Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-37935 | |
Entity Registrant Name | Acushnet Holdings Corp. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-2644353 | |
Entity Address, Address Line One | 333 Bridge Street | |
Entity Address, City or Town | Fairhaven, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02719 | |
City Area Code | 800 | |
Local Phone Number | 225-8500 | |
Title of 12(b) Security | Common Stock - $0.001 par value per share | |
Trading Symbol | GOLF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 61,813,629 | |
Entity Central Index Key | 0001672013 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash, cash equivalents and restricted cash ($13,013 and $12,532 attributable to the variable interest entity ("VIE")) | $ 80,286 | $ 65,435 |
Accounts receivable, net | 411,565 | 201,352 |
Inventories ($3,714 and $9,621 attributable to the VIE) | 482,605 | 615,535 |
Prepaid and other assets | 119,068 | 114,370 |
Total current assets | 1,093,524 | 996,692 |
Property, plant and equipment, net ($8,508 and $9,044 attributable to the VIE) | 299,740 | 295,343 |
Goodwill ($32,312 and $32,312 attributable to the VIE) | 221,836 | 225,302 |
Intangible assets, net | 530,187 | 537,407 |
Deferred income taxes | 24,587 | 31,454 |
Other assets ($1,924 and $1,972 attributable to the VIE) | 104,284 | 110,479 |
Total assets | 2,274,158 | 2,196,677 |
Current liabilities | ||
Short-term debt | 23,146 | 28,997 |
Current portion of long-term debt | 713 | 351 |
Accounts payable ($2,837 and $6,059 attributable to the VIE) | 156,971 | 150,514 |
Accrued taxes | 45,248 | 46,398 |
Accrued compensation and benefits ($480 and $1,233 attributable to the VIE) | 87,513 | 111,136 |
Accrued expenses and other liabilities ($3,772 and $1,687 attributable to the VIE) | 165,596 | 113,739 |
Total current liabilities | 479,187 | 451,135 |
Long-term debt | 728,129 | 671,819 |
Deferred income taxes | 7,323 | 7,080 |
Accrued pension and other postretirement benefits | 70,983 | 69,634 |
Other noncurrent liabilities | 79,612 | 84,137 |
Total liabilities | 1,365,234 | 1,283,805 |
Commitments and contingencies (Note 15) | ||
Redeemable noncontrolling interests | 10,215 | 9,785 |
Shareholders' equity | ||
Common stock, $0.001 par value, 500,000,000 shares authorized; 62,728,903 and 63,429,243 shares issued | 63 | 63 |
Additional paid-in capital | 792,559 | 808,615 |
Accumulated other comprehensive loss, net of tax | (123,038) | (104,349) |
Retained earnings | 231,608 | 159,906 |
Treasury stock, at cost; (587,520 of accrued share repurchases) (Note 10) | (37,499) | 0 |
Total equity attributable to Acushnet Holdings Corp. | 863,693 | 864,235 |
Noncontrolling interests | 35,016 | 38,852 |
Total shareholders' equity | 898,709 | 903,087 |
Total liabilities, redeemable noncontrolling interests and shareholders' equity | $ 2,274,158 | $ 2,196,677 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Cash, cash equivalents and restricted cash | $ 80,286 | $ 65,435 |
Inventories | 482,605 | 615,535 |
Property, plant and equipment, net | 299,740 | 295,343 |
Goodwill | 221,836 | 225,302 |
Other assets | 104,284 | 110,479 |
Accounts payable | 156,971 | 150,514 |
Accrued compensation and benefits | 87,513 | 111,136 |
Accrued expenses and other liabilities | $ 165,596 | $ 113,739 |
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) | 62,728,903 | 63,429,243 |
Treasury stock, at cost (in shares) | 587,520 | |
VIE | ||
Cash, cash equivalents and restricted cash | $ 13,013 | $ 12,532 |
Inventories | 3,714 | 9,621 |
Property, plant and equipment, net | 8,508 | 9,044 |
Goodwill | 32,312 | 32,312 |
Other assets | 1,924 | 1,972 |
Accounts payable | 2,837 | 6,059 |
Accrued compensation and benefits | 480 | 1,233 |
Accrued expenses and other liabilities | $ 3,772 | $ 1,687 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 683,867 | $ 689,363 | $ 1,391,421 | $ 1,375,653 |
Cost of goods sold | 312,113 | 320,840 | 641,728 | 641,458 |
Gross profit | 371,754 | 368,523 | 749,693 | 734,195 |
Operating expenses: | ||||
Selling, general and administrative | 246,084 | 242,015 | 482,676 | 464,554 |
Research and development | 16,140 | 16,507 | 32,593 | 31,047 |
Intangible amortization | 3,507 | 3,511 | 7,020 | 7,200 |
Income from operations | 106,023 | 106,490 | 227,404 | 231,394 |
Interest expense, net | 14,104 | 10,949 | 27,180 | 20,845 |
Other expense, net | 543 | 428 | 882 | 1,092 |
Income before income taxes | 91,376 | 95,113 | 199,342 | 209,457 |
Income tax expense | 21,212 | 20,749 | 44,619 | 41,474 |
Net income | 70,164 | 74,364 | 154,723 | 167,983 |
Less: Net loss (income) attributable to noncontrolling interests | 1,264 | 291 | 4,467 | (53) |
Net income attributable to Acushnet Holdings Corp. | $ 71,428 | $ 74,655 | $ 159,190 | $ 167,930 |
Net income per common share attributable to Acushnet Holdings Corp.: | ||||
Basic (in dollars per share) | $ 1.12 | $ 1.09 | $ 2.48 | $ 2.46 |
Diluted (in dollars per share) | $ 1.11 | $ 1.09 | $ 2.47 | $ 2.45 |
Weighted average number of common shares: | ||||
Basic (in shares) | 63,935,451 | 68,341,608 | 64,278,286 | 68,277,693 |
Diluted (in shares) | 64,160,688 | 68,649,044 | 64,524,931 | 68,647,983 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 70,164 | $ 74,364 | $ 154,723 | $ 167,983 |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | (6,989) | (2,493) | (19,060) | (1,928) |
Cash flow derivative instruments: | ||||
Unrealized holding gains arising during period | 2,185 | 5,063 | 6,106 | 4,230 |
Reclassification adjustments included in net income | (2,922) | (1,270) | (5,920) | (6,481) |
Tax benefit (expense) | 314 | (1,246) | 111 | 538 |
Cash flow derivative instruments, net | (423) | 2,547 | 297 | (1,713) |
Pension and other postretirement benefits: | ||||
Pension and other postretirement benefits adjustments | (163) | (698) | (253) | (1,104) |
Tax benefit | 41 | 158 | 61 | 248 |
Pension and other postretirement benefits adjustments, net | (122) | (540) | (192) | (856) |
Total other comprehensive loss | (7,534) | (486) | (18,955) | (4,497) |
Comprehensive income | 62,630 | 73,878 | 135,768 | 163,486 |
Less: Comprehensive loss (income) attributable to noncontrolling interests | 1,239 | 175 | 4,733 | (233) |
Comprehensive income attributable to Acushnet Holdings Corp. | $ 63,869 | $ 74,053 | $ 140,501 | $ 163,253 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Net income | $ 154,723 | $ 167,983 |
Adjustments to reconcile net income to cash flows provided by operating activities | ||
Depreciation and amortization | 27,751 | 25,374 |
Unrealized foreign exchange gain | (86) | (3,341) |
Amortization of debt issuance costs | 866 | 337 |
Share-based compensation | 14,967 | 16,064 |
Loss (gain) on disposals of property, plant and equipment | 766 | (15) |
Deferred income taxes | 6,735 | 23,302 |
Changes in operating assets and liabilities | ||
Accounts receivable | (217,868) | (180,770) |
Inventories | 120,197 | 110,388 |
Accounts payable | 3,570 | (34,223) |
Accrued taxes | 1,300 | 23,572 |
Other assets and liabilities | (10,804) | (29,054) |
Cash flows provided by operating activities | 102,117 | 119,617 |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (22,110) | (27,228) |
Additions to intangible assets (Note 17) | 0 | (25,235) |
Other, net | 0 | (887) |
Cash flows used in investing activities | (22,110) | (53,350) |
Cash flows from financing activities | ||
Repayments of short-term borrowings, net (Note $5) | 0 | (4,879) |
Proceeds from credit facilities (Note $5) | 692,681 | 779,920 |
Repayments of credit facilities (Note $5) | (638,797) | (661,605) |
Purchases of common stock | (72,250) | (138,021) |
Dividends paid on common stock | (28,076) | (27,413) |
Payment of employee restricted stock tax withholdings | (16,577) | (11,461) |
Other, net | 0 | 1,078 |
Cash flows used in financing activities | (63,019) | (62,381) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (2,137) | (249) |
Net increase in cash, cash equivalents and restricted cash | 14,851 | 3,637 |
Cash, cash equivalents and restricted cash, beginning of year | 65,435 | 58,904 |
Cash, cash equivalents and restricted cash, end of period | 80,286 | 62,541 |
Supplemental non-cash information | ||
Purchases of property, plant and equipment, accrued not paid | 6,859 | 3,771 |
Additions to right-of-use assets obtained in exchange for operating lease obligations | 5,366 | 49,574 |
Additions to right-of-use assets obtained in exchange for finance lease obligations | 434 | 607 |
Dividend equivalents rights ("DERs") declared not paid | 944 | 1,008 |
Share repurchase liability (Note 10) | $ 37,499 | $ 14,846 |
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 (in shares) at Dec. 31, 2022 | 76,322 | |||||||
Beginning balance at Dec. 31, 2022 | $ 976,703 | $ 939,056 | $ 76 | $ 960,685 | $ (109,668) | $ 473,130 | $ (385,167) | $ 37,647 |
Changes in stockholders' equity | ||||||||
Dividends and dividend equivalents declared | (13,629) | |||||||
Ending balance (in shares) at Mar. 31, 2023 | 76,769 | |||||||
Ending balance at Mar. 31, 2023 | 1,025,148 | 987,122 | $ 77 | 956,834 | (113,679) | 552,596 | (408,706) | 38,026 |
Beginning balance (in shares) at Dec. 31, 2022 | 76,322 | |||||||
Beginning balance at Dec. 31, 2022 | 976,703 | 939,056 | $ 76 | 960,685 | (109,668) | 473,130 | (385,167) | 37,647 |
Changes in stockholders' equity | ||||||||
Sale of equity to redeemable noncontrolling interest | 264 | 264 | 444 | (180) | ||||
Net income (loss) | 168,281 | 167,930 | 167,930 | 351 | ||||
Other comprehensive loss | (4,677) | (4,677) | (4,677) | |||||
Share-based compensation | 15,736 | 15,736 | 15,736 | |||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) (in shares) | 460 | |||||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) | (11,418) | (11,418) | $ 1 | (11,419) | ||||
Purchases of common stock (Note 10) | (47,530) | (47,530) | (47,530) | |||||
Share repurchase liability (Note 10) | (14,846) | (14,846) | (14,846) | |||||
Dividends and dividend equivalents declared | (27,296) | (27,296) | (27,296) | |||||
Ending balance (in shares) at Jun. 30, 2023 | 76,782 | |||||||
Ending balance at Jun. 30, 2023 | 1,055,217 | 1,017,219 | $ 77 | 965,446 | (114,345) | 613,584 | (447,543) | 37,998 |
Beginning balance (in shares) at Dec. 31, 2022 | 76,322 | |||||||
Beginning balance at Dec. 31, 2022 | 976,703 | 939,056 | $ 76 | 960,685 | (109,668) | 473,130 | (385,167) | 37,647 |
Changes in stockholders' equity | ||||||||
Dividends and dividend equivalents declared | (53,335) | |||||||
Ending balance (in shares) at Dec. 31, 2023 | 63,429 | |||||||
Ending balance at Dec. 31, 2023 | 903,087 | 864,235 | $ 63 | 808,615 | (104,349) | 159,906 | 0 | 38,852 |
Beginning balance (in shares) at Mar. 31, 2023 | 76,769 | |||||||
Beginning balance at Mar. 31, 2023 | 1,025,148 | 987,122 | $ 77 | 956,834 | (113,679) | 552,596 | (408,706) | 38,026 |
Changes in stockholders' equity | ||||||||
Net income (loss) | 74,627 | 74,655 | 74,655 | (28) | ||||
Other comprehensive loss | (666) | (666) | (666) | |||||
Share-based compensation | 8,617 | 8,617 | 8,617 | |||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) (in shares) | 13 | |||||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) | (5) | (5) | (5) | |||||
Purchases of common stock (Note 10) | (23,991) | (23,991) | (23,991) | |||||
Share repurchase liability (Note 10) | (14,846) | (14,846) | (14,846) | |||||
Dividends and dividend equivalents declared | (13,667) | (13,667) | (13,667) | |||||
Ending balance (in shares) at Jun. 30, 2023 | 76,782 | |||||||
Ending balance at Jun. 30, 2023 | 1,055,217 | 1,017,219 | $ 77 | 965,446 | (114,345) | 613,584 | (447,543) | 37,998 |
Beginning balance (in shares) at Dec. 31, 2023 | 63,429 | |||||||
Beginning balance at Dec. 31, 2023 | 903,087 | 864,235 | $ 63 | 808,615 | (104,349) | 159,906 | 0 | 38,852 |
Changes in stockholders' equity | ||||||||
Dividends and dividend equivalents declared | (14,155) | |||||||
Ending balance (in shares) at Mar. 31, 2024 | 63,288 | |||||||
Ending balance at Mar. 31, 2024 | 919,439 | 883,736 | $ 63 | 794,071 | (115,479) | 205,081 | 0 | 35,703 |
Beginning balance (in shares) at Dec. 31, 2023 | 63,429 | |||||||
Beginning balance at Dec. 31, 2023 | 903,087 | 864,235 | $ 63 | 808,615 | (104,349) | 159,906 | 0 | 38,852 |
Changes in stockholders' equity | ||||||||
Net income (loss) | 155,354 | 159,190 | 159,190 | (3,836) | ||||
Other comprehensive loss | (18,689) | (18,689) | (18,689) | |||||
