ACUSHNET HOLDINGS CORP., 10-K filed on 2/27/2020
Annual Report
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Cover - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Feb. 21, 2020
Jun. 30, 2019
Cover page.      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2019    
Document Transition Report false    
Entity File Number 001-37935    
Entity Registrant Name Acushnet Holdings Corp.    
Entity Central Index Key 0001672013    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Amendment Flag false    
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, par value $0.001 per share    
Trading Symbol GOLF    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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 Public Float     $ 903.6
Entity Common Stock, Shares Outstanding   74,383,716  
Documents Incorporated by Reference
Portions of the definitive proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A relating to the Registrant’s Annual General Meeting of Shareholders, to be held on June 8, 2020, will be incorporated by reference in this Form 10-K in response to Items 10, 11, 12, 13 and 14 of Part III. The definitive proxy statement will be filed with the SEC not later than 120 days after the registrant’s fiscal year ended December 31, 2019.
   
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Current assets    
Cash and restricted cash ($8,514 and $8,436 attributable to the variable interest entity (VIE)) $ 34,184 $ 31,014
Accounts receivable, net 215,428 186,114
Inventories ($11,958 and $9,658 attributable to the VIE) 398,368 361,207
Other assets 94,838 85,666
Total current assets 742,818 664,001
Property, plant and equipment, net ($11,374 and $11,615 attributable to the VIE) 231,575  
Property, plant and equipment, net ($11,374 and $11,615 attributable to the VIE)   228,388
Goodwill ($32,312 and $32,312 attributable to the VIE) 214,056 209,671
Intangible assets, net 480,794 478,257
Deferred income taxes 70,541 78,028
Other assets ($2,517 and $2,593 attributable to the VIE) 77,265 33,276
Total assets 1,817,049 1,691,621
Current liabilities    
Short-term debt 54,123 920
Current portion of long-term debt 17,500 35,625
Accounts payable ($8,360 and $6,882 attributable to the VIE) 102,335 86,045
Accrued taxes 36,032 38,268
Accrued compensation and benefits ($3,542 and $1,634 attributable to the VIE) 72,465 77,181
Accrued expenses and other liabilities ($4,468 and $3,462 attributable to the VIE) 76,663 56,828
Total current liabilities 359,118 294,867
Long-term debt 330,701 346,953
Deferred income taxes 4,837 4,635
Accrued pension and other postretirement benefits 118,852 102,077
Other noncurrent liabilities ($5,202 and $4,831 attributable to the VIE) 51,908 16,105
Total liabilities 865,416 764,637
Commitments and contingencies (Note 22)
Redeemable noncontrolling interest 807 0
Shareholders' equity    
Common stock, $0.001 par value, 500,000,000 shares authorized; 75,619,587 and 74,760,062 shares issued 76 75
Additional paid-in capital 910,507 910,890
Accumulated other comprehensive loss, net of tax (112,028) (89,039)
Retained earnings 151,039 72,946
Treasury stock, at cost; 1,183,966 shares (including 56,000 of accrued share repurchase) and no shares (Note 15) (31,154) 0
Total equity attributable to Acushnet Holdings Corp. 918,440 894,872
Noncontrolling interests 32,386 32,112
Total shareholders' equity 950,826 926,984
Total liabilities, redeemable noncontrolling interest and shareholders' equity $ 1,817,049 $ 1,691,621
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CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Cash and restricted cash $ 34,184 $ 31,014
Inventories 398,368 361,207
Property, plant and equipment, net 231,575  
Property, plant and equipment, net   228,388
Goodwill 214,056 209,671
Other assets 77,265 33,276
Accounts payable 102,335 86,045
Accrued compensation and benefits 72,465 77,181
Accrued expenses and other liabilities 76,663 56,828
Other noncurrent liabilities $ 51,908 $ 16,105
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 500,000,000 500,000,000
Common stock, shares issued 75,619,587 74,760,062
Treasury stock, at cost (in shares) 1,183,966 0
Accrued share repurchase (in shares) 56,000  
VIE    
Cash and restricted cash $ 8,514 $ 8,436
Inventories 11,958 9,658
Property, plant and equipment, net 11,374  
Property, plant and equipment, net   11,615
Goodwill 32,312 32,312
Other assets 2,517 2,593
Accounts payable 8,360 6,882
Accrued compensation and benefits 3,542 1,634
Accrued expenses and other liabilities 4,468 3,462
Other noncurrent liabilities $ 5,202 $ 4,831
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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Statement [Abstract]      
Net sales $ 1,681,357 $ 1,633,721 $ 1,560,258
Cost of goods sold 809,122 791,370 758,401
Gross profit 872,235 842,351 801,857
Operating expenses:      
Selling, general and administrative 627,503 611,883 578,289
Research and development 51,601 51,489 47,241
Intangible amortization 7,478 6,644 6,499
Income from operations 185,653 172,335 169,828
Interest expense, net (Note 18) 19,613 18,402 15,709
Other expense, net 875 3,629 2,443
Income before income taxes 165,165 150,304 151,676
Income tax expense 40,600 47,232 48,475
Net income 124,565 103,072 103,201
Less: Net income attributable to noncontrolling interests (3,495) (3,200) (4,506)
Net income attributable to Acushnet Holdings Corp. $ 121,070 $ 99,872 $ 98,695
Net income per common share attributable to Acushnet Holdings Corp.:      
Basic (in dollars per share) $ 1.61 $ 1.34 $ 1.33
Diluted (in dollars per share) $ 1.60 $ 1.32 $ 1.32
Weighted average number of common shares:      
Basic (in shares) 75,418,204 74,766,176 74,399,836
Diluted (in shares) 75,759,605 75,472,342 74,590,999
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Statement of Comprehensive Income [Abstract]      
Net income $ 124,565 $ 103,072 $ 103,201
Other comprehensive income (loss):      
Foreign currency translation adjustments 666 (11,971) 26,964
Cash flow derivative instruments      
Unrealized holding gains (losses) arising during period 3,305    
Unrealized holding gains (losses) arising during period   6,222 (15,558)
Reclassification adjustments included in net income (7,476)    
Reclassification adjustments included in net income   1,886 (1,329)
Tax benefit (expense) 909    
Tax benefit (expense)   (1,668) 4,072
Cash flow derivative instruments, net (3,262)    
Cash flow derivative instruments, net   6,440 (12,815)
Available-for-sale securities      
Unrealized holding gains arising during period 0 0 150
Tax benefit 0 0 35
Available-for-sale securities, net 0 0 185
Pension and other postretirement benefits      
Pension and other postretirement benefits adjustments (26,537) 5,690 (6,889)
Tax benefit (expense) 6,144 (1,375) 1,698
Pension and other postretirement benefits adjustments, net (20,393) 4,315 (5,191)
Total other comprehensive (loss) income (22,989) (1,216) 9,143
Comprehensive income 101,576 101,856 112,344
Less: Comprehensive income attributable to noncontrolling interests (3,577) (3,114) (4,524)
Comprehensive income attributable to Acushnet Holdings Corp. $ 97,999 $ 98,742 $ 107,820
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CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in Thousands
12 Months Ended
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Cash flows from operating activities      
Net income $ 124,565 $ 103,072 $ 103,201
Adjustments to reconcile net income to cash provided by (used in) operating activities      
Depreciation and amortization 43,002 40,496 40,871
Unrealized foreign exchange loss (gain) 215 3,960 (4,028)
Amortization of debt issuance costs 1,884 1,409 1,321
Share-based compensation 10,975 18,563 15,285
Loss on disposals of property, plant and equipment 13 128 912
Deferred income taxes 8,474 15,541 21,272
Changes in operating assets and liabilities      
Accounts receivable (27,092) 571 (2,592)
Inventories (25,168) 805 (28,372)
Accounts payable 10,851 (5,789) 974
Accrued taxes 2,655 4,311 (10,283)
Other assets and liabilities (16,091) (19,334) (165,598)
Cash flows provided by (used in) operating activities 134,283 163,733 (27,037)
Cash flows from investing activities      
Additions to property, plant and equipment (32,956) (32,801) (18,845)
Business acquisitions, net of cash acquired (28,104) (16,902) 0
Cash flows used in investing activities (61,060) (49,703) (18,845)
Cash flows from financing activities      
Proceeds (repayments) of short-term borrowings, net 54,115    
Proceeds (repayments) of short-term borrowings, net   (17,742) (25,548)
Proceeds from term loan facility 350,000 0 0
Proceeds from delayed draw term loan A facility 0 0 100,000
Repayments of term loan A facility (330,469) (21,094) (18,750)
Repayments of delayed draw term loan A facility (54,375) (40,625) (5,000)
Purchases of common stock (29,352) 0 0
Debt issuance costs (2,373) (381) 0
Dividends paid on common stock (43,490) (39,057) (35,744)
Dividends paid to noncontrolling interests (3,354) (7,350) (4,800)
Payment of employee restricted stock tax withholdings (11,030) (2,634) (903)
Cash flows (used in) provided by financing activities (70,328) (128,883) 9,255
Effect of foreign exchange rate changes on cash and restricted cash 275 (1,855) 5,209
Net increase (decrease) in cash and restricted cash 3,170 (16,708) (31,418)
Cash and restricted cash, beginning of year 31,014 47,722 79,140
Cash and restricted cash, end of year 34,184 31,014 47,722
Supplemental information      
Cash paid for interest to third parties 18,218 18,344 15,488
Cash paid for income taxes 31,269 27,389 35,949
Non-cash additions to property, plant and equipment 2,820 2,568 2,876
Dividend equivalents rights (DERs) declared not paid 775 882 801
Share repurchase liability (Note 15) 1,802 0 0
Non-cash loan to noncontrolling interest (Note 21) $ 4,392 $ 0 $ 0
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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 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
Retained Earnings (Deficit)
Treasury Stock
Noncontrolling Interests
Beginning balance at Dec. 31, 2016 $ 768,823 $ 735,865 $ 74 $ 880,576 $ (90,834) $ (53,951)   $ 32,958
Beginning balance (in shares) at Dec. 31, 2016     74,094          
Changes in stockholders' equity                
Net income 103,201 98,695       98,695   4,506
Other comprehensive income (loss) 9,143 9,143     9,143      
Share-based compensation 15,054 15,054   15,054        
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 16) (903) (903)   (903)        
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 16) (in shares)     385          
Share repurchase liability (Note 15) 0              
Dividends and dividend equivalents declared (36,545) (36,545)       (36,545)    
Dividends declared to noncontrolling interests (4,800)             (4,800)
Ending balance at Dec. 31, 2017 853,973 821,309 $ 74 894,727 (81,691) 8,199   32,664
Ending balance (in shares) at Dec. 31, 2017     74,479          
Changes in stockholders' equity                
Acquisitions (Note 21) 3,598             3,598
Net income 103,072 99,872       99,872   3,200
Other comprehensive income (loss) (1,216) (1,216)     (1,216)      
Share-based compensation 18,794 18,794   18,794        
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 16) (2,630) (2,630) $ 1 (2,631)        
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 16) (in shares)     281          
Share repurchase liability (Note 15) 0              
Dividends and dividend equivalents declared (39,756) (39,756)       (39,756)    
Dividends declared to noncontrolling interests (7,350)             (7,350)
Ending balance at Dec. 31, 2018 926,984 894,872 $ 75 910,890 (89,039) 72,946   32,112
Ending balance (in shares) at Dec. 31, 2018     74,760          
Changes in stockholders' equity                
Net income 124,698 121,070       121,070   3,628
Net income 124,565              
Other comprehensive income (loss) (22,989) (22,989)     (22,989)      
Share-based compensation 10,647 10,647   10,647        
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 16) (11,029) (11,029) $ 1 (11,030)        
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 16) (in shares)     860          
Purchases of common stock (Note 15) (29,352) (29,352)         $ (29,352)  
Share repurchase liability (Note 15) (1,802) (1,802)         (1,802)  
Dividends and dividend equivalents declared (42,977) (42,977)       (42,977)    
Dividends declared to noncontrolling interests (3,354)             (3,354)
Ending balance at Dec. 31, 2019 $ 950,826 $ 918,440 $ 76 $ 910,507 $ (112,028) $ 151,039 $ (31,154) $ 32,386
Ending balance (in shares) at Dec. 31, 2019     75,620          
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Description of Business
12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business Description of Business
Acushnet Holdings Corp. (the “Company”), headquartered in Fairhaven, Massachusetts, is the global leader in the design, development, manufacture and distribution of performance-driven golf products. The Company has established positions across all major golf equipment and golf wear categories under its globally recognized brands of Titleist, FootJoy, Scotty Cameron and Vokey Design. Acushnet products are sold primarily to on-course golf pro shops and selected off-course golf specialty stores, sporting goods stores and other qualified retailers. The Company sells products primarily in the United States, Europe (primarily the United Kingdom, Germany, France, Sweden and Switzerland), Asia (primarily Japan, Korea, China and Singapore), Canada and Australia. Acushnet manufactures and sources its products principally in the United States, China, Thailand, the United Kingdom and Japan.
Acushnet Holdings Corp. was incorporated in Delaware on May 9, 2011 as Alexandria Holdings Corp., an entity owned by Fila Holdings Co., formerly known as Fila Korea Co., Ltd., (“Fila”), a leading sport and leisure apparel and footwear company which is a public company listed on the Korea Exchange, and a consortium of investors (the “Financial Investors”). Acushnet Holdings Corp. acquired Acushnet Company, its operating subsidiary, from Beam Suntory, Inc. (at the time known as Fortune Brands, Inc.) (“Beam”) on July 29, 2011. On November 2, 2016, the Company completed an initial public offering at a public offering price of $17.00 per share. Following the pricing of the initial public offering, Magnus Holdings Co., Ltd. (“Magnus”), a wholly-owned subsidiary of Fila, purchased from the Financial Investors shares of the Company’s common stock, resulting in Magnus holding a controlling ownership interest in the Company’s outstanding common stock.
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Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The accompanying 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 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 prior period amounts have been reclassified to conform to current year presentation.
Use of Estimates
The preparation of the Company’s 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 those estimates.
Variable Interest Entities
VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities independently, or (ii) have equity holders that do not have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the entity’s expected losses, or the right to receive the entity’s expected residual returns. The Company consolidates a VIE when it is the primary beneficiary, which is the party that has both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) through its interests in the VIE, the obligation to absorb expected losses or the right to receive expected benefits from the VIE that could potentially be significant to the VIE.
The Company consolidates the accounts of Acushnet Lionscore Limited, a VIE which is 40% owned by the Company. The sole purpose of the VIE is to manufacture the Company’s golf footwear and as such, the Company is deemed to be the primary beneficiary. The Company has presented separately on its consolidated balance sheets, to the extent material, the assets of its consolidated VIE that can only be used to settle specific obligations of its consolidated VIE and the liabilities of its consolidated VIE for which creditors do not have recourse to its general credit. The general creditors of the VIE do not have recourse to the Company. Certain directors of the VIE have guaranteed the credit lines of the VIE, for which there were no outstanding borrowings as of December 31, 2019 and 2018. In addition, pursuant to the terms of the agreement governing the VIE, the Company is not required to provide financial support to the VIE.
Noncontrolling Interests and Redeemable Noncontrolling Interest
The ownership interests held by owners other than the Company in less than wholly-owned subsidiaries are classified as noncontrolling interests. 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 financial results and position of the noncontrolling interests are included in their entirety in the Company’s consolidated statements of operations and consolidated balance sheets. The value attributable to the noncontrolling interests is presented on the consolidated balance sheets, separately from the equity attributable to the Company. The value attributable to the redeemable noncontrolling interest is presented in the consolidated balance sheets as temporary equity between liabilities and shareholders’ equity. Net income (loss) and comprehensive income (loss) attributable to noncontrolling interests are presented separately on the consolidated statements of operations and consolidated statements of comprehensive income, respectively.
Cash and Restricted Cash
Cash held in Company checking accounts is included in cash. Book overdrafts not subject to offset with other accounts with the same financial institution are classified as accounts payable. As of December 31, 2019 and 2018, book overdrafts in the amount of $2.4 million and $2.2 million, respectively, were recorded in accounts payable. The Company classifies as restricted certain cash that is not available for use in its operations. As of December 31, 2019 and 2018, the amount of restricted cash included in cash and restricted cash on the consolidated balance sheets was $2.0 million.
Concentration of Credit Risk and of Significant Customers
Financial instruments that potentially expose the Company to concentration of credit risk are cash and accounts receivable. Substantially all of the Company's cash deposits are maintained at large, creditworthy financial institutions. The Company's deposits, at times, may exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. As part of its ongoing procedures, the Company monitors its concentration of deposits with various financial institutions in order to avoid any undue exposure. As of December 31, 2019 and 2018, the Company had $30.0 million and $28.6 million, respectively, in banks located outside the United States. The risk with respect to the Company's accounts receivable is managed by the Company through its policy of monitoring the creditworthiness of its customers to which it grants credit terms in the normal course of business.
Inventories
Inventories are valued at the lower of cost and net realizable value. Approximate cost is determined on the first-in, first-out basis. The inventory balance, which includes material, labor and manufacturing overhead costs, is recorded net of an allowance for obsolete or slow moving inventory. The Company's allowance for obsolete or slow moving inventory contains estimates regarding uncertainties. Such estimates are updated each reporting period and require the Company to make assumptions and to apply judgment regarding a number of factors, including market conditions, selling environment, historical results and current inventory trends. See Note 6 for additional information.
Property, Plant and Equipment
Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Gains or losses resulting from disposals are included in income from operations. Betterments and renewals, which improve and extend the life of an asset, are capitalized. Maintenance and repair costs are expensed as incurred.
Estimated useful lives of property, plant and equipment asset categories were as follows:
Buildings and improvements
15
-
40 years
Machinery and equipment
3
-
10 years
Furniture, fixtures and computer hardware
3
-
10 years
Computer software
1
-
10 years
 
Leasehold and tenant improvements are amortized over the shorter of the lease term or the estimated useful lives of the assets.
Certain costs incurred in connection with the development of the Company's internal-use software are capitalized. Internal-use software development costs are primarily related to the Company's enterprise resource planning system. Costs incurred in the preliminary stages of development are expensed as incurred. Internal and external costs incurred in the
application development phase, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing performed to ensure the product is ready for its intended use. Costs such as maintenance and training are expensed as incurred. The capitalized internal-use software costs are included in property, plant and equipment and once the software is placed into service are amortized over the estimated useful life which ranges from three to ten years. See Note 7 for additional information.
Long-Lived Assets
Long-lived assets are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are recorded on a straight-line basis, generally over the estimated useful lives of the assets. A long-lived asset (including amortizing intangible assets) or asset group is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, the Company compares the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of the asset or asset group. The cash flows are based on the best estimate of future cash flows derived from the most recent business projections. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment loss is recognized based on the excess of the asset's or asset group's carrying value over its fair value. Fair value is determined based on discounted expected future cash flows on a market participant basis.
The Company continually evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets may warrant revision or that the remaining balance may not be recoverable. These factors may include a significant deterioration of operating results, changes in business plans, or changes in anticipated cash flows.
Goodwill and Indefinite-Lived Intangible Assets
Goodwill and indefinite-lived intangible assets are not amortized but instead are measured for impairment at least annually, or more frequently when events or changes in circumstances indicate that the carrying amount of the asset may be impaired.
Goodwill is assigned to reporting units for purposes of impairment testing. A reporting unit may be the same as an operating segment or one level below an operating segment. For purposes of assessing potential impairment, the Company compares the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company records goodwill impairment in the amount of the excess of a reporting unit’s carrying value over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The fair value of the reporting units is determined using the income approach. The income approach uses a discounted cash flow analysis which involves applying appropriate discount rates to estimated future cash flows based on forecasts of sales, costs and capital requirements.
Purchased intangible assets other than goodwill are amortized over their useful lives unless those lives are determined to be indefinite. Certain of the Company's trademarks have been assigned an indefinite life as the Company currently anticipates that these trademarks will contribute to its cash flows indefinitely. Indefinite-lived trademarks are reviewed for impairment annually and may be reviewed more frequently if indicators of impairment are present. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company measures the fair value of its trademarks using the relief-from-royalty method, which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. See Note 8 for additional information.
The Company performs its annual impairment tests in the fourth quarter of each fiscal year. During the years ended December 31, 2019, 2018 and 2017, no impairment charges were recorded to goodwill or indefinite-lived intangible assets.
Debt Issuance Costs
The Company defers costs directly associated with acquiring third-party financing. These debt issuance costs are amortized as interest expense over the term of the related indebtedness. Debt issuance costs associated with the revolving credit facilities are included in other current and noncurrent assets and debt issuance costs associated with all other indebtedness are netted against long-term debt on the consolidated balance sheet. See Note 10 for additional information.
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. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:
Level 1—Quoted prices in active markets for identical assets or liabilities.
Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.
The Company’s derivative instrument assets and liabilities are carried at fair value determined according to the fair value hierarchy described above (Note 11 and 12). The carrying value of accounts receivable, accounts payable and accrued expenses approximates fair value due to the short-term nature of these assets and liabilities.
See Note 12 for additional information regarding the Company's fair value measurements.
Pension and Other Postretirement Benefit Plans
The Company provides U.S. and foreign defined benefit and defined contribution plans to certain eligible employees and postretirement benefits to certain retirees, including pensions, postretirement healthcare benefits and other postretirement benefits.
Plan assets and obligations are measured using various actuarial assumptions, such as discount rates, rate of compensation increase, mortality rates, turnover rates and health care cost trend rates, as determined at each year end measurement date. The measurement of net periodic benefit cost is based on various actuarial assumptions, including discount rates, expected return on plan assets and rate of compensation increase, which are determined as of the prior year measurement date. The determination of the discount rate is generally based on an index created from a hypothetical bond portfolio consisting of high-quality fixed income securities with durations that match the timing of expected benefit payments. The expected return on plan assets is determined based on several factors, including adjusted historical returns, historical risk premiums for various asset classes and target asset allocations within the portfolio. Adjustments made to the historical returns are based on recent return experience in the equity and fixed income markets and the belief that deviations from historical returns are likely over the relevant investment horizon. Actual cost is also dependent on various other factors related to the employees covered by these plans. The effects of actuarial deviations from assumptions are generally accumulated and, if over a specified corridor, amortized over the remaining service period of the employees. The cost or benefit of plan changes, such as increasing or decreasing benefits for prior employee service (prior service cost), is deferred and included in expense on a straight-line basis over the average remaining service period of the related employees. The Company's actuarial assumptions are reviewed on an annual basis and modified when appropriate.
To calculate the U.S. pension and postretirement benefit plan expense in 2019, 2018 and 2017, the Company applied the individual spot rates along the yield curve that correspond with the timing of each future cash outflow for the benefit payments in order to calculate interest cost and service cost. See Note 13 for additional information.
Income Taxes
The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between consolidated financial statement carrying amounts and tax basis amounts at enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is recorded to reduce deferred income tax assets when it is more-likely-than-not that such assets will not be realized. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies.
The Company records liabilities for uncertain income tax positions based on the two step process. The first step is recognition, where an individual tax position is evaluated as to whether it has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The amount of the benefit that may be recognized is the largest amount that has a greater
than 50% likelihood of being realized on ultimate settlement. The actual benefits ultimately realized may differ from the estimates. In future periods, changes in facts, circumstances, and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in income tax expense and liability in the period in which such changes occur. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes on the consolidated statements of income.
Beam has indemnified certain tax obligations that relate to periods during which Fortune Brands, Inc. owned Acushnet Company (Note 22). These estimated tax obligations are recorded in accrued taxes and other noncurrent liabilities, and the related indemnification receivable is recorded in other noncurrent assets on the consolidated balance sheet. Any changes in the value of these specifically identified tax obligations are recorded in the period identified in income tax expense and the related change in the indemnification asset is recorded in other expense, net on the consolidated statement of operations. See Note 14 for additional information.
On December 22, 2017, the U.S. enacted the 2017 Tax Act. The 2017 Tax Act contains a new law that subjects the Company to a tax on Global Intangible Low-Taxed Income (“GILTI”), beginning in 2018. GILTI is a tax on foreign income in excess of a deemed return on tangible assets of related foreign corporations. Companies subject to GILTI have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for temporary differences, including outside basis differences, expected to reverse as GILTI. The Company has elected to account for GILTI as a period cost.
Cost of Goods Sold
Cost of goods sold includes all costs to make products salable, such as inbound freight, purchasing and receiving costs, inspection costs and transfer costs. In addition, all depreciation expense associated with assets used to manufacture products and make them salable is included in cost of goods sold.
Product Warranty
The Company has defined warranties generally ranging from one to two years. Products covered by the defined warranty policies primarily include all Titleist golf products, FootJoy golf shoes, and FootJoy golf outerwear. These product warranties generally obligate the Company to pay for the cost of replacement products, including the cost of shipping replacement products to its customers. The estimated cost of satisfying future warranty claims is accrued at the time the sale is recorded. In estimating future warranty obligations, the Company considers various factors, including its warranty policies and practices, the historical frequency of claims, and the cost to replace or repair products under warranty. See Note 9 for additional information.
Advertising and Promotion
Advertising and promotional costs are included in selling, general and administrative expense on the consolidated statement of operations and include product endorsement arrangements with members of the various professional golf tours, media placement and production costs (television, print and internet), tour support expenses and point-of-sale materials. Advertising production costs are expensed as incurred. Media placement costs are expensed in the month the advertising first appears. Product endorsement arrangements are expensed based upon the specific provisions of player contracts. Advertising and promotional expense was $193.5 million, $192.2 million and $192.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.
Selling
Selling expenses including field sales, sales administration and shipping and handling costs are included in selling, general and administrative expense on the consolidated statement of operations. Shipping and handling costs included in selling expenses were $36.7 million, $34.1 million and $32.5 million for the years ended December 31, 2019, 2018 and 2017, respectively.
Research and Development
Research and development expenses include product development, product improvement, product engineering, and process improvement costs and are expensed as incurred.
Foreign Currency Translation and Transactions
Assets and liabilities denominated in foreign currency are translated into U.S. dollars at the actual rates of exchange at the balance sheet date. Revenues and expenses are translated at the average rates of exchange for the reporting period. The related translation adjustments are recorded as a component of accumulated other comprehensive loss, net of tax. Transactions denominated in a currency other than the functional currency are re-measured into functional currency with resulting transaction gains or losses recorded as selling, general and administrative expense on the consolidated statement of operations. Foreign currency transaction gain (loss) included in selling, general and administrative expense was a loss of $0.5 million, a loss of $1.9 million and a gain of $4.1 million for the years ended December 31, 2019, 2018 and 2017, respectively.
Derivative Financial Instruments
All derivative instruments are recognized as either assets or liabilities on the consolidated balance sheet and are measured at fair value. If the derivative instrument is designated as a fair value hedge, the changes in the fair value of the derivative instruments and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss and are recognized in the consolidated statement of operations when the hedged item affects earnings. Any portion of the change in fair value that is determined to be ineffective is immediately recognized in the consolidated statement of operations. Cash flows from derivative financial instruments and the related hedged transactions are included in cash flows from operating activities. See Note 11 for additional information.
Share-based Compensation
The Company has a share-based compensation plan for members of the board of directors, officers, employees, consultants and advisors of the Company. All awards granted under the plan are measured at fair value at the date of the grant. The estimated fair value is determined based on the closing price of the Company's common stock, generally on the award date, multiplied by the number of shares per the stock award. The Company issues share-based awards with service-based vesting conditions and performance-based vesting conditions. Awards with service-based vesting conditions are amortized as expense over the requisite service period of the award, which is generally the vesting period of the respective award. For awards with performance-based vesting conditions, the measurement of the expense is based on the Company’s level of achievement of performance metrics as defined in the applicable award agreements. The Company accounts for forfeitures in compensation expense when they occur. See Note 16 for additional information.
Recently Adopted Accounting Standards
Leases
On January 1, 2019, the Company adopted Accounting Standards Codification ("ASC") Topic 842, Leases ("ASC 842"), which requires the recognition of right-of-use assets and related operating and finance lease liabilities on the consolidated balance sheet. As permitted by ASC 842, the Company adopted ASC 842 using the optional transition approach, which allowed for a cumulative effect adjustment as of January 1, 2019, which is the date of initial application, and did not restate prior periods. As a result, the consolidated balance sheet prior to January 1, 2019 was not restated and continues to be reported under ASC Topic 840, Leases ("ASC 840"), which did not require the recognition of right-of-use assets and related operating lease liabilities on the consolidated balance sheet, and is not comparative.
Under ASC 842, all leases are required to be recorded on the consolidated balance sheet and are classified as either operating or finance leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset, the present value of the lease payments equals or exceeds substantially all of the fair value of the asset, or the leased asset is of a highly specialized nature. A lease is classified as an operating lease if it does not meet any one of these criteria.
The lease classification affects the expense recognition in the consolidated statement of operations. Operating lease expense consists of the lease payments plus any initial direct costs and is recognized on a straight-line basis over the lease term in the consolidated statement of operations. Finance lease charges are split, where amortization of the right-of-use asset is recorded as depreciation and amortization expense and an implied interest component is recorded in interest expense, net. The expense recognition for operating leases and finance leases under ASC 842 is consistent with ASC 840. As a result, there is no impact on the results of operations presented in the Company's consolidated statements of operations and consolidated statements of comprehensive income for the periods presented as a result of the adoption of ASC 842.
As permitted under ASC 842, the Company also elected to not reassess prior conclusions related to the identification, classification and accounting for initial direct costs for leases that commenced prior to January 1, 2019. As permitted under ASC 842, the Company elected to not use hindsight to determine lease terms. As permitted under ASC 842, the Company has elected to not separate non-lease components within its lease portfolio. As permitted under ASC 842, the Company has also elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The effect of short-term leases on the Company's operating right-of-use assets and operating lease liabilities was not material.
Upon adoption of ASC 842, the Company recognized operating lease right-of-use assets and operating lease liabilities. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred less any lease incentives received. Lease payments included in the measurement of the lease liability comprise the following: the fixed non-cancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early. The discount rate implicit within the Company's leases is generally not determinable and therefore the Company determines the discount rate based on its incremental collateralized borrowing rate applicable to the location where the lease is held. The incremental borrowing rate for each of the Company's leases is determined based on the lease term and currency in which such lease payments are made. On January 1, 2019, the Company recorded an adjustment to operating lease right-of-use assets and the related lease liabilities of $49.8 million.
The Company leases office and warehouse space, machinery and equipment, and vehicles, among other items. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to three years. For contracts entered into on or after the effective date, at the inception of a contract the Company assesses whether the contract is, or contains, a lease. The Company's assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtained the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether the Company has the right to direct the use of the asset. See further discussion in Note 4.
Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities
On January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2017‑12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” ("ASU 2017-12"). The amendments in this update expand and refine hedge accounting guidance and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. ASU 2017-12 also simplified the application of hedge accounting guidance, hedge documentation requirements and the assessment of hedge effectiveness. The adoption of this standard did not have a material impact on the consolidated financial statements.
Changes to the Disclosure Requirements for Fair Value Measurement
On January 1, 2019, the Company adopted ASU 2018-13, "Fair Value Measurement (Topic 820) —Disclosure Framework —Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). The amendments in this update are meant to provide more relevant information regarding valuation techniques and inputs used to arrive at measures of fair value, uncertainty in the fair value measurements, and how changes in fair value measurements impact an entity's performance and cash flows. The adoption of this standard did not have an impact on the consolidated financial statements or related disclosures.
Financial Instruments—Recognition and Measurement
On January 1, 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). ASU 2016-01 superseded the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and required equity securities to be measured at fair value with changes in the fair value recognized through net income, among other items (Note 17). As a result of the adoption of the amendments in this update, the Company recorded a reclassification of unrealized gains of $2.1 million from accumulated other comprehensive loss, net of tax to retained earnings. The comparative information for the year ended December 31, 2017 has not been restated and continues to be reported under the accounting standards in effect for such period.

