EX-10.17

Exhibit 10.17

EXECUTION VERSION

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of December 22, 2017, by and among Acushnet Company, a Delaware corporation (the “Employer”), Acushnet Holdings Corp. (the “Company” and, together with its direct and indirect subsidiaries, “Acushnet”) and David E. Maher (the “Executive”).

W I T N E S S E T H

WHEREAS, the Company desires that Executive serve as its President and Chief Effective Officer; and

WHEREAS, Executive desires to serve as President and Chief Executive Officer of the Company, on the terms and subject to the conditions more fully set forth in this Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained, the Company and the Executive hereby agree as follows:

1. Employment Term.  Executive shall be employed by the Employer on the terms and conditions set forth in this Agreement for a period commencing on January 1, 2018 (the “Effective Date”) and continuing for a period of three (3) years (the “Initial Term”) and then automatically renewing for additional periods of one (1) year (the “Renewal Terms”), unless either party provides written notice of non-renewal at least ninety days prior to the end of such Initial Term or Renewal Term to the other party or until terminated pursuant to Section 5 of this Agreement (Executive’s actual period of employment with the Company, the “Employment Term”).  For the avoidance of doubt, if Executive’s employment with Acushnet terminates for any reason prior to the Effective Date, this Agreement shall be void ab initio and Executive shall have no rights or entitlements hereunder.

2. Position and Duties.

(a) During the Employment Term, Executive shall be employed by the Employer and serve as President and Chief Executive Officer of the Company.  Executive shall report directly to the Company’s board of directors (the “Board”), and shall have such duties, authorities and responsibilities commensurate with such title and as the Board may designate from time to time.

(b) During the Employment Term, Executive will devote Executive’s full working time, attention, knowledge and skill faithfully and to the best of his ability, to the duties and responsibilities so assigned by the Company in furtherance of the business affairs and activities of Acushnet, and will not render commercial or professional services to any person or entity or otherwise engage in any other business, profession or occupation, for compensation or otherwise, without the prior written consent of the Board;  provided that nothing herein shall preclude Executive from (i) managing his personal and/or family investments and/or (ii) subject to prior approval of the Board, which shall be granted in the Board’s sole discretion, engaging in

charitable and civic activities, including accepting appointment to serve on any board of directors or trustees of any charitable organization; provided,  however, that any such activities do not conflict or interfere with the performance of Executive’s duties hereunder or violate Section 6 of this Agreement.

3. Compensation.

(a) Base Salary.  During the Employment Term, Executive shall receive a base salary at the annual rate of $750,000, payable in regular installments in accordance with the Employer’s regular payment practices (prorated for any partial years). Executive’s Base Salary shall be reviewed on an annual basis by the Compensation Committee of the Board (the “Compensation Committee”) and may be increased, from time to time.  Executive’s annual base salary, as in effect from time to time, is hereinafter referred to as the “Base Salary.”

(b) Annual Bonus.  During the Employment Term, Executive shall be eligible to participate in the Company’s annual bonus plan, subject to the terms and conditions thereof (the “Annual Bonus”).  Executive’s target annual bonus will equal 100% of the Base Salary (the “Target Bonus”).  The actual amount of the Annual Bonus, if any, will be determined by the Compensation Committee, in its sole discretion, based on criteria established for Executive by the Compensation Committee.  Executive’s Annual Bonus shall generally only be paid if Executive remains continuously employed with the Employer through the applicable payment date (except as set forth in Section 5 of this Agreement).  The Annual Bonus, if any, shall be paid to Executive no later than two and one-half (2.5) months after the end of the applicable fiscal year.

(c) Long-Term Incentives. Subject to the approval of the Compensation Committee and continued employment with the Employer as of the Effective Date, Executive shall be granted an award of Restricted Stock Units (“RSUs”) of Acushnet with a grant date fair value of $3,000,000, subject to the terms and conditions of the Acushnet Holdings Corp. 2015 Omnibus Incentive Plan (the “Plan”) and the applicable award agreement, which shall vest as to one-third (1/3) of such grant on each of the first three anniversaries of the Effective Date, subject to the terms and conditions set forth in the Plan and the applicable award agreement.

(d) Stock Ownership Requirement. During the Employment Term, Executive shall be subject to Acushnet’s stock ownership policy, as may be in effect from time to time.

4. Employee Benefits/Vacation.

(a) Employee Benefits.  During the Employment Term, in addition to the compensation and benefits set forth in Section 3, Executive shall be eligible to participate in the Acushnet employee benefit plans as in effect from time to time (such other employee benefit plans, collectively “Employee Benefits”), on the same basis as those benefits are generally made available to other executive officers of the Company. For the avoidance of doubt, nothing in this Section 4(a) shall be construed to terminate Executive’s participation in any Employee Benefits in which Executive participates as of the Effective Date, other than the Acushnet Executive Severance Plan. If Executive continues to be employed by the Company following the

termination of this Agreement, then Executive shall be entitled to participate in the severance plan generally applicable to the Company’s senior management.

(b) Business Expenses.  During the Employment Term, reasonable business expenses incurred by Executive in the performance of Executive’s duties hereunder shall be reimbursed by the Employer in accordance with Employer policies; provided that claims for such reimbursement (accompanied by appropriate supporting documentation) are submitted to the Employer within 90 days following the date such expenses are incurred.

(c) Vacation.  During the Employment Term, Executive shall be entitled to paid vacation in accordance the Acushnet vacation policy.

5. Termination of Employment.

(a) Termination.  The Employment Term and Executive’s employment hereunder may be terminated by the Employer and the Executive at any time and for any reason; provided that Executive will be required to give the Employer at least ninety (90) days advance written notice of any termination of Executive’s employment by Executive without Good Reason (the “Notice Period”); provided,  further, that in the event of termination of employment by Executive without Good Reason, the Employer may, in its sole and absolute discretion, by written notice accelerate such date of termination without changing the characterization of such termination as a termination by Executive without Good Reason.  The provisions of this Section 5 shall exclusively govern Executive’s rights upon termination of employment with the Employer and its affiliates and shall replace and supersede any other severance benefits payable upon a Qualifying Termination, including any such amounts payable under any Other Severance Arrangements.

(b) Payments on Qualifying Termination; Death/Disability. 

(i) Qualifying Termination Not in Connection with a Change in Control.  If the Executive undergoes a Qualifying Termination other than within twelve (12) months following a Change in Control, in addition to any Accrued Obligations and subject to the Executive’s (i) execution, delivery to the Company, and non-revocation of the release agreement substantially in the form attached as Exhibit A (provided that the parties shall work together in good faith to update such release agreement at the time of a Qualifying Termination or termination due to death or Disability to reflect any applicable changes in law or otherwise agreed modifications) (the “Release Agreement”), as contemplated in Section 5(e) below and (ii) continued compliance with any written policies of Acushnet in effect as of the termination date or provided to Executive following the termination date and the provisions set forth in Section 6 of this Agreement (and any similar provision applicable to Executive under a written agreement between Executive and the Company or its affiliates from time to time), the Executive shall receive an amount equal to the sum of (w) one and one-half times (1.5X) the Base Salary, (x) the Target Bonus, (y) any earned but unpaid Annual Bonus for the prior year, and (z) a pro-rata Target Bonus based on actual service time during the calendar year in which such Qualifying Termination occurs, such amount to be paid in one cash lump sum as soon as practicable after such Qualifying Termination and, in no event, later than 60 days

after the date of such Qualifying Termination.  Following Executive’s termination of employment due to a Qualifying Termination other than within twelve (12) months following a Change in Control, except as set forth in this Section 5(b)(i), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

(ii) Qualifying Termination in Connection with a Change in Control.  If the Executive undergoes a Qualifying Termination within twelve (12) months following a Change in Control, in addition to any Accrued Obligations and subject to the Executive’s (i) execution, delivery to the Company, and non-revocation of the Release Agreement, as contemplated by Section 5(e) below and (ii) continued compliance with any written policies of Acushnet in effect as of the termination date or provided to Executive following the termination date and the provisions set forth in Section 6 of this Agreement (and any similar provision applicable to Executive under a written agreement between Executive and the Company or its affiliates from time to time), the Executive shall receive, an amount equal to the sum of (w) two times (2X) the Base Salary, (x) two times (2X) the Target Bonus, (y) any earned but unpaid Annual Bonus for the prior year, and (z) a pro-rata Target Bonus based on actual service time during the calendar year in which such Qualifying Termination occurs, such amount to be paid in one cash lump sum as soon as practicable after such Qualifying Termination and, in no event, later than 60 days after the date of such Qualifying Termination.  In addition, any outstanding grants of equity interests in the Company which have not yet vested will vest in full as of such Qualifying Termination.  Following Executive’s termination of employment due to a Qualifying Termination in connection with a Change in Control, except as set forth in this Section 5(b)(ii), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

(iii) Death/Disability.  If the Executive’s employment is terminated by the Company as a result of the Executive’s death or Disability (as defined in the Plan or any successor equity incentive plan in effect at the time of a termination), in addition to any Accrued Obligations and subject to the Executive’s (or Executive’s estate’s, as applicable) (i) execution, delivery to the Company, and non-revocation of the Release Agreement and (ii) continued compliance with any written policies of Acushnet in effect as of the termination date or provided to Executive following the termination date and the provisions set forth in Section 6 of this Agreement (and any similar provision applicable to Executive under a written agreement between Executive and the Company or its affiliates from time to time), the Executive shall receive an amount equal to the sum of (x) any earned but unpaid Annual Bonus for the prior year and (y) a pro-rata Target Bonus based on actual service time during the calendar year in which such termination occurs, such amount to be paid in one cash lump sum as soon as practicable after such termination and, in no event, later than 60 days after the date of such termination.

(c) Other Termination Events.  If the Executive’s employment terminates for any reason other than pursuant to a Qualifying Termination, the Executive shall not be entitled to the payment of any severance or other benefits pursuant to this Agreement or Other Severance Arrangements other than the Accrued Obligations.

(d) Definitions. 

(i) “Accrued Obligations” means (i) all accrued but unpaid Base Salary through the date of a termination of employment, (ii) any unpaid or unreimbursed expenses incurred in accordance with the policies of Acushnet, and (iii) any benefits provided under the employee benefit plans and programs of Acushnet (excluding any Other Severance Arrangements) in connection with a termination of employment, in each case, in accordance with the terms contained therein, including, without limitation, payment of accrued but unused vacation days through the date of a termination of employment in accordance with the Acushnet vacation policy.

(ii) “Cause” means the Executive’s (i) willful neglect in the performance of the Executive’s duties for Acushnet or willful failure or refusal to perform such duties, (ii) willful misconduct in connection with the Executive’s service as the Company’s President and Chief Executive Officer, (iii) conviction of, or plea of guilty or no contest to, (x) any felony or (y) a misdemeanor involving moral turpitude, (iv) theft, misappropriation or embezzlement of property of Acushnet or act of fraud, (v) material breach of Executive’s fiduciary duties to, or any material written policies of, Acushnet (including, without limitation, Acushnet’s code of ethics, sexual harassment policy, insider trading policy, and policies regarding protection of confidential information and misappropriation of intellectual property) or (vi) material breach of this Agreement; provided, thatto the extent any of the events described in clauses (i), (ii), (v) or (vi) above are capable of being cured, such event shall constitute Cause only if the Executive fails to cure such event within 15 days after receipt from the Employer of written notice of the event which constitutes Cause.

(iii)  “Change in Control” shall have the meaning set forth in the Plan or any successor equity incentive plan in effect at the time of a Change in Control.

(iv)  “Code” means the Internal Revenue Code of 1986, as amended, and the rules, regulations or other interpretative guidance promulgated thereunder, as well as any successor laws in replacement thereof.

(v)  “Good Reason” means, without the Executive’s consent, (i) a material diminution in the Executive’s authority, reporting relationships or duties, (ii) a material reduction in Base Salary or Target Bonus, or (iii) the relocation of the principal place of the Executive’s employment that would make it unreasonably difficult for Executive to maintain the principal residence that Executive had immediately prior to such requirement;  provided, thatany of the events described in clauses (i) through (iii) above shall constitute Good Reason only if the Employer fails to cure such event within 30 days after receipt from the Executive of written notice of the event which constitutes Good Reason; and provided further, that the Executive shall cease to have a right to terminate due to any Good Reason event on the 90th day following the later of the occurrence of the event or the Executive’s knowledge thereof, unless the Executive has given the Employer written notice thereof prior to such date.

(vi)  “Other Severance Arrangements” means any plans, policies, guidelines, arrangements, agreements, letters and/or other communication, whether formal or informal, written or oral sponsored by any the Company or any of its affiliates and/or entered into by any representative of the Company or any of its affiliates that might otherwise provide severance benefits upon a Qualifying Termination including, without limitation, the Acushnet Executive Severance Plan.

(vii) “Qualifying Termination” means the Executive’s termination of employment by the Company without Cause (including as a result of the Company’s non-renewal of the Employment Term) or by the Executive with Good Reason.

(e) Release Agreement.  Notwithstanding any provision herein to the contrary, the payment of any amount pursuant to Section 5(b) above (other than the Accrued Obligations) shall be conditioned upon the Executive’s execution, delivery to the Employer, and non-revocation of the Release Agreement (and the expiration of any revocation period contained in such Release Agreement) within 60 days following the date of a Qualifying Termination.  If the Executive fails to execute the Release Agreement in such a timely manner so as to permit any revocation period to expire prior to the end of such 60 day period, or timely revokes his acceptance of such release following its execution, the Executive shall not be entitled to payment of any severance or other benefits under this Agreement. Further, to the extent that any of the payments hereunder are determined to constitute “nonqualified deferred compensation” for purposes of Section 409A of the Code, any payment of any amount or provision of any benefit otherwise scheduled to occur prior to the 60th day following the date of such Qualifying Termination, but for the condition on executing the Release Agreement as set forth herein, shall not be made until the first regularly scheduled payroll date following such 60th day, after which any remaining payments shall thereafter be provided to the Executive according to the applicable schedule set forth herein.

(f) Board/Committee and Officer Resignations.  Upon termination of Executive’s employment for any reason, Executive agrees to resign, as of the date of such termination and to the extent applicable, (i) from the board of directors (and any committees thereof) of the Company and any of its subsidiaries or affiliates on which Executive is a member and (ii) as an officer of the Company and any of its subsidiaries or affiliates.  The Executive agrees to sign all necessary documentation and to take any and all other necessary measures to effectuate any such resignation requested by the Company. 

6. Covenants and Agreements.In addition to any obligations the Executive may have with respect to any covenant to or written policy of Acushnet in effect on the date of the Executive’s termination of employment, the Executive agrees to the following:    

(a) Confidential Information.  The Executive acknowledges that, during the course of the Executive’s employment, the Executive has had and will have access to information about Acushnet and that the Executive’s employment with the Employer and service as the Company’s President and Chief Executive Officer has brought and shall bring the Executive into close contact with confidential and proprietary information of Acushnet.  In recognition of the foregoing, the Executive agrees, at all times during the term of the Executive’s employment with the Employer and thereafter, to hold in the strictest confidence, and not to use,

except for the benefit of Acushnet, or to disclose to any person, firm, corporation or other entity, without written authorization of the Company, any Confidential Information that the Executive obtains or creates.  The Executive further agree not to make copies of such Confidential Information except as authorized by the Company.  For purposes of this Agreement, “Confidential Information” means confidential or proprietary information that Acushnet has or will develop, acquire, create, compile, discover, or own, that has value in or to the business of Acushnet and that is not publicly known.  Confidential Information includes, but is not limited to, any and all non-public information that relates to the actual or anticipated business and/or products, research, or development of Acushnet, or to Acushnet’s technical data, trade secrets, or know-how, including, but not limited to, research, product plans, or other information regarding Acushnet’s products or services and markets, customer lists, forecasts, customers, business opportunities, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, and other confidential business information.  Confidential Information may be in any medium or form, including without limitation, physical documents, computer files or discs, videotapes, audiotapes or oral communications.  Notwithstanding the foregoing, the Executive may disclose Confidential Information to the extent such disclosure is required by law or regulation or by any court, regulatory authority or self-regulatory organization having jurisdiction over the Executive; provided, that prior to making any disclosure required by law, regulation, court, regulatory authority or self-regulatory organization, the Executive will notify the Company of such disclosure. The term Confidential Information shall not include information which (i) is in the public domain other than as a result of a disclosure by the Executive or the Executive’s representatives or (ii) is lawfully disclosed to the Executive by a third-party without restriction on disclosure.

Nothing in this  Agreement or the Release Agreement shall prohibit or impede the Executive from communicating, cooperating or filing a  complaint with any U.S. federal, state or local governmental or law enforcement branch, agency or entity (collectively, a “Governmental Entity”) with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise making disclosures to any Governmental Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation, provided that in each case such  communications and disclosures are  consistent with applicable law. The Executive understands and acknowledges that an individual shall not be held criminally or civilly liable under any  federal or state trade secret law for the disclosure of a trade secret that is made (x) in  confidence to a federal, state, or local  government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (y) in a complaint or other document filed in a  lawsuit or other proceeding, if such  filing is made under seal.  The Executive understands and acknowledges further that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. For purposes of this Agreement and the Release Agreement, each of the foregoing communications or disclosures is a “Protected Disclosure.” The Executive does not need to  give prior notice to (or get  authorization from) the Company regarding any Protected Disclosure. Except as otherwise provided in this paragraph or under applicable law, notwithstanding the foregoing, under no circumstance will the Executive be authorized to disclose any information covered by attorney-client privilege or attorney work product of Acushnet, or 

Acushnet’s trade secrets, without prior written consent of the Company’s Chief Legal Officer or other officer designated by the Company.

(b) Noncompetition, Nonsolicitation and Nondisparagement.

(i) Noncompetition.  The Executive acknowledges that in the course of his employment he will become familiar, and during his employment with the Employer prior to the date of this Agreement he has become familiar, with Confidential Information that would unfairly and inappropriately assist in competition against Acushnet, that his services are of special, unique and extraordinary value to Acushnet and that the Executive’s performance of such services to a competing business will result in irreparable harm to Acushnet.  Therefore, the Executive agrees that, during his employment by the Employer and for twenty-four (24) months following the Executive’s termination of employment for any reason (the “Noncompete Period”), he shall not directly or indirectly own, manage, control, participate in, consult with, assist, render services for, or in any manner engage in any business competing with, or otherwise substantially similar to, any of the existing or future businesses of Acushnet as such businesses exist or are actively in process on the date of the Executive’s termination of employment (or which existed during the two year period prior to the date of termination) in any country in which Acushnet conducts business.  For purposes of this Section 6(b)(i), “actively in process” means an activity that Acushnet has been planning to engage in prior to the Executive’s termination of employment.  The restrictions described in this Section 6(b)(i) shall not apply to the Executive’s purchase of stock not to exceed 5% of the outstanding shares of capital stock or any corporation whose securities are listed on any national securities exchange.

(ii) Nonsolicitation.  During the Noncompete Period, the Executive shall not directly or indirectly through another entity (x) induce or attempt to induce any employee of Acushnet to leave the employ of Acushnet, or in any way interfere with the relationship between Acushnet and any employee thereof, (y) offer employment to, hire or retain any person who was an employee of Acushnet at any time during the six-month period prior to the Executive’s termination of employment, or (z) induce or attempt to induce any customer, supplier, licensee or other business relation of Acushnet to cease doing business with Acushnet, or take or attempt to take any action that adversely impacts the relationship between Acushnet and any customer, supplier, licensee or business relation of Acushnet.

(iii) Nondisparagement.  During any period of employment and the Noncompete Period, the Executive agrees not to make disparaging or defamatory comments in any respect regarding Acushnet, its products or services, or otherwise disparage Acushnet or its officers, directors, or employees, other than in the good faith performance of the Executive’s duties to Acushnet during the Executive’s employment with the Employer.  Following termination of Executive’s employment, the Board shall instruct the Company’s officers not to make disparaging or defamatory comments regarding any aspect of Executive’s relationship with Acushnet or the events that precipitated Executive’s termination of employment.  The foregoing shall not be violated by truthful statements in response to legal process, required governmental testimony or

filings, or administrative or arbitral proceedings (including, without limitation, depositions in connection with such proceedings). 

(c) Return of Acushnet Property.  At the time of termination of the Executive’s employment for any reason, the Executive will deliver to the Company (and will not keep in the Executive’s possession, recreate, or deliver to anyone else) any and all Confidential Information and all other documents, materials, information, and property developed by the Executive pursuant to the Executive’s employment or otherwise belonging to Acushnet. 

(d) Cooperation.  The Executive agrees that, following any termination of the Executive’s employment, the Executive will continue to provide reasonable cooperation to Acushnet and its counsel in connection with any investigation, administrative proceeding, or litigation relating to any matter that occurred during the Executive’s employment in which the Executive was involved or of which the Executive has knowledge.  As a condition of such cooperation, the Employer shall reimburse the Executive for reasonable out-of-pocket expenses incurred at the request of Acushnet with respect to the Executive’s compliance with this paragraph.  The Executive also agrees that, in the event  the Executive is subpoenaed by any person or entity (including, but not limited to, any government agency) to give testimony or provide documents (in a deposition, court proceeding, or otherwise), that in any way relates to the Executive’s service with Acushnet, the Executive will give prompt notice of such request to the Company and will make no disclosure until the Company or its affiliate has had a reasonable opportunity to contest the right of the requesting person or entity to such disclosure. 

(e) Reasonableness of Restrictions.  The Executive acknowledges and recognizes the highly competitive nature of Acushnet’s business, that access to Confidential Information renders the Executive special and unique within Acushnet’s industry, and that the Executive has developed and will have the opportunity to develop substantial relationships with existing and prospective clients, accounts, customers, employees, consultants, contractors, investors, and strategic partners of Acushnet during the course of and as a result of the Executive’s employment.  In light of the foregoing, the Executive recognizes and acknowledges that the restrictions and limitations set forth in this Section 6 are reasonable and valid in geographical and temporal scope and in all other respects and are essential to protect the value of the business and assets of Acushnet.  The Executive further acknowledges that the restrictions and limitations set forth in this Section 6 will not materially interfere with the Executive’s ability to earn a living following the termination of the Executive’s employment and that the Executive’s ability to earn a livelihood without violating such restrictions is a material condition to the Executive’s employment with the Employer.

(f) Injunctive Relief.  The Executive expressly acknowledges that any breach or threatened breach of any of the terms and/or conditions set forth in this Section 6 may result in substantial, continuing, and irreparable injury to Acushnet.  Therefore, the Executive hereby agrees that, in addition to any other remedy that may be available to Acushnet, any of the Company or its affiliates shall be entitled to seek injunctive relief, specific performance, monetary damages (e.g., disgorgement of profits or recoupment or forfeiture of any payments or benefits provided under Section 5 of this Agreement) or other equitable relief by a court of appropriate jurisdiction in the event of any breach or threatened breach of the terms of this Section 6 without the necessity of proving irreparable harm or injury as a result of such breach or

threatened breach. Notwithstanding any other provision to the contrary, the Executive acknowledges and agrees that the Noncompete Period shall be tolled during any period of violation of any of the covenants in Section 6 hereof and during any other period required for litigation during which the Company or any of its affiliates seeks to enforce such covenants against the Executive if it is ultimately determined that the Executive was in breach of such covenants.

(g) Enforcement.  If, at the time of enforcement of this Section 6, a court holds that the restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum duration, scope and geographical area reasonable under such circumstances shall be substituted for the stated period, scope and area and that the court shall be allowed to reduce the restrictions contained herein to cover the maximum duration, scope and area permitted by law.

7. Taxes. 

The Company may withhold from any payments made under this Agreement all applicable taxes, including but not limited to income, employment, and social insurance taxes, as shall be required by law. 

8. Set Off; Mitigation. 

The Company’s obligation to pay the Executive the amounts provided and to make the arrangements provided hereunder shall not be subject to set-off, counterclaim, or recoupment of amounts owed by the Executive to the Company or its affiliates.  The Executive shall not be required to mitigate the amount of any payment provided pursuant to this Agreement by seeking other employment or otherwise, and the amount of any payment provided for pursuant to this Agreement shall not be reduced by any compensation earned as a result of the Executive’s other employment or otherwise.

9. Limitation of Certain Payments.

In the event that any payments and/or benefits due to the Executive under this Agreement and/or any other arrangements are determined by us to constitute “excess parachute payments” as defined under Section 280G of the Code, any such payments or benefits shall be reduced by the minimum amount necessary, subject to the last sentence of this paragraph, such that the present value of such parachute payments is below 300% of the Exeuctive’s “base amount” (as defined under Section 280G of the Code).  Notwithstanding the foregoing, no payments or benefits shall be reduced under this Section 9 unless (a) the net amount of such payments and benefits, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced payments and benefits) is greater than or equal to (b) the net amount of such payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such payments and benefits and the amount of excise tax imposed under Section 4999 of the Code as to which the Executive would be subject in respect of such unreduced payments and benefits and after taking into account the phase out of itemized deductions and personal exemptions attributable to

such unreduced payments).  For purposes hereof, (i) the order in which any amounts are deemed to be reduced, if applciable, is (A) cash payments; (B) other non-cash forms of benefits; and (C) equity-based payments and acceleration of vesting, and (ii) within any such category of payments and benefits (that is, (i)(A), (i)(B) or (i)(C) above), (x) a reduction shall occur first with respect to amounts that are not “deferred compensation” within the meaning of Section 409A of the Code and then with respect to amounts that are, and (y) to the extent that any such amounts are to be made over time (e.g., in installments, etc.), then the amounts shall be reduced in reverse chronological order.