Share-based compensation | 14,639 | 14,639 | 14,639 | |||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) (in shares) | 435 | |||||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) | (16,354) | (16,354) | (16,354) | |||||
Purchases of common stock (Note 10) (in shares) | (1,135) | |||||||
Purchases of common stock (Note 10) | (72,801) | (72,801) | (14,341) | (58,460) | ||||
Share repurchase liability (Note 10) | (37,499) | (37,499) | (37,499) | |||||
Dividends and dividend equivalents declared | (28,028) | (28,028) | (28,028) | |||||
Redemption value adjustment (Note 1) | (1,000) | (1,000) | (1,000) | |||||
Ending balance (in shares) at Jun. 30, 2024 | 62,729 | |||||||
Ending balance at Jun. 30, 2024 | 898,709 | 863,693 | $ 63 | 792,559 | (123,038) | 231,608 | (37,499) | 35,016 |
Beginning balance (in shares) at Mar. 31, 2024 | 63,288 | |||||||
Beginning balance at Mar. 31, 2024 | 919,439 | 883,736 | $ 63 | 794,071 | (115,479) | 205,081 | 0 | 35,703 |
Changes in stockholders' equity | ||||||||
Net income (loss) | 70,741 | 71,428 | 71,428 | (687) | ||||
Other comprehensive loss | (7,559) | (7,559) | (7,559) | 0 | ||||
Share-based compensation | 7,379 | 7,379 | 7,379 | |||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) (in shares) | 29 | |||||||
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) | (1,420) | (1,420) | (1,420) | |||||
Purchases of common stock (Note 10) (in shares) | (588) | |||||||
Purchases of common stock (Note 10) | (37,499) | (37,499) | (7,471) | (30,028) | ||||
Share repurchase liability (Note 10) | (37,499) | (37,499) | (37,499) | |||||
Dividends and dividend equivalents declared | (13,873) | (13,873) | (13,873) | |||||
Redemption value adjustment (Note 1) | (1,000) | (1,000) | (1,000) | |||||
Ending balance (in shares) at Jun. 30, 2024 | 62,729 | |||||||
Ending balance at Jun. 30, 2024 | $ 898,709 | $ 863,693 | $ 63 | $ 792,559 | $ (123,038) | $ 231,608 | $ (37,499) | $ 35,016 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of Acushnet Holdings Corp. (the “Company”), its wholly-owned subsidiaries and less than wholly-owned subsidiaries, including a variable interest entity (“VIE”) in which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Certain information in footnote disclosures normally included in annual financial statements has been condensed or omitted for the interim periods presented in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP. The year-end balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the unaudited condensed consolidated financial statements do not include all disclosures required by U.S. GAAP. In the opinion of management, the financial statements contain all normal and recurring adjustments necessary to state fairly the financial position and results of operations of the Company. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of results to be expected for the full year ending December 31, 2024, nor were those of the comparable 2023 periods representative of those actually experienced for the full year ended December 31, 2023. 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, 2023 included in its Annual Report on Form 10-K filed with the SEC on February 29, 2024. Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Variable Interest Entities VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities independently, or (ii) have equity holders that do not have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the entity’s expected losses, or the right to receive the entity’s expected residual returns. The Company consolidates a VIE when it is the primary beneficiary, which is the party that has both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) through its interests in the VIE, the obligation to absorb expected losses or the right to receive expected benefits from the VIE that could potentially be significant to the VIE. The Company consolidates the accounts of Acushnet Lionscore Limited (“Lionscore”), a VIE which is 40% owned by the Company. The sole purpose of the VIE is to manufacture the Company’s golf footwear and as such, the Company is deemed to be the primary beneficiary. The Company has presented separately on its unaudited condensed consolidated balance sheets, to the extent material, the assets of its consolidated VIE that can only be used to settle specific obligations of its consolidated VIE and the liabilities of its consolidated VIE for which creditors do not have recourse to its general credit. The general creditors of the VIE do not have recourse to the Company. Certain directors of the VIE have guaranteed the credit lines of the VIE, for which there were no outstanding borrowings as of June 30, 2024 and December 31, 2023. In addition, pursuant to the terms of the agreement governing the VIE, the Company is not required to provide financial support to the VIE. Noncontrolling Interests and Redeemable Noncontrolling Interests The ownership interests held by owners other than the Company in less than wholly-owned subsidiaries are classified as noncontrolling interests. The financial results and position of noncontrolling interests are included in the Company’s unaudited condensed consolidated financial statements. The value attributable to the noncontrolling interests is presented on the unaudited condensed consolidated balance sheets, separately from the equity attributable to the Company. Net income (loss) and comprehensive income (loss) attributable to noncontrolling interests are presented separately on the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of comprehensive income, respectively. Redeemable noncontrolling interests are those noncontrolling interests which are or may become redeemable at a fixed or determinable price on a fixed or determinable date, at the option of the holder, or upon occurrence of an event. The Company initially records the redeemable noncontrolling interest at its acquisition date fair value. The carrying amount of the redeemable noncontrolling interest is subsequently adjusted to the greater amount of either the initial carrying amount, increased or decreased for the redeemable noncontrolling interest's share of comprehensive income (loss) or the redemption value, assuming the noncontrolling interest is redeemable at the balance sheet date. This adjustment is recognized through retained earnings and is not reflected in net income (loss) or comprehensive income (loss). During the three and six months ended June 30, 2024, the Company recorded a $1.0 million redemption value adjustment to increase the carrying amount of redeemable noncontrolling interests. The value attributable to redeemable noncontrolling interests and any related loans to minority shareholders, which are recorded as a reduction to redeemable noncontrolling interests, are presented in the unaudited condensed consolidated balance sheets as temporary equity between liabilities and shareholders’ equity. The amount of the loan to minority shareholders was $4.4 million as of both June 30, 2024 and December 31, 2023. Cash, Cash Equivalents and Restricted Cash Cash held in Company checking accounts is included in cash. Cash equivalents consist of short-term highly liquid investments with original maturities of three months or less which are readily convertible into cash. The Company classifies as restricted certain cash that is not available for use in its operations. As of June 30, 2024 and December 31, 2023, the amount of restricted cash included in cash, cash equivalents and restricted cash on the unaudited condensed consolidated balance sheets was $1.6 million and $1.7 million, respectively. Foreign Currency Transactions Foreign currency transaction losses included in selling, general and administrative expenses were $0.9 million and $1.2 million for the three months ended June 30, 2024 and 2023, respectively. Foreign currency transaction losses included in selling, general and administrative expenses were $1.0 million and $2.5 million for the six months ended June 30, 2024 and 2023, respectively. Recently Issued Accounting Standards In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures." The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740) - Improvements to Income Tax Disclosures." |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company estimates expected credit losses using a number of factors, including customer credit ratings, age of receivables, historical credit loss information and current and forecasted economic conditions, which could affect the collectability of the reported amounts. All of these factors have been considered in the estimate of expected credit losses for the periods presented. The activity related to the allowance for doubtful accounts was as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Balance at beginning of period $ 8,863 $ 8,508 $ 8,840 $ 8,258 Bad debt expense 339 543 651 797 Amount of receivables written off (49) (50) (245) (102) Foreign currency translation (30) 7 (123) 55 Balance at end of period $ 9,123 $ 9,008 $ 9,123 $ 9,008 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories were as follows: June 30, December 31, (in thousands) 2024 2023 Raw materials and supplies $ 142,481 $ 157,455 Work-in-process 27,368 24,949 Finished goods 312,756 433,131 Inventories $ 482,605 $ 615,535 |
Product Warranty
Product Warranty | 6 Months Ended |
Jun. 30, 2024 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty | Product Warranty The Company has defined warranties generally ranging from one 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) 2024 2023 2024 2023 Balance at beginning of period $ 5,182 $ 4,386 $ 4,997 $ 3,951 Provision 2,261 2,070 3,798 3,745 Claims paid/costs incurred (1,901) (1,423) (3,197) (2,652) Foreign currency translation (31) 16 (87) 5 Balance at end of period $ 5,511 $ 5,049 $ 5,511 $ 5,049 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements Credit Facility The Company's credit agreement, dated as of December 23, 2019 (as subsequently amended on July 3, 2020 and August 2, 2022 (the "Credit Agreement")), provides for a $950.0 million multi-currency revolving credit facility, due to mature on August 2, 2027. On May 2, 2024, the Company entered into a third amendment (the “Third Amendment”) to its Credit Agreement (as so amended, the “Amended Credit Agreement”). On June 28, 2024, the Canadian Dollar Offered Rate (“CDOR”) ceased to be published (the “CORRA Transition Date”). Pursuant to the Third Amendment, for loans denominated in Canadian dollars borrowed or continued after the CORRA Transition Date, the Adjusted CDOR (as defined in the Credit Agreement) is replaced by adjusted term CORRA (the Canadian Overnight Repo Rate Average administered by Bank of Canada) plus a credit spread adjustment of 0.29547% (for a one-month Interest Period) or 0.32138% (for a three-month Interest Period) (“Adjusted Term CORRA”). The applicable margin for Adjusted Term CORRA loans remains 1.00% to 1.75%, depending on the Net Average Total Leverage Ratio (as defined in the Amended Credit Agreement). The Amended Credit Agreement contains customary affirmative and restrictive covenants, including, among others, financial covenants based on the Company's leverage and interest coverage ratios. The Amended Credit Agreement also includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations to be immediately due and payable. As of June 30, 2024, the Company was in compliance with all covenants under its Amended Credit Agreement. As of June 30, 2024 and December 31, 2023, there were $379.7 million and $325.2 million, respectively, in outstanding borrowings under the Company's multi-currency revolving credit facility with a weighted average interest rate of 6.49% and 6.57%, respectively. As of June 30, 2024, the Company had available borrowings under its multi-currency revolving credit facility of $565.8 million after giving effect to $4.5 million of outstanding letters of credit. Senior Unsecured Notes On October 3, 2023, Acushnet Company (the "Issuer"), a wholly owned subsidiary of the Company, completed the issuance and sale of $350.0 million in gross proceeds of the Issuer's 7.375% senior unsecured notes due 2028 (the “Notes”). The Notes were issued pursuant to an Indenture, dated October 3, 2023 (the “Indenture”), among the Issuer, U.S. Bank Trust Company, National Association, as trustee of the Notes, and the Company and certain subsidiaries of the Issuer as guarantors. The proceeds from the Notes offering were used to repay $345.6 million of the outstanding borrowings under the Company's multi-currency revolving credit facility, as well as to pay fees and expenses related to the Notes