31, 2022. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the fiscal year ended December 31, 2022 included in its Annual Report on Form 10-K filed with the SEC on March 1, 2023.
Use of Estimates
The preparation of the Company’s unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect reported amounts of assets and liabilities and related 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. Actual results could differ from these estimates.
Variable Interest Entities
VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities independently, or (ii) have equity holders that do not have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the entity’s expected losses, or the right to receive the entity’s expected residual returns. The Company consolidates a VIE when it is the primary beneficiary, which is the party that has both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) through its interests in the VIE, the obligation to absorb expected losses or the right to receive expected benefits from the VIE that could potentially be significant to the VIE.
The Company consolidates the accounts of Acushnet Lionscore Limited, a VIE which is 40% owned by the Company. The sole purpose of the VIE is to manufacture the Company’s golf footwear and as such, the Company is deemed to be the primary beneficiary. The Company has presented separately on its unaudited condensed consolidated balance sheets, to the extent material, the assets of its consolidated VIE that can only be used to settle specific obligations of its consolidated VIE and the liabilities of its consolidated VIE for which creditors do not have recourse to its general credit. The general creditors of the VIE do not have recourse to the Company. Certain directors of the VIE have guaranteed the credit lines of the VIE, for which there were no outstanding borrowings as of September 30, 2023 and December 31, 2022. In addition, pursuant to the terms of the agreement governing the VIE, the Company is not required to provide financial support to the VIE.
11
Noncontrolling Interests and Redeemable Noncontrolling Interests
The ownership interests held by owners other than the Company in less than wholly-owned subsidiaries are classified as noncontrolling interests. The financial results and position of noncontrolling interests are included in the Company’s unaudited condensed consolidated financial statements. The value attributable to the noncontrolling interests is presented on the unaudited condensed consolidated balance sheets, separately from the equity attributable to the Company. Net income (loss) and comprehensive income (loss) attributable to noncontrolling interests are presented separately on the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of comprehensive income, respectively.
Redeemable noncontrolling interests are those noncontrolling interests which are or may become redeemable at a fixed or determinable price on a fixed or determinable date, at the option of the holder, or upon occurrence of an event. The Company initially records the redeemable noncontrolling interest at its acquisition date fair value. The carrying amount of the redeemable noncontrolling interest is subsequently adjusted to the greater amount of either the initial carrying amount, increased or decreased for the redeemable noncontrolling interest's share of comprehensive income (loss) or the redemption value, assuming the noncontrolling interest is redeemable at the balance sheet date. This adjustment is recognized through retained earnings and is not reflected in net income (loss) or comprehensive income (loss). During the nine months ended September 30, 2022, the Company recorded a $1.0 million redemption value adjustment to increase the carrying value of redeemable noncontrolling interests. The value attributable to redeemable noncontrolling interests and any related loans to minority shareholders, which are recorded as a reduction to redeemable noncontrolling interests, are presented in the unaudited condensed consolidated balance sheets as temporary equity between liabilities and shareholders’ equity. The amount of the loan to minority shareholders was $4.4 million as of both September 30, 2023 and December 31, 2022.
Cash, Cash Equivalents and Restricted Cash
Cash held in Company checking accounts is included in cash. Cash equivalents consist of short-term highly liquid investments with original maturities of three months or less which are readily convertible into cash. The Company classifies as restricted certain cash that is not available for use in its operations. As of September 30, 2023 and December 31, 2022, the amount of restricted cash included in cash, cash equivalents and restricted cash on the unaudited condensed consolidated balance sheets was $1.7 million and $1.8 million, respectively.
Foreign Currency Transactions
Foreign currency transaction losses included in selling, general and administrative expenses were $0.9 million and $6.2 million for the three months ended September 30, 2023 and 2022, respectively. Foreign currency transaction losses included in selling, general and administrative expenses were $3.4 million and $15.0 million for the nine months ended September 30, 2023 and 2022, respectively.
Recently Adopted Accounting Standards
The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs"). Management determined that recently issued ASUs are not expected to have a material impact on the Company's consolidated financial statements.

2. Allowance for Doubtful Accounts
The Company estimates expected credit losses using a number of factors, including customer credit ratings, age of receivables, historical credit loss information and current and forecasted economic conditions, which could affect the collectability of the reported amounts. All of these factors have been considered in the estimate of expected credit losses for the periods presented.
The activity related to the allowance for doubtful accounts was as follows:
Three months ended September 30,Nine months ended September 30,
(in thousands)2023202220232022
Balance at beginning of period$9,008 $7,918 $8,258 $5,980 
Bad debt expense17 193 814 2,648 
Amount of receivables written off (239)(203)(341)(472)
Foreign currency translation(124)(227)(69)(475)
Balance at end of period$8,662 $7,681 $8,662 $7,681 
12
3. Inventories
The components of inventories were as follows: 
September 30,December 31,
(in thousands)20232022
Raw materials and supplies$147,705 $154,881 
Work-in-process23,922 29,689 
Finished goods357,103 490,114 
Inventories$528,730 $674,684 

4. Product Warranty
The Company has defined warranties generally ranging from one to two years. Products covered by the defined warranty policies primarily include all Titleist golf products, FootJoy golf shoes and FootJoy golf outerwear. These product warranties generally obligate the Company to pay for the cost of replacement products, including the cost of shipping replacement products to its customers. The estimated cost of satisfying future warranty claims is accrued at the time the sale is recorded. In estimating future warranty obligations, the Company considers various factors, including its warranty policies and practices, the historical frequency of claims and the cost to replace or repair products under warranty.
The activity related to the Company’s warranty obligation for accrued warranty expense was as follows:
 Three months ended September 30,Nine months ended September 30,
(in thousands)2023202220232022
Balance at beginning of period$5,049 $4,077 $3,951 $4,177 
Provision1,568 1,286 5,313 3,497 
Claims paid/costs incurred(1,685)(1,333)(4,337)(3,489)
Foreign currency translation(61)(150)(56)(305)
Balance at end of period$4,871 $3,880 $4,871 $3,880 

5. Debt and Financing Arrangements
Credit Facility
On August 2, 2022, the Company amended its credit agreement to, among other things, provide a $950.0 million multi-currency revolving credit facility and amend rates per annum at which borrowings in different denominations bear interest (the "Second Amended Credit Facility"). On August 2, 2022, proceeds from borrowings under the multi-currency revolving credit facility were used to, among other things, prepay in full the Company's then-outstanding term loans and refinance its outstanding borrowings under the revolving credit facility. Immediately prior to payment, the aggregate amounts outstanding related to the term loans and revolving credit facility were approximately $306.3 million and $72.6 million, respectively. The Second Amended Credit Facility matures on August 2, 2027, and as a result, the related borrowings have been classified as long-term debt, with the proceeds and repayments under the revolving credit facility presented on a gross basis in the consolidated statements of cash flows.
The credit agreement contains customary affirmative and restrictive covenants, including, among others, financial covenants based on the Company's leverage and interest coverage ratios. The credit agreement also includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations to be immediately due and payable. As of September 30, 2023, the Company was in compliance with all covenants under its credit agreement.
As of September 30, 2023, there were $557.1 million in outstanding borrowings under the Company's multi-currency revolving credit facility with a weighted average interest rate of 6.44%. As of September 30, 2023, the Company had available borrowings under its multi-currency revolving credit facility of $385.1 million after giving effect to $7.8 million of outstanding letters of credit.
13
Other Short-Term Borrowings
The Company has certain unsecured local credit facilities available through its subsidiaries. Amounts outstanding under other short-term borrowings are presented in short-term debt in the consolidated balance sheets with the proceeds and repayments presented on a gross basis in the consolidated statements of cash flows when the original maturity exceeds 90 days. There were $34.1 million and $40.3 million in outstanding borrowings under the Company's local credit facilities as of September 30, 2023 and December 31, 2022, respectively. The weighted average interest rate applicable to the outstanding borrowings was 0.53% and 0.85% as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023, the Company had available borrowings remaining under these local credit facilities of $27.5 million.
Letters of Credit
As of September 30, 2023 and December 31, 2022, there were outstanding letters of credit related to agreements, including the Company's Second Amended Credit Facility, totaling $10.9 million and $10.0 million, respectively, of which $7.8 million and $7.3 million, respectively, was secured. These agreements provided a maximum commitment for letters of credit of $58.0 million as of September 30, 2023.
Senior Unsecured Notes
On October 3, 2023, Acushnet Company (the "Issuer"), a wholly owned subsidiary of the Company, completed the issuance and sale of $350.0 million in gross proceeds of the Issuer's 7.375% senior unsecured notes due 2028 (the “Notes”). The Notes were issued pursuant to an Indenture, dated October 3, 2023 (the “Indenture”), among the Issuer, U.S. Bank Trust Company, National Association, as trustee of the Notes, and the Company and certain subsidiaries of the Issuer as guarantors.
The proceeds from the Notes offering were used to repay $345.6 million of the outstanding borrowings under the Company's multi-currency revolving credit facility, as well as to pay fees and expenses related to the Notes offering. In connection with the Notes offering, the Company estimates fees and expenses totaling approximately $6.4 million will be included in long-term debt on the unaudited condensed consolidated balance sheet and will be amortized to interest expense, net over the term of the Notes.
The Notes will bear interest at the rate of 7.375% per year, with interest payable semi-annually on April 15 and October 15 of each year, beginning on April 15, 2024.
The Notes will mature on October 15, 2028, unless earlier repurchased or redeemed in accordance with their terms, and as a result, will be classified as long-term debt. The Issuer may redeem all or part of the Notes at any time prior to October 15, 2025 at 100.0% of the principal amount redeemed plus a “make-whole” premium. The make-whole premium is the greater of (i) 1.0% of the then outstanding principal amount of the Notes being redeemed and (ii) the excess, if any, of: (1) the present value at such redemption date of the sum of (A) 103.688% of the principal amount of Notes being redeemed plus (B) all required interest payments due on the Notes through October 15, 2025 (excluding accrued but unpaid interest) and (2) the then outstanding principal amount of the Notes being redeemed.
Thereafter, the Issuer may redeem all or part of the Notes at the redemption prices (expressed as percentages of principal amount of the Notes to be redeemed) set forth below, together with any accrued and unpaid interest, if redeemed during the 12-month period beginning on October 15 of the years indicated below:
 YearRedemption Price
2025103.688 %
2026101.844 %
2027 and thereafter100.000 %

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6. Derivative Financial Instruments
The Company principally uses derivative financial instruments to reduce the impact of foreign currency fluctuations and interest rate variability on the Company's results of operations. The principal derivative financial instruments the Company enters into are foreign exchange forward contracts and interest rate swaps. The Company does not enter into derivative financial instrument contracts for trading or speculative purposes.
Foreign Exchange Derivative Instruments
Foreign exchange forward contracts are foreign exchange derivative instruments primarily used to reduce foreign currency risk related to transactions denominated in a currency other than functional currency. These instruments are designated as cash flow hedges. The periods of the foreign exchange forward contracts correspond to the periods of the hedged forecasted transactions, which do not exceed 24 months subsequent to the latest balance sheet date. The primary foreign exchange forward contracts pertain to the U.S. dollar, the Japanese yen, the British pound sterling, the Canadian dollar, the Korean won and the euro. The gross U.S. dollar equivalent notional amount outstanding of all foreign exchange forward contracts designated under hedge accounting as of September 30, 2023 and December 31, 2022 was $193.2 million and $242.4 million, respectively.
The Company also enters into foreign exchange forward contracts, which either do not qualify as hedging instruments or have not been designated as such, to reduce foreign currency transaction risk related to certain intercompany assets and liabilities denominated in a currency other than functional currency. These undesignated instruments are recorded at fair value as a derivative asset or liability with the corresponding change in fair value recognized in selling, general and administrative expenses. There were no outstanding foreign exchange forward contracts not designated under hedge accounting as of September 30, 2023. The gross U.S. dollar equivalent notional amount outstanding of all foreign exchange forward contracts not designated under hedge accounting as of December 31, 2022 was $4.0 million. Selling, general and administrative expenses during the nine months ended September 30, 2023 and 2022, included gains of $0.1 million and $1.2 million, respectively, related to undesignated foreign exchange forward derivative instruments.
Interest Rate Derivative Instruments
From time to time, the Company enters into interest rate swap contracts to reduce interest rate risk related to floating rate debt. Under the contracts, the Company pays fixed and receives variable rate interest, in effect converting a portion of its floating rate debt to fixed rate debt. Interest rate swap contracts are accounted for as cash flow hedges. As of September 30, 2023, the notional value of the Company's outstanding interest rate swap contracts was $100.0 million. As of December 31, 2022, there were no interest rate swap contracts outstanding.
Impact on Financial Statements
The fair value of hedge instruments recognized on the unaudited condensed consolidated balance sheets was as follows:
(in thousands)September 30,December 31,
Balance Sheet LocationHedge Instrument Type20232022
Prepaid and other assetsForeign exchange forward$9,495 $7,393 
Interest rate swap997 — 
Other assetsForeign exchange forward113 1,341 
Interest rate swap175 — 
Accrued expenses and other liabilitiesForeign exchange forward1,167 4,710 
Other noncurrent liabilitiesForeign exchange forward— 344 
15
The hedge instrument gain recognized in accumulated other comprehensive loss, net of tax was as follows:
 Three months endedNine months ended
 September 30,September 30,
(in thousands)2023202220232022
Type of hedge    
Foreign exchange forward$3,658 $6,106 $6,719 $18,155 
Interest rate swap 432 — 1,601 — 
 Total$4,090 $6,106 $8,320 $18,155 
Gains and losses on derivative instruments designated as cash flow hedges are reclassified from accumulated other comprehensive loss, net of tax at the time the forecasted hedged transaction impacts the statements of operations or at the time the hedge is determined to be ineffective. Based on the current valuation, during the next 12 months the Company expects to reclassify a net gain of $7.7 million related to foreign exchange derivative instruments from accumulated other comprehensive loss, net of tax, into cost of goods sold and a net gain of $1.0 million related to interest rate derivative instruments from accumulated other comprehensive loss, net of tax, into interest expense, net. For further information related to amounts recognized in accumulated other comprehensive loss, net of tax, see Note 12.
The hedge instrument gain recognized on the unaudited condensed consolidated statements of operations was as follows:
 Three months endedNine months ended
 September 30,September 30,
(in thousands)2023202220232022
Location of gain in statements of operations    
Foreign exchange forward:
Cost of goods sold$682 $2,535 $6,975 $5,476 
Selling, general and administrative (1)
1,106 1,779 1,463 4,737 
Total $1,788 $4,314 $8,438 $10,213 
Interest Rate Swap:
Interest expense, net$241 $— $429 $— 
Total$241 $— $429 $— 
_______________________________________________________________________________
(1)    Relates to net gains on foreign exchange forward contracts derived from previously designated cash flow hedges.
Credit Risk
The Company enters into derivative contracts with major financial institutions with investment grade credit ratings and is exposed to credit losses in the event of non-performance by these financial institutions. This credit risk is generally limited to the unrealized gains in the derivative contracts. However, the Company monitors the credit quality of these financial institutions, as well as its own credit quality, and considers the risk of counterparty default to be minimal.

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7. Fair Value Measurements
Certain assets and liabilities are carried at fair value under U.S. GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.
Assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 were as follows:
 Fair Value Measurements as of 
 September 30, 2023 using: 
(in thousands)Level 1Level 2Level 3Balance Sheet Location
Assets    
Rabbi trust$3,954 $— $— Prepaid and other assets
Foreign exchange derivative instruments— 9,495 — Prepaid and other assets
Interest rate derivative instruments— 997 — Prepaid and other assets
Deferred compensation program assets651 — — Other assets
Foreign exchange derivative instruments— 113 — Other assets
Interest rate derivative instruments— 175 — Other assets
Total assets$4,605 $10,780 $—  
Liabilities    
Foreign exchange derivative instruments$— $1,167 $— Accrued expenses and other liabilities
Deferred compensation program liabilities651 — — Other noncurrent liabilities
Total liabilities$651 $1,167 $—  
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 were as follows:
 Fair Value Measurements as of 
 December 31, 2022 using: 
(in thousands)Level 1Level 2Level 3Balance Sheet Location
Assets    
Rabbi trust$3,940 $— $— Prepaid and other assets
Foreign exchange derivative instruments— 7,393 — Prepaid and other assets
Deferred compensation program assets631 — — Other assets
Foreign exchange derivative instruments— 1,341 — Other assets
Total assets$4,571 $8,734 $—  
Liabilities    
Foreign exchange derivative instruments$— $4,758 $— Accrued expenses and other liabilities
Deferred compensation program liabilities631 — — Other noncurrent liabilities
Foreign exchange derivative instruments— 344 — Other noncurrent liabilities
Total liabilities$631 $5,102 $—  
Rabbi trust assets are used to fund certain retirement obligations of the Company. The assets underlying the Rabbi trust are equity and fixed income exchange-traded funds.
Deferred compensation program assets and liabilities represent a program where select employees could defer compensation until termination of employment. Effective July 29, 2011, this program was amended to cease all employee compensation deferrals and provided for the distribution of all previously deferred employee compensation. The program remains in effect with respect to the value attributable to the employer match contributed prior to July 29, 2011.
Foreign exchange derivative instruments are foreign exchange forward contracts primarily used to limit currency risk that would otherwise result from changes in foreign exchange rates (Note 6). The Company uses the mid-price of foreign exchange forward rates as of the close of business on the valuation date to value each foreign exchange forward contract at each reporting period.
Interest rate derivative instruments are interest rate swap contracts used to reduce interest rate risk related to the Company's floating rate debt (Note 6). The valuation for the interest rate swap is calculated as the net of the discounted future cash flows of the pay and receive legs of the swap. Mid-market interest rates on the valuation date are used to create the forward curve for floating legs and discount curve.
17
8. Pension and Other Postretirement Benefits
Components of net periodic benefit cost were as follows: 
 Pension BenefitsPostretirement Benefits
 Three months ended September 30,
(in thousands)2023202220232022
Components of net periodic benefit cost    
Service cost$1,411 $1,954 $107 $141 
Interest cost2,832 2,204 166 89 
Expected return on plan assets(1,966)(1,882)— — 
Settlements— 685 — — 
Amortization of net loss (gain)25 989 (223)(120)
Amortization of prior service cost (credit)45 66 (35)(35)
Net periodic benefit cost$2,347 $4,016 $15 $75 
Components of net periodic benefit cost were as follows: 
 Pension BenefitsPostretirement Benefits
 Nine months ended September 30,
(in thousands)2023202220232022
Components of net periodic benefit cost    
Service cost$4,261 $5,953 $322 $422 
Interest cost8,491 6,655 497 265 
Expected return on plan assets(5,894)(5,644)— — 
Settlements(27)685 — — 
Amortization of net loss (gain)70 2,966 (670)(351)
Amortization of prior service cost (credit)137 203 (103)(103)
Net periodic benefit cost$7,038 $10,818 $46 $233 
The non-service cost components of net periodic benefit cost are included in other expense, net in the unaudited condensed consolidated statements of operations.

9. Income Taxes
Income tax expense decreased $4.5 million to $11.3 million for the three months ended September 30, 2023 compared to $15.8 million for the three months ended September 30, 2022. The Company’s effective tax rate ("ETR") was 16.5% for the three months ended September 30, 2023 compared to 22.9% for the three months ended September 30, 2022. Income tax expense decreased $0.1 million to $52.7 million for the nine months ended September 30, 2023 compared to $52.8 million for the nine months ended September 30, 2022. The Company’s ETR was 19.0% for the nine months ended September 30, 2023 compared to 20.6% for the nine months ended September 30, 2022.
The ETR for the three and nine months ended September 30, 2023 differed from the U.S. statutory tax rate primarily due to the impact of the U.S. deduction for foreign derived intangible income and federal and state tax credits, partially offset by the U.S. taxation of foreign income and the Company's geographic mix of income. The ETR for the three and nine months ended September 30, 2022 differed from the U.S. statutory tax rate primarily due to the impact of the U.S. deduction for foreign derived intangible income and federal and state tax credits, as well as the U.S. taxation of foreign income and the geographic mix of income earned by the Company's international subsidiaries.
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10. Common Stock
Dividends
The Company declared dividends per common share, including DERs (Note 11), during the periods presented as follows:
Dividends per Common Share
Amount
(in thousands)
2023:
Third Quarter$0.195 $13,098 
Second Quarter0.195 13,667 
First Quarter0.195 13,629 
Total dividends declared in 2023$0.585 $40,394 
2022:
Fourth Quarter$0.180 $12,986 
Third Quarter0.180 13,192 
Second Quarter0.180 13,400 
First Quarter0.180 13,473 
Total dividends declared in 2022$0.720 $53,051 
During the fourth quarter of 2023, the Company's Board of Directors declared a dividend of $0.195 per share of common stock to shareholders of record as of December 1, 2023 and payable on December 15, 2023.
Share Repurchase Program
As of September 30, 2023, the Board of Directors had authorized the Company to repurchase up to $700.0 million of its issued and outstanding common stock. Share repurchases may be effected from time to time in open market or privately negotiated transactions, including transactions with affiliates, with the timing of purchases and the amount of stock purchased generally determined at the discretion of the Company consistent with the Company's general working capital needs and within the constraints of the Company’s credit agreement.
On November 8, 2021, the Company entered into an agreement with Magnus Holdings Co., Ltd. (“Magnus”), a wholly-owned subsidiary of Fila Holdings Corp., to purchase from Magnus an equal amount of its common stock as it purchases on the open market, up to an aggregate of $37.5 million, at the same weighted average per share price (the "2021 Agreement"). In relation to the 2021 Agreement, on January 24, 2022, the Company purchased 699,819 shares of its common stock for an aggregate of $37.5 million from Magnus, in satisfaction of its obligations under the 2021 Agreement.
On June 16, 2022, the Company entered into an agreement with Magnus to purchase from Magnus an equal amount of its common stock as it purchases on the open market over the period of time from July 1, 2022 through January 13, 2023, up to an aggregate of $75.0 million, at the same weighted average per share price (the "2022 Agreement"). On August 30, 2022, the Company amended and restated the 2022 Agreement to increase the aggregate dollar amount of shares of its common stock that it will purchase from Magnus from $75.0 million to $100.0 million, (the "Amended and Restated 2022 Agreement"). In relation to this agreement, the Company recorded a share repurchase liability of $92.6 million for 2,000,839 shares of common stock, which was included in accrued expenses and other liabilities and treasury stock on the consolidated balance sheet as of December 31, 2022. Between January 1, 2023 and January 13, 2023, the Company purchased an additional 167,689 shares of its common stock on the open market for an aggregate of $7.4 million, bringing the cumulative total open market purchases since the inception of the 2022 Agreement to $100.0 million. As a result, on January 23, 2023, the Company purchased 2,168,528 shares of its common stock from Magnus for an aggregate of $100.0 million, in satisfaction of its obligation under the Amended and Restated 2022 Agreement.
On June 9, 2023, the Company entered into a new agreement with Magnus to purchase from Magnus an equal amount of its common stock as it purchases on the open market over the period of time from June 12, 2023 through October 27, 2023, up to an aggregate of $100.0 million, at the same weighted average per share price (the "2023 Agreement"). In relation to this agreement, the Company recorded a share repurchase liability of $79.8 million for 1,439,400 shares of common stock, which was included in accrued expenses and other liabilities and treasury stock on the consolidated balance sheet as of September 30, 2023.
19
The Company's share repurchase activity for the periods presented was as follows:
Three months ended September 30,Nine months ended September 30,
(in thousands, except share and per share amounts)2023202220232022
Shares repurchased in the open market:
Shares repurchased 1,153,400 869,368 1,982,289 2,283,573 
Average price$56.28 $47.82 $52.98 $44.78 
Aggregate value $64,918 $41,577 $105,030 $102,252 
Shares repurchased from Magnus:
Shares repurchased— — 2,168,528 699,819 
Average price (1)
$— $— $46.11 $53.59 
Aggregate value$— $— $100,001 $37,501 
Total shares repurchased:
Shares repurchased1,153,400 869,368 4,150,817 2,983,392 
Average price$56.28 $47.82 $49.40 $46.84 
Aggregate value$64,918 $41,577 $205,031 $139,753 
___________________________________
(1)    In accordance with the share repurchase agreements, shares purchased from Magnus are accrued for at the same weighted average price as those purchased on the open market, as if the purchase from Magnus had occurred on the same day. As such, the average price of Magnus repurchases during any given period will differ from open market repurchases due to the settlement of the previously recorded share repurchase liability, as well as open market purchases made after the completion of the Magnus Share repurchase agreements.
As of September 30, 2023, the Company had $202.4 million remaining under the current share repurchase authorization, including $100.0 million related to the 2023 Agreement. This program will remain in effect until completed or until terminated by the Board of Directors.
Between October 1, 2023 and October 27, 2023, the Company purchased an additional 385,594 shares of its common stock on the open market for an aggregate of $20.2 million, bringing the cumulative total open market purchases since the inception of the 2023 Agreement to $100.0 million. As a result, the Company expects to purchase 1,824,994 shares of its common stock from Magnus for an aggregate of $100.0 million on November 3, 2023, in satisfaction of its obligation under the 2023 Agreement.

