Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
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 | 508 | |
Local Phone Number | 979‑2000 | |
Title of 12(b) Security | Common Stock - $0.001 par value per share | |
Trading Symbol | GOLF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 75,365,727 | |
Entity Central Index Key | 0001672013 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and restricted cash ($10,197 and $8,436 attributable to the variable interest entity (VIE)) | $ 42,966 | $ 31,014 |
Accounts receivable, net | 306,399 | 186,114 |
Inventories ($8,813 and $9,658 attributable to the VIE) | 324,588 | 361,207 |
Other assets | 90,740 | 85,666 |
Total current assets | 764,693 | 664,001 |
Property, plant and equipment, net ($11,237 and $11,615 attributable to the VIE) | 221,035 | 228,388 |
Goodwill ($32,312 and $32,312 attributable to the VIE) | 209,564 | 209,671 |
Intangible assets, net | 474,761 | 478,257 |
Deferred income taxes | 59,446 | 78,028 |
Other assets ($2,565 and $2,593 attributable to the VIE) | 77,938 | 33,276 |
Total assets | 1,807,437 | 1,691,621 |
Current liabilities | ||
Short-term debt | 42,161 | 920 |
Current portion of long-term debt | 35,625 | 35,625 |
Accounts payable ($4,292 and $6,882 attributable to the VIE) | 94,050 | 86,045 |
Accrued taxes | 22,897 | 38,268 |
Accrued compensation and benefits ($1,338 and $1,634 attributable to the VIE) | 62,788 | 77,181 |
Accrued expenses and other liabilities ($2,779 and $3,462 attributable to the VIE) | 98,545 | 56,828 |
Total current liabilities | 356,066 | 294,867 |
Long-term debt | 329,594 | 346,953 |
Deferred income taxes | 4,633 | 4,635 |
Accrued pension and other postretirement benefits | 106,701 | 102,077 |
Other noncurrent liabilities ($5,123 and $4,831 attributable to the VIE) | 52,406 | 16,105 |
Total liabilities | 849,400 | 764,637 |
Commitments and contingencies (Note 15) | ||
Shareholders' equity | ||
Common stock, $0.001 par value, 500,000,000 shares authorized; 75,614,015 and 74,760,062 shares issued | 76 | 75 |
Additional paid-in capital | 905,351 | 910,890 |
Accumulated other comprehensive loss, net of tax | (91,647) | (89,039) |
Retained earnings | 124,827 | 72,946 |
Treasury stock, at cost; 506,770 shares (including 253,385 of accrued share repurchase) and no shares (Note 10) | (12,356) | 0 |
Total equity attributable to Acushnet Holdings Corp. | 926,251 | 894,872 |
Noncontrolling interests | 31,786 | 32,112 |
Total shareholders' equity | 958,037 | 926,984 |
Total liabilities and shareholders' equity | $ 1,807,437 | $ 1,691,621 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
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) | 75,614,015 | 74,760,062 |
Treasury stock, at cost (in shares) | 506,770 | 0 |
Accrued share repurchase (in shares) | 253,385 | |
Cash and restricted cash | $ 42,966 | $ 31,014 |
Inventories | 324,588 | 361,207 |
Property, plant and equipment, net | 221,035 | 228,388 |
Goodwill | 209,564 | 209,671 |
Other assets | 77,938 | 33,276 |
Accounts payable | 94,050 | 86,045 |
Accrued compensation and benefits | 62,788 | 77,181 |
Accrued expenses and other liabilities | 98,545 | 56,828 |
Other noncurrent liabilities | 52,406 | 16,105 |
VIE | ||
Cash and restricted cash | 10,197 | 8,436 |
Inventories | 8,813 | 9,658 |
Property, plant and equipment, net | 11,237 | 11,615 |
Goodwill | 32,312 | 32,312 |
Other assets | 2,565 | 2,593 |
Accounts payable | 4,292 | 6,882 |
Accrued compensation and benefits | 1,338 | 1,634 |
Accrued expenses and other liabilities | 2,779 | 3,462 |
Other noncurrent liabilities | $ 5,123 | $ 4,831 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 462,218 | $ 478,138 | $ 895,920 | $ 919,939 |
Cost of goods sold | 216,175 | 227,328 | 427,720 | 441,455 |
Gross profit | 246,043 | 250,810 | 468,200 | 478,484 |
Operating expenses: | ||||
Selling, general and administrative | 170,223 | 171,685 | 325,649 | 323,053 |
Research and development | 12,920 | 12,916 | 25,671 | 25,308 |
Intangible amortization | 1,765 | 1,630 | 3,518 | 3,260 |
Income from operations | 61,135 | 64,579 | 113,362 | 126,863 |
Interest expense, net | 5,213 | 5,247 | 10,096 | 9,655 |
Other expense (income), net | 781 | 544 | (189) | 110 |
Income before income taxes | 55,141 | 58,788 | 103,455 | 117,098 |
Income tax expense | 16,239 | 18,419 | 28,514 | 33,639 |
Net income | 38,902 | 40,369 | 74,941 | 83,459 |
Less: Net income attributable to noncontrolling interests | (414) | (462) | (1,527) | (2,068) |
Net income attributable to Acushnet Holdings Corp. | $ 38,488 | $ 39,907 | $ 73,414 | $ 81,391 |
Net income per common share attributable to Acushnet Holdings Corp.: | ||||
Basic (in dollars per share) | $ 0.51 | $ 0.53 | $ 0.97 | $ 1.09 |
Diluted (in dollars per share) | $ 0.51 | $ 0.53 | $ 0.97 | $ 1.09 |
Weighted average number of common shares: | ||||
Basic (in shares) | 75,618,717 | 74,762,469 | 75,811,780 | 74,706,663 |
Diluted (in shares) | 75,858,114 | 75,028,658 | 76,060,003 | 74,911,551 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 38,902 | $ 40,369 | $ 74,941 | $ 83,459 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (4,217) | (18,444) | (375) | (6,531) |
Cash flow derivative instruments | ||||
Unrealized holding gains (losses) arising during period | (1,406) | (47) | ||
Unrealized holding gains (losses) arising during period | 8,940 | 1,859 | ||
Reclassification adjustments included in net income | (2,827) | (4,276) | ||
Reclassification adjustments included in net income | 1,222 | 1,930 | ||
Tax (expense) benefit | 1,026 | 956 | ||
Tax (expense) benefit | (2,831) | (718) | ||
Cash flow derivative instruments, net | (3,207) | (3,367) | ||
Cash flow derivative instruments, net | 7,331 | 3,071 | ||
Pension and other postretirement benefits | ||||
Pension and other postretirement benefits adjustments | 1,684 | 962 | 1,481 | 996 |
Tax expense | (404) | (142) | (347) | (148) |
Pension and other postretirement benefits adjustments, net | 1,280 | 820 | 1,134 | 848 |
Total other comprehensive loss | (6,144) | (10,293) | (2,608) | (2,612) |
Comprehensive income | 32,758 | 30,076 | 72,333 | 80,847 |
Less: Comprehensive income attributable to noncontrolling interests | (414) | (462) | (1,527) | (2,068) |
Comprehensive income attributable to Acushnet Holdings Corp. | $ 32,344 | $ 29,614 | $ 70,806 | $ 78,779 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net income | $ 74,941 | $ 83,459 |
Adjustments to reconcile net income to cash provided by operating activities | ||
Depreciation and amortization | 19,596 | 20,712 |
Unrealized foreign exchange loss (gain) | 730 | (516) |
Amortization of debt issuance costs | 738 | 671 |
Share-based compensation | 5,386 | 9,110 |
Loss on disposals of property, plant and equipment | 2 | 83 |
Deferred income taxes | 17,355 | 17,187 |
Changes in operating assets and liabilities | ||
Accounts receivable | (120,056) | (121,237) |
Inventories | 37,420 | 44,560 |
Accounts payable | 9,675 | (1,467) |
Accrued taxes | (15,230) | (5,257) |
Other assets and liabilities | 9,454 | 17,252 |
Cash flows provided by operating activities | 40,011 | 64,557 |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (10,595) | (13,657) |
Business acquisitions, net of cash acquired | 0 | (2,477) |
Cash flows used in investing activities | (10,595) | (16,134) |
Cash flows from financing activities | ||
Proceeds from short-term borrowings, net | 41,939 | 18,449 |
Repayments of delayed draw term loan A facility | (3,750) | (27,500) |
Repayment of term loan A facility | (14,063) | (9,375) |
Purchases of common stock | (6,178) | 0 |
Debt issuance costs | 0 | (380) |
Dividends paid on common stock | (22,433) | (19,619) |
Dividends paid to noncontrolling interests | (1,853) | (6,450) |
Payment of employee restricted stock tax withholdings | (10,924) | (2,634) |
Cash flows used in financing activities | (17,262) | (47,509) |
Effect of foreign exchange rate changes on cash | (202) | (958) |
Net increase (decrease) in cash | 11,952 | (44) |
Cash and restricted cash, beginning of year | 31,014 | 47,722 |
Cash and restricted cash, end of period | 42,966 | 47,678 |
Supplemental information | ||
Non-cash additions to property, plant and equipment | 830 | 1,381 |
Dividend equivalents rights (DERs) declared not paid | 387 | 398 |
Share repurchase liability (Note 10) | $ 6,178 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
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 at Dec. 31, 2017 | $ 853,973 | $ 821,309 | $ 74 | $ 894,727 | $ (81,691) | $ 8,199 | $ 0 | $ 32,664 |
Beginning balance (in shares) at Dec. 31, 2017 | 74,479 | |||||||
Changes in stockholders' equity | ||||||||
Dividends and dividend equivalents declared | (9,917) | |||||||
Ending balance at Mar. 31, 2018 | 892,650 | 860,780 | $ 75 | 896,450 | (80,142) | 44,397 | 0 | 31,870 |
Ending balance (in shares) at Mar. 31, 2018 | 74,744 | |||||||
Beginning balance at Dec. 31, 2017 | 853,973 | 821,309 | $ 74 | 894,727 | (81,691) | 8,199 | 0 | 32,664 |
Beginning balance (in shares) at Dec. 31, 2017 | 74,479 | |||||||
Changes in stockholders' equity | ||||||||
Net income | 83,459 | 81,391 | 81,391 | 2,068 | ||||
Other comprehensive income (loss) | (2,612) | (2,612) | (2,612) | |||||
Share-based compensation | 9,341 | 9,341 | 9,341 | |||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes | (2,629) | (2,629) | $ 1 | (2,630) | ||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (in shares) | 276 | |||||||
Share repurchase liability (Note 10) | 0 | |||||||
Dividends and dividend equivalents declared | (19,834) | (19,834) | (19,834) | |||||
Dividends declared to noncontrolling interests | (6,450) | (6,450) | ||||||
Ending balance at Jun. 30, 2018 | 913,747 | 885,465 | $ 75 | 901,438 | (90,435) | 74,387 | 0 | 28,282 |
Ending balance (in shares) at Jun. 30, 2018 | 74,755 | |||||||
Beginning balance at Dec. 31, 2017 | 853,973 | 821,309 | $ 74 | 894,727 | (81,691) | 8,199 | 0 | 32,664 |
Beginning balance (in shares) at Dec. 31, 2017 | 74,479 | |||||||
Changes in stockholders' equity | ||||||||
Dividends and dividend equivalents declared | (39,756) | |||||||
Ending balance at Dec. 31, 2018 | 926,984 | 894,872 | $ 75 | 910,890 | (89,039) | 72,946 | 0 | 32,112 |
Ending balance (in shares) at Dec. 31, 2018 | 74,760 | |||||||
Beginning balance at Mar. 31, 2018 | 892,650 | 860,780 | $ 75 | 896,450 | (80,142) | 44,397 | 0 | 31,870 |
Beginning balance (in shares) at Mar. 31, 2018 | 74,744 | |||||||
Changes in stockholders' equity | ||||||||
Net income | 40,369 | 39,907 | 39,907 | 462 | ||||
Other comprehensive income (loss) | (10,293) | (10,293) | (10,293) | |||||
Share-based compensation | 4,984 | 4,984 | 4,984 | |||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes | 4 | 4 | $ 0 | 4 | ||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (in shares) | 11 | |||||||
Dividends and dividend equivalents declared | (9,917) | (9,917) | (9,917) | |||||
Dividends declared to noncontrolling interests | (4,050) | (4,050) | ||||||
Ending balance at Jun. 30, 2018 | 913,747 | 885,465 | $ 75 | 901,438 | (90,435) | 74,387 | 0 | 28,282 |
Ending balance (in shares) at Jun. 30, 2018 | 74,755 | |||||||
Beginning balance at Dec. 31, 2018 | 926,984 | 894,872 | $ 75 | 910,890 | (89,039) | 72,946 | 0 | 32,112 |
Beginning balance (in shares) at Dec. 31, 2018 | 74,760 | |||||||
Changes in stockholders' equity | ||||||||
Dividends and dividend equivalents declared | (10,782) | |||||||
Ending balance at Mar. 31, 2019 | 946,637 | 913,412 | $ 76 | 901,749 | (85,503) | 97,090 | 0 | 33,225 |
Ending balance (in shares) at Mar. 31, 2019 | 75,604 | |||||||
Beginning balance at Dec. 31, 2018 | 926,984 | 894,872 | $ 75 | 910,890 | (89,039) | 72,946 | 0 | 32,112 |
Beginning balance (in shares) at Dec. 31, 2018 | 74,760 | |||||||
Changes in stockholders' equity | ||||||||
Net income | 74,941 | 73,414 | 73,414 | 1,527 | ||||
Other comprehensive income (loss) | (2,608) | (2,608) | (2,608) | |||||