offering. In connection with the Notes offering, the Company incurred fees and expenses of approximately $6.4 million, of which approximately $6.3 million was capitalized as debt issuance costs within long-term debt on the unaudited condensed consolidated balance sheet and is being amortized to interest expense, net over the term of the Notes using the effective interest rate method. The fair value of the Notes, based on third-party quotes (Level 2), as of June 30, 2024 and December 31, 2023 was $362.7 million and $365.1 million, respectively. The Notes bear interest at a stated interest rate of 7.375% (an effective interest rate of 7.813%) per year, with interest payable semi-annually on April 15 and October 15 of each year, beginning on April 15, 2024. Accrued interest related to the Notes of $5.6 million and $6.5 million was included within accrued expenses and other liabilities on the unaudited condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023, respectively. The Indenture contains covenants that, among other things, limit the ability of the Company and its restricted subsidiaries to incur additional debt or issue certain preferred stock; pay dividends or repurchase or redeem capital stock; prepay, redeem or repurchase certain debt; make loans and investments; sell assets; incur liens; enter into certain types of transactions with the Company’s affiliates; and consolidate or merge with or into other companies. As of June 30, 2024, the Company was in compliance with all covenants under the Indenture. Other Short-Term Borrowings The Company has certain unsecured local credit facilities available through its subsidiaries. Amounts outstanding under other short-term borrowings are presented in short-term debt in the unaudited condensed consolidated balance sheets with the proceeds and repayments presented on a gross basis in the unaudited condensed consolidated statements of cash flows. There were $23.1 million and $29.0 million in outstanding borrowings under the Company's local credit facilities as of June 30, 2024 and December 31, 2023, respectively. The weighted average interest rate applicable to the outstanding borrowings was 0.34% and 0.45% as of June 30, 2024 and December 31, 2023, respectively. As of June 30, 2024, the Company had available borrowings remaining under these local credit facilities of $34.6 million. Letters of Credit |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company principally uses derivative financial instruments to reduce the impact of foreign currency fluctuations and interest rate variability on the Company's results of operations. The principal derivative financial instruments the Company enters into are foreign exchange forward contracts and interest rate swaps. The Company does not enter into derivative financial instrument contracts for trading or speculative purposes. Foreign Exchange Derivative Instruments Foreign exchange forward contracts are foreign exchange derivative instruments primarily used to reduce foreign currency risk related to transactions denominated in a currency other than functional currency. These instruments are designated as cash flow hedges. The periods of the foreign exchange forward contracts correspond to the periods of the hedged forecasted transactions, which do not exceed 24 months subsequent to the latest balance sheet date. The primary foreign exchange forward contracts pertain to the U.S. dollar, the Japanese yen, the British pound sterling, the Canadian dollar, the Korean won and the euro. The gross U.S. dollar equivalent notional amount outstanding of all foreign exchange forward contracts designated under hedge accounting as of June 30, 2024 and December 31, 2023 was $209.7 million and $209.6 million, respectively. Interest Rate Derivative Instruments From time to time, the Company enters into interest rate swap contracts to reduce interest rate risk related to floating rate debt. Under the contracts, the Company pays fixed and receives variable rate interest, in effect converting a portion of its floating rate debt to fixed rate debt. Interest rate swap contracts are accounted for as cash flow hedges. The notional value of the Company's outstanding interest rate swap contracts was $100.0 million as of June 30, 2024 and December 31, 2023. 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 2024 2023 Prepaid and other assets Foreign exchange forward $ 4,578 $ 4,378 Interest rate swap 553 452 Accrued expenses and other liabilities Foreign exchange forward 1,093 1,931 Interest rate swap — 63 Other noncurrent liabilities Interest rate swap — 88 The hedge instrument gains recognized in accumulated other comprehensive loss, net of tax was as follows: Three months ended Six months ended June 30, June 30, (in thousands) 2024 2023 2024 2023 Type of hedge Foreign exchange forward $ 1,995 $ 3,538 $ 5,337 $ 3,061 Interest rate swap 190 1,525 769 1,169 Total $ 2,185 $ 5,063 $ 6,106 $ 4,230 Gains and losses on derivative instruments designated as cash flow hedges are reclassified from accumulated other comprehensive loss, net of tax at the time the forecasted hedged transaction impacts the statements of operations or at the time the hedge is determined to be ineffective. Based on the current valuation, during the next 12 months the Company expects to reclassify a net gain of $6.4 million related to foreign exchange derivative instruments from accumulated other comprehensive loss, net of tax, into cost of goods sold and a net gain of $0.6 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 gains recognized on the unaudited condensed consolidated statements of operations were as follows: Three months ended Six months ended June 30, June 30, (in thousands) 2024 2023 2024 2023 Location of gains in statements of operations Foreign exchange forward: Cost of goods sold $ 2,665 $ 1,097 $ 5,403 $ 6,293 Selling, general and administrative (1) 658 147 1,381 357 Total $ 3,323 $ 1,244 $ 6,784 $ 6,650 Interest Rate Swap: Interest expense, net $ 257 $ 173 $ 517 $ 188 Total $ 257 $ 173 $ 517 $ 188 _______________________________________________________________________________ (1) Relates to net gains on foreign exchange forward contracts derived from previously designated cash flow hedges. Credit Risk The Company enters into derivative contracts with major financial institutions with investment grade credit ratings and is exposed to credit losses in the event of non-performance by these financial institutions. This credit risk is generally limited to the unrealized gains in the derivative contracts. However, the Company monitors the credit quality of these financial institutions, as well as its own credit quality, and considers the risk of counterparty default to be minimal. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 were as follows: Fair Value Measurements as of June 30, 2024 using: (in thousands) Level 1 Level 2 Level 3 Balance Sheet Location Assets Rabbi trust $ 4,663 $ — $ — Prepaid and other assets Foreign exchange derivative instruments — 4,578 — Prepaid and other assets Interest rate derivative instruments — 553 — Prepaid and other assets Deferred compensation program assets 803 — — Other assets Total assets $ 5,466 $ 5,131 $ — Liabilities Foreign exchange derivative instruments $ — $ 1,093 $ — Accrued expenses and other liabilities Deferred compensation program liabilities 803 — — Other noncurrent liabilities Total liabilities $ 803 $ 1,093 $ — Assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 were as follows: Fair Value Measurements as of December 31, 2023 using: (in thousands) Level 1 Level 2 Level 3 Balance Sheet Location Assets Rabbi trust $ 4,334 $ — $ — Prepaid and other assets Foreign exchange derivative instruments — 4,378 — Prepaid and other assets Interest rate derivative instruments — 452 — Prepaid and other assets Deferred compensation program assets 725 — — Other assets Total assets $ 5,059 $ 4,830 $ — Liabilities Foreign exchange derivative instruments $ — $ 1,931 $ — Accrued expenses and other liabilities Interest rate derivative instruments — 63 — Accrued expenses and other liabilities Deferred compensation program liabilities 725 — — Other noncurrent liabilities Interest rate derivative instruments — 88 — Other noncurrent liabilities Total liabilities $ 725 $ 2,082 $ — Rabbi trust assets are used to fund certain retirement obligations of the Company. The assets underlying the Rabbi trust are equity and fixed income exchange-traded funds. Deferred compensation program assets and liabilities represent a program where select employees could defer compensation until termination of employment. Effective July 29, 2011, this program was amended to cease all employee compensation deferrals and provided for the distribution of all previously deferred employee compensation. The program remains in effect with respect to the value attributable to the employer match contributed prior to July 29, 2011. Foreign exchange derivative instruments are foreign exchange forward contracts primarily used to limit currency risk that would otherwise result from changes in foreign exchange rates (Note 6). The Company uses the mid-price of foreign exchange forward rates as of the close of business on the valuation date to value each foreign exchange forward contract at each reporting period. Interest rate derivative instruments are interest rate swap contracts used to reduce interest rate risk related to the Company's floating rate debt (Note 6). The valuation for the interest rate swap is calculated as the net of the discounted future cash flows of the pay and receive legs of the swap. Mid-market interest rates on the valuation date are used to create the forward curve for floating legs and discount curve. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Components of net periodic benefit cost (credit) were as follows: Pension Benefits Postretirement Benefits Three months ended June 30, (in thousands) 2024 2023 2024 2023 Components of net periodic benefit cost (credit) Service cost $ 1,306 $ 1,416 $ 75 $ 96 Interest cost 2,685 2,716 127 159 Expected return on plan assets (1,834) (1,966) — — Settlements — (27) — — Amortization of net loss (gain) 59 24 (239) (246) Amortization of prior service cost (credit) 23 46 (34) (34) Net periodic benefit cost (credit) $ 2,239 $ 2,209 $ (71) $ (25) Pension Benefits Postretirement Benefits Six months ended June 30, (in thousands) 2024 2023 2024 2023 Components of net periodic benefit cost (credit) Service cost $ 2,631 $ 2,850 $ 166 $ 215 Interest cost 5,388 5,659 260 331 Expected return on plan assets (3,672) (3,928) — — Settlements — (27) — — Amortization of net loss (gain) 117 45 (508) (447) Amortization of prior service cost (credit) 46 92 (68) (68) Net periodic benefit cost (credit) $ 4,510 $ 4,691 $ (150) $ 31 The non-service cost components of net periodic benefit cost (credit) are included in other expense, net in the unaudited condensed consolidated statements of operations. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense increased $0.5 million to $21.2 million for the three months ended June 30, 2024 compared to $20.7 million for the three months ended June 30, 2023. The Company’s effective tax rate ("ETR") was 23.2% for the three months ended June 30, 2024 compared to 21.8% for the three months ended June 30, 2023. Income tax expense increased $3.1 million to $44.6 million for the six months ended June 30, 2024 compared to $41.5 million for the six months ended June 30, 2023. The Company’s ETR was 22.4% for the six months ended June 30, 2024 compared to 19.8% for the six months ended June 30, 2023. The ETR for the three and six months ended June 30, 2024 differed from the U.S. statutory tax rate primarily due to the U.S. taxation of foreign income, state income taxes and the Company's geographic mix of income earned by the Company's international subsidiaries, partially offset by the impact of the U.S. deduction for foreign derived intangible income and federal and state tax credits. The ETR for the three and six months ended June 30, 2023 differed from the U.S. statutory tax rate primarily due to the impact of the U.S. deduction for foreign derived intangible income and federal and state tax credits, as well as the U.S. taxation of foreign income and the Company's geographic mix of income. |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Common Stock | Common Stock Dividends The Company declared dividends per common share, including DERs (Note 11), during the periods presented as follows: Dividends per Common Share Amount (in thousands) 2024: Second Quarter $ 0.215 $ 13,873 First Quarter 0.215 14,155 Total dividends declared in 2024 $ 0.430 $ 28,028 2023: Fourth Quarter $ 0.195 $ 12,941 Third Quarter 0.195 13,098 Second Quarter 0.195 13,667 First Quarter 0.195 13,629 Total dividends declared in 2023 $ 0.780 $ 53,335 During the third quarter of 2024, the Company's Board of Directors declared a dividend of $0.215 per share of common stock to shareholders of record as of September 6, 2024 and payable on September 20, 2024. Share Repurchase Program As of June 30, 2024, the Board of Directors had authorized the Company to repurchase up to $1.0 billion of its issued and outstanding common stock. Share repurchases may be effected from time to time in open market or privately negotiated transactions, including transactions with affiliates, with the timing of purchases and the amount of stock purchased generally determined at the discretion of the Company consistent with the Company's general working capital needs and within the constraints of the Amended Credit Agreement and the Indenture (Note 5). This program may be extended or otherwise modified by the Board of Directors at any time and will remain in effect until completed or until terminated by the Board of Directors. On June 16, 2022, the Company entered into an agreement with Magnus Holdings Co., Ltd. ("Magnus"), a wholly-owned subsidiary of Fila Holdings Corp., to purchase from Magnus an equal amount of its common stock as it purchases on the open market over the period of time from July 1, 2022 through January 13, 2023, up to an aggregate of $75.0 million, at the same weighted average per share price (the "2022 Agreement"). On August 30, 2022, the Company amended and restated the 2022 Agreement to increase the aggregate dollar amount of shares of its common stock that it would purchase from Magnus from $75.0 million to $100.0 million, (the "Amended and Restated 2022 Agreement"). In relation to this agreement, the Company recorded a share repurchase liability of $92.6 million for 2,000,839 shares of common stock, which was included in accrued expenses and other liabilities and treasury stock on the consolidated balance sheet as of December 31, 2022. Between January 1, 2023 and January 13, 2023, the Company purchased an additional 167,689 shares of its common stock on the open market for an aggregate of $7.4 million, bringing the cumulative total open market purchases since the inception of the 2022 Agreement to $100.0 million. As a result, on January 23, 2023, the Company purchased 2,168,528 shares of its common stock from Magnus for an aggregate of $100.0 million, in satisfaction of its obligation under the Amended and Restated 2022 Agreement. On June 9, 2023, the Company entered into an agreement with Magnus to purchase from Magnus an equal amount of its common stock as it purchases on the open market over the period of time from June 12, 2023 through October 27, 2023, up to an aggregate of $100.0 million, at the same weighted average per share price (the "2023 Agreement"). In relation to the 2023 Agreement, on November 3, 2023, the Company purchased 1,824,994 shares of its common stock from Magnus for an aggregate of $100.0 million in satisfaction of its obligation under the 2023 Agreement. On March 14, 2024, the Company entered into an agreement with Magnus to purchase from Magnus an equal amount of its common stock as it purchases on the open market over the period of time from April 1, 2024 through June 28, 2024, up to an aggregate of $37.5 million, at the same weighted average per share price (the "March 2024 Agreement"). In relation to this agreement, the Company recorded a share repurchase liability of $37.5 million for 587,520 shares of common stock, which was included in accrued expenses and other liabilities and treasury stock on the consolidated balance sheet as of June 30, 2024. On June 14, 2024, the Company entered into a new agreement with Magnus to purchase from Magnus an equal amount of its common stock as it purchases on the open market over the period of time from July 1, 2024 through December 31, 2024, up to an aggregate of $62.5 million, at the same weighted average per share price. The Company's share repurchase activity for the periods presented was as follows: Three months ended June 30, Six months ended June 30, (in thousands, except share and per share amounts) 2024 2023 2024 2023 Shares repurchased in the open market: Shares repurchased 587,520 482,500 1,134,753 828,889 Average price $ 63.83 $ 49.72 $ 64.16 $ 48.39 Aggregate value (1) $ 37,499 $ 23,990 $ 72,801 $ 40,112 Shares repurchased from Magnus: Shares repurchased — — — 2,168,528 Average price (2) $ — $ — $ — $ 46.11 Aggregate value $ — $ — $ — $ 100,001 Total shares repurchased: Shares repurchased 587,520 482,500 1,134,753 2,997,417 Average price $ 63.83 $ 49.72 $ 64.16 $ 46.74 Aggregate value $ 37,499 $ 23,990 $ 72,801 $ 140,113 ___________________________________ (1) Includes $0.6 million and $2.1 million related to shares repurchased not settled as of June 30, 2024 and 2023, respectively. (2) In accordance with the share repurchase agreements, shares purchased from Magnus are accrued for at the same weighted average price as those purchased on the open market, as if the purchase from Magnus had occurred on the same day. As such, the average price of Magnus repurchases during any given period will differ from open market repurchases due to the settlement of the previously recorded share repurchase liability, as well as open market purchases made after the completion of the Magnus share repurchase agreements. As of June 30, 2024, the Company had $302.2 million remaining under the current share repurchase authorization, including $100.0 million related to outstanding Magnus share repurchase agreements. On July 10, 2024, the Company purchased 587,520 shares of its common stock from Magnus for an aggregate of $37.5 million in satisfaction of its obligation under the March 2024 Agreement. Common Stock Retirement The Company records retirements of repurchased common stock, upon either formal or constructive retirement, at cost and allocates the excess of the repurchase price over the par value of shares acquired to both retained earnings and additional paid-in capital. The portion allocated to additional paid-in capital is calculated on a pro rata basis of the shares to be retired and the total shares issued and outstanding as of the date of retirement. When shares of common stock are retired, they are deducted from the number of shares issued. As of June 30, 2024, the Company presented as retired 1,134,753 shares of its repurchased common stock with an aggregate repurchase price of $72.8 million, which the company intends to formally retire in 2024. |
Equity Incentive Plans
Equity Incentive Plans | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Equity Incentive Plans Under the Acushnet Holdings Corp. 2015 Omnibus Incentive Plan (the “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, 2024, the only awards granted under the 2015 Plan were RSUs and PSUs. Restricted Stock and Performance Stock Units RSUs granted to members of the Board of Directors vest immediately into shares of common stock. RSUs granted to Company officers generally vest over three years, with one-third of each grant vesting annually, subject to the recipient's continued employment with the Company. RSUs granted to other employees, consultants and advisors of the Company vest in accordance with the terms of the grants, generally either over three years or, beginning in 2022, with one-third of each grant vesting annually, subject to the recipient’s continued service to the Company. PSUs granted to Company officers and other employees vest based upon the Company's performance against specified targets, generally over a three-year performance period, subject to the recipient's continued service to the Company. At the end of the performance period, the number of shares of common stock that could be issued is determined based upon the Company's performance against these targets. The number of shares that could be issued can range from 0% to 200% of the recipient's target award. Recipients of the awards granted under the 2015 Plan may elect to defer receipt of all or any portion of any shares of common stock issuable upon vesting to a future date elected by the recipient. All RSUs and PSUs granted under the 2015 Plan have DERs, which entitle holders of RSUs and PSUs to the same dividend value per share as holders of common stock and can be paid in either cash or common stock. DERs are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs and PSUs. DERs are paid when the underlying shares of common stock are delivered. A summary of the Company’s RSUs and PSUs as of June 30, 2024 and changes during the six months then ended is presented below: Weighted- Weighted- Number Average Number Average of RSUs Fair Value RSUs of PSUs (3) Fair Value PSUs Outstanding as of December 31, 2023 868,063 $ 46.45 480,254 $ 46.07 Granted 307,816 66.72 156,087 66.77 Vested (1)(2) (492,950) 46.51 (133,099) 45.36 Forfeited (17,092) 32.48 (2,275) 56.40 Outstanding as of June 30, 2024 665,837 $ 56.14 500,967 $ 52.66 _______________________________________________________________________________ (1) Includes 56,588 shares of common stock related to RSU's that were not delivered as of June 30, 2024. (2) Based upon the Company’s level of achievement of the applicable performance metrics, the recipients of the 133,099 PSUs that vested during the six months ended June 30, 2024, were entitled to receive 266,198 shares of common stock. As of June 30, 2024, there were 86,762 shares of common stock that had not been delivered in connection with the vesting of these PSUs. (3) Number of PSUs reflects 100% of the target level grant and may not be indicative of the performance level expected to be achieved. Compensation expense recorded related to RSUs and PSUs in the unaudited condensed consolidated statements of operations was as follows: Three months ended Six months ended June 30, June 30, (in thousands) 2024 2023 2024 2023 RSUs $ 5,632 $ 4,800 $ 10,128 $ 8,954 PSUs 1,747 3,817 4,511 6,782 The remaining unrecognized compensation expense related to unvested RSUs and unvested PSUs was $29.9 million and $16.5 million, respectively, as of June 30, 2024, and is expected to be recognized over the related weighted average period of 1.5 years and 2.0 years, respectively. A summary of shares of common stock issued related to the 2015 Plan, including the impact of any DERs issued in common stock, is presented below: Six months ended Six months ended June 30, 2024 June 30, 2023 RSUs PSUs RSUs PSUs Shares of common stock issued 465,992 219,831 448,897 231,580 Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations (155,596) (95,814) (128,291) (91,842) Net shares of common stock issued 310,396 124,017 320,606 139,738 Cumulative undelivered shares of common stock 491,381 471,078 479,991 420,447 Compensation Expense The allocation of share-based compensation expense in the unaudited condensed consolidated statements of operations was as follows: Three months ended Six months ended June 30, June 30, (in thousands) 2024 2023 2024 2023 Cost of goods sold $ 400 $ 382 $ 803 $ 755 Selling, general and administrative 6,728 8,023 13,317 14,246 Research and development 415 376 847 1,063 Total compensation expense before income tax 7,543 8,781 14,967 16,064 Income tax benefit 1,737 1,867 3,409 3,359 Total compensation expense, net of income tax $ 5,806 $ 6,914 $ 11,558 $ 12,705 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, Net of Tax | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss, Net of Tax | Accumulated Other Comprehensive Loss, Net of Tax Accumulated other comprehensive loss, net of tax consists of foreign currency translation adjustments, unrealized gains and losses from derivative instruments designated as cash flow hedges (Note 6) and pension and other postretirement adjustments (Note 8). The components of and adjustments to accumulated other comprehensive loss, net of tax, were as follows: Foreign Interest Accumulated Foreign Exchange Rate Swap Pension and Other Currency Derivative Derivative Other Comprehensive (in thousands) Translation Instruments Instruments Postretirement Loss, Net of Tax Balance as of December 31, 2023 $ (95,425) $ 3,929 $ 227 $ (13,080) $ (104,349) Other comprehensive (loss) income before reclassifications (18,794) 5,337 769 160 (12,528) Amounts reclassified from accumulated other comprehensive loss, net of tax — (5,403) (517) (413) (6,333) Tax benefit (expense) — 172 (61) 61 172 Balance as of June 30, 2024 $ (114,219) $ 4,035 $ 418 $ (13,272) $ (123,038) |