10. Additional Section 409A Provisions.    

Notwithstanding any provision in this Agreement to the contrary:

(a) If the Executive is a “specified employee” (as determined in accordance with Section 409A(a)(2)(B)(i) of the Code and Treasury Regulation Section 1.409A-1(i)) at the time of a Qualifying Termination, any payments that constitute nonqualified deferred compensation shall be delayed to the extent necessary to avoid a prohibited distribution under Section 409A(2)(B)(i) of the Code, and such amount shall be distributed to the Executive on the earlier of (i) the first business day following the expiration of the six-month period measured from the date of termination, (ii) the date of the Executive’s death, or (iii) such earlier date as is permitted under Section 409A and the Treasury Regulations thereunder.

(b) Each payment in a series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A of the Code.

(c) To the extent that any right to reimbursement of expenses or payment of any benefit in-kind under this Agreement constitutes nonqualified deferred compensation (within the meaning of Section 409A of the Code), (i) any such expense reimbursement shall be made by the Company no later than the last day of the taxable year following the taxable year in which such expense was incurred by the Executive, (ii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (iii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year; provided,that the foregoing clause shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect.

(d) While the payments and benefits provided hereunder are intended to be structured in a manner to avoid the implication of any penalty taxes under Section 409A of the Code, in no event whatsoever shall the Company or any of its affiliates be liable for any additional tax, interest, or penalties that may be imposed on the Executive as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A of the Code).

11. Waiver and Amendments. 

Any waiver, alteration, amendment, or modification of any of the terms of this Agreement shall be valid only if made in writing and signed by each of the parties hereto.  No waiver by either of the parties hereto of their rights hereunder shall be deemed to constitute a waiver with respect to any subsequent occurrences or transactions hereunder unless such waiver specifically states that it is to be construed as a continuing waiver.

12. Severability. 

If any covenants or such other provisions of this Agreement are found to be invalid or unenforceable by a final determination of a court of competent jurisdiction, (a) the remaining terms and provisions hereof shall be unimpaired, and (b) the invalid or unenforceable term or provision hereof shall be deemed replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision hereof.

13. Governing Law; Waiver of Jury Trial; Venue.

THIS AGREEMENT (INCLUDING THE RELEASE AGREEMENT TO THE EXTENT EXECUTED) IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW THEREUNDER.  EACH PARTY TO THIS AGREEMENT (INCLUDING THE RELEASE AGREEMENT TO THE EXTENT EXECUTED) ALSO HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS AGREEMENT.  ALL CLAIMS AND DISPUTES CONCERNING THIS AGREEMENT (INCLUDING THE RELEASE AGREEMENT TO THE EXTENT EXECUTED) MUST BE FILED AND ADJUDICATED IN STATE OR FEDERAL COURTS LOCATED IN THE COMMONWEALTH OF MASSACHUSETTS, AND SUCH COURTS SHALL BE THE SOLE AND EXCLUSIVE VENUE FOR THE ADJUDICATION OF ALL DISPUTES AND CLAIMS.

14. Assignability.

This Agreement is personal to the parties and may not be assigned by either of the parties without the prior written consent of the other party hereto.

15. Counterparts.

This Agreement may be executed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

16. Notices.

(a) Place of Delivery.  Every notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom or

which it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided; provided, that unless and until some other address be so designated, all notices and communications by the Executive to the Company or the Employer shall be mailed or delivered to the Company at its principal executive office, and all notices and communications by the Company or the Employer to the Executive may be given to the Executive personally or may be mailed to the Executive at the Executive’s last known address, as reflected in the Company’s records.

(b) Date of Delivery.  Any notice so addressed shall be deemed to be given (i) if delivered by hand, on the date of such delivery, (ii) if mailed by courier or by overnight mail, on the first business day following the date of such mailing, and (iii) if mailed by registered or certified mail, on the third business day after the date of such mailing.

17. Section Headings.

The headings of the sections and subsections of this Agreement are inserted for convenience only and shall not be deemed to constitute a part thereof or affect the meaning or interpretation of this Agreement or of any term or provision hereof.

18. Employment At-Will.  Employment with the Employer is “at-will,” meaning that either Executive or the Employer may terminate such employment at any time and for any reason, with or without Cause (subject to the terms of this Agreement).  The provisions of Sections 6 of this Agreement shall survive any termination of this Agreement or Executive’s termination of employment.

19. Successors; Binding Agreement.  This Agreement shall inure to the benefit of and be binding upon personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

20. No Conflicts.  Executive represents and warrants that there are no restrictions, agreements or understandings whatsoever to which he is a party that would prevent or make unlawful his execution of this Agreement, that would be inconsistent or in conflict with this Agreement or his obligations hereunder, or that would otherwise prevent, limit or impair his performance of services for Acushnet.

21. Entire Agreement.

This Agreement constitutes the entire understanding and agreement of the parties hereto regarding the employment of the Executive.  This Agreement supersedes all prior negotiations, discussions, correspondence, communications, understandings, and agreements between the parties relating to the subject matter of this Agreement.

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

ACUSHNET COMPANY

__/s/ Dennis D. Doherty________
By:  Dennis D. Doherty
Title:  EVP HR

ACUSHNET HOLDINGS CORP.

__/s/ Dennis D. Doherty________
By:  Dennis D. Doherty
Title:  EVP HR

EXECUTIVE

__/s/ David E. Maher_________
David E. Maher

EXHIBIT A

RELEASE OF CLAIMS

As used in this release agreement (the “Release of Claims”), the term “claims” will include all claims, covenants, warranties, promises, undertakings, actions, suits, causes of action, obligations, debts, accounts, attorneys’ fees, judgments, losses and liabilities, of whatsoever kind or nature, in law, equity or otherwise. Capitalized terms not otherwise defined herein shall have the meaning set forth in my employment agreement dated December 18, 2017,  entered into with Acushnet Holdings Corp. (the “Company”) and Acushnet Company (the “Employment Agreement”),  to which this Release of Claims is attached as an Exhibit.

For and in consideration of the consideration provided in Section 5(b) of the Employment Agreement (collectively, the “Consideration”) and other good and valuable consideration, I, for and on behalf of myself and my heirs, administrators, executors and assigns, effective the date hereof, do fully and forever release, remise and discharge the Company and its subsidiaries and affiliates (collectively, the “Company Group”), together with their respective current and former officers, directors, partners, members, shareholders, fiduciaries, counsel, employees and agents (collectively, and with the Company Group, the “Company Parties”) from any and all claims whatsoever up to the date hereof that I had, may have had, or now have against the Company Parties, whether known or unknown, for or by reason of any matter, cause, or thing whatsoever, including any claim arising out of or attributable to my employment or the termination of my employment with the Company Group, whether for tort, breach of express or implied contract, intentional infliction of emotional distress, wrongful termination, unjust dismissal, defamation, libel, or slander, or under any federal, state, or local law dealing with discrimination based on age, race, sex, national origin, handicap, religion, disability or sexual orientation.  The release of claims in this Release includes, but is not limited to, all claims arising under the Age Discrimination in Employment Act of 1967 (“ADEA”), Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Civil Rights Act of 1991, the Family and Medical Leave Act of 1993, the Employee Retirement Income Security Act of 1974, the Worker Adjustment and Retraining Notification Act of 1988 and the Equal Pay Act of 1963, each as may be amended from time to time, and all other federal, state, and local laws, the common law, and any purported restriction on an employer’s right to terminate the employment of employees.  I intend this Release of Claims to be a general release of any and all claims to the fullest extent permissible by law and for the provisions regarding the release of claims against the Company Parties to be construed as broadly as possible, and hereby incorporate in this release similar federal, state or other laws, all of which I also hereby expressly waive..

By executing this Release of Claims, I specifically release all claims relating to my service and its termination under ADEA, a United States federal statute that, among other things, prohibits discrimination on the basis of age in employment and employee benefit plans.

I acknowledge and agree that by virtue of the foregoing, I have waived any relief available to me (including without limitation, monetary damages, equitable relief and reinstatement) under any of the claims and/or causes of action waived in this Release of Claims.  Therefore I agree that I will not accept any award or settlement from the Company Group (including but not limited to any proceeding brought by any other person or by any government agency) with respect to any claim or right waived in this Release of Claims.

Notwithstanding the foregoing, nothing in this Release of Claims shall be a waiver of: (i) my rights with respect to the Consideration, (ii) my rights to vested benefits under any employee benefit plan of the Company Group, (iii) my right to make Protected Disclosures, as defined in Section 6(b) of the Employment Agreement, or to collect a whistleblower award from any Governmental Entity arising from or in connection with any Protected Disclosure; and (iv) any claims that cannot be waived by law including, without limitation, any claims filed with the Equal Employment Opportunity Commission, the U.S. Department of Labor, or claims under the ADEA that arise after the date of this Release of Claims.

I expressly acknowledge and agree that I:

· Am able to read the language, and understand the meaning and effect, of this Release of Claims;

· Have no physical or mental impairment of any kind that has interfered with my ability to read and understand the meaning of this Release of Claims or its terms, and that I am not acting under the influence of any medication, drug or chemical of any type in entering into this Release of Claims;

· Am specifically agreeing to the terms of the release contained in this Release of Claims because the Company has agreed to pay me the Consideration, which the Company has agreed to provide because of my agreement to accept it in full settlement of all possible claims I might have or ever had, and because of my execution of this Release of Claims;

· Acknowledge that but for my execution of this Release of Claims, I would not be entitled to the defined Consideration;

· Understand that, by entering into this Release of Claims, I do not waive rights or claims under ADEA that may arise after the date I execute this Release of Claims;

· Had or could have until [DATE] (the “Review Period”), in which to review and consider this Release of Claims, and that if I execute this Release of Claims prior to the expiration of the Review Period, I have voluntarily and knowingly waived the remainder of the Review Period;

· Was advised to consult with my attorney regarding the terms and effect of this Release of Claims; and

· Have signed this Release of Claims knowingly and voluntarily.

Notwithstanding anything contained herein to the contrary, this Release of Claims will not become effective or enforceable prior to the expiration of the period of seven (7) calendar days following the date of its execution by me (the “Revocation Period”), during which time I may revoke my acceptance of this Release of Claims by notifying the Company, in writing, delivered to the Company at its principal executive office, marked for the attention of its

Chief Human Resources Officer.  To be effective, such revocation must be received by the Company on or prior to the seventh (7th) calendar day following the execution of this Release of Claims.  Provided that the Release of Claims is executed and I do not revoke it during the Revocation Period, the eighth (8th) day following the date on which this Release of Claims is executed shall be its effective date (the “Release Effective Date”).  I acknowledge and agree that if I revoke this Release of Claims during the Revocation Period, this Release of Claims will be null and void and of no effect, and neither the Company nor any other member of the Company Group will have any obligations to pay me the Consideration.

The provisions of this Release of Claims shall be binding upon my heirs, executors, administrators, legal personal representatives, and assigns.  If any provision of this Release of Claims shall be held by any court of competent jurisdiction to be illegal, void, or unenforceable, such provision shall be of no force or effect. The illegality or unenforceability of such provision, however, shall have no effect upon and shall not impair the enforceability of any other provision of this Release of Claims.

EXCEPT WHERE PREEMPTED BY FEDERAL LAW, THIS RELEASE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH FEDERAL LAW AND THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS, APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAWS. 

____________________________
David E. Maher

Dated: _______________________

EX-10.18

Exhibit 10.18

ACUSHNET HOLDINGS CORP.
EMPLOYEE DEFERRAL PLAN

Section 1. Purpose.  The purpose of the Acushnet Holdings Corp. Employee Deferral Plan (the “Plan”) is to attract and retain the services of key employees for Acushnet Holdings Corp. (the “Company”) by providing them with opportunities to defer income taxes on certain compensation. 

Section 2. Definitions.  Unless otherwise defined in the Plan, capitalized terms used in the Plan shall have the meanings assigned to them in the Acushnet Holdings Corp. 2015 Omnibus Incentive Plan (the “Incentive Plan”).

Section 3. Eligibility.  Unless otherwise determined by the Compensation Committee, each employee of the Company or any of its Subsidiaries who meets all of the following requirements shall be entitled to participate in the Plan (each, an “Eligible Employee”):

(a) The employee is a member of a “select group of management or highly compensated employees” of the Company or any of its Subsidiaries within the meaning of Section 401(a)(1) of ERISA;

(b) The employee is a full-time salaried employee (including employees who are officers of the Company) on the active payroll of the Company or any of its Subsidiaries; and

(c) The employee has been selected by the Compensation Committee to participate in the Plan. 

Each such Eligible Employee who makes a deferral under the Plan is referred to herein as a “Participant.”

Section 4. Administration.  The Plan shall be administered by the Compensation Committee.  Subject to the terms of the Plan and applicable law, the Compensation Committee shall have full power and authority to: (i) designate Eligible Employees for participation; (ii) determine the terms and conditions of any deferral made under the Plan; (iii) interpret and administer the Plan and any instrument or agreement relating to, or deferral made under, the Plan; (iv) establish, amend, suspend or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and (v) make any other determination and take any other action that the Compensation Committee deems necessary or desirable for the administration of the Plan.  To the extent legally permitted, the Compensation Committee may, in its discretion, delegate to the General Counsel, the Chief Human Resources Officer or to one or more officers of the Company any or all authority and responsibility to act with respect to administrative matters with respect to the Plan.  The determination of the Compensation Committee on all matters within its authority relating to the Plan shall be final, conclusive and binding upon all parties, including the Company, its shareholders and the Participants.

Section 5. Deferrals.

(a) Deferral Elections.  Each Participant may elect to defer receipt of all or any portion of any shares of Common Stock issuable upon vesting of any Restricted Stock Unit (whether such Restricted Stock Unit is subject to time-based or performance-based vesting) granted to such Participant pursuant to the Company’s compensation program (a “Deferred Stock Unit”). 

(b) Election Forms.  A Participant’s deferral election shall be made in the form of a document (an “Election Form”) established for such purpose by the Compensation Committee that is executed by such Participant and filed with the Company.  The Election Form will require such Participant to specify:

(i) the portion of any shares of Common Stock issuable upon vesting of any Restricted Stock Unit that will be deferred; and

(ii) the time at which the deferred shares of Common Stock will be distributed to such Participant, which time may be (x) a specified date, (y) the Participant’s “separation from service” (as defined in Section 409A of the Code) or (z) the earlier of a specified date and such Participant’s separation from service.

Each Election Form will remain in effect until superseded or revoked pursuant to this Section 5.

(c) Timing of Elections.

(i) Subject to Section 5(c)(ii), an Election Form executed by a Participant shall apply to any Restricted Stock Unit that is granted to such Participant at any time following the end of the year in which such Election Form is executed.

(ii) An Election Form filed by a Participant within 30 days after such Participant becomes eligible to participate in the Plan may apply to any Restricted Stock Unit that relates to services performed following the date on which such Participant executes such Election Form.

(d) Subsequent Election Forms.  A Participant who has an Election Form on file with the Company may execute and file with the Company a subsequent Election Form at any time.  Such subsequent Election Form shall apply to any Restricted Stock Unit that is granted to such Participant following the end of the year in which such subsequent Election Form is executed.

(e) Revoking Election Forms.  A Participant may revoke an Election Form at any time by providing written notice to the Chief Human Resources Officer.  Such revocation shall apply to any Restricted Stock Unit that is granted to such Participant following the year in which such notice is provided.

(f) Redeferrals.  A Participant may elect to redefer the issuance of shares of Common Stock in respect of a Deferred Stock Unit to a time following the time specified on the applicable Election Form; provided that any such redeferral (i) will not take effect for at least 12 months after the date on which the redeferral election is made; (ii) must defer the distribution for at least five years from the date the original distribution would have otherwise been made; and (iii) must be made at least 12 months before the date the distribution would have otherwise been made.  Any redeferral election that does not satisfy the applicable foregoing requirements will be invalid, null, and void, and the payment schedule set forth in such previous Election Form shall control.  Such redeferral election shall be made in the form of a document established for such purpose by the Compensation Committee that is executed by such Participant and filed with the Chief Human Resources Officer.

(g) Vesting.  Each Deferred Stock Unit shall be fully vested and non-forfeitable at all times from the applicable vesting date of the underlying Restricted Stock Unit.  For the avoidance of doubt, no shares of Common Stock will be issued in respect of a Deferred Stock Unit to the extent the underlying Restricted Stock Unit is cancelled or forfeited, or otherwise does not vest.

Section 6. Timing and Form of Distribution.

(a) Subject to this Section 6, distribution with respect to a Participant’s Deferred Stock Units shall be made to such Participant in a single lump sum at the time specified on the applicable Election Form.

(b) The Compensation Committee, in its sole discretion, may accelerate the distribution of a Participant’s Deferred Stock Unit if such Participant experiences an unforeseeable emergency or hardship, provided that such distribution complies with Section 409A of the Code.

(c) Distribution with respect to a Participant’s Deferred Stock Units shall be made in a single lump sum upon a Change in Control or such Participant’s death.  A “Change in Control” shall have the meaning ascribed to such term in the Incentive Plan, from time to time.

Section 7. Amount of Distribution.

(a) Distribution in Shares.  Each Deferred Stock Unit shall be allocated to a separate bookkeeping account (a “Share Account”) established and maintained by the Plan Administrator to record the number of shares of Common Stock to which such Deferred Stock Unit relates.  The Share Account shall reflect the number of shares of Common Stock deferred and any Dividend Equivalent Rights with respect to Deferred Stock Units credited to the Share Account pursuant to the Incentive Plan and applicable award agreement.  On the distribution date applicable to a Participant’s Deferred Stock Unit, such Participant shall receive that number of shares of Common Stock equal to the number of shares credited to the applicable Share Account as of such distribution date.

(b) The number of shares of Common Stock reflected in a Share Account shall be subject to adjustment pursuant to Section 12 of the Incentive Plan.

Section 8. General Provisions Applicable to Deferrals.

(a) Except as may be permitted by the Compensation Committee, (i) no deferral and no right under such deferral shall be assignable, alienable, saleable or transferable by a Participant otherwise than by will or pursuant to Section 8(b) and (ii) during a Participant’s lifetime, each deferral, and each right under such deferral, shall be exercisable only by such Participant or, if permissible under applicable law, by such Participant’s guardian or legal representative.  The provisions of this Section 8(a) shall not apply to any deferral that has been distributed to a Participant.

(b) A Participant may make a written designation of beneficiary or beneficiaries to receive all or part of the distributions under this Plan in the event of death at such times prescribed by the Compensation Committee by using forms and following procedures approved or accepted by the Compensation Committee for that purpose.  Any shares of Common Stock that become payable upon death, and as to which a designation of beneficiary is not in effect, will be distributed to the Participant’s estate.

(c) Following distribution of shares of Common Stock, the Participant will be the beneficial owner of the net shares of Common Stock issued, and will be entitled to all rights of ownership.

(d) The primary purpose of this Plan is to provide deferred compensation to a select group of management and highly compensated employees through an unfunded “top-hat” plan within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.  

Section 9. Amendments and Termination.

(a) The Compensation Committee, in its sole discretion, may amend, suspend or discontinue the Plan or any deferral at any time; provided that no such amendment, suspension or discontinuance shall reduce the accrued benefit of any Participant except to the extent necessary to comply with applicable law.  The Compensation Committee further has the right, without a Participant’s consent, to amend or modify the terms of the Plan and such Participant’s deferral to the extent that the Compensation Committee deems it necessary to avoid adverse or unintended tax consequences to such Participant under federal, state or local income tax laws.

(b) The Compensation Committee, in its sole discretion, may terminate the Plan at any time, as long as such termination complies with then applicable tax and other requirements.

(c) Such other changes to deferrals shall be permitted and honored under the Plan to the extent authorized by the Compensation Committee and consistent with Section 409A of the Code.

Section 10. Miscellaneous.

(a) No Eligible Employee or other person shall have any claim to be entitled to make a deferral under the Plan, and there is no obligation for uniformity of treatment of Participants or beneficiaries under the Plan.  The terms and conditions of deferrals under the Plan need not be the same with respect to each Participant.

(b) The opportunity to make a deferral under the Plan shall not be construed as giving a Participant the right to be retained in the employment of the Company or any of its Subsidiaries.  A Participant’s deferral under the Plan is not intended to confer any rights on such Participant except as set forth in the Plan and the applicable Election Form.

(c) Nothing contained in the Plan shall prevent the Company from adopting or continuing in effect other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases.

(d) If any provision of the Plan or any Election Form is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or as to any person or deferral, or would disqualify the Plan or any deferral under any law deemed applicable by the Compensation Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Compensation Committee, materially altering the intent of the Plan or such Election Form, such provision shall be stricken as to such jurisdiction, person or deferral, and the remainder of the Plan and such Election Form shall remain in full force and effect.

Section 11. Effective Date of the Plan.  The Plan shall be effective as of the date on which the Plan is adopted by the Compensation Committee.

Section 12. Unfunded Status of the Plan.  The Plan is unfunded.  The Plan, together with the applicable Election Form, shall represent at all times an unfunded and unsecured contractual obligation of the Company.  Each Participant and beneficiary will be an unsecured creditor of the Company with respect to all obligations owed to them under the Plan.  No Participant or beneficiary will have any interest in any fund or in any specific asset of the Company of any kind, nor shall such Participant or beneficiary or any other person have any right to receive any payment or distribution under the Plan except as, and to the extent, expressly provided in the Plan and the applicable Election Form.  Any reserve or other asset that the Company may establish or acquire to assure itself of the funds to provide payments required under the Plan shall not serve in any way as security to any Participant or beneficiary for the Company’s performance under the Plan.

Section 13. Section 409A of the Code.  With respect to deferrals that are subject to Section 409A of the Code, the Plan is intended to comply with the requirements of Section 409A of the Code, and the provisions of the Plan and any Election Form shall be interpreted in a manner that satisfies the requirements of Section 409A of the Code, and the Plan shall be operated accordingly.  If any provision of the Plan or any term or condition of any Election Form would otherwise frustrate or conflict with this intent, the provision, term or condition will be interpreted and deemed amended so as to avoid this conflict.  Notwithstanding anything in the Plan to the contrary, distributions may only be made under the Plan upon an event and in a manner permitted by Section 409A of the Code, and all payments to be made upon termination of a Participant’s employment with the Company or any of its Subsidiaries under this Plan may only be made upon a “separation from service” under Section 409A of the Code.  If any Participant is a “specified employee” under section 409A of the Code (as determined by the Compensation Committee) and if the Participant’s distribution under the Plan is to commence, or be paid upon, separation from service, payment of the distribution shall be delayed for a period

of six months after the Participant’s separation date, if required pursuant to section 409A of the Code.  If payment is delayed, the accumulated postponed amount shall be paid within 10 days after the end of the six-month period following the date on which the Participant separates from service. 

Section 14. Governing Law.  The Plan shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws provisions thereof.

EX-21.1

Exhibit 21.1

SUBSIDIARIES OF THE REGISTRANT

Name	State or Other Jurisdiction of Incorporation or Organization
Acushnet Company	Delaware
AASI, Inc.	Delaware
ACTM LLC	Delaware
Acushnet Australia Pty. Ltd.	Australia
Acushnet Canada Inc.	Canada
Acushnet Cayman Limited	Cayman Islands
Acushnet Danmark ApS	Denmark
Acushnet Espana, S.L.U.	Spain
Acushnet Europe Ltd.	United Kingdom
Acushnet FootJoy (Thailand) Limited	Thailand
Acushnet France S.A.S.	France
Acushnet GmbH	Germany
Acushnet Golf Products Trading (Shenzhen) Co. Ltd.	China
Acushnet Golf (Thailand) Limited	Thailand
Acushnet Hong Kong Limited	Hong Kong
Acushnet International Inc.	Delaware
Acushnet Ireland Limited	Ireland
Acushnet Japan, Inc.	Delaware
Acushnet Korea Co., Ltd.	South Korea
Acushnet Malaysia Sdn. Bhd.	Malaysia
Acushnet Nederland B.V.	Netherlands
Acushnet Netherlands Manufacturing B.V.	Netherlands
Acushnet Netherlands Manufacturing C.V.	Netherlands
Acushnet Netherlands Services B.V.	Netherlands
Acushnet New Zealand Limited	New Zealand
Acushnet Osterreich GmbH	Austria
Acushnet Singapore Pte Ltd.	Singapore
Acushnet South Africa (Pty.) Ltd.	South Africa
Acushnet Sverige Aktiebolag	Sweden
Acushnet Titleist (Thailand) Limited	Thailand
Webb Acquisition Co.	Delaware

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statement on Form S-8(333-214275) of Acushnet Holdings Corp. of our reportdated March 7, 2018 relating to the financial statements and the effectiveness of internal control over financial reporting, which appears in this Form 10‑K.