Share-based compensation | 5,386 | 5,386 | 5,386 | |||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes | (10,924) | (10,924) | $ 1 | (10,925) | ||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (in shares) | 854 | |||||||
Purchases of common stock (Note 10) | (6,178) | (6,178) | (6,178) | |||||
Share repurchase liability (Note 10) | (6,178) | (6,178) | (6,178) | |||||
Dividends and dividend equivalents declared | (21,533) | (21,533) | (21,533) | |||||
Dividends declared to noncontrolling interests | (1,853) | (1,853) | ||||||
Ending balance at Jun. 30, 2019 | 958,037 | 926,251 | $ 76 | 905,351 | (91,647) | 124,827 | (12,356) | 31,786 |
Ending balance (in shares) at Jun. 30, 2019 | 75,614 | |||||||
Beginning balance at Mar. 31, 2019 | 946,637 | 913,412 | $ 76 | 901,749 | (85,503) | 97,090 | 0 | 33,225 |
Beginning balance (in shares) at Mar. 31, 2019 | 75,604 | |||||||
Changes in stockholders' equity | ||||||||
Net income | 38,902 | 38,488 | 38,488 | 414 | ||||
Other comprehensive income (loss) | (6,144) | (6,144) | (6,144) | |||||
Share-based compensation | 3,601 | 3,601 | 3,601 | |||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes | 1 | 1 | $ 0 | 1 | ||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (in shares) | 10 | |||||||
Purchases of common stock (Note 10) | (6,178) | (6,178) | (6,178) | |||||
Share repurchase liability (Note 10) | (6,178) | (6,178) | (6,178) | |||||
Dividends and dividend equivalents declared | (10,751) | (10,751) | (10,751) | |||||
Dividends declared to noncontrolling interests | (1,853) | (1,853) | ||||||
Ending balance at Jun. 30, 2019 | $ 958,037 | $ 926,251 | $ 76 | $ 905,351 | $ (91,647) | $ 124,827 | $ (12,356) | $ 31,786 |
Ending balance (in shares) at Jun. 30, 2019 | 75,614 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
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 (the “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 six months ended June 30, 2019 are not necessarily indicative of results to be expected for the full year ending December 31, 2019 , nor were those of the comparable 2018 period representative of those actually experienced for the full year ended December 31, 2018 . 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, 2018 included in its Annual Report on Form 10-K filed with the SEC on February 28, 2019 . 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, liabilities, shareholders’ equity, net sales and expenses, and the disclosure of contingent assets and liabilities in its unaudited condensed consolidated financial statements. Actual results could differ from those 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 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 June 30, 2019 and December 31, 2018 . 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 The ownership interest held by owners other than the Company in less than wholly-owned subsidiaries are classified as noncontrolling interests. The value attributable to the noncontrolling interests is presented on the unaudited condensed consolidated balance sheets within shareholders' equity, 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. Cash and Restricted Cash Cash held in Company checking accounts is included in cash. Book overdrafts not subject to offset with other accounts with the same financial institution are classified as accounts payable. The Company classifies as restricted certain cash that is not available for use in its operations. As of June 30, 2019 and December 31, 2018 , the amount of restricted cash included in cash and restricted cash on the balance sheet was $2.1 million and $2.0 million , respectively. Accounts Receivable As of June 30, 2019 and December 31, 2018 , the allowance for doubtful accounts was $5.6 million and $7.3 million , respectively. Foreign Currency Translation and Transactions Foreign currency transaction losses included in selling, general and administrative expense were $0.1 million and $3.1 million for the three months ended June 30, 2019 and 2018 , respectively. Foreign currency transaction gains (losses) included in selling, general and administrative expense were gains of $0.4 million and losses of $1.1 million for the six months ended June 30, 2019 and 2018 , respectively. Recently Adopted Accounting Standards Leases On January 1, 2019, the Company adopted Accounting Standards Codification ("ASC") Topic 842, Leases ("ASC 842"), which requires the recognition of right-of-use assets and related operating and finance lease liabilities on the consolidated balance sheet. As permitted by ASC 842, the Company adopted ASC 842 using the optional transition approach, which allowed for a cumulative effect adjustment as of January 1, 2019, which is the date of initial application, and did not restate prior periods. As a result, the consolidated balance sheet prior to January 1, 2019 was not restated and continues to be reported under ASC Topic 840, Leases ("ASC 840"), which did not require the recognition of operating lease liabilities on the consolidated balance sheet, and is not comparative. Under ASC 842, all leases are required to be recorded on the consolidated balance sheet and are classified as either operating or finance leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset, the present value of the lease payments equals or exceeds substantially all of the fair value of the asset, or the leased asset is of a highly specialized nature. A lease is classified as an operating lease if it does not meet any one of these criteria. The lease classification affects the expense recognition in the consolidated statement of operations. Operating lease expense consists of the lease payments plus any initial direct costs and is recognized on a straight-line basis over the lease term in the consolidated statement of operations. Finance lease charges are split, where amortization of the right-of-use asset is recorded as depreciation and amortization expense and an implied interest component is recorded in interest expense, net. The expense recognition for operating leases and finance leases under ASC 842 is consistent with ASC 840. As a result, there is no impact on the results of operations presented in the Company's unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of comprehensive income for the periods presented as a result of the adoption of ASC 842. As permitted under ASC 842, the Company also elected to not reassess prior conclusions related to the identification, classification and accounting for initial direct costs for leases that commenced prior to January 1, 2019. As permitted under ASC 842, the Company elected to not use hindsight to determine lease terms and to not separate non-lease components within its lease portfolio. As permitted under ASC 842, the Company has also elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The effect of short-term leases on the Company's operating right-of-use assets and operating lease liabilities was not material. Upon adoption of ASC 842, the Company recognized operating lease right-of-use assets and operating lease liabilities. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred less any lease incentives received. Lease payments included in the measurement of the lease liability comprise the following: the fixed non-cancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early. The discount rate implicit within the Company's leases is generally not determinable and therefore the Company determines the discount rate based on its incremental collateralized borrowing rate applicable to the location where the lease is held. The incremental borrowing rate for each of the Company's leases is determined based on the lease term and currency in which such lease payments are made. Accordingly, upon adoption, the Company recorded an adjustment of $48.1 million to operating lease right-of-use assets and the related lease liabilities. The Company leases office and warehouse space, machinery and equipment, and vehicles, among other items. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 3 years . For contracts entered into on or after the effective date, at the inception of a contract the Company assesses whether the contract is, or contains, a lease. The Company's assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtained the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether the Company has the right to direct the use of the asset. See further discussion in Note 2 . Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities On January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2017‑12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ” ("ASU 2017-12"). The amendments in this update expand and refine hedge accounting guidance and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. ASU 2017-12 also simplified the application of hedge accounting guidance, hedge documentation requirements and the assessment of hedge effectiveness. The adoption of this standard did not have a material impact on the consolidated financial statements. Changes to the Disclosure Requirements for Fair Value Measurement On January 1, 2019, the Company adopted ASU 2018-13, "Fair Value Measurement (Topic 820) —Disclosure Framework —Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). The amendments in this update are meant to provide more relevant information regarding valuation techniques and inputs used to arrive at measures of fair value, uncertainty in the fair value measurements, and how changes in fair value measurements impact an entity's performance and cash flows. The adoption of this standard did not have an impact on the consolidated financial statements or related disclosures. Recently Issued Accounting Standards Intangibles —Goodwill and Other —Internal-Use Software In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-15, " Intangibles -Goodwill and Other -Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract " ("ASU 2018-15"). The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the consolidated financial statements. Defined Benefit Plans—Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, "Compensation —Retirement Benefits —Defined Benefit Plans —General (Subtopic 715-20) —Disclosure Framework —Changes to the Disclosure Requirements for Defined Benefit Plans" ("ASU 2018-14"). The amendments in this update remove defined benefit plan disclosures that are no longer considered cost-beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The adoption of this standard should be applied to all periods presented. The adoption of this standard will not have a material impact on the consolidated financial statements. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company's operating lease right-of-use assets and operating lease liabilities represent leases for office and warehouse space, machinery and equipment, and vehicles, among other items. Operating lease costs recognized on the unaudited condensed consolidated statements of operations were as follows: Three months ended Six months ended (in thousands) June 30, 2019 June 30, 2019 Cost of goods sold 787 $ 1,608 Selling, general and administrative 2,898 5,780 Research and development 176 375 $ 3,861 $ 7,763 Supplemental balance sheet information related to the Company's operating leases is as follows: June 30, (in thousands) Balance Sheet Location 2019 Right-of-use assets Other noncurrent assets $ 44,673 Current lease liabilities Accrued expenses and other liabilities $ 11,656 Noncurrent lease liabilities Other noncurrent liabilities 34,102 Total liabilities $ 45,758 The weighted average remaining lease term and the weighted average discount rate for operating leases as of June 30, 2019 was: Operating Leases Weighted average remaining lease term (years) 5.7 Weighted average discount rate 3.41 % The following table reconciles the undiscounted cash flows for operating leases as of June 30, 2019 to operating lease liabilities recorded on the unaudited condensed consolidated balance sheet: Operating (in thousands) Leases Remainder of 2019 $ 7,081 2020 12,250 2021 8,880 2022 5,912 2023 3,323 Thereafter 13,737 Total future lease payments 51,183 Less: Interest (5,425 ) Present value of lease liabilities $ 45,758 Accrued expenses and other liabilities $ 11,656 Other noncurrent liabilities 34,102 Total lease liabilities $ 45,758 Future minimum rental payments under noncancelable operating leases as of December 31, 2018 were as follows: (in thousands) Year ending December 31, 2019 $ 13,119 2020 11,053 2021 7,984 2022 5,345 2023 3,133 Thereafter 13,852 Total minimum rental payments $ 54,486 Supplemental cash flow information and non-cash activity related to the Company's operating leases are as follows: Six months ended (in thousands) June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 7,229 Non-cash right-of-use assets obtained in exchange for lease obligations: Operating leases 3,005 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories were as follows: June 30, December 31, (in thousands) 2019 2018 Raw materials and supplies $ 73,928 $ 71,068 Work-in-process 20,494 21,763 Finished goods 230,166 268,376 Inventories $ 324,588 $ 361,207 |