Net Income per Common Share
Net Income per Common Share | 6 Months Ended |
Jun. 30, 2024 | |
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) 2024 2023 2024 2023 Net income attributable to Acushnet Holdings Corp. $ 71,428 $ 74,655 $ 159,190 $ 167,930 Weighted average number of common shares: Basic 63,935,451 68,341,608 64,278,286 68,277,693 RSUs 175,808 202,311 221,930 271,206 PSUs 49,429 105,125 24,715 99,084 Diluted 64,160,688 68,649,044 64,524,931 68,647,983 Net income per common share attributable to Acushnet Holdings Corp.: Basic $ 1.12 $ 1.09 $ 2.48 $ 2.46 Diluted $ 1.11 $ 1.09 $ 2.47 $ 2.45 Net income per common share attributable to Acushnet Holdings Corp. was calculated using the treasury stock method. The Company’s potential dilutive securities for the three and six months ended June 30, 2024 and 2023 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. During 2024 and 2023, the minimum performance target was achieved relating to certain PSUs and as a result, these PSUs have been included in diluted shares outstanding for the three and six months ended June 30, 2024 and 2023. 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, 2024 2023 2024 2023 RSUs 211,442 — 217,579 129,748 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
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. Segment operating income includes directly attributable expenses and certain shared costs of corporate administration that are allocated to the reportable segments, but excludes certain other costs, such as interest expense, net; restructuring costs; the non-service cost component of net periodic benefit cost; transaction fees; as well as certain other non-operating gains and losses that the Company does not allocate 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, 2024 and 2023 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) 2024 2023 2024 2023 Net sales Titleist golf balls $ 247,470 $ 237,567 $ 455,457 $ 429,568 Titleist golf clubs 177,518 188,020 381,404 368,801 Titleist golf gear 68,915 69,871 137,087 136,914 FootJoy golf wear 157,209 158,231 349,616 363,505 Other 32,755 35,674 67,857 76,865 Total net sales $ 683,867 $ 689,363 $ 1,391,421 $ 1,375,653 Segment operating income Titleist golf balls $ 61,017 $ 49,200 $ 103,184 $ 87,821 Titleist golf clubs 25,144 41,401 74,740 81,946 Titleist golf gear 13,911 13,679 24,024 25,869 FootJoy golf wear 7,873 3,595 34,312 34,396 Other 2,368 4,349 6,544 10,913 Total segment operating income 110,313 112,224 242,804 240,945 Reconciling items: Interest expense, net (14,104) (10,949) (27,180) (20,845) Restructuring costs (Note 16) — — (6,967) — Non-service cost component of net periodic benefit cost (787) (672) (1,563) (1,657) Other (4,046) (5,490) (7,752) (8,986) Total income before income tax $ 91,376 $ 95,113 $ 199,342 $ 209,457 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) 2024 2023 2024 2023 United States $ 408,527 $ 401,372 $ 826,770 $ 771,303 EMEA (1) 86,675 86,099 188,354 190,859 Japan 29,843 32,773 66,993 79,148 Korea 83,825 86,631 159,076 175,615 Rest of World 74,997 82,488 150,228 158,728 Total net sales $ 683,867 $ 689,363 $ 1,391,421 $ 1,375,653 _______________________________________________________________________________ (1) Europe, the Middle East and Africa ("EMEA") |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations During the normal course of its business, the Company enters into agreements to purchase goods and services, including purchase commitments for advertising (including media placement and production costs), finished goods inventory, capital expenditures and endorsement arrangements with professional golfers. The Company's purchase obligations as of June 30, 2024 were as follows: Payments Due by Period Remainder of (in thousands) 2024 2025 2026 2027 2028 Thereafter Purchase obligations (1) $ 260,375 $ 32,918 $ 5,289 $ 2,472 $ 2,414 $ 7,239 _______________________________________________________________________________ (1) The reported amounts exclude those liabilities included in accounts payable or accrued liabilities on the unaudited condensed consolidated balance sheet as of June 30, 2024. Litigation |
Restructuring Costs
Restructuring Costs | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs During the first quarter of 2024, Lionscore approved a plan to permanently close certain production lines at the VIE's Fujian Fuh Deh Leh (“FDL”) factory as footwear production volume is shifted to a third party supplier. As a result of the closure, FDL plans to involuntarily separate certain direct and indirect manufacturing employees during 2024 (the "Plan"). After the restructuring, the remaining direct and indirect manufacturing employees at FDL will continue to service the remaining production lines. In relation to the Plan, during the six months ended June 30, 2024, the Company recorded involuntary employee termination costs of $7.0 million included in selling, general and administrative expenses on the unaudited condensed consolidated statement of operations. Accrued restructuring costs associated with the Plan are included within accrued expenses and other liabilities on the unaudited condensed consolidated balance sheet as they are expected to be paid out within a year. There are no further material costs expected to be incurred in relation to the Plan. However, Lionscore could implement additional restructuring programs in the future. See Note 1 and Note 14 for further information. The activity related to the Plan was as follows: (in thousands) Three months ended June 30, 2024 Six months ended June 30, 2024 Balance at beginning of period $ 2,247 $ — Provision — 6,967 Payments (234) (4,954) Balance at end of period $ 2,013 $ 2,013 |
Other Business Developments
Other Business Developments | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Other Business Developments | Other Business Developments In January 2023, the Company acquired certain trademarks from West Coast Trends, Inc., an industry leader specializing in Club Glove premium performance golf travel products, for $25.2 million including cash consideration of $22.2 million and contingent consideration of $3.0 million, which was subsequently paid in 2023. The trademarks acquired were included in the Company's Titleist golf gear reporting segment and will be amortized over a weighted average life of 10 years. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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. |
Use of Estimates | Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Variable Interest Entities | Variable Interest Entities VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities independently, or (ii) have equity holders that do not have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the entity’s expected losses, or the right to receive the entity’s expected residual returns. The Company consolidates a VIE when it is the primary beneficiary, which is the party that has both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) through its interests in the VIE, the obligation to absorb expected losses or the right to receive expected benefits from the VIE that could potentially be significant to the VIE. The Company consolidates the accounts of Acushnet Lionscore Limited (“Lionscore”), a VIE which is 40% owned by the Company. The sole purpose of the VIE is to manufacture the Company’s golf footwear and as such, the Company is deemed to be the primary beneficiary. The Company has presented separately on its unaudited condensed consolidated balance sheets, to the extent material, the assets of its consolidated VIE that can only be used to settle specific obligations of its consolidated VIE and the liabilities of its consolidated VIE for which creditors do not have recourse to its general credit. The general creditors of the VIE do not have recourse to the Company. Certain directors of the VIE have guaranteed the credit lines of the VIE, for which there were no outstanding borrowings as of June 30, 2024 and December 31, 2023. In addition, pursuant to the terms of the agreement governing the VIE, the Company is not required to provide financial support to the VIE. |
Noncontrolling Interests and Redeemable Noncontrolling Interests | Noncontrolling Interests and Redeemable Noncontrolling Interests The ownership interests held by owners other than the Company in less than wholly-owned subsidiaries are classified as noncontrolling interests. The financial results and position of noncontrolling interests are included in the Company’s unaudited condensed consolidated financial statements. The value attributable to the noncontrolling interests is presented on the unaudited condensed consolidated balance sheets, separately from the equity attributable to the Company. Net income (loss) and comprehensive income (loss) attributable to noncontrolling interests are presented separately on the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of comprehensive income, respectively. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash |
Foreign Currency Transactions | Foreign Currency Transactions Foreign currency transaction losses included in selling, general and administrative expenses were $0.9 million and $1.2 million for the three months ended June 30, 2024 and 2023, respectively. Foreign currency transaction losses included in selling, general and administrative expenses were $1.0 million and $2.5 million for the six months ended June 30, 2024 and 2023, respectively. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures." The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740) - Improvements to Income Tax Disclosures." |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Activity Related to the Allowance for Doubtful Accounts | The activity related to the allowance for doubtful accounts was as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Balance at beginning of period $ 8,863 $ 8,508 $ 8,840 $ 8,258 Bad debt expense 339 543 651 797 Amount of receivables written off (49) (50) (245) (102) Foreign currency translation (30) 7 (123) 55 Balance at end of period $ 9,123 $ 9,008 $ 9,123 $ 9,008 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The components of inventories were as follows: June 30, December 31, (in thousands) 2024 2023 Raw materials and supplies $ 142,481 $ 157,455 Work-in-process 27,368 24,949 Finished goods 312,756 433,131 Inventories $ 482,605 $ 615,535 |
Product Warranty (Tables)
Product Warranty (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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) 2024 2023 2024 2023 Balance at beginning of period $ 5,182 $ 4,386 $ 4,997 $ 3,951 Provision 2,261 2,070 3,798 3,745 Claims paid/costs incurred (1,901) (1,423) (3,197) (2,652) Foreign currency translation (31) 16 (87) 5 Balance at end of period $ 5,511 $ 5,049 $ 5,511 $ 5,049 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 2024 2023 Prepaid and other assets Foreign exchange forward $ 4,578 $ 4,378 Interest rate swap 553 452 Accrued expenses and other liabilities Foreign exchange forward 1,093 1,931 Interest rate swap — 63 Other noncurrent liabilities Interest rate swap — 88 |
Schedule of Effect of Hedge Instruments on Accumulated Other Comprehensive Loss, Net of Tax | The hedge instrument gains recognized in accumulated other comprehensive loss, net of tax was as follows: Three months ended Six months ended June 30, June 30, (in thousands) 2024 2023 2024 2023 Type of hedge Foreign exchange forward $ 1,995 $ 3,538 $ 5,337 $ 3,061 Interest rate swap 190 1,525 769 1,169 Total $ 2,185 $ 5,063 $ 6,106 $ 4,230 |