Recently Issued Accounting Standards
Income Taxes
In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, "Income Taxes (Topic 740) —Simplifying the Accounting for Income Taxes ("ASU 2019-12"). The amendments in this update simplify the accounting for income taxes by removing certain exceptions to general principles in Topic 740. The amendments also improve consistent application and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements.
Intangibles —Goodwill and Other —Internal-Use Software
In August 2018, the FASB issued ASU 2018-15, "Intangibles —Goodwill and Other —Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract" ("ASU 2018-15"). The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.
Defined Benefit Plans—Changes to the Disclosure Requirements for Defined Benefit Plans
In August 2018, the FASB issued ASU 2018-14, "Compensation —Retirement Benefits —Defined Benefit Plans —General (Subtopic 715-20) —Disclosure Framework —Changes to the Disclosure Requirements for Defined Benefit Plans" ("ASU 2018-14"). The amendments in this update remove defined benefit plan disclosures that are no longer considered cost-beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The adoption of this standard should be applied to all periods presented. The adoption of this standard will not have a material impact on the consolidated financial statements.
Financial Instruments—Credit Losses
In June 2016, the FASB issued ASU 2016-13, "Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). ASU 2016-13 is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Additionally, enhanced disclosures will be required to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect the effect of adoption to have a material impact on its consolidated financial statements.
v3.19.3.a.u2
Revenue
12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 605, "Revenue Recognition".
The Company recorded a net reduction to opening retained earnings of $1.6 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606, with the impact primarily related to a promotional holiday program. The impact of applying ASC 606 was an increase in net sales of $4.3 million and an increase in cost of sales of $2.3 million for the year ended December 31, 2018. The adoption of ASC 606 did not have any other material impacts to the financial statements.
Accounting Policies
Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied. The majority of the Company's contracts have a single performance obligation to transfer products. Accordingly, the Company recognizes revenue when control of the products has been transferred to the customer, generally at the time of shipment or delivery of products, based on the terms of the contract and the jurisdiction of the sale. Revenue is recognized in an amount that
reflects the consideration the Company expects to be entitled to in exchange for the products. Revenue is recognized net of allowances for discounts and sales returns. Sales taxes and other similar taxes are excluded from revenue.
Substantially all of the Company’s revenue is recognized at a point in time and relates to customers who are not engaged in a long-term supply agreement or any form of contract with the Company. Substantially all sales are paid for on account with the majority of terms between 30 and 60 days, not to exceed one year.
Costs associated with shipping and handling activities, such as merchandising, are included in selling, general and administrative expenses as revenue is recognized. The Company has made an accounting policy election to account for shipping and handling activities that occur after control of the related good transfers as fulfillment activities instead of assessing such activities as performance obligations.
The Company reduces revenue by the amount of expected returns and records a corresponding refund liability in accrued expenses and other liabilities. The Company accounts for the right of return as variable consideration and recognizes a refund liability for the amount of consideration that it estimates will be refunded to customers. In addition, the Company recognizes an asset for the right to recover returned products in other assets on the consolidated balance sheets. Sales returns are estimated based upon historical rates of product returns, current economic trends and changes in customer demands as well as specific identification of outstanding returns. The refund liability for expected returns was $10.2 million and $9.8 million as of December 31, 2019 and 2018, respectively. The value of inventory expected to be recovered related to sales returns was $6.1 million and $5.7 million as of December 31, 2019 and 2018, respectively.
Contract Balances
Accounts receivable, net, include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance includes amounts for certain customers where a risk of default has been specifically identified as well as a provision for customer defaults when it is determined the risk of some default is probable and estimable, but cannot yet be associated with specific customers. The assessment of the likelihood of customer defaults is based on various factors, including credit risk assessments, length of time the receivables are past due, historical experience, customer specific information available to the Company and existing economic conditions, all of which are subject to change.
Customer Sales Incentives
The Company offers sales-based incentive programs to certain customers in exchange for certain benefits, including prominent product placement and exclusive stocking by participating retailers. These programs typically provide qualifying customers with rebates for achieving certain purchase goals. The rebates can be settled in the form of cash or credits or in the form of free product. The rebates which are expected to be settled in the form of cash or credits are accounted for as variable consideration. The estimate of the variable consideration requires the use of assumptions related to the percentage of customers who will achieve qualifying purchase goals and the level of achievement. These assumptions are based on historical experience, current year program design, current marketplace conditions and sales forecasts, including considerations of the Company's product life cycles.
The rebates which are expected to be settled in the form of product are estimated based upon historical experience and the terms of the customer programs and are accounted for as an additional performance obligation. Revenue will be recognized when control of the free products earned transfers to the customer at the end of the related customer incentive program, which generally occurs within one year. Control of the free products generally transfers to the customer at the time of shipment.
Practical Expedients and Exemptions
The Company expenses sales commissions when incurred because the amortization period is one year or less. These costs are recorded within selling, general and administrative expense on the consolidated statements of operations.
The Company has elected the practical expedient to not disclose information about remaining performance obligations that have original expected durations of one year or less.
Disaggregated Revenue
In general, the Company's business segmentation is aligned according to the nature and economic characteristics of its products and customer relationships and provides meaningful disaggregation of each business segment's results of operations. See Note 20 for the Company's business segment disclosures, as well as a further disaggregation of net sales by geographical area.
v3.19.3.a.u2
Leases
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Leases Leases
The Company's operating lease right-of-use assets and operating lease liabilities represent leases for office and warehouse space, machinery and equipment, and vehicles, among other items. The Company's finance lease right-of-use assets and finance lease liabilities represent leases for vehicles.
Lease costs recognized on the consolidated statements of operations were as follows:
(in thousands)
 
 
 
Year ended
Lease costs
 
Location in Statement of Operations
 
December 31, 2019
Operating
 
Cost of goods sold
 
$
2,361

 
 
Selling, general and administrative
 
11,775

 
 
Research and development
 
773

 
 
 
 
 
Finance
 
 
 


     Amortization of lease assets
 
Selling, general and administrative
 
8

     Interest on lease liabilities
 
Interest expense, net
 
2

Total lease cost
 
 
 
$
14,919


Total rental expense for all operating leases amounted to $15.7 million and $16.3 million for the years ended December 31, 2018 and 2017, respectively.
Supplemental balance sheet information related to the Company's leases is as follows:
(in thousands)
 
Balance Sheet Location
 
December 31, 2019
Right-of-use assets
 
 
 
 
Operating
 
Other noncurrent assets
 
$
44,407

Finance
 
Property, plant and equipment, net
 
281

 
 
Total lease assets
 
$
44,688

 
 
 
 
 
Lease liabilities
 
 
 
 
Operating
 
Accrued expenses and other liabilities
 
$
11,336

Finance
 
Accrued expenses and other liabilities
 
8

Operating
 
Other noncurrent liabilities
 
34,137

Finance
 
Long-term debt
 
273

 
 
Total lease liabilities
 
$
45,754


The weighted average remaining lease term and the weighted average discount rate for leases is as follows:
 
 
December 31, 2019
Weighted average remaining lease term (years):
 
 
Operating
 
5.8

Finance
 
5.9

Weighted average discount rate:
 
 
Operating
 
3.42
%
Finance
 
4.18
%

The following table reconciles the undiscounted cash flows for leases as of December 31, 2019 to lease liabilities recorded on the consolidated balance sheet:
 
 
Operating
 
Finance
 
 
(in thousands)
 
Leases
 
Leases
 
Total
2020
 
$
14,173

 
$
59

 
$
14,232

2021
 
10,321

 
57

 
10,378

2022
 
6,740

 
55

 
6,795

2023
 
3,889

 
53

 
3,942

2024
 
3,264

 
51

 
3,315

Thereafter
 
12,379

 
41

 
12,420

Total future lease payments
 
50,766

 
316

 
51,082

Less: Interest
 
(5,293
)
 
(35
)
 
(5,328
)
Present value of lease liabilities
 
$
45,473

 
$
281

 
$
45,754

 
 
 
 
 
 
 
Accrued expenses and other liabilities
 
$
11,336

 
$
8

 
$
11,344

Other noncurrent liabilities
 
34,137

 

 
34,137

Long-term debt
 

 
273

 
273

Total lease liabilities
 
$
45,473

 
$
281

 
$
45,754


Future minimum rental payments under noncancelable operating leases as of December 31, 2018 were as follows:
(in thousands)
 
 
Year ending December 31,
 
 
2019
 
$
13,119

2020
 
11,053

2021
 
7,984

2022
 
5,345

2023
 
3,133

Thereafter
 
13,852

Total minimum rental payments
 
$
54,486


Supplemental cash flow information and non-cash activity related to the Company's leases are as follows:
 
 
Year ended
(in thousands)
 
December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows for operating leases
 
$
14,804

Operating cash flows for finance leases
 
2

Financing cash flows for finance leases
 
8

Non-cash right-of-use assets obtained in exchange for lease obligations:
 
 
Operating leases
 
$
9,530

Finance leases
 
289


Leases Leases
The Company's operating lease right-of-use assets and operating lease liabilities represent leases for office and warehouse space, machinery and equipment, and vehicles, among other items. The Company's finance lease right-of-use assets and finance lease liabilities represent leases for vehicles.
Lease costs recognized on the consolidated statements of operations were as follows:
(in thousands)
 
 
 
Year ended
Lease costs
 
Location in Statement of Operations
 
December 31, 2019
Operating
 
Cost of goods sold
 
$
2,361

 
 
Selling, general and administrative
 
11,775

 
 
Research and development
 
773

 
 
 
 
 
Finance
 
 
 


     Amortization of lease assets
 
Selling, general and administrative
 
8

     Interest on lease liabilities
 
Interest expense, net
 
2

Total lease cost
 
 
 
$
14,919


Total rental expense for all operating leases amounted to $15.7 million and $16.3 million for the years ended December 31, 2018 and 2017, respectively.
Supplemental balance sheet information related to the Company's leases is as follows:
(in thousands)
 
Balance Sheet Location
 
December 31, 2019
Right-of-use assets
 
 
 
 
Operating
 
Other noncurrent assets
 
$
44,407

Finance
 
Property, plant and equipment, net
 
281

 
 
Total lease assets
 
$
44,688

 
 
 
 
 
Lease liabilities
 
 
 
 
Operating
 
Accrued expenses and other liabilities
 
$
11,336

Finance
 
Accrued expenses and other liabilities
 
8

Operating
 
Other noncurrent liabilities
 
34,137

Finance
 
Long-term debt
 
273

 
 
Total lease liabilities
 
$
45,754


The weighted average remaining lease term and the weighted average discount rate for leases is as follows:
 
 
December 31, 2019
Weighted average remaining lease term (years):
 
 
Operating
 
5.8

Finance
 
5.9

Weighted average discount rate:
 
 
Operating
 
3.42
%
Finance
 
4.18
%

The following table reconciles the undiscounted cash flows for leases as of December 31, 2019 to lease liabilities recorded on the consolidated balance sheet:
 
 
Operating
 
Finance
 
 
(in thousands)
 
Leases
 
Leases
 
Total
2020
 
$
14,173

 
$
59

 
$
14,232

2021
 
10,321

 
57

 
10,378

2022
 
6,740

 
55

 
6,795

2023
 
3,889

 
53

 
3,942

2024
 
3,264

 
51

 
3,315

Thereafter
 
12,379

 
41

 
12,420

Total future lease payments
 
50,766

 
316

 
51,082

Less: Interest
 
(5,293
)
 
(35
)
 
(5,328
)
Present value of lease liabilities
 
$
45,473

 
$
281

 
$
45,754

 
 
 
 
 
 
 
Accrued expenses and other liabilities
 
$
11,336

 
$
8

 
$
11,344

Other noncurrent liabilities
 
34,137

 

 
34,137

Long-term debt
 

 
273

 
273

Total lease liabilities
 
$
45,473

 
$
281

 
$
45,754


Future minimum rental payments under noncancelable operating leases as of December 31, 2018 were as follows:
(in thousands)
 
 
Year ending December 31,
 
 
2019
 
$
13,119

2020
 
11,053

2021
 
7,984

2022
 
5,345

2023
 
3,133

Thereafter
 
13,852

Total minimum rental payments
 
$
54,486


Supplemental cash flow information and non-cash activity related to the Company's leases are as follows:
 
 
Year ended
(in thousands)
 
December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows for operating leases
 
$
14,804

Operating cash flows for finance leases
 
2

Financing cash flows for finance leases
 
8

Non-cash right-of-use assets obtained in exchange for lease obligations:
 
 
Operating leases
 
$
9,530

Finance leases
 
289


v3.19.3.a.u2
Allowance for Doubtful Accounts
12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Allowance for Doubtful Accounts Allowance for Doubtful Accounts
The activity related to the allowance for doubtful accounts was as follows:
 
Year ended December 31,
(in thousands)
2019
 
2018
 
2017
Balance at beginning of year
$
7,272

 
$
9,975

 
$
12,255

Bad debt expense
573

 
(583
)
 
337

Amount of receivables written off
(2,706
)
 
(1,873
)
 
(3,300
)
Foreign currency translation and other
199

 
(247
)
 
683

Balance at end of year
$
5,338

 
$
7,272

 
$
9,975


v3.19.3.a.u2
Inventories
12 Months Ended
Dec. 31, 2019
Inventory Disclosure [Abstract]  
Inventories Inventories
The components of inventories were as follows:
(in thousands)
December 31,
2019
 
December 31,
2018
Raw materials and supplies
$
87,675

 
$
71,068

Work-in-process
22,024

 
21,763

Finished goods
288,669

 
268,376

Inventories
$
398,368

 
$
361,207


v3.19.3.a.u2
Property, Plant and Equipment, Net
12 Months Ended
Dec. 31, 2019
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net Property, Plant and Equipment, Net
The components of property, plant and equipment, net were as follows:
(in thousands)
December 31,
2019
 
December 31,
2018
Land
$
14,551

 
$
14,515

Buildings and improvements
146,727

 
142,113

Machinery and equipment
171,230

 
160,707

Furniture, computers and equipment
40,143

 
36,405

Computer software
70,458

 
62,517

Construction in progress
25,044

 
19,999

Property, plant and equipment, gross
468,153

 
436,256

Accumulated depreciation and amortization
(236,578
)
 
(207,868
)
Property, plant and equipment, net
$
231,575

 
$
228,388


During the years ended December 31, 2019, 2018 and 2017, software development costs of $11.8 million, $4.1 million and $3.1 million were capitalized. Capitalized software development costs as of December 31, 2019, 2018 and 2017 consisted of software placed into service of $7.2 million, $1.7 million and $2.4 million, respectively, and amounts recorded in construction in progress of $4.6 million, $2.4 million and $0.7 million, respectively. Amortization expense on capitalized software development costs was $6.6 million, $6.3 million and $6.4 million for the years ended December 31, 2019, 2018 and 2017, respectively.
Total depreciation and amortization expense related to property, plant and equipment was $32.4 million, $32.2 million and $31.6 million for the years ended December 31, 2019, 2018 and 2017, respectively.
v3.19.3.a.u2
Goodwill and Identifiable Intangible Assets, Net
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Identifiable Intangible Assets, Net Goodwill and Identifiable Intangible Assets, Net
Goodwill allocated to the Company's reportable segments and changes in the carrying amount of goodwill were as follows:
(in thousands)
Titleist
Golf Balls
 
Titleist
Golf Clubs
 
Titleist
Golf Gear
 
FootJoy
Golf Wear
 
Other
 
Total
Balances at December 31, 2017
$
119,634

 
$
58,101

 
$
14,088

 
$
2,585

 
$
8,995

 
$
203,403

Acquisitions (Note 21)
8,492

 

 

 
1,071

 

 
9,563

Foreign currency translation
(1,931
)
 
(949
)
 
(222
)
 
(43
)
 
(150
)
 
(3,295
)
Balances at December 31, 2018
126,195

 
57,152

 
13,866

 
3,613

 
8,845

 
209,671

Acquisitions (Note 21)

 

 

 

 
4,749

 
4,749

Foreign currency translation
(214
)
 
(104
)
 
(25
)
 
(5
)
 
(16
)
 
(364
)
Balances at December 31, 2019
$
125,981

 
$
57,048

 
$
13,841

 
$
3,608

 
$
13,578

 
$
214,056

 
The net carrying value by class of identifiable intangible assets was as follows:
 
 
December 31, 2019
 
December 31, 2018
(in thousands)
 
Gross
 
Accumulated
Amortization
 
Net Book
Value
 
Gross
 
Accumulated
Amortization
 
Net Book
Value
Indefinite-lived:
 
 
 
 
 
 
 
 
 
 
 
 
Trademarks
 
$
429,051

 
$

 
$
429,051

 
$
429,051

 
$

 
$
429,051

Amortizing:
 
 
 
 
 
 
 
 
 
 
 
 
Trademarks
 
5,503

 
(492
)
 
5,011

 
1,600

 
(50
)
 
1,550

Completed technology
 
74,715

 
(46,370
)
 
28,345

 
73,900

 
(41,017
)
 
32,883

Customer relationships
 
27,127

 
(8,923
)
 
18,204

 
22,023

 
(7,250
)
 
14,773

Licensing fees and other
 
32,666

 
(32,483
)
 
183

 
32,384

 
(32,384
)
 

Total intangible assets
 
$
569,062

 
$
(88,268
)
 
$
480,794

 
$
558,958

 
$
(80,701
)
 
$
478,257


As a result of an acquisition completed during the year ended December 31, 2019, the Company recorded additions to identifiable intangible assets including amortizing trademarks, completed technology, customer relationships and other intangible assets of $3.9 million, $0.8 million, $5.1 million and $0.2 million, respectively (Note 21). The Company expects to amortize the acquired amortizing trademarks, completed technology, customer relationships and other intangible assets over an eight, six, seven and five year period, respectively.
As a result of acquisitions completed during the year ended December 31, 2018, the Company recorded additions to identifiable intangible assets including indefinite-lived trademarks, amortizing trademarks and customer relationships of $1.0 million, $1.6 million and $2.7 million, respectively (Note 21). The Company expects to amortize the acquired amortizing trademarks and customer relationships over an eight year period.
During the years ended December 31, 2019, 2018 and 2017, no impairment charges were recorded to goodwill or indefinite-lived intangible assets.
Identifiable intangible asset amortization expense was $7.5 million, $8.0 million and $9.3 million for the years ended December 31, 2019, 2018 and 2017, respectively, of which $1.4 million and $2.7 million associated with certain licensing fees was included in cost of goods sold for the years ended December 31, 2018 and 2017, respectively.
Identifiable intangible asset amortization expense for each of the next five fiscal years and beyond is expected to be as follows:
(in thousands)
 
Year ending December 31,
 
2020
$
7,835

2021
7,835

2022
7,835

2023
7,835

2024
7,815

Thereafter
12,588

Total
$
51,743


v3.19.3.a.u2
Product Warranty
12 Months Ended
Dec. 31, 2019
Product Warranties Disclosures [Abstract]  
Product Warranty Product Warranty
The activity related to the Company’s warranty obligation for accrued warranty expense was as follows:
 
Year ended December 31, 
(in thousands)
2019
 
2018
 
2017
Balance at beginning of year
$
3,331

 
$
3,823

 
$
3,526

Provision
6,863

 
5,909

 
5,801

Claims paid/costs incurred
(6,481
)
 
(6,315
)
 
(5,653
)
Foreign currency translation and other
335

 
(86
)
 
149

Balance at end of year
$
4,048

 
$
3,331

 
$
3,823


v3.19.3.a.u2
Debt and Financing Arrangements
12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Debt and Financing Arrangements Debt and Financing Arrangements
The Company’s debt and finance lease obligations were as follows:
(in thousands)
December 31, 2019
 
December 31,
2018
Term loan facility
$
350,000

 
$

Term loan A facility

 
330,469

Delayed draw term loan A facility

 
54,375

Revolving credit facility
50,321

 

Other short-term borrowings
3,802

 
920

Finance lease obligations
273

 

Debt issuance costs
(2,072
)
 
(2,266
)
Total
402,324

 
383,498

Less: short-term debt and current portion of long-term debt
71,623

 
36,545

Total long-term debt and finance lease obligations
$
330,701

 
$
346,953


The debt issuance costs of $2.1 million as of December 31, 2019 relates to the term loan facility. The debt issuance costs of $2.3 million as of December 31, 2018 relates to the term loan A facility and delayed draw term loan A facility.
Restated Credit Agreement
On December 23, 2019, the Company entered into an amended and restated credit agreement (the “restated credit agreement”) arranged by Wells Fargo Bank, National Association (“Wells Fargo”) to amend various terms of the Company’s credit agreement, dated as of April 27, 2016, as amended, for its senior secured credit facilities with Wells Fargo, as administrative agent, and the other lenders and agents party thereto (the “senior secured credit facility”). The restated credit agreement, together with related security, guarantee and other agreements, is referred to as the “restated credit facility.”
The restated credit facility provides for (x) a $350.0 million term loan facility maturing December 23, 2024 and (y) a $400.0 million revolving credit facility maturing December 23, 2024, including a $50.0 million letter of credit sublimit, a $50.0 million swing line sublimit, a C$50.0 million sublimit available for revolving credit borrowings by Acushnet Canada Inc., a £45.0 million sublimit available for revolving credit borrowings by Acushnet Europe Ltd. and a $200.0 million sublimit for borrowings in Canadian dollars, euros, pounds sterling, Japanese yen and other currencies agreed to by the lenders under the revolving credit facility. The revolving credit facility and term loan facility are collateralized by certain assets, including inventory, accounts receivable, fixed assets and intangible assets of the Company.
The Company has the right under the restated credit facility to request additional term loans and/or increases to the revolving credit facility in an aggregate principal amount not to exceed (i) $225.0 million plus (ii) an unlimited amount so long as the Net Average Secured Leverage Ratio (as defined in the restated credit agreement) does not exceed 2.25:1.00 on a pro forma basis. The lenders under the restated credit facility will not be under any obligation to provide any such additional term loans or increases to the revolving credit facility, and the incurrence of any additional term loans or increases to the revolving credit facility is subject to customary conditions precedent.
Borrowings under the restated credit facility bear interest at a rate per annum equal to, at the applicable Borrower’s option, either (a) a base rate determined by reference to the highest of (1) the prime rate of Wells Fargo, (2) the federal funds effective rate plus 0.50% and (3) a Eurodollar Rate, subject to certain adjustments, plus 1.00% or (b) a Eurodollar Rate (or, in the case of Canadian borrowings, a Canadian Dollar Offered Rate), subject to certain adjustments, in each case, plus an applicable margin. The restated credit agreement reduced the applicable margin by 0.25%. Under the restated credit agreement, the applicable margin is 0.00% to 0.75% for base rate borrowings and 1.00% to 1.75% for Eurodollar rate or Canadian Dollar Offered Rate borrowings, in each case, depending on the Net Average Total Leverage Ratio (as defined in the restated credit agreement). In addition, the Company is required to pay a commitment fee on any unutilized commitments under the revolving credit facility. The restated credit agreement reduced the commitment fee rate payable in respect of unused portions of the revolving credit facility by 0.05% to 0.15% to 0.30% per annum, depending on the Net Average Total Leverage Ratio. The initial commitment fee rate is 0.20% per annum. The Company is also required to pay customary letter of credit fees.
Interest on borrowings under the restated credit agreement is payable (1) on the last day of any interest period with respect to Eurodollar borrowings with an applicable interest period of three months or less, (2) every three months with respect to Eurodollar borrowings with an interest period of greater than three months or (3) on the last business day of each March, June, September and December with respect to base rate borrowings and swing line borrowings.
The Company is required to make principal payments on the loans under the term loan facility in quarterly installments in an aggregate annual amount equal to 5.00%.
The restated credit agreement requires the Company to prepay outstanding term loans, subject to certain exceptions, with:
100% of the net cash proceeds of all non‑ordinary course asset sales or other dispositions of property by the Company and its restricted subsidiaries (including insurance and condemnation proceeds, subject to de minimis thresholds), (1) if the Company does not reinvest those net cash proceeds in assets to be used in its business or to make certain other permitted investments, within 12 months of the receipt of such net cash proceeds or (2) if the Company commits to reinvest such net cash proceeds within 12 months of the receipt thereof, but does not reinvest such net cash proceeds within 18 months of the receipt thereof; and
100% of the net proceeds of any issuance or incurrence of debt by the Company or any of its restricted subsidiaries, other than debt permitted under the credit agreement.
The foregoing mandatory prepayments are used to reduce the installments of principal in such order: first, to prepay outstanding loans under the term loan facility and any incremental term loans on a pro rata basis in direct order of maturity and second, to prepay outstanding loans under the revolving credit facility.
The Company may voluntarily repay outstanding loans under the credit agreement at any time without premium or penalty, other than customary “breakage” costs with respect to Eurodollar loans.
The financial covenants were modified under the restated credit facility. The maximum Net Average Total Leverage Ratio was increased to 3.50:1.00, which is subject to increase to 3.75:1.00 in connection with certain acquisitions, and the minimum Consolidated Interest Coverage Ratio (as defined in the restated credit agreement) was decreased to 3.00:1.00. In addition the restated credit facility modified certain covenant baskets.
The initial net proceeds from the restated credit facility were used to repay all of the outstanding debt under the Company's previously existing senior secured credit facility, as well as, payments of accrued interest and closing fees. Immediately prior to repayment, the aggregate amounts outstanding were approximately $309.4 million, $48.8 million and $44.0 million related to the term loan A facility, delayed draw term loan A facility and revolving credit facility, respectively. In connection with amending its credit agreement, the Company incurred fees and expenses of approximately $2.7 million, of which approximately $2.3 million was capitalized as debt issuance costs included in other assets and long-term debt on the consolidated balance sheet. The remaining $0.4 million was included in interest expense, net for the year ended December 31, 2019. In addition, the redemption of the previously existing senior secured credit facility resulted in interest expense, net of approximately $0.4 million for the year ended December 31, 2019.

The interest rate applicable to the term loan facility as of December 31, 2019 was 3.04%. The weighted average interest rate applicable to the outstanding borrowings under the revolving credit facility was 3.54% as of December 31, 2019.