Product Warranty
Product Warranty | 6 Months Ended |
Jun. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty | Product Warranty The Company has defined warranties ranging from one to two years . Products covered by the defined warranty policies 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 June 30, Six months ended June 30, (in thousands) 2019 2018 2019 2018 Balance at beginning of period $ 3,548 $ 4,148 $ 3,331 $ 3,823 Provision 2,014 1,561 3,088 2,756 Claims paid/costs incurred (1,949 ) (1,666 ) (2,825 ) (2,579 ) Foreign currency translation (33 ) (105 ) (14 ) (62 ) Balance at end of period $ 3,580 $ 3,938 $ 3,580 $ 3,938 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements Senior Secured Credit Facility The senior secured credit facility includes the revolving credit facility, the term loan A facility and the delayed draw term loan A facility. There were outstanding borrowings under the revolving credit facility of $38.4 million as of June 30, 2019 . The weighted average interest rate applicable to the outstanding borrowings was 3.63% as of June 30, 2019 . There were no outstanding borrowings under the revolving credit facility as of December 31, 2018 . 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 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 June 30, 2019 , the Company was in compliance with all covenants under the credit agreement. As of June 30, 2019 , the Company had available borrowings under its revolving credit facility of $226.7 million after giving effect to $9.9 million of outstanding letters of credit. Other Short-Term Borrowings The Company has certain unsecured local credit facilities available through its subsidiaries. There were outstanding borrowings under the Company's local credit facilities of $3.8 million and $0.9 million as of June 30, 2019 and December 31, 2018 , respectively. The weighted average interest rate applicable to the outstanding borrowings was 1.54% and 3.25% as of June 30, 2019 and December 31, 2018 , respectively. As of June 30, 2019 , the Company had available borrowings remaining under these local credit facilities of $60.8 million . Letters of Credit As of June 30, 2019 and December 31, 2018 , there were outstanding letters of credit related to agreements, including the Company's senior secured credit facility, totaling $14.2 million and $15.5 million , respectively, of which $11.0 million and $12.4 million was secured. These agreements provided a maximum commitment for letters of credit of $29.3 million and $29.2 million as of June 30, 2019 and December 31, 2018 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
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 changes in foreign currency exchange rates and interest rate fluctuations. 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 derivative instruments are foreign exchange forward contracts primarily used to hedge currency fluctuations related to inventory purchases not denominated in the functional currency of the non-U.S. subsidiary, thereby limiting currency risk that would otherwise result from changes in exchange rates. These instruments are considered cash flow hedges. The periods of the foreign exchange forward contracts correspond to the periods of the 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 June 30, 2019 and December 31, 2018 was $294.3 million and $312.8 million , respectively. The Company also enters into foreign exchange forward contracts to mitigate the change in fair value of specific assets and liabilities which do not qualify as hedging instruments under U.S. GAAP. 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 expense. The gross U.S. dollar equivalent notional amount of all outstanding foreign exchange forward contracts not designated under hedge accounting was $1.5 million as of June 30, 2019 . There were no outstanding foreign exchange forward contracts not designated under hedge accounting as of December 31, 2018 . Interest Rate Derivative Instruments The Company enters into interest rate swap contracts to reduce the impact of variability in interest rates. Under the contracts, the Company pays fixed and receives variable rate interest, in effect converting a portion of its variable rate debt to fixed rate debt. The interest rate swap contracts are accounted for as cash flow hedges. As of June 30, 2019 and December 31, 2018 , the notional value of the Company's outstanding interest rate swap contracts was $160.0 million and $185.0 million , respectively. Impact on Financial Statements The fair value of hedge instruments recognized on the unaudited condensed consolidated balance sheets was as follows: (in thousands) June 30, December 31, Balance Sheet Location Hedge Instrument Type 2019 2018 Other current assets Foreign exchange forward $ 4,200 $ 6,116 Other noncurrent assets Foreign exchange forward 372 1,015 Accrued expenses and other liabilities Foreign exchange forward 492 578 Interest rate swap 1,605 526 Other noncurrent liabilities Foreign exchange forward 625 161 Interest rate swap 1,770 925 The hedge instrument gain (loss) recognized in accumulated other comprehensive loss, net of tax was as follows: Three months ended Six months ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Type of hedge Foreign exchange forward $ 107 $ 9,209 $ 2,194 $ 2,128 Interest rate swap (1,513 ) (269 ) (2,241 ) (269 ) $ (1,406 ) $ 8,940 $ (47 ) $ 1,859 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 transaction impacts the statement of operations. Based on the current valuation, during the next 12 months the Company expects to reclassify a net gain of $4.9 million related to foreign exchange derivative instruments from accumulated other comprehensive loss, net of tax, into cost of goods sold and a net loss of $1.6 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 (loss) recognized on the unaudited condensed consolidated statements of operations was as follows: Three months ended Six months ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Location of gain (loss) in statement of operations Foreign exchange forward: Cost of goods sold $ 2,993 $ (1,120 ) $ 4,599 $ (1,828 ) Selling, general and administrative (1) 131 1,684 (183 ) 1,016 Total $ 3,124 $ 564 $ 4,416 $ (812 ) Interest Rate Swap: Interest expense, net $ (166 ) $ (102 ) $ (323 ) $ (102 ) Total $ (166 ) $ (102 ) $ (323 ) $ (102 ) _______________________________________________________________________________ (1) Relates to gains (losses) 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 and considers the risk of counterparty default to be minimal. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 were as follows: Fair Value Measurements as of June 30, 2019 using: (in thousands) Level 1 Level 2 Level 3 Balance Sheet Location Assets Rabbi trust $ 8,895 $ — $ — Other current assets Foreign exchange derivative instruments — 4,200 — Other current assets Deferred compensation program assets 1,134 — — Other noncurrent assets Foreign exchange derivative instruments — 372 — Other noncurrent assets Total assets $ 10,029 $ 4,572 $ — Liabilities Foreign exchange derivative instruments $ — $ 537 $ — Accrued expenses and other liabilities Interest rate derivative instruments — 1,605 — Accrued expenses and other liabilities Deferred compensation program liabilities 1,134 — — Other noncurrent liabilities Foreign exchange derivative instruments — 625 — Other noncurrent liabilities Interest rate derivative instruments — 1,770 — Other noncurrent liabilities Total liabilities $ 1,134 $ 4,537 $ — Assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 were as follows: Fair Value Measurements as of December 31, 2018 using: (in thousands) Level 1 Level 2 Level 3 Balance Sheet Location Assets Rabbi trust $ 8,415 $ — $ — Other current assets Foreign exchange derivative instruments — 6,116 — Other current assets Deferred compensation program assets 1,222 — — Other noncurrent assets Foreign exchange derivative instruments — 1,015 — Other noncurrent assets Total assets $ 9,637 $ 7,131 $ — Liabilities Foreign exchange derivative instruments $ — $ 578 $ — Accrued expenses and other liabilities Interest rate derivative instruments — 526 — Accrued expenses and other liabilities Deferred compensation program liabilities 1,222 — — Other noncurrent liabilities Foreign exchange derivative instruments — 161 — Other noncurrent liabilities Interest rate derivative instruments — 925 — Other noncurrent liabilities Total liabilities $ 1,222 $ 2,190 $ — During the six months ended June 30, 2019 and the year ended December 31, 2018 , there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. 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 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 contracts used to hedge the interest rate fluctuations of the Company's variable 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. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Components of net periodic benefit cost (income) were as follows: Pension Benefits Postretirement Benefits Three months ended June 30, (in thousands) 2019 2018 2019 2018 Components of net periodic benefit cost (income) Service cost $ 1,880 $ 2,259 $ 126 $ 154 Interest cost 2,808 2,989 140 118 Expected return on plan assets (3,257 ) (3,198 ) — — Settlement expense 1,775 464 — — Amortization of net loss (gain) 129 732 (355 ) (419 ) Amortization of prior service cost (credit) 48 43 (34 ) (34 ) Net periodic benefit cost (income) $ 3,383 $ 3,289 $ (123 ) $ (181 ) Pension Benefits Postretirement Benefits Six months ended June 30, (in thousands) 2019 2018 2019 2018 Components of net periodic benefit cost (income) Service cost $ 4,122 $ 4,702 $ 287 $ 329 Interest cost 5,788 5,947 278 245 Expected return on plan assets (6,556 ) (6,477 ) — — Settlement expense 1,775 472 — — Amortization of net loss (gain) 401 1,252 (718 ) (770 ) Amortization of prior service cost (credit) 92 87 (68 ) (68 ) Net periodic benefit cost (income) $ 5,622 $ 5,983 $ (221 ) $ (264 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense decreased by $2.2 million to $16.2 million for the three months ended June 30, 2019 compared to $18.4 million for the three months ended June 30, 2018 . The Company’s Effective Tax Rate ("ETR") was 29.4% for the three months ended June 30, 2019 compared to 31.3% for the three months ended June 30, 2018 . The decrease in ETR was primarily driven by the impact of a change made in the second quarter of 2018 to the U.S. Tax Cuts and Jobs Act of 2017 ("Tax Act") and the impact of changes in the Company's geographic mix of earnings. Income tax expense decreased by $5.1 million to $28.5 million for the six months ended June 30, 2019 compared