11. Equity Incentive Plans
Under the Acushnet Holdings Corp. 2015 Omnibus Incentive Plan (“2015 Plan”), the Company may grant stock options, stock appreciation rights, restricted shares of common stock, restricted stock units ("RSUs"), performance stock units ("PSUs") and other share-based and cash-based awards to members of the Board of Directors, officers, employees, consultants and advisors of the Company. As of September 30, 2023, the only awards granted under the 2015 Plan were RSUs and PSUs.
Restricted Stock and Performance Stock Units
RSUs granted to members of the Board of Directors vest immediately into shares of common stock. RSUs granted to Company officers generally vest over three years, with one-third of each grant vesting annually, subject to the recipient's continued employment with the Company. RSUs granted to other employees, consultants and advisors of the Company vest in accordance with the terms of the grants, generally either over three years or, beginning in 2022, with one-third of each grant vesting annually, subject to the recipient’s continued service to the Company. PSUs granted to Company officers and other employees vest based upon the Company's performance against specified metrics, generally over a three-year performance period, subject to the recipient's continued service to the Company. At the end of the performance period, the number of shares of common stock that could be issued is determined based upon the Company's performance against these metrics. The number of shares that could be issued can range from 0% to 200% of the recipient's target award. Recipients of the awards granted under the 2015 Plan may elect to defer receipt of all or any portion of any shares of common stock issuable upon vesting to a future date elected by the recipient.
All RSUs and PSUs granted under the 2015 Plan have DERs, which entitle holders of RSUs and PSUs to the same dividend value per share as holders of common stock and can be paid in either cash or common stock. DERs are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs and PSUs. DERs are paid when the underlying shares of common stock are delivered.
20
A summary of the Company’s RSUs and PSUs as of September 30, 2023 and changes during the nine months then ended is presented below: 
 Weighted-Weighted-
 NumberAverageNumberAverage
 of RSUsFair Value RSUs
of PSUs (3)
Fair Value PSUs
Outstanding as of December 31, 2022944,695 $37.48 529,366 $36.30 
Granted469,749 47.95 196,572 48.22 
Vested (1)(2)
(520,805)31.66 (231,127)25.73 
Forfeited(19,337)47.00 (12,377)41.78 
Outstanding as of September 30, 2023874,302 $46.36 482,434 $46.08 

_______________________________________________________________________________
(1)    Includes 83,664 shares of common stock related to RSU's that were not delivered as of September 30, 2023.
(2)    Based upon the Company’s level of achievement of the applicable performance metrics, the recipients of the 231,127 PSUs that vested during the nine months ended September 30, 2023, were entitled to receive 460,684 shares of common stock. As of September 30, 2023, there were 229,205 shares of common stock that had not been delivered in connection with the vesting of these PSUs.
(3)    Number of PSUs reflect 100% of the target level grant and may not be indicative of the performance level expected to be achieved.
Compensation expense recorded related to RSUs and PSUs in the unaudited condensed consolidated statements of operations was as follows:
 Three months endedNine months ended
September 30,September 30,
(in thousands)2023202220232022
RSUs$4,012 $3,149 $12,966 $10,101 
PSUs1,129 2,524 7,911 7,566 
The remaining unrecognized compensation expense related to unvested RSUs and unvested PSUs was $24.1 million and $12.0 million, respectively, as of September 30, 2023, and is expected to be recognized over the related weighted average period of 1.4 years and 1.9 years, respectively.
A summary of shares of common stock issued related to the 2015 Plan, including the impact of any DERs issued in common stock, is presented below:
Nine months endedNine months ended
 September 30, 2023September 30, 2022
RSUsPSUsRSUsPSUs
Shares of common stock issued472,766 231,580 525,029 188,527 
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations
(128,291)(91,842)(159,854)(87,215)
Net shares of common stock issued344,475 139,738 365,175 101,312 
Cumulative undelivered shares of common stock457,703 420,447 407,173 191,242 
Compensation Expense
The allocation of share-based compensation expense in the unaudited condensed consolidated statements of operations was as follows:
 Three months endedNine months ended
September 30,September 30,
(in thousands)2023202220232022
Cost of goods sold$340 $342 $1,095 $984 
Selling, general and administrative4,629 5,085 18,875 15,998 
Research and development336 410 1,399 1,177 
Total compensation expense before income tax5,305 5,837 21,369 18,159 
Income tax benefit945 1,219 4,304 3,744 
Total compensation expense, net of income tax$4,360 $4,618 $17,065 $14,415 
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12. Accumulated Other Comprehensive Loss, Net of Tax
Accumulated other comprehensive loss, net of tax consists of foreign currency translation adjustments, unrealized gains and losses from derivative instruments designated as cash flow hedges (Note 6) and pension and other postretirement adjustments (Note 8).
The components of and adjustments to accumulated other comprehensive loss, net of tax, were as follows:
 ForeignInterestAccumulated
 ForeignExchangeRate SwapPension andOther
CurrencyDerivativeDerivativeOtherComprehensive
(in thousands)TranslationInstrumentsInstrumentsPostretirementLoss, Net of Tax
Balance as of December 31, 2022$(97,855)$5,598 $— $(17,411)$(109,668)
Other comprehensive (loss) income before reclassifications(13,053)6,719 1,601 (319)(5,052)
Amounts reclassified from accumulated other comprehensive loss, net of tax— (6,975)(429)(593)(7,997)
Tax benefit (expense)— 17 (286)216 (53)
Balance as of September 30, 2023$(110,908)$5,359 $886 $(18,107)$(122,770)

13. Net Income per Common Share
The following is a computation of basic and diluted net income per common share attributable to Acushnet Holdings Corp.:
 Three months endedNine months ended
 September 30,September 30,
(in thousands, except share and per share amounts)2023202220232022
Net income attributable to Acushnet Holdings Corp.$57,307 $51,837 $225,237 $199,336 
Weighted average number of common shares:
Basic66,898,142 71,706,824 67,812,790 72,701,647 
RSUs328,411 390,826 290,274 336,486 
PSUs116,707 236,748 104,958 171,586 
Diluted67,343,260 72,334,398 68,208,022 73,209,719 
Net income per common share attributable to Acushnet Holdings Corp.:
Basic$0.86 $0.72 $3.32 $2.74 
Diluted$0.85 $0.72 $3.30 $2.72 
Net income per common share attributable to Acushnet Holdings Corp. was calculated using the treasury stock method.
The Company’s potential dilutive securities for the three and nine months ended September 30, 2023 and 2022 include RSUs and PSUs. PSUs vest based upon achievement of performance targets and are excluded from the diluted shares outstanding unless the performance targets have been met as of the end of the applicable reporting period regardless of whether such performance targets are probable of achievement.
The following securities have been excluded from the calculation of diluted weighted-average common shares outstanding as their impact was determined to be anti-dilutive:
 Three months endedNine months ended
 September 30,September 30,
 2023202220232022
RSUs— 852 86,499 126,262 
22
14. Segment Information
The Company’s operating segments are based on how the Chief Operating Decision Maker (“CODM”) makes decisions about assessing performance and allocating resources. The Company has four reportable segments that are organized on the basis of product categories. These segments include Titleist golf balls, Titleist golf clubs, Titleist golf gear and FootJoy golf wear.
The CODM primarily evaluates performance using segment operating income (loss). Segment operating income (loss) includes directly attributable expenses and certain shared costs of corporate administration that are allocated to the reportable segments, but excludes interest expense, net, restructuring charges, the non-service cost component of net periodic benefit cost, transaction fees and other non-operating gains and losses as the Company does not allocate these to the reportable segments. The CODM does not evaluate a measure of assets when assessing performance.
Results shown for the three and nine months ended September 30, 2023 and 2022 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. There are no intersegment transactions.
Information by reportable segment and a reconciliation to reported amounts are as follows:
Three months ended September 30,Nine months ended September 30,
(in thousands)2023202220232022
Net sales  
Titleist golf balls$192,557 $181,243 $622,125 $546,374 
Titleist golf clubs181,045 153,877 549,846 478,880 
Titleist golf gear47,657 59,194 184,571 172,473 
FootJoy golf wear136,669 131,694 500,174 507,133 
Other35,453 32,238 112,318 118,072 
Total net sales$593,381 $558,246 $1,969,034 $1,822,932 
Segment operating income (loss)  
Titleist golf balls$43,770 $38,281 $131,591 $100,920 
Titleist golf clubs36,509 26,949 118,455 88,236 
Titleist golf gear788 6,430 26,657 20,276 
FootJoy golf wear(1,469)1,919 32,927 45,256 
Other1,693 3,618 12,606 21,212 
Total segment operating income81,291 77,197 322,236 275,900 
Reconciling items:  
Interest expense, net(9,389)(4,534)(30,234)(7,902)
Non-service cost component of net periodic benefit cost(844)(1,996)(2,501)(4,676)
Other(2,760)(1,546)(11,746)(7,126)
Total income before income tax$68,298 $69,121 $277,755 $256,196 
Information as to the Company’s operations in different geographical areas is presented below. Net sales are categorized based on the location in which the sale originates.
Three months ended September 30,Nine months ended September 30,
(in thousands)2023202220232022
United States$352,463 $327,639 $1,123,766 $974,187 
EMEA (1)
75,643 70,614 266,502 274,840 
Japan39,035 34,364 118,183 118,554 
Korea65,652 69,919 241,267 254,089 
Rest of World60,588 55,710 219,316 201,262 
Total net sales$593,381 $558,246 $1,969,034 $1,822,932 
_______________________________________________________________________________
(1) Europe, the Middle East and Africa ("EMEA")
23
15. Commitments and Contingencies
Purchase Obligations
During the normal course of its business, the Company enters into agreements to purchase goods and services, including purchase commitments for advertising (including media placement and production costs), finished goods inventory, capital expenditures and endorsement arrangements with professional golfers.
The Company's purchase obligations as of September 30, 2023 were as follows:
 Payments Due by Period
 Remainder of     
(in thousands)20232024202520262027Thereafter
Purchase obligations (1)
$231,314 $64,231 $9,383 $2,482 $2,417 $9,650 
_______________________________________________________________________________
(1)    The reported amounts exclude those liabilities included on the unaudited condensed consolidated balance sheet as of September 30, 2023.
Litigation
The Company and its subsidiaries are party to lawsuits associated with the normal conduct of their businesses and operations. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that some of these actions could be decided unfavorably. Consequently, the Company 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 and has not recorded a liability related to potential losses.

16. Other Business Developments
In January 2023, the Company acquired certain trademarks from West Coast Trends, Inc., an industry leader specializing in Club Glove premium performance golf travel products, for $25.2 million including cash consideration of $22.2 million and contingent consideration of $3.0 million, which was subsequently paid in 2023. The trademarks acquired were included in the Company's Titleist golf gear reporting segment and will be amortized over a weighted average life of 10 years.
On November 4, 2022, the Company completed the acquisition of an 80% interest in certain assets and liabilities of TPI EDU, LLC, Onbase University, LP and Racquetfit, LP, (together known as "TPI") for cash consideration of $18.4 million. As part of the acquisition, the Company recorded a redeemable noncontrolling interest of $4.6 million (Note 1). TPI is a leading supplier of online courses, certifications, educational programs, live seminars, and other educational services in the golf, baseball and tennis industries. The results of TPI have been included in the Company's Titleist golf clubs reporting segment since the date of acquisition (Note 14).
On April 1, 2022, the Company acquired the outstanding equity interest in PG Golf LLC for $5.0 million, including cash consideration of $3.6 million and contingent consideration of $1.4 million, which was included in other noncurrent liabilities on the unaudited condensed consolidated balance sheet as of September 30, 2023 and December 31, 2022.


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ITEM 2.      MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion contains management’s discussion and analysis of our financial condition and results of operations and should be read together with our unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this report. This discussion contains forward-looking statements that reflect our plans, estimates and beliefs and involve numerous risks and uncertainties, including but not limited to those described in “Part II, Item 1A. Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q and in our other filings with the Securities and Exchange Commission (“SEC”). Actual results may differ materially from those contained in any forward-looking statements. You should carefully read “Special Note Regarding Forward-Looking Statements” following the Table of Contents. Unless otherwise noted, the figures in the following discussion are unaudited.
Overview
We are the global leader in the design, development, manufacture and distribution of performance-driven golf products, which are widely recognized for their quality excellence. Today, we are the steward of two of the most revered brands in golf - Titleist, one of golf’s leading performance equipment brands, and FootJoy, one of golf’s leading performance wearable brands.
Our target market is dedicated golfers, who are the cornerstone of the worldwide golf industry. These dedicated golfers are avid and skill-biased, prioritize performance and commit the time, effort and money to improve their game. We believe our focus on innovation and process excellence yields golf products that represent superior performance and consistent product quality, which are the key attributes sought after by dedicated golfers. Many of the game's professional players, who represent the most dedicated golfers, prefer our products, thereby validating our performance and quality promise, while also driving brand awareness. We seek to leverage a pyramid of influence product and promotion strategy, whereby our products are the most played by the world's best players, creating aspirational appeal for a broad range of golfers who want to emulate the performance of the game's best players.
We believe our differentiated focus on performance and quality excellence, enduring connections with dedicated golfers, and favorable and market‑differentiating mix of consumable and durable products have been the key drivers of our solid financial performance.
Our net sales are diversified by both product category and mix, as well as geography. Our product categories include golf balls, golf clubs, wedges and putters, golf shoes, golf gloves, golf gear and golf outerwear and apparel. Our product portfolio contains a favorable mix of consumable products, which we consider to be golf balls and golf gloves, and more durable products, which we consider to be golf clubs, golf shoes, golf gear and golf outerwear and apparel. Our net sales are also diversified by geography with a substantial majority of our net sales generated in five countries: the United States, Japan, Korea, the United Kingdom and Canada. We have the following reportable segments: Titleist golf balls; Titleist golf clubs; Titleist golf gear; and FootJoy golf wear.
Key Performance Measures
We use various financial metrics to measure and evaluate our business, including, among others: (i) net sales on a constant currency basis, (ii) Adjusted EBITDA on a consolidated basis, (iii) Adjusted EBITDA margin on a consolidated basis and (iv) segment operating income (loss).
Since a significant percentage of our net sales are generated outside of the United States, we use net sales on a constant currency basis to evaluate the sales performance of our business in period over period comparisons and for forecasting our business going forward. Constant currency information allows us to estimate what our sales performance would have been without changes in foreign currency exchange rates. This information is calculated by taking the current period local currency net sales and translating them into U.S. dollars based upon the foreign currency exchange rates for the applicable comparable prior period. This constant currency information should not be considered in isolation or as a substitute for any measure derived in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). Our presentation of constant currency information may not be consistent with the manner in which similar measures are derived or used by other companies.
We primarily use Adjusted EBITDA on a consolidated basis to evaluate the effectiveness of our business strategies, assess our consolidated operating performance and make decisions regarding pricing of our products, go to market execution and costs to incur across our business. We present Adjusted EBITDA as a supplemental measure of our operating performance because it excludes the impact of certain items that we do not consider indicative of our ongoing operating performance. We define Adjusted EBITDA in a manner consistent with the term “Consolidated EBITDA” as it is defined in our credit agreement.
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Adjusted EBITDA represents net income (loss) attributable to Acushnet Holdings Corp. plus interest expense, net, income tax expense (benefit), depreciation and amortization and other items defined in the agreement, including: share-based compensation expense; restructuring and transformation costs; certain transaction fees; extraordinary, unusual or non-recurring losses or charges; indemnification expense (income); certain pension settlement costs; certain other non-cash (gains) losses, net and the net income (loss) relating to noncontrolling interests. Adjusted EBITDA is not a measurement of financial performance under U.S. GAAP. It should not be considered an alternative to net income (loss) attributable to Acushnet Holdings Corp. as a measure of our operating performance or any other measure of performance derived in accordance with U.S. GAAP. In addition, Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items, or affected by similar non-recurring items. Adjusted EBITDA has limitations as an analytical tool, and you should not consider such measure either in isolation or as a substitute for analyzing our results as reported under U.S. GAAP. Our definition and calculation of Adjusted EBITDA is not necessarily comparable to other similarly titled measures used by other companies due to different methods of calculation. For a reconciliation of Adjusted EBITDA to net income attributable to Acushnet Holdings Corp., see “—Results of Operations” below.
We also use Adjusted EBITDA margin on a consolidated basis, which measures our Adjusted EBITDA as a percentage of net sales, because our management uses it to evaluate the effectiveness of our business strategies, assess our consolidated operating performance and make decisions regarding pricing of our products, go to market execution and costs to incur across our business. We present Adjusted EBITDA margin as a supplemental measure of our operating performance because it excludes the impact of certain items that we do not consider indicative of our ongoing operating performance. Adjusted EBITDA margin is not a measurement of financial performance under U.S. GAAP. It should not be considered an alternative to any measure of performance derived in accordance with U.S. GAAP. In addition, Adjusted EBITDA margin should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items, or affected by similar non-recurring items. Adjusted EBITDA margin has limitations as an analytical tool, and you should not consider such measure either in isolation or as a substitute for analyzing our results as reported under U.S. GAAP. Our definition and calculation of Adjusted EBITDA margin is not necessarily comparable to other similarly titled measures used by other companies due to different methods of calculation.
Lastly, we use segment operating income (loss) to evaluate and assess the performance of each of our reportable segments and to make budgeting decisions. Segment operating income (loss) includes directly attributable expenses and certain shared costs of corporate administration that are allocated to the reportable segments, but excludes interest expense, net; restructuring charges; the non-service cost component of net periodic benefit cost; transaction fees and other non-operating gains and losses as we do not allocate these to the reportable segments.
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Results of Operations
The following table sets forth, for the periods indicated, our results of operations. 
 Three months endedNine months ended
 September 30,September 30,
(in thousands)2023202220232022
Net sales$593,381 $558,246 $1,969,034 $1,822,932 
Cost of goods sold284,859 263,251 926,317 867,332 
Gross profit308,522 294,995 1,042,717 955,600 
Operating expenses:        
Selling, general and administrative210,166 202,418 674,720 637,276 
Research and development16,239 14,619 47,286 42,533 
Intangible amortization3,512 1,948 10,712 5,865 
Income from operations78,605 76,010 309,999 269,926 
Interest expense, net9,389 4,534 30,234 7,902 
Other expense, net918 2,355 2,010 5,828 
Income before income taxes68,298 69,121 277,755 256,196 
Income tax expense11,252 15,797 52,726 52,786 
Net income57,046 53,324 225,029 203,410 
Less: Net loss (income) attributable to noncontrolling interests261 (1,487)208 (4,074)
Net income attributable to Acushnet Holdings Corp.$57,307 $51,837 $225,237 $199,336 
Adjusted EBITDA:        
Net income attributable to Acushnet Holdings Corp.$57,307 $51,837 $225,237 $199,336 
Interest expense, net9,389 4,534 30,234 7,902 
Income tax expense11,252 15,797 52,726 52,786 
Depreciation and amortization12,807 10,229 38,181 30,894 
Share-based compensation5,305 5,837 21,369 18,159 
Other extraordinary, unusual or non-recurring items, net (1)
2,991 (3,180)10,098 (155)
Net (loss) income attributable to noncontrolling interests(261)1,487 (208)4,074 
Adjusted EBITDA$98,790 $86,541 $377,637 $312,996 
Adjusted EBITDA margin16.6 %15.5 %19.2 %17.2 %
________________________
(1) For the three and nine months ended September 30, 2023, includes costs associated with the optimization of our distribution and custom fulfillment capabilities.



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Three Months Ended September 30, 2023 Compared to the Three Months Ended September 30, 2022
Net sales by reportable segment is summarized as follows:
 Three months ended  Constant Currency
 September 30,Increase/(Decrease)Increase/(Decrease)
(in millions)20232022$ change% change$ change% change
Titleist golf balls$192.6 $181.2 $11.4 6.3 %$11.2 6.2 %
Titleist golf clubs181.0 153.9 27.1 17.6 %27.6 17.9 %
Titleist golf gear47.7 59.2 (11.5)(19.4)%(11.8)(19.9)%
FootJoy golf wear136.7 131.7 5.0 3.8 %4.5 3.4 %
Net sales information by region is summarized as follows:
 Three months ended  Constant Currency
 September 30,Increase/(Decrease)Increase/(Decrease)
(in millions)20232022$ change% change$ change% change
United States$352.5 $327.6 $24.9 7.6 %$24.9 7.6 %
EMEA (1)
75.6 70.6 5.0 7.1 %1.1 1.6 %
Japan39.0 34.4 4.6 13.4 %6.6 19.2 %
Korea65.7 69.9 (4.2)(6.0)%(5.5)(7.9)%
Rest of world60.6 55.7 4.9 8.8 %6.6 11.8 %
Total net sales$593.4 $558.2 $35.2 6.3 %$33.7 6.0 %
_______________________________________________________________________________
(1) Europe, the Middle East and Africa ("EMEA")
Segment operating income (loss) by reportable segment is summarized as follows:
 Three months ended  
(in millions)September 30,Increase/(Decrease)
Segment operating income (loss)20232022$ change% change
Titleist golf balls$43.8 $38.3 $5.5 14.4 %
Titleist golf clubs36.5 26.9 9.6 35.7 %
Titleist golf gear0.8 6.4 (5.6)(87.5)%
FootJoy golf wear(1.5)1.9 (3.4)(178.9)%

For the three months ended September 30, 2023, net sales increased 6.3%, or 6.0% on a constant currency basis, as compared to the three months ended September 30, 2022. This increase was driven primarily by higher sales volumes in Titleist golf clubs and higher average selling prices in Titleist golf balls and FootJoy golf wear, mainly apparel, partially offset by lower sales volumes in Titleist golf gear.
The increase in net sales in the United States was primarily driven by increases of $13.3 million in Titleist golf clubs, $9.7 million in Titleist golf balls and $8.4 million in FootJoy golf wear, partially offset by a decrease of $6.9 million in Titleist golf gear. The increase in Titleist golf clubs was driven by higher sales volumes associated with the launches of our T-Series irons, TSR hybrids and Scotty Cameron Super Select putters, partially offset by lower sales volumes of drivers, fairways and wedges. The increase in Titleist golf balls was primarily driven by higher average selling prices of our latest generation Pro V1 and Pro V1x golf balls. The increase in FootJoy golf wear was primarily a result of higher average selling prices of apparel and footwear. The decrease in Titleist golf gear primarily resulted from lower sales volumes of headwear and golf bags due to strong sales volume in the third quarter of 2022 as supply chain and fulfillment constraints recovered from the first quarter of 2022.

