ACUSHNET HOLDINGS CORP., 10-Q filed on 5/5/2022
Quarterly Report
v3.22.1
Cover Page - shares
3 Months Ended
Mar. 31, 2022
Apr. 29, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2022  
Document Transition Report false  
Entity File Number 001-37935  
Entity Registrant Name Acushnet Holdings Corp.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 45-2644353  
Entity Address, Address Line One 333 Bridge Street  
Entity Address, City or Town Fairhaven,  
Entity Address, State or Province MA  
Entity Address, Postal Zip Code 02719  
City Area Code 800  
Local Phone Number 225-8500  
Title of 12(b) Security Common Stock - $0.001 par value per share  
Trading Symbol GOLF  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   72,224,555
Entity Central Index Key 0001672013  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q1  
v3.22.1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Current assets    
Cash, cash equivalents and restricted cash ($14,549 and $15,612 attributable to the variable interest entity ("VIE")) $ 114,402 $ 281,677
Accounts receivable, net 377,252 174,435
Inventories ($18,691 and $19,385 attributable to the VIE) 448,780 413,314
Prepaid and other assets 114,508 99,750
Total current assets 1,054,942 969,176
Property, plant and equipment, net ($10,339 and $10,466 attributable to the VIE) 230,006 231,761
Goodwill ($32,312 and $32,312 attributable to the VIE) 208,797 210,431
Intangible assets, net 463,267 465,341
Deferred income taxes 55,240 60,814
Other assets ($2,144 and $2,166 attributable to the VIE) 73,551 68,313
Total assets 2,085,803 2,005,836
Current liabilities    
Short-term debt 97,318 116
Current portion of long-term debt 17,500 17,500
Accounts payable ($13,670 and $13,275 attributable to the VIE) 187,642 163,607
Accrued taxes 72,819 57,307
Accrued compensation and benefits ($861 and $1,511 attributable to the VIE) 56,553 113,453
Accrued expenses and other liabilities ($3,726 and $4,677 attributable to the VIE) 104,072 131,041
Total current liabilities 535,904 483,024
Long-term debt 293,280 297,354
Deferred income taxes 4,986 4,950
Accrued pension and other postretirement benefits 93,821 93,705
Other noncurrent liabilities ($2,222 and $2,218 attributable to the VIE) 45,887 43,237
Total liabilities 973,878 922,270
Commitments and contingencies (Note 15)
Redeemable noncontrolling interest 3,229 3,299
Shareholders' equity    
Common stock, $0.001 par value, 500,000,000 shares authorized; 76,289,077 and 75,855,036 shares issued 76 76
Additional paid-in capital 943,239 948,423
Accumulated other comprehensive loss, net of tax (104,527) (99,582)
Retained earnings 392,538 324,966
Treasury stock, at cost; 3,940,522 and 3,314,562 shares (including 537,839 of accrued share repurchases as of December 31, 2021) (Note 10) (160,933) (131,039)
Total equity attributable to Acushnet Holdings Corp. 1,070,393 1,042,844
Noncontrolling interests 38,303 37,423
Total shareholders' equity 1,108,696 1,080,267
Total liabilities, redeemable noncontrolling interest and shareholders' equity $ 2,085,803 $ 2,005,836
v3.22.1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Cash and restricted cash $ 114,402 $ 281,677
Inventories 448,780 413,314
Property, plant and equipment, net 230,006 231,761
Goodwill 208,797 210,431
Other assets 73,551 68,313
Accounts payable 187,642 163,607
Accrued compensation and benefits 56,553 113,453
Accrued expenses and other liabilities 104,072 131,041
Other noncurrent liabilities $ 45,887 $ 43,237
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 500,000,000 500,000,000
Common stock, shares issued (in shares) 76,289,077 75,855,036
Treasury stock, at cost (in shares) 3,940,522 3,314,562
Accrued share repurchase (in shares)   537,839
VIE    
Cash and restricted cash $ 14,549 $ 15,612
Inventories 18,691 19,385
Property, plant and equipment, net 10,339 10,466
Goodwill 32,312 32,312
Other assets 2,144 2,166
Accounts payable 13,670 13,275
Accrued compensation and benefits 861 1,511
Accrued expenses and other liabilities 3,726 4,677
Other noncurrent liabilities $ 2,222 $ 2,218
v3.22.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income Statement [Abstract]    
Net sales $ 606,087 $ 580,885
Cost of goods sold 289,088 270,146
Gross profit 316,999 310,739
Operating expenses:    
Selling, general and administrative 195,691 176,369
Research and development 13,976 12,329
Intangible amortization 1,963 1,972
Income from operations 105,369 120,069
Interest expense, net 1,277 3,616
Other expense, net 1,326 1,992
Income before income taxes 102,766 114,461
Income tax expense 20,919 27,834
Net income 81,847 86,627
Less: Net income attributable to noncontrolling interests (802) (1,669)
Net income attributable to Acushnet Holdings Corp. $ 81,045 $ 84,958
Net income per common share attributable to Acushnet Holdings Corp.:    
Basic (in dollars per share) $ 1.10 $ 1.14
Diluted (in dollars per share) $ 1.10 $ 1.13
Weighted average number of common shares:    
Basic (in shares) 73,513,109 74,778,189
Diluted (in shares) 73,922,728 75,255,312
v3.22.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Statement of Comprehensive Income [Abstract]    
Net income $ 81,847 $ 86,627
Other comprehensive loss:    
Foreign currency translation adjustments (7,570) (7,080)
Cash flow derivative instruments:    
Unrealized holding gains arising during period 3,076 4,367
Reclassification adjustments included in net income (1,355) 563
Tax expense (516) (1,664)
Cash flow derivative instruments, net 1,205 3,266
Pension and other postretirement benefits:    
Pension and other postretirement benefits adjustments 1,863 2,575
Tax expense (443) (739)
Pension and other postretirement benefits adjustments, net 1,420 1,836
Total other comprehensive loss (4,945) (1,978)
Comprehensive income 76,902 84,649
Less: Comprehensive income attributable to noncontrolling interests (747) (1,529)
Comprehensive income attributable to Acushnet Holdings Corp. $ 76,155 $ 83,120
v3.22.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Cash flows from operating activities    
Net income $ 81,847 $ 86,627
Adjustments to reconcile net income to cash flows used in operating activities    
Depreciation and amortization 10,367 10,363
Unrealized foreign exchange loss (gain) 1,433 (3,593)
Amortization of debt issuance costs 203 917
Share-based compensation 5,353 5,533
(Gain) loss on disposals of property, plant and equipment (1) 155
Deferred income taxes 4,341 10,265
Changes in operating assets and liabilities    
Accounts receivable (206,468) (190,019)
Inventories (39,341) 24,987
Accounts payable 30,079 13,788
Accrued taxes 17,464 15,039
Other assets and liabilities (69,325) (4,058)
Cash flows used in operating activities (164,048) (29,996)
Cash flows from investing activities    
Additions to property, plant and equipment (11,686) (6,410)
Cash flows used in investing activities (11,686) (6,410)
Cash flows from financing activities    
Proceeds from short-term borrowings, net 97,700 22,178
Repayments of term loan facility (4,375) (4,375)
Purchases of common stock (59,108) (2,377)
Dividends paid on common stock (13,984) (12,658)
Dividends paid to noncontrolling interests (101) (48)
Payment of employee restricted stock tax withholdings (10,661) (3,946)
Cash flows provided by (used in) financing activities 9,471 (1,226)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (1,012) (773)
Net decrease in cash, cash equivalents and restricted cash (167,275) (38,405)
Cash, cash equivalents and restricted cash, beginning of year 281,677 151,452
Cash, cash equivalents and restricted cash, end of period 114,402 113,047
Supplemental information    
Non-cash additions to property, plant and equipment 1,744 1,895
Non-cash additions to right-of-use assets obtained in exchange for operating lease obligations 8,065 1,291
Non-cash additions to right-of-use assets obtained in exchange for finance lease obligations 335 0
Dividend equivalents rights ("DERs") declared not paid 427 477
Share repurchase liability (Note 10) $ 0 $ 2,347
v3.22.1
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED) - USD ($)
shares in Thousands, $ in Thousands
Total
Total Shareholders' Equity Attributable to Acushnet Holdings Corp.