to $33.6 million for the six months ended June 30, 2018 . The Company’s ETR was 27.6% for the six months ended June 30, 2019 compared to 28.7% for the six months ended June 30, 2018 . The decrease in ETR was primarily driven by the discrete tax benefit for share based compensation expense, offset by the impact of a change made in the second quarter of 2018 to the Tax Act and the impact of changes in the Company's geographic mix of earnings. |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Common Stock | Common Stock Dividends The Company declared dividends per common share, including DERs (Note 11 ), during the periods presented as follows: (in thousands, except per share amounts) Dividends per Common Share Amount 2019: Second Quarter $ 0.14 $ 10,751 First Quarter 0.14 10,782 Total dividends declared in 2019 $ 0.28 $ 21,533 2018: Fourth Quarter $ 0.13 $ 9,968 Third Quarter 0.13 9,954 Second Quarter 0.13 9,917 First Quarter 0.13 9,917 Total dividends declared in 2018 $ 0.52 $ 39,756 During the third quarter of 2019 , the Company's Board of Directors ("Board of Directors") declared a dividend of $0.14 per common share to shareholders on record as of August 30, 2019 and payable on September 13, 2019 . Share Repurchase Program The Board of Directors has authorized the Company to repurchase up to an aggregate $50.0 million of its issued and outstanding common stock from time to time. Share repurchases may be effected 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 within the constraints of the Company’s credit agreement and general working capital needs. In connection with this share repurchase program, the Company entered into an agreement with Magnus Holdings Co., Ltd. (“Magnus”), a wholly owned subsidiary of Fila Korea Co., Ltd., to purchase from Magnus an equal amount of its common stock as it purchases on the open market at the same weighted average per share price. The shares will be purchased from Magnus when the Company has purchased an aggregate $24.9 million of shares in the open market, or at an earlier date as agreed to by the parties. See the Company's current report on Form 8-K filed on May 10, 2019 for additional information related to the Company's agreement with Magnus. During the second quarter of 2019 , the Company repurchased 253,385 shares of common stock on the open market at an average price of $24.38 for an aggregate of $6.2 million . In relation to the Magnus share repurchase agreement, the Company recorded a $6.2 million liability for an additional 253,385 shares of common stock to be repurchased from Magnus, which was included in accrued expenses and other liabilities and treasury stock on the unaudited condensed consolidated balance sheet as of June 30, 2019 . Excluding the impact of the share repurchase liability, as of June 30, 2019 the Company had $43.8 million remaining under the current share repurchase program, including the $24.9 million |
Equity Incentive Plans
Equity Incentive Plans | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 , the only awards granted under the 2015 Plan were RSUs and PSUs. RSUs granted to members of the Board of Directors vest immediately into shares of common stock. RSUs granted to Company officers and employees vest ratably and in accordance with the terms of the grant, generally over one to four years subject to the recipient’s continued service to the Company. PSUs vest, subject to the recipient's continued employment with the Company, based upon achievement of the applicable performance metrics, generally over three years and as defined in the award agreements. 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. Restricted Stock and Performance Stock Units A summary of the Company’s RSUs and PSUs as of June 30, 2019 and changes during the six months then ended is presented below: Weighted- Weighted- Number Average Number Average of RSUs Fair Value RSUs of PSUs Fair Value PSUs Outstanding as of December 31, 2018 881,832 $ 21.75 — $ — Granted 654,660 23.50 207,077 23.47 Vested (515,701 ) 20.53 — — Forfeited (9,813 ) 24.17 — — Outstanding as of June 30, 2019 1,010,978 $ 23.49 207,077 $ 23.47 Undelivered (1) 117,831 — _______________________________________________________________________________ (1) Shares of common stock related to vestings occurring in 2019 that were not delivered as of June 30, 2019 . 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: Six months ended Six months ended June 30, 2019 June 30, 2018 RSUs PSUs RSUs PSUs Shares of common stock issued (1) 401,986 900,226 398,628 — Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations (123,013 ) (325,246 ) (122,795) — Net shares of common stock issued 278,973 574,980 275,833 — Cumulative undelivered shares of common stock 177,249 — — — ______________________________________________________________________________ (1) Shares of common stock issued related to PSUs represents PSUs that vested in 2018 but were delivered in common stock during the six months ended June 30, 2019 . The remaining unrecognized compensation expense related to non-vested RSUs and non-vested PSUs granted was $18.1 million and $4.2 million , respectively, as of June 30, 2019 and is expected to be recognized over the related weighted average period of 2.3 years . The allocation of compensation expense related to equity incentive plans in the unaudited condensed consolidated statements of operations was as follows: Three months ended Six months ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Cost of goods sold $ 194 $ 113 $ 361 $ 207 Selling, general and administrative 3,174 4,559 4,641 8,292 Research and development 233 312 384 611 Total compensation expense before income tax 3,601 4,984 5,386 9,110 Income tax benefit 746 1,029 1,136 1,882 Total compensation expense, net of income tax $ 2,855 $ 3,955 $ 4,250 $ 7,228 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, Net of Tax | 6 Months Ended |
Jun. 30, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [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 changes in accumulated other comprehensive loss, net of tax, were as follows: Foreign Gains (Losses) on Gains (Losses) on Pension and Accumulated Currency Foreign Exchange Interest Rate Other Other Translation Derivative Swap Derivative Postretirement Comprehensive (in thousands) Adjustments Instruments Instruments Adjustments Loss, Net of Tax Balance as of December 31, 2018 $ (71,853 ) $ 5,258 $ (1,098 ) $ (21,346 ) $ (89,039 ) Other comprehensive income (loss) before reclassifications (375 ) 2,194 (2,241 ) (1 ) (423 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — (4,599 ) 323 1,482 (2,794 ) Tax benefit (expense) — 777 179 (347 ) 609 Balance as of June 30, 2019 $ (72,228 ) $ 3,630 $ (2,837 ) $ (20,212 ) $ (91,647 ) |
Net Income per Common Share
Net Income per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
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 ended Six months ended June 30, June 30, (in thousands, except share and per share amounts) 2019 2018 2019 2018 Net income attributable to Acushnet Holdings Corp. $ 38,488 $ 39,907 $ 73,414 $ 81,391 Weighted average number of common shares: Basic 75,618,717 74,762,469 75,811,780 74,706,663 Diluted 75,858,114 75,028,658 76,060,003 74,911,551 Net income per common share attributable to Acushnet Holdings Corp.: Basic $ 0.51 $ 0.53 $ 0.97 $ 1.09 Diluted $ 0.51 $ 0.53 $ 0.97 $ 1.09 Net income per common share attributable to Acushnet Holdings Corp. for the three and six months ended June 30, 2019 and 2018 was calculated using the treasury stock method . The Company’s potential dilutive securities for the three and six months ended June 30, 2019 and 2018 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. For the three and six months ended June 30, 2019 and 2018 , 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 ended Six months ended June 30, June 30, 2019 2018 2019 2018 RSUs — — 2,025 — |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
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, 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 six months ended June 30, 2019 and 2018 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 June 30, Six months ended June 30, (in thousands) 2019 2018 2019 2018 Net sales Titleist golf balls $ 173,305 $ 172,211 $ 314,972 $ 297,117 Titleist golf clubs 107,010 117,839 198,328 234,732 Titleist golf gear 46,837 45,822 92,018 90,167 FootJoy golf wear 114,095 119,496 255,076 260,202 Other 20,971 22,770 35,526 37,721 Total net sales $ 462,218 $ 478,138 $ 895,920 $ 919,939 Segment operating income Titleist golf balls $ 37,972 $ 36,848 $ 57,700 $ 50,828 Titleist golf clubs 6,865 10,521 6,460 26,904 Titleist golf gear 9,066 8,254 18,217 16,038 FootJoy golf wear 4,156 5,387 24,300 25,642 Other 5,147 4,866 8,587 7,413 Total segment operating income 63,206 65,876 115,264 126,825 Reconciling items: Interest expense, net (5,213 ) (5,247 ) (10,096 ) (9,655 ) Non-service cost component of net periodic benefit cost (1,254 ) (695 ) (992 ) (688 ) Transaction fees (1,947 ) — (1,947 ) — Other 349 (1,146 ) 1,226 616 Total income before income tax $ 55,141 $ 58,788 $ 103,455 $ 117,098 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 June 30, Six months ended June 30, (in thousands) 2019 2018 2019 2018 United States $ 256,267 $ 252,740 $ 486,650 $ 472,029 EMEA (1) 60,001 67,674 131,079 140,716 Japan 38,813 45,487 79,548 97,616 Korea 60,410 61,974 109,452 114,649 Rest of world 46,727 50,263 89,191 94,929 Total net sales $ 462,218 $ 478,138 $ 895,920 $ 919,939 _______________________________________________________________________________ (1) Europe, the Middle East and Africa ("EMEA") |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
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 production materials, finished goods inventory, capital expenditures and endorsement arrangements with professional golfers. Purchase obligations by the Company as of June 30, 2019 were as follows: Payments Due by Period Remainder of (in thousands) 2019 2020 2021 2022 2023 Thereafter Purchase obligations (1) $ 173,942 $ 25,553 $ 7,350 $ 2,335 $ 1,546 $ 4,807 _______________________________________________________________________________ (1) The reported amounts exclude those liabilities included in accounts payable or accrued liabilities on the consolidated balance sheet as of June 30, 2019 . Contingencies In connection with the Company’s acquisition of Acushnet Company, Beam Suntory, Inc. indemnified the Company for certain tax related obligations that relate to periods during which Fortune Brands, Inc. owned Acushnet Company. As of June 30, 2019 and December 31, 2018 , the Company’s estimate of its receivable for these indemnifications was $9.2 million and $8.9 million , respectively, which was recorded in other noncurrent assets on the unaudited condensed consolidated balance sheets. Litigation |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On July 3, 2019 , the Company, through a majority owned subsidiary, completed the acquisition of KJUS, a premium global ski and golf sportswear company, for a purchase price of $28.7 million |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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 (the “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 six months ended June 30, 2019 are not necessarily indicative of results to be expected for the full year ending December 31, 2019 , nor were those of the comparable 2018 period representative of those actually experienced for the full year ended December 31, 2018 . 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, 2018 included in its Annual Report on Form 10-K filed with the SEC on February 28, 2019 |