As of December 31, 2019, the Company had available borrowings under its revolving credit facility of $338.5 million after giving effect to $11.2 million of outstanding letters of credit.
Senior Secured Credit Facility
On April 27, 2016, the Company entered into a senior secured credit facilities agreement arranged by Wells Fargo. As amended, this agreement provided for (i) a $275.0 million multi‑currency revolving credit facility, including a $25.0 million letter of credit sublimit, a $25.0 million swing line sublimit, a C$35.0 million sublimit for Acushnet Canada, Inc., a £30.0 million sublimit for Acushnet Europe Limited and an alternative currency sublimit of $100.0 million for borrowings in Canadian dollars, euros, pounds sterling and Japanese yen (“revolving credit facility”), (ii) a $375.0 million term loan A facility and (iii) a $100.0 million delayed draw term loan A facility.
During the first quarter of 2017, the Company drew down $100.0 million on the delayed draw term loan A facility and $47.8 million under the revolving credit facility to substantially fund the equity appreciation rights (“EAR") plan payout.
In connection with amending the senior secured credit facilities during the second quarter of 2018, the Company incurred approximately $0.4 million in fees and expenses, which were initially recorded as debt issuance costs and recognized as interest expense over the term of the senior secured credit facilities.
The interest rate applicable to the term loan A facility and delayed draw term loan A facility as of December 31, 2018 was 4.02%.
Debt Covenants
The restated credit agreement contains a number of covenants that, among other things, restrict the ability of the Company, subject to certain exceptions, to incur, assume, or permit to exist additional indebtedness or guarantees; incur liens; make investments and loans; pay dividends, make payments on, or redeem or repurchase capital stock or make prepayments, repurchases or redemptions of certain indebtedness; engage in mergers, liquidations, dissolutions, asset sales, and other non-ordinary course dispositions (including sale leaseback transactions); amend or otherwise alter terms of certain indebtedness or certain other agreements; enter into agreements limiting subsidiary distributions or containing negative pledge clauses; engage in certain transactions with affiliates; alter the nature of the business that it conducts or change its fiscal year or accounting practices. Certain exceptions to these covenants are determined based on ratios that are calculated in part using the calculation of Adjusted EBITDA. The restated credit agreement also restricts the ability of Acushnet Holdings Corp. to engage in certain mergers or consolidations or engage in any activities other than permitted activities. The Company’s restated credit agreement contains certain customary affirmative and restrictive covenants, including, among others, financial covenants based on the Company’s leverage and interest coverage ratios. The restated credit agreement includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations to be immediately due and payable.
As of December 31, 2019, the Company was in compliance with all covenants under the restated credit agreement.
Change of Control
A change of control is an event of default under the restated credit agreement which could result in the acceleration of all outstanding indebtedness and the termination of all commitments under the restated credit agreement and would allow the lenders under the restated credit agreement to enforce their rights with respect to the collateral granted. A change of control occurs if any person (other than certain permitted parties, including Fila) becomes the beneficial owner of 35% or more of the outstanding common stock of the Company. 
Other Short-Term Borrowings
The Company has certain unsecured local credit facilities available through its subsidiaries. The weighted average interest rate applicable to the outstanding borrowings was 2.29% and 3.25% as of December 31, 2019 and 2018, respectively. As of December 31, 2019, the Company had available borrowings remaining under these local credit facilities of $60.1 million.
Letters of Credit
As of December 31, 2019, there were outstanding letters of credit related to agreements, including the Company's restated credit facility, totaling $14.8 million of which $11.6 million was secured. As of December 31, 2018, there were outstanding letters of credit related to agreements, including the Company's senior secured credit facility, totaling $15.5 million of which $12.4 million was secured. These agreements provided a maximum commitment for letters of credit of $59.8 million and $29.2 million as of December 31, 2019 and 2018, respectively.
Payments of Debt Obligations due by Period
As of December 31, 2019, principal payments due on outstanding long-term debt obligations were as follows:
(in thousands)
 
Year ending December 31,
 
2020
$
17,500

2021
17,500

2022
17,500

2023
17,500

2024
280,000

Total
$
350,000


v3.19.3.a.u2
Derivative Financial Instruments
12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company principally uses derivative financial instruments to reduce the impact of changes in foreign currency exchange rates and interest rate fluctuations. The principal derivative financial instruments the Company enters into are foreign exchange forward contracts and interest rate swaps. The Company does not enter into derivative financial instrument contracts for trading or speculative purposes.
Foreign Exchange Derivative Instruments
Foreign exchange derivative instruments are foreign exchange forward contracts primarily used to reduce the impact of currency fluctuations related to inventory purchases not denominated in the functional currency of the non-U.S. subsidiary, thereby limiting currency risk that would otherwise result from changes in exchange rates. These instruments are designated as cash flow hedges. The periods of the foreign exchange forward contracts correspond to the periods of the forecasted transactions, which do not exceed 24 months subsequent to the latest balance sheet date. The primary foreign exchange forward contracts pertain to the U.S. dollar, the Japanese yen, the British pound sterling, the Canadian dollar, the Korean won and the euro. The gross U.S. dollar equivalent notional amount outstanding of all foreign exchange forward contracts designated under hedge accounting as of December 31, 2019 and 2018 was $287.9 million and $312.8 million, respectively.
The Company also enters into foreign exchange forward contracts to mitigate the change in fair value of specific assets and liabilities which do not qualify as hedging instruments under U.S. GAAP. These undesignated instruments are recorded at fair value as a derivative asset or liability with the corresponding change in fair value recognized in selling, general and administrative expense. There were no outstanding foreign exchange forward contracts not designated under hedge accounting as of December 31, 2019 and 2018.
Interest Rate Derivative Instruments
The Company enters into interest rate swap contracts to reduce the impact of variability in interest rates. Under the contracts, the Company pays fixed and receives variable rate interest, in effect converting a portion of its variable rate debt to fixed rate debt. The interest rate swap contracts are accounted for as cash flow hedges. As of December 31, 2019 and 2018, the notional value of the Company's outstanding interest rate swap contracts was $160.0 million and $185.0 million, respectively.
Impact on Financial Statements
The fair value of hedge instruments recognized on the consolidated balance sheets was as follows:
(in thousands)
 
 
 
December 31,
2019
 
December 31,
2018
Balance Sheet Location
 
Hedge Instrument Type
 
 
Other current assets
 
Foreign exchange forward
 
$
4,549

 
$
6,116

Other noncurrent assets
 
Foreign exchange forward
 
1,109

 
1,015

Accrued expenses and other liabilities
 
Foreign exchange forward
 
2,561

 
578

 
 
Interest rate swap
 
1,862

 
526

Other noncurrent liabilities
 
Foreign exchange forward
 
115

 
161

 
 
Interest rate swap
 
789

 
925


The hedge instrument gain (loss) recognized in accumulated other comprehensive loss, net of tax was as follows:
 
Gain (Loss) Recognized in
Other Comprehensive Loss
 
Year ended December 31,
(in thousands)
2019
 
2018
 
2017
Type of hedge
 
 
 
 
 
Foreign exchange forward
$
5,490

 
$
8,148

 
$
(15,558
)
Interest rate swap
(2,185
)
 
(1,926
)
 

 
$
3,305

 
$
6,222

 
$
(15,558
)
 
Gains and losses on derivative instruments designated as cash flow hedges are reclassified from accumulated other comprehensive loss, net of tax, at the time the forecasted transaction impacts the statement of operations. Based on the current valuation, during the next 12 months the Company expects to reclassify a net gain of $3.0 million related to foreign exchange derivative instruments from accumulated other comprehensive loss, net of tax into cost of goods sold and a net loss of $1.9 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 17.
The hedge instrument gain (loss) recognized on the consolidated statements of operations was as follows:
 
 
Year ended December 31,
(in thousands)
 
2019
 
2018
 
2017
Location of gain (loss) in statement of operations
 
 
 
 
 
 
Foreign exchange forward:
 
 
 
 
 
 
Cost of goods sold
 
$
8,465

 
$
(1,410
)
 
$
1,329

Selling, general and administrative (1)
 
204

 
1,665

 
(2,732
)
Total
 
$
8,669

 
$
255

 
$
(1,403
)
 
 
 
 
 
 
 
Interest Rate Swap:
 
 
 
 
 
 
Interest expense, net
 
$
(989
)
 
$
(476
)
 
$

Total
 
$
(989
)
 
$
(476
)
 
$


_________________________________ 
(1) Relates to gains (losses) on foreign exchange forward contracts derived from previously designated cash flow hedges.
Credit Risk
The Company enters into derivative contracts with major financial institutions with investment grade credit ratings and is exposed to credit losses in the event of non-performance by these financial institutions. This credit risk is generally limited to the unrealized gains in the derivative contracts. However, the Company monitors the credit quality of these financial institutions and considers the risk of counterparty default to be minimal.
v3.19.3.a.u2
Fair Value Measurements
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 were as follows:
 
Fair Value Measurements as of
 
 
 
December 31, 2019 using:
 
 
(in thousands)
Level 1
 
Level 2
 
Level 3
 
Balance Sheet Location
Assets
 
 
 
 
 
 
 
Rabbi trust
$
6,070

 
$

 
$

 
Other current assets
Foreign exchange derivative instruments

 
4,549

 

 
Other current assets
Deferred compensation program assets
870

 

 

 
Other noncurrent assets
Foreign exchange derivative instruments

 
1,109

 

 
Other noncurrent assets
Total assets
$
6,940

 
$
5,658

 
$

 
 
Liabilities
 
 
 
 
 
 
 
Foreign exchange derivative instruments
$

 
$
2,561

 
$

 
Accrued expenses and other liabilities
Interest rate swap derivative instrument

 
1,862

 

 
Accrued expenses and other liabilities
Deferred compensation program liabilities
870

 

 

 
Other noncurrent liabilities
Foreign exchange derivative instruments

 
115

 

 
Other noncurrent liabilities
Interest rate swap derivative instrument

 
789

 

 
Other noncurrent liabilities
Total liabilities
$
870

 
$
5,327

 
$

 
 
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 were as follows:
 
Fair Value Measurements as of
 
 
 
December 31, 2018 using:
 
 
(in thousands)
Level 1
 
Level 2
 
Level 3
 
Balance Sheet Location
Assets
 
 
 
 
 
 
 
Rabbi trust
$
8,415

 
$

 
$

 
Other current assets
Foreign exchange derivative instruments

 
6,116

 

 
Other current assets
Deferred compensation program assets
1,222

 

 

 
Other noncurrent assets
Foreign exchange derivative instruments

 
1,015

 

 
Other noncurrent assets
Total assets
$
9,637

 
$
7,131

 
$

 
 
Liabilities
 
 
 
 
 
 
 
Foreign exchange derivative instruments
$

 
$
578

 
$

 
Accrued expenses and other liabilities
Interest rate swap derivative instruments

 
526

 

 
Accrued expenses and other liabilities
Deferred compensation program liabilities
1,222

 

 

 
Other noncurrent liabilities
Foreign exchange derivative instruments

 
161

 

 
Other noncurrent liabilities
Interest rate swap derivative instruments

 
925

 

 
Other noncurrent liabilities
Total liabilities
$
1,222

 
$
2,190

 
$

 
 

Rabbi trust assets are used to fund certain retirement obligations of the Company. The assets underlying the Rabbi trust are equity and fixed income exchange‑traded funds.
Deferred compensation program assets and liabilities represent a program where select employees could defer compensation until termination of employment. Effective July 29, 2011, this program was amended to cease all employee compensation deferrals and provided for the distribution of all previously deferred employee compensation. The program remains in effect with respect to the value attributable to the employer match contributed prior to July 29, 2011.
Foreign exchange derivative instruments are foreign exchange forward contracts primarily used to limit currency risk that would otherwise result from changes in exchange rates (Note 11). The Company uses the mid‑price of foreign exchange forward rates as of the close of business on the valuation date to value each foreign exchange forward contract at each reporting period.
Interest rate derivative instruments are contracts used to hedge the interest rate fluctuations of the Company's variable rate debt (Note 11). The valuation for the interest rate swap is calculated as the net of the discounted future cash flows of the pay and receive legs of the swap. Mid-market interest rates on the valuation date are used to create the forward curve for floating legs and discount curve.
v3.19.3.a.u2
Pension and Other Postretirement Benefits
12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits
The Company has various pension and post-employment plans which provide for payment of benefits to certain eligible employees, mainly commencing between the ages of 50 and 65, and for payment of certain disability benefits. After meeting certain qualifications, eligible employees acquire a vested right to future benefits. The benefits payable under the plans are generally determined on the basis of an employee's length of service and/or earnings. Employer contributions to the plans are made, as necessary, to ensure legal funding requirements are satisfied. The Company may make contributions in excess of the legal funding requirements.
The Company provides postretirement healthcare benefits to certain retirees. Many employees and retirees outside of the United States are covered by government sponsored healthcare programs.
The following table presents the change in benefit obligation, change in plan assets and funded status for the Company's defined benefit and postretirement benefit plans for the year ended December 31, 2019:
(in thousands)
Pension
Benefits
(Underfunded)
 
Pension
Benefits
(Overfunded)
 
Postretirement
Benefits
Change in projected benefit obligation ("PBO")
 
 
 
 
 
Benefit obligation at December 31, 2018
$
274,821

 
$
25,629

 
$
14,412

Service cost
8,839

 

 
574

Interest cost
10,208

 
729

 
557

Actuarial loss
47,077

 
2,628

 
2,288

Curtailments
(116
)
 

 

Settlements
(27,438
)
 

 

Plan amendments
1,464

 

 

Participants’ contributions

 

 
498

Benefit payments
(2,605
)
 
(639
)
 
(1,504
)
Foreign currency translation
290

 
742

 

Projected benefit obligation at December 31, 2019
312,540

 
29,089

 
16,825

Accumulated benefit obligation at December 31, 2019
282,986

 
27,412

 
16,825

Change in plan assets

 

 
 
Fair value of plan assets at December 31, 2018
176,044

 
40,700

 

Return on plan assets
33,799

 
1,772

 

Employer contributions
24,540

 

 
1,006

Participants’ contributions

 

 
498

Settlements
(27,438
)
 

 

Benefit payments
(2,605
)
 
(639
)
 
(1,504
)
Foreign currency translation
9

 
1,122

 

Fair value of plan assets at December 31, 2019
204,349

 
42,955

 

Funded status (fair value of plan assets less PBO)
$
(108,191
)
 
$
13,866

 
$
(16,825
)
The following table presents the change in benefit obligation, change in plan assets and funded status for the Company's defined benefit and postretirement benefit plans for the year ended December 31, 2018:
(in thousands)
Pension
Benefits
(Underfunded)
 
Pension
Benefits
(Overfunded)
 
Postretirement
Benefits
Change in projected benefit obligation
 
 
 
 
 
Benefit obligation at December 31, 2017
$
316,882

 
$
35,468

 
$
16,052

Service cost
9,067

 

 
657

Interest cost
11,040

 
857

 
490

Actuarial gain
(22,436
)
 
(5,255
)
 
(1,600
)
Curtailments
(177
)
 

 

Settlements
(36,244
)
 
(3,507
)
 

Plan amendments

 
285

 

Participants’ contributions

 

 
378

Benefit payments
(2,990
)
 
(580
)
 
(1,565
)
Foreign currency translation
(321
)
 
(1,639
)
 

Projected benefit obligation at December 31, 2018
274,821

 
25,629

 
14,412

Accumulated benefit obligation at December 31, 2018
240,270

 
23,821

 
14,412

Change in plan assets

 

 

Fair value of plan assets at December 31, 2017
183,093

 
50,767

 

Return on plan assets
(11,863
)
 
(3,846
)
 

Employer contributions
44,105

 
441

 
1,187

Participants’ contributions

 

 
378

Settlements
(36,244
)
 
(3,507
)
 

Benefit payments
(2,990
)
 
(580
)
 
(1,565
)
Foreign currency translation
(57
)
 
(2,575
)
 

Fair value of plan assets at December 31, 2018
176,044

 
40,700

 

Funded status (fair value of plan assets less PBO)
$
(98,777
)
 
$
15,071

 
$
(14,412
)

The amount of pension and postretirement assets and liabilities recognized on the consolidated balance sheets was as follows:
 
Pension Benefits
 
Postretirement Benefits
 
December 31, 
 
December 31, 
(in thousands)
2019
 
2018
 
2019
 
2018
Other noncurrent assets
$
13,866

 
$
15,071

 
$

 
$

Accrued compensation and benefits
(5,357
)
 
(10,391
)
 
(807
)
 
(721
)
Accrued pension and other postretirement benefits
(102,834
)
 
(88,386
)
 
(16,018
)
 
(13,691
)
Net liability recognized
$
(94,325
)
 
$
(83,706
)
 
$
(16,825
)
 
$
(14,412
)

The amounts in accumulated other comprehensive loss, net of tax on the consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
Year ended December 31, 
 
Year ended December 31, 
(in thousands)
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Net actuarial gain (loss) at beginning of year
$
(39,125
)
 
$
(44,892
)
 
$
(33,736
)
 
$
12,315

 
$
12,392

 
$
8,055

Actuarial gain (loss)
(27,123
)
 
(882
)
 
(14,554
)
 
(2,288
)
 
1,600

 
5,075

Prior service cost
(1,464
)
 
(285
)
 

 

 

 

Curtailment impact

 
(97
)
 

 

 

 

Settlement impact
4,324

 
4,982

 
2,740

 

 

 

Amortization of actuarial (gain) loss
1,530

 
1,687

 
804

 
(1,436
)
 
(1,540
)
 
(601
)
Amortization of prior service cost (credit)
247

 
175

 
175

 
(137
)
 
(137
)
 
(137
)
Foreign currency translation
(190
)
 
187

 
(321
)
 

 

 

Net actuarial gain (loss) at end of year
$
(61,801
)
 
$
(39,125
)
 
$
(44,892
)
 
$
8,454

 
$
12,315

 
$
12,392


The expected prior service cost (credit) that will be amortized from accumulated other comprehensive loss, net of tax, into net periodic benefit cost in the next fiscal year is a cost of $0.3 million for the pension plans and a credit of $0.1 million for the postretirement plans. The expected actuarial (gain) loss that will be amortized from accumulated other comprehensive loss, net of tax, into net periodic benefit cost in the next fiscal year is a loss of $3.8 million for the pension benefit plans and a gain of $0.9 million for the postretirement benefit plans.
Components of net periodic benefit cost were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
Year ended December 31, 
 
Year ended December 31, 
(in thousands)
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Components of net periodic benefit cost
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
8,839

 
$
9,067

 
$
9,217

 
$
574

 
$
657

 
$
955

Interest cost
10,937

 
11,897

 
11,832

 
557

 
490

 
713

Expected return on plan assets
(12,987
)
 
(13,041
)
 
(12,006
)
 

 

 

Curtailment income
(118
)
 
(97
)
 

 

 

 

Settlement expense
4,324

 
4,982

 
2,740

 

 

 

Amortization of net (gain) loss
1,530

 
1,687

 
804

 
(1,436
)
 
(1,540
)
 
(601
)
Amortization of prior service cost (credit)
247

 
175

 
175

 
(137
)
 
(137
)
 
(137
)
Net periodic benefit cost (credit)
$
12,772

 
$
14,670

 
$
12,762

 
$
(442
)
 
$
(530
)
 
$
930


The non-service cost components of net periodic benefit cost (credit) are included in other expense, net in the consolidated statement of operations (Note 18).  
The weighted average assumptions used to determine benefit obligations at December 31, 2019 and 2018 were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
2019
 
2018
 
2019
 
2018
Discount rate
3.24
%
 
4.25
%
 
3.12
%
 
4.27
%
Rate of compensation increase
3.97
%
 
4.00
%
 
N/A

 
N/A

The weighted average assumptions used to determine net periodic benefit cost (credit) for the years ended December 31, 2019, 2018 and 2017 were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Discount rate
4.25
%
 
3.62
%
 
4.17
%
 
4.27
%
 
3.61
%
 
4.08
%
Expected long-term rate of return on plan assets
5.84
%
 
5.77
%
 
5.77
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
4.00
%
 
4.01
%
 
4.02
%
 
N/A

 
N/A

 
N/A


The assumed healthcare cost trend rates used to determine benefit obligations and net periodic benefit cost (credit) for postretirement benefits as of and for the years ended December 31, 2019, 2018 and 2017 were as follows:
 
2019
 
2018
 
2017
Healthcare cost trend rate assumed for next year
6.03%/8.44%

 
6.25%/9.00%

 
5.50%/8.50%

Rate that the cost trend rate is assumed to decline
(the ultimate trend rate)
4.50
%
 
4.50
%
 
4.50
%
Year that the rate reaches the ultimate trend rate
2027

 
2027

 
2024


Assumed healthcare cost trend rates have a significant effect on the amounts reported for the postretirement benefits. A one-percentage-point change in assumed healthcare cost trend rates would have the following effects:
 
2019
 
2018
(in thousands)
One-Percentage
Point Increase
 
One-Percentage
Point Decrease
 
One-Percentage
Point Increase
 
One-Percentage
Point Decrease
Effect on total of service cost and interest cost
$
68

 
$
(61
)
 
$
72

 
$
(64
)
Effect on projected benefit obligation
710

 
(642
)
 
632

 
(572
)

Plan Assets
Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2019 were as follows:
(in thousands)
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Asset category
 
 
 
 
 
 
 
Individual securities
 
 
 
 
 
 
 
Fixed income
$
1,682

 
$

 
$
1,682

 
$

Commingled funds
 
 
 
 
 
 
 
Measured at net asset value
245,622

 

 

 

 
$
247,304

 
$

 
$
1,682

 
$

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2018 were as follows:
(in thousands)
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Asset category
 
 
 
 
 
 
 
Individual securities
 
 
 
 
 
 
 
Fixed income
$
1,682

 
$

 
$
1,682

 
$

Commingled funds
 
 
 
 
 
 
 
Measured at net asset value
215,062

 

 

 

 
$
216,744

 
$

 
$
1,682

 
$


Pension assets include fixed income securities and commingled funds. Fixed income securities are valued at daily closing prices or institutional mid-evaluation prices provided by independent industry-recognized pricing sources. Commingled funds are not traded in active markets with quoted prices and as a result, are valued using the net asset values provided by the administrator of the fund. The investments underlying the net asset values are based on quoted prices traded in active markets. In accordance with ASU 2015-7, “Fair Value Measurement: Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)”, the Company has elected the practical expedient to exclude assets measured at net asset value from the fair value hierarchy.
The Company's investment strategy is to optimize investment returns through a diversified portfolio of investments, taking into consideration underlying plan liabilities and asset volatility. Asset allocations are based on the underlying liability structure and local regulations. All retirement asset allocations are reviewed periodically to ensure the allocation meets the needs of the liability structure.
Master trusts were established to hold the assets of the Company's U.S. defined benefit plan. During the year ended December 31, 2019, the U.S. defined benefit plan asset allocation of these trusts targeted a return-seeking investment allocation of 57% to 72% and a liability-hedging investment allocation of 28% to 43%. During the year ended December 31, 2018, the U.S. defined benefit plan asset allocation of these trusts targeted a return-seeking investment allocation of 50% to 76% and a liability-hedging investment allocation of 24% to 50%. Return-seeking investments include equities, real estate, high yield bonds and other instruments. Liability-hedging investments include assets such as corporate and government fixed income securities.
The Company's future expected blended long-term rate of return on plan assets of 5.01% is determined based on long-term historical performance of plan assets, current asset allocation, and projected long-term rates of return.
Estimated Contributions
The Company expects to make pension contributions of approximately $20.6 million during 2020 based on current assumptions as of December 31, 2019.
Estimated Future Retirement Benefit Payments
The following retirement benefit payments, which reflect expected future service, are expected to be paid as follows:
(in thousands)
Pension
Benefits
 
Postretirement
Benefits
Year ending December 31,
 
 
 
2020
$
23,308

 
$
807

2021
22,808

 
981

2022
23,017

 
1,108

2023
26,913

 
1,165

2024
27,333

 
1,290

Thereafter
144,095

 
6,989

 
$
267,474

 
$
12,340


The estimated future retirement benefit payments noted above are estimates and could change significantly based on differences between actuarial assumptions and actual events and decisions related to lump sum distribution options that are available to participants in certain plans.
International Plans
Pension coverage for certain eligible employees of the Company's international subsidiaries is provided, to the extent deemed appropriate, through separate defined benefit pension plans. The international defined benefit pension plans are included in the tables above. As of December 31, 2019 and 2018, the international pension plans had total projected benefit obligations of $48.8 million and $43.9 million, respectively, and fair values of plan assets of $45.1 million and $44.0 million, respectively. The majority of the plan assets are invested in equity securities. The net periodic benefit cost related to international plans was $0.9 million, $0.4 million and $0.9 million for the years ended December 31, 2019, 2018 and 2017, respectively. The expected prior service cost that will be amortized from accumulated other comprehensive loss, net of tax, into net periodic benefit cost in the next fiscal year is $0.1 million. The expected actuarial loss that will be amortized from accumulated other comprehensive loss, net of tax, into net periodic benefit cost in the next fiscal year is $0.1 million.
Defined Contribution Plans
The Company sponsors a number of defined contribution plans and company contributions related to these plans are determined under various formulas. Company contributions to defined contribution plans amounted to $16.3 million, $16.5 million and $13.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.
v3.19.3.a.u2
Income Taxes
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of income before income taxes were as follows:
 
Year ended December 31, 
(in thousands)
2019
 
2018
 
2017
Domestic operations
$
70,632

 
$
54,003

 
$
61,158

Foreign operations
94,533

 
96,301

 
90,518

Income before income taxes
$
165,165

 
$
150,304

 
$
151,676


Income tax expense/ (benefit) was as follows:
 
Year ended December 31, 
(in thousands)
2019
 
2018
 
2017
Current expense (benefit)
 
 
 
 
 
United States
$
1,121

 
$
1,795

 
$
(906
)
Foreign
31,005

 
29,896

 
28,109

Current income tax expense
32,126

 
31,691

 
27,203

Deferred expense (benefit)
 
 
 
 
 
United States
9,539

 
16,222

 
21,189

Foreign
(1,065
)
 
(681
)
 
83

Deferred income tax expense
8,474

 
15,541

 
21,272

Total income tax expense
$
40,600

 
$
47,232

 
$
48,475


The following table represents a reconciliation of income taxes computed at the federal statutory income tax rate of 21% for 2019, 21% for 2018, and 35% for 2017 to income tax expense as reported:
 
Year ended December 31, 
(in thousands)
2019
 
2018
 
2017
Income tax expense computed at federal statutory income tax rate
$
34,685

 
$
31,564

 
$
53,086

Foreign taxes, net of credits
714

 
13,316

 
(16,840
)
Impact of the 2017 Tax Act

 
10,801

 
12,619

Net adjustments for uncertain tax positions
799

 
771

 
508

State and local taxes
1,832

 
2,349

 
1,313

Equity appreciation rights

 

 
(765
)
Nondeductible expenses
1,179

 
962

 
1,407

Valuation allowance
2,882

 
(10,038
)
 
90

Tax credits
(607
)
 
(2,800
)
 
(3,240
)
Miscellaneous other, net
(884
)
 
307

 
297

Income tax expense as reported
$
40,600

 
$
47,232

 
$
48,475

Effective income tax rate
24.6
%
 
31.4
%
 
32.0
%

The 2017 Tax Act was signed into law on December 22, 2017. The 2017 Tax Act significantly revised the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, imposing a mandatory one-time tax (“Transition Tax”) on accumulated earnings of foreign subsidiaries as of 2017, introducing new tax regimes, and changing how foreign earnings are subject to U.S. tax. The 2017 Tax Act also enhanced and extended through 2026 the option to claim accelerated depreciation deductions on qualified property. In accordance with the 2017 Tax Act, the Company recorded a provisional tax expense of approximately $7.8 million in the fourth quarter of 2017, the period in which the legislation was enacted. This amount was primarily comprised of the remeasurement of federal net deferred tax assets resulting from the permanent reduction in the U.S. statutory corporate tax rate to 21% from 35% of approximately $4.0 million, the Transition Tax on the accumulated earnings of foreign subsidiaries of the Company of approximately $8.6 million, offset by the release of the deferred tax liability previously recorded on unremitted earnings of $4.8 million.

Additionally, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the 2017 Tax Act. December 22, 2018 marked the end of the measurement period for purposes of SAB 118. As such, the Company has completed its analysis, based upon currently available legislative updates, proposed regulations, and other administrative guidance issued related to the 2017 Tax Act, which resulted in an additional tax expense in the fourth quarter of 2018 of $10.3 million and a total tax expense of $13.9 million for the year ended December 31, 2018.
The Company has determined that its undistributed earnings for most of its foreign subsidiaries are not permanently reinvested. The Company has provided for withholding taxes on all unremitted earnings, as required.
The components of net deferred tax assets (liabilities) were as follows:
 
December 31, 
(in thousands)
2019
 
2018
Deferred tax assets
 
 
 
Compensation and benefits
$
13,208

 
$
14,036

Share-based compensation
2,682

 
7,446

Pension and other postretirement benefits
24,260

 
22,285

Inventories
15,379

 
11,505

R&D capitalization
12,925

 
6,449

Lease liability
9,669

 

Partnership investment
223

 
110

Transaction costs
1,365

 
1,580

Nondeductible accruals and reserves
6,907

 
7,248

Miscellaneous
2,802

 
2,379

Net operating loss and other tax carryforwards
74,586

 
80,671

Gross deferred tax assets
164,006

 
153,709

Valuation allowance
(18,424
)
 
(15,542
)
Total deferred tax assets
145,582

 
138,167

Deferred tax liabilities
 
 
 
Property, plant and equipment
(6,687
)
 
(8,057
)
Identifiable intangible assets
(62,349
)
 
(54,681
)
Right-of-use assets
(9,407
)
 

Foreign exchange derivative instruments
(154
)
 
(1,176
)
Miscellaneous
(1,281
)
 
(860
)
Total deferred tax liabilities
(79,878
)
 
(64,774
)
Net deferred tax asset
$
65,704

 
$
73,393


Under U.S. tax law and regulations, certain changes in the ownership of the Company’s shares can limit the annual utilization of tax attributes (tax loss and tax credit carryforwards) that were generated prior to such ownership changes. The annual limitation could affect the realizability of the Company’s deferred tax assets recorded in the financial statement for its tax credit carryforwards because the carryforward periods have a finite duration. The 2016 initial public offering, and associated share transfers, resulted in significant changes in the composition of the ownership of the Company’s shares. Based on its analysis of the change of ownership tax rules in conjunction with the estimated amount and source of its future earnings and related tax profile, the Company believes its existing U.S. tax attributes will be utilized prior to their expiration, with the exception of certain tax attributes for which the Company has established a valuation allowance.
As of December 31, 2019 and 2018, the Company had state net operating loss (“NOL”) carryforwards of $141.3 million and $158.9 million, respectively. These NOL carryforwards expire between 2020 and 2037. As of December 31, 2019 and 2018, the Company had foreign tax credit carryforwards of $55.0 million and $59.4 million, respectively. These foreign tax credits will begin to expire in 2022. As of December 31, 2019 and 2018, the Company had U.S. general business credit carryforwards of $16.9 million and $14.3 million, respectively. These credits will begin to expire in 2031. As of December 31, 2019 and 2018, the Company had state research tax credits of $8.2 million and $10.3 million, respectively. These credits will begin to expire in 2030.
Changes in the valuation allowance for deferred tax assets were as follows:
 
Year ended December 31, 
(in thousands)
2019
 
2018
 
2017
Valuation allowance at beginning of year
$
15,542

 
$
25,579

 
$
21,726

Increases (decreases) recorded to income tax provision
2,882

 
(10,037
)
 
3,853

Valuation allowance at end of year
$
18,424

 
$
15,542

 
$
25,579


The Company evaluates the realizability of its deferred tax assets based upon the weight of available positive and negative evidence. In assessing the realizability of these assets, the Company considered numerous factors including historical profitability, the character and estimated future taxable income, prudent and feasible tax planning strategies, and the industry in which it operates. The Company’s conclusion was primarily driven by cumulative income in the U.S. tax jurisdiction and projections of future income driven by the sustained profitability.
The change in the valuation allowance of $2.9 million is principally due to excess U.S. foreign tax credits arising from our Japan branch operations and generated state tax attributes that we expect to expire unutilized, partially offset by the release of the Company’s previously recoded valuation allowance in Hong Kong. In 2018, the change in the valuation allowance was comprised of an $18.4 million release of its previously recorded valuation allowance against state deferred tax assets, partially offset by an increase of $0.4 million related to state tax attributes, and an increase of $8.0 million related to excess U.S. foreign tax credits arising from its Japan branch operations.
During 2018, the Company early adopted ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220)” ("ASU 2018-02") under the aggregate portfolio approach. ASU 2018-02 allows for reclassification of stranded tax effects on items resulting from the 2018 Tax Act from AOCI to retained earnings. Certain tax effects become stranded in AOCI when deferred tax balances originally recorded at the historical income tax rate are adjusted in income from continuing operations based on a lower newly enacted income tax rate. As a result of the adoption, we reclassified the stranded income tax effects resulting from the 2017 Tax Act, decreasing accumulated other comprehensive loss by $4.1 million with a corresponding increase to retained earnings. The reclassification was primarily comprised of amounts relating to available-for-sale securities, pension, postretirement benefit plan obligations and currency translation matters.
The Company's unrecognized tax benefits represent tax positions for which reserves have been established. The following table represents a reconciliation of the activity related to the unrecognized tax benefits, excluding accrued interest and penalties:
(in thousands)
2019
 
2018
 
2017
Unrecognized tax benefits at beginning of year
$
11,646

 
$
11,049

 
$
11,347

Gross additions - current year tax positions
787

 
801

 
1,159

Gross additions - acquired tax positions
659

 

 

Gross reductions - prior year tax positions
(248
)
 
(91
)
 