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Loss, Net of Tax
Retained Earnings
Treasury Stock
Noncontrolling Interests
Beginning balance (in shares) at Dec. 31, 2020     75,666          
Beginning balance at Dec. 31, 2020 $ 1,017,253 $ 983,949 $ 76 $ 925,385 $ (96,182) $ 199,776 $ (45,106) $ 33,304
Changes in stockholders' equity                
Net income 86,820 84,958       84,958   1,862
Other comprehensive loss (1,978) (1,978)     (1,978)      
Share-based compensation 5,369 5,369   5,369        
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) (in shares)     181          
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) (3,945) (3,945)   (3,945)        
Purchases of common stock (Note 10) (2,377) (2,377)         (2,377)  
Share repurchase liability (Note 10) (2,347) (2,347)         (2,347)  
Dividends and dividend equivalents declared (12,767) (12,767)       (12,767)    
Dividends declared to noncontrolling interests (48)             (48)
Ending balance (in shares) at Mar. 31, 2021     75,847          
Ending balance at Mar. 31, 2021 1,085,980 1,050,862 $ 76 926,809 (98,160) 271,967 (49,830) 35,118
Beginning balance (in shares) at Dec. 31, 2020     75,666          
Beginning balance at Dec. 31, 2020 1,017,253 983,949 $ 76 925,385 (96,182) 199,776 (45,106) 33,304
Changes in stockholders' equity                
Dividends and dividend equivalents declared (50,846)              
Ending balance (in shares) at Dec. 31, 2021     75,855          
Ending balance at Dec. 31, 2021 1,080,267 1,042,844 $ 76 948,423 (99,582) 324,966 (131,039) 37,423
Changes in stockholders' equity                
Net income 82,026 81,045       81,045   981
Other comprehensive loss (4,945) (4,945)     (4,945)      
Share-based compensation 5,189 5,189   5,189        
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) (in shares)     434          
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 11) (10,373) (10,373)   (10,373)        
Purchases of common stock (Note 10) (29,894) (29,894)         (29,894)  
Share repurchase liability (Note 10) 0              
Dividends and dividend equivalents declared (13,473) (13,473)       (13,473)    
Dividends declared to noncontrolling interests (101)             (101)
Ending balance (in shares) at Mar. 31, 2022     76,289          
Ending balance at Mar. 31, 2022 $ 1,108,696 $ 1,070,393 $ 76 $ 943,239 $ (104,527) $ 392,538 $ (160,933) $ 38,303
v3.22.1
Summary of Significant Accounting Policies
3 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of Acushnet Holdings Corp. (the “Company”), its wholly-owned subsidiaries and less than wholly-owned subsidiaries, including a variable interest entity (“VIE”) in which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.
Certain information in footnote disclosures normally included in annual financial statements has been condensed or omitted for the interim periods presented in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP. The year-end balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the unaudited condensed consolidated financial statements do not include all disclosures required by U.S. GAAP. In the opinion of management, the financial statements contain all normal and recurring adjustments necessary to state fairly the financial position and results of operations of the Company. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of results to be expected for the full year ending December 31, 2022, nor were those of the comparable 2021 period representative of those actually experienced for the full year ended December 31, 2021. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the fiscal year ended December 31, 2021 included in its Annual Report on Form 10-K filed with the SEC on March 1, 2022.
Use of Estimates
The preparation of the Company’s unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
The Company has evaluated and continues to evaluate the potential impact of the COVID-19 pandemic on its consolidated financial statements. The impact of the COVID-19 pandemic continues to evolve, and both the full impact and duration of the COVID-19 pandemic remain highly uncertain. Accordingly, the Company's business, results of operations, financial position and cash flows could be materially impacted in ways that the Company cannot currently predict.
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 March 31, 2022 and December 31, 2021. 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. The financial results and position of noncontrolling interests are included in the Company’s
unaudited condensed consolidated financial statements. The value attributable to the noncontrolling interests is presented on the unaudited condensed consolidated balance sheets, separately from the equity attributable to the Company. Net income (loss) and comprehensive income (loss) attributable to noncontrolling interests are presented separately on the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of comprehensive income, respectively.
Redeemable noncontrolling interests are those noncontrolling interests which are or may become redeemable at a fixed or determinable price on a fixed or determinable date, at the option of the holder, or upon occurrence of an event. The Company initially recorded the redeemable noncontrolling interest at its acquisition date fair value. The carrying amount of the redeemable noncontrolling interest is subsequently adjusted to the greater amount of either the initial carrying amount, increased or decreased for the redeemable noncontrolling interest's share of comprehensive income (loss) or the redemption value, assuming the noncontrolling interest is redeemable at the balance sheet date. This adjustment is recognized through retained earnings and is not reflected in net income (loss) or comprehensive income (loss). The value attributable to the redeemable noncontrolling interest and the related loan to minority shareholders, which is recorded as a reduction to redeemable noncontrolling interest, is presented in the unaudited condensed consolidated balance sheets as temporary equity between liabilities and shareholders’ equity. The amount of the loan to minority shareholders was $4.4 million as of both March 31, 2022 and December 31, 2021.
Cash, Cash Equivalents and Restricted Cash
Cash held in Company checking accounts is included in cash. Cash equivalents consist of short-term highly liquid investments with original maturities of three months or less which are readily convertible into cash. The Company classifies as restricted certain cash that is not available for use in its operations. As of March 31, 2022 and December 31, 2021, the amount of restricted cash included in cash, cash equivalents and restricted cash on the unaudited condensed consolidated balance sheets was $1.8 million and $1.9 million, respectively.
Foreign Currency Translation and Transactions
Foreign currency transaction losses included in selling, general and administrative expense were $1.8 million and $1.0 million for the three months ended March 31, 2022 and 2021, respectively.
Recently Adopted Accounting Standards
The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs"). Management determined that recently issued ASUs are not expected to have a material impact on the Company's consolidated financial statements
v3.22.1
Allowance for Doubtful Accounts
3 Months Ended
Mar. 31, 2022
Receivables [Abstract]  
Allowance for Doubtful Accounts Allowance for Doubtful Accounts
The Company estimates expected credit losses using a number of factors, including customer credit ratings, age of receivables, historical credit loss information and current and forecasted economic conditions (including the impact of the COVID-19 pandemic) which could affect the collectability of the reported amounts. All of these factors have been considered in the estimate of expected credit losses.
The activity related to the allowance for doubtful accounts was as follows:
Three months ended March 31,
(in thousands)20222021
Balance at beginning of period$5,980 $7,698 
Bad debt expense (recovery)922 (445)
Amount of receivables written off(44)(144)
Foreign currency translation and other(72)(32)
Balance at end of period$6,786 $7,077 
v3.22.1
Inventories
3 Months Ended
Mar. 31, 2022
Inventory Disclosure [Abstract]  
Inventories Inventories
The components of inventories were as follows: 
March 31,December 31,
(in thousands)20222021
Raw materials and supplies$121,474 $105,784 
Work-in-process26,721 21,259 
Finished goods300,585 286,271 
Inventories$448,780 $413,314 
v3.22.1
Product Warranty
3 Months Ended
Mar. 31, 2022
Product Warranties Disclosures [Abstract]  
Product Warranty Product Warranty
The Company has defined warranties generally ranging from one to two years. Products covered by the defined warranty policies primarily include all Titleist golf products, FootJoy golf shoes and FootJoy golf outerwear. These product warranties generally obligate the Company to pay for the cost of replacement products, including the cost of shipping replacement products to its customers. The estimated cost of satisfying future warranty claims is accrued at the time the sale is recorded. In estimating future warranty obligations, the Company considers various factors, including its warranty policies and practices, the historical frequency of claims and the cost to replace or repair products under warranty.
The activity related to the Company’s warranty obligation for accrued warranty expense was as follows:
 Three months ended March 31,
(in thousands)20222021
Balance at beginning of period$4,177 $3,831 
Provision995 1,029 
Claims paid/costs incurred(1,045)(918)
Foreign currency translation and other(36)(43)
Balance at end of period$4,091 $3,899 
v3.22.1
Debt and Financing Arrangements
3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Debt and Financing Arrangements Debt and Financing Arrangements
Credit Facility
The credit facility includes a revolving credit facility and a term loan facility. As of March 31, 2022, there were $81.0 million in outstanding borrowings under the revolving credit facility, with a weighted average interest rate of 2.61%. There were no outstanding borrowings under the revolving credit facility as of December 31, 2021. As of March 31, 2022, the Company had available borrowings under its revolving credit facility of $306.7 million after giving effect to $12.3 million of outstanding letters of credit.
The credit agreement contains customary affirmative and restrictive covenants, including, among others, financial covenants based on the Company's leverage and interest coverage ratios. The credit agreement also includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations to be immediately due and payable. As of March 31, 2022, the Company was in compliance with all covenants under the credit agreement.
Other Short-Term Borrowings
The Company has certain unsecured local credit facilities available through its subsidiaries. There were $16.3 million and $0.1 million in outstanding borrowings under the Company's local credit facilities as of March 31, 2022 and December 31, 2021, respectively. The weighted average interest rate applicable to the outstanding borrowings was 0.27% and 2.57% as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022, the Company had available borrowings remaining under these local credit facilities of $38.2 million.
Letters of Credit
As of March 31, 2022 and December 31, 2021, there were outstanding letters of credit related to agreements, including the Company's credit facility, totaling $15.7 million and $17.3 million, respectively, of which $12.8 million and $14.3 million,
respectively, was secured. These agreements provided a maximum commitment for letters of credit of $57.1 million as of March 31, 2022.
v3.22.1
Derivative Financial Instruments
3 Months Ended
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company principally uses derivative financial instruments to reduce the impact of foreign currency fluctuations and interest rate variability on the Company's results of operations. The principal derivative financial instruments the Company enters into are foreign exchange forward contracts and interest rate swaps. The Company does not enter into derivative financial instrument contracts for trading or speculative purposes.
Foreign Exchange Derivative Instruments
Foreign exchange forward contracts are foreign exchange derivative instruments primarily used to reduce foreign currency risk related to transactions denominated in a currency other than functional currency. These instruments are designated as cash flow hedges. The periods of the foreign exchange forward contracts correspond to the periods of the hedged forecasted transactions, which do not exceed 24 months subsequent to the latest balance sheet date. The primary foreign exchange forward contracts pertain to the U.S. dollar, the Japanese yen, the British pound sterling, the Canadian dollar, the Korean won and the euro. The gross U.S. dollar equivalent notional amount outstanding of all foreign exchange forward contracts designated under hedge accounting as of March 31, 2022 and December 31, 2021 was $225.9 million and $228.8 million, respectively.