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, liabilities, shareholders’ equity, net sales and expenses, and the disclosure of contingent assets and liabilities in its unaudited condensed consolidated financial statements. Actual results could differ from those 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 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 June 30, 2019 and December 31, 2018 . 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 | Noncontrolling Interests The ownership interest held by owners other than the Company in less than wholly-owned subsidiaries are classified as noncontrolling interests. The value attributable to the noncontrolling interests is presented on the unaudited condensed consolidated balance sheets within shareholders' equity, 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. |
Cash | Cash and Restricted Cash Cash held in Company checking accounts is included in cash. Book overdrafts not subject to offset with other accounts with the same financial institution are classified as accounts payable. The Company classifies as restricted certain cash that is not available for use in its operations. As of June 30, 2019 and December 31, 2018 , the amount of restricted cash included in cash and restricted cash on the balance sheet was $2.1 million and $2.0 million , respectively. |
Restricted Cash | Cash and Restricted Cash Cash held in Company checking accounts is included in cash. Book overdrafts not subject to offset with other accounts with the same financial institution are classified as accounts payable. The Company classifies as restricted certain cash that is not available for use in its operations. As of June 30, 2019 and December 31, 2018 , the amount of restricted cash included in cash and restricted cash on the balance sheet was $2.1 million and $2.0 million , respectively. |
Accounts Receivable | Accounts Receivable As of June 30, 2019 and December 31, 2018 , the allowance for doubtful accounts was $5.6 million and $7.3 million , respectively. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Foreign currency transaction losses included in selling, general and administrative expense were $0.1 million and $3.1 million for the three months ended June 30, 2019 and 2018 , respectively. Foreign currency transaction gains (losses) included in selling, general and administrative expense were gains of $0.4 million and losses of $1.1 million for the six months ended June 30, 2019 and 2018 , respectively. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards | Recently Adopted Accounting Standards Leases On January 1, 2019, the Company adopted Accounting Standards Codification ("ASC") Topic 842, Leases ("ASC 842"), which requires the recognition of right-of-use assets and related operating and finance lease liabilities on the consolidated balance sheet. As permitted by ASC 842, the Company adopted ASC 842 using the optional transition approach, which allowed for a cumulative effect adjustment as of January 1, 2019, which is the date of initial application, and did not restate prior periods. As a result, the consolidated balance sheet prior to January 1, 2019 was not restated and continues to be reported under ASC Topic 840, Leases ("ASC 840"), which did not require the recognition of operating lease liabilities on the consolidated balance sheet, and is not comparative. Under ASC 842, all leases are required to be recorded on the consolidated balance sheet and are classified as either operating or finance leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset, the present value of the lease payments equals or exceeds substantially all of the fair value of the asset, or the leased asset is of a highly specialized nature. A lease is classified as an operating lease if it does not meet any one of these criteria. The lease classification affects the expense recognition in the consolidated statement of operations. Operating lease expense consists of the lease payments plus any initial direct costs and is recognized on a straight-line basis over the lease term in the consolidated statement of operations. Finance lease charges are split, where amortization of the right-of-use asset is recorded as depreciation and amortization expense and an implied interest component is recorded in interest expense, net. The expense recognition for operating leases and finance leases under ASC 842 is consistent with ASC 840. As a result, there is no impact on the results of operations presented in the Company's unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of comprehensive income for the periods presented as a result of the adoption of ASC 842. As permitted under ASC 842, the Company also elected to not reassess prior conclusions related to the identification, classification and accounting for initial direct costs for leases that commenced prior to January 1, 2019. As permitted under ASC 842, the Company elected to not use hindsight to determine lease terms and to not separate non-lease components within its lease portfolio. As permitted under ASC 842, the Company has also elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The effect of short-term leases on the Company's operating right-of-use assets and operating lease liabilities was not material. Upon adoption of ASC 842, the Company recognized operating lease right-of-use assets and operating lease liabilities. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred less any lease incentives received. Lease payments included in the measurement of the lease liability comprise the following: the fixed non-cancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early. The discount rate implicit within the Company's leases is generally not determinable and therefore the Company determines the discount rate based on its incremental collateralized borrowing rate applicable to the location where the lease is held. The incremental borrowing rate for each of the Company's leases is determined based on the lease term and currency in which such lease payments are made. Accordingly, upon adoption, the Company recorded an adjustment of $48.1 million to operating lease right-of-use assets and the related lease liabilities. The Company leases office and warehouse space, machinery and equipment, and vehicles, among other items. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 3 years . For contracts entered into on or after the effective date, at the inception of a contract the Company assesses whether the contract is, or contains, a lease. The Company's assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtained the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether the Company has the right to direct the use of the asset. See further discussion in Note 2 . Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities On January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2017‑12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ” ("ASU 2017-12"). The amendments in this update expand and refine hedge accounting guidance and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. ASU 2017-12 also simplified the application of hedge accounting guidance, hedge documentation requirements and the assessment of hedge effectiveness. The adoption of this standard did not have a material impact on the consolidated financial statements. Changes to the Disclosure Requirements for Fair Value Measurement On January 1, 2019, the Company adopted ASU 2018-13, "Fair Value Measurement (Topic 820) —Disclosure Framework —Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). The amendments in this update are meant to provide more relevant information regarding valuation techniques and inputs used to arrive at measures of fair value, uncertainty in the fair value measurements, and how changes in fair value measurements impact an entity's performance and cash flows. The adoption of this standard did not have an impact on the consolidated financial statements or related disclosures. Recently Issued Accounting Standards Intangibles —Goodwill and Other —Internal-Use Software In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-15, " Intangibles -Goodwill and Other -Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract " ("ASU 2018-15"). The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the consolidated financial statements. Defined Benefit Plans—Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, "Compensation —Retirement Benefits —Defined Benefit Plans —General (Subtopic 715-20) —Disclosure Framework —Changes to the Disclosure Requirements for Defined Benefit Plans" ("ASU 2018-14"). The amendments in this update remove defined benefit plan disclosures that are no longer considered cost-beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The adoption of this standard should be applied to all periods presented. The adoption of this standard will not have a material impact on the consolidated financial statements. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Components of lease cost and supplemental information | Supplemental cash flow information and non-cash activity related to the Company's operating leases are as follows: Six months ended (in thousands) June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 7,229 Non-cash right-of-use assets obtained in exchange for lease obligations: Operating leases 3,005 The weighted average remaining lease term and the weighted average discount rate for operating leases as of June 30, 2019 was: Operating Leases Weighted average remaining lease term (years) 5.7 Weighted average discount rate 3.41 % Operating lease costs recognized on the unaudited condensed consolidated statements of operations were as follows: Three months ended Six months ended (in thousands) June 30, 2019 June 30, 2019 Cost of goods sold 787 $ 1,608 Selling, general and administrative 2,898 5,780 Research and development 176 375 $ 3,861 $ 7,763 |
Supplemental balance sheet information related to operating leases | Supplemental balance sheet information related to the Company's operating leases is as follows: June 30, (in thousands) Balance Sheet Location 2019 Right-of-use assets Other noncurrent assets $ 44,673 Current lease liabilities Accrued expenses and other liabilities $ 11,656 Noncurrent lease liabilities Other noncurrent liabilities 34,102 Total liabilities $ 45,758 |
Reconciliation of undiscounted cash flows for operating leases to the operating lease liabilities recorded on the unaudited condensed consolidated balance sheet | The following table reconciles the undiscounted cash flows for operating leases as of June 30, 2019 to operating lease liabilities recorded on the unaudited condensed consolidated balance sheet: Operating (in thousands) Leases Remainder of 2019 $ 7,081 2020 12,250 2021 8,880 2022 5,912 2023 3,323 Thereafter 13,737 Total future lease payments 51,183 Less: Interest (5,425 ) Present value of lease liabilities $ 45,758 Accrued expenses and other liabilities $ 11,656 Other noncurrent liabilities 34,102 Total lease liabilities $ 45,758 |
Schedule of future minimum rental payments under noncancelable operating leases | Future minimum rental payments under noncancelable operating leases as of December 31, 2018 were as follows: (in thousands) Year ending December 31, 2019 $ 13,119 2020 11,053 2021 7,984 2022 5,345 2023 3,133 Thereafter 13,852 Total minimum rental payments $ 54,486 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | The components of inventories were as follows: June 30, December 31, (in thousands) 2019 2018 Raw materials and supplies $ 73,928 $ 71,068 Work-in-process 20,494 21,763 Finished goods 230,166 268,376 Inventories $ 324,588 $ 361,207 |
Product Warranty (Tables)