Net sales in regions outside the United States increased 4.5%, or 3.8% on a constant currency basis. In Japan and Rest of World, the increase in net sales was primarily due to higher sales volumes in Titleist golf clubs. In EMEA, the increase in net sales was primarily due to higher sales volumes of products that are not allocated to one of our four reportable segments and higher sales volumes in Titleist golf clubs. This increase in EMEA was partially offset by lower net sales in FootJoy golf wear and Titleist golf gear, mainly in footwear and golf bags, respectively. In Korea, the decrease in net sales was primarily due to lower sales volumes of Titleist golf gear, products that are not allocated to one of our four reportable segments and FootJoy golf wear, partially offset by net sales increases in Titleist golf clubs and Titleist golf balls.
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Gross Profit
Gross profit increased $13.5 million for the three months ended September 30, 2023 compared to the three months ended September 30, 2022. Gross margin decreased to 52.0% for the three months ended September 30, 2023 compared to 52.8% for the three months ended September 30, 2022. The increase in gross profit primarily resulted from an increase of $16.8 million in Titleist golf clubs primarily due to higher sales volumes and lower royalty expense, an increase of $8.7 million in Titleist golf balls primarily due to higher average selling prices and lower inbound freight across all reportable segments. The increase in gross profit was partially offset by a decrease of $5.2 million in Titleist golf gear due to the lower sales volumes discussed previously and a decrease of $4.9 million in FootJoy golf wear primarily due to unfavorable manufacturing overhead absorption and increased promotional activity in footwear. The decrease in gross margin was primarily due to the FootJoy golf wear factors discussed above, offset primarily by lower inbound freight costs across all reportable segments.
Selling, General and Administrative Expenses
SG&A expenses increased $7.8 million for the three months ended September 30, 2023 compared to the three months ended September 30, 2022. This increase was primarily a result of an increase of $5.9 million in advertising and promotional expenses, $3.0 million in selling expense and $2.8 million of costs related to the optimization of our distribution and custom fulfillment capabilities, partially offset by a decrease of $2.6 million in administrative expense. The increase in advertising and promotional expenses was primarily in Titleist golf clubs and Titleist golf balls. The increase in selling expense was primarily due to employee-related expenses, partially offset by lower retail commission expense in Korea. The decrease in administrative expense was primarily due to lower information technology-related expenses, partially offset by an increase in employee-related expenses. Additionally, SG&A includes a decrease of $5.3 million in foreign currency transaction losses.
Research and Development
R&D expenses increased $1.6 million for the three months ended September 30, 2023 compared to the three months ended September 30, 2022, primarily as a result of an increase in employee-related expenses.
Intangible Amortization
Intangible amortization expense increased $1.6 million for the three months ended September 30, 2023 compared to the three months ended September 30, 2022, primarily as a result of the acquisition of trademarks related to our Titleist golf clubs and Titleist golf gear businesses in the fourth quarter of 2022 and the first quarter of 2023, respectively.
Interest Expense, net
Interest expense, net increased $4.9 million for the three months ended September 30, 2023 compared to the three months ended September 30, 2022 primarily due to an increase in borrowings and interest rates.
Other Expense, net
Other expense, net decreased $1.5 million for the three months ended September 30, 2023 compared to the three months ended September 30, 2022 primarily due to a decrease in the non-service cost component of net periodic benefit expense.
Income Tax Expense
Income tax expense decreased $4.5 million for the three months ended September 30, 2023 compared to the three months ended September 30, 2022. Our effective tax rate (“ETR”) was 16.5% for the three months ended September 30, 2023 compared to 22.9% for the three months ended September 30, 2022. The change in the ETR was primarily driven by changes in our jurisdictional mix of earnings.
Segment Results
Titleist Golf Balls Segment
Net sales in our Titleist golf balls segment increased 6.3%, or 6.2% on a constant currency basis, for the three months ended September 30, 2023 compared to the three months ended September 30, 2022, primarily driven by higher average selling prices of our latest generation Pro V1 and Pro V1x golf balls launched in the first quarter of 2023.
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Operating income in our Titleist golf balls segment increased $5.5 million, or 14.4%, compared to the prior year period. The increase in operating income primarily resulted from an increase of $8.7 million in gross profit, partially offset by higher operating expenses of $3.3 million. The increase in gross profit was primarily driven by higher average selling prices and lower inbound freight costs. Operating expenses increased primarily as a result of increases of $2.7 million in advertising and promotional expenses and $1.6 million in selling expense, partially offset by a decrease of $1.6 million in administrative expenses.
Titleist Golf Clubs Segment
Net sales in our Titleist golf clubs segment increased 17.6%, or 17.9% on a constant currency basis, for the three months ended September 30, 2023 compared to the three months ended September 30, 2022. The increase was largely due to higher sales volumes of our T-Series irons launched in the third quarter of 2023 and our TSR hybrids and Scotty Cameron Super Select putters, each launched in the first quarter of 2023. This increase was partially offset by lower sales volumes of drivers, fairways and wedges.
Operating income in our Titleist golf clubs segment increased $9.6 million, or 35.7% compared to the prior year period. The increase in operating income primarily resulted from an increase of $16.8 million in gross profit, partially offset by higher operating expenses of $6.3 million and intangible amortization expense of $0.9 million. The increase in gross profit was primarily driven by higher sales volumes, lower royalty expense and lower inbound freight costs. Operating expenses increased primarily due to increases of $3.1 million, $2.4 million and $1.0 million in advertising and promotional, selling and research and development expenses, respectively, largely due to increased employee-related and new product launch expenses. Intangible amortization expense increased due to the acquisition of trademarks in the fourth quarter of 2022.
Titleist Golf Gear Segment
Net sales in our Titleist golf gear segment decreased 19.4%, or 19.9% on a constant currency basis, for the three months ended September 30, 2023 compared to the three months ended September 30, 2022. The decrease primarily resulted from lower sales volumes of golf bags and headwear due to strong sales volume in the third quarter of 2022 as supply chain and fulfillment constraints recovered from the first quarter of 2022.
Operating income in our Titleist golf gear segment decreased $5.6 million, or 87.5% compared to the prior year period. The decrease in operating income primarily resulted from a decrease of $5.2 million in gross profit. The decrease in gross profit was primarily due to lower sales volumes, partially offset by a decrease in inbound freight costs.
FootJoy Golf Wear Segment
Net sales in our FootJoy golf wear segment increased 3.8%, or 3.4% on a constant currency basis, for the three months ended September 30, 2023 compared to the three months ended September 30, 2022. The increase was primarily due to higher average selling prices in apparel.
Operating income in our FootJoy golf wear segment decreased $3.4 million, or 178.9% compared to the prior year period. The decrease in operating income primarily resulted from lower gross profit of $4.9 million, partially offset by lower operating expenses of $1.5 million. The decrease in gross profit was primarily due to unfavorable manufacturing overhead absorption and increased promotional activity in footwear, partially offset by lower inbound freight costs. Operating expenses decreased primarily as a result of a decrease of $1.3 million in selling expense largely due to lower retail commission expense in Korea and lower third party distribution expense.

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Nine Months Ended September 30, 2023 Compared to the Nine Months Ended September 30, 2022
Net sales by reportable segment is summarized as follows: 
 Nine months ended  Constant Currency
 September 30,Increase/(Decrease)Increase/(Decrease)
(in millions)20232022$ change% change$ change% change
Titleist golf balls$622.1 $546.4 $75.7 13.9 %$84.8 15.5 %
Titleist golf clubs549.8 478.9 70.9 14.8 %80.6 16.8 %
Titleist golf gear184.6 172.5 12.1 7.0 %15.5 9.0 %
FootJoy golf wear500.2 507.1 (6.9)(1.4)%3.1 0.6 %
Net sales information by region is summarized as follows: 
 Nine months ended  Constant Currency
 September 30,Increase/(Decrease)Increase/(Decrease)
(in millions)20232022$ change% change$ change% change
United States$1,123.8 $974.2 $149.6 15.4 %$149.6 15.4 %
EMEA266.5 274.8 (8.3)(3.0)%(3.4)(1.2)%
Japan118.2 118.6 (0.4)(0.3)%10.3 8.7 %
Korea241.3 254.1 (12.8)(5.0)%(4.7)(1.8)%
Rest of world219.2 201.2 18.0 8.9 %28.2 14.0 %
Total net sales$1,969.0 $1,822.9 $146.1 8.0 %$180.0 9.9 %
Segment operating income by reportable segment is summarized as follows: 
 Nine months ended  
(in millions)September 30,Increase/(Decrease)
Segment operating income20232022$ change% change
Titleist golf balls$131.6 $100.9 $30.7 30.4 %
Titleist golf clubs118.5 88.2 30.3 34.4 %
Titleist golf gear26.7 20.3 6.4 31.5 %
FootJoy golf wear32.9 45.3 (12.4)(27.4)%

Net Sales
For the nine months ended September 30, 2023 net sales increased 8.0%, or 9.9% on a constant currency basis, compared to the nine months ended September 30, 2022. This increase was driven primarily by higher sales volumes in Titleist golf balls, Titleist golf clubs and Titleist golf gear. A decline in sales volume of products that are not allocated to one of our four reportable segments also contributed to the change in net sales.
The increase in net sales in the United States was primarily the result of increases in Titleist golf balls of $61.5 million, Titleist golf clubs of $54.6 million, FootJoy golf wear of $21.8 million and Titleist golf gear of $8.3 million. The increase in Titleist golf balls was primarily driven by higher sales volumes and higher average selling prices of our latest generation Pro V1 and Pro V1x golf balls. The increase in Titleist golf clubs was primarily driven by higher sales volumes associated with the launches of our T-Series irons, TSR hybrids, drivers and fairways and Scotty Cameron Super Select putters, partially offset by lower sales volumes of second model year wedges. The increase in FootJoy golf wear was primarily driven by higher sales volumes of apparel and higher average selling prices of apparel and footwear, partially offset by lower sales volumes of footwear. The increase in Titleist golf gear was primarily driven by higher sales volumes of golf bags and higher average selling prices in our travel and headwear product categories.
Net sales in regions outside the United States decreased 0.4%, or increased 3.6% on a constant currency basis. Net sales increased in Rest of World and Japan, partially offset by a decrease in Korea and EMEA, on a constant currency basis. The increase in Rest of World was due to sales increases across all reportable segments. In Japan, net sales increased across all reportable segments except FootJoy golf wear. In EMEA, the decrease was due to lower sales volumes in FootJoy golf wear, partially offset by increases in all other reportable segments. In Korea, the decrease was primarily due to lower sales volumes of
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products that are not allocated to one of our four reportable segments and lower sales volumes in FootJoy golf wear, partially offset by increases in all other reportable segments.
Gross Profit
Gross profit increased $87.1 million for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022. Gross margin increased to 53.0% for the nine months ended September 30, 2023 compared to 52.4% for the nine months ended September 30, 2022. The increase in gross profit was primarily the result of increases in Titleist golf clubs of $53.1 million, Titleist golf balls of $45.6 million, and Titleist golf gear of $8.3 million, partially offset by a decrease in FootJoy golf wear of $10.4 million. This increase in gross profit was primarily due to the sales volume changes discussed above, lower inbound freight costs across all reportable segments and lower royalty expense in Titleist golf clubs. The remaining change in gross profit was due to lower sales volumes of products not allocated to one of our four reportable segments. The increase in gross margin was primarily due to the lower inbound freight costs.
Selling, General and Administrative Expenses
SG&A expenses increased $37.4 million for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022. This increase was primarily due to an increase of $17.4 million in advertising and promotional expenses, an increase of $13.7 million in selling expense, $7.9 million of costs related to the optimization of our distribution and custom fulfillment capabilities and includes the favorable impact of changes in foreign currency exchange rates. The increase in advertising and promotional expenses was primarily related to new product launches. The increase in selling expense was primarily due to the higher sales volumes as discussed previously and higher employee-related expenses, partially offset by lower retail commission expense in Korea. Administrative expense was largely flat as increased employee-related expenses were mostly offset by lower information technology-related expenses. Additionally, SG&A includes a decrease of $11.5 million in foreign currency transaction losses, partially offset by a decrease in gains on foreign exchange forward contracts of $4.4 million.
Research and Development
R&D expenses increased $4.8 million for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 primarily as a result of an increase in employee-related expenses.
Intangible Amortization
Intangible amortization expense increased $4.8 million for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 primarily as a result of the acquisition of trademarks related to our Titleist golf club and Titleist golf gear businesses in the fourth quarter of 2022 and the first quarter of 2023, respectively.
Interest Expense, net
Interest expense, net increased $22.3 million for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 primarily due to an increase in borrowings and interest rates.
Other Expense, net
Other expense, net decreased $3.8 million for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 primarily due to a decrease in the non-service cost component of net periodic benefit expense, as well as changes in the fair value of Rabbi trust assets.
Income Tax Expense
Income tax expense decreased $0.1 million for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022. Our ETR was 19.0% for the nine months ended September 30, 2023 compared to 20.6% for the nine months ended September 30, 2022. The change in ETR was primarily driven by changes in our jurisdictional mix of earnings.
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Segment Results
Titleist Golf Balls Segment
Net sales in our Titleist golf balls segment increased 13.9%, or 15.5% on a constant currency basis, for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022. The increase was primarily driven by higher sales volumes and higher average selling prices of our latest generation Pro V1 and Pro V1x golf balls launched in the first quarter of 2023.
Operating income in our Titleist golf balls segment increased $30.7 million, or 30.4% compared to the prior year period. The increase in operating income resulted from higher gross profit of $45.6 million, partially offset by higher operating expenses of $14.5 million. The increase in gross profit was primarily driven by higher sales volumes and lower inbound freight costs. Operating expenses increased primarily as a result of increases of $7.4 million and $6.2 million in selling and advertising and promotional expenses, respectively.
Titleist Golf Clubs Segment
Net sales in our Titleist golf clubs segment increased 14.8%, or 16.8% on a constant currency basis, for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022. The increase was largely due to higher sales volumes of our T-Series irons launched in the third quarter of 2023, TSR drivers and fairways launched in the third quarter of 2022 and TSR hybrids and Scotty Cameron Super Select putters, each launched in the first quarter of 2023. This increase was partially offset by lower sales volumes of second model year wedges.
Operating income in our Titleist golf clubs segment increased $30.3 million, or 34.4% compared to the prior year period. The increase in operating income resulted from higher gross profit of $53.1 million, partially offset by higher operating expenses of $20.1 million and intangible amortization expense of $2.8 million. The increase in gross profit was primarily due to higher sales volumes, lower royalty expense and lower inbound freight costs. Operating expenses increased primarily as a result of increases of $10.0 million and $6.8 million in selling and advertising and promotional expenses, respectively. Intangible amortization expense increased due to the acquisition of trademarks in the fourth quarter of 2022.
Titleist Golf Gear Segment
Net sales in our Titleist golf gear segment increased 7.0%, or 9.0% on a constant currency basis, for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022. The increase was primarily driven by higher sales volumes and higher average selling prices across all product categories.
Operating income in our Titleist golf gear segment increased $6.4 million, or 31.5% compared to the prior year period. The increase in operating income resulted from higher gross profit of $8.3 million, partially offset by higher intangible amortization expense of $1.7 million. Gross profit increased primarily due to lower inbound freight costs, higher sales volumes and higher average selling prices. Intangible amortization expense increased due to the acquisition of trademarks in the first quarter of 2023.
FootJoy Golf Wear Segment
Net sales in our FootJoy golf wear segment decreased 1.4%, or increased 0.6% on a constant currency basis, for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022. The increase in constant currency was primarily due to a sales volume increase in apparel, largely offset by a sales volume decrease in footwear.
Operating income in our FootJoy golf wear segment decreased $12.4 million, or 27.4% compared to the prior year period. The decrease in operating income resulted from lower gross profit of $10.4 million and higher operating expenses of $1.9 million. Gross profit decreased primarily as a result of the sales volume decrease and unfavorable manufacturing absorption and increased promotional activity in footwear, partially offset by increased sales volumes in apparel and lower inbound freight costs. Operating expenses increased primarily as a result of an increase of $3.4 million in advertising and promotional expenses, partially offset by a $1.3 million decrease in selling expense largely due to lower retail commission expense in Korea.