The Company also enters into foreign exchange forward contracts, which either do not qualify as hedging instruments or have not been designated as such, to reduce foreign currency transaction risk related to certain intercompany assets and liabilities denominated in a currency other than functional currency. These undesignated instruments are recorded at fair value as a derivative asset or liability with the corresponding change in fair value recognized in selling, general and administrative expense. The gross U.S. dollar equivalent notional amount outstanding of all foreign exchange forward contracts not designated under hedge accounting was $19.1 million as of March 31, 2022. There were no outstanding foreign exchange forward contracts not designated under hedge accounting as of December 31, 2021.
Interest Rate Derivative Instruments
The Company enters into interest rate swap contracts to reduce interest rate risk related to floating rate debt. Under the contracts, the Company pays fixed and receives variable rate interest, in effect converting a portion of its floating rate debt to fixed rate debt. Interest rate swap contracts are accounted for as cash flow hedges. As of March 31, 2022 and December 31, 2021, there were no interest rate swap contracts outstanding.
Impact on Financial Statements
The fair value of hedge instruments recognized on the unaudited condensed consolidated balance sheets was as follows:
(in thousands)March 31,December 31,
Balance Sheet LocationHedge Instrument Type20222021
Prepaid and other assetsForeign exchange forward$7,814 $6,320 
Other assetsForeign exchange forward1,991 1,491 
Accrued expenses and other liabilitiesForeign exchange forward808 488 
The hedge instrument gain (loss) recognized in accumulated other comprehensive loss, net of tax was as follows:
 Three months ended
 March 31,
(in thousands)20222021
Type of hedge  
Foreign exchange forward$3,076 $4,376 
Interest rate swap — (9)
 Total$3,076 $4,367 
Gains and losses on derivative instruments designated as cash flow hedges are reclassified from accumulated other comprehensive loss, net of tax at the time the forecasted hedged transaction impacts the statements of operations or at the time the hedge is determined to be ineffective. Based on the current valuation, during the next 12 months the Company expects to reclassify a net gain of $6.7 million related to foreign exchange derivative instruments from accumulated other comprehensive loss, net of tax, into cost of goods sold. For further information related to amounts recognized in accumulated other comprehensive loss, net of tax, see Note 12.
The hedge instrument gain (loss) recognized on the unaudited condensed consolidated statements of operations was as follows:
 Three months ended
 March 31,
(in thousands)20222021
Location of gain (loss) in statements of operations  
Foreign exchange forward:
Cost of goods sold$1,355 $396 
Selling, general and administrative (1)
675 640 
Total $2,030 $1,036 
Interest Rate Swap:
Interest expense, net$— $(959)
Total$— $(959)
_______________________________________________________________________________
(1)    Relates to net 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, as well as its own credit quality, and considers the risk of counterparty default to be minimal.
v3.22.1
Fair Value Measurements
3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Certain assets and liabilities are carried at fair value under U.S. GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.
Assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 were as follows:
 Fair Value Measurements as of 
 March 31, 2022 using: 
(in thousands)Level 1Level 2Level 3Balance Sheet Location
Assets    
Rabbi trust$5,127 $— $— Prepaid and other assets
Foreign exchange derivative instruments— 8,116 — Prepaid and other assets
Deferred compensation program assets779 — — Other assets
Foreign exchange derivative instruments— 1,991 — Other assets
Total assets$5,906 $10,107 $—  
Liabilities    
Foreign exchange derivative instruments$— $808 $— Accrued expenses and other liabilities
Deferred compensation program liabilities779 — — Other noncurrent liabilities
Total liabilities$779 $808 $—  
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 were as follows:
 Fair Value Measurements as of 
 December 31, 2021 using: 
(in thousands)Level 1Level 2Level 3Balance Sheet Location
Assets    
Rabbi trust$5,364 $— $— Prepaid and other assets
Foreign exchange derivative instruments— 6,320 — Prepaid and other assets
Deferred compensation program assets842 — — Other assets
Foreign exchange derivative instruments— 1,491 — Other assets
Total assets$6,206 $7,811 $—  
Liabilities    
Foreign exchange derivative instruments$— $488 $— Accrued expenses and other liabilities
Deferred compensation program liabilities842 — — Other noncurrent liabilities
Total liabilities$842 $488 $—  
Rabbi trust assets are used to fund certain retirement obligations of the Company. The assets underlying the Rabbi trust are equity and fixed income exchange-traded funds.
Deferred compensation program assets and liabilities represent a program where select employees could defer compensation until termination of employment. Effective July 29, 2011, this program was amended to cease all employee compensation deferrals and provided for the distribution of all previously deferred employee compensation. The program remains in effect with respect to the value attributable to the employer match contributed prior to July 29, 2011.
Foreign exchange derivative instruments are foreign exchange forward contracts primarily used to limit currency risk that would otherwise result from changes in foreign exchange rates (Note 6). The Company uses the mid-price of foreign exchange forward rates as of the close of business on the valuation date to value each foreign exchange forward contract at each reporting period.
v3.22.1
Pension and Other Postretirement Benefits
3 Months Ended
Mar. 31, 2022
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits
Components of net periodic benefit cost were as follows: 
 Pension BenefitsPostretirement Benefits
 Three months ended March 31,
(in thousands)2022202120222021
Components of net periodic benefit cost    
Service cost$2,007 $2,135 $160 $162 
Interest cost2,234 1,951 84 75 
Expected return on plan assets(1,871)(2,547)— — 
Settlement expense— 1,419 — — 
Amortization of net loss (gain)935 1,421 (152)(65)
Amortization of prior service cost (credit)69 71 (34)(34)
Net periodic benefit cost$3,374 $4,450 $58 $138 
The non-service cost components of net periodic benefit cost are included in other expense, net in the unaudited condensed consolidated statements of operations.
v3.22.1
Income Taxes
3 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesIncome tax expense decreased by $6.9 million to $20.9 million for the three months ended March 31, 2022 compared to $27.8 million for the three months ended March 31, 2021. The Company’s effective income tax rate ("ETR") was 20.4% for the three months ended March 31, 2022 compared to 24.3% for the three months ended March 31, 2021.The ETR for the three months ended March 31, 2022 differed from the U.S. statutory tax rate primarily due to the impact of the U.S. deduction for foreign derived intangible income and federal and state tax credits, partially offset by the U.S. taxation of foreign income and the Company's geographic mix of income. The ETR for the three months ended March 31, 2021 differed from the U.S. statutory tax rate primarily due to the U.S. taxation of foreign income and the Company's geographic mix of income, partially offset by the impact of the U.S. deduction for foreign derived intangible income and federal and state tax credits
v3.22.1
Common Stock
3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
Common Stock Common Stock
Dividends
The Company declared dividends per common share, including DERs (Note 11), during the periods presented as follows:
Dividends per Common Share
Amount
(in thousands)
2022:
First Quarter$0.180 $13,473 
Total dividends declared in 2022$0.180 $13,473 
2021:
Fourth Quarter$0.165 $12,619 
Third Quarter0.165 12,692 
Second Quarter0.165 12,768 
First Quarter0.165 12,767 
Total dividends declared in 2021$0.660 $50,846 
During the second quarter of 2022, the Company's Board of Directors declared a dividend of $0.180 per share of common stock to shareholders of record as of June 3, 2022 and payable on June 17, 2022.
Share Repurchase Program
As of March 31, 2022, the Board of Directors had authorized the Company to repurchase up to an aggregate of $200.0 million of its issued and outstanding common stock.
Share repurchases may be effected from time to time in open market or privately negotiated transactions, including transactions with affiliates, with the timing of purchases and the amount of stock purchased generally determined at the discretion of the Company consistent with the Company's general working capital needs and within the constraints of the Company’s credit agreement.
As previously disclosed, in connection with this share repurchase program, the Company entered into an agreement with Magnus Holdings Co., Ltd. (“Magnus”), a wholly-owned subsidiary of Fila Holdings Corp., to purchase from Magnus an equal amount of its common stock as it purchases on the open market, up to an aggregate of $24.9 million at the same weighted average per share price (the "2019 Agreement"). As the Company repurchased a cumulative total of $24.9 million of common stock through open market purchases, the determination date, as defined in the 2019 Agreement, was automatically triggered on March 18, 2021. As a result, on April 2, 2021, the Company repurchased 355,341 shares of common stock for an aggregate of $11.1 million from Magnus, in satisfaction of its obligations under the 2019 Agreement.
On November 8, 2021, the Company entered into a new agreement with Magnus to purchase from Magnus an equal amount of its common stock as it purchases on the open market, up to an aggregate of $37.5 million at the same weighted average per share price (the "2021 Agreement"). In relation to the 2021 Agreement, the Company recorded a share repurchase liability of $29.2 million for 537,839 shares of common stock, which was included in accrued expenses and other liabilities and treasury stock on the consolidated balance sheet as of December 31, 2021. Between January 1, 2022 and January 14, 2022, the Company repurchased an additional 161,980 shares of its common stock on the open market for an aggregate of $8.3 million, bringing the cumulative total open market purchases to $37.5 million. As a result, on January 24, 2022, the Company repurchased 699,819 shares of common stock for an aggregate of $37.5 million from Magnus, in satisfaction of its obligations under the 2021 Agreement.