Schedule of Effect of Hedge Instrument in the Unaudited Condensed Consolidated Statement of Operations | The hedge instrument gains recognized on the unaudited condensed consolidated statements of operations were as follows: Three months ended Six months ended June 30, June 30, (in thousands) 2024 2023 2024 2023 Location of gains in statements of operations Foreign exchange forward: Cost of goods sold $ 2,665 $ 1,097 $ 5,403 $ 6,293 Selling, general and administrative (1) 658 147 1,381 357 Total $ 3,323 $ 1,244 $ 6,784 $ 6,650 Interest Rate Swap: Interest expense, net $ 257 $ 173 $ 517 $ 188 Total $ 257 $ 173 $ 517 $ 188 _______________________________________________________________________________ (1) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 were as follows: Fair Value Measurements as of June 30, 2024 using: (in thousands) Level 1 Level 2 Level 3 Balance Sheet Location Assets Rabbi trust $ 4,663 $ — $ — Prepaid and other assets Foreign exchange derivative instruments — 4,578 — Prepaid and other assets Interest rate derivative instruments — 553 — Prepaid and other assets Deferred compensation program assets 803 — — Other assets Total assets $ 5,466 $ 5,131 $ — Liabilities Foreign exchange derivative instruments $ — $ 1,093 $ — Accrued expenses and other liabilities Deferred compensation program liabilities 803 — — Other noncurrent liabilities Total liabilities $ 803 $ 1,093 $ — Assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 were as follows: Fair Value Measurements as of December 31, 2023 using: (in thousands) Level 1 Level 2 Level 3 Balance Sheet Location Assets Rabbi trust $ 4,334 $ — $ — Prepaid and other assets Foreign exchange derivative instruments — 4,378 — Prepaid and other assets Interest rate derivative instruments — 452 — Prepaid and other assets Deferred compensation program assets 725 — — Other assets Total assets $ 5,059 $ 4,830 $ — Liabilities Foreign exchange derivative instruments $ — $ 1,931 $ — Accrued expenses and other liabilities Interest rate derivative instruments — 63 — Accrued expenses and other liabilities Deferred compensation program liabilities 725 — — Other noncurrent liabilities Interest rate derivative instruments — 88 — Other noncurrent liabilities Total liabilities $ 725 $ 2,082 $ — |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost (Credit) | Components of net periodic benefit cost (credit) were as follows: Pension Benefits Postretirement Benefits Three months ended June 30, (in thousands) 2024 2023 2024 2023 Components of net periodic benefit cost (credit) Service cost $ 1,306 $ 1,416 $ 75 $ 96 Interest cost 2,685 2,716 127 159 Expected return on plan assets (1,834) (1,966) — — Settlements — (27) — — Amortization of net loss (gain) 59 24 (239) (246) Amortization of prior service cost (credit) 23 46 (34) (34) Net periodic benefit cost (credit) $ 2,239 $ 2,209 $ (71) $ (25) Pension Benefits Postretirement Benefits Six months ended June 30, (in thousands) 2024 2023 2024 2023 Components of net periodic benefit cost (credit) Service cost $ 2,631 $ 2,850 $ 166 $ 215 Interest cost 5,388 5,659 260 331 Expected return on plan assets (3,672) (3,928) — — Settlements — (27) — — Amortization of net loss (gain) 117 45 (508) (447) Amortization of prior service cost (credit) 46 92 (68) (68) Net periodic benefit cost (credit) $ 4,510 $ 4,691 $ (150) $ 31 |
Common Stock (Tables)
Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Declared Dividends Per Share | The Company declared dividends per common share, including DERs (Note 11), during the periods presented as follows: Dividends per Common Share Amount (in thousands) 2024: Second Quarter $ 0.215 $ 13,873 First Quarter 0.215 14,155 Total dividends declared in 2024 $ 0.430 $ 28,028 2023: Fourth Quarter $ 0.195 $ 12,941 Third Quarter 0.195 13,098 Second Quarter 0.195 13,667 First Quarter 0.195 13,629 Total dividends declared in 2023 $ 0.780 $ 53,335 |
Schedule of Share Repurchase Activity | The Company's share repurchase activity for the periods presented was as follows: Three months ended June 30, Six months ended June 30, (in thousands, except share and per share amounts) 2024 2023 2024 2023 Shares repurchased in the open market: Shares repurchased 587,520 482,500 1,134,753 828,889 Average price $ 63.83 $ 49.72 $ 64.16 $ 48.39 Aggregate value (1) $ 37,499 $ 23,990 $ 72,801 $ 40,112 Shares repurchased from Magnus: Shares repurchased — — — 2,168,528 Average price (2) $ — $ — $ — $ 46.11 Aggregate value $ — $ — $ — $ 100,001 Total shares repurchased: Shares repurchased 587,520 482,500 1,134,753 2,997,417 Average price $ 63.83 $ 49.72 $ 64.16 $ 46.74 Aggregate value $ 37,499 $ 23,990 $ 72,801 $ 140,113 ___________________________________ (1) Includes $0.6 million and $2.1 million related to shares repurchased not settled as of June 30, 2024 and 2023, respectively. (2) In accordance with the share repurchase agreements, shares purchased from Magnus are accrued for at the same weighted average price as those purchased on the open market, as if the purchase from Magnus had occurred on the same day. As such, the average price of Magnus repurchases during any given period will differ from open market repurchases due to the settlement of the previously recorded share repurchase liability, as well as open market purchases made after the completion of the Magnus share repurchase agreements. |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted and Performance Stock Units | A summary of the Company’s RSUs and PSUs as of June 30, 2024 and changes during the six months then ended is presented below: Weighted- Weighted- Number Average Number Average of RSUs Fair Value RSUs of PSUs (3) Fair Value PSUs Outstanding as of December 31, 2023 868,063 $ 46.45 480,254 $ 46.07 Granted 307,816 66.72 156,087 66.77 Vested (1)(2) (492,950) 46.51 (133,099) 45.36 Forfeited (17,092) 32.48 (2,275) 56.40 Outstanding as of June 30, 2024 665,837 $ 56.14 500,967 $ 52.66 _______________________________________________________________________________ (1) Includes 56,588 shares of common stock related to RSU's that were not delivered as of June 30, 2024. (2) Based upon the Company’s level of achievement of the applicable performance metrics, the recipients of the 133,099 PSUs that vested during the six months ended June 30, 2024, were entitled to receive 266,198 shares of common stock. As of June 30, 2024, there were 86,762 shares of common stock that had not been delivered in connection with the vesting of these PSUs. (3) Number of PSUs reflects 100% of the target level grant and may not be indicative of the performance level expected to be achieved. |
Schedule of Shares of Common Stock Issued | Compensation expense recorded related to RSUs and PSUs in the unaudited condensed consolidated statements of operations was as follows: Three months ended Six months ended June 30, June 30, (in thousands) 2024 2023 2024 2023 RSUs $ 5,632 $ 4,800 $ 10,128 $ 8,954 PSUs 1,747 3,817 4,511 6,782 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, 2024 June 30, 2023 RSUs PSUs RSUs PSUs Shares of common stock issued 465,992 219,831 448,897 231,580 Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations (155,596) (95,814) (128,291) (91,842) Net shares of common stock issued 310,396 124,017 320,606 139,738 Cumulative undelivered shares of common stock 491,381 471,078 479,991 420,447 |
Schedule of Compensation Expense Related to Equity Incentive Plans | The allocation of share-based compensation expense in the unaudited condensed consolidated statements of operations was as follows: Three months ended Six months ended June 30, June 30, (in thousands) 2024 2023 2024 2023 Cost of goods sold $ 400 $ 382 $ 803 $ 755 Selling, general and administrative 6,728 8,023 13,317 14,246 Research and development 415 376 847 1,063 Total compensation expense before income tax 7,543 8,781 14,967 16,064 Income tax benefit 1,737 1,867 3,409 3,359 Total compensation expense, net of income tax $ 5,806 $ 6,914 $ 11,558 $ 12,705 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss, Net of Tax (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Changes in Each Component of Accumulated Comprehensive Loss, Net of Tax Effects | The components of and adjustments to accumulated other comprehensive loss, net of tax, were as follows: Foreign Interest Accumulated Foreign Exchange Rate Swap Pension and Other Currency Derivative Derivative Other Comprehensive (in thousands) Translation Instruments Instruments Postretirement Loss, Net of Tax Balance as of December 31, 2023 $ (95,425) $ 3,929 $ 227 $ (13,080) $ (104,349) Other comprehensive (loss) income before reclassifications (18,794) 5,337 769 160 (12,528) Amounts reclassified from accumulated other comprehensive loss, net of tax — (5,403) (517) (413) (6,333) Tax benefit (expense) — 172 (61) 61 172 Balance as of June 30, 2024 $ (114,219) $ 4,035 $ 418 $ (13,272) $ (123,038) |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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) 2024 2023 2024 2023 Net income attributable to Acushnet Holdings Corp. $ 71,428 $ 74,655 $ 159,190 $ 167,930 Weighted average number of common shares: Basic 63,935,451 68,341,608 64,278,286 68,277,693 RSUs 175,808 202,311 221,930 271,206 PSUs 49,429 105,125 24,715 99,084 Diluted 64,160,688 68,649,044 64,524,931 68,647,983 Net income per common share attributable to Acushnet Holdings Corp.: Basic $ 1.12 $ 1.09 $ 2.48 $ 2.46 Diluted $ 1.11 $ 1.09 $ 2.47 $ 2.45 |
Schedule of Securities Excluded From the Calculation of Diluted Weighted Average Common Shares | The following securities have been excluded from the calculation of diluted weighted-average common shares outstanding as their impact was determined to be anti-dilutive: Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 RSUs 211,442 — 217,579 129,748 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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) 2024 2023 2024 2023 Net sales Titleist golf balls $ 247,470 $ 237,567 $ 455,457 $ 429,568 Titleist golf clubs 177,518 188,020 381,404 368,801 Titleist golf gear 68,915 69,871 137,087 136,914 FootJoy golf wear 157,209 158,231 349,616 363,505 Other 32,755 35,674 67,857 76,865 Total net sales $ 683,867 $ 689,363 $ 1,391,421 $ 1,375,653 Segment operating income Titleist golf balls $ 61,017 $ 49,200 $ 103,184 $ 87,821 Titleist golf clubs 25,144 41,401 74,740 81,946 Titleist golf gear 13,911 13,679 24,024 25,869 FootJoy golf wear 7,873 3,595 34,312 34,396 Other 2,368 4,349 6,544 10,913 Total segment operating income 110,313 112,224 242,804 240,945 Reconciling items: Interest expense, net (14,104) (10,949) (27,180) (20,845) Restructuring costs (Note 16) — — (6,967) — Non-service cost component of net periodic benefit cost (787) (672) (1,563) (1,657) Other (4,046) (5,490) (7,752) (8,986) Total income before income tax $ 91,376 $ 95,113 $ 199,342 $ 209,457 |
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) 2024 2023 2024 2023 United States $ 408,527 $ 401,372 $ 826,770 $ 771,303 EMEA (1) 86,675 86,099 188,354 190,859 Japan 29,843 32,773 66,993 79,148 Korea 83,825 86,631 159,076 175,615 Rest of World 74,997 82,488 150,228 158,728 Total net sales $ 683,867 $ 689,363 $ 1,391,421 $ 1,375,653 _______________________________________________________________________________ (1) Europe, the Middle East and Africa ("EMEA") |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Purchase Obligations | The Company's purchase obligations as of June 30, 2024 were as follows: Payments Due by Period Remainder of (in thousands) 2024 2025 2026 2027 2028 Thereafter Purchase obligations (1) $ 260,375 $ 32,918 $ 5,289 $ 2,472 $ 2,414 $ 7,239 _______________________________________________________________________________ (1) The reported amounts exclude those liabilities included in accounts payable or accrued liabilities on the unaudited condensed consolidated balance sheet as of June 30, 2024. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Company's Restructuring Programs | The activity related to the Plan was as follows: (in thousands) Three months ended June 30, 2024 Six months ended June 30, 2024 Balance at beginning of period $ 2,247 $ — Provision — 6,967 Payments (234) (4,954) Balance at end of period $ 2,013 $ 2,013 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Variable Interest Entity [Line Items] | |||||
Redemption value adjustment | $ 1,000,000 | $ 1,000,000 | |||
Loan to minority shareholders included in temporary equity | 4,400,000 | 4,400,000 | $ 4,400,000 | ||
Restricted cash | 1,600,000 | 1,600,000 | 1,700,000 | ||
Retained Earnings | |||||
Variable Interest Entity [Line Items] | |||||
Redemption value adjustment | 1,000,000 | 1,000,000 | |||
Selling, general and administrative | |||||
Variable Interest Entity [Line Items] | |||||
Transaction losses included in selling, general and administrative expense | 900,000 | $ 1,200,000 | $ 1,000,000 | $ 2,500,000 | |
VIE | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 40% | ||||
Outstanding borrowings | $ 0 | $ 0 | $ 0 |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 8,863 | $ 8,508 | $ 8,840 | $ 8,258 |
Bad debt expense | 339 | 543 | 651 | 797 |
Amount of receivables written off | (49) | (50) | (245) | (102) |
Foreign currency translation | (30) | 7 | (123) | 55 |
Balance at end of period | $ 9,123 | $ 9,008 | $ 9,123 | $ 9,008 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 142,481 | $ 157,455 |