(348
)
Gross reductions - Acquired tax positions settled with tax authorities
(461
)
 
(113
)
 
(1,241
)
Impact of change in foreign exchange rates
(16
)
 

 
132

Unrecognized tax benefits at end of year
$
12,367

 
$
11,646

 
$
11,049


As of December 31, 2019, 2018 and 2017, the unrecognized tax benefits of $12.4 million, $11.6 million and $11.0 million, respectively, would affect the Company's future effective tax rate if recognized. The Company does not anticipate a material change in unrecognized tax benefits within the next 12 months.
As of December 31, 2019, 2018 and 2017, the Company had unrecognized tax benefits included in the amounts above of $5.0 million, $5.0 million and $4.9 million, respectively, related to periods prior to the Company's acquisition of Acushnet Company and as such, are indemnified by Beam.
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes on the consolidated statements of income. As of December 31, 2019, 2018 and 2017, the Company recognized a liability of $3.9 million, $3.3 million and $2.7 million, respectively for interest and penalties, of which $3.4 million, $3.0 million and $2.7 million is indemnified by Beam.
Prior to the Company's acquisition of Acushnet Company, Acushnet Company or its subsidiaries filed certain combined tax returns with Beam. Those and other subsidiaries' income tax returns are periodically examined by various tax
authorities. Beam is responsible for managing United States tax audits related to periods prior to July 29, 2011. Acushnet Company is obligated to support these audits and is responsible for managing all non-U.S. audits.
The Company and certain subsidiaries have tax years that remain open and are subject to examination by tax authorities in the following major taxing jurisdictions: United States for years after July 29, 2011, Canada for years after 2014, Japan for years after 2014, Korea for years after 2016, and the United Kingdom for years after 2016. The Company files income tax returns on a combined, unitary, or stand-alone basis in multiple state and local jurisdictions, which generally have statute of limitations from three to four years. Various states and local income tax returns are currently in the process of examination. These examinations are unlikely to result in any significant changes to the amounts of unrecognized tax benefits on the consolidated balance sheet as of December 31, 2019.
The Company's income tax expense includes tax expense of $0.5 million, $0.3 million and $0.2 million for the years ended December 31, 2019, 2018 and 2017, respectively, related to the tax obligations indemnified by Beam. There is an offsetting amount included in other expense, net for the related adjustment to the Beam indemnification asset, resulting in no effect on net income.
v3.19.3.a.u2
Common Stock
12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Common Stock Common Stock
As of December 31, 2019 and 2018, the Company's certificate of incorporation, as amended and restated, authorized the Company to issue 500,000,000 shares of $0.001 par value common stock. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company's shareholders. Common shareholders are entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, subject to the prior rights of holders of all classes of stock outstanding.
Dividends
The Company declared dividends per common share, including DERs (Note 16), during the periods presented as follows:
 
Dividends
per Common Share
 
Amounts
(in thousands)
2019:
 

 
Fourth Quarter
$
0.14


$
10,718

Third Quarter
0.14


10,726

Second Quarter
0.14


10,751

First Quarter
0.14


10,782

Total dividends declared in 2019
$
0.56


$
42,977

 
 
 
 
2018:
 

 
 

Fourth Quarter
$
0.13

 
$
9,968

Third Quarter
0.13

 
9,954

Second Quarter
0.13

 
9,917

First Quarter
0.13

 
9,917

Total dividends declared in 2018
$
0.52

 
$
39,756

 
 
 
 
2017:
 

 
 

Fourth Quarter
$
0.12

 
$
9,098

Third Quarter
0.12

 
9,146

Second Quarter
0.12

 
9,149

First Quarter
0.12

 
9,152

Total dividends declared in 2017
$
0.48

 
$
36,545


During the first quarter of 2020, the Board of Directors declared a dividend of $0.155 per share to shareholders on record as of March 13, 2020 and payable on March 27, 2020.
Share Repurchase Program
As of December 31, 2019, the Board of Directors had authorized the Company to repurchase up to an aggregate of $50.0 million of its issued and outstanding common stock from time to time. On February 11, 2020, the Board of Directors authorized the Company to repurchase up to an additional $50.0 million of its issued and outstanding common stock bringing the total authorization up to $100.0 million.
Share repurchases may be effected in open market or privately negotiated transactions, including transactions with affiliates, with the timing of purchases and the amount of stock purchased generally determined at the discretion of the Company within the constraints of the Company’s credit agreement and general working capital needs. In connection with this share repurchase program, the Company entered into an agreement with Magnus to purchase from Magnus an equal amount of its common stock as it purchases on the open market at the same weighted average per share price. Under this agreement, the shares can be purchased from Magnus when the Company has purchased an aggregate $24.9 million of shares in the open market, or at an earlier determination date as agreed to by the parties.
The Company's share repurchase activity was as follows:
 
 
Year ended
(in thousands, except share and per share amounts)
 
December 31, 2019
Shares repurchased in the open market:
 
 
Shares repurchased
 
591,983

Average price
 
$
26.31

Aggregate value
 
$
15,577

Shares repurchased from Magnus:
 
 
Shares repurchased
 
535,983

Average price (1)
 
$
25.70

Aggregate value
 
$
13,775

Total shares repurchased:
 
 
Shares repurchased
 
1,127,966

Average price
 
$
26.02

Aggregate value
 
$
29,352



_______________________________________________________________________________
(1) Average price including Magnus share repurchase liability was $26.31 as of December 31, 2019.
As of December 31, 2018, there were no share repurchases made under this program.
In relation to the Magnus share repurchase agreement, the Company and Magnus agreed upon a determination date of December 6, 2019 for shares to be repurchased from Magnus.  The shares purchased during the year ended December 31, 2019 include 535,983 shares purchased from Magnus at an average price of $25.70 per share for an aggregate of $13.8 million. Subsequent to the determination date, the Company repurchased additional shares on the open market.  As a result, the Company recorded a $1.8 million liability for an additional 56,000 shares of common stock to be repurchased from Magnus, which was included in accrued expenses and other liabilities and treasury stock on the consolidated balance sheet as of December 31, 2019. Excluding the impact of the share repurchase liability, as of December 31, 2019, the Company had $20.6 million remaining under the original $50.0 million share repurchase authorization, including $11.1 million related to the Magnus share repurchase agreement.
v3.19.3.a.u2
Equity Incentive Plans
12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Equity Incentive Plans Equity Incentive Plans
On January 22, 2016, the Company’s Board of Directors adopted the Acushnet Holdings Corp. 2015 Omnibus Incentive Plan (“2015 Plan”) pursuant to which 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. The 2015 Plan is administered by the compensation committee (the “Administrator”). The Administrator has the authority to establish the terms and conditions of any award issued or granted under the 2015 Plan. As of December 31, 2019, the only awards that have been granted under the 2015 Plan are 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, employees, consultants and advisors of the Company vest ratably and in accordance with the terms of the grant, generally over one to three years subject to the recipient’s continued service to the Company. PSUs vest, subject to the recipient's continued employment with the Company, based upon the Company's performance against specified metrics which are generally over a three year performance period as defined in the award agreement. At the end of the performance period, the number of shares of stock that could be issued is fixed based upon the degree of achievement of the performance goals. The number of shares that could be issued can range from 0% to 200% of the participant'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.
Each share issued with respect to RSUs and PSUs granted under the 2015 Plan reduces the number of shares available for grant. RSUs and PSUs forfeited and shares withheld to satisfy tax withholding obligations increase the number of shares available for grant. As of December 31, 2019, there were 6,664,012 remaining shares of common stock reserved for issuance under the 2015 Plan of which 5,060,479 remain available for future grants.
A summary of the Company’s RSUs and PSUs as of December 31, 2019 and 2018 and changes during the years then ended is presented below: 
 
 
Number
of
RSUs
 
Weighted-
Average
Fair
Value RSUs

Number
of
PSUs
 
Weighted-
Average
Fair
Value PSUs
Outstanding as of December 31, 2017
 
874,942

 
$
20.15


1,185,912

 
$
20.29

Granted
 
473,724

 
23.49



 

Vested (1)
 
(466,834
)
 
20.52


(900,226
)
 
20.29

Forfeited
 

 


(285,686
)
 
20.29

Outstanding as of December 31, 2018
 
881,832

 
$
21.75



 
$

Granted
 
655,522

 
23.51


207,077

 
23.47

Vested (2)
 
(567,836
)
 
20.81



 

Forfeited
 
(22,275
)
 
23.92



 

Outstanding as of December 31, 2019
 
947,243

 
$
23.49


207,077

 
$
23.47


_______________________________________________________________________________
(1) 
Included 63,490 shares of common stock related to RSUs and 900,226 shares of common stock related to PSUs that were not delivered as of December 31, 2018. The aggregate fair value of RSUs vested and PSUs vested was $10.0 million and $19.0 million, respectively.
(2) 
Included 161,165 shares of common stock related to RSUs and no shares of common stock related to PSUs that were not delivered as of December 31, 2019. The aggregate fair value of RSUs vested was $12.9 million.
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:
 
 
Year ended
 
Year ended
 
 
December 31, 2019
 
December 31, 2018
 
 
RSUs
 
PSUs
 
RSUs
 
PSUs
Shares of common stock issued
 
410,787

 
900,226

 
403,538

 

Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations
 
(126,242
)
 
(325,246
)
 
(122,795)

 

Net shares of common stock issued
 
284,545

 
574,980

 
280,743

 

 
 
 
 
 
 
 
 
 
Cumulative undelivered shares of common stock
 
220,582

 

 
63,490

 
900,226


Compensation expense recorded related to RSUs and PSUs in the consolidated statement of operations was as follows:
 
Year ended December 31,
(in thousands)
2019
 
2018
 
2017
RSU
$
9,140

 
$
12,353

 
$
9,318

PSU
1,507

 
6,210

 
5,967


The remaining unrecognized compensation related to non-vested RSUs and non-vested PSUs granted was $13.4 million and $3.4 million, respectively, as of December 31, 2019 and is expected to be recognized over the related weighted average period of 1.7 years and 2.0 years, respectively.
Compensation Expense
The allocation of share-based compensation expense in the consolidated statement of operations was as follows:
 
Year ended December 31,
(in thousands)
2019

2018

2017
Cost of goods sold
$
722


$
680


$
408

Selling, general and administrative expense
9,402


16,507


13,687

Research and development
851


1,376


1,190

Total compensation expense before income tax
10,975


18,563


15,285

Income tax benefit
2,440


4,398


3,158

Total compensation expense, net of tax
$
8,535


$
14,165


$
12,127


v3.19.3.a.u2
Accumulated Other Comprehensive Loss, Net of Tax
12 Months Ended
Dec. 31, 2019
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 11) and pension and other postretirement adjustments (Note 13). Prior to the adoption of ASU 2016-01 on January 1, 2018, accumulated other comprehensive loss, net of tax included unrealized gains from available-for-sale securities (Note 2).
The components of and changes in accumulated other comprehensive loss, net of tax, were as follows:
(in thousands)
Foreign
Currency
Translation
Adjustments
 
Gains (Losses) on
Foreign Exchange Derivative
Instruments
 
Gains (Losses) on
Interest Rate Swap
Derivative
Instruments
 
Gains
on Available-
for-Sale
Securities
 
Pension and
Other
Postretirement
Adjustments
 
Accumulated
Other
Comprehensive
Loss
Balances as of December 31, 2017
$
(57,711
)
 
$
(2,280
)
 
$

 
$
1,721

 
$
(23,421
)
 
$
(81,691
)
Adoption of new accounting standards (Notes 2 & 14)
(2,171
)
 

 

 
(1,721
)
 
(2,240
)
 
(6,132
)
Other comprehensive income (loss) before reclassifications
(11,971
)
 
8,148

 
(1,926
)
 

 
620

 
(5,129
)
Amounts reclassified from accumulated other comprehensive loss, net of tax

 
1,410

 
476

 

 
5,070

 
6,956

Tax benefit (expense)

 
(2,020
)
 
352

 

 
(1,375
)
 
(3,043
)
Balances as of December 31, 2018
$
(71,853
)
 
$
5,258

 
$
(1,098
)
 
$

 
$
(21,346
)
 
$
(89,039
)
Other comprehensive income (loss) before reclassifications
666

 
5,490

 
(2,185
)
 

 
(31,065
)
 
(27,094
)
Amounts reclassified from accumulated other comprehensive loss, net of tax

 
(8,465
)
 
989

 

 
4,528

 
(2,948
)
Tax benefit

 
618

 
291

 

 
6,144

 
7,053

Balances as of December 31, 2019
$
(71,187
)
 
$
2,901

 
$
(2,003
)
 
$

 
$
(41,739
)
 
$
(112,028
)
v3.19.3.a.u2
Interest Expense, Net and Other Expense, Net
12 Months Ended
Dec. 31, 2019
Interest Expense and Other (Income) Expense, Net  
Interest Expense, Net and Other Expense, Net Interest Expense, Net and Other Expense, Net
The components of interest expense, net were as follows:
 
Year ended  December 31,
(in thousands)
2019
 
2018
 
2017
Third party interest expense
$
19,472

 
$
19,171

 
$
16,907

Loss on interest rate swap
989

 
476

 

Third party interest income
(848
)
 
(1,245
)
 
(1,198
)
Total interest expense, net
$
19,613

 
$
18,402

 
$
15,709


The components of other expense, net were as follows:
 
Year ended  December 31,
(in thousands)
2019
 
2018
 
2017
Indemnification (gains) losses
$
(498
)
 
$
(258
)
 
$
177

Non-service cost component of net periodic benefit cost
2,917

 
4,416

 
3,520

Other income
(1,544
)
 
(529
)
 
(1,254
)
Total other expense, net
$
875

 
$
3,629

 
$
2,443


v3.19.3.a.u2
Net Income per Common Share
12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Net Income per Common Share Net Income per Common Share
The following is a computation of basic and diluted net income per common share attributable to Acushnet Holdings Corp.:
 
Year ended December 31,
(in thousands, except share and per share amounts)
2019
 
2018
 
2017
 
 
 
 
 
 
Net income attributable to Acushnet Holdings Corp.
$
121,070

 
$
99,872

 
$
98,695

 
 
 
 
 
 
Weighted average number of common shares:
 
 
 
 
 
Basic
75,418,204

 
74,766,176

 
74,399,836

Diluted
75,759,605

 
75,472,342

 
74,590,999

Net income per common share attributable to Acushnet Holdings Corp.:
 
 
 
 
 
Basic
$
1.61

 
$
1.34

 
$
1.33

Diluted
$
1.60

 
$
1.32

 
$
1.32


Net income per common share attributable to Acushnet Holdings Corp. was calculated under the treasury stock method.
The Company’s potential dilutive securities for the years ended December 31, 2019, 2018, and 2017 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. As of December 31, 2018, an amount within the performance target range was achieved relating to the PSUs and as a result, the PSUs were included in diluted shares outstanding for the year ended December 31, 2018.
The following securities have been excluded from the calculation of diluted weighted‑average common shares outstanding as their impact was determined to be anti‑dilutive:
 
Year ended December 31,
 
2019
 
2018
 
2017
RSUs
1,013

 
13,885

 
360,659


v3.19.3.a.u2
Segment Information
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company’s operating segments are based on how the Chief Operating Decision Maker (“CODM”) makes decisions about assessing performance and allocating resources. The Company has four reportable segments that are organized on the basis of product categories. These segments include Titleist golf balls, Titleist golf clubs, Titleist golf gear and FootJoy golf wear.
The CODM primarily evaluates performance using segment operating income (loss). Segment operating income (loss) includes directly attributable expenses and certain shared costs of corporate administration that are allocated to the reportable segments, but excludes interest expense, net; the non-service cost component of net periodic benefit cost; transaction fees and other non-operating gains and losses as the Company does not allocate these to the reportable segments. The CODM does not evaluate a measure of assets when assessing performance.
Results shown for the years ended December 31, 2019, 2018 and 2017 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:
 
Year ended  December 31,
(in thousands)
2019
 
2018
 
2017
Net sales
 
 
 
 
 
Titleist golf balls
$
551,596

 
$
523,967

 
$
512,041

Titleist golf clubs
434,357

 
445,341

 
397,987

Titleist golf gear
149,984

 
146,067

 
142,911

FootJoy golf wear
441,871

 
439,681

 
437,455

Other
103,549

 
78,665

 
69,864

Total net sales
$
1,681,357

 
$
1,633,721

 
$
1,560,258

Segment operating income
 
 
 
 
 
Titleist golf balls
$
93,305

 
$
78,973

 
$
78,419

Titleist golf clubs
38,811

 
45,156

 
32,084

Titleist golf gear
17,300

 
15,430

 
16,803

FootJoy golf wear
24,429

 
17,974

 
27,038

Other
15,043

 
15,560

 
14,904

Total segment operating income
188,888

 
173,093

 
169,248

Reconciling items:
 
 
 
 
 
Interest expense, net
(19,613
)
 
(18,402
)
 
(15,709
)
Non-service cost component of net periodic benefit cost
(2,917
)
 
(4,416
)
 
(3,520
)
Transaction fees
(2,654
)
 
(599
)
 
(686
)
Other
1,461

 
628

 
2,343

Total income before income tax
$
165,165

 
$
150,304

 
$
151,676


Depreciation and amortization expense by reportable segment are as follows:
 
Year ended  December 31,
(in thousands)
2019
 
2018
 
2017
Depreciation and amortization
 
 
 
 
 
Titleist golf balls
$
22,694

 
$
24,155

 
$
25,545

Titleist golf clubs
7,451

 
7,408

 
7,233

Titleist golf gear
1,603

 
1,531

 
1,425

FootJoy golf wear
6,451

 
6,731

 
6,058

Other
4,803

 
671

 
610

Total depreciation and amortization
$
43,002

 
$
40,496

 
$
40,871


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.
 
Year ended  December 31,
(in thousands)
2019
 
2018
 
2017
Net sales
 
 
 
 
 
United States
$
884,791

 
$
826,111

 
$
789,879

EMEA (1)
230,465

 
219,803

 
205,200

Japan
182,681

 
199,107

 
201,264

Korea
223,365

 
221,146

 
200,394

Rest of world
160,055

 
167,554

 
163,521

Total net sales
$
1,681,357

 
$
1,633,721

 
$
1,560,258

___________________________________
(1) Europe, the Middle East and Africa (“EMEA”)
Long-lived assets (property, plant and equipment, net) categorized based on their location of domicile are as follows:
 
Year ended December 31,
(in thousands)
2019
 
2018
Long-lived assets
 
 
 
United States
$
148,883

 
$
146,596

EMEA
11,906

 
9,472

Japan
663

 
764

Korea
7,441

 
5,682

Rest of world (2)
62,682

 
65,874

Total long-lived assets
$
231,575

 
$
228,388

___________________________________
(2) Includes manufacturing facilities in Thailand with long lived assets of $49.4 million and $52.2 million as of December 31, 2019 and 2018, respectively.
v3.19.3.a.u2
Business Combinations
12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Business Combinations Business Combinations
On July 3, 2019, the Company, through a majority owned subsidiary, completed the acquisition of KJUS, a premium global ski and golf sportswear company, for a purchase price of $28.7 million, net of cash acquired. As part of the acquisition, the Company recorded a redeemable noncontrolling interest of $5.0 million. Additionally, the Company issued a loan of $4.4 million to the minority shareholders which was recorded as a reduction to redeemable noncontrolling interest as of December 31, 2019. The results of KJUS have been reported outside of the Company's reportable segments since the date of acquisition.
On October 1, 2018, the Company completed the acquisition of an 80% interest in certain assets and liabilities of PG Professional Golf, a leading supplier of pre-owned Titleist and other golf balls, for a purchase price of $14.4 million. The results of PG Professional Golf have been included in the Company's Titleist golf ball reporting segment since the date of acquisition.
In January 2018, the Company acquired all of the assets of Links & Kings, LLC for an immaterial amount. Links & Kings, LLC is a company dedicated to the design and handcrafted production of luxury leather golf and lifestyle products. The results of Links & Kings, LLC have been included in the Company's FootJoy golf wear reporting segment since the date of acquisition.
v3.19.3.a.u2
Commitments and Contingencies
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Purchase Obligations
During the normal course of its business, the Company enters into agreements to purchase goods and services, including purchase commitments for production materials, finished goods inventory, capital expenditures and endorsement arrangements with professional golfers. The reported amounts exclude those liabilities included in accounts payable or accrued liabilities on the consolidated balance sheet as of December 31, 2019.
Purchase obligations by the Company as of December 31, 2019 were as follows:
 
Payments Due by Period
(in thousands)
2020
 
2021
 
2022
 
2023
 
2024
 
Thereafter
Purchase obligations
$
128,242

 
$
11,173

 
$
2,269

 
$
646

 
$
450

 
$
1,603


Contingencies
In connection with the Company’s acquisition of Acushnet Company, Beam indemnified the Company for certain tax related obligations that relate to periods during which Fortune Brands, Inc. owned Acushnet Company. As of December 31, 2019 and 2018, the Company’s estimate of its receivable for these indemnifications was $9.5 million and $8.9 million, respectively, which was recorded in other noncurrent assets on the consolidated balance sheets.
Litigation
The Company and its subsidiaries are defendants in lawsuits associated with the normal conduct of their businesses and operations. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that some of these actions could be decided unfavorably. Consequently, the Company is unable to estimate the ultimate aggregate amount of monetary loss, amounts covered by insurance or the financial impact that will result from such matters and has not recorded a liability related to potential losses.
v3.19.3.a.u2
Unaudited Quarterly Financial Data
12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Unaudited Quarterly Financial Data Unaudited Quarterly Financial Data 
The table below summarizes quarterly results for fiscal 2019:
 
Quarter ended (unaudited)
(in thousands)
December 31,
 
September 30,
 
June 30,
 
March 31,
2019
 
 
 
 
 
 
 
Net sales
$
368,271

 
$
417,166

 
$
462,218

 
$
433,702

Gross profit
186,691

 
217,344

 
246,043

 
222,157

Income from operations
28,565

 
43,726

 
61,135

 
52,227

Net income
19,618

 
30,006

 
38,902

 
36,039

Net income attributable to Acushnet Holdings Corp.
17,859

 
29,797

 
38,488

 
34,926

Net income per common share attributable to Acushnet Holdings Corp.:
 
 
 
 
 
 
 
Basic
$
0.24

 
$
0.40

 
$
0.51

 
$
0.46

Diluted
$
0.24

 
$
0.39

 
$
0.51

 
$
0.46

 
The table below summarizes quarterly results for fiscal 2018:
 
Quarter ended (unaudited)
(in thousands)
December 31,
 
September 30,
 
June 30,
 
March 31,
2018
 
 
 
 
 
 
 
Net sales
$
343,355

 
$
370,427

 
$
478,138

 
$
441,801

Gross profit
174,929

 
188,938

 
250,810

 
227,674

Income from operations
19,599

 
25,873

 
64,579

 
62,284

Net income
12,264

 
7,349

 
40,369

 
43,090

Net income attributable to Acushnet Holdings Corp.
11,418

 
7,063

 
39,907

 
41,484

Net income per common share attributable to Acushnet Holdings Corp.:
 
 
 
 
 
 
 
Basic
$
0.15

 
$
0.09

 
$
0.53

 
$
0.56

Diluted
$
0.15

 
$
0.09

 
$
0.53

 
$
0.55


Net income per common share is computed individually for each of the quarters presented; therefore, the sum of the quarterly net income per common share may not necessarily equal the total for the year.
v3.19.3.a.u2
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying 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 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 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 those estimates.
Variable Interest Entities
Variable Interest Entities
VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities independently, or (ii) have equity holders that do not have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the entity’s expected losses, or the right to receive the entity’s expected residual returns. The Company consolidates a VIE when it is the primary beneficiary, which is the party that has both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) through its interests in the VIE, the obligation to absorb expected losses or the right to receive expected benefits from the VIE that could potentially be significant to the VIE.
The Company consolidates the accounts of Acushnet Lionscore Limited, a VIE which is 40% owned by the Company. The sole purpose of the VIE is to manufacture the Company’s golf footwear and as such, the Company is deemed to be the primary beneficiary. The Company has presented separately on its consolidated balance sheets, to the extent material, the assets of its consolidated VIE that can only be used to settle specific obligations of its consolidated VIE and the liabilities of its consolidated VIE for which creditors do not have recourse to its general credit. The general creditors of the VIE do not have recourse to the Company. Certain directors of the VIE have guaranteed the credit lines of the VIE, for which there were no outstanding borrowings as of December 31, 2019 and 2018. In addition, pursuant to the terms of the agreement governing the VIE, the Company is not required to provide financial support to the VIE.
Noncontrolling Interests and Redeemable Noncontrolling Interest
Noncontrolling Interests and Redeemable Noncontrolling Interest
The ownership interests held by owners other than the Company in less than wholly-owned subsidiaries are classified as noncontrolling interests. 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 financial results and position of the noncontrolling interests are included in their entirety in the Company’s consolidated statements of operations and consolidated balance sheets. The value attributable to the noncontrolling interests is presented on the consolidated balance sheets, separately from the equity attributable to the Company. The value attributable to the redeemable noncontrolling interest is presented in the consolidated balance sheets as temporary equity between liabilities and shareholders’ equity. Net income (loss) and comprehensive income (loss) attributable to noncontrolling interests are presented separately on the consolidated statements of operations and consolidated statements of comprehensive income, respectively.
Cash and Restricted Cash
Cash and Restricted Cash
Cash held in Company checking accounts is included in cash. Book overdrafts not subject to offset with other accounts with the same financial institution are classified as accounts payable.
Concentration of Credit Risk and of Significant Customers
Concentration of Credit Risk and of Significant Customers
Financial instruments that potentially expose the Company to concentration of credit risk are cash and accounts receivable. Substantially all of the Company's cash deposits are maintained at large, creditworthy financial institutions. The Company's deposits, at times, may exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. As part of its ongoing procedures, the Company monitors its concentration of deposits with various financial institutions in order to avoid any undue exposure. As of December 31, 2019 and 2018, the Company had $30.0 million and $28.6 million, respectively, in banks located outside the United States. The risk with respect to the Company's accounts receivable is managed by the Company through its policy of monitoring the creditworthiness of its customers to which it grants credit terms in the normal course of business.
Inventories
Inventories
Inventories are valued at the lower of cost and net realizable value. Approximate cost is determined on the first-in, first-out basis. The inventory balance, which includes material, labor and manufacturing overhead costs, is recorded net of an allowance for obsolete or slow moving inventory. The Company's allowance for obsolete or slow moving inventory contains estimates regarding uncertainties. Such estimates are updated each reporting period and require the Company to make assumptions and to apply judgment regarding a number of factors, including market conditions, selling environment, historical results and current inventory trends.
Property, Plant and Equipment
Property, Plant and Equipment
Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Gains or losses resulting from disposals are included in income from operations. Betterments and renewals, which improve and extend the life of an asset, are capitalized. Maintenance and repair costs are expensed as incurred.
Estimated useful lives of property, plant and equipment asset categories were as follows:
Buildings and improvements
15
-
40 years
Machinery and equipment
3
-
10 years
Furniture, fixtures and computer hardware
3
-
10 years
Computer software
1
-
10 years
 