The Company's share repurchase activity was as follows:
Three months ended March 31,
(in thousands, except share and per share amounts)20222021
Shares repurchased in the open market:
Shares repurchased 463,980 56,156 
Average price$46.57 $42.34 
Aggregate value $21,607 $2,377 
Shares repurchased from Magnus:
Shares repurchased699,819 — 
Average price (1)
$53.59 $— 
Aggregate value$37,501 $— 
Total shares repurchased:
Shares repurchased1,163,799 56,156 
Average price$50.79 $42.34 
Aggregate value$59,108 $2,377 
___________________________________
(1)    In accordance with the share repurchase agreement, shares purchased from Magnus are accrued for at the same weighted average price as those purchased on the open market as if the purchase from Magnus had occurred on the same day. As such, the average price of Magnus repurchases during the current period may differ from open market purchases due to the settlement of the previously recorded share repurchase liability, as well as, open market purchases made after the completion of the Magnus Share repurchase agreement.
As of March 31, 2022, the Company had $39.1 million remaining under the current share repurchase authorization. On April 28, 2022, the Board of Directors authorized the Company to repurchase up to an additional $150.0 million of its issued and outstanding common stock, bringing the total authorization up to $350.0 million. This program will remain in effect until completed or until terminated by the Board of Directors.
v3.22.1
Equity Incentive Plans
3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
Equity Incentive Plans Equity Incentive Plans
Under the Acushnet Holdings Corp. 2015 Omnibus Incentive Plan (“2015 Plan”), the Company may grant stock options, stock appreciation rights, restricted shares of common stock, restricted stock units ("RSUs"), performance stock units ("PSUs") and other share-based and cash-based awards to members of the Board of Directors, officers, employees, consultants and advisors of the Company. As of March 31, 2022, the only awards granted under the 2015 Plan were RSUs and PSUs.
Restricted Stock and Performance Stock Units
RSUs granted to members of the Board of Directors vest immediately into shares of common stock. RSUs granted to Company officers generally vest over three years, with one-third of each grant vesting annually, subject to the recipient's continued employment with the Company. RSUs granted to other employees, consultants and advisors of the Company vest in accordance with the terms of the grants, generally either over three years or, beginning in 2022, with one-third of each grant vesting annually, subject to the recipient’s continued service to the Company. PSUs granted to Company officers and other employees vest based upon the Company's performance against specified metrics, generally over a three-year performance period, subject to the recipient's continued service to the Company. At the end of the performance period, the number of shares of common stock that could be issued is determined based upon the Company's performance against these metrics. The number of shares that could be issued can range from 0% to 200% of the recipient's target award. Recipients of the awards granted under the 2015 Plan may elect to defer receipt of all or any portion of any shares of common stock issuable upon vesting to a future date elected by the recipient.
All RSUs and PSUs granted under the 2015 Plan have DERs, which entitle holders of RSUs and PSUs to the same dividend value per share as holders of common stock and can be paid in either cash or common stock. DERs are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs and PSUs. DERs are paid when the underlying shares of common stock are delivered.
A summary of the Company’s RSUs and PSUs as of March 31, 2022 and changes during the three months then ended is presented below: 
 Weighted-Weighted-
 NumberAverageNumberAverage
 of RSUsFair Value RSUsof PSUsFair Value PSUs
Outstanding as of December 31, 2021691,373 $33.66 367,067 $32.84 
Granted345,230 43.96 167,587 43.96 
Vested (1)
(68,189)32.72 — — 
Forfeited(5,617)31.26 — — 
Outstanding as of March 31, 2022962,797 $37.43 534,654 $36.32 

_______________________________________________________________________________
(1) Includes 41,173 shares of common stock related to RSUs that were not delivered as of March 31, 2022.
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:
Three months endedThree months ended
 March 31, 2022March 31, 2021
RSUsPSUsRSUsPSUs
Shares of common stock issued492,580 188,527 270,779 — 
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations
(159,851)(87,215)(89,938)— 
Net shares of common stock issued332,729 101,312 180,841 — 
Cumulative undelivered shares of common stock414,866 191,242 395,670 — 
Compensation expense recorded related to RSUs and PSUs in the unaudited condensed consolidated statements of operations was as follows:
 Three months ended
March 31,
(in thousands)20222021
RSUs$2,770 $2,359 
PSUs2,419 3,010 
The remaining unrecognized compensation expense related to unvested RSUs and unvested PSUs was $25.8 million and $18.3 million, respectively, as of March 31, 2022 and are expected to be recognized over the related weighted average period of 1.7 years and 2.1 years, respectively.
Compensation Expense
The allocation of share-based compensation expense in the unaudited condensed consolidated statements of operations was as follows:
 Three months ended
March 31,
(in thousands)20222021
Cost of goods sold$300 $(7)
Selling, general and administrative4,698 5,381 
Research and development355 159 
Total compensation expense before income tax5,353 5,533 
Income tax benefit1,176 1,267 
Total compensation expense, net of income tax$4,177 $4,266 
v3.22.1
Accumulated Other Comprehensive Loss, Net of Tax
3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
Accumulated Other Comprehensive Loss, Net of Tax Accumulated Other Comprehensive Loss, Net of Tax
Accumulated other comprehensive loss, net of tax consists of foreign currency translation adjustments, unrealized gains and losses from derivative instruments designated as cash flow hedges (Note 6) and pension and other postretirement adjustments (Note 8).
The components of and adjustments to accumulated other comprehensive loss, net of tax, were as follows:
 ForeignAccumulated
 ForeignExchangePension andOther
CurrencyDerivativeOtherComprehensive
(in thousands)TranslationInstrumentsPostretirementLoss, Net of Tax
Balance as of December 31, 2021$(66,915)$5,167 $(37,834)$(99,582)
Other comprehensive (loss) income before reclassifications(7,570)3,076 1,045 (3,449)
Amounts reclassified from accumulated other comprehensive loss, net of tax— (1,355)818 (537)
Tax expense— (516)(443)(959)
Balance as of March 31, 2022$(74,485)$6,372 $(36,414)$(104,527)
v3.22.1
Net Income per Common Share
3 Months Ended
Mar. 31, 2022
Earnings Per Share [Abstract]  
Net Income per Common Share Net Income per Common Share
The following is a computation of basic and diluted net income per common share attributable to Acushnet Holdings Corp.:
 Three months ended
 March 31,
(in thousands, except share and per share amounts)20222021
Net income attributable to Acushnet Holdings Corp.$81,045 $84,958 
Weighted average number of common shares:
Basic73,513,109 74,778,189 
RSUs325,550 477,123 
PSUs84,069 — 
Diluted73,922,728 75,255,312 
Net income per common share attributable to Acushnet Holdings Corp.:
Basic$1.10 $1.14 
Diluted$1.10 $1.13 
Net income per common share attributable to Acushnet Holdings Corp. was calculated using the treasury stock method.
The Company’s potential dilutive securities for the three months ended March 31, 2022 and 2021 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 March 31, 2022, the minimum performance target was achieved relating to certain PSUs and as a result, these PSUs have been included in diluted shares outstanding for the three months ended March 31, 2022.
The following securities have been excluded from the calculation of diluted weighted-average common shares outstanding as their impact was determined to be anti-dilutive:
 Three months ended
 March 31,
 20222021
RSUs66,405 291,484 
v3.22.1
Segment Information
3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company’s operating segments are based on how the Chief Operating Decision Maker (“CODM”) makes decisions about assessing performance and allocating resources. The Company has four reportable segments that are organized on the basis of product categories. These segments include Titleist golf balls, Titleist golf clubs, Titleist golf gear and FootJoy golf wear.
The CODM primarily evaluates performance using segment operating income (loss). Segment operating income (loss) includes directly attributable expenses and certain shared costs of corporate administration that are allocated to the reportable segments, but excludes interest expense, net, restructuring charges, the non-service cost component of net periodic benefit cost, transaction fees and other non-operating gains and losses as the Company does not allocate these to the reportable segments. The CODM does not evaluate a measure of assets when assessing performance.
Results shown for the three months ended March 31, 2022 and 2021 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. There are no intersegment transactions.
Information by reportable segment and a reconciliation to reported amounts are as follows:
Three months ended March 31,
(in thousands)20222021
Net sales  
Titleist golf balls$163,838 $173,637 
Titleist golf clubs160,815 155,827 
Titleist golf gear44,146 53,120 
FootJoy golf wear197,553 159,434 
Other39,735 38,867 
Total net sales$606,087 $580,885 
Segment operating income  
Titleist golf balls$33,373 $34,317 
Titleist golf clubs32,228 41,799 
Titleist golf gear2,194 9,728 
FootJoy golf wear31,315 28,117 
Other7,427 6,471 
Total segment operating income106,537 120,432 
Reconciling items:  
Interest expense, net(1,277)(3,616)
Non-service cost component of net periodic benefit cost(1,265)(2,291)
Other(1,229)(64)
Total income before income tax$102,766 $114,461 
Information as to the Company’s operations in different geographical areas is presented below. Net sales are categorized based on the location in which the sale originates.