/s/ PricewaterhouseCoopers LLP

Boston, Massachusetts

March 7, 2018

EX-24.1

Exhibit 24.1

POWER OF ATTORNEY

The undersigned directors and officers of Acushnet Holdings Corp. hereby constitute and appoint Brendan M. Gibbons, Roland A. Giroux and Chad M. Van Ess and each of them, as his or her true and lawful attorneys-in-fact and agents, with power to act with or without the others and with full power of substitution and resubstitution, to do any and all acts and things and to execute any and all instruments which said attorneys and agents and each of them may deem necessary or desirable to enable the registrant to comply with the U.S. Securities Exchange Act of 1934, as amended, and any rules, regulations and requirements of the U.S. Securities and Exchange Commission thereunder in connection with the registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (the “Annual Report”), including specifically, but without limiting the generality of the foregoing, power and authority to sign the name of the registrant and the name of the undersigned, individually and in his or her capacity as a director or officer of the registrant, to the Annual Report as filed with the Securities and Exchange Commission, to any and all amendments thereto, and to any and all instruments or documents filed as part thereof or in connection therewith; and each of the undersigned hereby ratifies and confirms all that said attorneys and agents and each of them shall do or cause to be done by virtue hereof.

Signature	Capacity	Date
/s/ DAVID MAHER	President and Chief Executive Officer (Principal Executive Officer)	March 7, 2018
David Maher
/s/ WILLIAM BURKE	Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) Senior Vice President, Finance and Chief Accounting Officer (Principal Accounting Officer)	March 7, 2018 March 7, 2018
William Burke
/s/ THOMAS PACHECO
Thomas Pacheco
/s/ YOON SOO YOON	Chairman	March 7, 2018
Yoon Soo (Gene) Yoon
/s/ JENNIFER ESTABROOK	Director	March 7, 2018
Jennifer Estabrook
/s/ GREGORY HEWETT	Director	March 7, 2018
Gregory Hewett
/s/ CHRISTOPHER METZ	Director	March 7, 2018
Christopher Metz
/s/ SEAN SULLIVAN	Director	March 7, 2018
Sean Sullivan
/s/ STEVEN TISHMAN	Director	March 7, 2018
Steven Tishman
/s/ WALTER UIHLEIN	Director	March 7, 2018
Walter Uihlein
/s/ DAVID VALCOURT	Director	March 7, 2018
David Valcourt
/s/ NORMAN WESLEY	Director	March 7, 2018
Norman Wesley

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, David Maher, certify that:

1. I have reviewed this Annual Report on Form 10‑K of Acushnet Holdings Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(f) and 15d‑15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 7, 2018

/s/ DAVID MAHER

Name: David Maher

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, William Burke, certify that:

1. I have reviewed this Annual Report on Form 10‑K of Acushnet Holdings Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(f) and 15d‑15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 7, 2018

 w

/s/WILLIAM BURKE

Name: William Burke

Executive Vice President, Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION OF PERIODIC FINANCIAL REPORTS

I, David Maher, President and Chief Executive Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Annual Report on Form 10‑K for the year ended December 31, 2017, (the “Periodic Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of Acushnet Holdings Corp.

Date: March 7, 2018

WAL
	/s/DAVID MAHER
	Name: David Maher
	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF PERIODIC FINANCIAL REPORTS

I, William Burke, Executive Vice President, Chief Financial Officer and Treasurer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Annual Report on Form 10‑K for the year ended December 31, 2017, (the “Periodic Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of Acushnet Holdings Corp.

Date: March 7, 2018

/s/WILLIAM BURKE

Name: William Burke

Executive Vice President, Chief Financial Officer and Treasurer

XML

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Mar. 02, 2018	Jun. 30, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Acushnet Holdings Corp.
Entity Central Index Key	0001672013
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 667.6
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Common stock outstanding		74,744,536

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash and restricted cash ($13,086 and $13,811 attributable to the variable interest entity ("VIE"))	$ 47,722	$ 79,140
Accounts receivable, net	190,851	177,506
Inventories ($13,692 and $14,633 attributable to the VIE)	363,962	323,289
Other assets	84,541	84,596
Total current assets	687,076	664,531
Property, plant and equipment, net ($10,240 and $10,709 attributable to the VIE)	228,922	239,748
Goodwill ($32,312 and $32,312 attributable to the VIE)	185,941	179,241
Intangible assets, net	481,234	489,988
Deferred income taxes	110,318	130,416
Other assets ($2,738 and $2,642 attributable to the VIE)	33,833	32,247
Total assets	1,727,324	1,736,171
Current liabilities
Short-term debt	20,364	42,495
Current portion of long-term debt	26,719	18,750
Accounts payable ($10,587 and $10,397 attributable to the VIE)	92,759	87,608
Accrued taxes	34,310	41,962
Accrued compensation and benefits ($780 and $780 attributable to the VIE)	80,189	224,230
Accrued expenses and other liabilities ($2,719 and $4,121 attributable to the VIE)	52,442	47,063
Total current liabilities	306,783	462,108
Long-term debt and capital lease obligations	416,970	348,348
Deferred income taxes	9,318	7,452
Accrued pension and other postretirement benefits ($1,908 and $1,946 attributable to the VIE)	130,160	135,339
Other noncurrent liabilities ($4,689 and $3,368 attributable to the VIE)	16,701	14,101
Total liabilities	879,932	967,348
Shareholders' Equity
Common stock, $0.001 par value, 500,000,000 shares authorized; 74,479,319 and 74,093,598 shares issued and outstanding	74	74
Additional paid-in capital	894,727	880,576
Accumulated other comprehensive loss, net of tax	(81,691)	(90,834)
Retained earnings (deficit)	1,618	(53,951)
Total equity attributable to Acushnet Holdings Corp.	814,728	735,865
Noncontrolling interests	32,664	32,958
Total shareholders' equity	847,392	768,823
Total liabilities and shareholders' equity	$ 1,727,324	$ 1,736,171

XML

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Cash and restricted cash	$ 47,722	$ 79,140
Inventories	363,962	323,289
Property, plant and equipment, net	228,922	239,748
Goodwill	185,941	179,241
Other assets	33,833	32,247
Accounts payable	92,759	87,608
Accrued compensation and benefits	80,189	224,230
Accrued expenses and other liabilities	52,442	47,063
Accrued pension and other postretirement benefits	130,160	135,339
Other noncurrent liabilities	$ 16,701	$ 14,101
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	74,479,319	74,093,598
Common stock, shares outstanding	74,479,319	74,093,598
VIE
Cash and restricted cash	$ 13,086	$ 13,811
Inventories	13,692	14,633
Property, plant and equipment, net	10,240	10,709
Goodwill	32,312	32,312
Other assets	2,738	2,642
Accounts payable	10,587	10,397
Accrued compensation and benefits	780	780
Accrued expenses and other liabilities	2,719	4,121
Accrued pension and other postretirement benefits	1,908	1,946
Other noncurrent liabilities	$ 4,689	$ 3,368

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 1,560,258	$ 1,572,275	$ 1,502,958
Cost of goods sold	759,466	773,550	727,120
Gross profit	800,792	798,725	775,838
Operating expenses:
Selling, general and administrative	579,837	600,804	604,018
Research and development	48,148	48,804	45,977
Intangible amortization	6,499	6,608	6,617
Restructuring charges		1,673	1,643
Income from operations	166,308	140,836	117,583
Interest expense, net (Note 14)	15,709	49,908	60,294
Other (income) expense, net	(1,077)	1,706	25,139
Income before income taxes	151,676	89,222	32,150
Income tax expense	55,056	39,707	27,994
Net income	96,620	49,515	4,156
Less: Net income attributable to noncontrolling interests	(4,506)	(4,503)	(5,122)
Net income (loss) attributable to Acushnet Holdings Corp.	92,114	45,012	(966)
Dividends earned by preferred shareholders		(11,576)	(13,785)
Allocation of undistributed earnings to preferred shareholders		(10,247)
Net income (loss) attributable to common stockholders - basic	92,114	23,189	(14,751)
Adjustments to net income for dilutive securities		16,475
Net income (loss) attributable to common stockholders - diluted	$ 92,114	$ 39,664	$ (14,751)
Net income (loss) per common share attributable to Acushnet Holdings Corp.:
Basic	$ 1.24	$ 0.74	$ (0.74)
Net income (loss) per common share attributable to Acushnet Holdings Corp. - diluted
Diluted	1.23	$ 0.62	$ (0.74)
Cash dividends declared per common share:	$ 0.48
Weighted average number of common shares:
Basic	74,399,836	31,247,643	19,939,293
Diluted	74,590,999	64,323,742	19,939,293

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income	$ 96,620	$ 49,515	$ 4,156
Other comprehensive income (loss)
Foreign currency translation adjustments	26,964	(14,656)	(19,042)
Foreign exchange derivative instruments
Unrealized holding gains (losses) arising during period	(15,558)	7,014	14,964
Reclassification adjustments included in net income	(1,329)	(5,194)	(26,805)
Tax benefit (expense)	4,072	(451)	3,836
Foreign exchange derivative instruments, net	(12,815)	1,369	(8,005)
Available-for-sale securities
Unrealized holding gains (losses) arising during period	150	51	(673)
Tax benefit (expense)	35	(19)	160
Available-for-sale securities, net	185	32	(513)
Pension and other postretirement benefits
Pension and other postretirement benefits adjustments	(6,889)	(16,072)	3,068
Tax benefit (expense)	1,698	5,727	(1,684)
Pension and other postretirement benefits adjustments, net	(5,191)	(10,345)	1,384
Total other comprehensive income (loss)	9,143	(23,600)	(26,176)
Comprehensive income (loss)	105,763	25,915	(22,020)
Less: Comprehensive income attributable to noncontrolling interests	(4,524)	(4,563)	(5,017)
Comprehensive income (loss) attributable to Acushnet Holdings Corp.	$ 101,239	$ 21,352	$ (27,037)

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Net income	$ 96,620	$ 49,515	$ 4,156
Adjustments to reconcile net income to cash provided by (used in) operating activities
Depreciation and amortization	40,871	40,834	41,702
Unrealized foreign exchange (gain) loss	(4,028)	(2,347)	2,933
Amortization of debt issuance costs	1,321	3,378	5,157
Amortization of discount on bonds payable		3,963	4,142
Change in fair value of common stock warrants		6,112	28,364
Share-based compensation	15,285	14,494	2,033
Loss on disposals of property, plant and equipment	912	170	401
Deferred income taxes	27,853	7,849	2,188
Changes in operating assets and liabilities
Accounts receivable	(2,592)	12,630	(174)
Inventories	(28,372)	(2,377)	(45,415)
Accounts payable	974	1,968	(1,998)
Accrued taxes	(10,283)	14,666	540
Accrued expenses and other liabilities	(145,837)	113,042	35,364
Other assets	(8,477)	(6,960)	1,165
Other noncurrent liabilities	(11,284)	(140,098)	12,278
Interest due to related parties		(12,570)	(1,006)
Cash flows provided by (used in) operating activities	(27,037)	104,269	91,830
Cash flows from investing activities
Additions to property, plant and equipment	(18,845)	(19,175)	(23,201)
Cash flows used in investing activities	(18,845)	(19,175)	(23,201)
Cash flows from financing activities
Increase (decrease) in short-term borrowings, net	(25,548)	747	7,890
Proceeds from delayed draw term loan A facility	100,000
Repayment of delayed draw term loan A facility	(5,000)
Repayment of term loan facilities	(18,750)	(4,688)
Repayment of senior term loan facility		(30,000)
Proceeds from term loan facility		375,000
Repayment of secured floating rate notes		(375,000)	(50,000)
Proceeds from exercise of common stock warrants		34,503	34,503
Repayment of bonds		(34,503)	(34,503)
Debt issuance costs		(6,606)
Dividends paid on common stock	(35,744)
Dividends paid on Series A redeemable convertible preferred stock		(17,316)	(13,747)
Dividends paid to noncontrolling interests	(4,800)	(4,800)	(4,200)
Payment of employee restricted stock tax withholdings	(903)
Cash flows provided by (used in) financing activities	9,255	(62,663)	(60,057)
Effect of foreign exchange rate changes on cash	5,209	(2,425)	(3,205)
Net increase (decrease) in cash	(31,418)	20,006	5,367
Cash and restricted cash, beginning of year	79,140	59,134	53,767
Cash and restricted cash, end of period	47,722	79,140	59,134
Supplemental information
Cash paid for interest to related parties		36,753	32,274
Cash paid for interest to third parties	15,488	27,165	20,571
Cash paid for income taxes	35,949	16,589	19,724
Non-cash additions to property, plant and equipment	2,876	1,170	1,913
Dividend equivalents declared not paid	$ 801
Non-cash conversion of Series A redeemable convertible preferred stock		131,036
Non-cash conversion of convertible notes		362,489
Non-cash conversion of common stock warrants		$ 28,996	7,298
Non-cash exercise of stock options			$ 2,752

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CONSOLIDATED STATEMENT OF REEDEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY - USD ($) $ in Thousands	Parent	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings (Deficit)	Noncontrolling Interest	Redeemable Convertible Preferred Stock	Total
Beginning balance at Dec. 31, 2014	$ 156,587	$ 18	$ 264,561	$ (41,058)	$ (66,934)	$ 32,333	$ 131,036	$ 188,920
Beginning balance (in shares) at Dec. 31, 2014		18,552					1,838
Changes in stockholders' equity
Net income	(966)				(966)	5,122		4,156
Issuance of common stock (in shares)		3,105
Issuance of common stock	41,801	$ 3	41,798					41,801
Exercise of common stock options (in shares)		164
Exercise of common stock options (in value)	2,752	$ 1	2,751					2,752
Other comprehensive income (loss)	(26,176)			(26,176)				(26,176)
Dividends paid on Series A redeemable convertible preferred stock	(13,747)				(13,747)			(13,747)
Dividends declared to noncontrolling interests						(4,200)		(4,200)
Ending balance at Dec. 31, 2015	160,251	$ 22	309,110	(67,234)	(81,647)	33,255	$ 131,036	193,506
Ending balance (in shares) at Dec. 31, 2015		21,821					1,838
Changes in stockholders' equity
Net income	45,012				45,012	4,503		49,515
Issuance of common stock (in shares)		3,105
Issuance of common stock	63,499	$ 3	63,496					63,499
Conversion of redeemable convertible preferred stock (in shares)		16,542					(1,838)
Conversion of redeemable convertible preferred stock (in Value)	131,036	$ 16	131,020				$ (131,036)	131,036
Conversion of convertible notes	362,489	$ 33	362,456					362,489
Conversion of convertible notes (in shares)		32,626
Other comprehensive income (loss)	(23,600)			(23,600)				(23,600)
Share-based compensation	14,494		14,494					14,494
Dividends paid on Series A redeemable convertible preferred stock	(17,316)				(17,316)		(13,700)	(17,316)
Dividends declared to noncontrolling interests						(4,800)		(4,800)
Ending balance at Dec. 31, 2016	735,865	$ 74	880,576	(90,834)	(53,951)	32,958		768,823
Ending balance (in shares) at Dec. 31, 2016		74,094
Changes in stockholders' equity
Net income	92,114				92,114	4,506		96,620
Other comprehensive income (loss)	9,143			9,143				9,143
Share-based compensation	15,054		15,054					15,054
Vesting of restricted common stock, net of shares withheld for employee taxes (in shares)		385
Vesting of restricted common stock, net of shares withheld for employee taxes (in value)	(903)		(903)					(903)
Dividends and dividend equivalents declared	(36,545)				(36,545)			(36,545)
Dividends paid on Series A redeemable convertible preferred stock							$ (17,300)
Dividends declared to noncontrolling interests						(4,800)		(4,800)
Ending balance at Dec. 31, 2017	$ 814,728	$ 74	$ 894,727	$ (81,691)	$ 1,618	$ 32,664		$ 847,392
Ending balance (in shares) at Dec. 31, 2017		74,479

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Description of Business

12 Months Ended

Dec. 31, 2017

Description of Business

Description of Business

1. Description of Business

Acushnet Holdings Corp. (the “Company”), headquartered in Fairhaven, Massachusetts, is the global leader in the design, development, manufacture and distribution of performance-driven golf products. The Company has established positions across all major golf equipment and golf wear categories under its globally recognized brands of Titleist, FootJoy, Scotty Cameron and Vokey Design. Acushnet products are sold primarily to on-course golf pro shops and selected off-course golf specialty stores, sporting goods stores and other qualified retailers. The Company sells products primarily in the United States, Europe (primarily the United Kingdom, Germany, France and Sweden), Asia (primarily Japan, Korea, China and Singapore), Canada and Australia. Acushnet manufactures and sources its products principally in the United States, China, Thailand, the United Kingdom and Japan.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company, its wholly- owned subsidiaries and a variable interest entity (“VIE”) in which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to current year presentation.

Use of Estimates

The preparation of the Company’s consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect reported amounts of assets, liabilities, stockholders’ equity, net sales and expenses, and the disclosure of contingent assets and liabilities in its consolidated financial statements. Actual results could differ from those estimates.

Acquisition

Acushnet Holdings Corp. was incorporated in Delaware on May 9, 2011 as Alexandria Holdings Corp., an entity owned by Fila Korea Co., Ltd. (“Fila Korea”), a leading sport and leisure apparel and footwear company which is a public company listed on the Korea Exchange, and a consortium of investors (the “Financial Investors”) led by Mirae Asset Global Investments, a global investment management firm. Acushnet Holdings Corp. acquired Acushnet Company, our operating subsidiary, from Beam Suntory, Inc. (at the time known as Fortune Brands, Inc.) (“Beam”) on July 29, 2011 (the “Acquisition”).

Initial Public Offering

On November 2, 2016, the Company completed an initial public offering of 19,333,333 shares of its common stock sold by selling stockholders at a public offering price of $17.00 per share. Upon the closing of the Company’s initial public offering, all remaining outstanding shares of the Company’s Series A redeemable convertible preferred stock (“Series A preferred stock”) were automatically converted into 11,556,495 shares of the Company’s common stock and the Company’s 7.5% convertible notes due 2021 (“convertible notes”) were automatically converted into 22,791,852 shares of the Company’s common stock. The underwriters of the Company’s initial public offering exercised their over-allotment option to purchase an additional 2,899,999 shares of common stock from the selling stockholders at the initial public offering price of $17.00 per share.

Following the pricing of the initial public offering, Magnus Holdings Co., Ltd. (“Magnus”), a wholly-owned subsidiary of Fila Korea, purchased from the Financial Investors on a pro rata basis 14,818,720 shares of the Company’s common stock, resulting in Magnus holding a controlling ownership interest in the Company’s outstanding common stock. The 14,818,720 shares of the Company’s common stock sold by the Financial Investors were received upon the automatic conversion of certain of the Company’s outstanding convertible notes (Note 9) and Series A preferred stock (Note 15). The remaining outstanding convertible notes and Series A preferred stock automatically converted into shares of the Company’s common stock prior to the closing of the initial public offering.

On October 14, 2016, the Company effected a nine-for-one stock split of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for its convertible notes, Series A preferred stock, and the exercise price for the common stock warrants and the strike price of stock-based compensation. Accordingly, all share and per share amounts for all periods presented in the accompanying consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this stock split and adjustment of the common stock warrant exercise price, and convertible notes and redeemable convertible preferred stock conversion ratios.

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 noncontrolling entities have guaranteed the credit lines of the VIE, for which there were no outstanding borrowings as of December 31, 2017 and 2016. In addition, pursuant to the terms of the agreement governing the VIE, the Company is not required to provide financial support to the VIE.

Cash and Restricted Cash

Cash held in Company checking accounts is included in cash. Book overdrafts not subject to offset with other accounts with the same financial institution are classified as accounts payable. As of December 31, 2017 and 2016, book overdrafts in the amount of $2.9 million and $3.6 million, respectively, were recorded in accounts payable. The Company classifies as restricted certain cash that is not available for use in its operations. As of December 31, 2017 and 2016, the amount of restricted cash included in cash and restricted cash on the consolidated balance sheet was $2.3 million and $3.1 million, respectively.

Accounts Receivable

 Accounts receivable are presented net of an allowance for doubtful accounts. The allowance for doubtful accounts is assessed each reporting period by the Company for estimated losses resulting from the inability or unwillingness of its customers to make required payments. The allowance is based on various factors, including credit risk assessments, length of time the receivables are past due, historical experience, customer specific information available to the Company and existing economic conditions.

Allowance for Sales Returns

 A sales returns allowance is recorded for anticipated returns through a reduction of sales and cost of goods sold in the period that the related sales are recorded. Sales returns are estimated based upon historical rates of product returns, current economic trends and changes in customer demands as well as specific identification of outstanding returns. In accordance with this policy, the allowance for sales returns was $13.5 million and $9.8 million as of December 31, 2017 and 2016, respectively. 

Concentration of Credit Risk and of Significant Customers

 Financial instruments that potentially expose the Company to concentration of credit risk are cash and accounts receivable. Substantially all of the Company's cash deposits are maintained at large, creditworthy financial institutions. The Company's deposits, at times, may exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. As part of its ongoing procedures, the Company monitors its concentration of deposits with various financial institutions in order to avoid any undue exposure. As of December 31, 2017 and 2016, the Company had $44.7 million and $75.6 million, respectively, in banks located outside the United States. The risk with respect to the Company's accounts receivable is managed by the Company through its policy of monitoring the creditworthiness of its customers to which it grants credit terms in the normal course of business. 

Inventories

Inventories are valued at the lower of cost and net realizable value. Cost is determined using the first-in, first-out inventory method. The inventory balance, which includes material, labor and manufacturing overhead costs, is recorded net of an allowance for obsolete or slow moving inventory. The Company's allowance for obsolete or slow moving inventory contains estimates regarding uncertainties. Such estimates are updated each reporting period and require the Company to make assumptions and to apply judgment regarding a number of factors, including market conditions, selling environment, historical results and current inventory trends.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. Gains or losses resulting from disposals are included in income from operations. Betterments and renewals, which improve and extend the life of an asset, are capitalized. Maintenance and repair costs are expensed as incurred.

Estimated useful lives of property, plant and equipment asset categories were as follows:

Buildings and improvements	15	–	40 years
Machinery and equipment	3	–	10 years
Furniture, fixtures and computer hardware	3	–	10 years
Computer software	1	–	10 years

Leasehold and tenant improvements are amortized over the shorter of the lease term or the estimated useful lives of the assets.

Certain costs incurred in connection with the development of the Company's internal-use software are capitalized. Software development costs are primarily related to the Company's enterprise resource planning system. Costs incurred in the preliminary stages of development are expensed as incurred. Internal and external costs incurred in the application development phase, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing performed to ensure the product is ready for its intended use. Costs such as maintenance and training are expensed as incurred. The capitalized internal-use software costs are included in property, plant and equipment and once the software is placed into service are amortized over the estimated useful life which ranges from three to ten years.

Long-Lived Assets

 A long-lived asset (including amortizable identifiable intangible assets) or asset group is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, the Company compares the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of the long-lived asset or asset group. The cash flows are based on the best estimate of future cash flows derived from the most recent business projections. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment loss is recognized based on the excess of the asset's or asset group's carrying value over its fair value. Fair value is determined based on discounted expected future cash flows on a market participant basis. Any impairment charge would be recognized within operating expenses as a selling, general and administrative expense.

The Company continually evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets may warrant revision or that the remaining balance may not be recoverable. These factors may include a significant deterioration of operating results, changes in business plans, or changes in anticipated cash flows.

Goodwill and Indefinite-Lived Intangible Assets

Goodwill and indefinite-lived intangible assets are not amortized but instead are measured for impairment at least annually, or more frequently when events or changes in circumstances indicate that the carrying amount of the asset may be impaired.

Goodwill is assigned to reporting units for purposes of impairment testing. A reporting unit may be the same as an operating segment or one level below an operating segment. For purposes of assessing potential impairment, the Company may assess qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If the Company determines based on the qualitative factors that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, no further testing is necessary. If, however, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company performs the first step of a two-step quantitative goodwill impairment test. In the first step, the Company compares the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference. The fair value of the reporting units is determined using the income approach. The income approach uses a discounted cash flow analysis which involves applying appropriate discount rates to estimated future cash flows based on forecasts of sales, costs and capital requirements.

The Company performs its annual impairment tests in the fourth quarter of each fiscal year. As of December 31, 2017, no impairment of goodwill was identified and the fair value of each reporting unit exceeded its carrying value.

Purchased intangible assets other than goodwill are amortized over their useful lives unless those lives are determined to be indefinite. The Company's trademarks have been assigned an indefinite life as the Company currently anticipates that these trademarks will contribute to its cash flows indefinitely. Trademarks are reviewed for impairment annually and may be reviewed more frequently if indicators of impairment are present. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company measures the fair value of its trademarks using the relief-from-royalty method, which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. As of December 31, 2017, no impairment of trademarks was identified. 

Deferred Financing Costs

The Company defers costs directly associated with acquiring third-party financing. These deferred costs are amortized as interest expense over the term of the related indebtedness. Deferred financing costs associated with the revolving credit facilities are included in other current and noncurrent assets and deferred financing costs associated with all other indebtedness are netted against debt on the consolidated balance sheet.

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 maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

· Level 1—Quoted prices in active markets for identical assets or liabilities.

· Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

· Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The Company’s foreign exchange derivative assets and liabilities are carried at fair value determined according to the fair value hierarchy described above (Note 11). The carrying value of accounts receivable, accounts payable and accrued expenses approximates fair value due to the short-term nature of these assets and liabilities. The Company adopted the fair value measurement disclosures for nonfinancial assets and liabilities, such as goodwill and indefinite-lived intangible assets.

In some instances where a market price is available, but the instrument is in an inactive or over-the-counter market, the Company consistently applies the dealer (market maker) pricing estimate and uses a midpoint approach on bid and ask prices from financial institutions to determine the reasonableness of these estimates. Assets and liabilities subject to this fair value valuation approach are typically classified as Level 2.

Pension and Other Postretirement Benefit Plans

The Company provides U.S. and foreign defined benefit and defined contribution plans to eligible employees and postretirement benefits to certain retirees, including pensions, postretirement healthcare benefits and other postretirement benefits.

Plan assets and obligations are measured using various actuarial assumptions, such as discount rates, rate of compensation increase, mortality rates, turnover rates and health care cost trend rates, as determined at each year end measurement date. The measurement of net periodic benefit cost is based on various actuarial assumptions, including discount rates, expected return on plan assets and rate of compensation increase, which are determined as of the prior year measurement date. The determination of the discount rate is generally based on an index created from a hypothetical bond portfolio consisting of high-quality fixed income securities with durations that match the timing of expected benefit payments. The expected return on plan assets is determined based on several factors, including adjusted historical returns, historical risk premiums for various asset classes and target asset allocations within the portfolio. Adjustments made to the historical returns are based on recent return experience in the equity and fixed income markets and the belief that deviations from historical returns are likely over the relevant investment horizon. Actual cost is also dependent on various other factors related to the employees covered by these plans. The effects of actuarial deviations from assumptions are generally accumulated and, if over a specified corridor, amortized over the remaining service period of the employees. The cost or benefit of plan changes, such as increasing or decreasing benefits for prior employee service (prior service cost), is deferred and included in expense on a straight-line basis over the average remaining service period of the related employees. The Company's actuarial assumptions are reviewed on an annual basis and modified when appropriate.

To calculate the U.S. pension and postretirement benefit plan expense in 2017, the Company applied the individual spot rates along the yield curve that correspond with the timing of each future cash outflow for the benefit payments in order to calculate interest cost and service cost.  Prior to 2017, the service cost and interest cost components were determined using a single weighted-average discount rate. The change does not affect the measurement of the total benefit plan obligations, as the change in the service cost and interest cost offsets in the actuarial gains and losses recorded in other comprehensive income. The Company changed to the new method to provide a more precise measure of service and interest cost by improving the correlation between the projected benefit cash flows and the discrete spot yield curve rates. The Company accounted for this change as a change in estimate prospectively beginning in 2017.  

Income Taxes

The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between consolidated financial statement carrying amounts and tax basis amounts enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is recorded to reduce deferred income tax assets when it is more-likely-than-not that such assets will not be realized. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies.

The Company records liabilities for uncertain income tax positions based on the two step process. The first step is recognition, where an individual tax position is evaluated as to whether it has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized on ultimate settlement. The actual benefits ultimately realized may differ from the estimates. In future periods, changes in facts, circumstances, and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in income tax expense and liability in the period in which such changes occur. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes on the consolidated statements of income.

Beam has indemnified certain tax obligations that relate to periods during which Fortune Brands, Inc. owned Acushnet Company (Note 13). These estimated tax obligations are recorded in accrued taxes and other noncurrent liabilities, and the related indemnification receivable is recorded in other current and noncurrent assets on the consolidated balance sheet. Any changes in the value of these specifically identified tax obligations are recorded in the period identified in income tax expense and the related change in the indemnification asset is recorded in other (income) expense, net on the consolidated statement of operations. 

Revenue Recognition

Revenue is recognized upon shipment or upon receipt by the customer depending on the country of the sale and the agreement with the customer, net of allowances for discounts, sales returns, customer sales incentives and cooperative advertising. The criteria for recognition of revenue is met when persuasive evidence that an arrangement exists, both title and risk of loss have passed to the customer, the price is fixed or determinable and collectability is reasonably assured. In circumstances where either title or risk of loss pass upon receipt by the customer, revenue is deferred until such event occurs based on an estimate of the shipping time from the Company's distribution centers to the customer using historical and expected delivery times by geographic location. Amounts billed to customers for shipping and handling are included in net sales.

Customer Sales Incentives

The Company offers customer sales incentives, including off-invoice discounts and sales-based rebate programs, to its customers which are primarily accounted for as a reduction in sales at the time the revenue is recognized. Sales-based rebates are estimated using assumptions related to the percentage of customers who will achieve qualifying purchase goals and the level of achievement. These assumptions are based on historical experience, current year program design, current marketplace conditions and sales forecasts, including considerations of product life cycles.

Cost of Goods Sold

Cost of goods sold includes all costs to make products saleable, such as inbound freight, purchasing and receiving costs, inspection costs and transfer costs. In addition, all depreciation expense associated with assets used to manufacture products and make them saleable is included in cost of goods sold.

Product Warranty

The Company has defined warranties ranging from one to two years. Products covered by the defined warranty policies include all Titleist golf products, FootJoy golf shoes, and FootJoy golf outerwear. These product warranties generally obligate the Company to pay for the cost of replacement products, including the cost of shipping replacement products to its customers. The estimated cost of satisfying future warranty claims is accrued at the time the sale is recorded. In estimating future warranty obligations, the Company considers various factors, including its warranty policies and practices, the historical frequency of claims, and the cost to replace or repair products under warranty.

Advertising and Promotion

Advertising and promotional costs are included in selling, general and administrative expense on the consolidated statement of operations and include product endorsement arrangements with members of the various professional golf tours, media placement and production costs (television, print and internet), tour support expenses and point-of-sale materials. Advertising production costs are expensed as incurred. Media placement costs are expensed in the month the advertising appears. Product endorsement arrangements are expensed based upon the specific provisions of player contracts. Advertising and promotional expense was $192.7 million, $196.0 million and $203.3 million for the years ended December 31, 2017,  2016 and 2015, respectively.

Selling

Selling expenses including field sales, sales administration and shipping and handling costs are included in selling, general and administrative expense on the consolidated statement of operations. Shipping and handling costs included in selling expenses were $32.5million, $32.4 million and $32.6 million for the years ended December 31, 2017,  2016 and 2015, respectively.

Research and Development

Research and development expenses include product development, product improvement, product engineering, and process improvement costs and are expensed as incurred.

Foreign Currency Translation and Transactions

Assets and liabilities denominated in foreign currency are translated into U.S. dollars at the actual rates of exchange at the balance sheet date. Revenues and expenses are translated at the average rates of exchange for the reporting period. The related translation adjustments are recorded as a component of accumulated other comprehensive income (loss). Transactions denominated in a currency other than the functional currency are re-measured into functional currency with resulting transaction gains or losses recorded as selling, general and administrative expense on the consolidated statement of operations. Foreign currency transaction gain (loss) included in selling, general and administrative expense was a gain of $4.1 million, a gain of $1.2 million and a loss of $4.7 million for the years ended December 31, 2017, 2016 and 2015, respectively. 

Derivative Financial Instruments

All derivatives are recognized as either assets or liabilities on the consolidated balance sheet and measurement of these instruments is at fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive income (loss) and are recognized in the consolidated statement of operations when the hedged item affects earnings. Any portion of the change in fair value that is determined to be ineffective is immediately recognized in earnings as cost of goods sold.

The Company may elect to enter into foreign exchange forwards to mitigate the change in fair value of specific assets and liabilities which do not qualify as hedging instruments under U.S. GAAP. Accordingly, 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, together with the re-measurement gain or loss from the hedged asset or liability. There were no outstanding foreign exchange forward contracts not designated under hedge accounting as of December 31, 2017 and 2016.

Share-based Compensation

The Company has a share-based compensation plan for employees and non-employee members of the Company's Board of Directors. All awards granted under the plan are measured at fair value at the date of the grant and amortized as expense over the requisite service period of the award, which is generally the vesting period of the respective award. The Company accounts for forfeitures in compensation expense when they occur. The Company issues share-based awards with service-based vesting conditions and performance-based vesting conditions. For awards with performance-based vesting conditions, the measurement of the expense is based on the Company’s level of achievement of the applicable cumulative Adjusted EBITDA performance metrics.

Equity Appreciation Rights Plan

Awards granted under the Company's Equity Appreciation Rights (“EAR”) plan were accounted for as liability-classified awards because it was a cash settled plan. The Company elected the intrinsic value method to measure its liability-classified awards and amortized share-based compensation expense for those awards expected to vest on a straight-line basis over the requisite service period. The Company re-measured the intrinsic value of the awards at the end of each reporting period. 

Net Income (Loss) Per Common Share

Net income (loss) per common share attributable to Acushnet Holdings Corp. is calculated under the treasury stock method. Prior to the conversion of the redeemable convertible preferred shares to common stock in connection with the Company’s initial public offering in 2016, the Company applied the two-class method to calculate its basic and diluted net income (loss) per common share attributable to Acushnet Holdings Corp., as its redeemable convertible preferred shares were participating securities. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. Net income (loss) per common share available to Acushnet Holdings Corp. was determined by allocating undistributed earnings between holders of common shares and redeemable convertible preferred shares, based on the participation rights of the preferred shares. Basic net income (loss) per share attributable to Acushnet Holdings Corp. was computed by dividing the net income (loss) available to Acushnet Holdings Corp. by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share attributable to Acushnet Holdings Corp. was computed by dividing the net income (loss) available to Acushnet Holdings Corp. after giving effect to the diluted securities by the weighted-average number of dilutive shares outstanding during the period.

Diluted net income (loss) per common share attributable to Acushnet Holdings Corp. for the years ended December 31, 2017 and 2016 reflects the potential dilution that would occur if the Restricted Stock Units (“RSUs”) were converted into common shares. The restricted stock units are included as potential dilutive securities to the extent they are dilutive under the treasury stock method for the applicable periods.

Diluted net income (loss) per common share attributable to Acushnet Holdings Corp. for the year ended December 31, 2015 reflects the potential dilution that would occur if common stock warrants, convertible notes, redeemable convertible preferred stock, stock options or any other dilutive equity instruments were exercised or converted into common shares. The common stock warrants and stock options are included as potential dilutive securities to the extent they are dilutive under the treasury stock method for the applicable periods. The convertible notes and redeemable convertible preferred stock are included as potential dilutive securities to the extent they are dilutive under the if-converted method for the applicable periods.

Recently Adopted Accounting Standards

Consolidation— InterestsHeld Through Related Parties

In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016‑17, “Consolidation: Interests Held through Related Parties that are under Common Control.” ASU 2016‑17 changes the evaluation of whether a reporting entity is the primary beneficiary of a VIE by changing how a reporting entity that is a single decision maker of a VIE treats indirect interests in the entity held through related parties that are under common control with the reporting entity. The Company adopted the provisions of this standard during the three months ended March 31, 2017. The adoption of this standard did not have an impact on the consolidated financial statements.

Compensation—Stock Compensation

In March 2016, the FASB issued ASU 2016‑09, “Compensation—Stock Compensation: Improvements to Employee Share‑Based Payment Accounting” to simplify accounting for employee share‑based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The Company adopted the provisions of this standard prospectively during the three months ended March 31, 2017. The adoption of this standard did not have a material impact on the consolidated financial statements.

Recently Issued Accounting Standards

Income Statement—Reporting Comprehensive Income

In February 2018, the FASB issued ASU 2018‑02, “Income Statement—Reporting Comprehensive Income (Topic 220) —Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. ASU 2018‑02 is effective for annual periods beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company is still analyzing the complete impact this standard will have on its consolidated financial statements.

Derivatives and Hedging (Topic 815) —Targeted Improvements to Accounting for Hedging Activities

In August 2017, the FASB issued ASU 2017‑12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The amendments in this update expand and refine hedge accounting guidance and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. ASU 2017-12 also simplifies the application of hedge accounting guidance, hedge documentation requirements and the assessment of hedge effectiveness. ASU 2017‑12 is effective for annual periods beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

Compensation—Stock Compensation—Scope of Modification Accounting

In May 2017, the FASB issued ASU 2017‑09, “Compensation—Stock Compensation: Scope of Modification Accounting.” The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718, Compensation—Stock Compensation. ASU 2017‑09 is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

Compensation—Retirement Benefits

In March 2017, the FASB issued ASU 2017‑07, “Compensation—Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post Retirement Benefit Cost.” ASU 2017‑07 requires that an employer report the service cost component of net periodic pension and net periodic post retirement cost in the same line item as other compensation costs arising from services rendered by the employees during the period. It also requires the other components of net periodic pension and net periodic postretirement benefit cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component is eligible for capitalization. ASU 2017‑07 is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued or made available for issuance. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

Intangibles—Goodwill and Other—Simplifying the Test for Goodwill Impairment

In January 2017, the FASB issued ASU 2017‑04, “Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment.” ASU 2017‑04 removes the second step of the goodwill impairment test. Instead an entity will perform a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU 2017‑04 is effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

Business Combination—Clarifying the Definition of a Business

In January 2017, the FASB issued ASU 2017‑01, “Business Combinations: Clarifying the Definition of a Business.” ASU 2017‑01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of businesses. ASU 2017‑01 is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted for transactions for which the acquisition date occurs before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued or made available for issuance. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

Income Taxes

In October 2016, the FASB issued ASU 2016‑16, “Income Taxes: Intra-Entity Transfers of Assets other than Inventory.” ASU 2016-16 requires that entities recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016‑15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments” to address diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014‑09, “Revenue from Contracts with Customers.” ASU 2014‑09 amends revenue recognition guidance and requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In March 2016, the FASB issued ASU 2016‑08, “Revenue from Contracts with Customers: Principal versus Agent Considerations” clarifying the implementation guidance on principal versus agent considerations. In August 2015, the FASB issued ASU 2015‑14, “Revenue from Contracts with Customers: Deferral of the Effective Date.” deferring the adoption of previously issued guidance published. In May 2016, the FASB issued ASU 2016‑12, “Revenue from Contracts with Customers: Narrow‑Scope Improvements and Practical Expedients.” ASU 2016‑12 addresses narrow‑scope improvements to the guidance on collectability, noncash consideration and completed contracts at transition and provides a practical expedient for contract modifications and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. ASU 2016‑08 and 2015‑14 are effective for reporting periods beginning after December 15, 2017, including interim periods within those fiscal years. The new standard permits the use of either the retrospective or modified retrospective approach on adoption. The Company has adopted the standard on January 1, 2018 using a modified retrospective approach with the cumulative effect of initially applying the new standard recognized in retained earnings at the date of adoption.  The Company has identified customer incentives and expanded disclosures as the primary areas that will be affected by the new guidance. Based upon the terms of the Company’s agreements and the materiality of the transactions related to customer incentives, the Company does not expect the effect of adoption to have a material impact on the Company’s consolidated financial statements.

Leases

In February 2016, the FASB issued ASU 2016‑02, “Leases,” which will require lessees to recognize right‑of‑use assets and lease liabilities for leases which were formerly classified as operating leases. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. While the Company is still analyzing the complete impact this ASU will have on its consolidated financial statements and related disclosures, it does expect the adoption of this standard will have a material impact on its consolidated financial statements.

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Allowance for Doubtful Accounts

12 Months Ended

Dec. 31, 2017

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

3. Allowance for Doubtful Accounts

The change to the allowance for doubtful accounts was as follows:

(in thousands)		2017		2016		2015
Balance at beginning of year	$	12,255	$	12,363	$	8,528
Bad debt expense		337		6,507		4,771
Amount of receivables written off		(3,300)		(6,315)		(634)
Foreign currency translation		683		(300)		(302)
Balance at end of year	$	9,975	$	12,255	$	12,363

On September 14, 2016 Golfsmith International Holdings LP, one of the Company’s largest customers in the years ended December 31, 2016 and 2015, announced that its U.S.‑based business, Golfsmith International Holdings, Inc., (Golfsmith) commenced a Chapter 11 case under Title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware, and its Canada‑based business, Golf Town Canada Inc., (Golf Town) commenced creditor protection proceedings under the Companies’ Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). The Company’s outstanding receivable related to Golfsmith and Golf Town was reserved for in full by the time of the bankruptcy filing and as of December 31, 2016 the portion related to Golfsmith had been written off.

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Inventories

12 Months Ended

Dec. 31, 2017

Inventories

Inventories

4. Inventories

The components of inventories were as follows:

(in thousands)	December 31,		December 31,
	2017		2016
Raw materials and supplies	$	72,342	$	55,424
Work-in-process		23,956		21,558
Finished goods		267,664		246,307
Inventories	$	363,962	$	323,289

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Property, Plant and Equipment, Net

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment, Net

Property, Plant and Equipment, Net

5. Property, Plant and Equipment, Net

The components of property, plant and equipment, net were as follows:

	December 31,		December 31,
(in thousands)	2017		2016
Land	$	14,618	$	14,500
Buildings and improvements		138,570		133,844
Machinery and equipment		148,999		143,784
Furniture, computers and equipment		32,783		29,326
Computer software		60,736		58,462
Construction in progress		13,586		11,196
Property, plant and equipment, gross		409,292		391,112
Accumulated depreciation and amortization		(180,370)		(151,364)
Property, plant and equipment, net	$	228,922	$	239,748

During the years ended December 31, 2017,  2016 and 2015, software development costs of $3.1 million, $8.2 million and $43.0 million were capitalized, consisting of software placed into service of $2.4 million, $7.4 million and $40.6 million and amounts recorded in construction in progress of $0.7 million, $0.8 million and $2.4 million, respectively. Amortization expense on capitalized software development costs was $6.4 million, $5.8 million and $5.5 million for the years ended December 31, 2017,  2016 and 2015, respectively.

Total depreciation and amortization expense related to property, plant and equipment was $31.6 million, $31.5 million and $32.5 million for the years ended December 31, 2017,  2016 and 2015, respectively.

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Goodwill and Identifiable Intangible Assets, Net

12 Months Ended

Dec. 31, 2017

Goodwill and Identifiable Intangible Assets, Net

Goodwill and Identifiable Intangible Assets, Net

6. Goodwill and Identifiable Intangible Assets, Net

Goodwill allocated to the Company's reportable segments and changes in the carrying amount of goodwill were as follows:

	Titleist		Titleist		FootJoy		Titleist
(in thousands)	Golf Balls		Golf Clubs		Golf Wear		Golf Gear		Other		Total
Balances at December 31, 2015	$	106,561		51,753		2,303		12,549		8,013		181,179
Foreign currency translation		(1,139)		(554)		(25)		(134)		(86)		(1,938)
Balances at December 31, 2016		105,422		51,199		2,278		12,415		7,927		179,241
Foreign currency translation		3,941		1,914		85		464		296		6,700
Balances at December 31, 2017	$	109,363	$	53,113	$	2,363	$	12,879	$	8,223	$	185,941

The net carrying value by class of identifiable intangible assets was as follows:

	Weighted		December 31, 2017						December 31, 2016
	Average
	Useful				Accumulated		Net Book				Accumulated		Net Book
(in thousands)	Life (Years)		Gross		Amortization		Value		Gross		Amortization		Value
Indefinite-lived:
Trademarks		N/A	$	428,100	$	-	$	428,100	$	428,100	$	-	$	428,100
Amortizing:
Completed Technology		13		73,900		(35,486)		38,414		73,900		(29,956)		43,944
Customer Relationships		20		19,666		(6,309)		13,357		18,999		(5,146)		13,853
Licensing Fees and Other		7		32,539		(31,176)		1,363		32,423		(28,332)		4,091
Total intangible assets			$	554,205	$	(72,971)	$	481,234	$	553,422	$	(63,434)	$	489,988

During the years ended December 31, 2017, 2016 and 2015, no impairment charges were recorded to goodwill or indefinite-lived intangible assets.

Amortization expense on identifiable intangible assets was $9.3 million, $9.3 million and $9.3 million for the years ended December 31, 2017,  2016 and 2015, respectively, of which $2.7 million associated with certain licensing fees was included in cost of goods sold in each year.

Amortization expense related to intangible assets as of December 31, 2017 for each of the next five fiscal years and beyond is expected to be as follows:

(in thousands)
Year ending December 31,
2018	$	7,878
2019		6,269
2020		5,926
2021		5,926
2022		5,926
Thereafter		21,209
Total	$	53,134

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Product Warranty

12 Months Ended

Dec. 31, 2017

Product Warranty

Product Warranty

7. Product Warranty

The activity related to the Company’s warranty obligation for accrued warranty expense was as follows:

	Year ended
	December 31,
(in thousands)	2017		2016		2015
Balance at beginning of period	$	3,526	$	3,345	$	2,989
Provision		5,801		6,200		5,399
Claims paid/costs incurred		(5,653)		(5,940)		(4,929)
Foreign currency translation		149		(79)		(114)
Balance at end of period	$	3,823	$	3,526	$	3,345

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Related Party Transactions

12 Months Ended

Dec. 31, 2017

Related Party Transactions

Related Party Transactions

8. Related Party Transactions

Other current assets includes receivables from related parties of $0.5 million and $0.9 million as of December 31, 2017 and 2016, respectively. Prior to its initial public offering, the Company incurred interest expense payable to related parties on its outstanding convertible notes (Note 9) and bonds with common stock warrants (Note 10). The related party interest expense totaled $28.1 million and $35.4 million for the years ended December 31, 2016 and 2015, respectively. 

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Debt and Financing Arrangements

12 Months Ended

Dec. 31, 2017

Debt and Financing Arrangements

Debt and Financing Arrangements

9. Debt and Financing Arrangements

The Company’s debt and capital lease obligations were as follows:

	December 31,		December 31,
(in thousands)	2017		2016
Term loan	$	351,563	$	370,313
Delayed draw term loan A facility		95,000		-
Revolving credit facility		10,066		42,495
Other short-term borrowings		10,298		-
Capital lease obligations		22		491
Debt issuance costs		(2,896)		(3,706)
Total		464,053		409,593
Less: short-term debt and current portion of long-term debt		47,083		61,245
Total long-term debt and capital lease obligations	$	416,970	$	348,348

The debt issuance costs of $2.9 million and $3.7 million as of December 31, 2017 and 2016, respectively relate to the term loan and delayed draw term loan A facility.

Senior Secured Credit Facility

On April 27, 2016, the Company entered into a senior secured credit facilities agreement arranged by Wells Fargo Bank, National Association which provides for (i) a $275.0 million multi‑currency revolving credit facility, initially including a $20.0 million letter of credit sublimit, a $25.0 million swing line sublimit, a C$25.0 million sublimit for Acushnet Canada, Inc., a £20.0 million sublimit for Acushnet Europe Limited and an alternative currency sublimit of $100.0 million for borrowings in Canadian dollars, euros, pounds sterling and Japanese yen (“revolving credit facility”), (ii) a $375.0 million term loan A facility and (iii) a $100.0 million delayed draw term loan A facility. The revolving and term loan facilities mature on July 28, 2021. On August 9, 2017, the senior secured credit facilities agreement was amended to increase the letter of credit sublimit to $25.0 million, to increase the sublimit for Acushnet Canada Inc. to C$35.0 million and to increase the sublimit for Acushnet Europe Limited to £30.0 million. The credit agreement allows for the incurrence of additional term loans or increases in the revolving credit facility in an aggregate principal amount not to exceed (i) $200.0 million plus (ii) an unlimited amount so long as the net average secured leverage ratio (as defined in the credit agreement) does not exceed 2.00:1.00 on a pro forma basis. The applicable interest rate for the Canadian borrowings under the senior secured credit facility is based on the Canadian Dollar Offered Rate (“CDOR”) plus a margin ranging from 1.25% to 2.00% depending on the Net Average Total Leverage Ratio as defined in the credit agreement. The applicable interest for the swing line sublimit is the highest of (a) Federal Funds Rate plus 0.50%, (b) the Prime Rate and (c) the one-month London Interbank Offered Rate (“LIBOR”) rate plus 1.00% plus a margin ranging from 0.25% to 1.00% depending on the Net Average Total Leverage Ratio as defined in the credit agreement. The applicable interest rate for all remaining borrowings under the senior secured credit facilities is LIBOR plus a margin ranging from 1.25% to 2.00% depending on the Net Average Total Leverage Ratio as defined in the credit agreement or the highest of (a) the Federal Funds Rate plus 0.50%, (b) the Prime Rate and (c) the one month LIBOR rate plus 1.00% plus a margin ranging from 0.25% to 1.00% depending on the Net Average Total Leverage Ratio as defined in the credit agreement. The senior secured credit facilities are secured by certain assets, including inventory, accounts receivable, fixed assets and intangible assets of the Company.

Interest on borrowings under the credit agreement is payable (1) on the last day of any interest period with respect to Eurodollar borrowings with an applicable interest period of three months or less, (2) every three months with respect to Eurodollar borrowings with an interest period of greater than three months or (3) on the last business day of each March, June, September and December with respect to base rate borrowings and swing line borrowings. In addition, beginning with the date of the initial funding under the credit agreement, the Company is required to pay a commitment fee on any unutilized commitments under the revolving credit facility and the new delayed draw term loan A facility. The initial commitment fee rate is 0.30% per annum and ranges from 0.20% to 0.35% based upon a leverage‑based pricing grid. The Company is also required to pay customary letter of credit fees.