Leasehold and tenant improvements are amortized over the shorter of the lease term or the estimated useful lives of the assets.
Certain costs incurred in connection with the development of the Company's internal-use software are capitalized. Internal-use software development costs are primarily related to the Company's enterprise resource planning system. Costs incurred in the preliminary stages of development are expensed as incurred. Internal and external costs incurred in the
application development phase, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing performed to ensure the product is ready for its intended use. Costs such as maintenance and training are expensed as incurred. The capitalized internal-use software costs are included in property, plant and equipment and once the software is placed into service are amortized over the estimated useful life which ranges from three to ten years.
Long-Lived Assets
Long-Lived Assets
Long-lived assets are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are recorded on a straight-line basis, generally over the estimated useful lives of the assets. A long-lived asset (including amortizing intangible assets) or asset group is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, the Company compares the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of the asset or asset group. The cash flows are based on the best estimate of future cash flows derived from the most recent business projections. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment loss is recognized based on the excess of the asset's or asset group's carrying value over its fair value. Fair value is determined based on discounted expected future cash flows on a market participant basis.
The Company continually evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets may warrant revision or that the remaining balance may not be recoverable. These factors may include a significant deterioration of operating results, changes in business plans, or changes in anticipated cash flows.
Goodwill and Indefinite-Lived Intangible Assets
Goodwill and Indefinite-Lived Intangible Assets
Goodwill and indefinite-lived intangible assets are not amortized but instead are measured for impairment at least annually, or more frequently when events or changes in circumstances indicate that the carrying amount of the asset may be impaired.
Goodwill is assigned to reporting units for purposes of impairment testing. A reporting unit may be the same as an operating segment or one level below an operating segment. For purposes of assessing potential impairment, the Company compares the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company records goodwill impairment in the amount of the excess of a reporting unit’s carrying value over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The fair value of the reporting units is determined using the income approach. The income approach uses a discounted cash flow analysis which involves applying appropriate discount rates to estimated future cash flows based on forecasts of sales, costs and capital requirements.
Purchased intangible assets other than goodwill are amortized over their useful lives unless those lives are determined to be indefinite. Certain of the Company's trademarks have been assigned an indefinite life as the Company currently anticipates that these trademarks will contribute to its cash flows indefinitely. Indefinite-lived trademarks are reviewed for impairment annually and may be reviewed more frequently if indicators of impairment are present. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company measures the fair value of its trademarks using the relief-from-royalty method, which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. See Note 8 for additional information.
The Company performs its annual impairment tests in the fourth quarter of each fiscal year.
Debt Issuance Costs
Debt Issuance Costs
The Company defers costs directly associated with acquiring third-party financing. These debt issuance costs are amortized as interest expense over the term of the related indebtedness. Debt issuance costs associated with the revolving credit facilities are included in other current and noncurrent assets and debt issuance costs associated with all other indebtedness are netted against long-term debt on the consolidated balance sheet.
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. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:
Level 1—Quoted prices in active markets for identical assets or liabilities.
Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.
The Company’s derivative instrument assets and liabilities are carried at fair value determined according to the fair value hierarchy described above (Note 11 and 12). The carrying value of accounts receivable, accounts payable and accrued expenses approximates fair value due to the short-term nature of these assets and liabilities.
Pension and Other Postretirement Benefit Plans
Pension and Other Postretirement Benefit Plans
The Company provides U.S. and foreign defined benefit and defined contribution plans to certain eligible employees and postretirement benefits to certain retirees, including pensions, postretirement healthcare benefits and other postretirement benefits.
Plan assets and obligations are measured using various actuarial assumptions, such as discount rates, rate of compensation increase, mortality rates, turnover rates and health care cost trend rates, as determined at each year end measurement date. The measurement of net periodic benefit cost is based on various actuarial assumptions, including discount rates, expected return on plan assets and rate of compensation increase, which are determined as of the prior year measurement date. The determination of the discount rate is generally based on an index created from a hypothetical bond portfolio consisting of high-quality fixed income securities with durations that match the timing of expected benefit payments. The expected return on plan assets is determined based on several factors, including adjusted historical returns, historical risk premiums for various asset classes and target asset allocations within the portfolio. Adjustments made to the historical returns are based on recent return experience in the equity and fixed income markets and the belief that deviations from historical returns are likely over the relevant investment horizon. Actual cost is also dependent on various other factors related to the employees covered by these plans. The effects of actuarial deviations from assumptions are generally accumulated and, if over a specified corridor, amortized over the remaining service period of the employees. The cost or benefit of plan changes, such as increasing or decreasing benefits for prior employee service (prior service cost), is deferred and included in expense on a straight-line basis over the average remaining service period of the related employees. The Company's actuarial assumptions are reviewed on an annual basis and modified when appropriate.
To calculate the U.S. pension and postretirement benefit plan expense in 2019, 2018 and 2017, the Company applied the individual spot rates along the yield curve that correspond with the timing of each future cash outflow for the benefit payments in order to calculate interest cost and service cost.
Income Taxes
Income Taxes
The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between consolidated financial statement carrying amounts and tax basis amounts at enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is recorded to reduce deferred income tax assets when it is more-likely-than-not that such assets will not be realized. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies.
The Company records liabilities for uncertain income tax positions based on the two step process. The first step is recognition, where an individual tax position is evaluated as to whether it has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The amount of the benefit that may be recognized is the largest amount that has a greater
than 50% likelihood of being realized on ultimate settlement. The actual benefits ultimately realized may differ from the estimates. In future periods, changes in facts, circumstances, and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in income tax expense and liability in the period in which such changes occur. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes on the consolidated statements of income.
Beam has indemnified certain tax obligations that relate to periods during which Fortune Brands, Inc. owned Acushnet Company (Note 22). These estimated tax obligations are recorded in accrued taxes and other noncurrent liabilities, and the related indemnification receivable is recorded in other noncurrent assets on the consolidated balance sheet. Any changes in the value of these specifically identified tax obligations are recorded in the period identified in income tax expense and the related change in the indemnification asset is recorded in other expense, net on the consolidated statement of operations. See Note 14 for additional information.
On December 22, 2017, the U.S. enacted the 2017 Tax Act. The 2017 Tax Act contains a new law that subjects the Company to a tax on Global Intangible Low-Taxed Income (“GILTI”), beginning in 2018. GILTI is a tax on foreign income in excess of a deemed return on tangible assets of related foreign corporations. Companies subject to GILTI have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for temporary differences, including outside basis differences, expected to reverse as GILTI. The Company has elected to account for GILTI as a period cost.
Cost of Goods Sold
Cost of Goods Sold
Cost of goods sold includes all costs to make products salable, such as inbound freight, purchasing and receiving costs, inspection costs and transfer costs. In addition, all depreciation expense associated with assets used to manufacture products and make them salable is included in cost of goods sold.
Product Warranty
Product Warranty
The Company has defined warranties generally ranging from one to two years. Products covered by the defined warranty policies primarily include all Titleist golf products, FootJoy golf shoes, and FootJoy golf outerwear. These product warranties generally obligate the Company to pay for the cost of replacement products, including the cost of shipping replacement products to its customers. The estimated cost of satisfying future warranty claims is accrued at the time the sale is recorded. In estimating future warranty obligations, the Company considers various factors, including its warranty policies and practices, the historical frequency of claims, and the cost to replace or repair products under warranty.
Advertising and Promotion
Advertising and Promotion
Advertising and promotional costs are included in selling, general and administrative expense on the consolidated statement of operations and include product endorsement arrangements with members of the various professional golf tours, media placement and production costs (television, print and internet), tour support expenses and point-of-sale materials. Advertising production costs are expensed as incurred. Media placement costs are expensed in the month the advertising first appears. Product endorsement arrangements are expensed based upon the specific provisions of player contracts.
Selling
Selling
Selling expenses including field sales, sales administration and shipping and handling costs are included in selling, general and administrative expense on the consolidated statement of operations.
Research and Development
Research and Development
Research and development expenses include product development, product improvement, product engineering, and process improvement costs and are expensed as incurred.
Foreign Currency Translation and Transactions
Foreign Currency Translation and Transactions
Assets and liabilities denominated in foreign currency are translated into U.S. dollars at the actual rates of exchange at the balance sheet date. Revenues and expenses are translated at the average rates of exchange for the reporting period. The related translation adjustments are recorded as a component of accumulated other comprehensive loss, net of tax. Transactions denominated in a currency other than the functional currency are re-measured into functional currency with resulting transaction gains or losses recorded as selling, general and administrative expense on the consolidated statement of operations.
Derivative Financial Instruments
Derivative Financial Instruments
All derivative instruments are recognized as either assets or liabilities on the consolidated balance sheet and are measured at fair value. If the derivative instrument is designated as a fair value hedge, the changes in the fair value of the derivative instruments and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss and are recognized in the consolidated statement of operations when the hedged item affects earnings. Any portion of the change in fair value that is determined to be ineffective is immediately recognized in the consolidated statement of operations. Cash flows from derivative financial instruments and the related hedged transactions are included in cash flows from operating activities. See Note 11 for additional information.
Share-based Compensation
Share-based Compensation
The Company has a share-based compensation plan for members of the board of directors, officers, employees, consultants and advisors of the Company. All awards granted under the plan are measured at fair value at the date of the grant. The estimated fair value is determined based on the closing price of the Company's common stock, generally on the award date, multiplied by the number of shares per the stock award. The Company issues share-based awards with service-based vesting conditions and performance-based vesting conditions. Awards with service-based vesting conditions are amortized as expense over the requisite service period of the award, which is generally the vesting period of the respective award. For awards with performance-based vesting conditions, the measurement of the expense is based on the Company’s level of achievement of performance metrics as defined in the applicable award agreements. The Company accounts for forfeitures in compensation expense when they occur.
Recently Adopted Accounting Standards and Recently Issued Accounting Standards
Recently Adopted Accounting Standards
Leases
On January 1, 2019, the Company adopted Accounting Standards Codification ("ASC") Topic 842, Leases ("ASC 842"), which requires the recognition of right-of-use assets and related operating and finance lease liabilities on the consolidated balance sheet. As permitted by ASC 842, the Company adopted ASC 842 using the optional transition approach, which allowed for a cumulative effect adjustment as of January 1, 2019, which is the date of initial application, and did not restate prior periods. As a result, the consolidated balance sheet prior to January 1, 2019 was not restated and continues to be reported under ASC Topic 840, Leases ("ASC 840"), which did not require the recognition of right-of-use assets and related operating lease liabilities on the consolidated balance sheet, and is not comparative.
Under ASC 842, all leases are required to be recorded on the consolidated balance sheet and are classified as either operating or finance leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset, the present value of the lease payments equals or exceeds substantially all of the fair value of the asset, or the leased asset is of a highly specialized nature. A lease is classified as an operating lease if it does not meet any one of these criteria.
The lease classification affects the expense recognition in the consolidated statement of operations. Operating lease expense consists of the lease payments plus any initial direct costs and is recognized on a straight-line basis over the lease term in the consolidated statement of operations. Finance lease charges are split, where amortization of the right-of-use asset is recorded as depreciation and amortization expense and an implied interest component is recorded in interest expense, net. The expense recognition for operating leases and finance leases under ASC 842 is consistent with ASC 840. As a result, there is no impact on the results of operations presented in the Company's consolidated statements of operations and consolidated statements of comprehensive income for the periods presented as a result of the adoption of ASC 842.
As permitted under ASC 842, the Company also elected to not reassess prior conclusions related to the identification, classification and accounting for initial direct costs for leases that commenced prior to January 1, 2019. As permitted under ASC 842, the Company elected to not use hindsight to determine lease terms. As permitted under ASC 842, the Company has elected to not separate non-lease components within its lease portfolio. As permitted under ASC 842, the Company has also elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The effect of short-term leases on the Company's operating right-of-use assets and operating lease liabilities was not material.
Upon adoption of ASC 842, the Company recognized operating lease right-of-use assets and operating lease liabilities. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred less any lease incentives received. Lease payments included in the measurement of the lease liability comprise the following: the fixed non-cancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early. The discount rate implicit within the Company's leases is generally not determinable and therefore the Company determines the discount rate based on its incremental collateralized borrowing rate applicable to the location where the lease is held. The incremental borrowing rate for each of the Company's leases is determined based on the lease term and currency in which such lease payments are made. On January 1, 2019, the Company recorded an adjustment to operating lease right-of-use assets and the related lease liabilities of $49.8 million.
The Company leases office and warehouse space, machinery and equipment, and vehicles, among other items. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to three years. For contracts entered into on or after the effective date, at the inception of a contract the Company assesses whether the contract is, or contains, a lease. The Company's assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtained the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether the Company has the right to direct the use of the asset. See further discussion in Note 4.
Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities
On January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2017‑12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” ("ASU 2017-12"). The amendments in this update expand and refine hedge accounting guidance and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. ASU 2017-12 also simplified the application of hedge accounting guidance, hedge documentation requirements and the assessment of hedge effectiveness. The adoption of this standard did not have a material impact on the consolidated financial statements.
Changes to the Disclosure Requirements for Fair Value Measurement
On January 1, 2019, the Company adopted ASU 2018-13, "Fair Value Measurement (Topic 820) —Disclosure Framework —Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). The amendments in this update are meant to provide more relevant information regarding valuation techniques and inputs used to arrive at measures of fair value, uncertainty in the fair value measurements, and how changes in fair value measurements impact an entity's performance and cash flows. The adoption of this standard did not have an impact on the consolidated financial statements or related disclosures.
Financial Instruments—Recognition and Measurement
On January 1, 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). ASU 2016-01 superseded the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and required equity securities to be measured at fair value with changes in the fair value recognized through net income, among other items (Note 17). As a result of the adoption of the amendments in this update, the Company recorded a reclassification of unrealized gains of $2.1 million from accumulated other comprehensive loss, net of tax to retained earnings. The comparative information for the year ended December 31, 2017 has not been restated and continues to be reported under the accounting standards in effect for such period.

Recently Issued Accounting Standards
Income Taxes
In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, "Income Taxes (Topic 740) —Simplifying the Accounting for Income Taxes ("ASU 2019-12"). The amendments in this update simplify the accounting for income taxes by removing certain exceptions to general principles in Topic 740. The amendments also improve consistent application and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements.
Intangibles —Goodwill and Other —Internal-Use Software
In August 2018, the FASB issued ASU 2018-15, "Intangibles —Goodwill and Other —Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract" ("ASU 2018-15"). The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.
Defined Benefit Plans—Changes to the Disclosure Requirements for Defined Benefit Plans
In August 2018, the FASB issued ASU 2018-14, "Compensation —Retirement Benefits —Defined Benefit Plans —General (Subtopic 715-20) —Disclosure Framework —Changes to the Disclosure Requirements for Defined Benefit Plans" ("ASU 2018-14"). The amendments in this update remove defined benefit plan disclosures that are no longer considered cost-beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The adoption of this standard should be applied to all periods presented. The adoption of this standard will not have a material impact on the consolidated financial statements.
Financial Instruments—Credit Losses
In June 2016, the FASB issued ASU 2016-13, "Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). ASU 2016-13 is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Additionally, enhanced disclosures will be required to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect the effect of adoption to have a material impact on its consolidated financial statements.
v3.19.3.a.u2
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Schedule of estimated useful lives of property, plant and equipment
Estimated useful lives of property, plant and equipment asset categories were as follows:
Buildings and improvements
15
-
40 years
Machinery and equipment
3
-
10 years
Furniture, fixtures and computer hardware
3
-
10 years
Computer software
1
-
10 years
 
v3.19.3.a.u2
Leases (Tables)
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Components of lease cost and supplemental information
Lease costs recognized on the consolidated statements of operations were as follows:
(in thousands)
 
 
 
Year ended
Lease costs
 
Location in Statement of Operations
 
December 31, 2019
Operating
 
Cost of goods sold
 
$
2,361

 
 
Selling, general and administrative
 
11,775

 
 
Research and development
 
773

 
 
 
 
 
Finance
 
 
 


     Amortization of lease assets
 
Selling, general and administrative
 
8

     Interest on lease liabilities
 
Interest expense, net
 
2

Total lease cost
 
 
 
$
14,919


Supplemental cash flow information and non-cash activity related to the Company's leases are as follows:
 
 
Year ended
(in thousands)
 
December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows for operating leases
 
$
14,804

Operating cash flows for finance leases
 
2

Financing cash flows for finance leases
 
8

Non-cash right-of-use assets obtained in exchange for lease obligations:
 
 
Operating leases
 
$
9,530

Finance leases
 
289


The weighted average remaining lease term and the weighted average discount rate for leases is as follows:
 
 
December 31, 2019
Weighted average remaining lease term (years):
 
 
Operating
 
5.8

Finance
 
5.9

Weighted average discount rate:
 
 
Operating
 
3.42
%
Finance
 
4.18
%

Supplemental balance sheet information related to leases
Lease costs recognized on the consolidated statements of operations were as follows:
(in thousands)
 
 
 
Year ended
Lease costs
 
Location in Statement of Operations
 
December 31, 2019
Operating
 
Cost of goods sold
 
$
2,361

 
 
Selling, general and administrative
 
11,775

 
 
Research and development
 
773

 
 
 
 
 
Finance
 
 
 


     Amortization of lease assets
 
Selling, general and administrative
 
8

     Interest on lease liabilities
 
Interest expense, net
 
2

Total lease cost
 
 
 
$
14,919


Total rental expense for all operating leases amounted to $15.7 million and $16.3 million for the years ended December 31, 2018 and 2017, respectively.
Supplemental balance sheet information related to the Company's leases is as follows:
(in thousands)
 
Balance Sheet Location
 
December 31, 2019
Right-of-use assets
 
 
 
 
Operating
 
Other noncurrent assets
 
$
44,407

Finance
 
Property, plant and equipment, net
 
281

 
 
Total lease assets
 
$
44,688

 
 
 
 
 
Lease liabilities
 
 
 
 
Operating
 
Accrued expenses and other liabilities
 
$
11,336

Finance
 
Accrued expenses and other liabilities
 
8

Operating
 
Other noncurrent liabilities
 
34,137

Finance
 
Long-term debt
 
273

 
 
Total lease liabilities
 
$
45,754


Reconciliation of undiscounted cash flows for lease liabilities recorded on consolidated balance sheet
The following table reconciles the undiscounted cash flows for leases as of December 31, 2019 to lease liabilities recorded on the consolidated balance sheet:
 
 
Operating
 
Finance
 
 
(in thousands)
 
Leases
 
Leases
 
Total
2020
 
$
14,173

 
$
59

 
$
14,232

2021
 
10,321

 
57

 
10,378

2022
 
6,740

 
55

 
6,795

2023
 
3,889

 
53

 
3,942

2024
 
3,264

 
51

 
3,315

Thereafter
 
12,379

 
41

 
12,420

Total future lease payments
 
50,766

 
316

 
51,082

Less: Interest
 
(5,293
)
 
(35
)
 
(5,328
)
Present value of lease liabilities
 
$
45,473

 
$
281

 
$
45,754

 
 
 
 
 
 
 
Accrued expenses and other liabilities
 
$
11,336

 
$
8

 
$
11,344

Other noncurrent liabilities
 
34,137

 

 
34,137

Long-term debt
 

 
273

 
273

Total lease liabilities
 
$
45,473

 
$
281

 
$
45,754


Reconciliation of undiscounted cash flows for lease liabilities recorded on consolidated balance sheet
The following table reconciles the undiscounted cash flows for leases as of December 31, 2019 to lease liabilities recorded on the consolidated balance sheet:
 
 
Operating
 
Finance
 
 
(in thousands)
 
Leases
 
Leases
 
Total
2020
 
$
14,173

 
$
59

 
$
14,232

2021
 
10,321

 
57

 
10,378

2022
 
6,740

 
55

 
6,795

2023
 
3,889

 
53

 
3,942

2024
 
3,264

 
51

 
3,315

Thereafter
 
12,379

 
41

 
12,420

Total future lease payments
 
50,766

 
316

 
51,082

Less: Interest
 
(5,293
)
 
(35
)
 
(5,328
)
Present value of lease liabilities
 
$
45,473

 
$
281

 
$
45,754

 
 
 
 
 
 
 
Accrued expenses and other liabilities
 
$
11,336

 
$
8

 
$
11,344

Other noncurrent liabilities
 
34,137

 

 
34,137

Long-term debt
 

 
273

 
273

Total lease liabilities
 
$
45,473

 
$
281

 
$
45,754


Schedule of future minimum rental payments under noncancelable operating leases
Future minimum rental payments under noncancelable operating leases as of December 31, 2018 were as follows:
(in thousands)
 
 
Year ending December 31,
 
 
2019
 
$
13,119

2020
 
11,053

2021
 
7,984

2022
 
5,345

2023
 
3,133

Thereafter
 
13,852

Total minimum rental payments
 
$
54,486


v3.19.3.a.u2
Allowance for Doubtful Accounts (Tables)
12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Schedule of activity related to the allowance for doubtful accounts
The activity related to the allowance for doubtful accounts was as follows:
 
Year ended December 31,
(in thousands)
2019
 
2018
 
2017
Balance at beginning of year
$
7,272

 
$
9,975

 
$
12,255

Bad debt expense
573

 
(583
)
 
337

Amount of receivables written off
(2,706
)
 
(1,873
)
 
(3,300
)
Foreign currency translation and other
199

 
(247
)
 
683

Balance at end of year
$
5,338

 
$
7,272

 
$
9,975


v3.19.3.a.u2
Inventories (Tables)
12 Months Ended
Dec. 31, 2019
Inventory Disclosure [Abstract]  
Schedule of inventories
The components of inventories were as follows:
(in thousands)
December 31,
2019
 
December 31,
2018
Raw materials and supplies
$
87,675

 
$
71,068

Work-in-process
22,024

 
21,763

Finished goods
288,669

 
268,376

Inventories
$
398,368

 
$
361,207


v3.19.3.a.u2
Property, Plant and Equipment, Net (Tables)
12 Months Ended
Dec. 31, 2019
Property, Plant and Equipment [Abstract]  
Schedule of property, plant and equipment, net
The components of property, plant and equipment, net were as follows:
(in thousands)
December 31,
2019
 
December 31,
2018
Land
$
14,551

 
$
14,515

Buildings and improvements
146,727

 
142,113

Machinery and equipment
171,230

 
160,707

Furniture, computers and equipment
40,143

 
36,405

Computer software
70,458

 
62,517

Construction in progress
25,044

 
19,999

Property, plant and equipment, gross
468,153

 
436,256

Accumulated depreciation and amortization
(236,578
)
 
(207,868
)
Property, plant and equipment, net
$
231,575

 
$
228,388


v3.19.3.a.u2
Goodwill and Identifiable Intangible Assets, Net (Tables)
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of goodwill allocated to the Company's reportable segments and changes in the carrying amount of goodwill
Goodwill allocated to the Company's reportable segments and changes in the carrying amount of goodwill were as follows:
(in thousands)
Titleist
Golf Balls
 
Titleist
Golf Clubs
 
Titleist
Golf Gear
 
FootJoy
Golf Wear
 
Other
 
Total
Balances at December 31, 2017
$
119,634

 
$
58,101

 
$
14,088

 
$
2,585

 
$
8,995

 
$
203,403

Acquisitions (Note 21)
8,492

 

 

 
1,071

 

 
9,563

Foreign currency translation
(1,931
)
 
(949
)
 
(222
)
 
(43
)
 
(150
)
 
(3,295
)
Balances at December 31, 2018
126,195

 
57,152

 
13,866

 
3,613

 
8,845

 
209,671

Acquisitions (Note 21)

 

 

 

 
4,749

 
4,749

Foreign currency translation
(214
)
 
(104
)
 
(25
)
 
(5
)
 
(16
)
 
(364
)
Balances at December 31, 2019
$
125,981

 
$
57,048

 
$
13,841

 
$
3,608

 
$
13,578

 
$
214,056

 
Schedule of net carrying value by class of identifiable intangible assets
The net carrying value by class of identifiable intangible assets was as follows:
 
 
December 31, 2019
 
December 31, 2018
(in thousands)
 
Gross
 
Accumulated
Amortization
 
Net Book
Value
 
Gross
 
Accumulated
Amortization
 
Net Book
Value
Indefinite-lived:
 
 
 
 
 
 
 
 
 
 
 
 
Trademarks
 
$
429,051

 
$

 
$
429,051

 
$
429,051

 
$

 
$
429,051

Amortizing:
 
 
 
 
 
 
 
 
 
 
 
 
Trademarks
 
5,503

 
(492
)
 
5,011

 
1,600

 
(50
)
 
1,550

Completed technology
 
74,715

 
(46,370
)
 
28,345

 
73,900

 
(41,017
)
 
32,883

Customer relationships
 
27,127

 
(8,923
)
 
18,204

 
22,023

 
(7,250
)
 
14,773

Licensing fees and other
 
32,666

 
(32,483
)
 
183

 
32,384

 
(32,384
)
 

Total intangible assets
 
$
569,062

 
$
(88,268
)
 
$
480,794

 
$
558,958

 
$
(80,701
)
 
$
478,257


Schedule of amortization expense related to identifiable intangible assets
Identifiable intangible asset amortization expense for each of the next five fiscal years and beyond is expected to be as follows:
(in thousands)
 
Year ending December 31,
 
2020
$
7,835

2021
7,835

2022
7,835

2023
7,835

2024
7,815

Thereafter
12,588

Total
$
51,743


v3.19.3.a.u2
Product Warranty (Tables)
12 Months Ended
Dec. 31, 2019
Product Warranties Disclosures [Abstract]  
Schedule of warranty obligation for accrued warranty expense
The activity related to the Company’s warranty obligation for accrued warranty expense was as follows:
 
Year ended December 31, 
(in thousands)
2019
 
2018
 
2017
Balance at beginning of year
$
3,331

 
$
3,823

 
$
3,526

Provision
6,863

 
5,909

 
5,801

Claims paid/costs incurred
(6,481
)
 
(6,315
)
 
(5,653
)
Foreign currency translation and other
335

 
(86
)
 
149

Balance at end of year
$
4,048

 
$
3,331

 
$
3,823


v3.19.3.a.u2
Debt and Financing Arrangements (Tables)
12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Schedule of debt and finance lease obligations
The Company’s debt and finance lease obligations were as follows:
(in thousands)
December 31, 2019
 
December 31,
2018
Term loan facility
$
350,000

 
$

Term loan A facility

 
330,469

Delayed draw term loan A facility

 
54,375

Revolving credit facility
50,321

 

Other short-term borrowings
3,802

 
920

Finance lease obligations
273

 

Debt issuance costs
(2,072
)
 
(2,266
)
Total
402,324

 
383,498

Less: short-term debt and current portion of long-term debt
71,623

 
36,545

Total long-term debt and finance lease obligations
$
330,701

 
$
346,953


Schedule of principal payments on outstanding long-term debt obligations
As of December 31, 2019, principal payments due on outstanding long-term debt obligations were as follows:
(in thousands)
 
Year ending December 31,
 
2020
$
17,500

2021
17,500

2022
17,500

2023
17,500

2024
280,000

Total
$
350,000


v3.19.3.a.u2
Derivative Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of fair values of hedge instruments on the consolidated balance sheets
The fair value of hedge instruments recognized on the consolidated balance sheets was as follows:
(in thousands)
 
 
 
December 31,
2019
 
December 31,
2018
Balance Sheet Location
 
Hedge Instrument Type
 
 
Other current assets
 
Foreign exchange forward
 
$
4,549

 
$
6,116

Other noncurrent assets
 
Foreign exchange forward
 
1,109

 
1,015

Accrued expenses and other liabilities
 
Foreign exchange forward
 
2,561

 
578

 
 
Interest rate swap
 
1,862

 
526

Other noncurrent liabilities
 
Foreign exchange forward
 
115

 
161

 
 
Interest rate swap
 
789

 
925


Schedule of hedge instruments included in accumulated other comprehensive loss
The hedge instrument gain (loss) recognized in accumulated other comprehensive loss, net of tax was as follows:
 
Gain (Loss) Recognized in
Other Comprehensive Loss
 
Year ended December 31,
(in thousands)
2019
 
2018
 
2017
Type of hedge
 
 
 
 
 
Foreign exchange forward
$
5,490

 
$
8,148

 
$
(15,558
)
Interest rate swap
(2,185
)
 
(1,926
)
 

 
$
3,305

 
$
6,222

 
$
(15,558
)
 
Effect of hedge instruments in the consolidated statement of operations
The hedge instrument gain (loss) recognized on the consolidated statements of operations was as follows:
 
 
Year ended December 31,
(in thousands)
 
2019
 
2018
 
2017
Location of gain (loss) in statement of operations
 
 
 
 
 
 
Foreign exchange forward:
 
 
 
 
 
 
Cost of goods sold
 
$
8,465

 
$
(1,410
)
 
$
1,329

Selling, general and administrative (1)
 
204

 
1,665

 
(2,732
)
Total
 
$
8,669

 
$
255

 
$
(1,403
)
 
 
 
 
 
 
 
Interest Rate Swap:
 
 
 
 
 
 
Interest expense, net
 
$
(989
)
 
$
(476
)
 
$

Total
 
$
(989
)
 
$
(476
)
 
$


_________________________________ 
(1) Relates to gains (losses) on foreign exchange forward contracts derived from previously designated cash flow hedges.
v3.19.3.a.u2
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities measured at fair value on a recurring basis
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 were as follows:
 
Fair Value Measurements as of
 
 
 
December 31, 2019 using:
 
 
(in thousands)
Level 1
 
Level 2
 
Level 3
 
Balance Sheet Location
Assets
 
 
 
 
 
 
 
Rabbi trust
$
6,070

 
$

 
$

 
Other current assets
Foreign exchange derivative instruments

 
4,549

 

 
Other current assets
Deferred compensation program assets
870

 

 

 
Other noncurrent assets
Foreign exchange derivative instruments

 
1,109

 

 
Other noncurrent assets
Total assets
$
6,940

 
$
5,658

 
$

 
 
Liabilities
 
 
 
 
 
 
 
Foreign exchange derivative instruments
$

 
$
2,561

 
$

 
Accrued expenses and other liabilities
Interest rate swap derivative instrument

 
1,862

 

 
Accrued expenses and other liabilities
Deferred compensation program liabilities
870

 

 

 
Other noncurrent liabilities
Foreign exchange derivative instruments

 
115

 

 
Other noncurrent liabilities
Interest rate swap derivative instrument

 
789

 

 
Other noncurrent liabilities
Total liabilities
$
870

 
$
5,327

 
$

 
 
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 were as follows:
 
Fair Value Measurements as of
 
 
 
December 31, 2018 using:
 
 
(in thousands)
Level 1
 
Level 2
 
Level 3
 
Balance Sheet Location
Assets
 
 
 
 
 
 
 
Rabbi trust
$
8,415

 
$

 
$

 
Other current assets
Foreign exchange derivative instruments

 
6,116

 

 
Other current assets
Deferred compensation program assets
1,222

 

 

 
Other noncurrent assets
Foreign exchange derivative instruments

 
1,015

 

 
Other noncurrent assets
Total assets
$
9,637

 
$
7,131

 
$

 
 
Liabilities
 
 
 
 
 
 
 
Foreign exchange derivative instruments
$

 
$
578

 
$

 
Accrued expenses and other liabilities
Interest rate swap derivative instruments

 
526

 

 
Accrued expenses and other liabilities
Deferred compensation program liabilities
1,222

 

 

 
Other noncurrent liabilities
Foreign exchange derivative instruments

 
161

 

 
Other noncurrent liabilities
Interest rate swap derivative instruments

 
925

 

 
Other noncurrent liabilities
Total liabilities
$
1,222

 
$
2,190

 
$

 
 

v3.19.3.a.u2
Pension and Other Postretirement Benefits (Tables)
12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Schedule of change in benefit obligation, change in plan assets and funded status
The following table presents the change in benefit obligation, change in plan assets and funded status for the Company's defined benefit and postretirement benefit plans for the year ended December 31, 2019:
(in thousands)
Pension
Benefits
(Underfunded)
 
Pension
Benefits
(Overfunded)
 
Postretirement
Benefits
Change in projected benefit obligation ("PBO")
 
 
 
 
 
Benefit obligation at December 31, 2018
$
274,821

 
$
25,629

 
$
14,412

Service cost
8,839

 

 
574

Interest cost
10,208

 
729

 
557

Actuarial loss
47,077

 
2,628

 
2,288

Curtailments
(116
)
 

 

Settlements
(27,438
)
 

 

Plan amendments
1,464

 

 

Participants’ contributions

 

 
498

Benefit payments
(2,605
)
 
(639
)
 
(1,504
)
Foreign currency translation
290

 
742

 

Projected benefit obligation at December 31, 2019
312,540

 
29,089

 
16,825

Accumulated benefit obligation at December 31, 2019
282,986

 
27,412

 
16,825

Change in plan assets

 

 
 
Fair value of plan assets at December 31, 2018
176,044

 
40,700

 

Return on plan assets
33,799

 
1,772

 

Employer contributions
24,540

 

 
1,006

Participants’ contributions

 

 
498

Settlements
(27,438
)
 

 

Benefit payments
(2,605
)
 
(639
)
 
(1,504
)
Foreign currency translation
9

 
1,122

 

Fair value of plan assets at December 31, 2019
204,349

 
42,955

 

Funded status (fair value of plan assets less PBO)
$
(108,191
)
 
$
13,866

 
$
(16,825
)
The following table presents the change in benefit obligation, change in plan assets and funded status for the Company's defined benefit and postretirement benefit plans for the year ended December 31, 2018:
(in thousands)
Pension
Benefits
(Underfunded)
 
Pension
Benefits
(Overfunded)
 
Postretirement
Benefits
Change in projected benefit obligation
 
 
 
 
 
Benefit obligation at December 31, 2017
$
316,882

 
$
35,468

 
$
16,052

Service cost
9,067

 

 
657

Interest cost
11,040

 
857

 
490

Actuarial gain
(22,436
)
 
(5,255
)
 
(1,600
)
Curtailments
(177
)
 

 

Settlements
(36,244
)
 
(3,507
)
 

Plan amendments

 
285

 

Participants’ contributions

 