Three months ended March 31,
(in thousands)20222021
United States$295,126 $308,636 
EMEA (1)
112,357 80,575 
Japan45,795 56,377 
Korea85,717 79,097 
Rest of world67,092 56,200 
Total net sales$606,087 $580,885 
_______________________________________________________________________________
(1) Europe, the Middle East and Africa ("EMEA")
v3.22.1
Commitments and Contingencies
3 Months Ended
Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Purchase Obligations
During the normal course of its business, the Company enters into agreements to purchase goods and services, including purchase commitments for advertising (including media placement and production costs), finished goods inventory, capital expenditures and endorsement arrangements with professional golfers.
The Company's purchase obligations as of March 31, 2022 were as follows:
 Payments Due by Period
 Remainder of     
(in thousands)20222023202420252026Thereafter
Purchase obligations (1)
$286,896 $30,476 $12,415 $7,485 $2,424 $34,791 
_______________________________________________________________________________
(1)    The reported amounts exclude those liabilities included on the unaudited condensed consolidated balance sheet as of March 31, 2022.
Litigation
The Company and its subsidiaries are party to lawsuits associated with the normal conduct of their businesses and operations. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that some of these actions could be decided unfavorably. Consequently, the Company is unable to estimate the ultimate aggregate amount of monetary loss, amounts covered by insurance or the financial impact that will result from such matters and has not recorded a liability related to potential losses.
v3.22.1
Summary of Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of Acushnet Holdings Corp. (the “Company”), its wholly-owned subsidiaries and less than wholly-owned subsidiaries, including a variable interest entity (“VIE”) in which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.
Certain information in footnote disclosures normally included in annual financial statements has been condensed or omitted for the interim periods presented in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP. The year-end balance sheet data was derived from audited financial statements; however, the accompanying interim notes to the unaudited condensed consolidated financial statements do not include all disclosures required by U.S. GAAP. In the opinion of management, the financial statements contain all normal and recurring adjustments necessary to state fairly the financial position and results of operations of the Company. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of results to be expected for the full year ending December 31, 2022, nor were those of the comparable 2021 period representative of those actually experienced for the full year ended December 31, 2021. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the fiscal year ended December 31, 2021 included in its Annual Report on Form 10-K filed with the SEC on March 1, 2022.
Use of Estimates
Use of Estimates
The preparation of the Company’s unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
The Company has evaluated and continues to evaluate the potential impact of the COVID-19 pandemic on its consolidated financial statements. The impact of the COVID-19 pandemic continues to evolve, and both the full impact and duration of the COVID-19 pandemic remain highly uncertain. Accordingly, the Company's business, results of operations, financial position and cash flows could be materially impacted in ways that the Company cannot currently predict.
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 March 31, 2022 and December 31, 2021. 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. The financial results and position of noncontrolling interests are included in the Company’s
unaudited condensed consolidated financial statements. The value attributable to the noncontrolling interests is presented on the unaudited condensed consolidated balance sheets, separately from the equity attributable to the Company. Net income (loss) and comprehensive income (loss) attributable to noncontrolling interests are presented separately on the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of comprehensive income, respectively. Redeemable noncontrolling interests are those noncontrolling interests which are or may become redeemable at a fixed or determinable price on a fixed or determinable date, at the option of the holder, or upon occurrence of an event. The Company initially recorded the redeemable noncontrolling interest at its acquisition date fair value. The carrying amount of the redeemable noncontrolling interest is subsequently adjusted to the greater amount of either the initial carrying amount, increased or decreased for the redeemable noncontrolling interest's share of comprehensive income (loss) or the redemption value, assuming the noncontrolling interest is redeemable at the balance sheet date. This adjustment is recognized through retained earnings and is not reflected in net income (loss) or comprehensive income (loss). The value attributable to the redeemable noncontrolling interest and the related loan to minority shareholders, which is recorded as a reduction to redeemable noncontrolling interest, is presented in the unaudited condensed consolidated balance sheets as temporary equity between liabilities and shareholders’ equity. The amount of the loan to minority shareholders was $4.4 million as of both March 31, 2022 and December 31, 2021.
Cash, Cash Equivalents and Restricted Cash Cash, Cash Equivalents and Restricted CashCash held in Company checking accounts is included in cash. Cash equivalents consist of short-term highly liquid investments with original maturities of three months or less which are readily convertible into cash. The Company classifies as restricted certain cash that is not available for use in its operations.
Foreign Currency Translation and Transactions
Foreign Currency Translation and Transactions
Foreign currency transaction losses included in selling, general and administrative expense were $1.8 million and $1.0 million for the three months ended March 31, 2022 and 2021, respectively.
Recently Adopted Accounting Standards Recently Adopted Accounting StandardsThe Company considers the applicability and impact of all Accounting Standards Updates ("ASUs"). Management determined that recently issued ASUs are not expected to have a material impact on the Company's consolidated financial statements
v3.22.1
Allowance for Doubtful Accounts (Tables)
3 Months Ended
Mar. 31, 2022
Receivables [Abstract]  
Schedule of Activity Related to the Allowance for Doubtful Accounts
The activity related to the allowance for doubtful accounts was as follows:
Three months ended March 31,
(in thousands)20222021
Balance at beginning of period$5,980 $7,698 
Bad debt expense (recovery)922 (445)
Amount of receivables written off(44)(144)
Foreign currency translation and other(72)(32)
Balance at end of period$6,786 $7,077 
v3.22.1
Inventories (Tables)
3 Months Ended
Mar. 31, 2022
Inventory Disclosure [Abstract]  
Schedule of Inventory
The components of inventories were as follows: 
March 31,December 31,
(in thousands)20222021
Raw materials and supplies$121,474 $105,784 
Work-in-process26,721 21,259 
Finished goods300,585 286,271 
Inventories$448,780 $413,314 
v3.22.1
Product Warranty (Tables)
3 Months Ended
Mar. 31, 2022
Product Warranties Disclosures [Abstract]  
Schedule of Warranty Obligation for Accrued Warranty Expense
The activity related to the Company’s warranty obligation for accrued warranty expense was as follows:
 Three months ended March 31,
(in thousands)20222021
Balance at beginning of period$4,177 $3,831 
Provision995 1,029 
Claims paid/costs incurred(1,045)(918)
Foreign currency translation and other(36)(43)
Balance at end of period$4,091 $3,899 
v3.22.1
Derivative Financial Instruments (Tables)
3 Months Ended
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Values of Hedge Instruments on the Unaudited Condensed Consolidated Balance Sheets
The fair value of hedge instruments recognized on the unaudited condensed consolidated balance sheets was as follows:
(in thousands)March 31,December 31,
Balance Sheet LocationHedge Instrument Type20222021
Prepaid and other assetsForeign exchange forward$7,814 $6,320 
Other assetsForeign exchange forward1,991 1,491 
Accrued expenses and other liabilitiesForeign exchange forward808 488 
Schedule of Effect of Hedge Instruments on Accumulated Other Comprehensive Loss, Net of Tax
The hedge instrument gain (loss) recognized in accumulated other comprehensive loss, net of tax was as follows:
 Three months ended
 March 31,
(in thousands)20222021
Type of hedge  
Foreign exchange forward$3,076 $4,376 
Interest rate swap — (9)
 Total$3,076 $4,367 
Schedule of Effect of Hedge Instrument in the Unaudited Condensed Consolidated Statement of Operations
The hedge instrument gain (loss) recognized on the unaudited condensed consolidated statements of operations was as follows:
 Three months ended
 March 31,
(in thousands)20222021
Location of gain (loss) in statements of operations  
Foreign exchange forward:
Cost of goods sold$1,355 $396 
Selling, general and administrative (1)
675 640 
Total $2,030 $1,036 
Interest Rate Swap:
Interest expense, net$— $(959)
Total$— $(959)
_______________________________________________________________________________
(1)    Relates to net gains (losses) on foreign exchange forward contracts derived from previously designated cash flow hedges.