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Liquidity and Capital Resources
Our primary cash needs relate to working capital, capital expenditures, servicing our debt, paying dividends, pension contributions and repurchasing shares of our common stock. Additionally, from time to time, we may make strategic acquisitions and investments to complement our products, technologies or businesses, which could impact our liquidity needs. We expect to rely on cash flows from operations and borrowings under our revolving credit facility and local credit facilities as our primary sources of liquidity.
Our liquidity is impacted by our level of working capital, which is cyclical as a result of the general seasonality of our business. Our accounts receivable balance is generally at its highest starting at the end of the first quarter and continuing through the second quarter, and declines during the third and fourth quarters as a result of both an increase in cash collections and lower sales. Our inventory balance also fluctuates as a result of the seasonality of our business. Generally, our buildup of inventory starts during the fourth quarter and continues through the first quarter and into the beginning of the second quarter in order to meet demand for our initial sell-in during the first quarter and reorders in the second quarter. Both accounts receivable and inventory balances are impacted by the timing of new product launches.
As of September 30, 2023, we had $55.1 million of unrestricted cash and cash equivalents (including $13.0 million attributable to our FootJoy golf shoe variable interest entity). As of September 30, 2023, 96.4% of our total unrestricted cash and cash equivalents was held at our non-U.S. subsidiaries, including our FootJoy golf shoe variable interest entity. We manage our worldwide cash requirements by monitoring the funds available among our subsidiaries and determining the extent to which we can access those funds on a cost effective basis. We are not aware of any restrictions on repatriation of these funds and, subject to foreign withholding taxes, those funds could be repatriated, if necessary. We have repatriated, and intend to repatriate, funds to the United States from time to time to satisfy domestic liquidity needs arising in the ordinary course of business.
Macroeconomic factors could impact our results of operations in ways we cannot currently predict. Nonetheless, we believe that cash expected to be provided by operating activities, together with our cash on hand and the availability of borrowings under our revolving credit facility and our local credit facilities (subject to customary borrowing conditions) will be sufficient to meet our liquidity requirements for at least the next 12 months. Our ability to generate sufficient cash flows from operations is, however, subject to many risks and uncertainties, including current and future economic trends and conditions, demand for our products, availability and cost of our raw materials and components, foreign currency exchange rates and other risks and uncertainties applicable to our business, as described in our Annual Report on Form 10-K for the year ended December 31, 2022.
Debt and Financing Arrangements
As of September 30, 2023, we had $385.1 million of availability under our multi-currency revolving credit facility after giving effect to $7.8 million of outstanding letters of credit. Additionally, we had $27.5 million of availability under certain local credit facilities of our subsidiaries.
Our credit agreement contains customary affirmative and restrictive covenants, including, among others, financial covenants based on our leverage and interest coverage ratios. The credit agreement also includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations to be immediately due and payable. As of September 30, 2023, we were in compliance with all covenants under our credit agreement.
On October 3, 2023, Acushnet Company (the "Issuer"), a wholly owned subsidiary of the Company, completed the issuance and sale of $350.0 million in gross proceeds of the Issuer's 7.375% senior unsecured notes due 2028 (the “Notes”). The proceeds from the Notes offering were used to repay $345.6 million of the outstanding borrowings under the Company's multi-currency revolving credit facility, as well as to pay fees and expenses related to the Notes offering.
See “Notes to Unaudited Condensed Consolidated Financial Statements – Note 5 – Debt and Financing Arrangements,” Item 1 of Part I included elsewhere in this report and “Notes to Consolidated Financial Statements-Note-11-Debt and Financing Arrangements” in our Annual Report on Form 10-K for the year ended December 31, 2022 for a description of our debt and financing arrangements. Additionally, see “Risk Factors,” Item 1A of Part II included elsewhere in this report and “Risk Factors - Risks Related to Our Indebtedness” as described in our Annual Report on Form 10-K for the year ended December 31, 2022 for further discussion surrounding the risks and uncertainties related to our debt and financing arrangements.
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Dividends and Share Repurchase Program
During the nine months ended September 30, 2023, we paid dividends on our common stock of $40.1 million to our shareholders. During the fourth quarter of 2023, our Board of Directors declared a dividend of $0.195 per share of common stock to shareholders of record as of December 1, 2023 and payable on December 15, 2023.
As of September 30, 2023, our Board of Directors had authorized us to repurchase up to an aggregate of $700.0 million of our issued and outstanding common stock. During the nine months ended September 30, 2023, we repurchased 4,150,817 shares of common stock at an average price of $49.40 for an aggregate of $205.0 million. Included in this amount were 2,168,528 shares of common stock repurchased from Magnus Holdings Co., Ltd. (“Magnus”), a wholly-owned subsidiary of Fila Holdings Corp., on January 23, 2023, for an aggregate of $100.0 million in satisfaction of our obligations pursuant to our previously disclosed Magnus share repurchase agreement.
On June 9, 2023, we entered into a new agreement with Magnus to purchase from Magnus an equal amount of our common stock as we purchase on the open market, over the period of time from June 12, 2023 through October 27, 2023, up to an aggregate of $100.0 million at the same weighted average per share price ("the 2023 Agreement"). In relation to this agreement, we recorded a liability of $79.8 million to purchase an additional 1,439,400 shares of common stock from Magnus as of September 30, 2023.
As of September 30, 2023, we had $202.4 million remaining under the current share repurchase authorization, including $100.0 million related to the 2023 Agreement. Between October 1, 2023 and October 27, 2023, we purchased an additional 385,594 shares of our common stock on the open market for an aggregate of $20.2 million, bringing the cumulative total open market purchases since the inception of the 2023 Agreement to $100.0 million. As a result, we expect to purchase 1,824,994 shares of our common stock from Magnus for an aggregate of $100.0 million on November 3, 2023, in satisfaction of our obligation under the 2023 Agreement.
See “Notes to Unaudited Condensed Consolidated Financial Statements-Note-10-Common Stock,” Item 1 of Part I included elsewhere in this report for a description of our share repurchase program and Magnus share repurchase agreements.
Business Developments
In January 2023, we acquired certain trademarks from West Coast Trends, Inc., an industry leader specializing in Club Glove premium performance golf travel products, for $25.2 million. See “Notes to Unaudited Condensed Consolidated Financial Statements-Note-16 - Other Business Developments,” Item 1 of Part I included elsewhere in this report for additional information.
Capital Expenditures
We made $42.4 million of capital expenditures during the nine months ended September 30, 2023. Capital expenditures for the full year are expected to be approximately $75.0 million, although the actual amount may vary depending upon a variety of factors, including the timing of certain capital project implementations and receipt of capital purchases due to supply chain challenges. Capital expenditures generally relate to investments to support the manufacturing and distribution of products, our go-to-market activities and continued investments in information technology to support our global strategic initiatives.
Cash Flows
The following table presents the major components of net cash flows from operating, investing and financing activities for the periods indicated:
 Nine months ended
 September 30,
(in thousands)20232022
Cash flows from:    
Operating activities$296,930 $(59,042)
Investing activities(68,554)(29,096)
Financing activities(229,202)(74,619)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash(1,312)(10,463)
Net decrease in cash, cash equivalents and restricted cash$(2,138)$(173,220)
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Cash Flows from Operating Activities
The increase in cash provided by operating activities was primarily related to changes in working capital, largely driven by inventory. These inventory changes relate to an increase in demand for certain of our products and improvements in our inventory position and supply chain. At any specific point in time, working capital is subject to many variables, including seasonality and inventory management, the timing of cash receipts and payments, vendor payment terms and fluctuations in foreign exchange rates.
Cash Flows from Investing Activities    
The increase in cash used in investing activities was primarily driven by cash paid for trademark acquisitions during the nine months ended September 30, 2023, as well as an increase in capital expenditures.
Cash Flows from Financing Activities
The increase in cash used in financing activities was primarily due to a decrease in net proceeds from borrowings, as well as an increase in purchases of our common stock.
Off-Balance Sheet Arrangements
As of September 30, 2023, other than as discussed above, we did not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on our financial condition, results of operations, liquidity, capital expenditures or capital resources.
Critical Accounting Estimates
There have been no material changes to our critical accounting estimates from the information provided in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in our Annual Report on Form 10-K for the year ended December 31, 2022.
Recently Issued Accounting Standards
We have reviewed all recently issued accounting standards and have determined that, other than as disclosed in "Notes to Unaudited Condensed Consolidated Financial Statements-Note-1-Summary of Significant Accounting Policies," Item 1 of Part I included elsewhere in this report, such accounting standards will not have a significant impact on our consolidated financial statements or otherwise do not apply to our operations.
ITEM 3.      Quantitative and Qualitative Disclosures About Market Risk
We are exposed to various market risks, which may result in potential losses arising from adverse changes in market rates, such as interest rates, foreign exchange rates and commodity prices and availability, as well as inflation risk. We do not enter into derivatives or other financial instruments for trading or speculative purposes and do not believe we are exposed to material market risk with respect to our cash and cash equivalents.
Interest Rate Risk
We are exposed to interest rate risk under our various credit facilities which accrue interest at variable rates, as described in "Notes to Unaudited Condensed Consolidated Financial Statements-Note-5- Debt and Financing Arrangements,” Item 1 of Part I, included elsewhere in this report. Interest rate risk is highly sensitive due to many factors, including U.S. monetary and tax policies, U.S. and international economic factors and other factors beyond our control. We are exposed to changes in the level of interest rates and to changes in the relationship or spread between interest rates for our floating rate debt. Our floating rate debt requires payments based on a variable interest rate index. Increases in interest rates may reduce our net income by increasing the cost of our debt.
From time to time, we enter into interest rate swap contracts to reduce our interest rate risk. Under these contracts, we pay fixed and receive variable rate interest, in effect converting a portion of our floating rate debt to fixed rate debt. As of September 30, 2023, the notional value of our outstanding interest rate swap contract was $100.0 million. See "Notes to Unaudited Condensed Consolidated Financial Statements-Note-6-Derivative Financial Instruments" for further discussion of our interest rate swap contract.
We performed a sensitivity analysis to assess the potential effect of a hypothetical movement in interest rates on our annual pre-tax interest expense. As of September 30, 2023, we had $491.2 million of outstanding indebtedness at variable
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interest rates after giving effect to $100.0 million of hedged floating rate indebtedness. The sensitivity analysis, while not predictive in nature, indicated that a one percentage point increase in the interest rate applied to these borrowings as of September 30, 2023 would have resulted in an increase of $4.9 million in our annual pre-tax interest expense. This sensitivity analysis disregards fluctuations in balances of our outstanding variable rate indebtedness due to borrowings and repayments throughout the year.
Foreign Exchange Risk
We are exposed to foreign currency transaction risk related to transactions denominated in a currency other than functional currency. In addition, we are exposed to currency translation risk resulting from the translation of the financial results of our consolidated subsidiaries from their functional currency into U.S. dollars for financial reporting purposes.
We use financial instruments to reduce the earnings and shareholders' equity volatility relating to transaction risk. The principal financial instruments we enter into on a routine basis are foreign exchange forward contracts, primarily pertaining to the U.S. dollar, the Japanese yen, the British pound sterling, the Canadian dollar, the Korean won and the euro. The periods of the foreign exchange forward contracts designated as hedges correspond to the periods of the forecasted hedged transactions, which do not exceed 24 months subsequent to the latest balance sheet date. We do not enter into derivative financial instrument contracts for trading or speculative purposes.
We performed a sensitivity analysis to assess potential changes in the fair value of our foreign exchange forward contracts relating to a hypothetical movement in foreign currency exchange rates. The gross U.S. dollar equivalent notional amount of all foreign exchange forward contracts outstanding at September 30, 2023 was $193.2 million, representing a net settlement asset of $8.4 million. The sensitivity analysis of changes in the fair value of our foreign exchange forward contracts outstanding as of September 30, 2023, while not predictive in nature, indicated that the net settlement asset of $8.4 million would decrease by $13.0 million resulting in a net settlement liability of $4.6 million, if the U.S. dollar uniformly weakened by 10% against all currencies covered by our contracts.
The sensitivity analysis described above recalculates the fair value of the foreign exchange forward contracts outstanding by replacing the actual foreign currency exchange rates and current month forward rates with foreign currency exchange rates and forward rates that reflect a 10% weakening of the U.S. dollar against all currencies covered by our contracts. All other factors are held constant. The sensitivity analysis disregards the possibility that foreign currency exchange rates can move in opposite directions and that gains from one currency may or may not be offset by losses from another currency. The analysis also disregards the offsetting change in value of the underlying hedged transactions and balances.
The financial markets and currency volatility may limit our ability to cost-effectively hedge these exposures. The counterparties to derivative contracts are major financial institutions with investment grade credit ratings. We monitor the credit quality of these financial institutions on an ongoing basis.
Commodity Risk
We are exposed to commodity price and availability risks with respect to certain materials and components used by us, our suppliers and our manufacturers, including polybutadiene, urethane and Surlyn for the manufacturing of our golf balls, titanium and steel for the assembly of our golf clubs, leather and synthetic fabrics for our golf shoes, golf gloves, golf gear and golf apparel, and resin and other petroleum-based materials for a number of our products.
Impact of Inflation
Our results of operations and financial condition are presented based on historical cost, and inflation in the cost of our products, overhead costs or wage rates may adversely affect our operating results. While it is difficult to accurately measure the impact of inflation due to the imprecise nature of the estimates required, we believe that inflation in the form of increased raw materials and other input costs, including inbound freight and wage rates, have impacted our business, results of operations, financial position and cash flows during the nine months ended September 30, 2023 and 2022. Sustained and higher inflationary environments, including increased raw material and other input costs, could materially impact our business, results of operations, financial position and cash flows in the future.

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ITEM 4.      Controls and Procedures
Evaluation of Disclosure Controls and Procedures. Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of the end of the fiscal quarter ended September 30, 2023. Based on such evaluation, our principal executive officer and principal financial officer have concluded that as of such date, our disclosure controls and procedures were effective.
Changes in Internal Control over Financial Reporting. There were no changes in our internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter ended September 30, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II.         OTHER INFORMATION

ITEM 1.      Legal Proceedings
We are party to lawsuits associated with the normal conduct of our businesses and operations. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that some of these actions could be decided unfavorably.

Item 1A.      Risk Factors
You should carefully consider each of the risk factors included in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022, as well as the other information set forth in this report. There have been no material changes to the risk factors as described in our Annual Report on Form 10-K for the year ended December 31, 2022, other than the risk factors included below.

A high degree of leverage could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or in our industry, expose us to interest rate risk to the extent of our variable rate debt, and prevent us from meeting our obligations under our indebtedness.
As of September 30, 2023, we had $592.8 million of indebtedness. As of September 30, 2023, we had available borrowings under our multi-currency revolving credit facility of $385.1 million after giving effect to $7.8 million of outstanding letters of credit and we had available borrowings remaining under our local credit facilities of $27.5 million. As of September 30, 2023, the notional value of our outstanding interest rate swap contracts was $100.0 million. In addition, on October 3, 2023, Acushnet Company, our wholly-owned subsidiary, issued $350 million in gross proceeds of 7.375% senior unsecured notes due 2028 (the “Notes”), which proceeds were used in part to repay $345.6 million of borrowings under our multi-currency revolving credit facility.

A high degree of leverage could have important consequences for us, including:

•requiring us to utilize a substantial portion of our cash flows from operations to make payments on our indebtedness, reducing the availability of our cash flows to fund working capital, capital expenditures, product development, acquisitions, general corporate and other purposes;
•increasing our vulnerability to adverse economic, industry, or competitive developments;
•exposing us to the risk of increased interest rates because many of our borrowings are at variable rates of interest;
•making it more difficult for us to satisfy our obligations with respect to our indebtedness, including the Notes, and any failure to comply with the obligations of any of our debt instruments, including financial maintenance covenants and restrictive covenants, could result in an event of default under the indenture governing the Notes, if not cured or waived, and the agreements governing our other indebtedness;
•restricting us from making strategic acquisitions or causing us to make non-strategic divestitures;
•limiting our ability to obtain additional financing for working capital, capital expenditures, product development, debt service requirements, acquisitions, and general corporate or other purposes; and
•limiting our flexibility in planning for, or reacting to, changes in our business or market conditions and placing us at a competitive disadvantage compared to our competitors who are less highly leveraged and who, therefore, may be able to take advantage of opportunities that our leverage prevents us from exploiting.

Servicing our indebtedness, including the Notes, will require a significant amount of cash. Our ability to generate sufficient cash depends on many factors, some of which are not within our control.

Our ability to make payments on our indebtedness, including the Notes, and to fund planned capital expenditures will depend on our ability to generate cash in the future. To a certain extent, this is subject to general economic, financial, competitive, legislative, regulatory, and other factors that are beyond our control. If we are unable to generate sufficient cash flows to service our debt and meet our other commitments, we may need to restructure or refinance all or a portion of our debt, sell material assets or operations, or raise additional debt or equity capital. We may not be able to effect any of these actions on a timely basis, on commercially reasonable terms, or at all, and these actions may not be sufficient to meet our capital requirements. In addition, any refinancing of our indebtedness could be at a higher interest rate, and the terms of our existing or future debt arrangements and the indenture governing the Notes may restrict us from effecting any of these alternatives. Our failure to make the required interest and principal payments on our indebtedness could result in an event of default under the
39
indenture governing the Notes and the agreements governing our other indebtedness, which may result in the acceleration of some or all of our outstanding indebtedness. In the absence of sufficient resources to service our debt and meet our other commitments, we could face substantial liquidity problems and might be required to dispose of material assets or operations to meet our debt service and other obligations. Our multi-currency revolving credit facility and the indenture governing the Notes will restrict our ability to dispose of assets and use the proceeds from the disposition. We may not be able to consummate those dispositions or to obtain the proceeds that we could realize from them and these proceeds may not be adequate to meet any debt service obligations then due. These alternative measures may not be successful and may not permit us to meet our scheduled debt service obligations.

We and our subsidiaries may be able to incur significant amounts of debt, which could exacerbate the risks associated with our current indebtedness.

We and our subsidiaries may be able to incur substantial additional indebtedness in the future. Although the indenture governing the Notes and the agreements governing our other indebtedness contain restrictions on the incurrence of additional indebtedness, these restrictions are subject to a number of significant qualifications and exceptions and, under certain circumstances, the amount of indebtedness that could be incurred in compliance with these restrictions could be substantial. If we incur additional debt, the risks associated with our substantial existing debt, including our ability to service our debt, could intensify.
The indenture governing the Notes contains, and the credit agreement governing our multi-currency revolving credit facility contains, restrictions that limit our flexibility in operating our business.

The indenture governing the Notes contains, and the credit agreement governing our multi-currency revolving credit facility contains, various covenants that limit our ability to engage in specified types of transactions. These covenants limit the ability of our subsidiaries to, among other things:

•incur additional indebtedness and guarantee indebtedness;
•issue certain preferred stock or similar equity securities;
•pay dividends or make other distributions in respect of, or repurchase or redeem, our capital stock;
•prepay, redeem or repurchase certain debt;
•make loans and investments;
•sell assets;
•incur liens;
•enter into transactions with affiliates;
•enter into agreements restricting our subsidiaries’ ability to pay dividends; and
•consolidate, merge or sell all or substantially all of our assets.

As a result of these and other covenants and restrictions, we are limited in how we conduct our business, and we may be unable to raise additional debt or equity financing to compete effectively or to take advantage of new business opportunities. In addition, we may be required to maintain specified financial maintenance ratios and satisfy other financial condition tests. The terms of any future indebtedness we may incur could include more restrictive covenants. We cannot assure you that we will be able to maintain compliance with these covenants in the future and, if we fail to do so, that we will be able to obtain waivers from the lenders and/or amend the covenants. A breach of any of these covenants, among others, could result in a default under one or more of these agreements, including as a result of cross default provisions, which, if not cured or waived, could result in our being required to repay these borrowings before their maturity. If we are unable to repay outstanding borrowings when due, the lenders under our multi-currency revolving credit facility have the right to proceed against the collateral granted to them to secure the debt. If lenders under the multi-currency revolving credit facility accelerate the debt thereunder, then the obligations under the Notes could be accelerated. We cannot provide assurance that, if the indebtedness under our multi-currency revolving credit facility and the Notes were to be accelerated, our assets would be sufficient to repay in full that indebtedness and our other indebtedness. If not cured or waived, such acceleration could have a material adverse effect on our business and our prospects.
Any decline in the ratings of our corporate credit or the ratings of the Notes could impact our ability to access capital.

Any decline in the ratings of our corporate credit or the Notes could increase our cost of financing and limit our ability to refinance maturing liabilities or access the capital markets to meet liquidity needs.

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ITEM 2.      Unregistered Sales of Equity Securities and Use of Proceeds
The following table provides information relating to the Company’s purchase of common stock for the third quarter of 2023:
PeriodTotal number of shares purchasedAverage price paid per shareTotal number of shares purchased as part of publicly announced plans or programs
Approximate dollar value of shares that may yet be purchased under the plans or programs (1)(2)
 (in thousands)
July 1, 2023 - July 31, 2023368,313 $55.93 368,313 $246,704 
August 1, 2023 - August 31, 2023419,047 57.06 419,047 222,794 
September 1, 2023- September 30, 2023366,040 55.76 366,040 202,385 
Total1,153,400 $56.28 1,153,400 $202,385 

_______________________________________________________________________________
(1) On June 9, 2023, in connection with our share repurchase program, we entered into a new agreement with Magnus Holdings Co., Ltd. (“Magnus”), a wholly-owned subsidiary of Fila Holdings Corp., to purchase from Magnus an equal amount of our common stock as we purchase on the open market, over the period of time from June 12, 2023 through October 27, 2023, up to an aggregate of $100.0 million at the same weighted average per share price (the "2023 Agreement"). See “Notes to Unaudited Condensed Consolidated Financial Statements-Note-10-Common Stock,” Item 1 of Part I included elsewhere in this report for a description of our share repurchase program and Magnus share repurchase agreements.
(2)    Between October 1, 2023 and October 27, 2023, we purchased an additional 385,594 shares of our common stock on the open market for an aggregate of $20.2 million, bringing the cumulative total open market purchases since the inception of the 2023 Agreement to $100.0 million. As a result, we expect to purchase 1,824,994 shares of our common stock from Magnus for an aggregate of $100.0 million on November 3, 2023, in satisfaction of our obligation under the 2023 Agreement.

ITEM 3.      Defaults Upon Senior Securities

None.

ITEM 4.      Mine Safety Disclosures

None.

ITEM 5.      Other Information
During the three months ended September 30, 2023, none of our directors or officers adopted, modified as to the amount, price or timing of trades, or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.


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ITEM 6.      Exhibits
Exhibit No.    Description
 
   
 
   
 
   
 
   
101.INSInline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCHTaxonomy Extension Schema Document
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document
101.LABInline XBRL Taxonomy Extension Labels Linkbase Document
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document
104Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)
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SIGNATURES
    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 ACUSHNET HOLDINGS CORP.
  
Dated: November 2, 2023By:/s/ David Maher
  David Maher
  President and Chief Executive Officer
  (Principal Executive Officer)
   
   
Dated: November 2, 2023By:/s/ Sean Sullivan
  Sean Sullivan
  Executive Vice President and Chief Financial Officer
  (Principal Financial Officer)
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Exhibit 31.1
 
CERTIFICATIONS
 
I, David Maher, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Acushnet Holdings Corp.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date: November 2, 2023 
  
/s/ DAVID MAHER 
Name: David Maher 
President and Chief Executive Officer 



Exhibit 31.2
 
CERTIFICATIONS
 
I, Sean Sullivan, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Acushnet Holdings Corp.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: November 2, 2023 
  
/s/ SEAN SULLIVAN 
Name: Sean Sullivan 
Executive Vice President and Chief Financial Officer 


Exhibit 32.1
 
CERTIFICATION OF PERIODIC FINANCIAL REPORTS
 
I, David Maher, President and Chief Executive Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1)the Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, (the “Periodic Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of Acushnet Holdings Corp.
Date: November 2, 2023
 /s/ DAVID MAHER
 Name: David Maher
President and Chief Executive Officer
 


Exhibit 32.2
 
CERTIFICATION OF PERIODIC FINANCIAL REPORTS
 
I, Sean Sullivan, Executive Vice President and Chief Financial Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, (the “Periodic Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 
(2) information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of Acushnet Holdings Corp.
 
Date: November 2, 2023
 
 /s/ SEAN SULLIVAN
 Name: Sean Sullivan
Executive Vice President and Chief Financial Officer
 