Work-in-process | 27,368 | 24,949 |
Finished goods | 312,756 | 433,131 |
Inventories | $ 482,605 | $ 615,535 |
Product Warranty (Details)
Product Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Activity for accrued warranty expense | ||||
Balance at beginning of period | $ 5,182 | $ 4,386 | $ 4,997 | $ 3,951 |
Provision | 2,261 | 2,070 | 3,798 | 3,745 |
Claims paid/costs incurred | (1,901) | (1,423) | (3,197) | (2,652) |
Foreign currency translation | (31) | 16 | (87) | 5 |
Balance at end of period | $ 5,511 | $ 5,049 | $ 5,511 | $ 5,049 |
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 ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 28, 2024 | Oct. 03, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | Aug. 02, 2022 | |
Unsecured Local Credit Facilities | |||||
Line of Credit Facility [Line Items] | |||||
Weighted average interest rate (as percent) | 0.34% | 0.45% | |||
Available borrowings | $ 34,600,000 | ||||
Other short-term borrowings, outstanding borrowings | 23,100,000 | $ 29,000,000 | |||
Senior Unsecured Notes due 2028 | Unsecured Local Credit Facilities | |||||
Line of Credit Facility [Line Items] | |||||
Amount outstanding | $ 350,000,000 | ||||
Debt instrument interest rate stated percentage | 7.375% | ||||
Incurred fees and expenses | $ 6,400,000 | ||||
Debt issuance costs | $ 6,300,000 | ||||
Effective interest rate | 7.813% | ||||
Accrued interest | 5,600,000 | 6,500,000 | |||
Senior Unsecured Notes due 2028 | Unsecured Local Credit Facilities | Level 2 | |||||
Line of Credit Facility [Line Items] | |||||
Fair value of notes | 362,700,000 | 365,100,000 | |||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 950,000,000 | ||||
Outstanding borrowings | $ 379,700,000 | $ 325,200,000 | |||
Weighted average interest rate (as percent) | 6.49% | 6.57% | |||
Available borrowings | $ 565,800,000 | ||||
Letters of credit outstanding | 4,500,000 | ||||
Revolving Credit Facility | Unsecured Local Credit Facilities | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding borrowings | $ 345,600,000 | ||||
Line of Credit | Minimum | Canadian Overnight Repo Rate Average | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate of interest | 0.29547% | ||||
Line of Credit | Minimum | Adjusted Term Canadian Overnight Repo Rate Average | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate of interest | 1% | ||||
Line of Credit | Maximum | Canadian Overnight Repo Rate Average | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate of interest | 0.32138% | ||||
Line of Credit | Maximum | Adjusted Term Canadian Overnight Repo Rate Average | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate of interest | 1.75% | ||||
Letters of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 57,900,000 | ||||
Outstanding borrowings | 7,400,000 | $ 11,300,000 | |||
Line of credit secured | $ 4,500,000 | $ 8,100,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Foreign exchange forward | ||
Derivatives, Fair Value [Line Items] | ||
Expected reclassification of net gain (loss) recorded in accumulated other comprehensive gain (loss), net of tax into cost of goods sold during next twelve months | $ 6.4 | |
Foreign exchange forward | Derivative Designated As Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 209.7 | $ 209.6 |
Foreign exchange forward | Maximum | ||
Derivatives, Fair Value [Line Items] | ||
Term of derivative contract (in months) | 24 months | |
Interest rate swap | ||
Derivatives, Fair Value [Line Items] | ||
Expected reclassification of net gain (loss) recorded in accumulated other comprehensive gain (loss), net of tax into cost of goods sold during next twelve months | $ 0.6 | |
Interest rate swap | Derivative Designated As Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 100 | $ 100 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Fair Values of Hedge Instruments on the Unaudited Condensed Consolidated Balance Sheets (Details) - Derivative Designated As Hedging - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Foreign exchange forward | Prepaid and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 4,578 | $ 4,378 |
Foreign exchange forward | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 1,093 | 1,931 |
Interest rate swap | Prepaid and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 553 | 452 |
Interest rate swap | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 0 | 63 |
Interest rate swap | Other noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 0 | $ 88 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Effect of Hedge Instruments on Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total | $ 2,185 | $ 5,063 | $ 6,106 | $ 4,230 |
Cash Flow Hedge | Derivative Designated As Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total | 2,185 | 5,063 | 6,106 | 4,230 |
Foreign exchange forward | Cash Flow Hedge | Derivative Designated As Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total | 1,995 | 3,538 | 5,337 | 3,061 |
Interest rate swap | Cash Flow Hedge | Derivative Designated As Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total | $ 190 | $ 1,525 | $ 769 | $ 1,169 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of Effect of Hedge Instrument in the Unaudited Condensed Consolidated Statement of Operations (Details) - Derivative Designated As Hedging - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Foreign exchange forward | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain recognized on unaudited condensed consolidated statements of operations | $ 3,323 | $ 1,244 | $ 6,784 | $ 6,650 |
Foreign exchange forward | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of goods sold | Cost of goods sold | Cost of goods sold | Cost of goods sold |
Gain recognized on unaudited condensed consolidated statements of operations | $ 2,665 | $ 1,097 | $ 5,403 | $ 6,293 |
Foreign exchange forward | Selling, general and administrative | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative | Selling, general and administrative | Selling, general and administrative | Selling, general and administrative |
Gain recognized on unaudited condensed consolidated statements of operations | $ 658 | $ 147 | $ 1,381 | $ 357 |
Interest rate swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense, net | Interest expense, net | Interest expense, net | Interest expense, net |
Gain recognized on unaudited condensed consolidated statements of operations | $ 257 | $ 173 | $ 517 | $ 188 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Level 1 | ||
Assets | ||
Rabbi trust | $ 4,663 | $ 4,334 |
Deferred compensation program assets | 803 | 725 |
Total assets | 5,466 | 5,059 |
Liabilities | ||
Deferred compensation program liabilities | 803 | 725 |
Total liabilities | 803 | 725 |
Level 1 | Foreign exchange derivative instruments | ||
Assets | ||
Foreign exchange derivative instruments | 0 | 0 |
Liabilities | ||
Derivative instruments, current | 0 | 0 |
Level 1 | Interest rate derivative instruments | ||
Assets | ||
Interest rate derivative instruments | 0 | 0 |
Liabilities | ||
Derivative instruments, current | 0 | |
Derivative instruments, noncurrent | 0 | |
Level 2 | ||
Assets | ||
Rabbi trust | 0 | 0 |
Deferred compensation program assets | 0 | 0 |
Total assets | 5,131 | 4,830 |
Liabilities | ||
Deferred compensation program liabilities | 0 | 0 |
Total liabilities | 1,093 | 2,082 |
Level 2 | Foreign exchange derivative instruments | ||
Assets | ||
Foreign exchange derivative instruments | 4,578 | 4,378 |
Liabilities | ||
Derivative instruments, current | 1,093 | 1,931 |
Level 2 | Interest rate derivative instruments | ||
Assets | ||
Interest rate derivative instruments | 553 | 452 |
Liabilities | ||
Derivative instruments, current | 63 | |
Derivative instruments, noncurrent | 88 | |
Level 3 | ||
Assets | ||
Rabbi trust | 0 | 0 |
Deferred compensation program assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Deferred compensation program liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | Foreign exchange derivative instruments | ||
Assets | ||
Foreign exchange derivative instruments | 0 | 0 |
Liabilities | ||
Derivative instruments, current | 0 | 0 |
Level 3 | Interest rate derivative instruments | ||
Assets | ||
Interest rate derivative instruments | $ 0 | 0 |
Liabilities | ||
Derivative instruments, current | 0 | |
Derivative instruments, noncurrent | $ 0 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pension Benefits | ||||
Components of net periodic benefit cost (credit) | ||||
Service cost | $ 1,306 | $ 1,416 | $ 2,631 | $ 2,850 |
Interest cost | 2,685 | 2,716 | 5,388 | 5,659 |
Expected return on plan assets | (1,834) | (1,966) | (3,672) | (3,928) |
Settlements | 0 | (27) | 0 | (27) |
Amortization of net loss (gain) | 59 | 24 | 117 | 45 |
Amortization of prior service cost (credit) | 23 | 46 | 46 | 92 |
Net periodic benefit cost (credit) | 2,239 | 2,209 | 4,510 | 4,691 |
Postretirement Benefits | ||||
Components of net periodic benefit cost (credit) | ||||
Service cost | 75 | 96 | 166 | 215 |
Interest cost | 127 | 159 | 260 | 331 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Amortization of net loss (gain) | (239) | (246) | (508) | (447) |
Amortization of prior service cost (credit) | (34) | (34) | (68) | (68) |
Net periodic benefit cost (credit) | $ (71) | $ (25) | $ (150) | $ 31 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Increase in income tax expense | $ 500 | $ 3,100 | ||
Income tax expense | $ 21,212 | $ 20,749 | $ 44,619 | $ 41,474 |
Effective tax rate (as percent) | 23.20% | 21.80% | 22.40% | 19.80% |
Common Stock - Schedule of Decl
Common Stock - Schedule of Declared Dividends Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Equity [Abstract] | |||||||||
Dividends per Common Share (in dollars per share) | $ 0.215 | $ 0.215 | $ 0.195 | $ 0.195 | $ 0.195 | $ 0.195 | $ 0.430 | $ 0.780 | |
Amount | $ 13,873 | $ 14,155 | $ 12,941 | $ 13,098 | $ 13,667 | $ 13,629 | $ 28,028 | $ 27,296 | $ 53,335 |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||||||||
Jul. 10, 2024 | Nov. 03, 2023 | Jan. 23, 2023 | Jan. 13, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Aug. 06, 2024 | Jun. 14, 2024 | Mar. 14, 2024 | Jun. 09, 2023 | Dec. 31, 2022 | Aug. 30, 2022 | Jun. 16, 2022 | |
Dividends Payable [Line Items] | |||||||||||||||
Issued and outstanding common stock authorized to repurchase | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||||||
Shares repurchased (in shares) | 587,520 | 482,500 | 1,134,753 | 2,997,417 | |||||||||||
Aggregate value | $ 37,499,000 | $ 23,990,000 | $ 72,801,000 | $ 140,113,000 | |||||||||||
Satisfaction of obligation under agreement | 302,200,000 | 302,200,000 | |||||||||||||
Magnus | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Issued and outstanding common stock authorized to repurchase | $ 100,000,000 | $ 75,000,000 | |||||||||||||
Share repurchase liability | $ 37,500,000 | $ 37,500,000 | $ 92,600,000 | ||||||||||||
Accrued share repurchase (in shares) | 587,520 | 587,520 | 2,000,839 | ||||||||||||
Shares repurchased (in shares) | 1,824,994 | 2,168,528 | 0 | 0 | 0 | 2,168,528 | |||||||||
Aggregate value | $ 100,000,000 | $ 100,000,000 | $ 0 | $ 0 | $ 0 | $ 100,001,000 | |||||||||
Stock repurchase program, authorized amount | $ 100,000,000 | $ 100,000,000 | $ 62,500,000 | $ 37,500,000 | $ 100,000,000 | ||||||||||
Open Market | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Shares repurchased (in shares) | 167,689 | 587,520 | 482,500 | 1,134,753 | 828,889 | ||||||||||
Aggregate value | $ 7,400,000 | $ 37,499,000 | $ 23,990,000 | $ 72,801,000 | $ 40,112,000 | ||||||||||
Aggregate purchases of shares in open market before shares will be purchased from Magnus | $ 100,000,000 | 100,000,000 | |||||||||||||
Open Market | Common Stock | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Aggregate value | $ 72,800,000 | ||||||||||||||
Common stock presented and retired (in shares) | 1,134,753 | ||||||||||||||
Subsequent Event | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Dividends declared and payable (in dollars per share) | $ 0.215 | ||||||||||||||
Subsequent Event | Magnus | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Shares repurchased (in shares) | 587,520 | ||||||||||||||
Aggregate value | $ 37,500,000 |
Common Stock - Schedule of Shar
Common Stock - Schedule of Share Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Nov. 03, 2023 | Jan. 23, 2023 | Jan. 13, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Dividends Payable [Line Items] | |||||||