Product Warranty (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, Six months ended June 30, (in thousands) 2019 2018 2019 2018 Balance at beginning of period $ 3,548 $ 4,148 $ 3,331 $ 3,823 Provision 2,014 1,561 3,088 2,756 Claims paid/costs incurred (1,949 ) (1,666 ) (2,825 ) (2,579 ) Foreign currency translation (33 ) (105 ) (14 ) (62 ) Balance at end of period $ 3,580 $ 3,938 $ 3,580 $ 3,938 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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) June 30, December 31, Balance Sheet Location Hedge Instrument Type 2019 2018 Other current assets Foreign exchange forward $ 4,200 $ 6,116 Other noncurrent assets Foreign exchange forward 372 1,015 Accrued expenses and other liabilities Foreign exchange forward 492 578 Interest rate swap 1,605 526 Other noncurrent liabilities Foreign exchange forward 625 161 Interest rate swap 1,770 925 |
Effect of hedge instruments on accumulated other comprehensive loss, net of tax | The hedge instrument gain (loss) recognized in accumulated other comprehensive loss, net of tax was as follows: Three months ended Six months ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Type of hedge Foreign exchange forward $ 107 $ 9,209 $ 2,194 $ 2,128 Interest rate swap (1,513 ) (269 ) (2,241 ) (269 ) $ (1,406 ) $ 8,940 $ (47 ) $ 1,859 |
Effect of hedge instrument in the unaudited condensed consolidated statement of operations | The hedge instrument gain (loss) recognized on the unaudited condensed consolidated statements of operations was as follows: Three months ended Six months ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Location of gain (loss) in statement of operations Foreign exchange forward: Cost of goods sold $ 2,993 $ (1,120 ) $ 4,599 $ (1,828 ) Selling, general and administrative (1) 131 1,684 (183 ) 1,016 Total $ 3,124 $ 564 $ 4,416 $ (812 ) Interest Rate Swap: Interest expense, net $ (166 ) $ (102 ) $ (323 ) $ (102 ) Total $ (166 ) $ (102 ) $ (323 ) $ (102 ) _______________________________________________________________________________ (1) Relates to gains (losses) on foreign exchange forward contracts derived from previously designated cash flow hedges. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 were as follows: Fair Value Measurements as of June 30, 2019 using: (in thousands) Level 1 Level 2 Level 3 Balance Sheet Location Assets Rabbi trust $ 8,895 $ — $ — Other current assets Foreign exchange derivative instruments — 4,200 — Other current assets Deferred compensation program assets 1,134 — — Other noncurrent assets Foreign exchange derivative instruments — 372 — Other noncurrent assets Total assets $ 10,029 $ 4,572 $ — Liabilities Foreign exchange derivative instruments $ — $ 537 $ — Accrued expenses and other liabilities Interest rate derivative instruments — 1,605 — Accrued expenses and other liabilities Deferred compensation program liabilities 1,134 — — Other noncurrent liabilities Foreign exchange derivative instruments — 625 — Other noncurrent liabilities Interest rate derivative instruments — 1,770 — Other noncurrent liabilities Total liabilities $ 1,134 $ 4,537 $ — Assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 were as follows: Fair Value Measurements as of December 31, 2018 using: (in thousands) Level 1 Level 2 Level 3 Balance Sheet Location Assets Rabbi trust $ 8,415 $ — $ — Other current assets Foreign exchange derivative instruments — 6,116 — Other current assets Deferred compensation program assets 1,222 — — Other noncurrent assets Foreign exchange derivative instruments — 1,015 — Other noncurrent assets Total assets $ 9,637 $ 7,131 $ — Liabilities Foreign exchange derivative instruments $ — $ 578 $ — Accrued expenses and other liabilities Interest rate derivative instruments — 526 — Accrued expenses and other liabilities Deferred compensation program liabilities 1,222 — — Other noncurrent liabilities Foreign exchange derivative instruments — 161 — Other noncurrent liabilities Interest rate derivative instruments — 925 — Other noncurrent liabilities Total liabilities $ 1,222 $ 2,190 $ — |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit cost (income) | Components of net periodic benefit cost (income) were as follows: Pension Benefits Postretirement Benefits Three months ended June 30, (in thousands) 2019 2018 2019 2018 Components of net periodic benefit cost (income) Service cost $ 1,880 $ 2,259 $ 126 $ 154 Interest cost 2,808 2,989 140 118 Expected return on plan assets (3,257 ) (3,198 ) — — Settlement expense 1,775 464 — — Amortization of net loss (gain) 129 732 (355 ) (419 ) Amortization of prior service cost (credit) 48 43 (34 ) (34 ) Net periodic benefit cost (income) $ 3,383 $ 3,289 $ (123 ) $ (181 ) Pension Benefits Postretirement Benefits Six months ended June 30, (in thousands) 2019 2018 2019 2018 Components of net periodic benefit cost (income) Service cost $ 4,122 $ 4,702 $ 287 $ 329 Interest cost 5,788 5,947 278 245 Expected return on plan assets (6,556 ) (6,477 ) — — Settlement expense 1,775 472 — — Amortization of net loss (gain) 401 1,252 (718 ) (770 ) Amortization of prior service cost (credit) 92 87 (68 ) (68 ) Net periodic benefit cost (income) $ 5,622 $ 5,983 $ (221 ) $ (264 ) |
Common Stock (Tables)
Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: (in thousands, except per share amounts) Dividends per Common Share Amount 2019: Second Quarter $ 0.14 $ 10,751 First Quarter 0.14 10,782 Total dividends declared in 2019 $ 0.28 $ 21,533 2018: Fourth Quarter $ 0.13 $ 9,968 Third Quarter 0.13 9,954 Second Quarter 0.13 9,917 First Quarter 0.13 9,917 Total dividends declared in 2018 $ 0.52 $ 39,756 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the Company’s restricted and performance stock units | A summary of the Company’s RSUs and PSUs as of June 30, 2019 and changes during the six months then ended is presented below: Weighted- Weighted- Number Average Number Average of RSUs Fair Value RSUs of PSUs Fair Value PSUs Outstanding as of December 31, 2018 881,832 $ 21.75 — $ — Granted 654,660 23.50 207,077 23.47 Vested (515,701 ) 20.53 — — Forfeited (9,813 ) 24.17 — — Outstanding as of June 30, 2019 1,010,978 $ 23.49 207,077 $ 23.47 Undelivered (1) 117,831 — _______________________________________________________________________________ (1) Shares of common stock related to vestings occurring in 2019 that were not delivered as of June 30, 2019 . |
Summary 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: Six months ended Six months ended June 30, 2019 June 30, 2018 RSUs PSUs RSUs PSUs Shares of common stock issued (1) 401,986 900,226 398,628 — Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations (123,013 ) (325,246 ) (122,795) — Net shares of common stock issued 278,973 574,980 275,833 — Cumulative undelivered shares of common stock 177,249 — — — ______________________________________________________________________________ (1) Shares of common stock issued related to PSUs represents PSUs that vested in 2018 but were delivered in common stock during the six months ended June 30, 2019 . |
Schedule of compensation expense related to equity incentive plans | The allocation of compensation expense related to equity incentive plans in the unaudited condensed consolidated statements of operations was as follows: Three months ended Six months ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Cost of goods sold $ 194 $ 113 $ 361 $ 207 Selling, general and administrative 3,174 4,559 4,641 8,292 Research and development 233 312 384 611 Total compensation expense before income tax 3,601 4,984 5,386 9,110 Income tax benefit 746 1,029 1,136 1,882 Total compensation expense, net of income tax $ 2,855 $ 3,955 $ 4,250 $ 7,228 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss, Net of Tax (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of changes in each component of accumulated comprehensive loss, net of tax effects | The components of and changes in accumulated other comprehensive loss, net of tax, were as follows: Foreign Gains (Losses) on Gains (Losses) on Pension and Accumulated Currency Foreign Exchange Interest Rate Other Other Translation Derivative Swap Derivative Postretirement Comprehensive (in thousands) Adjustments Instruments Instruments Adjustments Loss, Net of Tax Balance as of December 31, 2018 $ (71,853 ) $ 5,258 $ (1,098 ) $ (21,346 ) $ (89,039 ) Other comprehensive income (loss) before reclassifications (375 ) 2,194 (2,241 ) (1 ) (423 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — (4,599 ) 323 1,482 (2,794 ) Tax benefit (expense) — 777 179 (347 ) 609 Balance as of June 30, 2019 $ (72,228 ) $ 3,630 $ (2,837 ) $ (20,212 ) $ (91,647 ) |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 ended Six months ended June 30, June 30, (in thousands, except share and per share amounts) 2019 2018 2019 2018 Net income attributable to Acushnet Holdings Corp. $ 38,488 $ 39,907 $ 73,414 $ 81,391 Weighted average number of common shares: Basic 75,618,717 74,762,469 75,811,780 74,706,663 Diluted 75,858,114 75,028,658 76,060,003 74,911,551 Net income per common share attributable to Acushnet Holdings Corp.: Basic $ 0.51 $ 0.53 $ 0.97 $ 1.09 Diluted $ 0.51 $ 0.53 $ 0.97 $ 1.09 |
Schedule of securities excluded from the calculation of diluted weighted average common shares. | For the three and six months ended June 30, 2019 and 2018 , 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 ended Six months ended June 30, June 30, 2019 2018 2019 2018 RSUs — — 2,025 — |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, Six months ended June 30, (in thousands) 2019 2018 2019 2018 Net sales Titleist golf balls $ 173,305 $ 172,211 $ 314,972 $ 297,117 Titleist golf clubs 107,010 117,839 198,328 234,732 Titleist golf gear 46,837 45,822 92,018 90,167 FootJoy golf wear 114,095 119,496 255,076 260,202 Other 20,971 22,770 35,526 37,721 Total net sales $ 462,218 $ 478,138 $ 895,920 $ 919,939 Segment operating income Titleist golf balls $ 37,972 $ 36,848 $ 57,700 $ 50,828 Titleist golf clubs 6,865 10,521 6,460 26,904 Titleist golf gear 9,066 8,254 18,217 16,038 FootJoy golf wear 4,156 5,387 24,300 25,642 Other 5,147 4,866 8,587 7,413 Total segment operating income 63,206 65,876 115,264 126,825 Reconciling items: Interest expense, net (5,213 ) (5,247 ) (10,096 ) (9,655 ) Non-service cost component of net periodic benefit cost (1,254 ) (695 ) (992 ) (688 ) Transaction fees (1,947 ) — (1,947 ) — Other 349 (1,146 ) 1,226 616 Total income before income tax $ 55,141 $ 58,788 $ 103,455 $ 117,098 |
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 June 30, Six months ended June 30, (in thousands) 2019 2018 2019 2018 United States $ 256,267 $ 252,740 $ 486,650 $ 472,029 EMEA (1) 60,001 67,674 131,079 140,716 Japan 38,813 45,487 79,548 97,616 Korea 60,410 61,974 109,452 114,649 Rest of world 46,727 50,263 89,191 94,929 Total net sales $ 462,218 $ 478,138 $ 895,920 $ 919,939 _______________________________________________________________________________ (1) Europe, the Middle East and Africa ("EMEA") |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of purchase obligations | Purchase obligations by the Company as of June 30, 2019 were as follows: Payments Due by Period Remainder of (in thousands) 2019 2020 2021 2022 2023 Thereafter Purchase obligations (1) $ 173,942 $ 25,553 $ 7,350 $ 2,335 $ 1,546 $ 4,807 _______________________________________________________________________________ (1) The reported amounts exclude those liabilities included in accounts payable or accrued liabilities on the consolidated balance sheet as of June 30, 2019 . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Cash and Restricted Cash | ||||||
Restricted cash | $ 2,100,000 | $ 2,100,000 | $ 2,000,000 | |||
Accounts receivable | ||||||
Allowance for doubtful accounts | 5,600,000 | 5,600,000 | 7,300,000 | |||
Recently Adopted Accounting Standards | ||||||
Operating lease, right-of-use assets | 44,673,000 | 44,673,000 | ||||
Operating lease, liabilities | $ 45,758,000 | $ 45,758,000 | ||||
Renewal terms (up to) | 3 years | 3 years | ||||
Accounting Standards Update 2016-02 | ||||||
Recently Adopted Accounting Standards | ||||||
Operating lease, right-of-use assets | $ 48,100,000 | |||||
Operating lease, liabilities | $ 48,100,000 | |||||
Selling, general and administrative | ||||||
Foreign currency translation and transactions | ||||||