v3.23.3
Cover Page - shares
 9 Months Ended
Sep. 30, 2023
Oct. 27, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2023  
Document Transition Report false  
Entity File Number 001-37935  
Entity Registrant Name Acushnet Holdings Corp.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 45-2644353  
Entity Address, Address Line One 333 Bridge Street  
Entity Address, City or Town Fairhaven,  
Entity Address, State or Province MA  
Entity Address, Postal Zip Code 02719  
City Area Code 800  
Local Phone Number 225-8500  
Title of 12(b) Security Common Stock - $0.001 par value per share  
Trading Symbol GOLF  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   65,377,739
Entity Central Index Key 0001672013  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q3  
v3.23.3
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Current assets    
Cash, cash equivalents and restricted cash ($13,748 and $14,376 attributable to the variable interest entity ("VIE")) $ 56,766 $ 58,904
Accounts receivable, net 335,821 216,695
Inventories ($8,248 and $17,866 attributable to the VIE) 528,730 674,684
Prepaid and other assets 112,204 108,793
Total current assets 1,033,521 1,059,076
Property, plant and equipment, net ($9,358 and $10,089 attributable to the VIE) 275,007 254,472
Goodwill ($32,312 and $32,312 attributable to the VIE) 222,678 224,814
Intangible assets, net 540,728 525,903
Deferred income taxes 21,440 47,551
Other assets ($2,003 and $2,083 attributable to the VIE) 117,193 81,991
Total assets 2,210,567 2,193,807
Current liabilities    
Short-term debt 34,121 40,336
Current portion of long-term debt 345,065 0
Accounts payable ($4,664 and $11,914 attributable to the VIE) 136,777 166,998
Accrued taxes 43,386 40,922
Accrued compensation and benefits ($1,115 and $1,651 attributable to the VIE) 96,127 98,245
Accrued expenses and other liabilities ($1,592 and $3,380 attributable to the VIE) 200,721 202,124
Total current liabilities 856,197 548,625
Long-term debt 213,623 527,509
Deferred income taxes 6,113 5,896
Accrued pension and other postretirement benefits 76,128 74,234
Other noncurrent liabilities ($52 and $2,145 attributable to the VIE) 84,600 54,177
Total liabilities 1,236,661 1,210,441
Commitments and contingencies (Note 15)
Redeemable noncontrolling interests 7,260 6,663
Shareholders' equity    
Common stock, $0.001 par value, 500,000,000 shares authorized; 76,805,736 and 76,321,523 shares issued 77 76
Additional paid-in capital 970,646 960,685
Accumulated other comprehensive loss, net of tax (122,770) (109,668)
Retained earnings 657,793 473,130
Treasury stock, at cost; 12,481,803 and 8,892,425 shares (including 1,439,400 and 2,000,839 of accrued share repurchases (Note 10)) (577,380) (385,167)
Total equity attributable to Acushnet Holdings Corp. 928,366 939,056
Noncontrolling interests 38,280 37,647
Total shareholders' equity 966,646 976,703
Total liabilities, redeemable noncontrolling interests and shareholders' equity $ 2,210,567 $ 2,193,807
v3.23.3
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Cash, cash equivalents and restricted cash $ 56,766 $ 58,904
Inventories 528,730 674,684
Property, plant and equipment, net 275,007 254,472
Goodwill 222,678 224,814
Other assets 117,193 81,991
Accounts payable 136,777 166,998
Accrued compensation and benefits 96,127 98,245
Accrued expenses and other liabilities 200,721 202,124
Other noncurrent liabilities $ 84,600 $ 54,177
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 500,000,000 500,000,000
Common stock, shares issued (in shares) 76,805,736 76,321,523
Treasury stock, at cost (in shares) 12,481,803 8,892,425
Accrued share repurchases (in shares) 1,439,400 2,000,839
VIE    
Cash, cash equivalents and restricted cash $ 13,748 $ 14,376
Inventories 8,248 17,866
Property, plant and equipment, net 9,358 10,089
Goodwill 32,312 32,312
Other assets 2,003 2,083
Accounts payable 4,664 11,914
Accrued compensation and benefits 1,115 1,651
Accrued expenses and other liabilities 1,592 3,380
Other noncurrent liabilities $ 52 $ 2,145
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Income Statement [Abstract]        
Net sales $ 593,381 $ 558,246 $ 1,969,034 $ 1,822,932
Cost of goods sold 284,859 263,251 926,317 867,332
Gross profit 308,522 294,995 1,042,717 955,600
Operating expenses:        
Selling, general and administrative 210,166 202,418 674,720 637,276
Research and development 16,239 14,619 47,286 42,533
Intangible amortization 3,512 1,948 10,712 5,865
Income from operations 78,605 76,010 309,999 269,926
Interest expense, net 9,389 4,534 30,234 7,902
Other expense, net 918 2,355 2,010 5,828
Income before income taxes 68,298 69,121 277,755 256,196
Income tax expense 11,252 15,797 52,726 52,786
Net income 57,046 53,324 225,029 203,410
Less: Net loss (income) attributable to noncontrolling interests 261 (1,487) 208 (4,074)
Net income attributable to Acushnet Holdings Corp. $ 57,307 $ 51,837 $ 225,237 $ 199,336
Net income per common share attributable to Acushnet Holdings Corp.:        
Basic (in dollars per share) $ 0.86 $ 0.72 $ 3.32 $ 2.74
Diluted (in dollars per share) $ 0.85 $ 0.72 $ 3.30 $ 2.72
Weighted average number of common shares:        
Basic (in shares) 66,898,142 71,706,824 67,812,790 72,701,647
Diluted (in shares) 67,343,260 72,334,398 68,208,022 73,209,719
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Statement of Comprehensive Income [Abstract]        
Net income $ 57,046 $ 53,324 $ 225,029 $ 203,410
Other comprehensive loss:        
Foreign currency translation adjustments (10,991) (26,527) (12,919) (58,592)
Cash flow derivative instruments:        
Unrealized holding gains arising during period 4,090 6,106 8,320 18,155
Reclassification adjustments included in net income (923) (2,535) (7,404) (5,476)
Tax expense (807) (1,099) (269) (3,977)
Cash flow derivative instruments, net 2,360 2,472 647 8,702
Pension and other postretirement benefits:        
Pension and other postretirement benefits adjustments 190 2,252 (914) 5,788
Tax (expense) benefit (32) (576) 216 (1,395)
Pension and other postretirement benefits adjustments, net 158 1,676 (698) 4,393
Total other comprehensive loss (8,473) (22,379) (12,970) (45,497)
Comprehensive income 48,573 30,945 212,059 157,913
Less: Comprehensive loss (income) attributable to noncontrolling interests 309 (1,446) 76 (3,862)
Comprehensive income attributable to Acushnet Holdings Corp. $ 48,882 $ 29,499 $ 212,135 $ 154,051
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Cash flows from operating activities    
Net income $ 225,029 $ 203,410
Adjustments to reconcile net income to cash flows provided by (used in) operating activities    
Depreciation and amortization 38,181 30,894
Unrealized foreign exchange (gain) loss (2,495) 12,531
Amortization of debt issuance costs 501 1,835
Share-based compensation 21,369 18,159
Gain on disposals of property, plant and equipment (19) (3,257)
Deferred income taxes 25,015 6,928
Changes in operating assets and liabilities    
Accounts receivable (125,667) (176,531)
Inventories 136,828 (156,065)
Accounts payable (30,030) 21,437
Accrued taxes 5,798 (3,419)
Other assets and liabilities 2,420 (14,964)
Cash flows provided by (used in) operating activities 296,930 (59,042)
Cash flows from investing activities    
Additions to property, plant and equipment (42,432) (33,638)
Additions to intangible assets (Note 16) (25,235) 0
Other, net (887) 4,542
Cash flows used in investing activities (68,554) (29,096)
Cash flows from financing activities    
(Repayments of) proceeds from short-term borrowings, net (Note 5) (3,121) 31,056
Proceeds from revolving credit facilities (Note 5) 1,039,443 483,000
Repayments of revolving credit facilities (Note 5) (1,010,387) (77,400)
Repayments of term loan facility (Note 5) 0 (315,000)
Purchases of common stock (204,656) (138,158)
Payment of debt issuance costs 0 (2,583)
Dividends paid on common stock (40,099) (39,672)
Dividends paid to noncontrolling interests 0 (1,601)
Payment of employee restricted stock tax withholdings (11,460) (10,661)
Other, net 1,078 (3,600)
Cash flows used in financing activities (229,202) (74,619)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (1,312) (10,463)
Net decrease in cash, cash equivalents and restricted cash (2,138) (173,220)
Cash, cash equivalents and restricted cash, beginning of year 58,904 281,677
Cash, cash equivalents and restricted cash, end of period 56,766 108,457
Supplemental non-cash information    
Purchases of property, plant and equipment, accrued not paid 6,007 6,757
Additions to right-of-use assets obtained in exchange for operating lease obligations 50,813 17,919
Additions to right-of-use assets obtained in exchange for finance lease obligations 711 335
Additions to treasury stock 2,023 1,595
Dividend equivalents rights ("DERs") declared not paid 1,411 1,323
Contingent consideration (Note 16) 0 1,400
Share repurchase liability (Note 10) $ 79,765 $ 41,577
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED) - USD ($)
shares in Thousands, $ in Thousands
Total
Total Shareholders' Equity Attributable to Acushnet Holdings Corp.
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Loss, Net of Tax
Retained Earnings
Treasury Stock
Noncontrolling Interests
Beginning balance (in shares) at Dec. 31, 2021     75,855          
Beginning balance at Dec. 31, 2021 $ 1,080,267 $ 1,042,844 $ 76 $ 948,423 $ (99,582) $ 324,966 $ (131,039) $ 37,423
Changes in stockholders' equity                
Purchase of equity from noncontrolling interest (Note 16) (4,743) (838)   (838)       (3,905)
Net income 203,667 199,336       199,336   4,331
Other comprehensive loss (45,497) (45,497)     (45,497)      
Share-based compensation 17,667 17,667   17,667        
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) (in shares)     467          
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) (10,326) (10,326)   (10,326)        
Purchases of common stock (Note 10) (110,539) (110,539)         (110,539)  
Share repurchase liability (Note 10) (41,577) (41,577)         (41,577)  
Dividends and dividend equivalents declared (40,065) (40,065)       (40,065)    
Dividends declared to noncontrolling interests (1,601)             (1,601)
Redemption value adjustment (Note 1) (1,000) (1,000)       (1,000)    
Ending balance (in shares) at Sep. 30, 2022     76,322          
Ending balance at Sep. 30, 2022 1,046,253 1,010,005 $ 76 954,926 (145,079) 483,237 (283,155) 36,248
Beginning balance (in shares) at Dec. 31, 2021     75,855          
Beginning balance at Dec. 31, 2021 1,080,267 1,042,844 $ 76 948,423 (99,582) 324,966 (131,039) 37,423
Changes in stockholders' equity                
Dividends and dividend equivalents declared (53,051)              
Ending balance (in shares) at Dec. 31, 2022     76,322          
Ending balance at Dec. 31, 2022 976,703 939,056 $ 76 960,685 (109,668) 473,130 (385,167) 37,647
Beginning balance (in shares) at Jun. 30, 2022     76,289          
Beginning balance at Jun. 30, 2022 1,105,827 1,071,173 $ 76 949,206 (122,700) 444,592 (200,001) 34,654
Changes in stockholders' equity                
Net income 53,431 51,837       51,837   1,594
Other comprehensive loss (22,379) (22,379)     (22,379)      
Share-based compensation 5,673 5,673   5,673        
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) (in shares)     33          
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) 47 47   47        
Purchases of common stock (Note 10) (41,577) (41,577)         (41,577)  
Share repurchase liability (Note 10) (41,577) (41,577)         (41,577)  
Dividends and dividend equivalents declared (13,192) (13,192)       (13,192)    
Ending balance (in shares) at Sep. 30, 2022     76,322          
Ending balance at Sep. 30, 2022 1,046,253 1,010,005 $ 76 954,926 (145,079) 483,237 (283,155) 36,248
Changes in stockholders' equity                
Dividends and dividend equivalents declared (12,986)              
Ending balance (in shares) at Dec. 31, 2022     76,322          
Ending balance at Dec. 31, 2022 976,703 939,056 $ 76 960,685 (109,668) 473,130 (385,167) 37,647
Changes in stockholders' equity                
Sale of equity to redeemable noncontrolling interest 264 264   444   (180)    
Net income 225,870 225,237       225,237   633
Other comprehensive loss (13,102) (13,102)     (13,102)      
Share-based compensation 20,877 20,877   20,877        
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) (in shares)     484          
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) (11,359) (11,359) $ 1 (11,360)        
Purchases of common stock (Note 10) (112,448) (112,448)         (112,448)  
Share repurchase liability (Note 10) (79,765) (79,765)         (79,765)  
Dividends and dividend equivalents declared (40,394) (40,394)       (40,394)    
Ending balance (in shares) at Sep. 30, 2023     76,806          
Ending balance at Sep. 30, 2023 966,646 928,366 $ 77 970,646 (122,770) 657,793 (577,380) 38,280
Beginning balance (in shares) at Jun. 30, 2023     76,782          
Beginning balance at Jun. 30, 2023 1,055,217 1,017,219 $ 77 965,446 (114,345) 613,584 (447,543) 37,998
Changes in stockholders' equity                
Net income 57,589 57,307       57,307   282
Other comprehensive loss (8,425) (8,425)     (8,425)      
Share-based compensation 5,141 5,141   5,141        
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) (in shares)     24          
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) 59 59   59        
Purchases of common stock (Note 10) (64,918) (64,918)         (64,918)  
Share repurchase liability (Note 10) (64,919) (64,919)         (64,919)  
Dividends and dividend equivalents declared (13,098) (13,098)       (13,098)    
Ending balance (in shares) at Sep. 30, 2023     76,806          
Ending balance at Sep. 30, 2023 $ 966,646 $ 928,366 $ 77 $ 970,646 $ (122,770) $ 657,793 $ (577,380) $ 38,280
v3.23.3
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of Acushnet Holdings Corp. (the “Company”), its wholly-owned subsidiaries and less than wholly-owned subsidiaries, including a variable interest entity (“VIE”) in which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.
Certain information in footnote disclosures normally included in annual financial statements has been condensed or omitted for the interim periods presented in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP. The year-end balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the unaudited condensed consolidated financial statements do not include all disclosures required by U.S. GAAP. In the opinion of management, the financial statements contain all normal and recurring adjustments necessary to state fairly the financial position and results of operations of the Company. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of results to be expected for the full year ending December 31, 2023, nor were those of the comparable 2022 periods representative of those actually experienced for the full year ended December 31, 2022. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the fiscal year ended December 31, 2022 included in its Annual Report on Form 10-K filed with the SEC on March 1, 2023.
Use of Estimates
The preparation of the Company’s unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect reported amounts of assets and liabilities and related 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. Actual results could differ from these estimates.
Variable Interest Entities
VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities independently, or (ii) have equity holders that do not have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the entity’s expected losses, or the right to receive the entity’s expected residual returns. The Company consolidates a VIE when it is the primary beneficiary, which is the party that has both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) through its interests in the VIE, the obligation to absorb expected losses or the right to receive expected benefits from the VIE that could potentially be significant to the VIE.
The Company consolidates the accounts of Acushnet Lionscore Limited, a VIE which is 40% owned by the Company. The sole purpose of the VIE is to manufacture the Company’s golf footwear and as such, the Company is deemed to be the primary beneficiary. The Company has presented separately on its unaudited condensed consolidated balance sheets, to the extent material, the assets of its consolidated VIE that can only be used to settle specific obligations of its consolidated VIE and the liabilities of its consolidated VIE for which creditors do not have recourse to its general credit. The general creditors of the VIE do not have recourse to the Company. Certain directors of the VIE have guaranteed the credit lines of the VIE, for which there were no outstanding borrowings as of September 30, 2023 and December 31, 2022. In addition, pursuant to the terms of the agreement governing the VIE, the Company is not required to provide financial support to the VIE.
Noncontrolling Interests and Redeemable Noncontrolling Interests
The ownership interests held by owners other than the Company in less than wholly-owned subsidiaries are classified as noncontrolling interests. The financial results and position of noncontrolling interests are included in the Company’s unaudited condensed consolidated financial statements. The value attributable to the noncontrolling interests is presented on the unaudited condensed consolidated balance sheets, separately from the equity attributable to the Company. Net income (loss) and comprehensive income (loss) attributable to noncontrolling interests are presented separately on the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of comprehensive income, respectively.
Redeemable noncontrolling interests are those noncontrolling interests which are or may become redeemable at a fixed or determinable price on a fixed or determinable date, at the option of the holder, or upon occurrence of an event. The Company initially records the redeemable noncontrolling interest at its acquisition date fair value. The carrying amount of the redeemable noncontrolling interest is subsequently adjusted to the greater amount of either the initial carrying amount, increased or decreased for the redeemable noncontrolling interest's share of comprehensive income (loss) or the redemption value, assuming the noncontrolling interest is redeemable at the balance sheet date. This adjustment is recognized through retained earnings and is not reflected in net income (loss) or comprehensive income (loss). During the nine months ended September 30, 2022, the Company recorded a $1.0 million redemption value adjustment to increase the carrying value of redeemable noncontrolling interests. The value attributable to redeemable noncontrolling interests and any related loans to minority shareholders, which are recorded as a reduction to redeemable noncontrolling interests, are presented in the unaudited condensed consolidated balance sheets as temporary equity between liabilities and shareholders’ equity. The amount of the loan to minority shareholders was $4.4 million as of both September 30, 2023 and December 31, 2022.
Cash, Cash Equivalents and Restricted Cash
Cash held in Company checking accounts is included in cash. Cash equivalents consist of short-term highly liquid investments with original maturities of three months or less which are readily convertible into cash. The Company classifies as restricted certain cash that is not available for use in its operations. As of September 30, 2023 and December 31, 2022, the amount of restricted cash included in cash, cash equivalents and restricted cash on the unaudited condensed consolidated balance sheets was $1.7 million and $1.8 million, respectively.
Foreign Currency Transactions
Foreign currency transaction losses included in selling, general and administrative expenses were $0.9 million and $6.2 million for the three months ended September 30, 2023 and 2022, respectively. Foreign currency transaction losses included in selling, general and administrative expenses were $3.4 million and $15.0 million for the nine months ended September 30, 2023 and 2022, respectively.
Recently Adopted Accounting Standards
The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs"). Management determined that recently issued ASUs are not expected to have a material impact on the Company's consolidated financial statements.
v3.23.3
Allowance for Doubtful Accounts
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Allowance for Doubtful Accounts Allowance for Doubtful Accounts
The Company estimates expected credit losses using a number of factors, including customer credit ratings, age of receivables, historical credit loss information and current and forecasted economic conditions, which could affect the collectability of the reported amounts. All of these factors have been considered in the estimate of expected credit losses for the periods presented.
The activity related to the allowance for doubtful accounts was as follows:
Three months ended September 30,Nine months ended September 30,
(in thousands)2023202220232022
Balance at beginning of period$9,008 $7,918 $8,258 $5,980 
Bad debt expense17 193 814 2,648 
Amount of receivables written off (239)(203)(341)(472)
Foreign currency translation(124)(227)(69)(475)
Balance at end of period$8,662 $7,681 $8,662 $7,681 
v3.23.3
Inventories
 9 Months Ended
Sep. 30, 2023
Inventory Disclosure [Abstract]  
Inventories Inventories
The components of inventories were as follows: 
September 30,December 31,
(in thousands)20232022
Raw materials and supplies$147,705 $154,881 
Work-in-process23,922 29,689 
Finished goods357,103 490,114 
Inventories$528,730 $674,684 
v3.23.3
Product Warranty
 9 Months Ended
Sep. 30, 2023
Product Warranties Disclosures [Abstract]  
Product Warranty Product Warranty
The Company has defined warranties generally ranging from one to two years. Products covered by the defined warranty policies primarily include all Titleist golf products, FootJoy golf shoes and FootJoy golf outerwear. These product warranties generally obligate the Company to pay for the cost of replacement products, including the cost of shipping replacement products to its customers. The estimated cost of satisfying future warranty claims is accrued at the time the sale is recorded. In estimating future warranty obligations, the Company considers various factors, including its warranty policies and practices, the historical frequency of claims and the cost to replace or repair products under warranty.
The activity related to the Company’s warranty obligation for accrued warranty expense was as follows:
 Three months ended September 30,Nine months ended September 30,
(in thousands)2023202220232022
Balance at beginning of period$5,049 $4,077 $3,951 $4,177 
Provision1,568 1,286 5,313 3,497 
Claims paid/costs incurred(1,685)(1,333)(4,337)(3,489)
Foreign currency translation(61)(150)(56)(305)
Balance at end of period$4,871 $3,880 $4,871 $3,880 
v3.23.3
Debt and Financing Arrangements
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Debt and Financing Arrangements Debt and Financing Arrangements
Credit Facility
On August 2, 2022, the Company amended its credit agreement to, among other things, provide a $950.0 million multi-currency revolving credit facility and amend rates per annum at which borrowings in different denominations bear interest (the "Second Amended Credit Facility"). On August 2, 2022, proceeds from borrowings under the multi-currency revolving credit facility were used to, among other things, prepay in full the Company's then-outstanding term loans and refinance its outstanding borrowings under the revolving credit facility. Immediately prior to payment, the aggregate amounts outstanding related to the term loans and revolving credit facility were approximately $306.3 million and $72.6 million, respectively. The Second Amended Credit Facility matures on August 2, 2027, and as a result, the related borrowings have been classified as long-term debt, with the proceeds and repayments under the revolving credit facility presented on a gross basis in the consolidated statements of cash flows.
The credit agreement contains customary affirmative and restrictive covenants, including, among others, financial covenants based on the Company's leverage and interest coverage ratios. The credit agreement also includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations to be immediately due and payable. As of September 30, 2023, the Company was in compliance with all covenants under its credit agreement.