 
378

Benefit payments
(2,990
)
 
(580
)
 
(1,565
)
Foreign currency translation
(321
)
 
(1,639
)
 

Projected benefit obligation at December 31, 2018
274,821

 
25,629

 
14,412

Accumulated benefit obligation at December 31, 2018
240,270

 
23,821

 
14,412

Change in plan assets

 

 

Fair value of plan assets at December 31, 2017
183,093

 
50,767

 

Return on plan assets
(11,863
)
 
(3,846
)
 

Employer contributions
44,105

 
441

 
1,187

Participants’ contributions

 

 
378

Settlements
(36,244
)
 
(3,507
)
 

Benefit payments
(2,990
)
 
(580
)
 
(1,565
)
Foreign currency translation
(57
)
 
(2,575
)
 

Fair value of plan assets at December 31, 2018
176,044

 
40,700

 

Funded status (fair value of plan assets less PBO)
$
(98,777
)
 
$
15,071

 
$
(14,412
)

Schedule of amount of pension and postretirement assets and liabilities recognized on consolidated balance sheets
The amount of pension and postretirement assets and liabilities recognized on the consolidated balance sheets was as follows:
 
Pension Benefits
 
Postretirement Benefits
 
December 31, 
 
December 31, 
(in thousands)
2019
 
2018
 
2019
 
2018
Other noncurrent assets
$
13,866

 
$
15,071

 
$

 
$

Accrued compensation and benefits
(5,357
)
 
(10,391
)
 
(807
)
 
(721
)
Accrued pension and other postretirement benefits
(102,834
)
 
(88,386
)
 
(16,018
)
 
(13,691
)
Net liability recognized
$
(94,325
)
 
$
(83,706
)
 
$
(16,825
)
 
$
(14,412
)

Schedule of amount in accumulated other comprehensive income (loss) on consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost
The amounts in accumulated other comprehensive loss, net of tax on the consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
Year ended December 31, 
 
Year ended December 31, 
(in thousands)
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Net actuarial gain (loss) at beginning of year
$
(39,125
)
 
$
(44,892
)
 
$
(33,736
)
 
$
12,315

 
$
12,392

 
$
8,055

Actuarial gain (loss)
(27,123
)
 
(882
)
 
(14,554
)
 
(2,288
)
 
1,600

 
5,075

Prior service cost
(1,464
)
 
(285
)
 

 

 

 

Curtailment impact

 
(97
)
 

 

 

 

Settlement impact
4,324

 
4,982

 
2,740

 

 

 

Amortization of actuarial (gain) loss
1,530

 
1,687

 
804

 
(1,436
)
 
(1,540
)
 
(601
)
Amortization of prior service cost (credit)
247

 
175

 
175

 
(137
)
 
(137
)
 
(137
)
Foreign currency translation
(190
)
 
187

 
(321
)
 

 

 

Net actuarial gain (loss) at end of year
$
(61,801
)
 
$
(39,125
)
 
$
(44,892
)
 
$
8,454

 
$
12,315

 
$
12,392


Schedule of components of net periodic benefit cost
Components of net periodic benefit cost were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
Year ended December 31, 
 
Year ended December 31, 
(in thousands)
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Components of net periodic benefit cost
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
8,839

 
$
9,067

 
$
9,217

 
$
574

 
$
657

 
$
955

Interest cost
10,937

 
11,897

 
11,832

 
557

 
490

 
713

Expected return on plan assets
(12,987
)
 
(13,041
)
 
(12,006
)
 

 

 

Curtailment income
(118
)
 
(97
)
 

 

 

 

Settlement expense
4,324

 
4,982

 
2,740

 

 

 

Amortization of net (gain) loss
1,530

 
1,687

 
804

 
(1,436
)
 
(1,540
)
 
(601
)
Amortization of prior service cost (credit)
247

 
175

 
175

 
(137
)
 
(137
)
 
(137
)
Net periodic benefit cost (credit)
$
12,772

 
$
14,670

 
$
12,762

 
$
(442
)
 
$
(530
)
 
$
930


Schedule of weighted average assumptions used to determine future benefit obligations and net periodic benefit cost
The weighted average assumptions used to determine benefit obligations at December 31, 2019 and 2018 were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
2019
 
2018
 
2019
 
2018
Discount rate
3.24
%
 
4.25
%
 
3.12
%
 
4.27
%
Rate of compensation increase
3.97
%
 
4.00
%
 
N/A

 
N/A

The weighted average assumptions used to determine net periodic benefit cost (credit) for the years ended December 31, 2019, 2018 and 2017 were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Discount rate
4.25
%
 
3.62
%
 
4.17
%
 
4.27
%
 
3.61
%
 
4.08
%
Expected long-term rate of return on plan assets
5.84
%
 
5.77
%
 
5.77
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
4.00
%
 
4.01
%
 
4.02
%
 
N/A

 
N/A

 
N/A


Schedule of assumed healthcare cost trend rates used to determine benefit obligations and net cost
The assumed healthcare cost trend rates used to determine benefit obligations and net periodic benefit cost (credit) for postretirement benefits as of and for the years ended December 31, 2019, 2018 and 2017 were as follows:
 
2019
 
2018
 
2017
Healthcare cost trend rate assumed for next year
6.03%/8.44%

 
6.25%/9.00%

 
5.50%/8.50%

Rate that the cost trend rate is assumed to decline
(the ultimate trend rate)
4.50
%
 
4.50
%
 
4.50
%
Year that the rate reaches the ultimate trend rate
2027

 
2027

 
2024


Schedule of one-percentage-point change in assumed healthcare cost trend rates A one-percentage-point change in assumed healthcare cost trend rates would have the following effects:
 
2019
 
2018
(in thousands)
One-Percentage
Point Increase
 
One-Percentage
Point Decrease
 
One-Percentage
Point Increase
 
One-Percentage
Point Decrease
Effect on total of service cost and interest cost
$
68

 
$
(61
)
 
$
72

 
$
(64
)
Effect on projected benefit obligation
710

 
(642
)
 
632

 
(572
)

Schedule of pension assets by major category of plan assets and type of fair value measurement
Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2019 were as follows:
(in thousands)
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Asset category
 
 
 
 
 
 
 
Individual securities
 
 
 
 
 
 
 
Fixed income
$
1,682

 
$

 
$
1,682

 
$

Commingled funds
 
 
 
 
 
 
 
Measured at net asset value
245,622

 

 

 

 
$
247,304

 
$

 
$
1,682

 
$

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2018 were as follows:
(in thousands)
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Asset category
 
 
 
 
 
 
 
Individual securities
 
 
 
 
 
 
 
Fixed income
$
1,682

 
$

 
$
1,682

 
$

Commingled funds
 
 
 
 
 
 
 
Measured at net asset value
215,062

 

 

 

 
$
216,744

 
$

 
$
1,682

 
$


Schedule of estimated future retirement benefit payments
The following retirement benefit payments, which reflect expected future service, are expected to be paid as follows:
(in thousands)
Pension
Benefits
 
Postretirement
Benefits
Year ending December 31,
 
 
 
2020
$
23,308

 
$
807

2021
22,808

 
981

2022
23,017

 
1,108

2023
26,913

 
1,165

2024
27,333

 
1,290

Thereafter
144,095

 
6,989

 
$
267,474

 
$
12,340


v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of components of income before income taxes
The components of income before income taxes were as follows:
 
Year ended December 31, 
(in thousands)
2019
 
2018
 
2017
Domestic operations
$
70,632

 
$
54,003

 
$
61,158

Foreign operations
94,533

 
96,301

 
90,518

Income before income taxes
$
165,165

 
$
150,304

 
$
151,676


Schedule of income tax expense
Income tax expense/ (benefit) was as follows:
 
Year ended December 31, 
(in thousands)
2019
 
2018
 
2017
Current expense (benefit)
 
 
 
 
 
United States
$
1,121

 
$
1,795

 
$
(906
)
Foreign
31,005

 
29,896

 
28,109

Current income tax expense
32,126

 
31,691

 
27,203

Deferred expense (benefit)
 
 
 
 
 
United States
9,539

 
16,222

 
21,189

Foreign
(1,065
)
 
(681
)
 
83

Deferred income tax expense
8,474

 
15,541

 
21,272

Total income tax expense
$
40,600

 
$
47,232

 
$
48,475


Schedule of reconciliation of income taxes
The following table represents a reconciliation of income taxes computed at the federal statutory income tax rate of 21% for 2019, 21% for 2018, and 35% for 2017 to income tax expense as reported:
 
Year ended December 31, 
(in thousands)
2019
 
2018
 
2017
Income tax expense computed at federal statutory income tax rate
$
34,685

 
$
31,564

 
$
53,086

Foreign taxes, net of credits
714

 
13,316

 
(16,840
)
Impact of the 2017 Tax Act

 
10,801

 
12,619

Net adjustments for uncertain tax positions
799

 
771

 
508

State and local taxes
1,832

 
2,349

 
1,313

Equity appreciation rights

 

 
(765
)
Nondeductible expenses
1,179

 
962

 
1,407

Valuation allowance
2,882

 
(10,038
)
 
90

Tax credits
(607
)
 
(2,800
)
 
(3,240
)
Miscellaneous other, net
(884
)
 
307

 
297

Income tax expense as reported
$
40,600

 
$
47,232

 
$
48,475

Effective income tax rate
24.6
%
 
31.4
%
 
32.0
%

Schedule of components of net deferred tax assets (liabilities)
The components of net deferred tax assets (liabilities) were as follows:
 
December 31, 
(in thousands)
2019
 
2018
Deferred tax assets
 
 
 
Compensation and benefits
$
13,208

 
$
14,036

Share-based compensation
2,682

 
7,446

Pension and other postretirement benefits
24,260

 
22,285

Inventories
15,379

 
11,505

R&D capitalization
12,925

 
6,449

Lease liability
9,669

 

Partnership investment
223

 
110

Transaction costs
1,365

 
1,580

Nondeductible accruals and reserves
6,907

 
7,248

Miscellaneous
2,802

 
2,379

Net operating loss and other tax carryforwards
74,586

 
80,671

Gross deferred tax assets
164,006

 
153,709

Valuation allowance
(18,424
)
 
(15,542
)
Total deferred tax assets
145,582

 
138,167

Deferred tax liabilities
 
 
 
Property, plant and equipment
(6,687
)
 
(8,057
)
Identifiable intangible assets
(62,349
)
 
(54,681
)
Right-of-use assets
(9,407
)
 

Foreign exchange derivative instruments
(154
)
 
(1,176
)
Miscellaneous
(1,281
)
 
(860
)
Total deferred tax liabilities
(79,878
)
 
(64,774
)
Net deferred tax asset
$
65,704

 
$
73,393


Schedule of changes in valuation allowance for deferred tax assets
Changes in the valuation allowance for deferred tax assets were as follows:
 
Year ended December 31, 
(in thousands)
2019
 
2018
 
2017
Valuation allowance at beginning of year
$
15,542

 
$
25,579

 
$
21,726

Increases (decreases) recorded to income tax provision
2,882

 
(10,037
)
 
3,853

Valuation allowance at end of year
$
18,424

 
$
15,542

 
$
25,579


Schedule of reconciliation of activity related to unrecognized tax benefits, excluding accrued interest and penalties The following table represents a reconciliation of the activity related to the unrecognized tax benefits, excluding accrued interest and penalties:
(in thousands)
2019
 
2018
 
2017
Unrecognized tax benefits at beginning of year
$
11,646

 
$
11,049

 
$
11,347

Gross additions - current year tax positions
787

 
801

 
1,159

Gross additions - acquired tax positions
659

 

 

Gross reductions - prior year tax positions
(248
)
 
(91
)
 
(348
)
Gross reductions - Acquired tax positions settled with tax authorities
(461
)
 
(113
)
 
(1,241
)
Impact of change in foreign exchange rates
(16
)
 

 
132

Unrecognized tax benefits at end of year
$
12,367

 
$
11,646

 
$
11,049


v3.19.3.a.u2
Common Stock (Tables)
12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Schedule of declared dividends per share
The Company declared dividends per common share, including DERs (Note 16), during the periods presented as follows:
 
Dividends
per Common Share
 
Amounts
(in thousands)
2019:
 

 
Fourth Quarter
$
0.14


$
10,718

Third Quarter
0.14


10,726

Second Quarter
0.14


10,751

First Quarter
0.14


10,782

Total dividends declared in 2019
$
0.56


$
42,977

 
 
 
 
2018:
 

 
 

Fourth Quarter
$
0.13

 
$
9,968

Third Quarter
0.13

 
9,954

Second Quarter
0.13

 
9,917

First Quarter
0.13

 
9,917

Total dividends declared in 2018
$
0.52

 
$
39,756

 
 
 
 
2017:
 

 
 

Fourth Quarter
$
0.12

 
$
9,098

Third Quarter
0.12

 
9,146

Second Quarter
0.12

 
9,149

First Quarter
0.12

 
9,152

Total dividends declared in 2017
$
0.48

 
$
36,545


Schedule of share repurchase activity
The Company's share repurchase activity was as follows:
 
 
Year ended
(in thousands, except share and per share amounts)
 
December 31, 2019
Shares repurchased in the open market:
 
 
Shares repurchased
 
591,983

Average price
 
$
26.31

Aggregate value
 
$
15,577

Shares repurchased from Magnus:
 
 
Shares repurchased
 
535,983

Average price (1)
 
$
25.70

Aggregate value
 
$
13,775

Total shares repurchased:
 
 
Shares repurchased
 
1,127,966

Average price
 
$
26.02

Aggregate value
 
$
29,352



_______________________________________________________________________________
(1) Average price including Magnus share repurchase liability was $26.31 as of December 31, 2019.
v3.19.3.a.u2
Equity Incentive Plans (Tables)
12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Summary of restricted and performance stock units
A summary of the Company’s RSUs and PSUs as of December 31, 2019 and 2018 and changes during the years then ended is presented below: 
 
 
Number
of
RSUs
 
Weighted-
Average
Fair
Value RSUs

Number
of
PSUs
 
Weighted-
Average
Fair
Value PSUs
Outstanding as of December 31, 2017
 
874,942

 
$
20.15


1,185,912

 
$
20.29

Granted
 
473,724

 
23.49



 

Vested (1)
 
(466,834
)
 
20.52


(900,226
)
 
20.29

Forfeited
 

 


(285,686
)
 
20.29

Outstanding as of December 31, 2018
 
881,832

 
$
21.75



 
$

Granted
 
655,522

 
23.51


207,077

 
23.47

Vested (2)
 
(567,836
)
 
20.81



 

Forfeited
 
(22,275
)
 
23.92



 

Outstanding as of December 31, 2019
 
947,243

 
$
23.49


207,077

 
$
23.47


_______________________________________________________________________________
(1) 
Included 63,490 shares of common stock related to RSUs and 900,226 shares of common stock related to PSUs that were not delivered as of December 31, 2018. The aggregate fair value of RSUs vested and PSUs vested was $10.0 million and $19.0 million, respectively.
(2) 
Included 161,165 shares of common stock related to RSUs and no shares of common stock related to PSUs that were not delivered as of December 31, 2019. The aggregate fair value of RSUs vested was $12.9 million.
Summary of shares of common stock issued
A summary of shares of common stock issued related to the 2015 Plan, including the impact of any DERs issued in common stock, is presented below:
 
 
Year ended
 
Year ended
 
 
December 31, 2019
 
December 31, 2018
 
 
RSUs
 
PSUs
 
RSUs
 
PSUs
Shares of common stock issued
 
410,787

 
900,226

 
403,538

 

Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations
 
(126,242
)
 
(325,246
)
 
(122,795)

 

Net shares of common stock issued
 
284,545

 
574,980

 
280,743

 

 
 
 
 
 
 
 
 
 
Cumulative undelivered shares of common stock
 
220,582

 

 
63,490

 
900,226


Schedule of the allocation of share-based compensation expense
Compensation expense recorded related to RSUs and PSUs in the consolidated statement of operations was as follows:
 
Year ended December 31,
(in thousands)
2019
 
2018
 
2017
RSU
$
9,140

 
$
12,353

 
$
9,318

PSU
1,507

 
6,210

 
5,967


The allocation of share-based compensation expense in the consolidated statement of operations was as follows:
 
Year ended December 31,
(in thousands)
2019

2018

2017
Cost of goods sold
$
722


$
680


$
408

Selling, general and administrative expense
9,402


16,507


13,687

Research and development
851


1,376


1,190

Total compensation expense before income tax
10,975


18,563


15,285

Income tax benefit
2,440


4,398


3,158

Total compensation expense, net of tax
$
8,535


$
14,165


$
12,127


v3.19.3.a.u2
Accumulated Other Comprehensive Loss, Net of Tax (Tables)
12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Schedule of changes in each component of accumulated comprehensive loss, net of tax effects
The components of and changes in accumulated other comprehensive loss, net of tax, were as follows:
(in thousands)
Foreign
Currency
Translation
Adjustments
 
Gains (Losses) on
Foreign Exchange Derivative
Instruments
 
Gains (Losses) on
Interest Rate Swap
Derivative
Instruments
 
Gains
on Available-
for-Sale
Securities
 
Pension and
Other
Postretirement
Adjustments
 
Accumulated
Other
Comprehensive
Loss
Balances as of December 31, 2017
$
(57,711
)
 
$
(2,280
)
 
$

 
$
1,721

 
$
(23,421
)
 
$
(81,691
)
Adoption of new accounting standards (Notes 2 & 14)
(2,171
)
 

 

 
(1,721
)
 
(2,240
)
 
(6,132
)
Other comprehensive income (loss) before reclassifications
(11,971
)
 
8,148

 
(1,926
)
 

 
620

 
(5,129
)
Amounts reclassified from accumulated other comprehensive loss, net of tax

 
1,410

 
476

 

 
5,070

 
6,956

Tax benefit (expense)

 
(2,020
)
 
352

 

 
(1,375
)
 
(3,043
)
Balances as of December 31, 2018
$
(71,853
)
 
$
5,258

 
$
(1,098
)
 
$

 
$
(21,346
)
 
$
(89,039
)
Other comprehensive income (loss) before reclassifications
666

 
5,490

 
(2,185
)
 

 
(31,065
)
 
(27,094
)
Amounts reclassified from accumulated other comprehensive loss, net of tax

 
(8,465
)
 
989

 

 
4,528

 
(2,948
)
Tax benefit

 
618

 
291

 

 
6,144

 
7,053

Balances as of December 31, 2019
$
(71,187
)
 
$
2,901

 
$
(2,003
)
 
$

 
$
(41,739
)
 
$
(112,028
)
 
v3.19.3.a.u2
Interest Expense, Net and Other Expense, Net (Tables)
12 Months Ended
Dec. 31, 2019
Interest Expense and Other (Income) Expense, Net  
Schedule of components of interest expense, net
The components of interest expense, net were as follows:
 
Year ended  December 31,
(in thousands)
2019
 
2018
 
2017
Third party interest expense
$
19,472

 
$
19,171

 
$
16,907

Loss on interest rate swap
989

 
476

 

Third party interest income
(848
)
 
(1,245
)
 
(1,198
)
Total interest expense, net
$
19,613

 
$
18,402

 
$
15,709


Schedule of components of other expense, net
The components of other expense, net were as follows:
 
Year ended  December 31,
(in thousands)
2019
 
2018
 
2017
Indemnification (gains) losses
$
(498
)
 
$
(258
)
 
$
177

Non-service cost component of net periodic benefit cost
2,917

 
4,416

 
3,520

Other income
(1,544
)
 
(529
)
 
(1,254
)
Total other expense, net
$
875

 
$
3,629

 
$
2,443


v3.19.3.a.u2
Net Income per Common Share (Tables)
12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Schedule of computation of basic and diluted net income per common share
The following is a computation of basic and diluted net income per common share attributable to Acushnet Holdings Corp.:
 
Year ended December 31,
(in thousands, except share and per share amounts)
2019
 
2018
 
2017
 
 
 
 
 
 
Net income attributable to Acushnet Holdings Corp.
$
121,070

 
$
99,872

 
$
98,695

 
 
 
 
 
 
Weighted average number of common shares:
 
 
 
 
 
Basic
75,418,204

 
74,766,176

 
74,399,836

Diluted
75,759,605

 
75,472,342

 
74,590,999

Net income per common share attributable to Acushnet Holdings Corp.:
 
 
 
 
 
Basic
$
1.61

 
$
1.34

 
$
1.33

Diluted
$
1.60

 
$
1.32

 
$
1.32


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:
 
Year ended December 31,
 
2019
 
2018
 
2017
RSUs
1,013

 
13,885

 
360,659


v3.19.3.a.u2
Segment Information (Tables)
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Schedule of information by reportable segment and a reconciliation to reported amounts
Information by reportable segment and a reconciliation to reported amounts are as follows:
 
Year ended  December 31,
(in thousands)
2019
 
2018
 
2017
Net sales
 
 
 
 
 
Titleist golf balls
$
551,596

 
$
523,967

 
$
512,041

Titleist golf clubs
434,357

 
445,341

 
397,987

Titleist golf gear
149,984

 
146,067

 
142,911

FootJoy golf wear
441,871

 
439,681

 
437,455

Other
103,549

 
78,665

 
69,864

Total net sales
$
1,681,357

 
$
1,633,721

 
$
1,560,258

Segment operating income
 
 
 
 
 
Titleist golf balls
$
93,305

 
$
78,973

 
$
78,419

Titleist golf clubs
38,811

 
45,156

 
32,084

Titleist golf gear
17,300

 
15,430

 
16,803

FootJoy golf wear
24,429

 
17,974

 
27,038

Other
15,043

 
15,560

 
14,904

Total segment operating income
188,888

 
173,093

 
169,248

Reconciling items:
 
 
 
 
 
Interest expense, net
(19,613
)
 
(18,402
)
 
(15,709
)
Non-service cost component of net periodic benefit cost
(2,917
)
 
(4,416
)
 
(3,520
)
Transaction fees
(2,654
)
 
(599
)
 
(686
)
Other
1,461

 
628

 
2,343

Total income before income tax
$
165,165

 
$
150,304

 
$
151,676


Depreciation and amortization expense by reportable segment
Depreciation and amortization expense by reportable segment are as follows:
 
Year ended  December 31,
(in thousands)
2019
 
2018
 
2017
Depreciation and amortization
 
 
 
 
 
Titleist golf balls
$
22,694

 
$
24,155

 
$
25,545

Titleist golf clubs
7,451

 
7,408

 
7,233

Titleist golf gear
1,603

 
1,531

 
1,425

FootJoy golf wear
6,451

 
6,731

 
6,058

Other
4,803

 
671

 
610

Total depreciation and amortization
$
43,002

 
$
40,496

 
$
40,871


Schedule of information as to the Company's operations in different geographical areas. Net sales are categorized based on the location in which the sale originates. Long-lived assets (property, plant and equipment) are categorized based on their location of domicile.
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.
 
Year ended  December 31,
(in thousands)
2019
 
2018
 
2017
Net sales
 
 
 
 
 
United States
$
884,791

 
$
826,111

 
$
789,879

EMEA (1)
230,465

 
219,803

 
205,200

Japan
182,681

 
199,107

 
201,264

Korea
223,365

 
221,146

 
200,394

Rest of world
160,055

 
167,554

 
163,521

Total net sales
$
1,681,357

 
$
1,633,721

 
$
1,560,258

___________________________________
(1) Europe, the Middle East and Africa (“EMEA”)
Long-lived assets (property, plant and equipment, net) categorized based on their location of domicile are as follows:
 
Year ended December 31,
(in thousands)
2019
 
2018
Long-lived assets
 
 
 
United States
$
148,883

 
$
146,596

EMEA
11,906

 
9,472

Japan
663

 
764

Korea
7,441

 
5,682

Rest of world (2)
62,682

 
65,874

Total long-lived assets
$
231,575

 
$
228,388

___________________________________
(2) Includes manufacturing facilities in Thailand with long lived assets of $49.4 million and $52.2 million as of December 31, 2019 and 2018, respectively.
v3.19.3.a.u2
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Schedule of purchase obligations
Purchase obligations by the Company as of December 31, 2019 were as follows:
 
Payments Due by Period
(in thousands)
2020
 
2021
 
2022
 
2023
 
2024
 
Thereafter
Purchase obligations
$
128,242

 
$
11,173

 
$
2,269

 
$
646

 
$
450

 
$
1,603


v3.19.3.a.u2
Unaudited Quarterly Financial Data (Tables)
12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Tabular disclosures of summary of quarterly results
The table below summarizes quarterly results for fiscal 2019:
 
Quarter ended (unaudited)
(in thousands)
December 31,
 
September 30,
 
June 30,
 
March 31,
2019
 
 
 
 
 
 
 
Net sales
$
368,271

 
$
417,166

 
$
462,218

 
$
433,702

Gross profit
186,691

 
217,344

 
246,043

 
222,157

Income from operations
28,565

 
43,726

 
61,135

 
52,227

Net income
19,618

 
30,006

 
38,902

 
36,039

Net income attributable to Acushnet Holdings Corp.
17,859

 
29,797

 
38,488

 
34,926

Net income per common share attributable to Acushnet Holdings Corp.:
 
 
 
 
 
 
 
Basic
$
0.24

 
$
0.40

 
$
0.51

 
$
0.46

Diluted
$
0.24

 
$
0.39

 
$
0.51

 
$
0.46

 
The table below summarizes quarterly results for fiscal 2018:
 
Quarter ended (unaudited)
(in thousands)
December 31,
 
September 30,
 
June 30,
 
March 31,
2018
 
 
 
 
 
 
 
Net sales
$
343,355

 
$
370,427

 
$
478,138

 
$
441,801

Gross profit
174,929

 
188,938

 
250,810

 
227,674

Income from operations
19,599

 
25,873

 
64,579

 
62,284

Net income
12,264

 
7,349

 
40,369

 
43,090

Net income attributable to Acushnet Holdings Corp.
11,418

 
7,063

 
39,907

 
41,484

Net income per common share attributable to Acushnet Holdings Corp.:
 
 
 
 
 
 
 