The credit agreement requires the Company to prepay outstanding term loans, subject to certain exceptions, with:

· 100% of the net cash proceeds of all non‑ordinary course asset sales or other dispositions of property by the Company and its restricted subsidiaries (including insurance and condemnation proceeds, subject to de minimis thresholds), (1) if the Company does not reinvest those net cash proceeds in assets to be used in its business or to make certain other permitted investments, within 12 months of the receipt of such net cash proceeds or (2) if the Company commits to reinvest such net cash proceeds within 12 months of the receipt thereof, but does not reinvest such net cash proceeds within 18 months of the receipt thereof; and

· 100% of the net proceeds of any issuance or incurrence of debt by the Company or any of its restricted subsidiaries, other than debt permitted under the credit agreement.

The foregoing mandatory prepayments are used to reduce the installments of principal in such order: first, to prepay outstanding loans under the term loan A facility, the delayed draw term loan A facility and any incremental term loans on a pro rata basis in direct order of maturity and second, to prepay outstanding loans under the revolving credit facility.

The Company may voluntarily repay outstanding loans under the credit agreement at any time without premium or penalty, other than customary “breakage” costs with respect to Eurodollar loans. Any optional prepayment of term loans will be applied as directed by the Company.

The Company is required to make principal payments on the loans under the term loan facilities in quarterly installments in aggregate annual amounts equal to (i) 5.00% of the original principal amount for the first and second year after July 28, 2016, (ii) 7.50% of the original principal amount for the third and fourth year after July 28, 2016 and (iii) 10.0% of the original principal amount for the fifth year after July 28, 2016. The remaining outstanding amount is payable on July 28, 2021, the maturity date for the term loan facilities. Principal amounts outstanding under the revolving credit facility will be due and payable in full on July 28, 2021, the maturity date for the revolving credit facility.

The Company’s credit agreement was signed and became effective on April 27, 2016 and initial funding under the credit agreement occurred on July 28, 2016. The proceeds of the $375.0 million term loan A facility, borrowings of C$4.0 million (equivalent to approximately $3.0 million) under the revolving credit facility and cash on hand of $23.6 million were used to repay all amounts outstanding under the secured floating rate notes and certain former working credit facilities. The secured floating rate notes, certain former working credit facilities and the former senior revolving credit facility were terminated.

During the first quarter of 2017, the Company drew down $100.0 million on the delayed draw term loan A facility and $47.8 million under the revolving credit facility to substantially fund the equity appreciation rights plan (“EAR Plan”) payout (Note 17).

The interest rate applicable to the term loan and delayed draw term loan A facility as of December 31, 2017 was 3.32% and the interest rate applicable to the term loan as of December 31, 2016 was 2.27 %.

There were outstanding borrowings under the revolving credit facility of $10.1 million and $42.5 million as of December 31, 2017 and 2016, respectively. The weighted average interest rate applicable to the outstanding borrowings was 4.44% and 2.48 % as of December 31, 2017 and 2016, respectively.

A change of control is an event of default under the credit agreement which could result in the acceleration of all outstanding indebtedness and the termination of all commitments under the credit agreement and would allow the lenders under the credit agreement to enforce their rights with respect to the collateral granted. A change of control occurs if any person (other than certain permitted parties, including Fila Korea) becomes the beneficial owner of 35% or more of the outstanding common stock of the Company.  On September 22, 2017, Magnus entered into a loan agreement (the “New Magnus Loan Agreement”) with certain Korean financial institutions (the “New Magnus Lenders”) which provides for (i) three year term loans in an aggregate amount of Korean Won 399.2 billion (equivalent to approximately $373.7 million, using an exchange rate of $1.00 = Korean Won 1,068.27 as of December 31, 2017) (the “New Magnus Term Loans”) and (ii) a revolving credit loan of Korean Won 10.0 billion (equivalent to approximately $9.4 million, using an exchange rate of $1.00 = Korean Won 1,068.27 as of December 31, 2017) (the “New Magnus Revolving Loan” and, together with the New Magnus Term Loans, the “New Magnus Loans”). The New Magnus Loans are secured by a pledge on all of our common stock owned by Magnus, which consists of 39,345,151 shares (the “Magnus Shares”), or 52.6% of our outstanding common stock.  Under the New Magnus Loan Agreement, Magnus is required to maintain a specified Loan-to-Value ratio (“LTV Ratio”).  If the LTV Ratio exceeds 75%, Magnus will be in breach of the New Magnus Loan agreement. If Magnus does not cure the breach in 60 days, the lenders will have a right to accelerate the maturity of the New Magnus Loan.  If Magnus fails to pay the amount due on the New Magnus Loan at maturity or upon acceleration, the lenders can foreclose on the pledged shares of the Company’s common stock, which may result in the sale of up to 52.6% of the Company’s common stock. 

The credit agreement contains a number of covenants that, among other things, restrict the ability of the U.S. Borrower and its restricted subsidiaries to (subject to certain exceptions), incur, assume, or permit to exist additional indebtedness or guarantees; incur liens; make investments and loans; pay dividends, make payments, or redeem or repurchase capital stock or make prepayments, repurchases or redemptions of certain indebtedness; engage in mergers, liquidations, dissolutions, asset sales, and other dispositions (including sale leaseback transactions); amend or otherwise alter terms of certain indebtedness or certain other agreements; enter into agreements limiting subsidiary distributions or containing negative pledge clauses; engage in certain transactions with affiliates; alter the nature of the business that we conduct or change our fiscal year or accounting practices. Certain exceptions to these covenants are determined based on ratios that are calculated in part using the calculation of Adjusted EBITDA.The credit agreement covenants also restrict the ability of Acushnet Holdings Corp. to engage in certain mergers or consolidations or engage in any activities other than permitted activities. The Company’s credit agreement contains certain customary affirmative and restrictive covenants, including, among others, financial covenants based on the Company’s leverage and interest coverage ratios. The credit agreement includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations to be immediately due and payable. As of December 31, 2017, the Company was in compliance with all covenants under the credit agreement.

As of December 31, 2017, the Company had available borrowings under its revolving credit facility of $254.8 million after giving effect to $10.2 million of outstanding letters of credit.

Convertible Notes

Prior to the initial public offering, the Company had outstanding convertible notes with an aggregate principal amount of $362.5 million.  All outstanding convertible notes were converted into common stock in conjunction with the Company’s initial public offering (Note 2). Upon conversion, all accrued but unpaid interest on the principal of the convertible notes was paid to each holder of the convertible notes. The Company recorded interest expense related to the convertible notes of $22.6 million and $27.2 million during the year ended December 31, 2016 and 2015, respectively. 

Secured Floating Rate Notes

On July 28, 2016, outstanding borrowings under the secured floating rate notes of $375.0 million were repaid in full using the proceeds from the senior secured credit facility and the secured floating rate notes were terminated.

Senior Revolving and Term Loan Facilities

As of June 30, 2016, the Company had repaid all amounts outstanding under the senior revolving and term loan facilities and the facilities were terminated.

Other Short-Term Borrowings

The Company has certain unsecured facilities available through its subsidiary locations. As of December 31, 2017, the Company had available borrowings under its unsecured facilities of $53.8 million after giving effect to $10.3 million of outstanding borrowings. The weighted average interest rate applicable to the outstanding borrowings was 0.73%.  

Letters of Credit

As of December 31, 2017 and 2016, there were outstanding letters of credit totaling $14.3 million and $11.6 million, respectively, of which $11.2 million and $8.6 million was secured, respectively, related to agreements which provided a maximum commitment for letters of credit of $29.2 million and $24.0 million, respectively.

Payments of Debt Obligations due by Period

As of December 31, 2017, principal payments due on outstanding long-term debt obligations, excluding capital leases, were as follows:

(in thousands)
Year ending December 31,
2018	$	26,719
2019		35,625
2020		38,594
2021		345,625
2022		-
Thereafter		-
Total	$	446,563

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Derivative Financial Instruments

12 Months Ended

Dec. 31, 2017

Derivative Financial Instruments

Derivative Financial Instruments

10. Derivative Financial Instruments

Bonds with Common Stock Warrants

Prior to the exercise of the final annual call option by Fila Korea in July 2016, the Company had outstanding bonds with common stock warrants for the purchase of the Company’s common stock at an exercise price of $11.11 per share. The Company classified the warrants to purchase common stock as a liability on its consolidated balance sheet as the warrants were free‑standing financial instruments that could result in the issuance of a variable number of the Company’s common shares. The warrants were initially recorded at fair value on grant date, and were subsequently re‑measured to fair value at each reporting date (Note 11). Changes in the fair value of the common stock warrants were recognized as other (income) expense, net on the consolidated statement of operations (Note 14).

In July 2016 and 2015, Fila Korea exercised its annual call option to purchase common stock warrants held by the holders of the bonds and exercised such warrants at the exercise price of $11.11 per share, or $34.5 million in the aggregate in each year. The Company used the proceeds received from Fila Korea’s exercise of the common stock warrants to redeem the outstanding bonds payable.

Foreign Exchange Derivative Instruments

The Company principally uses financial instruments to reduce the impact of changes in foreign currency exchange rates. The principal derivative financial instruments the Company enters into are foreign exchange forward contracts. The Company does not enter into foreign exchange forward contracts for trading or speculative purposes.

Foreign exchange forward contracts are primarily used to hedge purchases denominated in select foreign currencies, thereby limiting currency risk that would otherwise result from changes in exchange rates. The periods of the foreign exchange forward contracts correspond to the periods of the forecasted transactions, which do not exceed 24 months subsequent to the latest balance sheet date. The primary foreign exchange forward contracts pertain to the U.S. dollar, the Japanese yen, the British pound sterling, the Canadian dollar, the Korean won and the Euro. The gross U.S. dollar equivalent notional amount outstanding of all foreign exchange forward contracts designated under hedge accounting as of December 31, 2017 and 2016 was $278.9 million and $371.2 million, respectively.

The counterparties to derivative contracts are major financial institutions. The credit risk of counterparties does not have a significant impact on the valuation of the Company’s derivative instruments.

The fair values of foreign exchange hedges on the consolidated balance sheets were as follows:

	Balance Sheet	December 31,		December 31,
(in thousands)	Location	2017		2016
Asset derivatives	Other current assets	$	4,675	$	11,357
	Other noncurrent assets		562		5,286
Liability derivatives	Other current liabilities		6,360		1,106
	Other noncurrent liabilities		276		32

The effect of foreign exchange hedges on accumulated other comprehensive income (loss) and the consolidated statements of operations was as follows:

	Gain (Loss) Recognized in
	Other Comprehensive Income (Loss)
	Year ended
	December 31,
(in thousands)	2017		2016		2015
Type of hedge
Cash flow	$	(15,558)	$	7,014	$	14,964
	$	(15,558)	$	7,014	$	14,964

	Gain (Loss) Recognized in
	Statement of Operations
	Year ended
	December 31,
(in thousands)	2017		2016		2015
Location of gain (loss) in statement of operations
Cost of goods sold	$	1,329	$	5,194	$	26,805
Selling, general and administrative expense		(2,732)		(917)		3,733
	$	(1,403)	$	4,277	$	30,538

Gains and losses on derivatives designated as cash flow hedges are reclassified from other comprehensive income (loss) to cost of goods sold at the time that the forecasted transaction impacts the income statement.Based on the current valuation, the Company expects to reclassify a net loss of $2.1 million from accumulated other comprehensive income (loss) into cost of goods sold during the next 12 months.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Measurements

Fair Value Measurements

11. Fair Value Measurements

Assets and liabilities measured at fair value on a recurring basis were as follows:

	Fair Value Measurements as of
	December 31, 2017 using:
(in thousands)	Level 1		Level 2		Level 3		Balance Sheet Location
Assets
Rabbi trust	$	10,637	$	-	$	-	Other current assets
Foreign exchange derivative instruments		-		4,675		-	Other current assets
Deferred compensation program assets		1,866		-		-	Other noncurrent assets
Foreign exchange derivative instruments		-		562		-	Other noncurrent assets
Total assets	$	12,503	$	5,237	$	-
Liabilities
Foreign exchange derivative instruments	$	-	$	6,360	$	-	Other current liabilities
Deferred compensation program liabilities		1,866		-		-	Other noncurrent liabilities
Foreign exchange derivative instruments		-		276		-	Other noncurrent liabilities
Total liabilities	$	1,866	$	6,636	$	-

	Fair Value Measurements as of
	December 31, 2016 using:
(in thousands)	Level 1		Level 2		Level 3		Balance Sheet Location
Assets
Rabbi trust	$	6,994	$	-	$	-	Other current assets
Foreign exchange derivative instruments		-		11,357		-	Other current assets
Rabbi trust		5,248		-		-	Other noncurrent assets
Deferred compensation program assets		1,846		-		-	Other noncurrent assets
Foreign exchange derivative instruments		-		5,286		-	Other noncurrent assets
Total assets	$	14,088	$	16,643	$	-
Liabilities
Foreign exchange derivative instruments	$	-	$	1,106	$	-	Other current liabilities
Deferred compensation program liabilities		1,846		-		-	Other noncurrent liabilities
Foreign exchange derivative instruments		-		32		-	Other noncurrent liabilities
Total liabilities	$	1,846	$	1,138	$	-

During the years ended December 31, 2017 and 2016, there were no transfers between Level 1,  Level 2 and Level 3.

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 can 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 forward exchange forward contracts primarily used to hedge currency fluctuations for transactions denominated in a foreign currency (Note 10). 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.

Prior to the exercise of the final tranche of common stock warrants in 2016, the Company categorized the related derivative liability as Level 3 as there were significant unobservable inputs used in the underlying valuations. The common stock warrants were valued using the contingent claims methodology. The change in the Level 3 fair value measurements was as follows:

	December 31,
(in thousands)	2016
Balance at beginning of year	$	22,884
Common stock warrant exercise		(28,996)
Total losses included in earnings		6,112
Balance at end of year	$	-

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Pension and Other Postretirement Benefits

12 Months Ended

Dec. 31, 2017

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

12. Pension and Other Postretirement Benefits

The Company has various pension and post-employment plans which provide for payment of retirement benefits, mainly commencing between the ages of 50 and 65, and for payment of certain disability benefits. After meeting certain qualifications, an employee acquires a vested right to future benefits. The benefits payable under the plans are generally determined on the basis of an employee's length of service and/or earnings. Employer contributions to the plans are made, as necessary, to ensure legal funding requirements are satisfied. The Company may make contributions in excess of the legal funding requirements.

On November 13, 2015, the Company amended the US pension plan and supplemental executive retirement plan (“SERP”) by closing the plans to newly-hired full-time employees who had not yet satisfied the one year service requirement as of January 1, 2016, freezing the accrual of additional benefits on participants who have not attained age 50 with at least 10 years of vesting service, or whose age plus vesting service is less than 70, and shifting benefits for participants who have continued to accrue benefits from the pension plan to the SERP once a cap of $150,000 has been reached. The plans were re-measured in accordance with ASC 715 resulting in a curtailment gain of $2.4 million during the year ended December 31, 2015.

The Company provides postretirement healthcare benefits to certain retirees. Many employees and retirees outside of the United States are covered by government sponsored healthcare programs.

The following tables present the change in benefit obligation, change in plan assets, and funded status for the Company's defined benefit and postretirement benefit plans for the years ended December 31, 2017 and 2016:

	Pension		Pension
	Benefits		Benefits		Postretirement
(in thousands)	(Underfunded)		(Overfunded)		Benefits
Change in projected benefit obligation ("PBO")
Benefit obligation at December 31, 2016	$	284,104	$	39,735	$	20,264
Service cost		9,217		-		955
Interest cost		10,783		1,049		713
Actuarial (gain) loss		34,557		(2,000)		(5,075)
Settlements		(20,663)		(5,172)		-
Participants’ contributions		-		-		355
Benefit payments		(2,719)		(635)		(1,160)
Foreign currency translation		1,435		2,659		-
Adjustment for movement from underfunded to overfunded		168		(168)		-
Projected benefit obligation at December 31, 2017		316,882		35,468		16,052
Accumulated benefit obligation at December 31, 2017		277,067		34,190		16,052
Change in plan assets
Fair value of plan assets at December 31, 2016		161,088		45,342		-
Return on plan assets		23,757		6,254		-
Employer contributions		21,280		1,697		805
Participants’ contributions		-		-		355
Settlements		(20,663)		(5,172)		-
Benefit payments		(2,719)		(635)		(1,160)
Adjustment for movement from underfunded to overfunded		194		(194)		-
Foreign currency translation		156		3,475		-
Fair value of plan assets at December 31, 2017		183,093		50,767		-
Funded status (fair value of plan assets less PBO)	$	(133,789)	$	15,299	$	(16,052)

	Pension		Pension
	Benefits		Benefits		Postretirement
(in thousands)	(Underfunded)		(Overfunded)		Benefits
Change in projected benefit obligation
Benefit obligation at December 31, 2015	$	271,462	$	38,287	$	20,079
Service cost		9,787		(24)		888
Interest cost		11,077		1,279		779
Actuarial (gain) loss		14,095		7,711		(572)
Settlements		(6,714)		-		-
Plan amendments		-		-		283
Participants’ contributions		-		-		921
Benefit payments		(15,515)		(796)		(2,114)
Foreign currency translation		122		(6,932)		-
Adjustment for movement from underfunded to overfunded		(210)		210		-
Projected benefit obligation at December 31, 2016		284,104		39,735		20,264
Accumulated benefit obligation at December 31, 2016		247,009		37,289		20,264
Change in plan assets
Fair value of plan assets at December 31, 2015		157,729		43,768		-
Return on plan assets		7,203		8,280		-
Employer contributions		18,335		2,012		1,193
Participants’ contributions		-		-		921
Settlements		(6,714)		-		-
Benefit payments		(15,515)		(796)		(2,114)
Foreign currency translation		50		(7,922)		-
Fair value of plan assets at December 31, 2016		161,088		45,342		-
Funded status (fair value of plan assets less PBO)	$	(123,016)	$	5,607	$	(20,264)

The amount of pension and postretirement assets and liabilities recognized on the consolidated balance sheets were as follows:

	Pension Benefits				Postretirement Benefits
(in thousands)	2017		2016		2017		2016
Other noncurrent assets	$	15,299	$	5,607	$	-	$	-
Accrued compensation and benefits		(18,933)		(7,149)		(748)		(784)
Accrued pension and postretirement benefits		(114,856)		(115,867)		(15,304)		(19,480)
Net amount recognized	$	(118,490)	$	(117,409)	$	(16,052)	$	(20,264)

The amounts in accumulated other comprehensive income (loss) on the consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost were as follows:

	Pension Benefits						Postretirement Benefits
	Year ended December 31,						Year ended December 31,
(in thousands)	2017		2016		2015		2017		2016		2015
Net actuarial (gain) loss at beginning of year	$	33,736	$	18,374	$	19,878	$	(8,055)	$	(8,840)	$	(7,270)
Current year actuarial (gain) loss		14,554		18,425		17,835		(5,075)		(573)		(2,228)
Amortization of actuarial (gain) loss		(804)		(485)		(1,152)		601		912		490
Curtailment impact		-		-		(19,146)		-		-		-
Settlement impact		(2,740)		(1,124)		-		-		-		-
Prior service cost		-		-		1,331		-		283		-
Amortization of prior service cost (credit)		(175)		(175)		(22)		137		163		168
Foreign currency translation		321		(1,279)		(350)		-		-		-
Net actuarial (gain) loss at end of year	$	44,892	$	33,736	$	18,374	$	(12,392)	$	(8,055)	$	(8,840)

The expected prior service cost (credit) that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year is a cost of $0.2 million for the pension plans and a credit of $0.1 million for the postretirement plans. The expected actuarial (gain) loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year is a loss of $2.1 million for the pension plans and a gain of $1.4 million for the postretirement plans.

Components of net periodic benefit cost were as follows:

	Pension Benefits						Postretirement Benefits
	Year ended December 31,
(in thousands)	2017		2016		2015		2017		2016		2015
Components of net periodic benefit cost
Service cost	$	9,217	$	9,763	$	15,683	$	955	$	888	$	1,060
Interest cost		11,832		12,356		12,338		713		779		787
Expected return on plan assets		(12,006)		(12,189)		(11,372)		-		-		-
Curtailment income		-		-		(2,421)		-		-		-
Settlement expense		2,740		1,148		-		-		-		-
Amortization of net (gain) loss		804		471		1,152		(601)		(912)		(490)
Amortization of prior service cost (credit)		175		175		22		(137)		(163)		(168)
Net periodic benefit cost	$	12,762	$	11,724	$	15,402	$	930	$	592	$	1,189

The weighted average assumptions used to determine benefit obligations at December 31, 2017 and 2016 were as follows:

	Pension Benefits		Postretirement Benefits
	2017	2016	2017	2016
Discount rate	3.62%	4.17%	3.61%	4.08%
Rate of compensation increase	4.01%	4.02%	N/A	N/A

The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, 2017, 2016 and 2015 were as follows:

	Pension Benefits			Postretirement Benefits
	2017	2016	2015	2017	2016	2015
Discount rate	4.17%	4.16%	3.92%	4.08%	4.30%	3.90%
Expected long-term rate of return on plan assets	5.77%	6.23%	6.15%	N/A	N/A	N/A
Rate of compensation increase	4.02%	4.07%	4.05%	N/A	N/A	N/A

The assumed healthcare cost trend rates used to determine benefit obligations and net periodic benefit cost as of and for the years ended December 31 2017, 2016 and 2015 were as follows:

	Postretirement Benefits
	Medical and Prescription Drug
	2017	2016	2015
Healthcare cost trend rate assumed for next year	5.5%/8.5%	5.50%/9.00%	5.75/10.00%
Rate that the cost trend rate is assumed to decline (the ultimate trend rate)	4.50%	4.50%	4.50%
Year that the rate reaches the ultimate trend rate	2024	2024	2024

Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plans. A one-percentage-point change in assumed healthcare cost trend rates would have the following effects:

	2017				2016
	One-Percentage		One-Percentage		One-Percentage		One-Percentage
(in thousands)	Point Increase		Point Decrease		Point Increase		Point Decrease
Effect on total of service and interest cost	$	73	$	(65)	$	104	$	(91)
Effect on postretirement benefit obligation		665		(598)		894		(796)

Plan Assets

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2017 were as follows:

	Pension Benefits – Plan Assets
			Quoted Prices in		Significant		Significant
			Active Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Asset category
Individual securities
Fixed income	$	1,794	$	-	$	1,794	$	-
Commingled funds
Measured at net asset value		232,066		-		-		-
	$	233,860	$	-	$	1,794	$	-

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2016 were as follows:

	Pension Benefits – Plan Assets
			Quoted Prices in		Significant		Significant
			Active Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Asset category
Individual securities
Fixed income	$	1,628	$	-	$	1,628	$	-
Commingled funds
Measured at net asset value		204,801		-		-		-
	$	206,429	$	-	$	1,628	$	-

Pension assets include fixed income securities and commingled funds. Fixed income securities are valued at daily closing prices or institutional mid-evaluation prices provided by independent industry-recognized pricing sources. Commingled funds are not traded in active markets with quoted prices and as a result, are valued using the net asset values provided by the administrator of the fund. The investments underlying the net asset values are based on quoted prices traded in active markets. In accordance with ASU 2015-07, “Fair Value Measurement: Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)”, the Company has elected the practical expedient to exclude assets measured at net asset value from the fair value hierarchy.

The Company's investment strategy is to optimize investment returns through a diversified portfolio of investments, taking into consideration underlying plan liabilities and asset volatility. Asset allocations are based on the underlying liability structure and local regulations. All retirement asset allocations are reviewed periodically to ensure the allocation meets the needs of the liability structure.

Master trusts were established to hold the assets of the Company's U.S. defined benefit plans. During the years ended December 31, 2017 and 2016, the U.S. defined benefit plan asset allocation of these trusts targeted a return-seeking investment allocation of 64% to 76% and a liability-hedging investment allocation of 24% to 36%. Return-seeking investments include equities, real estate, high yield bonds and other instruments. Liability-hedging investments include assets such as corporate and government fixed income securities.

The Company's future expected blended long-term rate of return on plan assets of 5.77% is determined based on long-term historical performance of plan assets, current asset allocation, and projected long-term rates of return.

Estimated Contributions

The Company expects to make pension contributions of approximately $40.9 million during 2018 based on current assumptions as of December 31, 2017.  

Estimated Future Retirement Benefit Payments

The following retirement benefit payments, which reflect expected future service, are expected to be paid as follows:

	Pension		Postretirement
(in thousands)	Benefits		Benefits
Year ending December 31,
2018	$	36,506	$	748
2019		20,544		828
2020		22,103		943
2021		23,751		1,078
2022		24,511		1,214
Thereafter		138,204		7,096
	$	265,619	$	11,907

The estimated future retirement benefit payments noted above are estimates and could change significantly based on differences between actuarial assumptions and actual events and decisions related to lump sum distribution options that are available to participants in certain plans.