Shares repurchased (in shares) | 587,520 | 482,500 | 1,134,753 | 2,997,417 | |||
Average price (in dollars per share) | $ 63.83 | $ 49.72 | $ 64.16 | $ 46.74 | |||
Aggregate value | $ 37,499 | $ 23,990 | $ 72,801 | $ 140,113 | |||
Open Market | |||||||
Dividends Payable [Line Items] | |||||||
Shares repurchased (in shares) | 167,689 | 587,520 | 482,500 | 1,134,753 | 828,889 | ||
Average price (in dollars per share) | $ 63.83 | $ 49.72 | $ 64.16 | $ 48.39 | |||
Aggregate value | $ 7,400 | $ 37,499 | $ 23,990 | $ 72,801 | $ 40,112 | ||
Treasury stock, value repurchased not settled | $ 600 | $ 2,100 | $ 600 | $ 2,100 | |||
Magnus | |||||||
Dividends Payable [Line Items] | |||||||
Shares repurchased (in shares) | 1,824,994 | 2,168,528 | 0 | 0 | 0 | 2,168,528 | |
Average price (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 46.11 | |||
Aggregate value | $ 100,000 | $ 100,000 | $ 0 | $ 0 | $ 0 | $ 100,001 |
Equity Incentive Plans - Narrat
Equity Incentive Plans - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
RSUs | 2015 Omnibus Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 29.9 |
Weighted average period (in years) | 1 year 6 months |
RSUs | Company Officers | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 3 years |
Vesting percentage | 33.33% |
RSUs | Officers, Employees, Consultants and Advisors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 3 years |
RSUs | Other Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance period (in years) | 3 years |
PSUs | 2015 Omnibus Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 16.5 |
Weighted average period (in years) | 2 years |
PSUs | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 0% |
PSUs | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 200% |
Equity Incentive Plans - Schedu
Equity Incentive Plans - Schedule of Restricted and Performance Stock Units (Details) - 2015 Omnibus Incentive Plan | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Common Stock | |
Weighted - Average Fair Value | |
Undelivered (in shares) | 266,198 |
RSUs | |
Number of Units | |
Outstanding at beginning of the period (in shares) | 868,063 |
Granted (in shares) | 307,816 |
Vested (in shares) | (492,950) |
Forfeited (in shares) | (17,092) |
Outstanding at end of the period (in shares) | 665,837 |
Weighted - Average Fair Value | |
Outstanding at beginning of the period (in dollars per share) | $ / shares | $ 46.45 |
Granted (in dollars per share) | $ / shares | 66.72 |
Vested (in dollars per share) | $ / shares | 46.51 |
Forfeited (in dollars per share) | $ / shares | 32.48 |
Outstanding at end of the period (in dollars per share) | $ / shares | $ 56.14 |
Undelivered (in shares) | 56,588 |
PSUs | |
Number of Units | |
Outstanding at beginning of the period (in shares) | 480,254 |
Granted (in shares) | 156,087 |
Vested (in shares) | (133,099) |
Forfeited (in shares) | (2,275) |
Outstanding at end of the period (in shares) | 500,967 |
Weighted - Average Fair Value | |
Outstanding at beginning of the period (in dollars per share) | $ / shares | $ 46.07 |
Granted (in dollars per share) | $ / shares | 66.77 |
Vested (in dollars per share) | $ / shares | 45.36 |
Forfeited (in dollars per share) | $ / shares | 56.40 |
Outstanding at end of the period (in dollars per share) | $ / shares | $ 52.66 |
Undelivered (in shares) | 86,762 |
Achieved target level of performance (in percent) | 100% |
Equity Incentive Plans - Sche_2
Equity Incentive Plans - Schedule of Compensation Expense Recorded in the Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Compensation expense | $ 7,543 | $ 8,781 | $ 14,967 | $ 16,064 |
RSUs | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Compensation expense | 5,632 | 4,800 | ||
RSUs | 2015 Omnibus Incentive Plan | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Compensation expense | 10,128 | 8,954 | ||
PSUs | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Compensation expense | $ 1,747 | $ 3,817 | ||
PSUs | 2015 Omnibus Incentive Plan | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Compensation expense | $ 4,511 | $ 6,782 |
Equity Incentive Plans - Sche_3
Equity Incentive Plans - Schedule of Shares of Common Stock Issued (Details) - 2015 Omnibus Incentive Plan - shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
RSUs | ||
Class of Stock [Line Items] | ||
Cumulative undelivered shares of common stock (in shares) | 56,588 | |
PSUs | ||
Class of Stock [Line Items] | ||
Cumulative undelivered shares of common stock (in shares) | 86,762 | |
Common Stock | RSUs | ||
Class of Stock [Line Items] | ||
Shares of common stock issued (in shares) | 465,992 | 448,897 |
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations (in shares) | (155,596) | (128,291) |
Net shares of common stock issued (in shares) | 310,396 | 320,606 |
Cumulative undelivered shares of common stock (in shares) | 491,381 | 479,991 |
Common Stock | PSUs | ||
Class of Stock [Line Items] | ||
Shares of common stock issued (in shares) | 219,831 | 231,580 |
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations (in shares) | (95,814) | (91,842) |
Net shares of common stock issued (in shares) | 124,017 | 139,738 |
Cumulative undelivered shares of common stock (in shares) | 471,078 | 420,447 |
Equity Incentive Plans - Sche_4
Equity Incentive Plans - Schedule of Compensation Expense Related to Equity Incentive Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense before income tax | $ 7,543 | $ 8,781 | $ 14,967 | $ 16,064 |
Income tax benefit | 1,737 | 1,867 | 3,409 | 3,359 |
Total compensation expense, net of income tax | 5,806 | 6,914 | 11,558 | 12,705 |
Cost of goods sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense before income tax | 400 | 382 | 803 | 755 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense before income tax | 6,728 | 8,023 | 13,317 | 14,246 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense before income tax | $ 415 | $ 376 | $ 847 | $ 1,063 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, Net of Tax (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | $ 903,087 |
Other comprehensive (loss) income before reclassifications | (12,528) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (6,333) |
Tax benefit (expense) | 172 |
Ending balance | 898,709 |
Foreign Currency Translation | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (95,425) |
Other comprehensive (loss) income before reclassifications | (18,794) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 |
Tax benefit (expense) | 0 |
Ending balance | (114,219) |
Gains (Losses) on Derivative Instruments | Foreign Exchange Derivative Instruments | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | 3,929 |
Other comprehensive (loss) income before reclassifications | 5,337 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (5,403) |
Tax benefit (expense) | 172 |
Ending balance | 4,035 |
Gains (Losses) on Derivative Instruments | Interest rate swap | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | 227 |
Other comprehensive (loss) income before reclassifications | 769 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (517) |
Tax benefit (expense) | (61) |
Ending balance | 418 |
Pension and Other Postretirement | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (13,080) |
Other comprehensive (loss) income before reclassifications | 160 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (413) |
Tax benefit (expense) | 61 |
Ending balance | (13,272) |
Accumulated Other Comprehensive Loss, Net of Tax | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (104,349) |
Ending balance | $ (123,038) |
Net Income per Common Share - S
Net Income per Common Share - Schedule of Computation of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income attributable to Acushnet Holdings Corp. | $ 71,428 | $ 74,655 | $ 159,190 | $ 167,930 |
Weighted average number of common shares: | ||||
Basic (in shares) | 63,935,451 | 68,341,608 | 64,278,286 | 68,277,693 |
Diluted (in shares) | 64,160,688 | 68,649,044 | 64,524,931 | 68,647,983 |
Net income per common share attributable to Acushnet Holdings Corp.: | ||||
Basic (in dollars per share) | $ 1.12 | $ 1.09 | $ 2.48 | $ 2.46 |
Diluted (in dollars per share) | $ 1.11 | $ 1.09 | $ 2.47 | $ 2.45 |
RSUs | ||||
Weighted average number of common shares: | ||||
Basic (in shares) | 175,808 | 202,311 | ||
RSUs and PSUs (in shares) | 221,930 | 271,206 | ||
PSUs | ||||
Weighted average number of common shares: | ||||
Basic (in shares) | 49,429 | 105,125 | ||
RSUs and PSUs (in shares) | 24,715 | 99,084 |
Net Income per Common Share -_2
Net Income per Common Share - Schedule of Securities Excluded From the Calculation of Diluted Weighted Average Common Shares (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 211,442 | 0 | 217,579 | 129,748 |
Segment Information - Schedule
Segment Information - Schedule of Information by Reportable Segment and a Reconciliation to Reported Amounts (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 4 | |||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 683,867 | $ 689,363 | $ 1,391,421 | $ 1,375,653 |
Segment operating income | 106,023 | 106,490 | 227,404 | 231,394 |
Reconciling items: | ||||
Interest expense, net | (14,104) | (10,949) | (27,180) | (20,845) |
Income before income taxes | 91,376 | 95,113 | 199,342 | 209,457 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 683,867 | 689,363 | 1,391,421 | 1,375,653 |
Segment operating income | 110,313 | 112,224 | 242,804 | 240,945 |
Reconciling Items | ||||
Reconciling items: | ||||
Interest expense, net | (14,104) | (10,949) | (27,180) | (20,845) |
Restructuring costs (Note 16) | 0 | 0 | (6,967) | 0 |
Non-service cost component of net periodic benefit cost | (787) | (672) | (1,563) | (1,657) |
Other | (4,046) | (5,490) | (7,752) | (8,986) |
Titleist golf balls | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 247,470 | 237,567 | 455,457 | 429,568 |
Segment operating income | 61,017 | 49,200 | 103,184 | 87,821 |
Titleist golf clubs | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 177,518 | 188,020 | 381,404 | 368,801 |
Segment operating income | 25,144 | 41,401 | 74,740 | 81,946 |
Titleist golf gear | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 68,915 | 69,871 | 137,087 | 136,914 |
Segment operating income | 13,911 | 13,679 | 24,024 | 25,869 |
FootJoy golf wear | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 157,209 | 158,231 | 349,616 | 363,505 |
Segment operating income | 7,873 | 3,595 | 34,312 | 34,396 |
Other | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 32,755 | 35,674 | 67,857 | 76,865 |
Segment operating income | $ 2,368 | $ 4,349 | $ 6,544 | $ 10,913 |
Segment Information - Schedul_2
Segment Information - Schedule of Net Sales By Geographical Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | $ 683,867 | $ 689,363 | $ 1,391,421 | $ 1,375,653 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 408,527 | 401,372 | 826,770 | 771,303 |
EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 86,675 | 86,099 | 188,354 | 190,859 |
Japan | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 29,843 | 32,773 | 66,993 | 79,148 |
Korea | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 83,825 | 86,631 | 159,076 | 175,615 |
Rest of World | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | $ 74,997 | $ 82,488 | $ 150,228 | $ 158,728 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Payments Due by Period | |
Remainder of 2024 | $ 260,375 |
2025 | 32,918 |
2026 | 5,289 |
2027 | 2,472 |
2028 | 2,414 |
Thereafter | $ 7,239 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Details) $ in Millions | Jun. 30, 2024 USD ($) |
VBR | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred to date | $ 7 |
Restructuring Costs - Schedule
Restructuring Costs - Schedule of Company's Restructuring Program Rollforward (Details) - VBR - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | $ 2,247 | $ 0 |
Provision | 0 | 6,967 |
Payments | (234) | (4,954) |
Balance at end of period | $ 2,013 | $ 2,013 |
Other Business Developments (De
Other Business Developments (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jan. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Business Acquisition [Line Items] | |||
Payments to acquire intangible assets | $ 0 | $ 25,235 | |
Trademarks, Domains and Products | Club Glove | |||
Business Acquisition [Line Items] | |||
Payments to acquire intangible assets | $ 25,200 | ||
Cash consideration | 22,200 | ||
Asset acquisition, contingent consideration | $ 3,000 | ||
Weighted average useful life | 10 years |