As of September 30, 2023, there were $557.1 million in outstanding borrowings under the Company's multi-currency revolving credit facility with a weighted average interest rate of 6.44%. As of September 30, 2023, the Company had available borrowings under its multi-currency revolving credit facility of $385.1 million after giving effect to $7.8 million of outstanding letters of credit.
Other Short-Term Borrowings
The Company has certain unsecured local credit facilities available through its subsidiaries. Amounts outstanding under other short-term borrowings are presented in short-term debt in the consolidated balance sheets with the proceeds and repayments presented on a gross basis in the consolidated statements of cash flows when the original maturity exceeds 90 days. There were $34.1 million and $40.3 million in outstanding borrowings under the Company's local credit facilities as of September 30, 2023 and December 31, 2022, respectively. The weighted average interest rate applicable to the outstanding borrowings was 0.53% and 0.85% as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023, the Company had available borrowings remaining under these local credit facilities of $27.5 million.
Letters of Credit
As of September 30, 2023 and December 31, 2022, there were outstanding letters of credit related to agreements, including the Company's Second Amended Credit Facility, totaling $10.9 million and $10.0 million, respectively, of which $7.8 million and $7.3 million, respectively, was secured. These agreements provided a maximum commitment for letters of credit of $58.0 million as of September 30, 2023.
Senior Unsecured Notes
On October 3, 2023, Acushnet Company (the "Issuer"), a wholly owned subsidiary of the Company, completed the issuance and sale of $350.0 million in gross proceeds of the Issuer's 7.375% senior unsecured notes due 2028 (the “Notes”). The Notes were issued pursuant to an Indenture, dated October 3, 2023 (the “Indenture”), among the Issuer, U.S. Bank Trust Company, National Association, as trustee of the Notes, and the Company and certain subsidiaries of the Issuer as guarantors.
The proceeds from the Notes offering were used to repay $345.6 million of the outstanding borrowings under the Company's multi-currency revolving credit facility, as well as to pay fees and expenses related to the Notes offering. In connection with the Notes offering, the Company estimates fees and expenses totaling approximately $6.4 million will be included in long-term debt on the unaudited condensed consolidated balance sheet and will be amortized to interest expense, net over the term of the Notes.
The Notes will bear interest at the rate of 7.375% per year, with interest payable semi-annually on April 15 and October 15 of each year, beginning on April 15, 2024.
The Notes will mature on October 15, 2028, unless earlier repurchased or redeemed in accordance with their terms, and as a result, will be classified as long-term debt. The Issuer may redeem all or part of the Notes at any time prior to October 15, 2025 at 100.0% of the principal amount redeemed plus a “make-whole” premium. The make-whole premium is the greater of (i) 1.0% of the then outstanding principal amount of the Notes being redeemed and (ii) the excess, if any, of: (1) the present value at such redemption date of the sum of (A) 103.688% of the principal amount of Notes being redeemed plus (B) all required interest payments due on the Notes through October 15, 2025 (excluding accrued but unpaid interest) and (2) the then outstanding principal amount of the Notes being redeemed.
Thereafter, the Issuer may redeem all or part of the Notes at the redemption prices (expressed as percentages of principal amount of the Notes to be redeemed) set forth below, together with any accrued and unpaid interest, if redeemed during the 12-month period beginning on October 15 of the years indicated below:
 YearRedemption Price
2025103.688 %
2026101.844 %
2027 and thereafter100.000 %
v3.23.3
Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company principally uses derivative financial instruments to reduce the impact of foreign currency fluctuations and interest rate variability on the Company's results of operations. The principal derivative financial instruments the Company enters into are foreign exchange forward contracts and interest rate swaps. The Company does not enter into derivative financial instrument contracts for trading or speculative purposes.
Foreign Exchange Derivative Instruments
Foreign exchange forward contracts are foreign exchange derivative instruments primarily used to reduce foreign currency risk related to transactions denominated in a currency other than functional currency. These instruments are designated as cash flow hedges. The periods of the foreign exchange forward contracts correspond to the periods of the hedged forecasted transactions, which do not exceed 24 months subsequent to the latest balance sheet date. The primary foreign exchange forward contracts pertain to the U.S. dollar, the Japanese yen, the British pound sterling, the Canadian dollar, the Korean won and the euro. The gross U.S. dollar equivalent notional amount outstanding of all foreign exchange forward contracts designated under hedge accounting as of September 30, 2023 and December 31, 2022 was $193.2 million and $242.4 million, respectively.
The Company also enters into foreign exchange forward contracts, which either do not qualify as hedging instruments or have not been designated as such, to reduce foreign currency transaction risk related to certain intercompany assets and liabilities denominated in a currency other than functional currency. These undesignated instruments are recorded at fair value as a derivative asset or liability with the corresponding change in fair value recognized in selling, general and administrative expenses. There were no outstanding foreign exchange forward contracts not designated under hedge accounting as of September 30, 2023. The gross U.S. dollar equivalent notional amount outstanding of all foreign exchange forward contracts not designated under hedge accounting as of December 31, 2022 was $4.0 million. Selling, general and administrative expenses during the nine months ended September 30, 2023 and 2022, included gains of $0.1 million and $1.2 million, respectively, related to undesignated foreign exchange forward derivative instruments.
Interest Rate Derivative Instruments
From time to time, the Company enters into interest rate swap contracts to reduce interest rate risk related to floating rate debt. Under the contracts, the Company pays fixed and receives variable rate interest, in effect converting a portion of its floating rate debt to fixed rate debt. Interest rate swap contracts are accounted for as cash flow hedges. As of September 30, 2023, the notional value of the Company's outstanding interest rate swap contracts was $100.0 million. As of December 31, 2022, there were no interest rate swap contracts outstanding.
Impact on Financial Statements
The fair value of hedge instruments recognized on the unaudited condensed consolidated balance sheets was as follows:
(in thousands)September 30,December 31,
Balance Sheet LocationHedge Instrument Type20232022
Prepaid and other assetsForeign exchange forward$9,495 $7,393 
Interest rate swap997 — 
Other assetsForeign exchange forward113 1,341 
Interest rate swap175 — 
Accrued expenses and other liabilitiesForeign exchange forward1,167 4,710 
Other noncurrent liabilitiesForeign exchange forward— 344 
The hedge instrument gain recognized in accumulated other comprehensive loss, net of tax was as follows:
 Three months endedNine months ended
 September 30,September 30,
(in thousands)2023202220232022
Type of hedge    
Foreign exchange forward$3,658 $6,106 $6,719 $18,155 
Interest rate swap 432 — 1,601 — 
 Total$4,090 $6,106 $8,320 $18,155 
Gains and losses on derivative instruments designated as cash flow hedges are reclassified from accumulated other comprehensive loss, net of tax at the time the forecasted hedged transaction impacts the statements of operations or at the time the hedge is determined to be ineffective. Based on the current valuation, during the next 12 months the Company expects to reclassify a net gain of $7.7 million related to foreign exchange derivative instruments from accumulated other comprehensive loss, net of tax, into cost of goods sold and a net gain of $1.0 million related to interest rate derivative instruments from accumulated other comprehensive loss, net of tax, into interest expense, net. For further information related to amounts recognized in accumulated other comprehensive loss, net of tax, see Note 12.
The hedge instrument gain recognized on the unaudited condensed consolidated statements of operations was as follows:
 Three months endedNine months ended
 September 30,September 30,
(in thousands)2023202220232022
Location of gain in statements of operations    
Foreign exchange forward:
Cost of goods sold$682 $2,535 $6,975 $5,476 
Selling, general and administrative (1)
1,106 1,779 1,463 4,737 
Total $1,788 $4,314 $8,438 $10,213 
Interest Rate Swap:
Interest expense, net$241 $— $429 $— 
Total$241 $— $429 $— 
_______________________________________________________________________________
(1)    Relates to net gains on foreign exchange forward contracts derived from previously designated cash flow hedges.
Credit Risk
The Company enters into derivative contracts with major financial institutions with investment grade credit ratings and is exposed to credit losses in the event of non-performance by these financial institutions. This credit risk is generally limited to the unrealized gains in the derivative contracts. However, the Company monitors the credit quality of these financial institutions, as well as its own credit quality, and considers the risk of counterparty default to be minimal.
v3.23.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Certain assets and liabilities are carried at fair value under U.S. GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.
Assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 were as follows:
 Fair Value Measurements as of 
 September 30, 2023 using: 
(in thousands)Level 1Level 2Level 3Balance Sheet Location
Assets    
Rabbi trust$3,954 $— $— Prepaid and other assets
Foreign exchange derivative instruments— 9,495 — Prepaid and other assets
Interest rate derivative instruments— 997 — Prepaid and other assets
Deferred compensation program assets651 — — Other assets
Foreign exchange derivative instruments— 113 — Other assets
Interest rate derivative instruments— 175 — Other assets
Total assets$4,605 $10,780 $—  
Liabilities    
Foreign exchange derivative instruments$— $1,167 $— Accrued expenses and other liabilities
Deferred compensation program liabilities651 — — Other noncurrent liabilities
Total liabilities$651 $1,167 $—  
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 were as follows:
 Fair Value Measurements as of 
 December 31, 2022 using: 
(in thousands)Level 1Level 2Level 3Balance Sheet Location
Assets    
Rabbi trust$3,940 $— $— Prepaid and other assets
Foreign exchange derivative instruments— 7,393 — Prepaid and other assets
Deferred compensation program assets631 — — Other assets
Foreign exchange derivative instruments— 1,341 — Other assets
Total assets$4,571 $8,734 $—  
Liabilities    
Foreign exchange derivative instruments$— $4,758 $— Accrued expenses and other liabilities
Deferred compensation program liabilities631 — — Other noncurrent liabilities
Foreign exchange derivative instruments— 344 — Other noncurrent liabilities
Total liabilities$631 $5,102 $—  
Rabbi trust assets are used to fund certain retirement obligations of the Company. The assets underlying the Rabbi trust are equity and fixed income exchange-traded funds.
Deferred compensation program assets and liabilities represent a program where select employees could defer compensation until termination of employment. Effective July 29, 2011, this program was amended to cease all employee compensation deferrals and provided for the distribution of all previously deferred employee compensation. The program remains in effect with respect to the value attributable to the employer match contributed prior to July 29, 2011.
Foreign exchange derivative instruments are foreign exchange forward contracts primarily used to limit currency risk that would otherwise result from changes in foreign exchange rates (Note 6). The Company uses the mid-price of foreign exchange forward rates as of the close of business on the valuation date to value each foreign exchange forward contract at each reporting period.
Interest rate derivative instruments are interest rate swap contracts used to reduce interest rate risk related to the Company's floating rate debt (Note 6). The valuation for the interest rate swap is calculated as the net of the discounted future cash flows of the pay and receive legs of the swap. Mid-market interest rates on the valuation date are used to create the forward curve for floating legs and discount curve.
v3.23.3
Pension and Other Postretirement Benefits
 9 Months Ended
Sep. 30, 2023
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits
Components of net periodic benefit cost were as follows: 
 Pension BenefitsPostretirement Benefits
 Three months ended September 30,
(in thousands)2023202220232022
Components of net periodic benefit cost    
Service cost$1,411 $1,954 $107 $141 
Interest cost2,832 2,204 166 89 
Expected return on plan assets(1,966)(1,882)— — 
Settlements— 685 — — 
Amortization of net loss (gain)25 989 (223)(120)
Amortization of prior service cost (credit)45 66 (35)(35)
Net periodic benefit cost$2,347 $4,016 $15 $75 
Components of net periodic benefit cost were as follows: 
 Pension BenefitsPostretirement Benefits
 Nine months ended September 30,
(in thousands)2023202220232022
Components of net periodic benefit cost    
Service cost$4,261 $5,953 $322 $422 
Interest cost8,491 6,655 497 265 
Expected return on plan assets(5,894)(5,644)— — 
Settlements(27)685 — — 
Amortization of net loss (gain)70 2,966 (670)(351)
Amortization of prior service cost (credit)137 203 (103)(103)
Net periodic benefit cost$7,038 $10,818 $46 $233 
The non-service cost components of net periodic benefit cost are included in other expense, net in the unaudited condensed consolidated statements of operations.
v3.23.3
Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense decreased $4.5 million to $11.3 million for the three months ended September 30, 2023 compared to $15.8 million for the three months ended September 30, 2022. The Company’s effective tax rate ("ETR") was 16.5% for the three months ended September 30, 2023 compared to 22.9% for the three months ended September 30, 2022. Income tax expense decreased $0.1 million to $52.7 million for the nine months ended September 30, 2023 compared to $52.8 million for the nine months ended September 30, 2022. The Company’s ETR was 19.0% for the nine months ended September 30, 2023 compared to 20.6% for the nine months ended September 30, 2022.
The ETR for the three and nine months ended September 30, 2023 differed from the U.S. statutory tax rate primarily due to the impact of the U.S. deduction for foreign derived intangible income and federal and state tax credits, partially offset by the U.S. taxation of foreign income and the Company's geographic mix of income. The ETR for the three and nine months ended September 30, 2022 differed from the U.S. statutory tax rate primarily due to the impact of the U.S. deduction for foreign derived intangible income and federal and state tax credits, as well as the U.S. taxation of foreign income and the geographic mix of income earned by the Company's international subsidiaries.
v3.23.3
Common Stock
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Common Stock Common Stock
Dividends
The Company declared dividends per common share, including DERs (Note 11), during the periods presented as follows:
Dividends per Common Share
Amount
(in thousands)
2023:
Third Quarter$0.195 $13,098 
Second Quarter0.195 13,667 
First Quarter0.195 13,629 
Total dividends declared in 2023$0.585 $40,394 
2022:
Fourth Quarter$0.180 $12,986 
Third Quarter0.180 13,192 
Second Quarter0.180 13,400 
First Quarter0.180 13,473 
Total dividends declared in 2022$0.720 $53,051 
During the fourth quarter of 2023, the Company's Board of Directors declared a dividend of $0.195 per share of common stock to shareholders of record as of December 1, 2023 and payable on December 15, 2023.
Share Repurchase Program
As of September 30, 2023, the Board of Directors had authorized the Company to repurchase up to $700.0 million of its issued and outstanding common stock. Share repurchases may be effected from time to time in open market or privately negotiated transactions, including transactions with affiliates, with the timing of purchases and the amount of stock purchased generally determined at the discretion of the Company consistent with the Company's general working capital needs and within the constraints of the Company’s credit agreement.
On November 8, 2021, the Company entered into an agreement with Magnus Holdings Co., Ltd. (“Magnus”), a wholly-owned subsidiary of Fila Holdings Corp., to purchase from Magnus an equal amount of its common stock as it purchases on the open market, up to an aggregate of $37.5 million, at the same weighted average per share price (the "2021 Agreement"). In relation to the 2021 Agreement, on January 24, 2022, the Company purchased 699,819 shares of its common stock for an aggregate of $37.5 million from Magnus, in satisfaction of its obligations under the 2021 Agreement.
On June 16, 2022, the Company entered into an agreement with Magnus to purchase from Magnus an equal amount of its common stock as it purchases on the open market over the period of time from July 1, 2022 through January 13, 2023, up to an aggregate of $75.0 million, at the same weighted average per share price (the "2022 Agreement"). On August 30, 2022, the Company amended and restated the 2022 Agreement to increase the aggregate dollar amount of shares of its common stock that it will purchase from Magnus from $75.0 million to $100.0 million, (the "Amended and Restated 2022 Agreement"). In relation to this agreement, the Company recorded a share repurchase liability of $92.6 million for 2,000,839 shares of common stock, which was included in accrued expenses and other liabilities and treasury stock on the consolidated balance sheet as of December 31, 2022. Between January 1, 2023 and January 13, 2023, the Company purchased an additional 167,689 shares of its common stock on the open market for an aggregate of $7.4 million, bringing the cumulative total open market purchases since the inception of the 2022 Agreement to $100.0 million. As a result, on January 23, 2023, the Company purchased 2,168,528 shares of its common stock from Magnus for an aggregate of $100.0 million, in satisfaction of its obligation under the Amended and Restated 2022 Agreement.
On June 9, 2023, the Company entered into a new agreement with Magnus to purchase from Magnus an equal amount of its common stock as it purchases on the open market over the period of time from June 12, 2023 through October 27, 2023, up to an aggregate of $100.0 million, at the same weighted average per share price (the "2023 Agreement"). In relation to this agreement, the Company recorded a share repurchase liability of $79.8 million for 1,439,400 shares of common stock, which was included in accrued expenses and other liabilities and treasury stock on the consolidated balance sheet as of September 30, 2023.
The Company's share repurchase activity for the periods presented was as follows:
Three months ended September 30,Nine months ended September 30,
(in thousands, except share and per share amounts)2023202220232022
Shares repurchased in the open market:
Shares repurchased 1,153,400 869,368 1,982,289 2,283,573 
Average price$56.28 $47.82 $52.98 $44.78 
Aggregate value $64,918 $41,577 $105,030 $102,252 
Shares repurchased from Magnus:
Shares repurchased— — 2,168,528 699,819 
Average price (1)
$— $— $46.11 $53.59 
Aggregate value$— $— $100,001 $37,501 
Total shares repurchased:
Shares repurchased1,153,400 869,368 4,150,817 2,983,392 
Average price$56.28 $47.82 $49.40 $46.84 
Aggregate value$64,918 $41,577 $205,031 $139,753 
___________________________________
(1)    In accordance with the share repurchase agreements, shares purchased from Magnus are accrued for at the same weighted average price as those purchased on the open market, as if the purchase from Magnus had occurred on the same day. As such, the average price of Magnus repurchases during any given period will differ from open market repurchases due to the settlement of the previously recorded share repurchase liability, as well as open market purchases made after the completion of the Magnus Share repurchase agreements.
As of September 30, 2023, the Company had $202.4 million remaining under the current share repurchase authorization, including $100.0 million related to the 2023 Agreement. This program will remain in effect until completed or until terminated by the Board of Directors.
Between October 1, 2023 and October 27, 2023, the Company purchased an additional 385,594 shares of its common stock on the open market for an aggregate of $20.2 million, bringing the cumulative total open market purchases since the inception of the 2023 Agreement to $100.0 million. As a result, the Company expects to purchase 1,824,994 shares of its common stock from Magnus for an aggregate of $100.0 million on November 3, 2023, in satisfaction of its obligation under the 2023 Agreement.
v3.23.3
Equity Incentive Plans
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plans Equity Incentive Plans
Under the Acushnet Holdings Corp. 2015 Omnibus Incentive Plan (“2015 Plan”), the Company may grant stock options, stock appreciation rights, restricted shares of common stock, restricted stock units ("RSUs"), performance stock units ("PSUs") and other share-based and cash-based awards to members of the Board of Directors, officers, employees, consultants and advisors of the Company. As of September 30, 2023, the only awards granted under the 2015 Plan were RSUs and PSUs.
Restricted Stock and Performance Stock Units
RSUs granted to members of the Board of Directors vest immediately into shares of common stock. RSUs granted to Company officers generally vest over three years, with one-third of each grant vesting annually, subject to the recipient's continued employment with the Company. RSUs granted to other employees, consultants and advisors of the Company vest in accordance with the terms of the grants, generally either over three years or, beginning in 2022, with one-third of each grant vesting annually, subject to the recipient’s continued service to the Company. PSUs granted to Company officers and other employees vest based upon the Company's performance against specified metrics, generally over a three-year performance period, subject to the recipient's continued service to the Company. At the end of the performance period, the number of shares of common stock that could be issued is determined based upon the Company's performance against these metrics. The number of shares that could be issued can range from 0% to 200% of the recipient's target award. Recipients of the awards granted under the 2015 Plan may elect to defer receipt of all or any portion of any shares of common stock issuable upon vesting to a future date elected by the recipient.
All RSUs and PSUs granted under the 2015 Plan have DERs, which entitle holders of RSUs and PSUs to the same dividend value per share as holders of common stock and can be paid in either cash or common stock. DERs are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs and PSUs. DERs are paid when the underlying shares of common stock are delivered.
A summary of the Company’s RSUs and PSUs as of September 30, 2023 and changes during the nine months then ended is presented below: 
 Weighted-Weighted-
 NumberAverageNumberAverage
 of RSUsFair Value RSUs
of PSUs (3)
Fair Value PSUs
Outstanding as of December 31, 2022944,695 $37.48 529,366 $36.30 
Granted469,749 47.95 196,572 48.22 
Vested (1)(2)
(520,805)31.66 (231,127)25.73 
Forfeited(19,337)47.00 (12,377)41.78 
Outstanding as of September 30, 2023874,302 $46.36 482,434 $46.08 