International Plans

Pension coverage for employees of the Company's international subsidiaries is provided, to the extent deemed appropriate, through separate defined benefit plans. The international pension plans are included in the tables above. As of December 31, 2017 and 2016, the defined benefit plans had total projected benefit obligations of $53.6 million and $54.4 million, respectively, and fair values of plan assets of $53.6 million and $47.6 million, respectively. The majority of the plan assets are invested in equity securities. The pension expense related to these plans was $0.9 million, $1.0 million and $0.9 million for the years ended December 31, 2017,  2016 and 2015, respectively. The expected actuarial loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year is less than $0.1 million.

Defined Contribution Plans

The Company sponsors a number of defined contribution plans. Contributions are determined under various formulas. Cash contributions related to these plans amounted to $13.8 million, $13.0 million and $9.4 million for the years ended December 31, 2017,  2016 and 2015, respectively.

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Income Taxes

12 Months Ended

Dec. 31, 2017

Income Taxes

Income Taxes

13. Income Taxes

On December 22, 2017, the U.S. enacted tax reform legislation, commonly referred to as the U.S. Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”).  The 2017 Tax Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on certain foreign sourced earnings.  On December 22, 2017, the Securities and Exchange Commission issued guidance under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) directing taxpayers to consider the impact of the U.S. legislation as “provisional” when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law.

At December 31, 2017, the Company has not finalized the accounting for the Federal and State tax effects of enactment of the Act; however, as described below, the Company has made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax. The Company recognized a provisional amount of $14.0 million as a reasonable estimate of the impact of the provisions of the 2017 Tax Act, which is included as a component of income tax expense from continuing operations. In all cases, the Company will continue to make and refine its calculations as additional analysis is completed. In addition, the estimates may also be affected as the Company gains a more thorough understanding of the new tax law as incremental guidance becomes available.

Provisional amounts

Deferred tax assets and liabilities: The Company remeasured its U.S. deferred tax assets and liabilities based upon the rates at which they are expected to reverse in the future, which is generally 21%. However, the Company is still analyzing certain aspects of the 2017 Tax Act and refining its calculations, which could potentially affect the measurement of these balances or potentially give rise to changes in deferred tax amounts.  As the Company continues to analyze the 2017 Tax Act and refine its calculations it could give rise to changes in the assessment of the realizability of certain deferred tax assets, including foreign tax credit carryforwards. The provisional tax expense amount recorded related to the remeasurement of the Company’s deferred tax balances was $10.2 million. 

Foreign tax effects: The one-time transition tax is based on the Company’s total unremitted post-1986 earnings and profits (E&P). The Company recorded a provisional increase to income tax expense of $8.6 million for the one-time transition tax liability for its foreign subsidiaries.  This increase included tax on foreign income of $23.8 million, partially offset by a related benefit of foreign tax credits of $15.2 million.  As the Company has sufficient existing tax attributes available to fully offset the transition tax liability there will be no cash tax impact to the Company. The Company has not yet completed its calculation of the total post-1986 E&P for its foreign subsidiaries or the tax pools of the foreign subsidiaries. Further, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when the Company finalizes the calculation of post-1986 foreign E&P and finalizes the amounts held in cash or other specified assets. 

The Company has determined that its undistributed earnings for most of its foreign subsidiaries are not permanently reinvested.  The change in the tax law impacted the Company’s deferred taxes provided on unremitted earnings.  The Company had previously recorded a $4.8 million deferred tax liability on those unremitted foreign earnings, which were taxed in the current year as part of the transition tax.  The Company does not believe that any additional outside basis differences exist as of December 31, 2017, however, determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax (i.e., basis difference in excess of that subject to the one-time transition tax) is not currently estimable.  The Company has provided for withholding taxes on all unremitted earnings, as required.

 The components of income before income taxes were as follows:

	Year ended December 31,
(in thousands)	2017		2016		2015
Domestic operations	$	61,158	$	(3,995)	$	(48,544)
Foreign operations		90,518		93,217		80,694
Income before income taxes	$	151,676	$	89,222	$	32,150

Amounts reflected for 2016 and 2015 have been reclassified for consistency of presentation with 2017 amounts.

The following table represents a reconciliation of income taxes at the 35% federal statutory income tax rate to income tax expense as reported:

	Year ended December 31,
(in thousands)	2017			2016			2015
Income tax expense computed at federal statutory income tax rate	$	53,086		$	31,229		$	11,252
Foreign taxes, net of credits		(15,545)			(1,804)			418
Transition tax (net of federal tax credits generated)		8,593			-			-
US rate change related to the 2017 Tax Act		10,198			-			-
Net adjustments for uncertain tax positions		508			706			4,731
State and local taxes		2,031			(525)			(1,108)
Equity appreciation rights		(765)			372			693
Transaction costs		189			3,078			414
Indemnified taxes		(115)			1,594			(1,106)
Fair value adjustment for common stock warrants		—			3,029			10,853
Valuation allowance		(219)			955			7,872
Deferred charge		(1,295)			1,009			807
Tax credits		(3,240)			(704)			(7,003)
Miscellaneous other, net		1,630			768			171
Income tax expense as reported	$	55,056		$	39,707		$	27,994
Effective income tax rate		36.3	%		44.5	%		87.1	%

The Company's unrecognized tax benefits represent tax positions for which reserves have been established. The following table represents a reconciliation of the activity related to the unrecognized tax benefits, excluding accrued interest and penalties:

(in thousands)	2017		2016		2015
Unrecognized tax benefits at beginning of year	$	11,347	$	13,120	$	8,845
Gross additions - prior year tax positions		-		1,960		3,045
Gross additions - current year tax positions		1,159		747		1,605
Gross reductions - prior year tax positions		(348)		(4,457)		(333)
Gross reductions - Acquired tax positions settled with tax authorities		(1,241)		-		-
Impact of change in foreign exchange rates		132		(23)		(42)
Unrecognized tax benefits at end of year	$	11,049	$	11,347	$	13,120

As of December 31, 2017,  2016 and 2015, the unrecognized tax benefits of $11.0 million, $11.3 million and $13.1 million, respectively, would affect the Company's future effective tax rate if recognized. The Company does not anticipate a material change in unrecognized tax benefits within the next 12 months.

As of December 31, 2017,  2016 and 2015, the Company had unrecognized tax benefits included in the amounts above of $4.9 million, $5.9 million and $4.2 million, respectively, related to periods prior to the Company's acquisition of Acushnet Company and as such, are indemnified by Beam.

As of December 31, 2017,  2016 and 2015, the Company recognized a liability of $2.7 million, $2.3 million and $1.9 million, respectively for interest and penalties, of which $2.7 million, $1.8 million and $1.6 million is indemnified by Beam.

Prior to the Company's acquisition of Acushnet Company, Acushnet Company or its subsidiaries filed certain combined tax returns with Beam. Those and other subsidiaries' income tax returns are periodically examined by various tax authorities. Beam is responsible for managing United States tax audits related to periods prior to July 29, 2011. Acushnet Company is obligated to support these audits and is responsible for managing all non-U.S. audits.

The Company and certain subsidiaries have tax years that remain open and are subject to examination by tax authorities in the following major taxing jurisdictions: United States for years after July 29, 2011, Canada for years after 2012, Japan for years after 2011, Korea for years after 2016, and the United Kingdom for years after 2015. The Company files income tax returns on a combined, unitary, or stand-alone basis in multiple state and local jurisdictions, which generally have statute of limitations from three to four years. Various states and local income tax returns are currently in the process of examination. These examinations are unlikely to result in any significant changes to the amounts of unrecognized tax benefits on the consolidated balance sheet as of December 31, 2017.  

The Company's income tax expense includes tax expense of $0.2 million, $2.2 million and $3.0 million for the years ended December 31, 2017, 2016 and 2015, respectively, related to the tax obligations indemnified by Beam. There is an offsetting amount included in other (income) expense, net for the related adjustment to the Beam indemnification asset, resulting in no effect on net income.

Income tax expense was as follows:

	Year ended December 31,
(in thousands)	2017		2016		2015
Current expense (benefit)
United States	$	(906)	$	3,702	$	5,455
Foreign		28,109		28,156		20,351
Current income tax expense (benefit)		27,203		31,858		25,806
Deferred expense (benefit)
United States		27,770		9,489		(152)
Foreign		83		(1,640)		2,340
Deferred income tax expense (benefit)		27,853		7,849		2,188
Total income tax expense	$	55,056	$	39,707	$	27,994

The components of net deferred tax assets (liabilities) were as follows:

	December 31,
(in thousands)	2017		2016
Deferred tax assets
Compensation and benefits	$	14,060	$	22,053
Share-based compensation		5,085		5,474
Equity appreciation rights		-		57,146
Pension and other postretirement benefits		30,564		45,926
Inventories		10,843		9,120
Accounts receivable		2,016		2,942
Customer sales incentives		2,255		3,254
Transaction costs		1,804		3,157
Other reserves		3,255		5,764
Interest		562		2,260
Miscellaneous		1,224		1,076
Foreign exchange derivative instruments		730		-
Net operating loss and other tax carryforwards		103,455		55,936
Gross deferred tax assets		175,853		214,108
Valuation allowance		(25,887)		(21,726)
Total deferred tax assets		149,966		192,382
Deferred tax liabilities
Property, plant and equipment		(11,325)		(17,496)
Identifiable intangible assets		(36,687)		(46,701)
Foreign exchange derivative instruments		-		(4,076)
Miscellaneous		(954)		(1,145)
Total deferred tax liabilities		(48,966)		(69,418)
Net deferred tax asset	$	101,000	$	122,964

Under U.S. tax law and regulations, certain changes in the ownership of the Company’s shares can limit the annual utilization of tax attributes (tax loss and tax credit carryforwards) that were generated prior to such ownership changes. The annual limitation could affect the realizability of the Company’s deferred tax assets recorded in the financial statement for its tax credit carryforwards because the carryforward periods have a finite duration. The 2016 Initial Public Offering, and associated share transfers, resulted in significant changes in the composition of the ownership of the Company’s shares. Based on its analysis of the change of ownership tax rules in conjunction with the estimated amount and source of its future earnings and related tax profile, the Company believes its existing tax attributes will be utilized prior to their expiration.

As of December 31, 2017 and 2016, the Company had state net operating loss (“NOL”) carryforwards of $192.0 million and $117.2 million, respectively. These NOL carryforwards expire between 2018 and 2035. As of December 31, 2017 the Company had US Federal net operating loss (“NOL”) carryforwards of $26.4 million which will expire in 2037. As of December 31, 2017 and 2016, the Company had foreign tax credit carryforwards of $72.8 million and $46.0 million, respectively. These foreign tax credits will begin to expire in 2022.

Changes in the valuation allowance for deferred tax assets were as follows:

	Year ended December 31,
(in thousands)	2017		2016		2015
Valuation allowance at beginning of year	$	21,726	$	20,771	$	13,850
Increases (decreases) recorded to income tax provision		4,161		955		6,921
Valuation allowance at end of year	$	25,887	$	21,726	$	20,771

The changes in the valuation allowance were related to the increase in the U.S. state deferred tax assets and deferred tax assets in the Company’s Hong Kong subsidiary that the Company has determined are not more-likely-than-not realizable. In assessing the realizability of these assets, the Company considered numerous factors including historical profitability, the character and estimated future taxable income, prudent and feasible tax planning strategies, and the industry in which it operates. The utilization of the Company's net U.S. state and Hong Kong deferred tax assets is dependent on future taxable earnings, which cannot be projected with certainty at this time.

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Interest Expense and Other (Income) Expense, Net

12 Months Ended

Dec. 31, 2017

Interest Expense and Other (Income) Expense, Net

Interest Expense and Other (Income) Expense, Net

14. Interest Expense and Other (Income) Expense, Net

The components of interest expense, net were as follows:

	Year ended December 31,
(in thousands)	2017		2016		2015
Interest expense - related party	$	—	$	28,146	$	35,420
Interest expense - third party		16,907		23,113		26,567
Interest income - third party		(1,198)		(1,351)		(1,693)
Total interest expense, net	$	15,709	$	49,908	$	60,294

The components of other (income) expense, net were as follows:

	Year ended December 31,
(in thousands)	2017		2016		2015
Loss on fair value of common stock warrants	$	—	$	6,112	$	28,364
Indemnification (gains) losses		177		(2,174)		(3,007)
Other gains		(1,254)		(2,232)		(218)
Total other (income) expense, net	$	(1,077)	$	1,706	$	25,139

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Redeemable Convertible Preferred Stock

12 Months Ended

Dec. 31, 2017

Redeemable Convertible Preferred Stock [Abstract]

Redeemable Convertible Preferred Stock

15. Redeemable Convertible Preferred Stock

Prior to the initial public offering, the Company had outstanding 1,838,027 shares of $0.001 par value Series A preferred stock. Given that certain redemption features of the Series A preferred stock were not solely within the control of the Company, the Series A preferred stock was classified outside of stockholders' equity. All outstanding Series A preferred stock were converted into common stock in conjunction with the Company’s initial public offering (Note 2).Upon conversion, all accrued but unpaid dividends on the shares of the Series A preferred stock were paid to each holder of the shares of the Series A preferred stock. The Company declared and paid dividends to the holders of the Series A preferred stock of $17.3 million and $13.7 million during the years ended December 31, 2016 and 2015, respectively.Shares of Series A preferred stock that are redeemed or converted were canceled and retired and cannot be reissued by the Company.

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Common Stock

12 Months Ended

Dec. 31, 2017

Common Stock.

Common Stock

16. Common Stock

As of December 31, 2017 and 2016, the Company's certificate of incorporation, as amended and restated, authorized the Company to issue 500,000,000 shares of $0.001 par value common stock. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company's shareholders. Common shareholders are entitled to receive dividends whenever funds are legally available and when declared by the board of directors, subject to the prior rights of holders of all classes of stock outstanding.

The Company declared dividends per share during the periods presented as follows:

	Dividends per Share		Amounts (in thousands)
2017:
Fourth Quarter	$	0.12	$	9,098
Third Quarter		0.12		9,146
Second Quarter		0.12		9,149
First Quarter		0.12		9,152
Total dividends declared	$	0.48	$	36,545

During the first quarter of 2018, the board of directors declared a dividend of $0.13 per share to shareholders on record as of March 19, 2018 and payable on March 29, 2018.  

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Equity Incentive Plans

12 Months Ended

Dec. 31, 2017

Equity Incentive Plans

Equity Incentive Plans

17. Equity Incentive Plans

Restricted Stock and Performance Stock Units

On January 22, 2016, the Company’s board of directors adopted the Acushnet Holdings Corp. 2015

Omnibus Incentive Plan (“2015 Plan”) pursuant to which the Company may grant stock options, stock appreciation rights, restricted shares of common stock, RSUs, performance stock units (“PSUs”) and other share-based and cash-based awards to members of the board of directors, officers, employees, consultants and advisors of the Company. The 2015 Plan is administered by the compensation committee (the “Administrator”). The Administrator has the authority to establish the terms and conditions of any award issued or granted under the 2015 Plan. Each share issued with respect to RSUs and PSUs granted under the 2015 Plan reduces the number of shares available for grant. RSUs and PSUs forfeited and shares withheld to satisfy tax withholding obligations increase the number of shares available for grant. All RSUs and PSUs granted under the 2015 Plan have dividend equivalent rights (“DERs”), which entitle holders of RSUs and PSUs to the same dividend value per share as holders of 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 vest. As of December 31, 2017, there were 7,804,279 remaining shares of common stock reserved for issuance under the 2015 Plan of which 4,557,513 remain available for future grants.

A summary of the Company’s RSUs and PSUs as of December 31, 2017 and 2016 and changes during the years then ended is presented below: 

			Weighted-
	Number		Average
	of		Fair
	RSUs and PSUs		Value
Outstanding at December 31, 2015		—	$	—
Granted		2,459,166		20.40
Outstanding at December 31, 2016		2,459,166	$	20.40
Granted		238,196		18.82
Vested		(437,188)		20.33
Forfeited		(199,320)		20.45
Outstanding at December 31,  2017		2,060,854	$	20.23

During 2017, RSUs settled resulting in the issuance of 437,188 shares of common stock, of which 51,467 shares of common stock were delivered to the Company as payment by employees in lieu of cash to satisfy tax withholding obligations. As of December 31, 2017 no PSUs have vested. The aggregate fair value of RSUs vesting during the year ended December 31, 2017 was $7.7 million.

The Company’s board of directors in accordance with the 2015 Plan have granted RSUs and PSUs to certain key members of management. RSUs vest in accordance with the terms of the grant subject to the employee’s continued employment with the Company.  The PSUs cliff‑vest on December 31, 2018, subject to the employee’s continued employment with the Company and the Company’s level of achievement of the applicable cumulative Adjusted EBITDA performance metrics (as defined in the applicable award agreements) measured over the three-year performance period. Each PSU reflects the right to receive between 0% and 200% of the target number of shares based on the actual three-year cumulative Adjusted EBITDA. The determination of the target value gave consideration to executive performance, potential future contributions and peer group analysis.

The Company’s board of directors in accordance with the 2015 Plan have approved grants of RSUs to members of the board of directors. The remaining grants vest on the earlier of June 12, 2018 or the next annual stockholders’ meeting, subject to continued service on the board of directors through the vesting date.  

In September of 2017, the Company announced its Chief Operating Officer (“COO”) would succeed the current President and Chief Executive Officer effective January 1, 2018, and in conjunction with this succession, the current COO received an equity grant.  The equity grant has a grant date fair value of $3.0 million, which will vest one third on each of the first three anniversaries of the grant date. The expense associated with this equity grant is being recorded over the vesting period commencing on the date the grant was announced. Until the equity grant is awarded and the terms of the equity grant are known, the related liability has been recorded to other non-current liabilities.

The compensation expense recorded for the year ended December 31, 2017 related to the PSUs was based on the Company’s best estimate of the three-year cumulative Adjusted EBITDA forecast as of December 31, 2017. The Company reassesses the estimate of the three‑year cumulative Adjusted EBITDA forecast at the end of each reporting period. The Company recorded compensation expense for the RSUs and PSUs of $9.3 million and $6.0 million, respectively, during the year ended December 31, 2017. The Company recorded compensation expense for the RSUs and PSUs of $8.4 million and $6.1 million, respectively, during the year ended December 31, 2016.

The remaining unrecognized compensation expense related to non‑vested RSUs and non‑vested PSUs granted was $11.8 million and $6.1 million, respectively, as of December 31, 2017 and is expected to be recognized over the related weighted average period of 1.4 years.

Equity Appreciation Rights

Effective January 1, 2012, the Company's board of directors adopted the equity appreciation rights plan (“EAR Plan”) in order to compensate certain key employees. During the first quarter of 2017, the Company’s outstanding equity appreciation rights (“EAR”) liability was settled in full by a cash payment to the participants. The Company’s liability related to the EAR Plan was $151.5 million as of December 31, 2016 and was recorded within accrued compensation and benefits on the consolidated balance sheet.

Prior to settlement, the EAR awards were re-measured using the intrinsic value method at each reporting period based on a projection of the Company's future common stock equivalent value. The common stock equivalent value was based on an estimate of the Company's EBITDA multiplied by a defined multiple, and divided by the expected number of common shares outstanding. The intrinsic value was the calculated common stock equivalent value per share compared to the per share exercise price. Effective October 17, 2014, the Company amended the EAR Plan such that (i) payments for vested awards resulting from a qualified termination of the award recipient are generally determined based on the Company's EBITDA for the fiscal year prior to such termination and (ii) payments for vested awards resulting from an expiration of the award are determined based on the greater of the Company's EBITDA for the year ended December 31, 2015, the Company's EBITDA for the year ending December 31, 2016, or the value of the Company's publicly-traded common stock for the three trading days following the initial public offering.

The following table summarizes the Company's EAR activity since December 31, 2015:  

			Weighted-		Weighted-
	Number		Average		Average		Aggregate
	of		Exercise		Remaining		Intrinsic
(in thousands, except share and per share amounts)	Awards		Price		Contractual Term		Value
Outstanding at December 31, 2015		9,180,000	$	11.40		1 year	$	171,712
Settled		(1,566,000)		11.12				—
Outstanding at December 31, 2016		7,614,000		19.90				151,511
Settled		(7,614,000)		(19.90)				—
Outstanding at December 31,  2017		—		—				—

For the years ended December 31, 2016 and 2015, the Company recorded compensation expense of $6.0 million and $45.8 million, respectively, related to outstanding EARs.

Compensation Expense

The allocation of compensation expense related to equity incentive plans in the consolidated statement of operations was as follows:

	Year ended December 31,
(in thousands)	2017		2016		2015
Cost of goods sold	$	408	$	434	$	670
Selling, general and administrative expense		13,687		18,622		48,377
Research and development		1,190		1,485		2,556
Total compensation expense before income tax		15,285		20,541		51,603
Income tax benefit		3,158		6,481		17,821
Total compensation expense, net of tax	$	12,127	$	14,060	$	33,782

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Accumulated Other Comprehensive Income (Loss), Net of Tax

12 Months Ended

Dec. 31, 2017

Accumulated Other Comprehensive Income (Loss), Net of Tax

Accumulated Other Comprehensive Income (Loss), Net of Tax

18. Accumulated Other Comprehensive Income (Loss), Net of Tax

Accumulated other comprehensive income (loss), net of tax consists of foreign currency translation adjustments, unrealized gains and losses from foreign exchange derivative instruments designated as cash flow hedges (Note 10), unrealized gains and losses from available‑for‑sale securities and pension and other postretirement adjustments (Note 12).

The components of and changes in accumulated other comprehensive income (loss), net of tax, were as follows:

	Foreign		Gains (Losses) on		Gains (Losses)		Pension and		Accumulated
	Currency		Foreign Exchange		on Available-		Other		Other
	Translation		Derivative		for-Sale		Postretirement		Comprehensive
(in thousands)	Adjustments		Instruments		Securities		Adjustments		Loss
Balances at December 31, 2015	$	(70,019)	$	9,166	$	1,504	$	(7,885)	$	(67,234)
Other comprehensive income (loss) before reclassifications		(14,656)		7,014		51		(16,781)		(24,372)
Amounts reclassified from accumulated other comprehensive loss		-		(5,194)		-		709		(4,485)
Tax benefit (expense)		-		(451)		(19)		5,727		5,257
Balances at December 31, 2016	$	(84,675)	$	10,535	$	1,536	$	(18,230)	$	(90,834)
Other comprehensive income (loss) before reclassifications		26,964		(15,558)		150		(9,870)		1,686
Amounts reclassified from accumulated other comprehensive loss		-		(1,329)		-		2,981		1,652
Tax benefit		-		4,072		35		1,698		5,805
Balances at December 31, 2017	$	(57,711)	$	(2,280)	$	1,721	$	(23,421)	$	(81,691)

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Net Income per Common Share

12 Months Ended

Dec. 31, 2017

Net Income per Common Share

Net Income per Common Share

19. Net Income per Common Share

The following is a computation of basic and diluted net income per common share attributable to Acushnet Holdings Corp.:

	Year ended
	December 31,
(in thousands, except share and per share amounts)	2017		2016		2015
Net income (loss) attributable to Acushnet Holdings Corp.	$	92,114	$	45,012	$	(966)
Less: dividends earned by preferred shareholders		-		(11,576)		(13,785)
Less: allocation of undistributed earnings to preferred shareholders		-		(10,247)		-
Net income (loss) attributable to common stockholders - basic		92,114		23,189		(14,751)
Adjustments to net income (loss) for dilutive securities		-		16,475		-
Net income (loss) attributable to common stockholders - diluted	$	92,114	$	39,664	$	(14,751)
Weighted average number of common shares:
Basic		74,399,836		31,247,643		19,939,293
Diluted		74,590,999		64,323,742		19,939,293
Net income (loss) per common share attributable to Acushnet Holdings Corp.:
Basic	$	1.24	$	0.74	$	(0.74)
Diluted	$	1.23	$	0.62	$	(0.74)

For the year ended December 31, 2017, net income per common share attributable to Acushnet Holdings Corp. was calculated under the treasury stock method. Net income per common share attributable to Acushnet Holdings Corp. for the years ended December 31, 2016 and 2015 was calculated under the two-class method.

The Company’s potential dilutive securities for the year ended December 31, 2017 include RSUs and PSUs. PSUs vest based upon achievement of performance targets and are excluded from the diluted shares outstanding unless the performance targets have been met as of the end of the applicable reporting period regardless of whether such performance targets are probable of achievement. For the year ended December 31, 2016 the Company’s potential dilutive securities include RSUs, PSUs, Series A preferred stock, warrants to purchase common stock and convertible notes. For the year ended December 31, 2015 the Company’s potential dilutive securities include Series A preferred stock, stock options, warrants to purchase common stock and convertible notes.

The following securities have been excluded from the calculation of diluted weighted‑average common shares outstanding as their impact was determined to be anti‑dilutive:

	Year ended
	December 31,
	2017		2016		2015
Series A preferred stock		-		13,807,486		16,542,243
Stock options		-		-		1,089
Warrants to purchase common stock		-		1,807,171		4,891,887
Convertible notes		-		-		32,624,820
RSUs		360,659		-		-

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Segment Information

12 Months Ended

Dec. 31, 2017

Segment Information

Segment Information

20. Segment Information

The Company’s operating segments are based on how the Chief Operating Decision Maker (“CODM”) makes decisions about assessing performance and allocating resources. The Company has four reportable segments that are organized on the basis of product categories. These segments include Titleist golf balls, Titleist golf clubs, Titleist golf gear and FootJoy golf wear.