Transaction gains (losses) included in selling, general and administrative expense | $ (100,000) | $ (3,100,000) | $ 400,000 | $ (1,100,000) | ||
VIE | ||||||
Variable interest entities | ||||||
Ownership percentage | 40.00% | |||||
Outstanding borrowings | $ 0 | $ 0 | $ 0 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Total operating lease cost | $ 3,861 | $ 7,763 |
Cost of goods sold | ||
Lessee, Lease, Description [Line Items] | ||
Total operating lease cost | 787 | 1,608 |
Selling, general and administrative | ||
Lessee, Lease, Description [Line Items] | ||
Total operating lease cost | 2,898 | 5,780 |
Research and development | ||
Lessee, Lease, Description [Line Items] | ||
Total operating lease cost | $ 176 | $ 375 |
Leases - Right-of-Use Assets (D
Leases - Right-of-Use Assets (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Leases | |
Right-of-use assets | $ 44,673 |
Current lease liabilities | 11,656 |
Noncurrent lease liabilities | 34,102 |
Total liabilities | $ 45,758 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term (years) | 5 years 8 months 12 days |
Weighted average discount rate | 3.41% |
Leases - Reconciliation of Leas
Leases - Reconciliation of Lease Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 7,081 |
2020 | 12,250 |
2021 | 8,880 |
2022 | 5,912 |
2023 | 3,323 |
Thereafter | 13,737 |
Total future lease payments | 51,183 |
Less: Interest | (5,425) |
Total liabilities | 45,758 |
Accrued expenses and other liabilities | 11,656 |
Other noncurrent liabilities | $ 34,102 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 13,119 |
2020 | 11,053 |
2021 | 7,984 |
2022 | 5,345 |
2023 | 3,133 |
Thereafter | 13,852 |
Total minimum rental payments | $ 54,486 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows for operating leases | $ 7,229 |
Non-cash right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | $ 3,005 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 73,928 | $ 71,068 |
Work-in-process | 20,494 | 21,763 |
Finished goods | 230,166 | 268,376 |
Inventories | $ 324,588 | $ 361,207 |
Product Warranty (Details)
Product Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Activity for accrued warranty expense | ||||
Balance at beginning of period | $ 3,548 | $ 4,148 | $ 3,331 | $ 3,823 |
Provision | 2,014 | 1,561 | 3,088 | 2,756 |
Claims paid/costs incurred | (1,949) | (1,666) | (2,825) | (2,579) |
Foreign currency translation | (33) | (105) | (14) | (62) |
Balance at end of period | $ 3,580 | $ 3,938 | $ 3,580 | $ 3,938 |
Minimum | ||||
Product Warranty Liability [Line Items] | ||||
Product warranty period | 1 year | |||
Maximum | ||||
Product Warranty Liability [Line Items] | ||||
Product warranty period | 2 years |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Unsecured Local Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Weighted average interest rate | 1.54% | 3.25% |
Available borrowings | $ 60,800,000 | |
Other short-term borrowings, outstanding borrowings | 3,800,000 | $ 900,000 |
Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings | $ 38,400,000 | 0 |
Weighted average interest rate | 3.63% | |
Available borrowings | $ 226,700,000 | |
Revolving credit facility | Letters of credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings | 9,900,000 | |
Letters of credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings | 14,200,000 | 15,500,000 |
Line of credit secured | 11,000,000 | 12,400,000 |
Maximum commitment | $ 29,300,000 | $ 29,200,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Fair value of hedge instruments in unaudited condensed consolidated balance sheets (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($)derivative | |
Foreign exchange forward | Derivative designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 294,300 | $ 312,800 |
Foreign exchange forward | Derivative designated as hedging | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 4,200 | 6,116 |
Foreign exchange forward | Derivative designated as hedging | Other noncurrent assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 372 | 1,015 |
Foreign exchange forward | Derivative designated as hedging | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 492 | 578 |
Foreign exchange forward | Derivative designated as hedging | Other noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 625 | $ 161 |
Foreign exchange forward | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 1,500 | |
Number of outstanding contracts | derivative | 0 | |
Foreign exchange forward | Maximum | ||
Derivatives, Fair Value [Line Items] | ||
Term of derivative contract | 24 months | |
Interest rate swap | Derivative designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 160,000 | $ 185,000 |
Interest rate swap | Derivative designated as hedging | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 1,605 | 526 |
Interest rate swap | Derivative designated as hedging | Other noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 1,770 | $ 925 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Effect of hedge instruments in unaudited condensed comprehensive income (loss) and statement of operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in accumulated other comprehensive loss, net of tax | $ (1,406) | $ (47) | ||
Gain (loss) recognized in accumulated other comprehensive loss, net of tax | $ 8,940 | $ 1,859 | ||
Foreign exchange forward | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Expected reclassification of gain (loss) recorded in accumulated other comprehensive loss, net of tax into cost of goods sold during next twelve months | 4,900 | |||
Interest rate swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Expected reclassification of gain (loss) recorded in accumulated other comprehensive loss, net of tax into cost of goods sold during next twelve months | (1,600) | |||
Derivative designated as hedging | Foreign exchange forward | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on unaudited condensed consolidated statements of operations | 3,124 | 564 | 4,416 | (812) |
Derivative designated as hedging | Foreign exchange forward | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on unaudited condensed consolidated statements of operations | 2,993 | (1,120) | 4,599 | (1,828) |
Derivative designated as hedging | Foreign exchange forward | Selling, general and administrative | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on unaudited condensed consolidated statements of operations | 131 | 1,684 | (183) | 1,016 |
Derivative designated as hedging | Interest rate swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on unaudited condensed consolidated statements of operations | (166) | (102) | (323) | (102) |
Derivative designated as hedging | Interest rate swap | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on unaudited condensed consolidated statements of operations | (166) | (102) | (323) | (102) |
Derivative designated as hedging | Cash flow hedge | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in accumulated other comprehensive loss, net of tax | (1,406) | (47) | ||
Gain (loss) recognized in accumulated other comprehensive loss, net of tax | 8,940 | 1,859 | ||
Derivative designated as hedging | Cash flow hedge | Foreign exchange forward | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in accumulated other comprehensive loss, net of tax | 107 | 2,194 | ||
Gain (loss) recognized in accumulated other comprehensive loss, net of tax | 9,209 | 2,128 | ||
Derivative designated as hedging | Cash flow hedge | Interest rate swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in accumulated other comprehensive loss, net of tax | $ (1,513) | $ (2,241) | ||
Gain (loss) recognized in accumulated other comprehensive loss, net of tax | $ (269) | $ (269) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and liabilities at fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Level 1 | ||
Assets | ||
Total assets | $ 10,029 | $ 9,637 |
Liabilities | ||
Total liabilities | 1,134 | 1,222 |
Level 2 | ||
Assets | ||
Total assets | 4,572 | 7,131 |
Liabilities | ||
Total liabilities | 4,537 | 2,190 |
Level 3 | ||
Assets | ||
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 0 | 0 |
Other current assets | Rabbi trust | Level 1 | ||
Assets | ||
Total assets | 8,895 | 8,415 |
Other current assets | Rabbi trust | Level 2 | ||
Assets | ||
Total assets | 0 | 0 |
Other current assets | Rabbi trust | Level 3 | ||
Assets | ||
Total assets | 0 | 0 |
Other current assets | Foreign exchange derivative instruments | Level 1 | ||
Assets | ||
Total assets | 0 | 0 |
Other current assets | Foreign exchange derivative instruments | Level 2 | ||
Assets | ||
Total assets | 4,200 | 6,116 |
Other current assets | Foreign exchange derivative instruments | Level 3 | ||
Assets | ||
Total assets | 0 | 0 |
Other noncurrent assets | Foreign exchange derivative instruments | Level 1 | ||
Assets | ||
Total assets | 0 | 0 |
Other noncurrent assets | Foreign exchange derivative instruments | Level 2 | ||
Assets | ||
Total assets | 372 | 1,015 |
Other noncurrent assets | Foreign exchange derivative instruments | Level 3 | ||
Assets | ||
Total assets | 0 | 0 |
Other noncurrent assets | Deferred compensation program assets | Level 1 | ||
Assets | ||
Total assets | 1,134 | 1,222 |
Other noncurrent assets | Deferred compensation program assets | Level 2 | ||
Assets | ||
Total assets | 0 | 0 |
Other noncurrent assets | Deferred compensation program assets | Level 3 | ||
Assets | ||
Total assets | 0 | 0 |
Accrued expenses and other liabilities | Foreign exchange derivative instruments | Level 1 | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Accrued expenses and other liabilities | Foreign exchange derivative instruments | Level 2 | ||
Liabilities | ||
Total liabilities | 537 | 578 |
Accrued expenses and other liabilities | Foreign exchange derivative instruments | Level 3 | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Accrued expenses and other liabilities | Interest rate derivative instruments | Level 1 | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Accrued expenses and other liabilities | Interest rate derivative instruments | Level 2 | ||
Liabilities | ||
Total liabilities | 1,605 | 526 |
Accrued expenses and other liabilities | Interest rate derivative instruments | Level 3 | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Other noncurrent liabilities | Foreign exchange derivative instruments | Level 1 | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Other noncurrent liabilities | Foreign exchange derivative instruments | Level 2 | ||
Liabilities | ||
Total liabilities | 625 | 161 |
Other noncurrent liabilities | Foreign exchange derivative instruments | Level 3 | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Other noncurrent liabilities | Interest rate derivative instruments | Level 1 | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Other noncurrent liabilities | Interest rate derivative instruments | Level 2 | ||
Liabilities | ||
Total liabilities | 1,770 | 925 |
Other noncurrent liabilities | Interest rate derivative instruments | Level 3 | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Other noncurrent liabilities | Deferred compensation program liabilities | Level 1 | ||
Liabilities | ||
Total liabilities | 1,134 | 1,222 |
Other noncurrent liabilities | Deferred compensation program liabilities | Level 2 | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Other noncurrent liabilities | Deferred compensation program liabilities | Level 3 | ||
Liabilities | ||
Total liabilities | $ 0 | $ 0 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Periodic benefit cost (income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Benefits | ||||
Components of net periodic benefit cost (income) | ||||
Service cost | $ 1,880 | $ 2,259 | $ 4,122 | $ 4,702 |
Interest cost | 2,808 | 2,989 | 5,788 | 5,947 |