Basic
$
0.15

 
$
0.09

 
$
0.53

 
$
0.56

Diluted
$
0.15

 
$
0.09

 
$
0.53

 
$
0.55


v3.19.3.a.u2
Description of Business (Details)
Nov. 02, 2016
$ / shares
Class of Stock, Common | Initial public offering  
Initial public offering  
Share price (in dollars per share) $ 17.00
v3.19.3.a.u2
Summary of Significant Accounting Policies (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Jan. 01, 2019
Jan. 01, 2018
Cash and Restricted Cash          
Restricted cash $ 2,000,000.0 $ 2,000,000      
Goodwill and Indefinite-Lived Intangible Assets          
Impairment of goodwill 0 0 $ 0    
impairment of indefinite-lived intangible assets 0 0 0    
Selling          
Shipping and handling costs included in selling expenses 627,503,000 611,883,000 578,289,000    
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]          
Operating lease, right-of-use assets 44,407,000        
Present value of lease liabilities $ 45,473,000        
Renewal terms (up to) 3 years        
Adjustment for new accounting standards         $ (1,501,000)
Accounting Standards Update 2016-02          
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]          
Operating lease, right-of-use assets       $ 49,800,000  
Present value of lease liabilities       $ 51,200,000  
Accumulated Other Comprehensive Loss          
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]          
Adjustment for new accounting standards         (6,132,000)
Accumulated Other Comprehensive Loss | Accounting Standards Update 2016-01          
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]          
Adjustment for new accounting standards         $ 2,100,000
Shipping and Handling          
Selling          
Shipping and handling costs included in selling expenses $ 36,700,000 34,100,000 32,500,000    
Selling, general and administrative          
Advertising and Promotion          
Advertising and promotional expense 193,500,000 192,200,000 192,700,000    
Foreign currency translation and transactions          
Transaction gain (loss) included in selling, general and administrative expense $ (500,000) (1,900,000) $ 4,100,000    
Minimum          
Product Warranty          
Product warranty duration 1 year        
Maximum          
Product Warranty          
Product warranty duration 2 years        
Deposits          
Concentration of Credit Risk and of Significant Customers          
Concentration risk, amount in banks located outside the United States $ 30,000,000.0 28,600,000      
Accounts payable          
Cash and Restricted Cash          
Book overdrafts $ 2,400,000 2,200,000      
VIE          
Variable interest entities          
Ownership percentage 40.00%        
Outstanding balance $ 0 $ 0      
v3.19.3.a.u2
Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details)
12 Months Ended
Dec. 31, 2019
Minimum  
Property, Plant and Equipment [Line Items]  
Weighted average useful life 3 years
Maximum  
Property, Plant and Equipment [Line Items]  
Weighted average useful life 10 years
Buildings and improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 15 years
Buildings and improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 40 years
Machinery and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 3 years
Machinery and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 10 years
Furniture, fixtures and computer hardware | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 3 years
Furniture, fixtures and computer hardware | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 10 years
Computer software | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 1 year
Computer software | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 10 years
v3.19.3.a.u2
Revenue (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 01, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Net reduction to opening retained earnings   $ (151,039) $ (72,946)  
Increase in cost of sales   $ 809,122 791,370 $ 758,401
Period over which revenue is generally recognized for customer sales incentives (within)   1 year    
Minimum        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Term of majority of contracts   30 days    
Maximum        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Term of majority of contracts   60 days    
Term of contract   1 year    
Accounting Standards Update 2014-09        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Refund liability for expected returns   $ 10,200 9,800  
Inventory expected to be recovered related to sales returns   $ 6,100 $ 5,700  
Accounting Standards Update 2014-09 | Difference Between Revenue Guidance in Effect Before and After Topic 606        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Net reduction to opening retained earnings $ 1,600      
Increase in net sales 4,300      
Increase in cost of sales $ 2,300      
v3.19.3.a.u2
Leases - Components of Lease Cost (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2019
USD ($)
Lessee, Lease, Description [Line Items]  
Finance Lease costs, Amortization of lease assets $ 8
Finance Lease costs, Interest on lease liabilities 2
Total lease cost 14,919
Cost of goods sold  
Lessee, Lease, Description [Line Items]  
Operating Lease costs 2,361
Selling, general and administrative  
Lessee, Lease, Description [Line Items]  
Operating Lease costs 11,775
Research and development  
Lessee, Lease, Description [Line Items]  
Operating Lease costs $ 773
v3.19.3.a.u2
Leases - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Leases [Abstract]    
Rental expense $ 15.7 $ 16.3
v3.19.3.a.u2
Leases - Supplemental Balance Sheet Information (Details)
$ in Thousands
Dec. 31, 2019
USD ($)
Right-of-use assets  
Operating, Right-of-use assets $ 44,407
Finance, Right-of-use assets 281
Total lease assets 44,688
Lease liabilities  
Operating, Lease liabilities current 11,336
Finance, Lease liabilities current 8
Operating, Lease liabilities noncurrent 34,137
Finance, Lease liabilities noncurrent 273
Total lease liabilities $ 45,754
v3.19.3.a.u2
Leases - Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details)
Dec. 31, 2019
Weighted average remaining lease term (years):  
Weighted-average remaining lease term, operating leases 5 years 9 months 18 days
Weighted-average remaining lease term, finance leases 5 years 10 months 24 days
Weighted average discount rate:  
Weighted-average discount rate, operating leases 3.42%
Weighted-average discount rate, finance leases 4.18%
v3.19.3.a.u2
Leases - Reconciliation of Lease Liabilities (Details)
$ in Thousands
Dec. 31, 2019
USD ($)
Operating Leases  
2020 $ 14,173
2021 10,321
2022 6,740
2023 3,889
2024 3,264
Thereafter 12,379
Total future lease payments 50,766
Less: Interest (5,293)
Total lease liabilities 45,473
Accrued expenses and other liabilities 11,336
Other noncurrent liabilities 34,137
Long-term debt 0
Finance Leases  
2020 59
2021 57
2022 55
2023 53
2024 51
Thereafter 41
Total future lease payments 316
Less: Interest (35)
Present value of lease liabilities 281
Accrued expenses and other liabilities 8
Other noncurrent liabilities 0
Long-term debt 273
Total  
2020 14,232
2021 10,378
2022 6,795
2023 3,942
2024 3,315
Thereafter 12,420
Total future lease payments 51,082
Less: Interest (5,328)
Total lease liabilities 45,754
Accrued expenses and other liabilities 11,344
Other noncurrent liabilities 34,137
Long-term debt $ 273
v3.19.3.a.u2
Leases - Future Minimum Rental Payments (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
Year ending December 31,  
2019 $ 13,119
2020 11,053
2021 7,984
2022 5,345
2023 3,133
Thereafter 13,852
Total minimum rental payments $ 54,486
v3.19.3.a.u2
Leases - Supplemental Cash Flow Information (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2019
USD ($)
Cash paid for amounts included in the measurement of lease liabilities:  
Operating cash flows for operating leases $ 14,804
Operating cash flows for finance leases 2
Financing cash flows for finance leases 8
Non-cash right-of-use assets obtained in exchange for lease obligations:  
Operating leases 9,530
Finance leases $ 289
v3.19.3.a.u2
Allowance for Doubtful Accounts (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Balance at beginning of year $ 7,272 $ 9,975 $ 12,255
Bad debt expense 573 (583) 337
Amount of receivables written off (2,706) (1,873) (3,300)
Foreign currency translation and other 199 (247) 683
Balance at end of year $ 5,338 $ 7,272 $ 9,975
v3.19.3.a.u2
Inventories (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Inventory Disclosure [Abstract]    
Raw materials and supplies $ 87,675 $ 71,068
Work-in-process 22,024 21,763
Finished goods 288,669 268,376
Inventories $ 398,368 $ 361,207
v3.19.3.a.u2
Property, Plant and Equipment, Net (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment, Net      
Property, plant and equipment, gross $ 468,153    
Property, plant and equipment, gross   $ 436,256  
Accumulated depreciation and amortization (236,578)    
Accumulated depreciation and amortization   (207,868)  
Property, plant and equipment, net 231,575    
Property, plant and equipment, net   228,388  
Software development cost capitalized      
Software development cost capitalized 11,800 4,100 $ 3,100
Depreciation and amortization      
Amortization expense, capitalized software and development 6,600 6,300 6,400
Total depreciation and amortization expense 43,002 40,496 40,871
Property, plant and equipment      
Depreciation and amortization      
Total depreciation and amortization expense 32,400 32,200 31,600
Land      
Property, Plant and Equipment, Net      
Property, plant and equipment, gross 14,551    
Property, plant and equipment, gross   14,515  
Buildings and improvements      
Property, Plant and Equipment, Net      
Property, plant and equipment, gross 146,727    
Property, plant and equipment, gross   142,113  
Machinery and equipment      
Property, Plant and Equipment, Net      
Property, plant and equipment, gross 171,230    
Property, plant and equipment, gross   160,707  
Furniture, computers and equipment      
Property, Plant and Equipment, Net      
Property, plant and equipment, gross 40,143    
Property, plant and equipment, gross   36,405  
Computer software      
Property, Plant and Equipment, Net      
Property, plant and equipment, gross 70,458    
Property, plant and equipment, gross   62,517  
Construction in progress      
Property, Plant and Equipment, Net      
Property, plant and equipment, gross 25,044    
Property, plant and equipment, gross   19,999  
Software development cost capitalized      
Software development cost capitalized 4,600 2,400 700
Software placed into service      
Software development cost capitalized      
Software development cost capitalized $ 7,200 $ 1,700 $ 2,400
v3.19.3.a.u2
Goodwill and Identifiable Intangible Assets, Net - Net carrying value & reportable segments (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Net carrying value of goodwill    
Balances at beginning of year $ 209,671 $ 203,403
Acquisitions (Note 21) 4,749 9,563
Foreign currency translation (364) (3,295)
Balances at end of year 214,056 209,671
Operating segments | Titleist golf balls    
Net carrying value of goodwill    
Balances at beginning of year 126,195 119,634
Acquisitions (Note 21) 0 8,492
Foreign currency translation (214) (1,931)
Balances at end of year 125,981 126,195
Operating segments | Titleist golf clubs    
Net carrying value of goodwill    
Balances at beginning of year 57,152 58,101
Acquisitions (Note 21) 0 0
Foreign currency translation (104) (949)
Balances at end of year 57,048 57,152
Operating segments | Titleist golf gear    
Net carrying value of goodwill    
Balances at beginning of year 13,866 14,088
Acquisitions (Note 21) 0 0
Foreign currency translation (25) (222)
Balances at end of year 13,841 13,866
Operating segments | FootJoy golf wear    
Net carrying value of goodwill    
Balances at beginning of year 3,613 2,585
Acquisitions (Note 21) 0 1,071
Foreign currency translation (5) (43)
Balances at end of year 3,608 3,613
Other    
Net carrying value of goodwill    
Balances at beginning of year 8,845 8,995
Acquisitions (Note 21) 4,749 0
Foreign currency translation (16) (150)
Balances at end of year $ 13,578 $ 8,845
v3.19.3.a.u2
Goodwill and Identifiable Intangible Assets, Net - Net Carrying Value by Class (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Accumulated Amortization $ (88,268,000) $ (80,701,000)  
Total 51,743,000    
Intangible assets, Gross 569,062,000 558,958,000  
Intangible assets, net 480,794,000 478,257,000  
Impairment of goodwill 0 0 $ 0
Impairment charges to indefinite-lived intangible assets 0 0 0
Amortization of identifiable intangible assets 7,500,000 8,000,000.0 9,300,000
Trademarks      
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Finite lived intangible assets, Gross 5,503,000 1,600,000  
Accumulated Amortization (492,000) (50,000)  
Total 5,011,000 1,550,000  
Additions to identifiable intangible assets as a result of acquisitions $ 3,900,000 $ 1,600,000  
Weighted average useful life 8 years 8 years  
Completed technology      
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Finite lived intangible assets, Gross $ 74,715,000 $ 73,900,000  
Accumulated Amortization (46,370,000) (41,017,000)  
Total 28,345,000 32,883,000  
Additions to identifiable intangible assets as a result of acquisitions $ 800,000    
Weighted average useful life 6 years    
Customer relationships      
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Finite lived intangible assets, Gross $ 27,127,000 22,023,000  
Accumulated Amortization (8,923,000) (7,250,000)  
Total 18,204,000 14,773,000  
Additions to identifiable intangible assets as a result of acquisitions $ 5,100,000 $ 2,700,000  
Weighted average useful life 7 years 8 years  
Licensing fees and other      
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Finite lived intangible assets, Gross $ 32,666,000 $ 32,384,000  
Accumulated Amortization (32,483,000) (32,384,000)  
Total 183,000 0  
Licensing fees and other | Cost of goods sold      
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Amortization of identifiable intangible assets   1,400,000 $ 2,700,000
Other intangible assets      
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Additions to identifiable intangible assets as a result of acquisitions $ 200,000    
Weighted average useful life 5 years    
Trademarks      
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Indefinite lived intangible assets $ 429,051,000 429,051,000  
Additions to identifiable intangible assets as a result of acquisitions   $ 1,000,000.0  
v3.19.3.a.u2
Goodwill and Identifiable Intangible Assets, Net - Class of identifiable intangible assets (Details)
$ in Thousands
Dec. 31, 2019
USD ($)
Amortization expense related to intangible assets  
2020 $ 7,835
2021 7,835
2022 7,835
2023 7,835
2024 7,815
Thereafter 12,588
Total $ 51,743
v3.19.3.a.u2
Product Warranty (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Activity for accrued warranty expense      
Balance at beginning of year $ 3,331 $ 3,823 $ 3,526
Provision 6,863 5,909 5,801
Claims paid/costs incurred (6,481) (6,315) (5,653)
Foreign currency translation and other 335 (86) 149
Balance at end of year $ 4,048 $ 3,331 $ 3,823
v3.19.3.a.u2
Debt and Financing Arrangements - Schedule of debt and financing arrangements (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 23, 2019
Dec. 31, 2018
Debt and financing arrangements      
Other short-term borrowings $ 3,802   $ 920
Long-term debt 273    
Finance lease obligations     0
Debt issuance costs (2,072) $ (2,300) (2,266)
Total 402,324   383,498
Total long-term debt and finance lease obligations 330,701   346,953
Less: short-term debt and current portion of long-term debt 71,623   36,545
Term loan facility      
Debt and financing arrangements      
Long-term debt, gross 350,000   0
Debt issuance costs (2,100)    
Term loan A facility and delayed draw facility      
Debt and financing arrangements      
Debt issuance costs     (2,300)
Term loan A facility      
Debt and financing arrangements      
Long-term debt, gross 0   330,469
Delayed draw term loan A facility      
Debt and financing arrangements      
Long-term debt, gross 0   54,375
Debt issuance costs     (2,300)
Revolving credit facility      
Debt and financing arrangements      
Long-term debt, gross $ 50,321   $ 0
v3.19.3.a.u2
Debt and Financing Arrangements - Senior Secured Credit Facility (Details)
3 Months Ended 12 Months Ended
Dec. 23, 2019
USD ($)
Mar. 31, 2017
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 23, 2019
CAD ($)
Dec. 23, 2019
GBP (£)
Jun. 30, 2018
USD ($)
Apr. 27, 2016
USD ($)
Apr. 27, 2016
CAD ($)
Apr. 27, 2016
GBP (£)
Line of Credit Facility [Line Items]                      
Debt issuance costs $ 2,300,000   $ 2,072,000 $ 2,266,000              
Variable rate of interest 0.25%                    
Incurred fees and expenses $ 2,700,000                    
Interest expense, debt     400,000                
Proceeds from delayed draw term loan A facility     $ 0 $ 0 $ 100,000,000            
Maximum                      
Line of Credit Facility [Line Items]                      
Beneficial ownership percentage for change of control     35.00%                
Unsecured Debt                      
Line of Credit Facility [Line Items]                      
Weighted average interest rate     2.29% 3.25%              
Senior Secured Credit Facility                      
Line of Credit Facility [Line Items]                      
Debt issuance costs               $ 400,000      
Contingent maximum increase to borrowing capacity $ 225,000,000.0                    
Net average secured leverage ratio 2.25         2.25 2.25        
Secured leverage ratio 3.50         3.50 3.50        
Initial commitment fee rate 0.20%                    
Increase in leverage ratio 3.75         3.75 3.75        
Interest coverage ratio 3.00         3.00 3.00        
Interest expense, debt     $ 400,000                
Senior Secured Credit Facility | Minimum                      
Line of Credit Facility [Line Items]                      
Variable rate of interest 0.00%                    
Leverage ratio basis spread 0.05%                    
Senior Secured Credit Facility | Weighted Average                      
Line of Credit Facility [Line Items]                      
Leverage ratio basis spread 0.15%                    
Senior Secured Credit Facility | Maximum                      
Line of Credit Facility [Line Items]                      
Variable rate of interest 0.75%                    
Leverage ratio basis spread 0.30%                    
Senior Secured Credit Facility | CDOR                      
Line of Credit Facility [Line Items]                      
Variable rate of interest 1.00%                    
Senior Secured Credit Facility | CDOR | Minimum                      
Line of Credit Facility [Line Items]                      
Leverage ratio basis spread 1.00%                    
Senior Secured Credit Facility | CDOR | Maximum                      
Line of Credit Facility [Line Items]                      
Leverage ratio basis spread 1.75%                    
Senior Secured Credit Facility | Term loan                      
Line of Credit Facility [Line Items]                      
Percentage of original principal amount payable 5.00%                    
Percentage of net cash proceeds of all non ordinary course asset sales 100.00%                    
Period of reinvest net cash proceeds from day of receipt 12 months                    
Percentage of net proceeds of issuance or incurrence of debt 100.00%                    
Senior Secured Credit Facility | Term loan | Maximum                      
Line of Credit Facility [Line Items]                      
Period of reinvest net cash proceeds from day of receipt 18 months                    
Senior Secured Credit Facility | Letters of credit                      
Line of Credit Facility [Line Items]                      
Maximum borrowing capacity $ 50,000,000.0               $ 25,000,000.0    
Senior Secured Credit Facility | Letters of credit | Acushnet Canada                      
Line of Credit Facility [Line Items]                      
Maximum borrowing capacity                   $ 35,000,000.0  
Senior Secured Credit Facility | Letters of credit | Acushnet Europe                      
Line of Credit Facility [Line Items]                      
Maximum borrowing capacity | £                     £ 30,000,000.0
Revolving credit facility                      
Line of Credit Facility [Line Items]                      
Maximum borrowing capacity 400,000,000.0               275,000,000.0    
Outstanding balance     $ 44,000,000.0                
Weighted average interest rate     3.54%                
Available borrowing capacity     $ 338,500,000                
Revolving credit facility | Equity Appreciation Rights                      
Line of Credit Facility [Line Items]                      
Proceeds from credit facility   $ 47,800,000                  
Revolving credit facility | Acushnet Canada                      
Line of Credit Facility [Line Items]                      
Maximum borrowing capacity           $ 50,000,000.0          
Revolving credit facility | Acushnet Europe                      
Line of Credit Facility [Line Items]                      
Maximum borrowing capacity | £             £ 45,000,000.0        
Revolving credit facility | Letters of credit                      
Line of Credit Facility [Line Items]                      
Outstanding balance     11,200,000                
Swing line                      
Line of Credit Facility [Line Items]                      
Maximum borrowing capacity $ 50,000,000.0               25,000,000.0    
Swing line | Federal funds rate                      
Line of Credit Facility [Line Items]                      
Variable rate of interest 0.50%                    
Alternative Currency Sublimit                      
Line of Credit Facility [Line Items]                      
Maximum borrowing capacity $ 200,000,000.0               100,000,000.0    
Term loan facility                      
Line of Credit Facility [Line Items]                      
Debt issuance costs     2,100,000                
Maximum borrowing capacity $ 350,000,000.0               375,000,000.0    
Term loan A facility                      
Line of Credit Facility [Line Items]                      
Outstanding balance     309,400,000                
Delayed draw term loan A facility                      
Line of Credit Facility [Line Items]                      
Debt issuance costs       $ 2,300,000              
Maximum borrowing capacity                 $ 100,000,000.0    
Outstanding balance     $ 48,800,000                
Delayed draw term loan A facility | Equity Appreciation Rights                      
Line of Credit Facility [Line Items]                      
Proceeds from delayed draw term loan A facility   $ 100,000,000.0                  
Delayed draw term loan A facility | Term loan                      
Line of Credit Facility [Line Items]                      
Variable rate of interest       4.02%              
Effective interest rate     3.04%                
Letters of credit                      
Line of Credit Facility [Line Items]                      
Maximum borrowing capacity     $ 59,800,000 $ 29,200,000              
Outstanding balance     $ 14,800,000 $ 15,500,000              
v3.19.3.a.u2
Debt and Financing Arrangements - Other Short-Term Borrowings (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Short-term Debt [Line Items]    
Available borrowings remaining $ 3,802 $ 920
Unsecured Facilities    
Short-term Debt [Line Items]    
Weighted average interest rate 2.29% 3.25%
Available borrowings remaining $ 60,100  
v3.19.3.a.u2
Debt and Financing Arrangements - Letters of Credit (Details) - Letters of credit - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Outstanding balance $ 14,800,000 $ 15,500,000
Line of credit secured 11,600,000 12,400,000
Maximum borrowing capacity $ 59,800,000 $ 29,200,000
v3.19.3.a.u2
Debt and Financing Arrangements - Payments of Debt Obligations due by Period (Details)
$ in Thousands
Dec. 31, 2019
USD ($)
Payments of Debt Obligations due by Period  
2020 $ 17,500
2021 17,500
2022 17,500
2023 17,500
2024 280,000
Total $ 350,000
v3.19.3.a.u2
Derivative Financial Instruments - Fair value of foreign exchange derivative instruments in consolidated balance sheets (Details)
12 Months Ended
Dec. 31, 2019
USD ($)
derivative
Dec. 31, 2018
USD ($)
derivative
Foreign exchange forward | Maximum    
Derivatives, Fair Value [Line Items]    
Term of derivative contract 24 months  
Foreign exchange forward | Derivative designated as hedging    
Derivatives, Fair Value [Line Items]    
Notional amount $ 287,900,000 $ 312,800,000
Foreign exchange forward | Derivative designated as hedging | Other current assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives 4,549,000 6,116,000
Foreign exchange forward | Derivative designated as hedging | Other noncurrent assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives 1,109,000 1,015,000
Foreign exchange forward | Derivative designated as hedging | Accrued expenses and other liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives 2,561,000 578,000
Foreign exchange forward | Derivative designated as hedging | Other noncurrent liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives $ 115,000 $ 161,000
Foreign exchange forward | Derivative not designated as hedging    
Derivatives, Fair Value [Line Items]    
Number of outstanding contracts | derivative 0 0
Interest rate swap | Derivative designated as hedging    
Derivatives, Fair Value [Line Items]    
Notional amount $ 160,000,000.0 $ 185,000,000.0
Interest rate swap | Derivative designated as hedging | Accrued expenses and other liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives 1,862,000 526,000
Interest rate swap | Derivative designated as hedging | Other noncurrent liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives $ 789,000 $ 925,000
v3.19.3.a.u2
Derivative Financial Instruments - Effect of foreign exchange derivative instruments in comprehensive loss and statement of operations (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Other Comprehensive Loss $ 3,305    
Gain (Loss) Recognized in Other Comprehensive Loss   $ 6,222 $ (15,558)
Expected reclassification of gain (loss) recorded in accumulated other comprehensive loss into cost of goods sold during next twelve months 3,000    
Cash flow hedge | Derivative designated as hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Other Comprehensive Loss 3,305    
Gain (Loss) Recognized in Other Comprehensive Loss   6,222 (15,558)
Foreign exchange forward | Derivative designated as hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) recognized on unaudited condensed consolidated statements of operations 8,669 255 (1,403)
Foreign exchange forward | Derivative designated as hedging | Cost of goods sold      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) recognized on unaudited condensed consolidated statements of operations 8,465 (1,410) 1,329
Foreign exchange forward | Derivative designated as hedging | Selling, general and administrative      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) recognized on unaudited condensed consolidated statements of operations 204 1,665 (2,732)
Foreign exchange forward | Cash flow hedge | Derivative designated as hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Other Comprehensive Loss 5,490    
Gain (Loss) Recognized in Other Comprehensive Loss   8,148 (15,558)
Interest rate swap      
Derivative Instruments, Gain (Loss) [Line Items]      
Expected reclassification of gain (loss) recorded in accumulated other comprehensive loss into cost of goods sold during next twelve months (1,900)    
Interest rate swap | Derivative designated as hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) recognized on unaudited condensed consolidated statements of operations (989) (476) 0
Interest rate swap | Derivative designated as hedging | Interest expense, net      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) recognized on unaudited condensed consolidated statements of operations (989) (476) 0
Interest rate swap | Cash flow hedge | Derivative designated as hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Other Comprehensive Loss $ (2,185)    
Gain (Loss) Recognized in Other Comprehensive Loss   $ (1,926) $ 0
v3.19.3.a.u2
Fair Value Measurements - Assets and liabilities at fair value (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Level 1    
Assets    
Total assets $ 6,940 $ 9,637
Liabilities    
Liabilities 870 1,222
Level 1 | Other current assets    
Assets    
Rabbi trust 6,070 8,415
Level 1 | Other noncurrent assets    
Assets    
Deferred compensation program assets 870 1,222
Level 1 | Other noncurrent liabilities    
Liabilities    
Deferred compensation program liabilities 870 1,222
Level 2    
Assets    
Total assets 5,658 7,131
Liabilities    
Liabilities 5,327 2,190
Level 2 | Other current assets    
Assets    
Rabbi trust 0 0
Level 2 | Other noncurrent assets    
Assets    
Deferred compensation program assets 0 0
Level 2 | Other noncurrent liabilities    
Liabilities    
Deferred compensation program liabilities 0 0
Level 3    
Assets    
Total assets 0 0
Liabilities    
Liabilities 0 0
Level 3 | Other current assets    
Assets    
Rabbi trust 0 0
Level 3 | Other noncurrent assets    
Assets    
Deferred compensation program assets 0 0
Level 3 | Other noncurrent liabilities    
Liabilities    
Deferred compensation program liabilities 0 0
Foreign exchange derivative instruments | Level 1 | Other current assets    
Assets    
Derivative asset 0 0
Foreign exchange derivative instruments | Level 1 | Other noncurrent assets    
Assets    
Derivative asset 0 0
Foreign exchange derivative instruments | Level 1 | Accrued expenses and other liabilities    
Liabilities    
Derivative liability 0 0
Foreign exchange derivative instruments | Level 1 | Other noncurrent liabilities    
Liabilities    
Derivative liability 0 0
Foreign exchange derivative instruments | Level 2 | Other current assets    
Assets    
Derivative asset 4,549 6,116
Foreign exchange derivative instruments | Level 2 | Other noncurrent assets    
Assets    
Derivative asset 1,109 1,015
Foreign exchange derivative instruments | Level 2 | Accrued expenses and other liabilities    
Liabilities    
Derivative liability 2,561 578
Foreign exchange derivative instruments | Level 2 | Other noncurrent liabilities    
Liabilities    
Derivative liability 115 161
Foreign exchange derivative instruments | Level 3 | Other current assets    
Assets    
Derivative asset 0 0
Foreign exchange derivative instruments | Level 3 | Other noncurrent assets    
Assets    
Derivative asset 0 0
Foreign exchange derivative instruments | Level 3 | Accrued expenses and other liabilities    
Liabilities    
Derivative liability 0 0
Foreign exchange derivative instruments | Level 3 | Other noncurrent liabilities    
Liabilities    
Derivative liability 0 0
Interest rate swap derivative instrument | Level 1 | Accrued expenses and other liabilities    
Liabilities    
Derivative liability 0 0
Interest rate swap derivative instrument | Level 1 | Other noncurrent liabilities    
Liabilities    
Derivative liability 0 0
Interest rate swap derivative instrument | Level 2 | Accrued expenses and other liabilities    
Liabilities    
Derivative liability 1,862 526
Interest rate swap derivative instrument | Level 2 | Other noncurrent liabilities    
Liabilities    
Derivative liability 789 925
Interest rate swap derivative instrument | Level 3 | Accrued expenses and other liabilities    
Liabilities    
Derivative liability 0 0
Interest rate swap derivative instrument | Level 3 | Other noncurrent liabilities    
Liabilities    
Derivative liability $ 0 $ 0
v3.19.3.a.u2
Pension and Other Postretirement Benefits (Details)
12 Months Ended
Dec. 31, 2019
Minimum  
Pension and Other Postretirement Benefits  
Age limit 50 years
Maximum  
Pension and Other Postretirement Benefits  
Age limit 65 years
v3.19.3.a.u2
Pension and Other Postretirement Benefits - Plan assets and funded status (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Pension Benefits      
Change in projected benefit obligation (PBO)      
Service cost $ 8,839 $ 9,067 $ 9,217
Interest cost 10,937 11,897 11,832
Change in plan assets      
Fair value of plan assets at beginning of year 216,744    
Fair value of plan assets at end of year 247,304 216,744  
Postretirement Benefits      
Change in projected benefit obligation (PBO)      
Projected benefit obligation at beginning of year 14,412 16,052  
Service cost 574 657 955
Interest cost 557 490 713
Actuarial gain (loss) 2,288 (1,600)  
Curtailments 0 0  
Settlements 0 0  
Plan amendments 0 0  
Participants’ contributions 498 378  
Benefit payments (1,504) (1,565)  
Foreign currency translation 0 0  
Projected benefit obligation at end of year 16,825 14,412 16,052
Accumulated benefit obligation at end of year 16,825 14,412  
Change in plan assets      
Fair value of plan assets at beginning of year 0 0  
Return on plan assets 0 0  
Employer contributions 1,006 1,187  
Participants’ contributions 498 378  
Settlements 0 0  
Benefit payments (1,504) (1,565)  
Foreign currency translation 0 0  
Fair value of plan assets at end of year 0 0 0
Funded status (fair value of plan assets less PBO) (16,825) (14,412)  
Underfunded | Pension Benefits      
Change in projected benefit obligation (PBO)      
Projected benefit obligation at beginning of year 274,821 316,882  
Service cost 8,839 9,067  
Interest cost 10,208 11,040  
Actuarial gain (loss) 47,077 (22,436)  
Curtailments (116) (177)  
Settlements (27,438) (36,244)  
Plan amendments 1,464 0  
Participants’ contributions 0 0  
Benefit payments (2,605) (2,990)  
Foreign currency translation 290 (321)  
Projected benefit obligation at end of year 312,540 274,821 316,882
Accumulated benefit obligation at end of year 282,986 240,270  
Change in plan assets      
Fair value of plan assets at beginning of year 176,044 183,093  
Return on plan assets 33,799 (11,863)  
Employer contributions 24,540 44,105  
Participants’ contributions 0 0  
Settlements (27,438) (36,244)  
Benefit payments (2,605) (2,990)  
Foreign currency translation 9 (57)  
Fair value of plan assets at end of year 204,349 176,044 183,093
Funded status (fair value of plan assets less PBO) (108,191) (98,777)  
Overfunded | Pension Benefits      
Change in projected benefit obligation (PBO)      
Projected benefit obligation at beginning of year 25,629 35,468  
Service cost 0 0  
Interest cost 729 857  
Actuarial gain (loss) 2,628 (5,255)  
Curtailments 0 0  
Settlements 0 (3,507)  
Plan amendments 0 285  
Participants’ contributions 0 0  
Benefit payments (639) (580)  
Foreign currency translation 742 (1,639)  
Projected benefit obligation at end of year 29,089 25,629 35,468
Accumulated benefit obligation at end of year 27,412 23,821  
Change in plan assets      
Fair value of plan assets at beginning of year 40,700 50,767  
Return on plan assets 1,772 (3,846)  
Employer contributions 0 441  
Participants’ contributions 0 0  
Settlements 0 (3,507)  
Benefit payments (639) (580)  
Foreign currency translation 1,122 (2,575)  
Fair value of plan assets at end of year 42,955 40,700 $ 50,767
Funded status (fair value of plan assets less PBO) $ 13,866 $ 15,071  
v3.19.3.a.u2
Pension and Other Postretirement Benefits - Recognized on consolidated balance sheets (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Assets and liabilities recognized on consolidated balance sheets:      
Accrued pension and other postretirement benefits $ (118,852) $ (102,077)  