_______________________________________________________________________________
(1)    Includes 83,664 shares of common stock related to RSU's that were not delivered as of September 30, 2023.
(2)    Based upon the Company’s level of achievement of the applicable performance metrics, the recipients of the 231,127 PSUs that vested during the nine months ended September 30, 2023, were entitled to receive 460,684 shares of common stock. As of September 30, 2023, there were 229,205 shares of common stock that had not been delivered in connection with the vesting of these PSUs.
(3)    Number of PSUs reflect 100% of the target level grant and may not be indicative of the performance level expected to be achieved.
Compensation expense recorded related to RSUs and PSUs in the unaudited condensed consolidated statements of operations was as follows:
 Three months endedNine months ended
September 30,September 30,
(in thousands)2023202220232022
RSUs$4,012 $3,149 $12,966 $10,101 
PSUs1,129 2,524 7,911 7,566 
The remaining unrecognized compensation expense related to unvested RSUs and unvested PSUs was $24.1 million and $12.0 million, respectively, as of September 30, 2023, and is expected to be recognized over the related weighted average period of 1.4 years and 1.9 years, respectively.
A summary of shares of common stock issued related to the 2015 Plan, including the impact of any DERs issued in common stock, is presented below:
Nine months endedNine months ended
 September 30, 2023September 30, 2022
RSUsPSUsRSUsPSUs
Shares of common stock issued472,766 231,580 525,029 188,527 
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations
(128,291)(91,842)(159,854)(87,215)
Net shares of common stock issued344,475 139,738 365,175 101,312 
Cumulative undelivered shares of common stock457,703 420,447 407,173 191,242 
Compensation Expense
The allocation of share-based compensation expense in the unaudited condensed consolidated statements of operations was as follows:
 Three months endedNine months ended
September 30,September 30,
(in thousands)2023202220232022
Cost of goods sold$340 $342 $1,095 $984 
Selling, general and administrative4,629 5,085 18,875 15,998 
Research and development336 410 1,399 1,177 
Total compensation expense before income tax5,305 5,837 21,369 18,159 
Income tax benefit945 1,219 4,304 3,744 
Total compensation expense, net of income tax$4,360 $4,618 $17,065 $14,415 
v3.23.3
Accumulated Other Comprehensive Loss, Net of Tax
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Accumulated Other Comprehensive Loss, Net of Tax Accumulated Other Comprehensive Loss, Net of Tax
Accumulated other comprehensive loss, net of tax consists of foreign currency translation adjustments, unrealized gains and losses from derivative instruments designated as cash flow hedges (Note 6) and pension and other postretirement adjustments (Note 8).
The components of and adjustments to accumulated other comprehensive loss, net of tax, were as follows:
 ForeignInterestAccumulated
 ForeignExchangeRate SwapPension andOther
CurrencyDerivativeDerivativeOtherComprehensive
(in thousands)TranslationInstrumentsInstrumentsPostretirementLoss, Net of Tax
Balance as of December 31, 2022$(97,855)$5,598 $— $(17,411)$(109,668)
Other comprehensive (loss) income before reclassifications(13,053)6,719 1,601 (319)(5,052)
Amounts reclassified from accumulated other comprehensive loss, net of tax— (6,975)(429)(593)(7,997)
Tax benefit (expense)— 17 (286)216 (53)
Balance as of September 30, 2023$(110,908)$5,359 $886 $(18,107)$(122,770)
v3.23.3
Net Income per Common Share
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Net Income per Common Share Net Income per Common Share
The following is a computation of basic and diluted net income per common share attributable to Acushnet Holdings Corp.:
 Three months endedNine months ended
 September 30,September 30,
(in thousands, except share and per share amounts)2023202220232022
Net income attributable to Acushnet Holdings Corp.$57,307 $51,837 $225,237 $199,336 
Weighted average number of common shares:
Basic66,898,142 71,706,824 67,812,790 72,701,647 
RSUs328,411 390,826 290,274 336,486 
PSUs116,707 236,748 104,958 171,586 
Diluted67,343,260 72,334,398 68,208,022 73,209,719 
Net income per common share attributable to Acushnet Holdings Corp.:
Basic$0.86 $0.72 $3.32 $2.74 
Diluted$0.85 $0.72 $3.30 $2.72 
Net income per common share attributable to Acushnet Holdings Corp. was calculated using the treasury stock method.
The Company’s potential dilutive securities for the three and nine months ended September 30, 2023 and 2022 include RSUs and PSUs. PSUs vest based upon achievement of performance targets and are excluded from the diluted shares outstanding unless the performance targets have been met as of the end of the applicable reporting period regardless of whether such performance targets are probable of achievement.
The following securities have been excluded from the calculation of diluted weighted-average common shares outstanding as their impact was determined to be anti-dilutive:
 Three months endedNine months ended
 September 30,September 30,
 2023202220232022
RSUs— 852 86,499 126,262 
v3.23.3
Segment Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company’s operating segments are based on how the Chief Operating Decision Maker (“CODM”) makes decisions about assessing performance and allocating resources. The Company has four reportable segments that are organized on the basis of product categories. These segments include Titleist golf balls, Titleist golf clubs, Titleist golf gear and FootJoy golf wear.
The CODM primarily evaluates performance using segment operating income (loss). Segment operating income (loss) includes directly attributable expenses and certain shared costs of corporate administration that are allocated to the reportable segments, but excludes interest expense, net, restructuring charges, the non-service cost component of net periodic benefit cost, transaction fees and other non-operating gains and losses as the Company does not allocate these to the reportable segments. The CODM does not evaluate a measure of assets when assessing performance.
Results shown for the three and nine months ended September 30, 2023 and 2022 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. There are no intersegment transactions.
Information by reportable segment and a reconciliation to reported amounts are as follows:
Three months ended September 30,Nine months ended September 30,
(in thousands)2023202220232022
Net sales  
Titleist golf balls$192,557 $181,243 $622,125 $546,374 
Titleist golf clubs181,045 153,877 549,846 478,880 
Titleist golf gear47,657 59,194 184,571 172,473 
FootJoy golf wear136,669 131,694 500,174 507,133 
Other35,453 32,238 112,318 118,072 
Total net sales$593,381 $558,246 $1,969,034 $1,822,932 
Segment operating income (loss)  
Titleist golf balls$43,770 $38,281 $131,591 $100,920 
Titleist golf clubs36,509 26,949 118,455 88,236 
Titleist golf gear788 6,430 26,657 20,276 
FootJoy golf wear(1,469)1,919 32,927 45,256 
Other1,693 3,618 12,606 21,212 
Total segment operating income81,291 77,197 322,236 275,900 
Reconciling items:  
Interest expense, net(9,389)(4,534)(30,234)(7,902)
Non-service cost component of net periodic benefit cost(844)(1,996)(2,501)(4,676)
Other(2,760)(1,546)(11,746)(7,126)
Total income before income tax$68,298 $69,121 $277,755 $256,196 
Information as to the Company’s operations in different geographical areas is presented below. Net sales are categorized based on the location in which the sale originates.
Three months ended September 30,Nine months ended September 30,
(in thousands)2023202220232022
United States$352,463 $327,639 $1,123,766 $974,187 
EMEA (1)
75,643 70,614 266,502 274,840 
Japan39,035 34,364 118,183 118,554 
Korea65,652 69,919 241,267 254,089 
Rest of World60,588 55,710 219,316 201,262 
Total net sales$593,381 $558,246 $1,969,034 $1,822,932 
_______________________________________________________________________________
(1) Europe, the Middle East and Africa ("EMEA")
v3.23.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Purchase Obligations
During the normal course of its business, the Company enters into agreements to purchase goods and services, including purchase commitments for advertising (including media placement and production costs), finished goods inventory, capital expenditures and endorsement arrangements with professional golfers.
The Company's purchase obligations as of September 30, 2023 were as follows:
 Payments Due by Period
 Remainder of     
(in thousands)20232024202520262027Thereafter
Purchase obligations (1)
$231,314 $64,231 $9,383 $2,482 $2,417 $9,650 
_______________________________________________________________________________
(1)    The reported amounts exclude those liabilities included on the unaudited condensed consolidated balance sheet as of September 30, 2023.
Litigation
The Company and its subsidiaries are party to lawsuits associated with the normal conduct of their businesses and operations. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that some of these actions could be decided unfavorably. Consequently, the Company 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 and has not recorded a liability related to potential losses.
v3.23.3
Other Business Developments
 9 Months Ended
Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]  
Other Business Developments Other Business Developments
In January 2023, the Company acquired certain trademarks from West Coast Trends, Inc., an industry leader specializing in Club Glove premium performance golf travel products, for $25.2 million including cash consideration of $22.2 million and contingent consideration of $3.0 million, which was subsequently paid in 2023. The trademarks acquired were included in the Company's Titleist golf gear reporting segment and will be amortized over a weighted average life of 10 years.
On November 4, 2022, the Company completed the acquisition of an 80% interest in certain assets and liabilities of TPI EDU, LLC, Onbase University, LP and Racquetfit, LP, (together known as "TPI") for cash consideration of $18.4 million. As part of the acquisition, the Company recorded a redeemable noncontrolling interest of $4.6 million (Note 1). TPI is a leading supplier of online courses, certifications, educational programs, live seminars, and other educational services in the golf, baseball and tennis industries. The results of TPI have been included in the Company's Titleist golf clubs reporting segment since the date of acquisition (Note 14).
On April 1, 2022, the Company acquired the outstanding equity interest in PG Golf LLC for $5.0 million, including cash consideration of $3.6 million and contingent consideration of $1.4 million, which was included in other noncurrent liabilities on the unaudited condensed consolidated balance sheet as of September 30, 2023 and December 31, 2022.
v3.23.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Pay vs Performance Disclosure        
Net income attributable to Acushnet Holdings Corp. $ 57,307 $ 51,837 $ 225,237 $ 199,336
v3.23.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.23.3
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of Acushnet Holdings Corp. (the “Company”), its wholly-owned subsidiaries and less than wholly-owned subsidiaries, including a variable interest entity (“VIE”) in which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.
Certain information in footnote disclosures normally included in annual financial statements has been condensed or omitted for the interim periods presented in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP. The year-end balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the unaudited condensed consolidated financial statements do not include all disclosures required by U.S. GAAP. In the opinion of management, the financial statements contain all normal and recurring adjustments necessary to state fairly the financial position and results of operations of the Company. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of results to be expected for the full year ending December 31, 2023, nor were those of the comparable 2022 periods representative of those actually experienced for the full year ended December 31, 2022. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the fiscal year ended December 31, 2022 included in its Annual Report on Form 10-K filed with the SEC on March 1, 2023.
Use of Estimates
Use of Estimates
The preparation of the Company’s unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect reported amounts of assets and liabilities and related 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. Actual results could differ from these estimates.
Variable Interest Entities
Variable Interest Entities
VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities independently, or (ii) have equity holders that do not have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the entity’s expected losses, or the right to receive the entity’s expected residual returns. The Company consolidates a VIE when it is the primary beneficiary, which is the party that has both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) through its interests in the VIE, the obligation to absorb expected losses or the right to receive expected benefits from the VIE that could potentially be significant to the VIE.
The Company consolidates the accounts of Acushnet Lionscore Limited, a VIE which is 40% owned by the Company. The sole purpose of the VIE is to manufacture the Company’s golf footwear and as such, the Company is deemed to be the primary beneficiary. The Company has presented separately on its unaudited condensed consolidated balance sheets, to the extent material, the assets of its consolidated VIE that can only be used to settle specific obligations of its consolidated VIE and the liabilities of its consolidated VIE for which creditors do not have recourse to its general credit. The general creditors of the VIE do not have recourse to the Company. Certain directors of the VIE have guaranteed the credit lines of the VIE, for which there were no outstanding borrowings as of September 30, 2023 and December 31, 2022. In addition, pursuant to the terms of the agreement governing the VIE, the Company is not required to provide financial support to the VIE.
Noncontrolling Interests and Redeemable Noncontrolling Interests
Noncontrolling Interests and Redeemable Noncontrolling Interests
The ownership interests held by owners other than the Company in less than wholly-owned subsidiaries are classified as noncontrolling interests. The financial results and position of noncontrolling interests are included in the Company’s unaudited condensed consolidated financial statements. The value attributable to the noncontrolling interests is presented on the unaudited condensed consolidated balance sheets, separately from the equity attributable to the Company. Net income (loss) and comprehensive income (loss) attributable to noncontrolling interests are presented separately on the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of comprehensive income, respectively.
Redeemable noncontrolling interests are those noncontrolling interests which are or may become redeemable at a fixed or determinable price on a fixed or determinable date, at the option of the holder, or upon occurrence of an event. The Company initially records the redeemable noncontrolling interest at its acquisition date fair value. The carrying amount of the redeemable noncontrolling interest is subsequently adjusted to the greater amount of either the initial carrying amount, increased or decreased for the redeemable noncontrolling interest's share of comprehensive income (loss) or the redemption value, assuming the noncontrolling interest is redeemable at the balance sheet date. This adjustment is recognized through retained earnings and is not reflected in net income (loss) or comprehensive income (loss). During the nine months ended September 30, 2022, the Company recorded a $1.0 million redemption value adjustment to increase the carrying value of redeemable noncontrolling interests. The value attributable to redeemable noncontrolling interests and any related loans to minority shareholders, which are recorded as a reduction to redeemable noncontrolling interests, are presented in the unaudited condensed consolidated balance sheets as temporary equity between liabilities and shareholders’ equity.
Cash, Cash Equivalents and Restricted Cash Cash, Cash Equivalents and Restricted CashCash held in Company checking accounts is included in cash. Cash equivalents consist of short-term highly liquid investments with original maturities of three months or less which are readily convertible into cash. The Company classifies as restricted certain cash that is not available for use in its operations.
Foreign Currency Transactions
Foreign Currency Transactions
Foreign currency transaction losses included in selling, general and administrative expenses were $0.9 million and $6.2 million for the three months ended September 30, 2023 and 2022, respectively. Foreign currency transaction losses included in selling, general and administrative expenses were $3.4 million and $15.0 million for the nine months ended September 30, 2023 and 2022, respectively.
Recently Adopted Accounting Standards
Recently Adopted Accounting Standards
The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs"). Management determined that recently issued ASUs are not expected to have a material impact on the Company's consolidated financial statements.
v3.23.3
Allowance for Doubtful Accounts (Tables)
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Schedule of Activity Related to the Allowance for Doubtful Accounts
The activity related to the allowance for doubtful accounts was as follows:
Three months ended September 30,Nine months ended September 30,
(in thousands)2023202220232022
Balance at beginning of period$9,008 $7,918 $8,258 $5,980 
Bad debt expense17 193 814 2,648 
Amount of receivables written off (239)(203)(341)(472)
Foreign currency translation(124)(227)(69)(475)
Balance at end of period$8,662 $7,681 $8,662 $7,681 
v3.23.3
Inventories (Tables)
 9 Months Ended
Sep. 30, 2023
Inventory Disclosure [Abstract]  
Schedule of Inventories
The components of inventories were as follows: 
September 30,December 31,
(in thousands)20232022
Raw materials and supplies$147,705 $154,881 
Work-in-process23,922 29,689 
Finished goods357,103 490,114 
Inventories$528,730 $674,684 
v3.23.3
Product Warranty (Tables)
 9 Months Ended
Sep. 30, 2023
Product Warranties Disclosures [Abstract]  
Schedule of Warranty Obligation for Accrued Warranty Expense
The activity related to the Company’s warranty obligation for accrued warranty expense was as follows:
 Three months ended September 30,Nine months ended September 30,
(in thousands)2023202220232022
Balance at beginning of period$5,049 $4,077 $3,951 $4,177 
Provision1,568 1,286 5,313 3,497 
Claims paid/costs incurred(1,685)(1,333)(4,337)(3,489)
Foreign currency translation(61)(150)(56)(305)
Balance at end of period$4,871 $3,880 $4,871 $3,880 
v3.23.3
Debt and Financing Arrangements (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Debt Instrument Redemption
Thereafter, the Issuer may redeem all or part of the Notes at the redemption prices (expressed as percentages of principal amount of the Notes to be redeemed) set forth below, together with any accrued and unpaid interest, if redeemed during the 12-month period beginning on October 15 of the years indicated below:
 YearRedemption Price
2025103.688 %
2026101.844 %
2027 and thereafter100.000 %
v3.23.3
Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Values of Hedge Instruments on the Unaudited Condensed Consolidated Balance Sheets
The fair value of hedge instruments recognized on the unaudited condensed consolidated balance sheets was as follows:
(in thousands)September 30,December 31,
Balance Sheet LocationHedge Instrument Type20232022
Prepaid and other assetsForeign exchange forward$9,495 $7,393 
Interest rate swap997 — 
Other assetsForeign exchange forward113 1,341 
Interest rate swap175 — 
Accrued expenses and other liabilitiesForeign exchange forward1,167 4,710 
Other noncurrent liabilitiesForeign exchange forward— 344 
Schedule of Effect of Hedge Instruments on Accumulated Other Comprehensive Loss, Net of Tax
The hedge instrument gain recognized in accumulated other comprehensive loss, net of tax was as follows:
 Three months endedNine months ended
 September 30,September 30,
(in thousands)2023202220232022
Type of hedge    
Foreign exchange forward$3,658 $6,106 $6,719 $18,155 
Interest rate swap 432 — 1,601 — 
 Total$4,090 $6,106 $8,320 $18,155 
Schedule of Effect of Hedge Instrument in the Unaudited Condensed Consolidated Statement of Operations
The hedge instrument gain recognized on the unaudited condensed consolidated statements of operations was as follows:
 Three months endedNine months ended
 September 30,September 30,
(in thousands)2023202220232022
Location of gain in statements of operations    
Foreign exchange forward:
Cost of goods sold$682 $2,535 $6,975 $5,476 
Selling, general and administrative (1)
1,106 1,779 1,463 4,737 
Total $1,788 $4,314 $8,438 $10,213 
Interest Rate Swap:
Interest expense, net$241 $— $429 $— 
Total$241 $— $429 $— 
_______________________________________________________________________________
(1)    Relates to net gains on foreign exchange forward contracts derived from previously designated cash flow hedges.
v3.23.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 were as follows:
 Fair Value Measurements as of 
 September 30, 2023 using: 
(in thousands)Level 1Level 2Level 3Balance Sheet Location
Assets    
Rabbi trust$3,954 $— $— Prepaid and other assets
Foreign exchange derivative instruments— 9,495 — Prepaid and other assets
Interest rate derivative instruments— 997 — Prepaid and other assets
Deferred compensation program assets651 — — Other assets
Foreign exchange derivative instruments— 113 — Other assets
Interest rate derivative instruments— 175 — Other assets
Total assets$4,605 $10,780 $—  
Liabilities    
Foreign exchange derivative instruments$— $1,167 $— Accrued expenses and other liabilities
Deferred compensation program liabilities651 — — Other noncurrent liabilities
Total liabilities$651 $1,167 $—  
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 were as follows:
 Fair Value Measurements as of 
 December 31, 2022 using: 
(in thousands)Level 1Level 2Level 3Balance Sheet Location
Assets    
Rabbi trust$3,940 $— $— Prepaid and other assets
Foreign exchange derivative instruments— 7,393 — Prepaid and other assets
Deferred compensation program assets631 — — Other assets
Foreign exchange derivative instruments— 1,341 — Other assets
Total assets$4,571 $8,734 $—  
Liabilities    
Foreign exchange derivative instruments$— $4,758 $— Accrued expenses and other liabilities
Deferred compensation program liabilities631 — — Other noncurrent liabilities
Foreign exchange derivative instruments— 344 — Other noncurrent liabilities
Total liabilities$631 $5,102 $—  
v3.23.3
Pension and Other Postretirement Benefits (Tables)
 9 Months Ended
Sep. 30, 2023
Retirement Benefits [Abstract]  
Schedule of Components of Net Periodic Benefit Cost (Credit)
Components of net periodic benefit cost were as follows: 
 Pension BenefitsPostretirement Benefits
 Three months ended September 30,
(in thousands)2023202220232022
Components of net periodic benefit cost    
Service cost$1,411 $1,954 $107 $141 
Interest cost2,832 2,204 166 89 
Expected return on plan assets(1,966)(1,882)— — 
Settlements— 685 — — 
Amortization of net loss (gain)25 989 (223)(120)
Amortization of prior service cost (credit)45 66 (35)(35)
Net periodic benefit cost$2,347 $4,016 $15 $75 
Components of net periodic benefit cost were as follows: 
 Pension BenefitsPostretirement Benefits
 Nine months ended September 30,
(in thousands)2023202220232022
Components of net periodic benefit cost    
Service cost$4,261 $5,953 $322 $422 
Interest cost8,491 6,655 497 265 
Expected return on plan assets(5,894)(5,644)— — 
Settlements(27)685 — — 
Amortization of net loss (gain)70 2,966 (670)(351)
Amortization of prior service cost (credit)137 203 (103)(103)
Net periodic benefit cost$7,038 $10,818 $46 $233 
v3.23.3
Common Stock (Tables)
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Schedule of Declared Dividends Per Share
The Company declared dividends per common share, including DERs (Note 11), during the periods presented as follows:
Dividends per Common Share
Amount
(in thousands)
2023:
Third Quarter$0.195 $13,098 
Second Quarter0.195 13,667 
First Quarter0.195 13,629 
Total dividends declared in 2023$0.585 $40,394 
2022:
Fourth Quarter$0.180 $12,986 
Third Quarter0.180 13,192 
Second Quarter0.180 13,400 
First Quarter0.180 13,473 
Total dividends declared in 2022$0.720 $53,051 
Schedule of Share Repurchase Activity
The Company's share repurchase activity for the periods presented was as follows:
Three months ended September 30,Nine months ended September 30,
(in thousands, except share and per share amounts)2023202220232022
Shares repurchased in the open market:
Shares repurchased 1,153,400 869,368 1,982,289 2,283,573 
Average price$56.28 $47.82 $52.98 $44.78 
Aggregate value $64,918 $41,577 $105,030 $102,252 
Shares repurchased from Magnus:
Shares repurchased— — 2,168,528 699,819 
Average price (1)
$— $— $46.11 $53.59 
Aggregate value$— $— $100,001 $37,501 
Total shares repurchased:
Shares repurchased1,153,400 869,368 4,150,817 2,983,392 
Average price$56.28 $47.82 $49.40 $46.84 
Aggregate value$64,918 $41,577 $205,031 $139,753 
___________________________________
(1)    In accordance with the share repurchase agreements, shares purchased from Magnus are accrued for at the same weighted average price as those purchased on the open market, as if the purchase from Magnus had occurred on the same day. As such, the average price of Magnus repurchases during any given period will differ from open market repurchases due to the settlement of the previously recorded share repurchase liability, as well as open market purchases made after the completion of the Magnus Share repurchase agreements.
v3.23.3
Equity Incentive Plans (Tables)
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Schedule of Restricted and Performance Stock Units
A summary of the Company’s RSUs and PSUs as of September 30, 2023 and changes during the nine months then ended is presented below: 
 Weighted-Weighted-
 NumberAverageNumberAverage
 of RSUsFair Value RSUs
of PSUs (3)
Fair Value PSUs
Outstanding as of December 31, 2022944,695 $37.48 529,366 $36.30 
Granted469,749 47.95 196,572 48.22 
Vested (1)(2)
(520,805)31.66 (231,127)25.73 
Forfeited(19,337)47.00 (12,377)41.78 
Outstanding as of September 30, 2023874,302 $46.36 482,434 $46.08 