Expected return on plan assets | (3,257) | (3,198) | (6,556) | (6,477) |
Settlement expense | 1,775 | 464 | 1,775 | 472 |
Amortization of net loss (gain) | 129 | 732 | 401 | 1,252 |
Amortization of prior service cost (credit) | 48 | 43 | 92 | 87 |
Net periodic benefit cost (income) | 3,383 | 3,289 | 5,622 | 5,983 |
Postretirement Benefits | ||||
Components of net periodic benefit cost (income) | ||||
Service cost | 126 | 154 | 287 | 329 |
Interest cost | 140 | 118 | 278 | 245 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Settlement expense | 0 | 0 | 0 | 0 |
Amortization of net loss (gain) | (355) | (419) | (718) | (770) |
Amortization of prior service cost (credit) | (34) | (34) | (68) | (68) |
Net periodic benefit cost (income) | $ (123) | $ (181) | $ (221) | $ (264) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Decrease in income tax expense | $ 2,200 | $ 5,100 | ||
Income tax expense | $ 16,239 | $ 18,419 | $ 28,514 | $ 33,639 |
Effective tax rate | 29.40% | 31.30% | 27.60% | 28.70% |
Common Stock (Details)
Common Stock (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2019 | |
Equity [Abstract] | ||||||||||
Dividends per Common Share (in dollars per share) | $ 0.14 | $ 0.14 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.28 | $ 0.52 | ||
Amount | $ 10,751,000 | $ 10,782,000 | $ 9,968,000 | $ 9,954,000 | $ 9,917,000 | $ 9,917,000 | $ 21,533,000 | $ 19,834,000 | $ 39,756,000 | |
Dividends Payable [Line Items] | ||||||||||
Issued and outstanding common stock authorized to repurchase | 50,000,000 | 50,000,000 | ||||||||
Aggregate purchases of shares in open market before shares will be purchased from Magnus | $ 24,900,000 | 24,900,000 | ||||||||
Common stock repurchased (in shares) | 253,385 | |||||||||
Average price to repurchase common stock (in dollars per share) | $ 24.38 | |||||||||
Total cost of repurchases | $ 6,178,000 | $ 6,178,000 | ||||||||
Accrued share repurchase (in shares) | 253,385 | 253,385 | ||||||||
Amount remaining under current authorizations | $ 43,800,000 | $ 43,800,000 | ||||||||
Magnus | ||||||||||
Dividends Payable [Line Items] | ||||||||||
Share repurchase liability | $ 6,200,000 | $ 6,200,000 | ||||||||
Accrued share repurchase (in shares) | 253,385 | 253,385 | ||||||||
Amount remaining under current authorizations | $ 24,900,000 | $ 24,900,000 | ||||||||
Forecast | ||||||||||
Dividends Payable [Line Items] | ||||||||||
Dividends declared and payable (in dollars per share) | $ 0.14 |
Equity Incentive Plans - Narrat
Equity Incentive Plans - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
RSUs and PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average period | 2 years 3 months 18 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 18.1 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Unrecognized compensation expense | $ 4.2 |
Minimum | RSUs | Company Officers and Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Maximum | RSUs | Company Officers and Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
Equity Incentive Plans - Restri
Equity Incentive Plans - Restricted Stock and Performance Stock Units (Details) - 2015 Omnibus Incentive Plan | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
RSUs | |
Number of Units | |
Outstanding at beginning of the period (in shares) | 881,832 |
Granted (in shares) | 654,660 |
Vested (in shares) | (515,701) |
Forfeited (in shares) | (9,813) |
Outstanding at end of the period (in shares) | 1,010,978 |
Undelivered (in shares) | 117,831 |
Weighted - Average Fair Value | |
Outstanding at beginning of the period (in dollars per share) | $ / shares | $ 21.75 |
Granted (in dollars per share) | $ / shares | 23.50 |
Vested (in dollars per share) | $ / shares | 20.53 |
Forfeited (in dollars per share) | $ / shares | 24.17 |
Outstanding at end of the period (in dollars per share) | $ / shares | $ 23.49 |
PSUs | |
Number of Units | |
Outstanding at beginning of the period (in shares) | 0 |
Granted (in shares) | 207,077 |
Vested (in shares) | 0 |
Forfeited (in shares) | 0 |
Outstanding at end of the period (in shares) | 207,077 |
Undelivered (in shares) | 0 |
Weighted - Average Fair Value | |
Outstanding at beginning of the period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 23.47 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Outstanding at end of the period (in dollars per share) | $ / shares | $ 23.47 |
Equity Incentive Plans Equity I
Equity Incentive Plans Equity Incentive Plans - Summary of Shares of Common Stock Issued (Details) - 2015 Omnibus Incentive Plan - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
RSUs | ||
Class of Stock [Line Items] | ||
Cumulative undelivered shares of common stock (in shares) | 117,831 | |
PSUs | ||
Class of Stock [Line Items] | ||
Cumulative undelivered shares of common stock (in shares) | 0 | |
Common Stock | RSUs | ||
Class of Stock [Line Items] | ||
Shares of common stock issued (in shares) | 401,986 | 398,628 |
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations (in shares) | (123,013) | (122,795) |
Net shares of common stock issued (in shares) | 278,973 | 275,833 |
Cumulative undelivered shares of common stock (in shares) | 177,249 | 0 |
Common Stock | PSUs | ||
Class of Stock [Line Items] | ||
Shares of common stock issued (in shares) | 900,226 | 0 |
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations (in shares) | (325,246) | 0 |
Net shares of common stock issued (in shares) | 574,980 | 0 |
Cumulative undelivered shares of common stock (in shares) | 0 | 0 |
Equity Incentive Plans - Alloca
Equity Incentive Plans - Allocation of Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense before income tax | $ 3,601 | $ 4,984 | $ 5,386 | $ 9,110 |
Income tax benefit | 746 | 1,029 | 1,136 | 1,882 |
Total compensation expense, net of income tax | 2,855 | 3,955 | 4,250 | 7,228 |
Cost of goods sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense before income tax | 194 | 113 | 361 | 207 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense before income tax | 3,174 | 4,559 | 4,641 | 8,292 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense before income tax | $ 233 | $ 312 | $ 384 | $ 611 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, Net of Tax (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | $ 926,984 |
Other comprehensive income (loss) before reclassifications | (423) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (2,794) |
Tax benefit (expense) | 609 |
Ending balance | 958,037 |
Foreign Currency Translation Adjustments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (71,853) |
Other comprehensive income (loss) before reclassifications | (375) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 |
Tax benefit (expense) | 0 |
Ending balance | (72,228) |
Gains (Losses) on Cash Flow Derivative Instruments | Foreign exchange derivative instruments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 5,258 |
Other comprehensive income (loss) before reclassifications | 2,194 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (4,599) |
Tax benefit (expense) | 777 |
Ending balance | 3,630 |
Gains (Losses) on Cash Flow Derivative Instruments | Interest rate swap | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (1,098) |
Other comprehensive income (loss) before reclassifications | (2,241) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 323 |
Tax benefit (expense) | 179 |
Ending balance | (2,837) |
Pension and Other Postretirement Adjustments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (21,346) |
Other comprehensive income (loss) before reclassifications | (1) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 1,482 |
Tax benefit (expense) | (347) |
Ending balance | (20,212) |
Accumulated Other Comprehensive Loss, Net of Tax | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (89,039) |
Ending balance | $ (91,647) |
Net Income per Common Share - C
Net Income per Common Share - Computation of basic and diluted net income per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Acushnet Holdings Corp. | $ 38,488 | $ 39,907 | $ 73,414 | $ 81,391 |
Weighted average number of common shares: | ||||
Basic (in shares) | 75,618,717 | 74,762,469 | 75,811,780 | 74,706,663 |
Diluted (in shares) | 75,858,114 | 75,028,658 | 76,060,003 | 74,911,551 |
Net income per common share attributable to Acushnet Holdings Corp.: | ||||
Basic (in dollars per share) | $ 0.51 | $ 0.53 | $ 0.97 | $ 1.09 |
Diluted (in dollars per share) | $ 0.51 | $ 0.53 | $ 0.97 | $ 1.09 |
Net Income per Common Share -_2
Net Income per Common Share - Calculation of diluted weighted average common shares outstanding (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
RSUs | ||||
Securities excluded from calculation of diluted weighted-average common shares outstanding as their impact was anti-dilutive (in shares) | 0 | 0 | 2,025 | 0 |
Segment Information - Reconcili
Segment Information - Reconciliation (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 4 | |||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 462,218 | $ 478,138 | $ 895,920 | $ 919,939 |
Segment operating income | 61,135 | 64,579 | 113,362 | 126,863 |
Reconciling items: | ||||
Interest expense, net | (5,213) | (5,247) | (10,096) | (9,655) |
Income before income taxes | 55,141 | 58,788 | 103,455 | 117,098 |
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income | 63,206 | 65,876 | 115,264 | 126,825 |
Reconciling Items | ||||
Reconciling items: | ||||
Interest expense, net | (5,213) | (5,247) | (10,096) | (9,655) |
Non-service cost component of net periodic benefit cost | (1,254) | (695) | (992) | (688) |
Transaction fees | (1,947) | 0 | (1,947) | 0 |
Other | 349 | (1,146) | 1,226 | 616 |
Titleist golf balls | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 173,305 | 172,211 | 314,972 | 297,117 |
Segment operating income | 37,972 | 36,848 | 57,700 | 50,828 |
Titleist golf clubs | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 107,010 | 117,839 | 198,328 | 234,732 |
Segment operating income | 6,865 | 10,521 | 6,460 | 26,904 |
Titleist golf gear | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 46,837 | 45,822 | 92,018 | 90,167 |
Segment operating income | 9,066 | 8,254 | 18,217 | 16,038 |
FootJoy golf wear | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 114,095 | 119,496 | 255,076 | 260,202 |
Segment operating income | 4,156 | 5,387 | 24,300 | 25,642 |
Other | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 20,971 | 22,770 | 35,526 | 37,721 |
Segment operating income | $ 5,147 | $ 4,866 | $ 8,587 | $ 7,413 |
Segment Information - Geographi
Segment Information - Geographical Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | $ 462,218 | $ 478,138 | $ 895,920 | $ 919,939 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 256,267 | 252,740 | 486,650 | 472,029 |
EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 60,001 | 67,674 | 131,079 | 140,716 |
Japan | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 38,813 | 45,487 | 79,548 | 97,616 |
Korea | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 60,410 | 61,974 | 109,452 | 114,649 |
Rest of world | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | $ 46,727 | $ 50,263 | $ 89,191 | $ 94,929 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2019 | $ 173,942 |
2020 | 25,553 |
2021 | 7,350 |
2022 | 2,335 |
2023 | 1,546 |
Thereafter | $ 4,807 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Estimated receivable for indemnifications | $ 9.2 | $ 8.9 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Jul. 03, 2019USD ($) |
KJUS | Subsequent Event | |
Subsequent Event [Line Items] | |
Purchase price, net of estimated cash acquired | $ 28.7 |
Uncategorized Items - golf-10qq
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,501,000) |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,501,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 4,631,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (6,132,000) |