Pension Benefits      
Assets and liabilities recognized on consolidated balance sheets:      
Other noncurrent assets 13,866 15,071  
Accrued compensation and benefits (5,357) (10,391)  
Accrued pension and other postretirement benefits (102,834) (88,386)  
Net liability recognized (94,325) (83,706)  
Accumulated other comprehensive income (loss) on consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost:      
Net actuarial gain (loss) at beginning of year (39,125) (44,892) $ (33,736)
Actuarial gain (loss) (27,123) (882) (14,554)
Prior service cost (1,464) (285) 0
Curtailment impact 0 (97) 0
Settlement impact 4,324 4,982 2,740
Amortization of actuarial (gain) loss 1,530 1,687 804
Amortization of prior service cost (credit) 247 175 175
Foreign currency translation (190) 187 (321)
Net actuarial gain (loss) at end of year (61,801) (39,125) (44,892)
Expected prior service cost (credit) and actuarial (gain) loss will be amortized in next fiscal year      
Expected prior service cost (credit) will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year 300    
Expected actuarial (gain) loss will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year (3,800)    
Postretirement Benefits      
Assets and liabilities recognized on consolidated balance sheets:      
Other noncurrent assets 0 0  
Accrued compensation and benefits (807) (721)  
Accrued pension and other postretirement benefits (16,018) (13,691)  
Net liability recognized (16,825) (14,412)  
Accumulated other comprehensive income (loss) on consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost:      
Net actuarial gain (loss) at beginning of year 12,315 12,392 8,055
Actuarial gain (loss) (2,288) 1,600 5,075
Prior service cost 0 0 0
Curtailment impact 0 0 0
Settlement impact 0 0 0
Amortization of actuarial (gain) loss (1,436) (1,540) (601)
Amortization of prior service cost (credit) (137) (137) (137)
Foreign currency translation 0 0 0
Net actuarial gain (loss) at end of year 8,454 $ 12,315 $ 12,392
Expected prior service cost (credit) and actuarial (gain) loss will be amortized in next fiscal year      
Expected prior service cost (credit) will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year (100)    
Expected actuarial (gain) loss will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year $ 900    
v3.19.3.a.u2
Pension and Other Postretirement Benefits - Periodic benefit cost (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Pension Benefits      
Components of net periodic benefit cost      
Service cost $ 8,839 $ 9,067 $ 9,217
Interest cost 10,937 11,897 11,832
Expected return on plan assets (12,987) (13,041) (12,006)
Curtailment income (118) (97) 0
Settlement expense 4,324 4,982 2,740
Amortization of net (gain) loss 1,530 1,687 804
Amortization of prior service cost (credit) 247 175 175
Net periodic benefit cost (credit) 12,772 14,670 12,762
Postretirement Benefits      
Components of net periodic benefit cost      
Service cost 574 657 955
Interest cost 557 490 713
Expected return on plan assets 0 0 0
Curtailment income 0 0 0
Settlement expense 0 0 0
Amortization of net (gain) loss (1,436) (1,540) (601)
Amortization of prior service cost (credit) (137) (137) (137)
Net periodic benefit cost (credit) $ (442) $ (530) $ 930
v3.19.3.a.u2
Pension and Other Postretirement Benefits - Weighted average assumptions (Details)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Weighted average assumptions used to determine net cost for years ended December 31      
Expected long-term rate of return on plan assets 5.01%    
Pension Benefits      
Weighted average assumptions used to determine benefit obligations at December 31      
Discount rate 3.24% 4.25%  
Rate of compensation increase 3.97% 4.00%  
Weighted average assumptions used to determine net cost for years ended December 31      
Discount rate 4.25% 3.62% 4.17%
Expected long-term rate of return on plan assets 5.84% 5.77% 5.77%
Rate of compensation increase 4.00% 4.01% 4.02%
Postretirement Benefits      
Weighted average assumptions used to determine benefit obligations at December 31      
Discount rate 3.12% 4.27%  
Weighted average assumptions used to determine net cost for years ended December 31      
Discount rate 4.27% 3.61% 4.08%
v3.19.3.a.u2
Pension and Other Postretirement Benefits - Healthcare cost trend rates (Details) - Postretirement Benefits Medical and Prescription Drug
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Assumed healthcare cost trend rates used to determine benefit obligations and net cost:      
Rate that the cost trend rate is assumed to decline (the ultimate trend rate) 4.50% 4.50% 4.50%
Minimum      
Assumed healthcare cost trend rates used to determine benefit obligations and net cost:      
Healthcare cost trend rate assumed for next year 6.03% 6.25% 5.50%
Maximum      
Assumed healthcare cost trend rates used to determine benefit obligations and net cost:      
Healthcare cost trend rate assumed for next year 8.44% 9.00% 8.50%
v3.19.3.a.u2
Pension and Other Postretirement Benefits - One-percentage-point (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
One-percentage-point change in assumed healthcare cost trend rates:    
Effect on total of service cost and interest cost, one-percentage point increase $ 68 $ 72
Effect on total of service cost and interest cost, one-percentage point decrease (61) (64)
Effect on projected benefit obligation, one-percentage point increase 710 632
Effect on projected benefit obligation, one-percentage point decrease $ (642) $ (572)
v3.19.3.a.u2
Pension and Other Postretirement Benefits - Plan assets and type of fair value measurement (Details) - Pension Benefits - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Pension and Other Postretirement Benefits    
Fair value of plan assets $ 247,304 $ 216,744
Level 1    
Pension and Other Postretirement Benefits    
Fair value of plan assets 0 0
Level 2    
Pension and Other Postretirement Benefits    
Fair value of plan assets 1,682 1,682
Level 3    
Pension and Other Postretirement Benefits    
Fair value of plan assets 0 0
Fixed income    
Pension and Other Postretirement Benefits    
Fair value of plan assets 1,682 1,682
Fixed income | Level 1    
Pension and Other Postretirement Benefits    
Fair value of plan assets 0 0
Fixed income | Level 2    
Pension and Other Postretirement Benefits    
Fair value of plan assets 1,682 1,682
Fixed income | Level 3    
Pension and Other Postretirement Benefits    
Fair value of plan assets 0 0
Commingled funds | Measured at net asset value    
Pension and Other Postretirement Benefits    
Fair value of plan assets $ 245,622 $ 215,062
v3.19.3.a.u2
Pension and Other Postretirement Benefits - U.S. defined benefit plan (Details)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Pension and Other Postretirement Benefits    
Future expected blended long-term rate of return on plan assets (as a percent) 5.01%  
Minimum | U.S. Defined Benefit Plan | Return-seeking investment    
Pension and Other Postretirement Benefits    
Asset allocation (as a percent) 57.00% 50.00%
Minimum | U.S. Defined Benefit Plan | Liability-hedging investment    
Pension and Other Postretirement Benefits    
Asset allocation (as a percent) 28.00% 24.00%
Maximum | U.S. Defined Benefit Plan | Return-seeking investment    
Pension and Other Postretirement Benefits    
Asset allocation (as a percent) 72.00% 76.00%
Maximum | U.S. Defined Benefit Plan | Liability-hedging investment    
Pension and Other Postretirement Benefits    
Asset allocation (as a percent) 43.00% 50.00%
v3.19.3.a.u2
Pension and Other Postretirement Benefits - Estimated Contributions and Estimated Future Retirement Benefit Payments (Details)
$ in Thousands
Dec. 31, 2019
USD ($)
Pension Benefits  
Pension and Other Postretirement Benefits  
Estimated contribution $ 20,600
Estimated Future Retirement Benefit Payments, Year ending December 31,  
2020 23,308
2021 22,808
2022 23,017
2023 26,913
2024 27,333
Thereafter 144,095
Total 267,474
Postretirement Benefits  
Estimated Future Retirement Benefit Payments, Year ending December 31,  
2020 807
2021 981
2022 1,108
2023 1,165
2024 1,290
Thereafter 6,989
Total $ 12,340
v3.19.3.a.u2
Pension and Other Postretirement Benefits - International Plans (Details) - Pension Benefits - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Pension and Other Postretirement Benefits      
Fair value of plan assets $ 247,304 $ 216,744  
Expected actuarial loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in next fiscal year 3,800    
International Plans      
Pension and Other Postretirement Benefits      
Total projected benefit obligations 48,800 43,900  
Fair value of plan assets 45,100 44,000  
Pension expense 900 $ 400 $ 900
Expected actuarial loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in next fiscal year $ 100    
v3.19.3.a.u2
Pension and Other Postretirement Benefits - Defined Contribution Plans (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Retirement Benefits [Abstract]      
Cash contributions $ 16.3 $ 16.5 $ 13.8
v3.19.3.a.u2
Income Taxes - Components of income before income taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Components of income before income taxes:      
Domestic operations $ 70,632 $ 54,003 $ 61,158
Foreign operations 94,533 96,301 90,518
Income before income taxes $ 165,165 $ 150,304 $ 151,676
v3.19.3.a.u2
Income Taxes - Income Tax Expenses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Current expense (benefit)      
United States $ 1,121 $ 1,795 $ (906)
Foreign 31,005 29,896 28,109
Current income tax expense 32,126 31,691 27,203
Deferred expense (benefit)      
United States 9,539 16,222 21,189
Foreign (1,065) (681) 83
Deferred income tax expense 8,474 15,541 21,272
Total income tax expense $ 40,600 $ 47,232 $ 48,475
v3.19.3.a.u2
Income Taxes (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Jan. 01, 2018
Income Tax Disclosure [Abstract]            
Federal statutory income tax rate (as a percent)     21.00% 21.00% 35.00%  
Provisional income tax   $ 7,800        
Provisional tax rate effect on remeasurement   4,000        
Provisional increase of one-time transition tax liability of foreign subsidiaries   8,600        
Release of deferred tax liability previously recorded on unremitted foreign earnings   $ 4,800        
Additional tax expense $ 10,300          
Total tax expense     $ 13,900      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Increase in valuation allowance     $ 2,882 $ (10,037) $ 3,853  
Income tax benefit related to release of valuation allowance       (18,400)    
Adjustment for new accounting standards           $ (1,501)
Accumulated Other Comprehensive Loss            
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Adjustment for new accounting standards           (6,132)
Retained earnings            
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Adjustment for new accounting standards           4,631
ASU 2018-02 | Accumulated Other Comprehensive Loss            
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Adjustment for new accounting standards           (4,100)
ASU 2018-02 | Retained earnings            
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Adjustment for new accounting standards           $ 4,100
State tax attributes            
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Increase in valuation allowance       400    
U.S. foreign tax credits arising from Japan branch operations            
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Increase in valuation allowance       $ 8,000    
v3.19.3.a.u2
Income Taxes - Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]      
Income tax expense computed at federal statutory income tax rate $ 34,685 $ 31,564 $ 53,086
Foreign taxes, net of credits 714 13,316 (16,840)
Impact of the 2017 Tax Act 0 10,801 12,619
Net adjustments for uncertain tax positions 799 771 508
State and local taxes 1,832 2,349 1,313
Equity appreciation rights 0 0 (765)
Nondeductible expenses 1,179 962 1,407
Valuation allowance 2,882 (10,038) 90
Tax credits (607) (2,800) (3,240)
Miscellaneous other, net (884) 307 297
Total income tax expense $ 40,600 $ 47,232 $ 48,475
Effective income tax rate 24.60% 31.40% 32.00%
v3.19.3.a.u2
Income Taxes - Net deferred tax assets (liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Deferred tax assets        
Compensation and benefits $ 13,208 $ 14,036    
Share-based compensation 2,682 7,446    
Pension and other postretirement benefits 24,260 22,285    
Inventories 15,379 11,505    
R&D capitalization 12,925 6,449    
Lease liability 9,669      
Partnership investment 223 110    
Transaction costs 1,365 1,580    
Nondeductible accruals and reserves 6,907 7,248    
Miscellaneous 2,802 2,379    
Net operating loss and other tax carryforwards 74,586 80,671    
Gross deferred tax assets 164,006 153,709    
Valuation allowance (18,424) (15,542) $ (25,579) $ (21,726)
Total deferred tax assets 145,582 138,167    
Deferred tax liabilities        
Property, plant and equipment (6,687) (8,057)    
Identifiable intangible assets (62,349) (54,681)    
Right-of-use assets (9,407)      
Foreign exchange derivative instruments (154) (1,176)    
Miscellaneous (1,281) (860)    
Total deferred tax liabilities (79,878) (64,774)    
Net deferred tax asset $ 65,704 $ 73,393    
v3.19.3.a.u2
Income Taxes - NOL and Tax credit carryforwards (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
State    
NOL and Tax credit carryfowards    
Net operating loss carryforwards $ 141.3 $ 158.9
State | Research Tax Credit Carryforward    
NOL and Tax credit carryfowards    
Tax credit carryforwards 8.2 10.3
Foreign    
NOL and Tax credit carryfowards    
Tax credit carryforwards 55.0 59.4
Domestic | General Business Tax Credit Carryforward    
NOL and Tax credit carryfowards    
Tax credit carryforwards $ 16.9 $ 14.3
v3.19.3.a.u2
Income Taxes - Changes in valuation allowance (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Changes in valuation allowance for deferred tax assets:      
Valuation allowance at beginning of year $ 15,542 $ 25,579 $ 21,726
Increases (decreases) recorded to income tax provision 2,882 (10,037) 3,853
Valuation allowance at end of year $ 18,424 $ 15,542 $ 25,579
v3.19.3.a.u2
Income Taxes - Unrecognized tax benefit (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Reconciliation of activity related to unrecognized tax benefits, excluding interest and penalties:      
Unrecognized tax benefits at beginning of year $ 11,646 $ 11,049 $ 11,347
Gross additions - current year tax positions 787 801 1,159
Gross additions - acquired tax positions 659 0 0
Gross reductions - prior year tax positions (248) (91) (348)
Gross reductions - Acquired tax positions settled with tax authorities (461) (113) (1,241)
Impact of change in foreign exchange rates   0 132
Impact of change in foreign exchange rates (16)    
Unrecognized tax benefits at end of year 12,367 11,646 11,049
Liability of interest and penalties 3,900 3,300 2,700
Income tax expense 40,600 47,232 48,475
Beam      
Reconciliation of activity related to unrecognized tax benefits, excluding interest and penalties:      
Unrecognized tax benefits, would affect the company's future effective tax rate if recognized next 12 months 5,000 5,000 4,900
Liability of interest and penalties 3,400 3,000 2,700
Income tax expense $ 500 $ 300 $ 200
v3.19.3.a.u2
Common Stock - Narrative (Details)
3 Months Ended 12 Months Ended
Dec. 31, 2019
USD ($)
$ / shares
shares
Sep. 30, 2019
USD ($)
$ / shares
Jun. 30, 2019
USD ($)
$ / shares
Mar. 31, 2019
USD ($)
$ / shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Sep. 30, 2018
USD ($)
$ / shares
Jun. 30, 2018
USD ($)
$ / shares
Mar. 31, 2018
USD ($)
$ / shares
Dec. 31, 2017
USD ($)
$ / shares
Sep. 30, 2017
USD ($)
$ / shares
Jun. 30, 2017
USD ($)
$ / shares
Mar. 31, 2017
USD ($)
$ / shares
Dec. 31, 2019
USD ($)
vote
$ / shares
shares
Dec. 31, 2018
USD ($)
vote
$ / shares
shares
Dec. 31, 2017
USD ($)
$ / shares
Mar. 31, 2020
$ / shares
Feb. 11, 2020
USD ($)
Equity [Abstract]                                  
Common stock, shares authorized (in shares) | shares 500,000,000       500,000,000               500,000,000 500,000,000      
Common stock, par value (in dollars per share) | $ / shares $ 0.001       $ 0.001               $ 0.001 $ 0.001      
Number of votes entitled | vote                         1 1      
Dividends per Common Share (in dollars per share) | $ / shares $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.12 $ 0.12 $ 0.12 $ 0.12 $ 0.56 $ 0.52 $ 0.48    
Amount $ 10,718,000 $ 10,726,000 $ 10,751,000 $ 10,782,000 $ 9,968,000 $ 9,954,000 $ 9,917,000 $ 9,917,000 $ 9,098,000 $ 9,146,000 $ 9,149,000 $ 9,152,000 $ 42,977,000 $ 39,756,000 $ 36,545,000    
Dividends Payable [Line Items]                                  
Issued and outstanding common stock authorized to repurchase 50,000,000.0                       50,000,000.0        
Aggregate purchases of shares in open market before shares will be purchased from Magnus $ 24,900,000                       $ 24,900,000        
Shares repurchased (in shares) | shares                         1,127,966        
Average price (in dollars per share) | $ / shares                         $ 26.02        
Purchases of common stock                         $ 29,352,000        
Accrued share repurchase (in shares) | shares 56,000                       56,000        
Amount remaining under current authorizations $ 20,600,000                       $ 20,600,000        
Magnus                                  
Dividends Payable [Line Items]                                  
Shares repurchased (in shares) | shares                         535,983        
Average price (in dollars per share) | $ / shares                         $ 25.70        
Purchases of common stock                         $ 13,775,000        
Share repurchase liability $ 1,800,000                       $ 1,800,000        
Accrued share repurchase (in shares) | shares 56,000                       56,000        
Amount remaining under current authorizations $ 11,100,000                       $ 11,100,000        
Forecast                                  
Dividends Payable [Line Items]                                  
Dividends declared (in dollars per share) | $ / shares                               $ 0.155  
Subsequent Event                                  
Dividends Payable [Line Items]                                  
Issued and outstanding common stock authorized to repurchase                                 $ 100,000,000.0
Additional issued and outstanding common stock authorized to repurchase                                 $ 50,000,000.0
v3.19.3.a.u2
Common Stock - Schedule of Share Repurchase Activity (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2019
USD ($)
$ / shares
shares
Debt Instrument [Line Items]  
Shares repurchased (in shares) | shares 1,127,966
Average price (in dollars per share) $ 26.02
Aggregate value | $ $ 29,352
Open Market  
Debt Instrument [Line Items]  
Shares repurchased (in shares) | shares 591,983
Average price (in dollars per share) $ 26.31
Aggregate value | $ $ 15,577
Magnus  
Debt Instrument [Line Items]  
Shares repurchased (in shares) | shares 535,983
Average price (in dollars per share) $ 25.70
Aggregate value | $ $ 13,775
Average price including repurchase liability (in dollars per share) $ 26.31
v3.19.3.a.u2
Equity Incentive Plans - Restricted Stock and Performance Stock Units (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Weighted - Average Fair Value      
Compensation expense $ 10,975 $ 18,563 $ 15,285
Company Officers and Employees | RSU | Minimum      
Equity Incentive Plans      
Vesting period 1 year    
Company Officers and Employees | RSU | Maximum      
Equity Incentive Plans      
Vesting period 3 years    
Company Officers and Employees | PSU      
Equity Incentive Plans      
Vesting period 3 years    
Company Officers and Employees | PSU | Minimum      
Equity Incentive Plans      
Awards earned as percentage of specified compensation 0.00%    
Company Officers and Employees | PSU | Maximum      
Equity Incentive Plans      
Awards earned as percentage of specified compensation 200.00%    
Omnibus Incentive 2015 Plan      
Equity Incentive Plans      
Share reserved for issuance (in shares) 6,664,012    
Shares remaining available for future grants (in shares) 5,060,479    
Omnibus Incentive 2015 Plan | RSU      
Number of Units      
Outstanding at beginning of the period (in shares) 881,832 874,942  
Granted (in shares) 655,522 473,724  
Vested (in shares) (567,836) (466,834)  
Forfeited (in shares) (22,275) 0  
Outstanding at end of the period (in shares) 947,243 881,832 874,942
Weighted - Average Fair Value      
Outstanding at beginning of the period (in dollars per share) $ 21.75 $ 20.15  
Granted (in dollars per share) 23.51 23.49  
Vested (in dollars per share) 20.81 20.52  
Forfeited (in dollars per share) 23.92 0  
Outstanding at end of the period (in dollars per share) $ 23.49 $ 21.75 $ 20.15
Shares of common stock that were not delivered (in shares) 161,165 63,490  
Vested (in shares) $ 12,900 $ 10,000  
Compensation expense 9,140 $ 12,353 $ 9,318
Unrecognized compensation expense $ 13,400    
Weighted average period 1 year 8 months 12 days    
Omnibus Incentive 2015 Plan | PSU      
Number of Units      
Outstanding at beginning of the period (in shares) 0 1,185,912  
Granted (in shares) 207,077 0  
Vested (in shares) 0 (900,226)  
Forfeited (in shares) 0 (285,686)  
Outstanding at end of the period (in shares) 207,077 0 1,185,912
Weighted - Average Fair Value      
Outstanding at beginning of the period (in dollars per share) $ 0 $ 20.29  
Granted (in dollars per share) 23.47 0  
Vested (in dollars per share) 0 20.29  
Forfeited (in dollars per share) 0 20.29  
Outstanding at end of the period (in dollars per share) $ 23.47 $ 0 $ 20.29
Shares of common stock that were not delivered (in shares) 0 900,226  
Vested (in shares)   $ 19,000  
Compensation expense $ 1,507 $ 6,210 $ 5,967
Unrecognized compensation expense $ 3,400    
Weighted average period 2 years    
v3.19.3.a.u2
Equity Incentive Plans - Summary of Shares of Common Stock Issued (Details) - Omnibus Incentive 2015 Plan - shares
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
RSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Cumulative undelivered shares of common stock (in shares) 161,165 63,490
PSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Cumulative undelivered shares of common stock (in shares) 0 900,226
Common Stock | RSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares of common stock issued (in shares) 410,787 403,538
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations (in shares) (126,242) (122,795)
Net shares of common stock issued (in shares) 284,545 280,743
Cumulative undelivered shares of common stock (in shares) 220,582 63,490
Common Stock | PSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares of common stock issued (in shares) 900,226 0
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations (in shares) (325,246) 0
Net shares of common stock issued (in shares) 574,980 0
Cumulative undelivered shares of common stock (in shares) 0 900,226
v3.19.3.a.u2
Equity Incentive Plans - Compensation Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Equity Incentive Plans      
Total compensation expense before income tax $ 10,975 $ 18,563 $ 15,285
Income tax benefit 2,440 4,398 3,158
Total compensation expense, net of tax 8,535 14,165 12,127
Cost of goods sold      
Equity Incentive Plans      
Total compensation expense before income tax 722 680 408
Selling, general and administrative expense      
Equity Incentive Plans      
Total compensation expense before income tax 9,402 16,507 13,687
Research and development      
Equity Incentive Plans      
Total compensation expense before income tax $ 851 $ 1,376 $ 1,190
v3.19.3.a.u2
Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jan. 01, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance $ 926,984 $ 853,973  
Adoption of new accounting standards     $ (1,501)
Ending balance 950,826 926,984  
Foreign Currency Translation Adjustments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (71,853) (57,711)  
Adoption of new accounting standards     (2,171)
Other comprehensive income (loss) before reclassifications 666 (11,971)  
Amounts reclassified from accumulated other comprehensive loss, net of tax 0 0  
Tax benefit (expense) 0 0  
Ending balance (71,187) (71,853)  
Gains (Losses) on Derivative Instruments | Foreign exchange derivative instruments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance 5,258 (2,280)  
Adoption of new accounting standards     0
Other comprehensive income (loss) before reclassifications   8,148  
Amounts reclassified from accumulated other comprehensive loss, net of tax   1,410  
Tax benefit (expense)   (2,020)  
Ending balance   5,258  
Gains (Losses) on Derivative Instruments | Interest rate swap derivative instrument      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (1,098) 0  
Adoption of new accounting standards     0
Other comprehensive income (loss) before reclassifications   (1,926)  
Amounts reclassified from accumulated other comprehensive loss, net of tax   476  
Tax benefit (expense)   352  
Ending balance   (1,098)  
Gains (Losses) on Derivative Instruments | Foreign exchange derivative instruments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Other comprehensive income (loss) before reclassifications 5,490    
Amounts reclassified from accumulated other comprehensive loss, net of tax (8,465)    
Tax benefit (expense) 618    
Ending balance 2,901    
Gains (Losses) on Derivative Instruments | Interest rate swap derivative instrument      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Other comprehensive income (loss) before reclassifications (2,185)    
Amounts reclassified from accumulated other comprehensive loss, net of tax 989    
Tax benefit (expense) 291    
Ending balance (2,003)    
Gains on Available- for-Sale Securities      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance 0 1,721  
Adoption of new accounting standards     (1,721)
Other comprehensive income (loss) before reclassifications 0 0  
Amounts reclassified from accumulated other comprehensive loss, net of tax 0 0  
Tax benefit (expense) 0 0  
Ending balance 0 0  
Pension and Other Postretirement Adjustments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (21,346) (23,421)  
Adoption of new accounting standards     (2,240)
Other comprehensive income (loss) before reclassifications (31,065) 620  
Amounts reclassified from accumulated other comprehensive loss, net of tax 4,528 5,070  
Tax benefit (expense) 6,144 (1,375)  
Ending balance (41,739) (21,346)  
Accumulated Other Comprehensive Loss      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (89,039) (81,691)  
Adoption of new accounting standards     $ (6,132)
Other comprehensive income (loss) before reclassifications (27,094) (5,129)  
Amounts reclassified from accumulated other comprehensive loss, net of tax (2,948) 6,956  
Tax benefit (expense) 7,053 (3,043)  
Ending balance $ (112,028) $ (89,039)  
v3.19.3.a.u2
Interest Expense, Net and Other Expense, Net (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Interest Expense, Net      
Third party interest expense $ 19,472 $ 19,171 $ 16,907
Loss on interest rate swap 989 476 0
Third party interest income (848) (1,245) (1,198)
Total interest expense, net 19,613 18,402 15,709
Other Expense, Net      
Indemnification (gains) losses (498) (258) 177
Non-service cost component of net periodic benefit cost 2,917 4,416 3,520
Other income (1,544) (529) (1,254)
Total other expense, net $ 875 $ 3,629 $ 2,443
v3.19.3.a.u2
Net Income per Common Share - Computation of basic and diluted net income per common share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Earnings Per Share [Abstract]                      
Net income attributable to Acushnet Holdings Corp. $ 17,859 $ 29,797 $ 38,488 $ 34,926 $ 11,418 $ 7,063 $ 39,907 $ 41,484 $ 121,070 $ 99,872 $ 98,695
Weighted average number of common shares:                      
Basic (in shares)                 75,418,204 74,766,176 74,399,836
Diluted (in shares)                 75,759,605 75,472,342 74,590,999
Net income per common share attributable to Acushnet Holdings Corp.:                      
Basic (in dollars per share) $ 0.24 $ 0.40 $ 0.51 $ 0.46 $ 0.15 $ 0.09 $ 0.53 $ 0.56 $ 1.61 $ 1.34 $ 1.33
Diluted (in dollars per share) $ 0.24 $ 0.39 $ 0.51 $ 0.46 $ 0.15 $ 0.09 $ 0.53 $ 0.55 $ 1.60 $ 1.32 $ 1.32
v3.19.3.a.u2
Net Income per Common Share - Calculation of diluted weighted average common shares outstanding (Details) - shares
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
RSUs      
Anti-dilutive securities excluded from computation of earnings per share (in shares) 1,013 13,885 360,659
v3.19.3.a.u2
Segment Information - Reconciliation (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2019
USD ($)
segment
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Segment Reporting Information [Line Items]                      
Number of reportable segments | segment                 4    
Total net sales $ 368,271 $ 417,166 $ 462,218 $ 433,702 $ 343,355 $ 370,427 $ 478,138 $ 441,801 $ 1,681,357 $ 1,633,721 $ 1,560,258
Total segment operating income $ 28,565 $ 43,726 $ 61,135 $ 52,227 $ 19,599 $ 25,873 $ 64,579 $ 62,284 185,653 172,335 169,828
Reconciling items:                      
Interest expense, net                 (19,613) (18,402) (15,709)
Non-service cost component of net periodic benefit cost                 (2,917) (4,416) (3,520)
Income before income taxes                 165,165 150,304 151,676
Operating segments                      
Segment Reporting Information [Line Items]                      
Total segment operating income                 188,888 173,093 169,248
Reconciling Items                      
Reconciling items:                      
Interest expense, net                 (19,613) (18,402) (15,709)
Non-service cost component of net periodic benefit cost                 (2,917) (4,416) (3,520)
Transaction fees                 (2,654) (599) (686)
Other                 1,461 628 2,343
Titleist golf balls | Operating segments                      
Segment Reporting Information [Line Items]                      
Total net sales                 551,596 523,967 512,041
Total segment operating income                 93,305 78,973 78,419
Titleist golf clubs | Operating segments                      
Segment Reporting Information [Line Items]                      
Total net sales                 434,357 445,341 397,987
Total segment operating income                 38,811 45,156 32,084
Titleist golf gear | Operating segments                      
Segment Reporting Information [Line Items]                      
Total net sales                 149,984 146,067 142,911
Total segment operating income                 17,300 15,430 16,803
FootJoy golf wear | Operating segments                      
Segment Reporting Information [Line Items]                      
Total net sales                 441,871 439,681 437,455
Total segment operating income                 24,429 17,974 27,038
Other | Operating segments                      
Segment Reporting Information [Line Items]                      
Total net sales                 103,549 78,665 69,864
Total segment operating income                 $ 15,043 $ 15,560 $ 14,904
v3.19.3.a.u2
Segment Information - Depreciation and Amortization (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Segment Reporting Information [Line Items]      
Total depreciation and amortization $ 43,002 $ 40,496 $ 40,871
Titleist golf balls | Operating segments      
Segment Reporting Information [Line Items]      
Total depreciation and amortization 22,694 24,155 25,545
Titleist golf clubs | Operating segments      
Segment Reporting Information [Line Items]      
Total depreciation and amortization 7,451 7,408 7,233
Titleist golf gear | Operating segments      
Segment Reporting Information [Line Items]      
Total depreciation and amortization 1,603 1,531 1,425
FootJoy golf wear | Operating segments      
Segment Reporting Information [Line Items]      
Total depreciation and amortization 6,451 6,731 6,058
Other | Operating segments      
Segment Reporting Information [Line Items]      
Total depreciation and amortization $ 4,803 $ 671 $ 610
v3.19.3.a.u2
Segment Information - Geographical areas (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Total net sales $ 368,271 $ 417,166 $ 462,218 $ 433,702 $ 343,355 $ 370,427 $ 478,138 $ 441,801 $ 1,681,357 $ 1,633,721 $ 1,560,258
Total long-lived assets 231,575       228,388       231,575 228,388  
United States                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Total net sales                 884,791 826,111 789,879
Total long-lived assets 148,883       146,596       148,883 146,596  
EMEA                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Total net sales                 230,465 219,803 205,200
Total long-lived assets 11,906       9,472       11,906 9,472  
Japan                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Total net sales                 182,681 199,107 201,264
Total long-lived assets 663       764       663 764  
Korea                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Total net sales                 223,365 221,146 200,394
Total long-lived assets 7,441       5,682       7,441 5,682  
Rest of world                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Total net sales                 160,055 167,554 $ 163,521
Total long-lived assets 62,682       65,874       62,682 65,874  
Thailand                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Total long-lived assets $ 49,400       $ 52,200       $ 49,400 $ 52,200  
v3.19.3.a.u2
Business Combinations (Details) - USD ($)
$ in Millions
Jul. 03, 2019
Oct. 01, 2018
KJUS    
Business Acquisition [Line Items]    
Purchase price $ 28.7  
Redeemable noncontrolling interest 5.0  
Loans to minority shareholders $ 4.4  
PG Professional Golf    
Business Acquisition [Line Items]    
Purchase price   $ 14.4
Percent of certain assets and liabilities acquired   80.00%
v3.19.3.a.u2
Commitments and Contingencies - Purchase Commitments (Details)
$ in Thousands
Dec. 31, 2019
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2020 $ 128,242
2021 11,173
2022 2,269
2023 646
2024 450
Thereafter $ 1,603
v3.19.3.a.u2
Commitments and Contingencies - Contingencies (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]    
Estimate of receivable for indemnification $ 9.5 $ 8.9
v3.19.3.a.u2
Unaudited Quarterly Financial Data (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]                      
Net sales $ 368,271 $ 417,166 $ 462,218 $ 433,702 $ 343,355 $ 370,427 $ 478,138 $ 441,801 $ 1,681,357 $ 1,633,721 $ 1,560,258
Gross profit 186,691 217,344 246,043 222,157 174,929 188,938 250,810 227,674 872,235 842,351 801,857
Income from operations 28,565 43,726 61,135 52,227 19,599 25,873 64,579 62,284 185,653 172,335 169,828
Net income 19,618 30,006 38,902 36,039 12,264 7,349 40,369 43,090 124,565 103,072 103,201
Net income attributable to Acushnet Holdings Corp. $ 17,859 $ 29,797 $ 38,488 $ 34,926 $ 11,418 $ 7,063 $ 39,907 $ 41,484 $ 121,070 $ 99,872 $ 98,695
Net income per common share attributable to Acushnet Holdings Corp.:                      
Basic (in dollars per share) $ 0.24 $ 0.40 $ 0.51 $ 0.46 $ 0.15 $ 0.09 $ 0.53 $ 0.56 $ 1.61 $ 1.34 $ 1.33
Diluted (in dollars per share) $ 0.24 $ 0.39 $ 0.51 $ 0.46 $ 0.15 $ 0.09 $ 0.53 $ 0.55 $ 1.60 $ 1.32 $ 1.32
v3.19.3.a.u2
Label Element Value
Parent [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ (1,501,000)