v3.22.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2022
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 March 31, 2022 were as follows:
 Fair Value Measurements as of 
 March 31, 2022 using: 
(in thousands)Level 1Level 2Level 3Balance Sheet Location
Assets    
Rabbi trust$5,127 $— $— Prepaid and other assets
Foreign exchange derivative instruments— 8,116 — Prepaid and other assets
Deferred compensation program assets779 — — Other assets
Foreign exchange derivative instruments— 1,991 — Other assets
Total assets$5,906 $10,107 $—  
Liabilities    
Foreign exchange derivative instruments$— $808 $— Accrued expenses and other liabilities
Deferred compensation program liabilities779 — — Other noncurrent liabilities
Total liabilities$779 $808 $—  
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 were as follows:
 Fair Value Measurements as of 
 December 31, 2021 using: 
(in thousands)Level 1Level 2Level 3Balance Sheet Location
Assets    
Rabbi trust$5,364 $— $— Prepaid and other assets
Foreign exchange derivative instruments— 6,320 — Prepaid and other assets
Deferred compensation program assets842 — — Other assets
Foreign exchange derivative instruments— 1,491 — Other assets
Total assets$6,206 $7,811 $—  
Liabilities    
Foreign exchange derivative instruments$— $488 $— Accrued expenses and other liabilities
Deferred compensation program liabilities842 — — Other noncurrent liabilities
Total liabilities$842 $488 $—  
v3.22.1
Pension and Other Postretirement Benefits (Tables)
3 Months Ended
Mar. 31, 2022
Retirement Benefits [Abstract]  
Schedule of Components of Net Periodic Benefit Cost
Components of net periodic benefit cost were as follows: 
 Pension BenefitsPostretirement Benefits
 Three months ended March 31,
(in thousands)2022202120222021
Components of net periodic benefit cost    
Service cost$2,007 $2,135 $160 $162 
Interest cost2,234 1,951 84 75 
Expected return on plan assets(1,871)(2,547)— — 
Settlement expense— 1,419 — — 
Amortization of net loss (gain)935 1,421 (152)(65)
Amortization of prior service cost (credit)69 71 (34)(34)
Net periodic benefit cost$3,374 $4,450 $58 $138 
v3.22.1
Common Stock (Tables)
3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
Schedule of Declared Dividends Per Share
The Company declared dividends per common share, including DERs (Note 11), during the periods presented as follows:
Dividends per Common Share
Amount
(in thousands)
2022:
First Quarter$0.180 $13,473 
Total dividends declared in 2022$0.180 $13,473 
2021:
Fourth Quarter$0.165 $12,619 
Third Quarter0.165 12,692 
Second Quarter0.165 12,768 
First Quarter0.165 12,767 
Total dividends declared in 2021$0.660 $50,846 
Schedule of Share Repurchase Activity
The Company's share repurchase activity was as follows:
Three months ended March 31,
(in thousands, except share and per share amounts)20222021
Shares repurchased in the open market:
Shares repurchased 463,980 56,156 
Average price$46.57 $42.34 
Aggregate value $21,607 $2,377 
Shares repurchased from Magnus:
Shares repurchased699,819 — 
Average price (1)
$53.59 $— 
Aggregate value$37,501 $— 
Total shares repurchased:
Shares repurchased1,163,799 56,156 
Average price$50.79 $42.34 
Aggregate value$59,108 $2,377 
___________________________________
(1)    In accordance with the share repurchase agreement, shares purchased from Magnus are accrued for at the same weighted average price as those purchased on the open market as if the purchase from Magnus had occurred on the same day. As such, the average price of Magnus repurchases during the current period may differ from open market purchases due to the settlement of the previously recorded share repurchase liability, as well as, open market purchases made after the completion of the Magnus Share repurchase agreement.
v3.22.1
Equity Incentive Plans (Tables)
3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
Schedule of Restricted and Performance Stock Units
A summary of the Company’s RSUs and PSUs as of March 31, 2022 and changes during the three months then ended is presented below: 
 Weighted-Weighted-
 NumberAverageNumberAverage
 of RSUsFair Value RSUsof PSUsFair Value PSUs
Outstanding as of December 31, 2021691,373 $33.66 367,067 $32.84 
Granted345,230 43.96 167,587 43.96 
Vested (1)
(68,189)32.72 — — 
Forfeited(5,617)31.26 — — 
Outstanding as of March 31, 2022962,797 $37.43 534,654 $36.32 

_______________________________________________________________________________
(1) Includes 41,173 shares of common stock related to RSUs that were not delivered as of March 31, 2022.
Schedule of Shares of Common Stock Issued
A summary of shares of common stock issued related to the 2015 Plan, including the impact of any DERs issued in common stock, is presented below:
Three months endedThree months ended
 March 31, 2022March 31, 2021
RSUsPSUsRSUsPSUs
Shares of common stock issued492,580 188,527 270,779 — 
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations
(159,851)(87,215)(89,938)— 
Net shares of common stock issued332,729 101,312 180,841 — 
Cumulative undelivered shares of common stock414,866 191,242 395,670 — 
Schedule of Compensation Expense Recorded in the Consolidated Statement of Operations
Compensation expense recorded related to RSUs and PSUs in the unaudited condensed consolidated statements of operations was as follows:
 Three months ended
March 31,
(in thousands)20222021
RSUs$2,770 $2,359 
PSUs2,419 3,010 
Schedule of Compensation Expense Related to Equity Incentive Plans
The allocation of share-based compensation expense in the unaudited condensed consolidated statements of operations was as follows:
 Three months ended
March 31,
(in thousands)20222021
Cost of goods sold$300 $(7)
Selling, general and administrative4,698 5,381 
Research and development355 159 
Total compensation expense before income tax5,353 5,533 
Income tax benefit1,176 1,267 
Total compensation expense, net of income tax$4,177 $4,266 
v3.22.1
Accumulated Other Comprehensive Loss, Net of Tax (Tables)
3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
Schedule of Changes in Each Component of Accumulated Comprehensive Loss, Net of Tax Effects
The components of and adjustments to accumulated other comprehensive loss, net of tax, were as follows:
 ForeignAccumulated
 ForeignExchangePension andOther
CurrencyDerivativeOtherComprehensive
(in thousands)TranslationInstrumentsPostretirementLoss, Net of Tax
Balance as of December 31, 2021$(66,915)$5,167 $(37,834)$(99,582)
Other comprehensive (loss) income before reclassifications(7,570)3,076 1,045 (3,449)
Amounts reclassified from accumulated other comprehensive loss, net of tax— (1,355)818 (537)
Tax expense— (516)(443)(959)
Balance as of March 31, 2022$(74,485)$6,372 $(36,414)$(104,527)
v3.22.1
Net Income per Common Share (Tables)
3 Months Ended
Mar. 31, 2022
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Net Income Per Common Share
The following is a computation of basic and diluted net income per common share attributable to Acushnet Holdings Corp.:
 Three months ended
 March 31,
(in thousands, except share and per share amounts)20222021
Net income attributable to Acushnet Holdings Corp.$81,045 $84,958 
Weighted average number of common shares:
Basic73,513,109 74,778,189 
RSUs325,550 477,123 
PSUs84,069 — 
Diluted73,922,728 75,255,312 
Net income per common share attributable to Acushnet Holdings Corp.:
Basic$1.10 $1.14 
Diluted$1.10 $1.13 
Schedule of Securities Excluded From the Calculation of Diluted Weighted Average Common Shares
The following securities have been excluded from the calculation of diluted weighted-average common shares outstanding as their impact was determined to be anti-dilutive:
 Three months ended
 March 31,
 20222021
RSUs66,405 291,484 
v3.22.1
Segment Information (Tables)
3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Schedule of Information by Reportable Segment and a Reconciliation to Reported Amounts
Information by reportable segment and a reconciliation to reported amounts are as follows:
Three months ended March 31,
(in thousands)20222021
Net sales  
Titleist golf balls$163,838 $173,637 
Titleist golf clubs160,815 155,827 
Titleist golf gear44,146 53,120 
FootJoy golf wear197,553 159,434 
Other39,735 38,867 
Total net sales$606,087 $580,885 
Segment operating income  
Titleist golf balls$33,373 $34,317 
Titleist golf clubs32,228 41,799 
Titleist golf gear2,194 9,728 
FootJoy golf wear31,315 28,117 
Other7,427 6,471 
Total segment operating income106,537 120,432 
Reconciling items:  
Interest expense, net(1,277)(3,616)
Non-service cost component of net periodic benefit cost(1,265)(2,291)
Other(1,229)(64)
Total income before income tax$102,766 $114,461 
Schedule of Net Sales By Geographical Area
Information as to the Company’s operations in different geographical areas is presented below. Net sales are categorized based on the location in which the sale originates.
Three months ended March 31,
(in thousands)20222021
United States$295,126 $308,636 
EMEA (1)
112,357 80,575 
Japan45,795 56,377 
Korea85,717 79,097 
Rest of world67,092 56,200 
Total net sales$606,087 $580,885 
_______________________________________________________________________________
(1) Europe, the Middle East and Africa ("EMEA")
v3.22.1
Commitments and Contingencies (Tables)
3 Months Ended
Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Purchase Obligations
The Company's purchase obligations as of March 31, 2022 were as follows:
 Payments Due by Period
 Remainder of     
(in thousands)20222023202420252026Thereafter
Purchase obligations (1)
$286,896 $30,476 $12,415 $7,485 $2,424 $34,791 
_______________________________________________________________________________
(1)    The reported amounts exclude those liabilities included on the unaudited condensed consolidated balance sheet as of March 31, 2022.