The CODM primarily evaluates performance using segment operating income. Segment operating income includes directly attributable expenses and certain shared costs of corporate administration that are allocated to the reportable segments, but excludes interest expense, net; EAR expense; losses on the fair value of common stock warrants and other non‑operating gains and losses as the Company does not allocate these to the reportable segments. The CODM does not evaluate a measure of assets when assessing performance.

Results shown for the years ended December 31, 2017, 2016 and 2015 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:

(in thousands)	Year ended December 31,
	2017		2016		2015
Net sales
Titleist golf balls	$	512,041	$	513,899	$	535,465
Titleist golf clubs		397,987		430,966		388,304
Titleist golf gear		142,911		136,208		129,408
FootJoy golf wear		437,455		433,061		418,852
Other		69,864		58,141		30,929
Total net sales	$	1,560,258	$	1,572,275	$	1,502,958
Segment operating income
Titleist golf balls	$	76,870	$	76,236	$	92,507
Titleist golf clubs		31,031		50,500		33,593
Titleist golf gear		16,584		12,119		12,170
FootJoy golf wear		26,380		18,979		26,056
Other		14,863		7,299		4,056
Total segment operating income		165,728		165,133		168,382
Reconciling items:
Interest expense, net		(15,709)		(49,908)		(60,294)
EAR expense		-		(6,047)		(45,814)
Loss on fair value of common stock warrants		-		(6,112)		(28,364)
Transaction fees		(686)		(16,817)		(2,141)
Other		2,343		2,973		381
Total income before income tax	$	151,676	$	89,222	$	32,150
Depreciation and amortization
Titleist golf balls	$	25,545	$	26,104	$	26,962
Titleist golf clubs		7,233		7,021		7,060
Titleist golf gear		1,425		1,250		1,368
FootJoy golf wear		6,058		5,759		5,540
Other		610		700		772
Total depreciation and amortization	$	40,871	$	40,834	$	41,702

Information as to the Company’s operations in different geographical areas is presented below. Net sales are categorized based on the location in which the sale originates.

	Year ended December 31,
(in thousands)	2017		2016		2015
Net sales
United States	$	789,879	$	804,516	$	805,470
EMEA (1)		205,200		210,088		201,106
Japan		201,264		219,021		182,163
Korea		200,394		175,956		144,956
Rest of world		163,521		162,694		169,263
Total net sales	$	1,560,258	$	1,572,275	$	1,502,958

(1) Europe, the Middle East and Africa (“EMEA”)

Long-lived assets (property, plant and equipment) are categorized based on their location of domicile.

	Year ended December 31,
(in thousands)	2017		2016
Long-lived assets
United States	$	148,678	$	157,884
EMEA		9,669		8,619
Japan		770		628
Korea		3,782		1,811
Rest of world (2)		66,023		70,806
Total long-lived assets	$	228,922	$	239,748

(2) Includes manufacturing facilities in Thailand with long lived assets of $53.8 million and $57.8 million as of December 31, 2017 and 2016, respectively.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies

Commitments and Contingencies

21. Commitments and Contingencies

Purchase Obligations

During the normal course of its business, the Company enters into agreements to purchase goods and services, including purchase commitments for production materials, finished goods inventory, capital expenditures and endorsement arrangements with professional golfers. The reported amounts exclude those liabilities included in accounts payable or accrued liabilities on the consolidated balance sheet as of December 31, 2017.

Purchase obligations by the Company as of December 31, 2017 were as follows:

	Payments Due by Period
(in thousands)	2018		2019		2020		2021		2022		Thereafter
Purchase obligations	$	141,278	$	10,188	$	3,737	$	405	$	2	$	—

Lease Commitments

The Company leases certain warehouses, distribution and office facilities, vehicles and office equipment under operating leases.

The Company has an operating lease for certain vehicles that provides for a residual value guarantee. The lease has a noncancelable lease term of one year and may be renewed annually over the subsequent five years. The Company has the option to terminate the lease at the annual renewal date. Termination of the lease results in the sale of the vehicles and the determination of the residual value. The residual value is calculated by comparing the net proceeds of the vehicles sold to the depreciated value at the end of the renewal period. The Company is not responsible for any deficiency resulting from the net proceeds being less than 20% of the original cost in the first year and 20% of the depreciated value for all subsequent years. The Company believes that this guarantee will not have a significant impact on the consolidated financial statements.

Future minimum rental payments under noncancelable operating leases as of December 31, 2017 were as follows:

(in thousands)
Year ending December 31,
2018	$	12,119
2019		10,286
2020		8,447
2021		6,247
2022		4,228
Thereafter		14,418
Total minimum rental payments	$	55,745

The Company leases certain warehouses, distribution and office facilities, vehicles and office equipment under operating leases. Most lease arrangements provide the Company with the option to renew leases at defined terms. The future operating lease obligations would change if the Company were to exercise these options or if it were to enter into additional operating leases.

Total rental expense for all operating leases amounted to $16.3 million, $16.5 million and $15.8 million for the years ended December 31, 2017,  2016 and 2015, respectively.

Contingencies

In connection with the Company’s acquisition of Acushnet Company, Beam indemnified the Company for certain tax related obligations that relate to periods during which Fortune Brands, Inc. owned Acushnet Company. As of December 31, 2017, the Company’s estimate of its receivable for these indemnifications is $8.7 million, which is recorded in other noncurrent assets on the consolidated balance sheet.

Litigation

Beam

A dispute recently concluded between Acushnet Company and Beam with respect to approximately $16.6 million of value-added tax (“VAT”) trade receivables. These receivables were reflected on Acushnet Company’s consolidated balance sheet at the time of the Company’s acquisition of Acushnet Company. Acushnet Company believed that these VAT trade receivables were assets of the Company; Beam claimed that these are tax credits or refunds from the period prior to the acquisition of Acushnet Company which were payable to Beam, pursuant to the terms of the Stock Purchase Agreement that covers the sale of the stock of Acushnet Company. Beam has withheld payments in this amount which the Company believed were payable to Acushnet Company in reimbursement of certain other tax liabilities which existed prior to the acquisition of Acushnet Company. On March 27, 2012, Acushnet Company filed a complaint seeking reimbursement of these funds in the Commonwealth of Massachusetts Superior Court Department, Business Litigation Section. Each party filed Motions for Summary Judgment, which motions were denied by the Court on July 29, 2015. Trial was conducted in early June, 2016.  On June 21, 2016, the Court ruled that Beam had a contractual right to the VAT trade receivables actually collected from Acushnet Company's customers prior to the closing of the Company's acquisition of Acushnet Company, but that Beam should pay $972,288 plus pre-judgment interest of $494,859 to the Company to compensate for amounts Beam withheld, but which were not collected from Acushnet Company's customers. The Company recorded the total value of the judgment as other (income) expense, net on the consolidated statement of operations for the year ended December 31, 2016. Acushnet filed a Notice of Appeal on July 20, 2016. On February 2, 2018, the Appeals Court issued its decision affirming the lower Court's decision.  The Company did not appeal the Appeals Court ruling.

Other Litigation

In addition to the lawsuit described above, the Company and its subsidiaries are defendants in lawsuits associated with the normal conduct of their businesses and operations. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that some of these actions could be decided unfavorably. Consequently, the Company is unable to estimate the ultimate aggregate amount of monetary loss, amounts covered by insurance or the financial impact that will result from such matters and has not recorded a liability related to potential losses. The Company believes that there are meritorious defenses to these actions and that these actions will not have a material adverse effect on the consolidated financial statements.

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Unaudited Quarterly Financial Data

12 Months Ended

Dec. 31, 2017

Unaudited Quarterly Financial Data

Unaudited Quarterly Financial Data

22. Unaudited Quarterly Financial Data

The tables below summarize quarterly results for fiscal 2017 and 2016:

	Quarter ended (unaudited)
(in thousands)	December 31,		September 30,		June 30,		March 31,
2017
Net sales	$	351,392	$	347,263	$	427,988	$	433,615
Gross profit		178,500		172,968		222,909		226,415
Income from operations		26,370		18,265		57,385		64,288
Net income		12,318		10,634		34,038		39,630
Net income attributable to Acushnet Holdings Corp.		11,666		9,318		33,016		38,114
Net income per common share attributable to Acushnet Holdings Corp.:
Basic		$ 0.16		$ 0.13		$ 0.44		$ 0.51
Diluted		$ 0.16		$ 0.12		$ 0.44		$ 0.51

	Quarter ended (unaudited)
(in thousands)	December 31,		September 30,		June 30,		March 31,
2016
Net sales	$	329,761	$	339,318	$	463,261	$	439,935
Gross profit		167,994		166,902		237,960		225,869
Income from operations		7,608		9,606		66,437		57,185
Net income (loss)		1,247		(4,402)		27,478		25,192
Net income (loss) attributable to Acushnet Holdings Corp.		(179)		(5,526)		27,055		23,662
Net income (loss) per common share attributable to Acushnet Holdings Corp.:
Basic		$ (0.02)		$ (0.38)		$ 0.62		$ 0.53
Diluted		$ (0.02)		$ (0.38)		$ 0.39		$ 0.35

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Summary of Significant Accounting Policies

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company, its wholly- owned subsidiaries and a variable interest entity (“VIE”) in which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to current year presentation.

Use of Estimates

Use of Estimates

The preparation of the Company’s consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect reported amounts of assets, liabilities, stockholders’ equity, net sales and expenses, and the disclosure of contingent assets and liabilities in its consolidated financial statements. Actual results could differ from those estimates.

Acquisition

Acquisition

Acushnet Holdings Corp. was incorporated in Delaware on May 9, 2011 as Alexandria Holdings Corp., an entity owned by Fila Korea Co., Ltd. (“Fila Korea”), a leading sport and leisure apparel and footwear company which is a public company listed on the Korea Exchange, and a consortium of investors (the “Financial Investors”) led by Mirae Asset Global Investments, a global investment management firm. Acushnet Holdings Corp. acquired Acushnet Company, our operating subsidiary, from Beam Suntory, Inc. (at the time known as Fortune Brands, Inc.) (“Beam”) on July 29, 2011 (the “Acquisition”).

Initial Public Offering

Initial Public Offering

On November 2, 2016, the Company completed an initial public offering of 19,333,333 shares of its common stock sold by selling stockholders at a public offering price of $17.00 per share. Upon the closing of the Company’s initial public offering, all remaining outstanding shares of the Company’s Series A redeemable convertible preferred stock (“Series A preferred stock”) were automatically converted into 11,556,495 shares of the Company’s common stock and the Company’s 7.5% convertible notes due 2021 (“convertible notes”) were automatically converted into 22,791,852 shares of the Company’s common stock. The underwriters of the Company’s initial public offering exercised their over-allotment option to purchase an additional 2,899,999 shares of common stock from the selling stockholders at the initial public offering price of $17.00 per share.

Following the pricing of the initial public offering, Magnus Holdings Co., Ltd. (“Magnus”), a wholly-owned subsidiary of Fila Korea, purchased from the Financial Investors on a pro rata basis 14,818,720 shares of the Company’s common stock, resulting in Magnus holding a controlling ownership interest in the Company’s outstanding common stock. The 14,818,720 shares of the Company’s common stock sold by the Financial Investors were received upon the automatic conversion of certain of the Company’s outstanding convertible notes (Note 9) and Series A preferred stock (Note 15). The remaining outstanding convertible notes and Series A preferred stock automatically converted into shares of the Company’s common stock prior to the closing of the initial public offering.

On October 14, 2016, the Company effected a nine-for-one stock split of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for its convertible notes, Series A preferred stock, and the exercise price for the common stock warrants and the strike price of stock-based compensation. Accordingly, all share and per share amounts for all periods presented in the accompanying consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this stock split and adjustment of the common stock warrant exercise price, and convertible notes and redeemable convertible preferred stock conversion ratios.

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 noncontrolling entities have guaranteed the credit lines of the VIE, for which there were no outstanding borrowings as of December 31, 2017 and 2016. In addition, pursuant to the terms of the agreement governing the VIE, the Company is not required to provide financial support to the VIE.

Cash and Restricted Cash

Cash and Restricted Cash

Cash held in Company checking accounts is included in cash. Book overdrafts not subject to offset with other accounts with the same financial institution are classified as accounts payable. As of December 31, 2017 and 2016, book overdrafts in the amount of $2.9 million and $3.6 million, respectively, were recorded in accounts payable. The Company classifies as restricted certain cash that is not available for use in its operations. As of December 31, 2017 and 2016, the amount of restricted cash included in cash and restricted cash on the consolidated balance sheet was $2.3 million and $3.1 million, respectively.

Accounts Receivable

Accounts Receivable

 Accounts receivable are presented net of an allowance for doubtful accounts. The allowance for doubtful accounts is assessed each reporting period by the Company for estimated losses resulting from the inability or unwillingness of its customers to make required payments. The allowance is based on various factors, including credit risk assessments, length of time the receivables are past due, historical experience, customer specific information available to the Company and existing economic conditions.

Allowance for Sales Returns

Allowance for Sales Returns

 A sales returns allowance is recorded for anticipated returns through a reduction of sales and cost of goods sold in the period that the related sales are recorded. Sales returns are estimated based upon historical rates of product returns, current economic trends and changes in customer demands as well as specific identification of outstanding returns. In accordance with this policy, the allowance for sales returns was $13.5 million and $9.8 million as of December 31, 2017 and 2016, respectively. 

Concentration of Credit Risk and of Significant Customers

Concentration of Credit Risk and of Significant Customers

 Financial instruments that potentially expose the Company to concentration of credit risk are cash and accounts receivable. Substantially all of the Company's cash deposits are maintained at large, creditworthy financial institutions. The Company's deposits, at times, may exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. As part of its ongoing procedures, the Company monitors its concentration of deposits with various financial institutions in order to avoid any undue exposure. As of December 31, 2017 and 2016, the Company had $44.7 million and $75.6 million, respectively, in banks located outside the United States. The risk with respect to the Company's accounts receivable is managed by the Company through its policy of monitoring the creditworthiness of its customers to which it grants credit terms in the normal course of business.

Inventories

Inventories

Inventories are valued at the lower of cost and net realizable value. Cost is determined using the first-in, first-out inventory method. The inventory balance, which includes material, labor and manufacturing overhead costs, is recorded net of an allowance for obsolete or slow moving inventory. The Company's allowance for obsolete or slow moving inventory contains estimates regarding uncertainties. Such estimates are updated each reporting period and require the Company to make assumptions and to apply judgment regarding a number of factors, including market conditions, selling environment, historical results and current inventory trends.

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. Gains or losses resulting from disposals are included in income from operations. Betterments and renewals, which improve and extend the life of an asset, are capitalized. Maintenance and repair costs are expensed as incurred.

Estimated useful lives of property, plant and equipment asset categories were as follows:

Buildings and improvements	15	–	40 years
Machinery and equipment	3	–	10 years
Furniture, fixtures and computer hardware	3	–	10 years
Computer software	1	–	10 years

Leasehold and tenant improvements are amortized over the shorter of the lease term or the estimated useful lives of the assets.

Certain costs incurred in connection with the development of the Company's internal-use software are capitalized. Software development costs are primarily related to the Company's enterprise resource planning system. Costs incurred in the preliminary stages of development are expensed as incurred. Internal and external costs incurred in the application development phase, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing performed to ensure the product is ready for its intended use. Costs such as maintenance and training are expensed as incurred. The capitalized internal-use software costs are included in property, plant and equipment and once the software is placed into service are amortized over the estimated useful life which ranges from three to ten years.

Long-Lived Assets

Long-Lived Assets

 A long-lived asset (including amortizable identifiable intangible assets) or asset group is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, the Company compares the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of the long-lived asset or asset group. The cash flows are based on the best estimate of future cash flows derived from the most recent business projections. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment loss is recognized based on the excess of the asset's or asset group's carrying value over its fair value. Fair value is determined based on discounted expected future cash flows on a market participant basis. Any impairment charge would be recognized within operating expenses as a selling, general and administrative expense.

The Company continually evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets may warrant revision or that the remaining balance may not be recoverable. These factors may include a significant deterioration of operating results, changes in business plans, or changes in anticipated cash flows.

Goodwill and Indefinite-Lived Intangible Assets

Goodwill and Indefinite-Lived Intangible Assets

Goodwill and indefinite-lived intangible assets are not amortized but instead are measured for impairment at least annually, or more frequently when events or changes in circumstances indicate that the carrying amount of the asset may be impaired.

Goodwill is assigned to reporting units for purposes of impairment testing. A reporting unit may be the same as an operating segment or one level below an operating segment. For purposes of assessing potential impairment, the Company may assess qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If the Company determines based on the qualitative factors that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, no further testing is necessary. If, however, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company performs the first step of a two-step quantitative goodwill impairment test. In the first step, the Company compares the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference. The fair value of the reporting units is determined using the income approach. The income approach uses a discounted cash flow analysis which involves applying appropriate discount rates to estimated future cash flows based on forecasts of sales, costs and capital requirements.

The Company performs its annual impairment tests in the fourth quarter of each fiscal year. As of December 31, 2017, no impairment of goodwill was identified and the fair value of each reporting unit exceeded its carrying value.

Purchased intangible assets other than goodwill are amortized over their useful lives unless those lives are determined to be indefinite. The Company's trademarks have been assigned an indefinite life as the Company currently anticipates that these trademarks will contribute to its cash flows indefinitely. Trademarks are reviewed for impairment annually and may be reviewed more frequently if indicators of impairment are present. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company measures the fair value of its trademarks using the relief-from-royalty method, which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. As of December 31, 2017, no impairment of trademarks was identified. 

Deferred Financing Costs

Deferred Financing Costs

The Company defers costs directly associated with acquiring third-party financing. These deferred costs are amortized as interest expense over the term of the related indebtedness. Deferred financing costs associated with the revolving credit facilities are included in other current and noncurrent assets and deferred financing costs associated with all other indebtedness are netted against debt on the consolidated balance sheet.

Fair Value Measurements

Fair Value Measurements

Certain assets and liabilities are carried at fair value under U.S. GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

· Level 1—Quoted prices in active markets for identical assets or liabilities.

· Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

· Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The Company’s foreign exchange derivative assets and liabilities are carried at fair value determined according to the fair value hierarchy described above (Note 11). The carrying value of accounts receivable, accounts payable and accrued expenses approximates fair value due to the short-term nature of these assets and liabilities. The Company adopted the fair value measurement disclosures for nonfinancial assets and liabilities, such as goodwill and indefinite-lived intangible assets.

In some instances where a market price is available, but the instrument is in an inactive or over-the-counter market, the Company consistently applies the dealer (market maker) pricing estimate and uses a midpoint approach on bid and ask prices from financial institutions to determine the reasonableness of these estimates. Assets and liabilities subject to this fair value valuation approach are typically classified as Level 2.

Pension and Other Postretirement Benefit Plans

Pension and Other Postretirement Benefit Plans

The Company provides U.S. and foreign defined benefit and defined contribution plans to eligible employees and postretirement benefits to certain retirees, including pensions, postretirement healthcare benefits and other postretirement benefits.

Plan assets and obligations are measured using various actuarial assumptions, such as discount rates, rate of compensation increase, mortality rates, turnover rates and health care cost trend rates, as determined at each year end measurement date. The measurement of net periodic benefit cost is based on various actuarial assumptions, including discount rates, expected return on plan assets and rate of compensation increase, which are determined as of the prior year measurement date. The determination of the discount rate is generally based on an index created from a hypothetical bond portfolio consisting of high-quality fixed income securities with durations that match the timing of expected benefit payments. The expected return on plan assets is determined based on several factors, including adjusted historical returns, historical risk premiums for various asset classes and target asset allocations within the portfolio. Adjustments made to the historical returns are based on recent return experience in the equity and fixed income markets and the belief that deviations from historical returns are likely over the relevant investment horizon. Actual cost is also dependent on various other factors related to the employees covered by these plans. The effects of actuarial deviations from assumptions are generally accumulated and, if over a specified corridor, amortized over the remaining service period of the employees. The cost or benefit of plan changes, such as increasing or decreasing benefits for prior employee service (prior service cost), is deferred and included in expense on a straight-line basis over the average remaining service period of the related employees. The Company's actuarial assumptions are reviewed on an annual basis and modified when appropriate.

To calculate the U.S. pension and postretirement benefit plan expense in 2017, the Company applied the individual spot rates along the yield curve that correspond with the timing of each future cash outflow for the benefit payments in order to calculate interest cost and service cost.  Prior to 2017, the service cost and interest cost components were determined using a single weighted-average discount rate. The change does not affect the measurement of the total benefit plan obligations, as the change in the service cost and interest cost offsets in the actuarial gains and losses recorded in other comprehensive income. The Company changed to the new method to provide a more precise measure of service and interest cost by improving the correlation between the projected benefit cash flows and the discrete spot yield curve rates. The Company accounted for this change as a change in estimate prospectively beginning in 2017.  

Income Taxes

Income Taxes

The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between consolidated financial statement carrying amounts and tax basis amounts enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is recorded to reduce deferred income tax assets when it is more-likely-than-not that such assets will not be realized. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies.

The Company records liabilities for uncertain income tax positions based on the two step process. The first step is recognition, where an individual tax position is evaluated as to whether it has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized on ultimate settlement. The actual benefits ultimately realized may differ from the estimates. In future periods, changes in facts, circumstances, and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in income tax expense and liability in the period in which such changes occur. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes on the consolidated statements of income.

Beam has indemnified certain tax obligations that relate to periods during which Fortune Brands, Inc. owned Acushnet Company (Note 13). These estimated tax obligations are recorded in accrued taxes and other noncurrent liabilities, and the related indemnification receivable is recorded in other current and noncurrent assets on the consolidated balance sheet. Any changes in the value of these specifically identified tax obligations are recorded in the period identified in income tax expense and the related change in the indemnification asset is recorded in other (income) expense, net on the consolidated statement of operations. 

Revenue Recognition

Revenue Recognition

Revenue is recognized upon shipment or upon receipt by the customer depending on the country of the sale and the agreement with the customer, net of allowances for discounts, sales returns, customer sales incentives and cooperative advertising. The criteria for recognition of revenue is met when persuasive evidence that an arrangement exists, both title and risk of loss have passed to the customer, the price is fixed or determinable and collectability is reasonably assured. In circumstances where either title or risk of loss pass upon receipt by the customer, revenue is deferred until such event occurs based on an estimate of the shipping time from the Company's distribution centers to the customer using historical and expected delivery times by geographic location. Amounts billed to customers for shipping and handling are included in net sales.

Customer Sales Incentives

Customer Sales Incentives

The Company offers customer sales incentives, including off-invoice discounts and sales-based rebate programs, to its customers which are primarily accounted for as a reduction in sales at the time the revenue is recognized. Sales-based rebates are estimated using assumptions related to the percentage of customers who will achieve qualifying purchase goals and the level of achievement. These assumptions are based on historical experience, current year program design, current marketplace conditions and sales forecasts, including considerations of product life cycles.

Cost of Goods Sold

Cost of Goods Sold

Cost of goods sold includes all costs to make products saleable, such as inbound freight, purchasing and receiving costs, inspection costs and transfer costs. In addition, all depreciation expense associated with assets used to manufacture products and make them saleable is included in cost of goods sold.

Product Warranty

Product Warranty

The Company has defined warranties ranging from one to two years. Products covered by the defined warranty policies include all Titleist golf products, FootJoy golf shoes, and FootJoy golf outerwear. These product warranties generally obligate the Company to pay for the cost of replacement products, including the cost of shipping replacement products to its customers. The estimated cost of satisfying future warranty claims is accrued at the time the sale is recorded. In estimating future warranty obligations, the Company considers various factors, including its warranty policies and practices, the historical frequency of claims, and the cost to replace or repair products under warranty.

Advertising and Promotion

Advertising and Promotion

Advertising and promotional costs are included in selling, general and administrative expense on the consolidated statement of operations and include product endorsement arrangements with members of the various professional golf tours, media placement and production costs (television, print and internet), tour support expenses and point-of-sale materials. Advertising production costs are expensed as incurred. Media placement costs are expensed in the month the advertising appears. Product endorsement arrangements are expensed based upon the specific provisions of player contracts. Advertising and promotional expense was $192.7 million, $196.0 million and $203.3 million for the years ended December 31, 2017,  2016 and 2015, respectively.

Selling

Selling

Selling expenses including field sales, sales administration and shipping and handling costs are included in selling, general and administrative expense on the consolidated statement of operations. Shipping and handling costs included in selling expenses were $32.5million, $32.4 million and $32.6 million for the years ended December 31, 2017,  2016 and 2015, respectively.

Research and Development

Research and Development

Research and development expenses include product development, product improvement, product engineering, and process improvement costs and are expensed as incurred.