_______________________________________________________________________________
(1)    Includes 83,664 shares of common stock related to RSU's that were not delivered as of September 30, 2023.
(2)    Based upon the Company’s level of achievement of the applicable performance metrics, the recipients of the 231,127 PSUs that vested during the nine months ended September 30, 2023, were entitled to receive 460,684 shares of common stock. As of September 30, 2023, there were 229,205 shares of common stock that had not been delivered in connection with the vesting of these PSUs.
(3)    Number of PSUs reflect 100% of the target level grant and may not be indicative of the performance level expected to be achieved.
Schedule of Compensation Expense Recorded in the Consolidated Statement of Operations
Compensation expense recorded related to RSUs and PSUs in the unaudited condensed consolidated statements of operations was as follows:
 Three months endedNine months ended
September 30,September 30,
(in thousands)2023202220232022
RSUs$4,012 $3,149 $12,966 $10,101 
PSUs1,129 2,524 7,911 7,566 
Schedule of Shares of Common Stock Issued
A summary of shares of common stock issued related to the 2015 Plan, including the impact of any DERs issued in common stock, is presented below:
Nine months endedNine months ended
 September 30, 2023September 30, 2022
RSUsPSUsRSUsPSUs
Shares of common stock issued472,766 231,580 525,029 188,527 
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations
(128,291)(91,842)(159,854)(87,215)
Net shares of common stock issued344,475 139,738 365,175 101,312 
Cumulative undelivered shares of common stock457,703 420,447 407,173 191,242 
Schedule of Compensation Expense Related to Equity Incentive Plans
The allocation of share-based compensation expense in the unaudited condensed consolidated statements of operations was as follows:
 Three months endedNine months ended
September 30,September 30,
(in thousands)2023202220232022
Cost of goods sold$340 $342 $1,095 $984 
Selling, general and administrative4,629 5,085 18,875 15,998 
Research and development336 410 1,399 1,177 
Total compensation expense before income tax5,305 5,837 21,369 18,159 
Income tax benefit945 1,219 4,304 3,744 
Total compensation expense, net of income tax$4,360 $4,618 $17,065 $14,415 
v3.23.3
Accumulated Other Comprehensive Loss, Net of Tax (Tables)
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Schedule of Changes in Each Component of Accumulated Comprehensive Loss, Net of Tax Effects
The components of and adjustments to accumulated other comprehensive loss, net of tax, were as follows:
 ForeignInterestAccumulated
 ForeignExchangeRate SwapPension andOther
CurrencyDerivativeDerivativeOtherComprehensive
(in thousands)TranslationInstrumentsInstrumentsPostretirementLoss, Net of Tax
Balance as of December 31, 2022$(97,855)$5,598 $— $(17,411)$(109,668)
Other comprehensive (loss) income before reclassifications(13,053)6,719 1,601 (319)(5,052)
Amounts reclassified from accumulated other comprehensive loss, net of tax— (6,975)(429)(593)(7,997)
Tax benefit (expense)— 17 (286)216 (53)
Balance as of September 30, 2023$(110,908)$5,359 $886 $(18,107)$(122,770)
v3.23.3
Net Income per Common Share (Tables)
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Net Income Per Common Share
The following is a computation of basic and diluted net income per common share attributable to Acushnet Holdings Corp.:
 Three months endedNine months ended
 September 30,September 30,
(in thousands, except share and per share amounts)2023202220232022
Net income attributable to Acushnet Holdings Corp.$57,307 $51,837 $225,237 $199,336 
Weighted average number of common shares:
Basic66,898,142 71,706,824 67,812,790 72,701,647 
RSUs328,411 390,826 290,274 336,486 
PSUs116,707 236,748 104,958 171,586 
Diluted67,343,260 72,334,398 68,208,022 73,209,719 
Net income per common share attributable to Acushnet Holdings Corp.:
Basic$0.86 $0.72 $3.32 $2.74 
Diluted$0.85 $0.72 $3.30 $2.72 
Schedule of Securities Excluded From the Calculation of Diluted Weighted Average Common Shares
The following securities have been excluded from the calculation of diluted weighted-average common shares outstanding as their impact was determined to be anti-dilutive:
 Three months endedNine months ended
 September 30,September 30,
 2023202220232022
RSUs— 852 86,499 126,262 
v3.23.3
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Schedule of Information by Reportable Segment and a Reconciliation to Reported Amounts
Information by reportable segment and a reconciliation to reported amounts are as follows:
Three months ended September 30,Nine months ended September 30,
(in thousands)2023202220232022
Net sales  
Titleist golf balls$192,557 $181,243 $622,125 $546,374 
Titleist golf clubs181,045 153,877 549,846 478,880 
Titleist golf gear47,657 59,194 184,571 172,473 
FootJoy golf wear136,669 131,694 500,174 507,133 
Other35,453 32,238 112,318 118,072 
Total net sales$593,381 $558,246 $1,969,034 $1,822,932 
Segment operating income (loss)  
Titleist golf balls$43,770 $38,281 $131,591 $100,920 
Titleist golf clubs36,509 26,949 118,455 88,236 
Titleist golf gear788 6,430 26,657 20,276 
FootJoy golf wear(1,469)1,919 32,927 45,256 
Other1,693 3,618 12,606 21,212 
Total segment operating income81,291 77,197 322,236 275,900 
Reconciling items:  
Interest expense, net(9,389)(4,534)(30,234)(7,902)
Non-service cost component of net periodic benefit cost(844)(1,996)(2,501)(4,676)
Other(2,760)(1,546)(11,746)(7,126)
Total income before income tax$68,298 $69,121 $277,755 $256,196 
Schedule of Net Sales By Geographical Area
Information as to the Company’s operations in different geographical areas is presented below. Net sales are categorized based on the location in which the sale originates.
Three months ended September 30,Nine months ended September 30,
(in thousands)2023202220232022
United States$352,463 $327,639 $1,123,766 $974,187 
EMEA (1)
75,643 70,614 266,502 274,840 
Japan39,035 34,364 118,183 118,554 
Korea65,652 69,919 241,267 254,089 
Rest of World60,588 55,710 219,316 201,262 
Total net sales$593,381 $558,246 $1,969,034 $1,822,932 
_______________________________________________________________________________
(1) Europe, the Middle East and Africa ("EMEA")
v3.23.3
Commitments and Contingencies (Tables)
 9 Months Ended
Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Purchase Obligations
The Company's purchase obligations as of September 30, 2023 were as follows:
 Payments Due by Period
 Remainder of     
(in thousands)20232024202520262027Thereafter
Purchase obligations (1)
$231,314 $64,231 $9,383 $2,482 $2,417 $9,650 
_______________________________________________________________________________
(1)    The reported amounts exclude those liabilities included on the unaudited condensed consolidated balance sheet as of September 30, 2023.
v3.23.3
Summary of Significant Accounting Policies (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Variable Interest Entity [Line Items]          
Noncontrolling interest. redemption value adjustment to increase carrying value       $ 1,000,000  
Loan to minority shareholders included in temporary equity $ 4,400,000   $ 4,400,000   $ 4,400,000
Restricted cash 1,700,000   1,700,000   1,800,000
Transaction losses included in selling, general and administrative expense (900,000) $ (6,200,000) $ (3,400,000) $ (15,000,000)  
VIE          
Variable Interest Entity [Line Items]          
Ownership percentage     40.00%    
Outstanding borrowings $ 0   $ 0   $ 0
v3.23.3
Allowance for Doubtful Accounts (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]        
Balance at beginning of period $ 9,008 $ 7,918 $ 8,258 $ 5,980
Bad debt expense 17 193 814 2,648
Amount of receivables written off (239) (203) (341) (472)
Foreign currency translation (124) (227) (69) (475)
Balance at end of period $ 8,662 $ 7,681 $ 8,662 $ 7,681
v3.23.3
Inventories (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Inventory Disclosure [Abstract]    
Raw materials and supplies $ 147,705 $ 154,881
Work-in-process 23,922 29,689
Finished goods 357,103 490,114
Inventories $ 528,730 $ 674,684
v3.23.3
Product Warranty (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Activity for accrued warranty expense        
Balance at beginning of period $ 5,049 $ 4,077 $ 3,951 $ 4,177
Provision 1,568 1,286 5,313 3,497
Claims paid/costs incurred (1,685) (1,333) (4,337) (3,489)
Foreign currency translation (61) (150) (56) (305)
Balance at end of period $ 4,871 $ 3,880 $ 4,871 $ 3,880
Minimum        
Product Warranty Liability [Line Items]        
Product warranty period     1 year  
Maximum        
Product Warranty Liability [Line Items]        
Product warranty period     2 years  
v3.23.3
Debt and Financing Arrangements (Details) - USD ($)
Oct. 03, 2023
Sep. 30, 2023
Dec. 31, 2022
Aug. 02, 2022
Aug. 01, 2022
Unsecured Local Credit Facilities          
Line of Credit Facility [Line Items]          
Weighted average interest rate (as percent)   0.53% 0.85%    
Available borrowings   $ 27,500,000      
Other short-term borrowings, outstanding borrowings   34,100,000 $ 40,300,000    
Secured Debt          
Line of Credit Facility [Line Items]          
Amount outstanding         $ 306,300,000
Secured Debt | Senior Unsecured Notes due 2028 | Subsequent Event          
Line of Credit Facility [Line Items]          
Amount outstanding $ 350,000,000        
Debt instrument interest rate stated percentage 7.375%        
Debt issuance costs $ 6,400,000        
Make-whole premium, percentage 1.00%        
Secured Debt | Senior Unsecured Notes due 2028 | Subsequent Event | Debt Instrument, Redemption, Period One          
Line of Credit Facility [Line Items]          
Principal amount redeemed, percentage 100.00%        
Secured Debt | Senior Unsecured Notes due 2028 | Subsequent Event | Debt Instrument, Redemption, Period Two          
Line of Credit Facility [Line Items]          
Principal amount redeemed, percentage 103.688%        
Secured Debt | Senior Unsecured Notes due 2028 | Subsequent Event | Debt Instrument, Redemption, Period Four          
Line of Credit Facility [Line Items]          
Principal amount redeemed, percentage 100.00%        
Revolving Credit Facility          
Line of Credit Facility [Line Items]          
Maximum borrowing capacity       $ 950,000,000  
Outstanding borrowings   $ 557,100,000     $ 72,600,000
Weighted average interest rate (as percent)   6.44%      
Available borrowings   $ 385,100,000      
Letters of credit outstanding   7,800,000      
Revolving Credit Facility | Secured Debt | Subsequent Event          
Line of Credit Facility [Line Items]          
Outstanding borrowings $ 345,600,000        
Letters of Credit          
Line of Credit Facility [Line Items]          
Maximum borrowing capacity   58,000,000      
Outstanding borrowings   10,900,000 10,000,000    
Line of credit secured   $ 7,800,000 $ 7,300,000    
v3.23.3
Debt and Financing Arrangements - Redemption Prices (Details) - Senior Unsecured Notes due 2028 - Secured Debt - Subsequent Event
Oct. 03, 2023
Debt Instrument, Redemption, Period Two  
Line of Credit Facility [Line Items]  
Principal amount redeemed, percentage 103.688%
Debt Instrument, Redemption, Period Three  
Line of Credit Facility [Line Items]  
Principal amount redeemed, percentage 101.844%
Debt Instrument, Redemption, Period Four  
Line of Credit Facility [Line Items]  
Principal amount redeemed, percentage 100.00%
v3.23.3
Derivative Financial Instruments - Narrative (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Derivatives, Fair Value [Line Items]          
Transaction gains included in selling, general and administrative expenses $ (900,000) $ (6,200,000) $ (3,400,000) $ (15,000,000)  
Not Designated As Hedging Instrument          
Derivatives, Fair Value [Line Items]          
Transaction gains included in selling, general and administrative expenses     100,000 $ 1,200,000  
Foreign exchange forward          
Derivatives, Fair Value [Line Items]          
Expected reclassification of net gain recorded in accumulated other comprehensive loss, net of tax into cost of goods sold during next twelve months     7,700,000    
Foreign exchange forward | Derivative Designated As Hedging          
Derivatives, Fair Value [Line Items]          
Notional amount 193,200,000   193,200,000   $ 242,400,000
Foreign exchange forward | Not Designated As Hedging Instrument          
Derivatives, Fair Value [Line Items]          
Notional amount 0   $ 0   4,000,000
Foreign exchange forward | Maximum          
Derivatives, Fair Value [Line Items]          
Term of derivative contract (in months)     24 months    
Interest rate swap          
Derivatives, Fair Value [Line Items]          
Expected reclassification of net gain recorded in accumulated other comprehensive loss, net of tax into cost of goods sold during next twelve months     $ 1,000,000    
Interest rate swap | Derivative Designated As Hedging          
Derivatives, Fair Value [Line Items]          
Notional amount $ 100,000,000   $ 100,000,000   $ 0
v3.23.3
Derivative Financial Instruments - Schedule of Fair Values of Hedge Instruments on the Unaudited Condensed Consolidated Balance Sheets (Details) - Derivative Designated As Hedging - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Foreign exchange forward | Prepaid and other assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives $ 9,495 $ 7,393
Foreign exchange forward | Other assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives 113 1,341
Foreign exchange forward | Accrued expenses and other liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives 1,167 4,710
Foreign exchange forward | Other noncurrent liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives 0 344
Interest rate swap | Prepaid and other assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives 997 0
Interest rate swap | Other assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives $ 175 $ 0
v3.23.3
Derivative Financial Instruments - Schedule of Effect of Hedge Instruments on Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Derivative Instruments, Gain (Loss) [Line Items]        
 Total $ 4,090 $ 6,106 $ 8,320 $ 18,155
Cash Flow Hedge | Derivative Designated As Hedging        
Derivative Instruments, Gain (Loss) [Line Items]        
 Total 4,090 6,106 8,320 18,155
Foreign exchange forward | Cash Flow Hedge | Derivative Designated As Hedging        
Derivative Instruments, Gain (Loss) [Line Items]        
 Total 3,658 6,106 6,719 18,155
Interest rate swap | Cash Flow Hedge | Derivative Designated As Hedging        
Derivative Instruments, Gain (Loss) [Line Items]        
 Total $ 432 $ 0 $ 1,601 $ 0
v3.23.3
Derivative Financial Instruments - Schedule of Effect of Hedge Instrument in the Unaudited Condensed Consolidated Statement of Operations (Details) - Derivative Designated As Hedging - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Foreign exchange forward        
Derivative Instruments, Gain (Loss) [Line Items]        
Gain recognized on unaudited condensed consolidated statements of operations $ 1,788 $ 4,314 $ 8,438 $ 10,213
Foreign exchange forward | Cost of goods sold        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of goods sold Cost of goods sold Cost of goods sold Cost of goods sold
Gain recognized on unaudited condensed consolidated statements of operations $ 682 $ 2,535 $ 6,975 $ 5,476
Foreign exchange forward | Selling, general and administrative        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, general and administrative Selling, general and administrative Selling, general and administrative Selling, general and administrative
Gain recognized on unaudited condensed consolidated statements of operations $ 1,106 $ 1,779 $ 1,463 $ 4,737
Interest rate swap        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Interest expense, net Interest expense, net Interest expense, net Interest expense, net
Gain recognized on unaudited condensed consolidated statements of operations $ 241 $ 0 $ 429 $ 0
v3.23.3
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Level 1    
Assets    
Rabbi trust $ 3,954 $ 3,940
Deferred compensation program assets 651 631
Total assets 4,605 4,571
Liabilities    
Deferred compensation program liabilities 651 631
Total liabilities 651 631
Level 1 | Foreign exchange derivative instruments    
Assets    
Foreign exchange derivative instruments 0 0
Derivative assets, noncurrent 0 0
Liabilities    
Derivative instruments, current 0 0
Derivative instruments, noncurrent   0
Level 1 | Interest rate derivative instruments    
Assets    
Interest rate derivative instruments 0  
Derivative assets, noncurrent 0  
Level 2    
Assets    
Rabbi trust 0 0
Deferred compensation program assets 0 0
Total assets 10,780 8,734
Liabilities    
Deferred compensation program liabilities 0 0
Total liabilities 1,167 5,102
Level 2 | Foreign exchange derivative instruments    
Assets    
Foreign exchange derivative instruments 9,495 7,393
Derivative assets, noncurrent 113 1,341
Liabilities    
Derivative instruments, current 1,167 4,758
Derivative instruments, noncurrent   344
Level 2 | Interest rate derivative instruments    
Assets    
Interest rate derivative instruments 997  
Derivative assets, noncurrent 175  
Level 3    
Assets    
Rabbi trust 0 0
Deferred compensation program assets 0 0
Total assets 0 0
Liabilities    
Deferred compensation program liabilities 0 0
Total liabilities 0 0
Level 3 | Foreign exchange derivative instruments    
Assets    
Foreign exchange derivative instruments 0 0
Derivative assets, noncurrent 0 0
Liabilities    
Derivative instruments, current 0 0
Derivative instruments, noncurrent   $ 0
Level 3 | Interest rate derivative instruments    
Assets    
Interest rate derivative instruments 0  
Derivative assets, noncurrent $ 0  
v3.23.3
Pension and Other Postretirement Benefits (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Pension Benefits        
Components of net periodic benefit cost        
Service cost $ 1,411 $ 1,954 $ 4,261 $ 5,953
Interest cost 2,832 2,204 8,491 6,655
Expected return on plan assets (1,966) (1,882) (5,894) (5,644)
Settlements 0 685 (27) 685
Amortization of net loss (gain) 25 989 70 2,966
Amortization of prior service cost (credit) 45 66 137 203
Net periodic benefit cost 2,347 4,016 7,038 10,818
Postretirement Benefits        
Components of net periodic benefit cost        
Service cost 107 141 322 422
Interest cost 166 89 497 265
Expected return on plan assets 0 0 0 0
Settlements 0 0 0 0
Amortization of net loss (gain) (223) (120) (670) (351)
Amortization of prior service cost (credit) (35) (35) (103) (103)
Net periodic benefit cost $ 15 $ 75 $ 46 $ 233
v3.23.3
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Income Tax Disclosure [Abstract]        
Decrease in income tax expense $ 4,500   $ 100  
Income tax expense $ 11,252 $ 15,797 $ 52,726 $ 52,786
Effective tax rate (as percent) 16.50% 22.90% 19.00% 20.60%
v3.23.3
Common Stock - Schedule of Declared Dividends Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Equity [Abstract]                    
Dividends per Common Share (in dollars per share) $ 0.195 $ 0.195 $ 0.195 $ 0.180 $ 0.180 $ 0.180 $ 0.180 $ 0.585   $ 0.720
Amount $ 13,098 $ 13,667 $ 13,629 $ 12,986 $ 13,192 $ 13,400 $ 13,473 $ 40,394 $ 40,065 $ 53,051
v3.23.3
Common Stock - Narrative (Details) - USD ($)
 1 Months Ended 3 Months Ended 9 Months Ended
Nov. 03, 2023
Jan. 23, 2023
Jan. 13, 2023
Jan. 24, 2022
Oct. 27, 2023
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2023
Jun. 09, 2023
Dec. 31, 2022
Aug. 30, 2022
Jun. 16, 2022
Nov. 08, 2021
Dividends Payable [Line Items]                              
Issued and outstanding common stock authorized to repurchase           $ 700,000,000   $ 700,000,000              
Shares repurchased (in shares)           1,153,400 869,368 4,150,817 2,983,392            
Aggregate value           $ 64,918,000 $ 41,577,000 $ 205,031,000 $ 139,753,000            
Accrued share repurchase (in shares)           1,439,400   1,439,400       2,000,839      
Amount remaining under current authorizations           $ 202,400,000   $ 202,400,000              
Magnus                              
Dividends Payable [Line Items]                              
Issued and outstanding common stock authorized to repurchase                         $ 100,000,000 $ 75,000,000  
Stock repurchase program, authorized amount                     $ 100,000,000       $ 37,500,000
Shares repurchased (in shares)   2,168,528   699,819   0 0 2,168,528 699,819            
Aggregate value   $ 100,000,000   $ 37,500,000   $ 0 $ 0 $ 100,001,000 $ 37,501,000            
Share repurchase liability                     $ 79,800,000 $ 92,600,000      
Accrued share repurchase (in shares)                       2,000,839      
Amount remaining under current authorizations           $ 100,000,000   $ 100,000,000              
Open Market                              
Dividends Payable [Line Items]                              
Shares repurchased (in shares)     167,689     1,153,400 869,368 1,982,289 2,283,573            
Aggregate value     $ 7,400,000     $ 64,918,000 $ 41,577,000 $ 105,030,000 $ 102,252,000            
Aggregate purchases of shares in open market before shares will be purchased from Magnus           $ 100,000,000   $ 100,000,000              
Open Market | Subsequent Event                              
Dividends Payable [Line Items]                              
Shares repurchased (in shares)         385,594                    
Aggregate value         $ 20,200,000                    
Aggregate purchases of shares in open market before shares will be purchased from Magnus         $ 100,000,000                    
Forecast                              
Dividends Payable [Line Items]                              
Dividends declared and payable (in dollars per share)                   $ 0.195          
Forecast | Magnus                              
Dividends Payable [Line Items]                              
Shares repurchased (in shares) 1,824,994                            
Aggregate value $ 100,000,000                            
v3.23.3
Common Stock - Schedule of Share Repurchase Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Jan. 23, 2023
Jan. 13, 2023
Jan. 24, 2022
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dividends Payable [Line Items]              
Shares repurchased (in shares)       1,153,400 869,368 4,150,817 2,983,392
Average price (in dollars per share)       $ 56.28 $ 47.82 $ 49.40 $ 46.84
Aggregate value       $ 64,918 $ 41,577 $ 205,031 $ 139,753
Open Market              
Dividends Payable [Line Items]              
Shares repurchased (in shares)   167,689   1,153,400 869,368 1,982,289 2,283,573
Average price (in dollars per share)       $ 56.28 $ 47.82 $ 52.98 $ 44.78
Aggregate value   $ 7,400   $ 64,918 $ 41,577 $ 105,030 $ 102,252
Magnus              
Dividends Payable [Line Items]              
Shares repurchased (in shares) 2,168,528   699,819 0 0 2,168,528 699,819
Average price (in dollars per share)       $ 0 $ 0 $ 46.11 $ 53.59
Aggregate value $ 100,000   $ 37,500 $ 0 $ 0 $ 100,001 $ 37,501
v3.23.3
Equity Incentive Plans - Narrative (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2023
USD ($)
RSUs | 2015 Omnibus Incentive Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation expense $ 24.1
Weighted average period (in years) 1 year 4 months 24 days
RSUs | Company Officers  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period (in years) 3 years
Vesting percentage 33.33%
RSUs | Officers, Employees, Consultants and Advisors  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period (in years) 3 years
RSUs | Other Employees  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percentage 33.33%
PSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period (in years) 3 years
PSUs | 2015 Omnibus Incentive Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation expense $ 12.0
Weighted average period (in years) 1 year 10 months 24 days
PSUs | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percentage 0.00%
PSUs | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percentage 200.00%
v3.23.3
Equity Incentive Plans - Schedule of Restricted and Performance Stock Units (Details) - 2015 Omnibus Incentive Plan
 9 Months Ended
Sep. 30, 2023
$ / shares
shares
Common Stock  
Weighted - Average Fair Value  
Undelivered (in shares) 460,684
RSUs  
Number of Units  
Outstanding at beginning of the period (in shares) 944,695
Granted (in shares) 469,749
Vested (in shares) (520,805)
Forfeited (in shares) (19,337)
Outstanding at end of the period (in shares) 874,302
Weighted - Average Fair Value  
Outstanding at beginning of the period (in dollars per share) | $ / shares $ 37.48
Granted (in dollars per share) | $ / shares 47.95
Vested (in dollars per share) | $ / shares 31.66
Forfeited (in dollars per share) | $ / shares 47.00
Outstanding at end of the period (in dollars per share) | $ / shares $ 46.36
Undelivered (in shares) 83,664
PSUs  
Number of Units  
Outstanding at beginning of the period (in shares) 529,366
Granted (in shares) 196,572
Vested (in shares) (231,127)
Forfeited (in shares) (12,377)
Outstanding at end of the period (in shares) 482,434
Weighted - Average Fair Value  
Outstanding at beginning of the period (in dollars per share) | $ / shares $ 36.30
Granted (in dollars per share) | $ / shares 48.22
Vested (in dollars per share) | $ / shares 25.73
Forfeited (in dollars per share) | $ / shares 41.78
Outstanding at end of the period (in dollars per share) | $ / shares $ 46.08
Undelivered (in shares) 229,205
Achieved target level of performance (in percent) 100.00%
v3.23.3
Equity Incentive Plans - Schedule of Compensation Expense Recorded in the Consolidated Statement of Operations (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Compensation expense $ 5,305 $ 5,837 $ 21,369 $ 18,159
RSUs        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Compensation expense 4,012 3,149    
RSUs | 2015 Omnibus Incentive Plan        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Compensation expense     12,966 10,101
PSUs        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Compensation expense $ 1,129 $ 2,524    
PSUs | 2015 Omnibus Incentive Plan        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Compensation expense     $ 7,911 $ 7,566
v3.23.3
Equity Incentive Plans - Schedule of Shares of Common Stock Issued (Details) - 2015 Omnibus Incentive Plan - shares
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
RSUs    
Class of Stock [Line Items]    
Cumulative undelivered shares of common stock (in shares) 83,664  
PSUs    
Class of Stock [Line Items]    
Cumulative undelivered shares of common stock (in shares) 229,205  
Common Stock | RSUs    
Class of Stock [Line Items]    
Shares of common stock issued (in shares) 472,766 525,029
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations (in shares) (128,291) (159,854)
Net shares of common stock issued (in shares) 344,475 365,175
Cumulative undelivered shares of common stock (in shares) 457,703 407,173
Common Stock | PSUs    
Class of Stock [Line Items]    
Shares of common stock issued (in shares) 231,580 188,527
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations (in shares) (91,842) (87,215)
Net shares of common stock issued (in shares) 139,738 101,312
Cumulative undelivered shares of common stock (in shares) 420,447 191,242
v3.23.3
Equity Incentive Plans - Schedule of Compensation Expense Related to Equity Incentive Plans (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total compensation expense before income tax $ 5,305 $ 5,837 $ 21,369 $ 18,159
Income tax benefit 945 1,219 4,304 3,744
Total compensation expense, net of income tax 4,360 4,618 17,065 14,415
Cost of goods sold        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total compensation expense before income tax 340 342 1,095 984
Selling, general and administrative        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total compensation expense before income tax 4,629 5,085 18,875 15,998
Research and development        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total compensation expense before income tax $ 336 $ 410 $ 1,399 $ 1,177
v3.23.3
Accumulated Other Comprehensive Loss, Net of Tax (Details)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning balance $ 976,703
Other comprehensive (loss) income before reclassifications (5,052)
Amounts reclassified from accumulated other comprehensive loss, net of tax (7,997)
Tax benefit (expense) (53)
Ending balance 966,646
Foreign Currency Translation  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning balance (97,855)
Other comprehensive (loss) income before reclassifications (13,053)
Amounts reclassified from accumulated other comprehensive loss, net of tax 0
Tax benefit (expense) 0
Ending balance (110,908)
Gains (Losses) on Derivative Instruments | Foreign Exchange Derivative Instruments  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning balance 5,598
Other comprehensive (loss) income before reclassifications 6,719
Amounts reclassified from accumulated other comprehensive loss, net of tax (6,975)
Tax benefit (expense) 17
Ending balance 5,359
Gains (Losses) on Derivative Instruments | Interest rate swap  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning balance 0
Other comprehensive (loss) income before reclassifications 1,601
Amounts reclassified from accumulated other comprehensive loss, net of tax (429)
Tax benefit (expense) (286)
Ending balance 886
Pension and Other Postretirement  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning balance (17,411)
Other comprehensive (loss) income before reclassifications (319)
Amounts reclassified from accumulated other comprehensive loss, net of tax (593)
Tax benefit (expense) 216
Ending balance (18,107)
Accumulated Other Comprehensive Loss, Net of Tax  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning balance (109,668)
Ending balance $ (122,770)
v3.23.3
Net Income per Common Share - Schedule of Computation of Basic and Diluted Net Income Per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Net income attributable to Acushnet Holdings Corp. $ 57,307 $ 51,837 $ 225,237 $ 199,336
Weighted average number of common shares:        
Basic (in shares) 66,898,142 71,706,824 67,812,790 72,701,647
Diluted (in shares) 67,343,260 72,334,398 68,208,022 73,209,719
Net income per common share attributable to Acushnet Holdings Corp.:        
Basic (in dollars per share) $ 0.86 $ 0.72 $ 3.32 $ 2.74
Diluted (in dollars per share) $ 0.85 $ 0.72 $ 3.30 $ 2.72
RSUs        
Weighted average number of common shares:        
Basic (in shares) 328,411 390,826 290,274 336,486
PSUs        
Weighted average number of common shares:        
Basic (in shares) 116,707 236,748 104,958 171,586
v3.23.3
Net Income per Common Share - Schedule of Securities Excluded From the Calculation of Diluted Weighted Average Common Shares (Details) - shares
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
RSUs        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Securities excluded from calculation of diluted weighted-average common shares outstanding as their impact was anti-dilutive (in shares) 0 852 86,499 126,262
v3.23.3
Segment Information - Schedule of Information by Reportable Segment and a Reconciliation to Reported Amounts (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
Sep. 30, 2023
USD ($)
segment
Sep. 30, 2022
USD ($)
Segment Reporting [Abstract]        
Number of reportable segments | segment     4  
Segment Reporting Information [Line Items]        
Net sales $ 593,381 $ 558,246 $ 1,969,034 $ 1,822,932
Segment operating income (loss) 78,605 76,010 309,999 269,926
Reconciling items:        
Interest expense, net (9,389) (4,534) (30,234) (7,902)
Income before income taxes 68,298 69,121 277,755 256,196
Operating Segments        
Segment Reporting Information [Line Items]        
Net sales 593,381 558,246 1,969,034 1,822,932
Segment operating income (loss) 81,291 77,197 322,236 275,900
Reconciling Items        
Reconciling items:        
Interest expense, net (9,389) (4,534) (30,234) (7,902)
Non-service cost component of net periodic benefit cost (844) (1,996) (2,501) (4,676)
Other (2,760) (1,546) (11,746) (7,126)
Titleist golf balls | Operating Segments        
Segment Reporting Information [Line Items]        
Net sales 192,557 181,243 622,125 546,374
Segment operating income (loss) 43,770 38,281 131,591 100,920
Titleist golf clubs | Operating Segments        
Segment Reporting Information [Line Items]        
Net sales 181,045 153,877 549,846 478,880
Segment operating income (loss) 36,509 26,949 118,455 88,236
Titleist golf gear | Operating Segments        
Segment Reporting Information [Line Items]        
Net sales 47,657 59,194 184,571 172,473
Segment operating income (loss) 788 6,430 26,657 20,276
FootJoy golf wear | Operating Segments        
Segment Reporting Information [Line Items]        
Net sales 136,669 131,694 500,174 507,133
Segment operating income (loss) (1,469) 1,919 32,927 45,256
Other | Operating Segments        
Segment Reporting Information [Line Items]        
Net sales 35,453 32,238 112,318 118,072
Segment operating income (loss) $ 1,693 $ 3,618 $ 12,606 $ 21,212
v3.23.3
Segment Information - Schedule of Net Sales By Geographical Area (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total net sales $ 593,381 $ 558,246 $ 1,969,034 $ 1,822,932
United States        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total net sales 352,463 327,639 1,123,766 974,187
EMEA        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total net sales 75,643 70,614 266,502 274,840
Japan        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total net sales 39,035 34,364 118,183 118,554
Korea        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total net sales 65,652 69,919 241,267 254,089
Rest of World        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total net sales $ 60,588 $ 55,710 $ 219,316 $ 201,262
v3.23.3
Commitments and Contingencies (Details)
$ in Thousands
Sep. 30, 2023
USD ($)
Payments Due by Period  
Remainder of 2023 $ 231,314
2024 64,231
2025 9,383
2026 2,482
2027 2,417
Thereafter $ 9,650
v3.23.3
Other Business Developments (Details) - USD ($)
$ in Thousands
 1 Months Ended 9 Months Ended
Nov. 04, 2022
Apr. 01, 2022
Jan. 31, 2023
Sep. 30, 2023
Sep. 30, 2022
Business Acquisition [Line Items]          
Payments to acquire intangible assets       $ 25,235 $ 0
Contingent consideration (Note 16)       $ 0 $ 1,400
TPI          
Business Acquisition [Line Items]          
Cash consideration $ 18,400        
Percent of certain assets and liabilities acquired 80.00%        
Redeemable noncontrolling interest $ 4,600        
PG Golf LLC          
Business Acquisition [Line Items]          
Cash consideration   $ 3,600      
Consideration transferred   5,000      
Contingent consideration (Note 16)   $ 1,400      
Trademarks, Domains and Products | Club Glove          
Business Acquisition [Line Items]          
Payments to acquire intangible assets     $ 25,200    
Cash consideration     22,200    
Asset acquisition, contingent consideration     $ 3,000    
Weighted average useful life     10 years    
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