v3.22.1
Summary of Significant Accounting Policies - Narrative (Details) - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Variable Interest Entity [Line Items]      
Loan to minority shareholders included in temporary equity $ 4,400,000   $ 4,400,000
Restricted cash 1,800,000   1,900,000
Transaction gains (losses) included in selling, general and administrative expense $ (1,800,000) $ (1,000,000)  
VIE      
Variable Interest Entity [Line Items]      
Ownership percentage 40.00%    
Outstanding borrowings $ 0   $ 0
v3.22.1
Allowance for Doubtful Accounts (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Balance at beginning of period $ 5,980 $ 7,698
Bad debt expense (recovery) 922 (445)
Amount of receivables written off (44) (144)
Foreign currency translation and other (72) (32)
Balance at end of period $ 6,786 $ 7,077
v3.22.1
Inventories (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Inventory Disclosure [Abstract]    
Raw materials and supplies $ 121,474 $ 105,784
Work-in-process 26,721 21,259
Finished goods 300,585 286,271
Inventories $ 448,780 $ 413,314
v3.22.1
Product Warranty (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Activity for accrued warranty expense    
Balance at beginning of period $ 4,177 $ 3,831
Provision 995 1,029
Claims paid/costs incurred (1,045) (918)
Foreign currency translation and other (36) (43)
Balance at end of period $ 4,091 $ 3,899
Minimum    
Product Warranty Liability [Line Items]    
Product warranty period 1 year  
Maximum    
Product Warranty Liability [Line Items]    
Product warranty period 2 years  
v3.22.1
Debt and Financing Arrangements (Details) - USD ($)
Mar. 31, 2022
Dec. 31, 2021
Unsecured local credit facilities    
Line of Credit Facility [Line Items]    
Weighted average interest rate 0.27% 2.57%
Available borrowings $ 38,200,000  
Other short-term borrowings, outstanding borrowings 16,300,000 $ 100,000
Revolving Credit Facility    
Line of Credit Facility [Line Items]    
Outstanding borrowings $ 81,000,000 0
Weighted average interest rate 2.61%  
Available borrowings $ 306,700,000  
Letters of credit outstanding 12,300,000  
Letters of Credit    
Line of Credit Facility [Line Items]    
Outstanding borrowings 15,700,000 17,300,000
Line of credit secured 12,800,000 $ 14,300,000
Maximum commitment $ 57,100,000  
v3.22.1
Derivative Instruments and Hedging Activities - Narrative (Details)
3 Months Ended
Mar. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
derivative
Foreign exchange forward    
Derivatives, Fair Value [Line Items]    
Expected reclassification of gain (loss) recorded in accumulated other comprehensive loss, net of tax into cost of goods sold during next twelve months $ 6,700,000  
Foreign exchange forward | Derivative designated as hedging    
Derivatives, Fair Value [Line Items]    
Notional amount 225,900,000 $ 228,800,000
Foreign exchange forward | Not designated as hedging instrument    
Derivatives, Fair Value [Line Items]    
Notional amount $ 19,100,000  
Number of outstanding contracts | derivative   0
Foreign exchange forward | Maximum    
Derivatives, Fair Value [Line Items]    
Term of derivative contract 24 months  
Interest rate swap | Derivative designated as hedging    
Derivatives, Fair Value [Line Items]    
Notional amount $ 0 $ 0
v3.22.1
Derivative Financial Instruments - Fair Value of Hedge Instruments in Unaudited Condensed Consolidated Balance Sheets (Details) - Foreign exchange forward - Derivative Designated as Hedging - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Prepaid and other assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives $ 7,814 $ 6,320
Other assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives 1,991 1,491
Accrued expenses and other liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives $ 808 $ 488
v3.22.1
Derivative Instruments and Hedging Activities - Effect of Hedge Instruments in Unaudited Condensed Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Derivative Instruments, Gain (Loss) [Line Items]    
Gain (loss) recognized in accumulated other comprehensive loss, net of tax $ 3,076 $ 4,367
Cash flow hedge | Derivative designated as hedging    
Derivative Instruments, Gain (Loss) [Line Items]    
Gain (loss) recognized in accumulated other comprehensive loss, net of tax 3,076 4,367
Foreign exchange forward | Cash flow hedge | Derivative designated as hedging    
Derivative Instruments, Gain (Loss) [Line Items]    
Gain (loss) recognized in accumulated other comprehensive loss, net of tax 3,076 4,376
Interest rate swap | Cash flow hedge | Derivative designated as hedging    
Derivative Instruments, Gain (Loss) [Line Items]    
Gain (loss) recognized in accumulated other comprehensive loss, net of tax $ 0 $ (9)
v3.22.1
Derivative Financial Instruments - Effect of Hedge Instruments in Unaudited Condensed Comprehensive Income (Loss) And Statement of Operations (Details) - Derivative designated as hedging - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Foreign exchange forward    
Derivative Instruments, Gain (Loss) [Line Items]    
Gain (loss) recognized on unaudited condensed consolidated statements of operations $ 2,030 $ 1,036
Foreign exchange forward | Cost of goods sold    
Derivative Instruments, Gain (Loss) [Line Items]    
Gain (loss) recognized on unaudited condensed consolidated statements of operations 1,355 396
Foreign exchange forward | Selling, general and administrative    
Derivative Instruments, Gain (Loss) [Line Items]    
Gain (loss) recognized on unaudited condensed consolidated statements of operations 675 640
Interest rate swap    
Derivative Instruments, Gain (Loss) [Line Items]    
Gain (loss) recognized on unaudited condensed consolidated statements of operations 0 (959)
Interest rate swap | Interest expense, net    
Derivative Instruments, Gain (Loss) [Line Items]    
Gain (loss) recognized on unaudited condensed consolidated statements of operations $ 0 $ (959)
v3.22.1
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Level 1    
Assets    
Total assets $ 5,906 $ 6,206
Liabilities    
Total liabilities 779 842
Level 2    
Assets    
Total assets 10,107 7,811
Liabilities    
Total liabilities 808 488
Level 3    
Assets    
Total assets 0 0
Liabilities    
Total liabilities 0 0
Prepaid and other assets | Level 1    
Assets    
Rabbi trust 5,127 5,364
Prepaid and other assets | Level 2    
Assets    
Rabbi trust 0 0
Prepaid and other assets | Level 3    
Assets    
Rabbi trust 0 0
Prepaid and other assets | Foreign exchange derivative instruments | Level 1    
Assets    
Derivative instruments 0 0
Prepaid and other assets | Foreign exchange derivative instruments | Level 2    
Assets    
Derivative instruments 8,116 6,320
Prepaid and other assets | Foreign exchange derivative instruments | Level 3    
Assets    
Derivative instruments 0 0
Other assets | Level 1    
Assets    
Deferred compensation program assets 779 842
Other assets | Level 2    
Assets    
Deferred compensation program assets 0 0
Other assets | Level 3    
Assets    
Deferred compensation program assets 0 0
Other assets | Foreign exchange derivative instruments | Level 1    
Assets    
Derivative instruments 0 0
Other assets | Foreign exchange derivative instruments | Level 2    
Assets    
Derivative instruments 1,991 1,491
Other assets | Foreign exchange derivative instruments | Level 3    
Assets    
Derivative instruments 0 0
Accrued expenses and other liabilities | Foreign exchange derivative instruments | Level 1    
Liabilities    
Derivative instruments 0 0
Accrued expenses and other liabilities | Foreign exchange derivative instruments | Level 2    
Liabilities    
Derivative instruments 808 488
Accrued expenses and other liabilities | Foreign exchange derivative instruments | Level 3    
Liabilities    
Derivative instruments 0 0
Other noncurrent liabilities | Level 1    
Liabilities    
Deferred compensation program liabilities 779 842
Other noncurrent liabilities | Level 2    
Liabilities    
Deferred compensation program liabilities 0 0
Other noncurrent liabilities | Level 3    
Liabilities    
Deferred compensation program liabilities $ 0 $ 0
v3.22.1
Pension and Other Postretirement Benefits (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Pension Benefits    
Components of net periodic benefit cost    
Service cost $ 2,007 $ 2,135
Interest cost 2,234 1,951
Expected return on plan assets (1,871) (2,547)
Settlement expense 0 1,419
Amortization of net loss (gain) 935 1,421
Amortization of prior service cost (credit) 69 71
Net periodic benefit cost 3,374 4,450
Postretirement Benefits    
Components of net periodic benefit cost    
Service cost 160 162
Interest cost 84 75
Expected return on plan assets 0 0
Settlement expense 0 0
Amortization of net loss (gain) (152) (65)
Amortization of prior service cost (credit) (34) (34)
Net periodic benefit cost $ 58 $ 138
v3.22.1
Income Taxes (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income Tax Disclosure [Abstract]    
Decrease in income tax expense $ 6,900  
Income tax expense (benefit) $ 20,919 $ 27,834
Effective tax rate 20.40% 24.30%
v3.22.1
Common Stock - Dividends (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2021
May 05, 2022
Dividends Payable [Line Items]              
Dividends per Common Share (in dollars per share) $ 0.180 $ 0.165 $ 0.165 $ 0.165 $ 0.165 $ 0.660  
Amount $ 13,473 $ 12,619 $ 12,692 $ 12,768 $ 12,767 $ 50,846  
Subsequent Event              
Dividends Payable [Line Items]              
Dividends declared and payable (in dollars per share)             $ 0.180
v3.22.1
Common Stock - Share Repurchase Program (Details) - USD ($)
3 Months Ended
Jan. 24, 2022
Jan. 14, 2022
Apr. 02, 2021
Mar. 31, 2022
Mar. 31, 2021
Apr. 28, 2022
Dec. 31, 2021
Nov. 08, 2021
Dividends Payable [Line Items]                
Issued and outstanding common stock authorized to repurchase       $ 200,000,000        
Shares repurchased (in shares)       1,163,799 56,156      
Aggregate value       $ 59,108,000 $ 2,377,000      
Accrued share repurchase (in shares)             537,839  
Amount remaining under current authorizations       39,100,000        
Subsequent Event                
Dividends Payable [Line Items]                
Issued and outstanding common stock authorized to repurchase           $ 350,000,000    
Stock repurchase program, additional authorized amount           $ 150,000,000    
Magnus                
Dividends Payable [Line Items]                
Stock repurchase program, authorized amount       24,900,000        
Aggregate purchases of shares in open market before shares will be purchased from Magnus   $ 37,500,000   $ 24,900,000       $ 37,500,000
Shares repurchased (in shares) 699,819   355,341          
Aggregate value $ 37,500,000   $ 11,100,000          
Share repurchase liability             $ 29,200,000  
Accrued share repurchase (in shares)             537,839  
Open Market                
Dividends Payable [Line Items]                
Shares repurchased (in shares)   161,980   463,980 56,156      
Aggregate value   $ 8,300,000   $ 21,607,000 $ 2,377,000      
v3.22.1
Common Stock - Schedule of Share Repurchase Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended
Jan. 14, 2022
Mar. 31, 2022
Mar. 31, 2021
Dividends Payable [Line Items]      
Shares repurchased (in shares)   1,163,799 56,156
Average price (in dollars per share)   $ 50.79 $ 42.34
Aggregate value   $ 59,108 $ 2,377
Open Market      
Dividends Payable [Line Items]      
Shares repurchased (in shares) 161,980 463,980 56,156
Average price (in dollars per share)   $ 46.57 $ 42.34
Aggregate value $ 8,300 $ 21,607 $ 2,377
Magnus      
Dividends Payable [Line Items]      
Shares repurchased (in shares)   699,819 0
Average price (in dollars per share)   $ 53.59 $ 0
Aggregate value   $ 37,501 $ 0
v3.22.1
Equity Incentive Plans - Narrative (Details)
$ in Millions
3 Months Ended
Mar. 31, 2022
USD ($)
RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation expense $ 25.8
Weighted average period 1 year 8 months 12 days
PSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period 3 years
Unrecognized compensation expense $ 18.3
Weighted average period 2 years 1 month 6 days
Minimum | PSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percentage 0.00%
Maximum | PSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percentage 200.00%
Company officers | RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period 3 years
Vesting percentage 33.33%
Officers, employees, consultants and advisors | RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period 3 years
v3.22.1
Equity Incentive Plans - Restricted Stock and Performance Stock Units (Details) - 2015 Omnibus Incentive Plan
3 Months Ended
Mar. 31, 2022
$ / shares
shares
RSUs  
Number of Units  
Outstanding at beginning of the period (in shares) 691,373
Granted (in shares) 345,230
Vested (in shares) (68,189)
Forfeited (in shares) (5,617)
Outstanding at end of the period (in shares) 962,797
Weighted - Average Fair Value  
Outstanding at beginning of the period (in dollars per share) | $ / shares $ 33.66
Granted (in dollars per share) | $ / shares 43.96
Vested (in dollars per share) | $ / shares 32.72
Forfeited (in dollars per share) | $ / shares 31.26
Outstanding at end of the period (in dollars per share) | $ / shares $ 37.43
Undelivered (in shares) 41,173
PSUs  
Number of Units  
Outstanding at beginning of the period (in shares) 367,067
Granted (in shares) 167,587
Vested (in shares) 0
Forfeited (in shares) 0
Outstanding at end of the period (in shares) 534,654
Weighted - Average Fair Value  
Outstanding at beginning of the period (in dollars per share) | $ / shares $ 32.84
Granted (in dollars per share) | $ / shares 43.96
Vested (in dollars per share) | $ / shares 0
Forfeited (in dollars per share) | $ / shares 0
Outstanding at end of the period (in dollars per share) | $ / shares $ 36.32
v3.22.1
Equity Incentive Plans - Summary of Shares of Common Stock Issued (Details) - 2015 Omnibus Incentive Plan - shares
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
RSUs    
Class of Stock [Line Items]    
Cumulative undelivered shares of common stock (in shares) 41,173  
Common Stock | RSUs    
Class of Stock [Line Items]    
Shares of common stock issued (in shares) 492,580 270,779
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations (in shares) (159,851) (89,938)
Net shares of common stock issued (in shares) 332,729 180,841
Cumulative undelivered shares of common stock (in shares) 414,866 395,670
Common Stock | PSUs    
Class of Stock [Line Items]    
Shares of common stock issued (in shares) 188,527 0
Shares of common stock withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations (in shares) (87,215) 0
Net shares of common stock issued (in shares) 101,312 0
Cumulative undelivered shares of common stock (in shares) 191,242 0
v3.22.1
Equity Incentive Plans - Compensation Expense Recorded in the Consolidated Statement of Operations (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Compensation expense $ 5,353 $ 5,533
RSUs    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Compensation expense 2,770 2,359
PSUs    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Compensation expense $ 2,419 $ 3,010
v3.22.1
Equity Incentive Plans - Allocation of Compensation Expense (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total compensation expense before income tax $ 5,353 $ 5,533
Income tax benefit 1,176 1,267
Total compensation expense, net of income tax 4,177 4,266
Cost of goods sold    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total compensation expense before income tax 300 (7)
Selling, general and administrative    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total compensation expense before income tax 4,698 5,381
Research and development    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total compensation expense before income tax $ 355 $ 159
v3.22.1
Accumulated Other Comprehensive Loss, Net of Tax (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2022
USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning balance $ 1,080,267
Other comprehensive (loss) income before reclassifications (3,449)
Amounts reclassified from accumulated other comprehensive loss, net of tax (537)
Tax expense (959)
Ending balance 1,108,696
Foreign Currency Translation  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning balance (66,915)
Other comprehensive (loss) income before reclassifications (7,570)
Amounts reclassified from accumulated other comprehensive loss, net of tax 0
Tax expense 0
Ending balance (74,485)
Foreign Exchange Derivative Instruments | Foreign Exchange Derivative Instruments  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning balance 5,167
Other comprehensive (loss) income before reclassifications 3,076
Amounts reclassified from accumulated other comprehensive loss, net of tax (1,355)
Tax expense (516)
Ending balance 6,372
Pension and Other Postretirement  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning balance (37,834)
Other comprehensive (loss) income before reclassifications 1,045
Amounts reclassified from accumulated other comprehensive loss, net of tax 818
Tax expense (443)
Ending balance (36,414)
Accumulated Other Comprehensive Loss, Net of Tax  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning balance (99,582)
Ending balance $ (104,527)
v3.22.1
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
Mar. 31, 2022
Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Net income attributable to Acushnet Holdings Corp. $ 81,045 $ 84,958
Weighted average number of common shares:    
Basic (in shares) 73,513,109 74,778,189
Diluted (in shares) 73,922,728 75,255,312
Net income per common share attributable to Acushnet Holdings Corp.:    
Basic (in dollars per share) $ 1.10 $ 1.14
Diluted (in dollars per share) $ 1.10 $ 1.13
RSUs    
Weighted average number of common shares:    
Incremental shares (in shares) 325,550 477,123
PSUs    
Weighted average number of common shares:    
Incremental shares (in shares) 84,069 0
v3.22.1
Net Income per Common Share - Calculation of Diluted Weighted Average Common Shares Outstanding (Details) - shares
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
RSUs    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Securities excluded from calculation of diluted weighted-average common shares outstanding as their impact was anti-dilutive (in shares) 66,405 291,484
v3.22.1
Segment Information - Reconciliation (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2022
USD ($)
segment
Mar. 31, 2021
USD ($)
Segment Reporting [Abstract]    
Number of reportable segments | segment 4  
Segment Reporting Information [Line Items]    
Net sales $ 606,087 $ 580,885
Segment operating income 105,369 120,069
Reconciling items:    
Interest expense, net (1,277) (3,616)
Income before income taxes 102,766 114,461
Operating segments    
Segment Reporting Information [Line Items]    
Net sales 606,087 580,885
Segment operating income 106,537 120,432
Reconciling Items    
Reconciling items:    
Interest expense, net (1,277) (3,616)
Non-service cost component of net periodic benefit cost (1,265) (2,291)
Other (1,229) (64)
Titleist golf balls | Operating segments    
Segment Reporting Information [Line Items]    
Net sales 163,838 173,637
Segment operating income 33,373 34,317
Titleist golf clubs | Operating segments    
Segment Reporting Information [Line Items]    
Net sales 160,815 155,827
Segment operating income 32,228 41,799
Titleist golf gear | Operating segments    
Segment Reporting Information [Line Items]    
Net sales 44,146 53,120
Segment operating income 2,194 9,728
FootJoy golf wear | Operating segments    
Segment Reporting Information [Line Items]    
Net sales 197,553 159,434
Segment operating income 31,315 28,117
Other | Operating segments    
Segment Reporting Information [Line Items]    
Net sales 39,735 38,867
Segment operating income $ 7,427 $ 6,471
v3.22.1
Segment Information - Geographical Areas (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total net sales $ 606,087 $ 580,885
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total net sales 295,126 308,636
EMEA    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total net sales 112,357 80,575
Japan    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total net sales 45,795 56,377
Korea    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total net sales 85,717 79,097
Rest of world    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total net sales $ 67,092 $ 56,200
v3.22.1
Commitments and Contingencies - Purchase Commitments (Details)
$ in Thousands
Mar. 31, 2022
USD ($)
Payments Due by Period  
Remainder of 2022 $ 286,896
2023 30,476
2024 12,415
2025 7,485
2026 2,424
Thereafter $ 34,791