Foreign Currency Translation and Transactions

Foreign Currency Translation and Transactions

Assets and liabilities denominated in foreign currency are translated into U.S. dollars at the actual rates of exchange at the balance sheet date. Revenues and expenses are translated at the average rates of exchange for the reporting period. The related translation adjustments are recorded as a component of accumulated other comprehensive income (loss). Transactions denominated in a currency other than the functional currency are re-measured into functional currency with resulting transaction gains or losses recorded as selling, general and administrative expense on the consolidated statement of operations. Foreign currency transaction gain (loss) included in selling, general and administrative expense was a gain of $4.1 million, a gain of $1.2 million and a loss of $4.7 million for the years ended December 31, 2017, 2016 and 2015, respectively. 

Derivative Financial Instruments

Derivative Financial Instruments

All derivatives are recognized as either assets or liabilities on the consolidated balance sheet and measurement of these instruments is at fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive income (loss) and are recognized in the consolidated statement of operations when the hedged item affects earnings. Any portion of the change in fair value that is determined to be ineffective is immediately recognized in earnings as cost of goods sold.

The Company may elect to enter into foreign exchange forwards to mitigate the change in fair value of specific assets and liabilities which do not qualify as hedging instruments under U.S. GAAP. Accordingly, 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, together with the re-measurement gain or loss from the hedged asset or liability. There were no outstanding foreign exchange forward contracts not designated under hedge accounting as of December 31, 2017 and 2016.

Share-based Compensation

Share-based Compensation

The Company has a share-based compensation plan for employees and non-employee members of the Company's Board of Directors. All awards granted under the plan are measured at fair value at the date of the grant and amortized as expense over the requisite service period of the award, which is generally the vesting period of the respective award. The Company accounts for forfeitures in compensation expense when they occur. The Company issues share-based awards with service-based vesting conditions and performance-based vesting conditions. For awards with performance-based vesting conditions, the measurement of the expense is based on the Company’s level of achievement of the applicable cumulative Adjusted EBITDA performance metrics.

Equity Appreciation Rights Plan

Equity Appreciation Rights Plan

Awards granted under the Company's Equity Appreciation Rights (“EAR”) plan were accounted for as liability-classified awards because it was a cash settled plan. The Company elected the intrinsic value method to measure its liability-classified awards and amortized share-based compensation expense for those awards expected to vest on a straight-line basis over the requisite service period. The Company re-measured the intrinsic value of the awards at the end of each reporting period. 

Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share

Net income (loss) per common share attributable to Acushnet Holdings Corp. is calculated under the treasury stock method. Prior to the conversion of the redeemable convertible preferred shares to common stock in connection with the Company’s initial public offering in 2016, the Company applied the two-class method to calculate its basic and diluted net income (loss) per common share attributable to Acushnet Holdings Corp., as its redeemable convertible preferred shares were participating securities. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. Net income (loss) per common share available to Acushnet Holdings Corp. was determined by allocating undistributed earnings between holders of common shares and redeemable convertible preferred shares, based on the participation rights of the preferred shares. Basic net income (loss) per share attributable to Acushnet Holdings Corp. was computed by dividing the net income (loss) available to Acushnet Holdings Corp. by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share attributable to Acushnet Holdings Corp. was computed by dividing the net income (loss) available to Acushnet Holdings Corp. after giving effect to the diluted securities by the weighted-average number of dilutive shares outstanding during the period.

Diluted net income (loss) per common share attributable to Acushnet Holdings Corp. for the years ended December 31, 2017 and 2016 reflects the potential dilution that would occur if the Restricted Stock Units (“RSUs”) were converted into common shares. The restricted stock units are included as potential dilutive securities to the extent they are dilutive under the treasury stock method for the applicable periods.

Diluted net income (loss) per common share attributable to Acushnet Holdings Corp. for the year ended December 31, 2015 reflects the potential dilution that would occur if common stock warrants, convertible notes, redeemable convertible preferred stock, stock options or any other dilutive equity instruments were exercised or converted into common shares. The common stock warrants and stock options are included as potential dilutive securities to the extent they are dilutive under the treasury stock method for the applicable periods. The convertible notes and redeemable convertible preferred stock are included as potential dilutive securities to the extent they are dilutive under the if-converted method for the applicable periods.

Recently Adopted Accounting Standards and Recently Issued Accounting Standards

Recently Adopted Accounting Standards

Consolidation— InterestsHeld Through Related Parties

In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016‑17, “Consolidation: Interests Held through Related Parties that are under Common Control.” ASU 2016‑17 changes the evaluation of whether a reporting entity is the primary beneficiary of a VIE by changing how a reporting entity that is a single decision maker of a VIE treats indirect interests in the entity held through related parties that are under common control with the reporting entity. The Company adopted the provisions of this standard during the three months ended March 31, 2017. The adoption of this standard did not have an impact on the consolidated financial statements.

Compensation—Stock Compensation

In March 2016, the FASB issued ASU 2016‑09, “Compensation—Stock Compensation: Improvements to Employee Share‑Based Payment Accounting” to simplify accounting for employee share‑based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The Company adopted the provisions of this standard prospectively during the three months ended March 31, 2017. The adoption of this standard did not have a material impact on the consolidated financial statements.

Recently Issued Accounting Standards

Income Statement—Reporting Comprehensive Income

In February 2018, the FASB issued ASU 2018‑02, “Income Statement—Reporting Comprehensive Income (Topic 220) —Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. ASU 2018‑02 is effective for annual periods beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company is still analyzing the complete impact this standard will have on its consolidated financial statements.

Derivatives and Hedging (Topic 815) —Targeted Improvements to Accounting for Hedging Activities

In August 2017, the FASB issued ASU 2017‑12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The amendments in this update expand and refine hedge accounting guidance and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. ASU 2017-12 also simplifies the application of hedge accounting guidance, hedge documentation requirements and the assessment of hedge effectiveness. ASU 2017‑12 is effective for annual periods beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

Compensation—Stock Compensation—Scope of Modification Accounting

In May 2017, the FASB issued ASU 2017‑09, “Compensation—Stock Compensation: Scope of Modification Accounting.” The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718, Compensation—Stock Compensation. ASU 2017‑09 is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

Compensation—Retirement Benefits

In March 2017, the FASB issued ASU 2017‑07, “Compensation—Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post Retirement Benefit Cost.” ASU 2017‑07 requires that an employer report the service cost component of net periodic pension and net periodic post retirement cost in the same line item as other compensation costs arising from services rendered by the employees during the period. It also requires the other components of net periodic pension and net periodic postretirement benefit cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component is eligible for capitalization. ASU 2017‑07 is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued or made available for issuance. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

Intangibles—Goodwill and Other—Simplifying the Test for Goodwill Impairment

In January 2017, the FASB issued ASU 2017‑04, “Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment.” ASU 2017‑04 removes the second step of the goodwill impairment test. Instead an entity will perform a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU 2017‑04 is effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

Business Combination—Clarifying the Definition of a Business

In January 2017, the FASB issued ASU 2017‑01, “Business Combinations: Clarifying the Definition of a Business.” ASU 2017‑01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of businesses. ASU 2017‑01 is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted for transactions for which the acquisition date occurs before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued or made available for issuance. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

Income Taxes

In October 2016, the FASB issued ASU 2016‑16, “Income Taxes: Intra-Entity Transfers of Assets other than Inventory.” ASU 2016-16 requires that entities recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016‑15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments” to address diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014‑09, “Revenue from Contracts with Customers.” ASU 2014‑09 amends revenue recognition guidance and requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In March 2016, the FASB issued ASU 2016‑08, “Revenue from Contracts with Customers: Principal versus Agent Considerations” clarifying the implementation guidance on principal versus agent considerations. In August 2015, the FASB issued ASU 2015‑14, “Revenue from Contracts with Customers: Deferral of the Effective Date.” deferring the adoption of previously issued guidance published. In May 2016, the FASB issued ASU 2016‑12, “Revenue from Contracts with Customers: Narrow‑Scope Improvements and Practical Expedients.” ASU 2016‑12 addresses narrow‑scope improvements to the guidance on collectability, noncash consideration and completed contracts at transition and provides a practical expedient for contract modifications and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. ASU 2016‑08 and 2015‑14 are effective for reporting periods beginning after December 15, 2017, including interim periods within those fiscal years. The new standard permits the use of either the retrospective or modified retrospective approach on adoption. The Company has adopted the standard on January 1, 2018 using a modified retrospective approach with the cumulative effect of initially applying the new standard recognized in retained earnings at the date of adoption.  The Company has identified customer incentives and expanded disclosures as the primary areas that will be affected by the new guidance. Based upon the terms of the Company’s agreements and the materiality of the transactions related to customer incentives, the Company does not expect the effect of adoption to have a material impact on the Company’s consolidated financial statements.

Leases

In February 2016, the FASB issued ASU 2016‑02, “Leases,” which will require lessees to recognize right‑of‑use assets and lease liabilities for leases which were formerly classified as operating leases. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. While the Company is still analyzing the complete impact this ASU will have on its consolidated financial statements and related disclosures, it does expect the adoption of this standard will have a material impact on its consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Significant Accounting Policies

Schedule of estimated useful lives of property, plant and equipment

Buildings and improvements	15	–	40 years
Machinery and equipment	3	–	10 years
Furniture, fixtures and computer hardware	3	–	10 years
Computer software	1	–	10 years

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Allowance for Doubtful Accounts (Tables)

12 Months Ended

Dec. 31, 2017

Allowance for Doubtful Accounts

Schedule of change to the allowance for doubtful accounts

(in thousands)		2017		2016		2015
Balance at beginning of year	$	12,255	$	12,363	$	8,528
Bad debt expense		337		6,507		4,771
Amount of receivables written off		(3,300)		(6,315)		(634)
Foreign currency translation		683		(300)		(302)
Balance at end of year	$	9,975	$	12,255	$	12,363

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Inventories (Tables)

12 Months Ended

Dec. 31, 2017

Inventories

Schedule of inventory

(in thousands)	December 31,		December 31,
	2017		2016
Raw materials and supplies	$	72,342	$	55,424
Work-in-process		23,956		21,558
Finished goods		267,664		246,307
Inventories	$	363,962	$	323,289

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Property, Plant and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment, Net

Schedule of property, plant and equipment, net

	December 31,		December 31,
(in thousands)	2017		2016
Land	$	14,618	$	14,500
Buildings and improvements		138,570		133,844
Machinery and equipment		148,999		143,784
Furniture, computers and equipment		32,783		29,326
Computer software		60,736		58,462
Construction in progress		13,586		11,196
Property, plant and equipment, gross		409,292		391,112
Accumulated depreciation and amortization		(180,370)		(151,364)
Property, plant and equipment, net	$	228,922	$	239,748

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Goodwill and Identifiable Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Identifiable Intangible Assets, Net

Schedule of goodwill allocated to the Company's reportable segments and changes in the carrying amount of goodwill

Goodwill allocated to the Company's reportable segments and changes in the carrying amount of goodwill were as follows:

	Titleist		Titleist		FootJoy		Titleist
(in thousands)	Golf Balls		Golf Clubs		Golf Wear		Golf Gear		Other		Total
Balances at December 31, 2015	$	106,561		51,753		2,303		12,549		8,013		181,179
Foreign currency translation		(1,139)		(554)		(25)		(134)		(86)		(1,938)
Balances at December 31, 2016		105,422		51,199		2,278		12,415		7,927		179,241
Foreign currency translation		3,941		1,914		85		464		296		6,700
Balances at December 31, 2017	$	109,363	$	53,113	$	2,363	$	12,879	$	8,223	$	185,941

Schedule of net carrying value by class of identifiable intangible assets

	Weighted		December 31, 2017						December 31, 2016
	Average
	Useful				Accumulated		Net Book				Accumulated		Net Book
(in thousands)	Life (Years)		Gross		Amortization		Value		Gross		Amortization		Value
Indefinite-lived:
Trademarks		N/A	$	428,100	$	-	$	428,100	$	428,100	$	-	$	428,100
Amortizing:
Completed Technology		13		73,900		(35,486)		38,414		73,900		(29,956)		43,944
Customer Relationships		20		19,666		(6,309)		13,357		18,999		(5,146)		13,853
Licensing Fees and Other		7		32,539		(31,176)		1,363		32,423		(28,332)		4,091
Total intangible assets			$	554,205	$	(72,971)	$	481,234	$	553,422	$	(63,434)	$	489,988

Schedule of amortization expense related to intangible assets

(in thousands)
Year ending December 31,
2018	$	7,878
2019		6,269
2020		5,926
2021		5,926
2022		5,926
Thereafter		21,209
Total	$	53,134

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Product Warranty (Tables)

12 Months Ended

Dec. 31, 2017

Product Warranty

Schedule of warranty obligation for accrued warranty expense

	Year ended
	December 31,
(in thousands)	2017		2016		2015
Balance at beginning of period	$	3,526	$	3,345	$	2,989
Provision		5,801		6,200		5,399
Claims paid/costs incurred		(5,653)		(5,940)		(4,929)
Foreign currency translation		149		(79)		(114)
Balance at end of period	$	3,823	$	3,526	$	3,345

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Debt and Financing Arrangements (Tables)

12 Months Ended

Dec. 31, 2017

Debt and Financing Arrangements

Schedule of debt and capital lease obligations

	December 31,		December 31,
(in thousands)	2017		2016
Term loan	$	351,563	$	370,313
Delayed draw term loan A facility		95,000		-
Revolving credit facility		10,066		42,495
Other short-term borrowings		10,298		-
Capital lease obligations		22		491
Debt issuance costs		(2,896)		(3,706)
Total		464,053		409,593
Less: short-term debt and current portion of long-term debt		47,083		61,245
Total long-term debt and capital lease obligations	$	416,970	$	348,348

Schedule of principal payments on outstanding long-term debt obligations

(in thousands)
Year ending December 31,
2018	$	26,719
2019		35,625
2020		38,594
2021		345,625
2022		-
Thereafter		-
Total	$	446,563

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Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Financial Instruments

Schedule of fair values in foreign exchange derivative instruments on the consolidated balance sheets

	Balance Sheet	December 31,		December 31,
(in thousands)	Location	2017		2016
Asset derivatives	Other current assets	$	4,675	$	11,357
	Other noncurrent assets		562		5,286
Liability derivatives	Other current liabilities		6,360		1,106
	Other noncurrent liabilities		276		32

Schedule of foreign exchange derivative instruments included in accumulated other comprehensive income (loss)

	Gain (Loss) Recognized in
	Other Comprehensive Income (Loss)
	Year ended
	December 31,
(in thousands)	2017		2016		2015
Type of hedge
Cash flow	$	(15,558)	$	7,014	$	14,964
	$	(15,558)	$	7,014	$	14,964

Effect of foreign exchange hedges in the consolidated statement of operations

	Gain (Loss) Recognized in
	Statement of Operations
	Year ended
	December 31,
(in thousands)	2017		2016		2015
Location of gain (loss) in statement of operations
Cost of goods sold	$	1,329	$	5,194	$	26,805
Selling, general and administrative expense		(2,732)		(917)		3,733
	$	(1,403)	$	4,277	$	30,538

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Measurements

Schedule of assets and liabilities measured at fair value on a recurring basis

	Fair Value Measurements as of
	December 31, 2017 using:
(in thousands)	Level 1		Level 2		Level 3		Balance Sheet Location
Assets
Rabbi trust	$	10,637	$	-	$	-	Other current assets
Foreign exchange derivative instruments		-		4,675		-	Other current assets
Deferred compensation program assets		1,866		-		-	Other noncurrent assets
Foreign exchange derivative instruments		-		562		-	Other noncurrent assets
Total assets	$	12,503	$	5,237	$	-
Liabilities
Foreign exchange derivative instruments	$	-	$	6,360	$	-	Other current liabilities
Deferred compensation program liabilities		1,866		-		-	Other noncurrent liabilities
Foreign exchange derivative instruments		-		276		-	Other noncurrent liabilities
Total liabilities	$	1,866	$	6,636	$	-

	Fair Value Measurements as of
	December 31, 2016 using:
(in thousands)	Level 1		Level 2		Level 3		Balance Sheet Location
Assets
Rabbi trust	$	6,994	$	-	$	-	Other current assets
Foreign exchange derivative instruments		-		11,357		-	Other current assets
Rabbi trust		5,248		-		-	Other noncurrent assets
Deferred compensation program assets		1,846		-		-	Other noncurrent assets
Foreign exchange derivative instruments		-		5,286		-	Other noncurrent assets
Total assets	$	14,088	$	16,643	$	-
Liabilities
Foreign exchange derivative instruments	$	-	$	1,106	$	-	Other current liabilities
Deferred compensation program liabilities		1,846		-		-	Other noncurrent liabilities
Foreign exchange derivative instruments		-		32		-	Other noncurrent liabilities
Total liabilities	$	1,846	$	1,138	$	-

Schedule of changes in Level 3 fair value measurements

	December 31,
(in thousands)	2016
Balance at beginning of year	$	22,884
Common stock warrant exercise		(28,996)
Total losses included in earnings		6,112
Balance at end of year	$	-

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Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2017

Pension and Other Postretirement Benefits

Schedule of change in benefit obligation, change in plan assets and funded status

	Pension		Pension
	Benefits		Benefits		Postretirement
(in thousands)	(Underfunded)		(Overfunded)		Benefits
Change in projected benefit obligation ("PBO")
Benefit obligation at December 31, 2016	$	284,104	$	39,735	$	20,264
Service cost		9,217		-		955
Interest cost		10,783		1,049		713
Actuarial (gain) loss		34,557		(2,000)		(5,075)
Settlements		(20,663)		(5,172)		-
Participants’ contributions		-		-		355
Benefit payments		(2,719)		(635)		(1,160)
Foreign currency translation		1,435		2,659		-
Adjustment for movement from underfunded to overfunded		168		(168)		-
Projected benefit obligation at December 31, 2017		316,882		35,468		16,052
Accumulated benefit obligation at December 31, 2017		277,067		34,190		16,052
Change in plan assets
Fair value of plan assets at December 31, 2016		161,088		45,342		-
Return on plan assets		23,757		6,254		-
Employer contributions		21,280		1,697		805
Participants’ contributions		-		-		355
Settlements		(20,663)		(5,172)		-
Benefit payments		(2,719)		(635)		(1,160)
Adjustment for movement from underfunded to overfunded		194		(194)		-
Foreign currency translation		156		3,475		-
Fair value of plan assets at December 31, 2017		183,093		50,767		-
Funded status (fair value of plan assets less PBO)	$	(133,789)	$	15,299	$	(16,052)

	Pension		Pension
	Benefits		Benefits		Postretirement
(in thousands)	(Underfunded)		(Overfunded)		Benefits
Change in projected benefit obligation
Benefit obligation at December 31, 2015	$	271,462	$	38,287	$	20,079
Service cost		9,787		(24)		888
Interest cost		11,077		1,279		779
Actuarial (gain) loss		14,095		7,711		(572)
Settlements		(6,714)		-		-
Plan amendments		-		-		283
Participants’ contributions		-		-		921
Benefit payments		(15,515)		(796)		(2,114)
Foreign currency translation		122		(6,932)		-
Adjustment for movement from underfunded to overfunded		(210)		210		-
Projected benefit obligation at December 31, 2016		284,104		39,735		20,264
Accumulated benefit obligation at December 31, 2016		247,009		37,289		20,264
Change in plan assets
Fair value of plan assets at December 31, 2015		157,729		43,768		-
Return on plan assets		7,203		8,280		-
Employer contributions		18,335		2,012		1,193
Participants’ contributions		-		-		921
Settlements		(6,714)		-		-
Benefit payments		(15,515)		(796)		(2,114)
Foreign currency translation		50		(7,922)		-
Fair value of plan assets at December 31, 2016		161,088		45,342		-
Funded status (fair value of plan assets less PBO)	$	(123,016)	$	5,607	$	(20,264)

Schedule of amount of pension and postretirement assets and liabilities recognized on consolidated balance sheets

	Pension Benefits				Postretirement Benefits
(in thousands)	2017		2016		2017		2016
Other noncurrent assets	$	15,299	$	5,607	$	-	$	-
Accrued compensation and benefits		(18,933)		(7,149)		(748)		(784)
Accrued pension and postretirement benefits		(114,856)		(115,867)		(15,304)		(19,480)
Net amount recognized	$	(118,490)	$	(117,409)	$	(16,052)	$	(20,264)

Schedule of amount in accumulated other comprehensive income (loss) on consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost

	Pension Benefits						Postretirement Benefits
	Year ended December 31,						Year ended December 31,
(in thousands)	2017		2016		2015		2017		2016		2015
Net actuarial (gain) loss at beginning of year	$	33,736	$	18,374	$	19,878	$	(8,055)	$	(8,840)	$	(7,270)
Current year actuarial (gain) loss		14,554		18,425		17,835		(5,075)		(573)		(2,228)
Amortization of actuarial (gain) loss		(804)		(485)		(1,152)		601		912		490
Curtailment impact		-		-		(19,146)		-		-		-
Settlement impact		(2,740)		(1,124)		-		-		-		-
Prior service cost		-		-		1,331		-		283		-
Amortization of prior service cost (credit)		(175)		(175)		(22)		137		163		168
Foreign currency translation		321		(1,279)		(350)		-		-		-
Net actuarial (gain) loss at end of year	$	44,892	$	33,736	$	18,374	$	(12,392)	$	(8,055)	$	(8,840)

Schedule of components of net periodic benefit cost

	Pension Benefits						Postretirement Benefits
	Year ended December 31,
(in thousands)	2017		2016		2015		2017		2016		2015
Components of net periodic benefit cost
Service cost	$	9,217	$	9,763	$	15,683	$	955	$	888	$	1,060
Interest cost		11,832		12,356		12,338		713		779		787
Expected return on plan assets		(12,006)		(12,189)		(11,372)		-		-		-
Curtailment income		-		-		(2,421)		-		-		-
Settlement expense		2,740		1,148		-		-		-		-
Amortization of net (gain) loss		804		471		1,152		(601)		(912)		(490)
Amortization of prior service cost (credit)		175		175		22		(137)		(163)		(168)
Net periodic benefit cost	$	12,762	$	11,724	$	15,402	$	930	$	592	$	1,189

Schedule of weighted average assumptions used to determine future benefit obligations and net periodic benefit cost

The weighted average assumptions used to determine benefit obligations at December 31, 2017 and 2016 were as follows:

	Pension Benefits		Postretirement Benefits
	2017	2016	2017	2016
Discount rate	3.62%	4.17%	3.61%	4.08%
Rate of compensation increase	4.01%	4.02%	N/A	N/A

The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, 2017, 2016 and 2015 were as follows:

	Pension Benefits			Postretirement Benefits
	2017	2016	2015	2017	2016	2015
Discount rate	4.17%	4.16%	3.92%	4.08%	4.30%	3.90%
Expected long-term rate of return on plan assets	5.77%	6.23%	6.15%	N/A	N/A	N/A
Rate of compensation increase	4.02%	4.07%	4.05%	N/A	N/A	N/A

Schedule of assumed healthcare cost trend rates used to determine benefit obligations and net cost

	Postretirement Benefits
	Medical and Prescription Drug
	2017	2016	2015
Healthcare cost trend rate assumed for next year	5.5%/8.5%	5.50%/9.00%	5.75/10.00%
Rate that the cost trend rate is assumed to decline (the ultimate trend rate)	4.50%	4.50%	4.50%
Year that the rate reaches the ultimate trend rate	2024	2024	2024

Schedule of one-percentage-point change in assumed healthcare cost trend rates

	2017				2016
	One-Percentage		One-Percentage		One-Percentage		One-Percentage
(in thousands)	Point Increase		Point Decrease		Point Increase		Point Decrease
Effect on total of service and interest cost	$	73	$	(65)	$	104	$	(91)
Effect on postretirement benefit obligation		665		(598)		894		(796)

Schedule of pension assets by major category of plan assets and type of fair value measurement

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2017 were as follows:

	Pension Benefits – Plan Assets
			Quoted Prices in		Significant		Significant
			Active Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Asset category
Individual securities
Fixed income	$	1,794	$	-	$	1,794	$	-
Commingled funds
Measured at net asset value		232,066		-		-		-
	$	233,860	$	-	$	1,794	$	-

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2016 were as follows:

	Pension Benefits – Plan Assets
			Quoted Prices in		Significant		Significant
			Active Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Asset category
Individual securities
Fixed income	$	1,628	$	-	$	1,628	$	-
Commingled funds
Measured at net asset value		204,801		-		-		-
	$	206,429	$	-	$	1,628	$	-

Schedule of estimated future retirement benefit payments

	Pension		Postretirement
(in thousands)	Benefits		Benefits
Year ending December 31,
2018	$	36,506	$	748
2019		20,544		828
2020		22,103		943
2021		23,751		1,078
2022		24,511		1,214
Thereafter		138,204		7,096
	$	265,619	$	11,907

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes

Schedule of components of income before income taxes

	Year ended December 31,
(in thousands)	2017		2016		2015
Domestic operations	$	61,158	$	(3,995)	$	(48,544)
Foreign operations		90,518		93,217		80,694
Income before income taxes	$	151,676	$	89,222	$	32,150

Schedule of reconciliation of income taxes

	Year ended December 31,
(in thousands)	2017			2016			2015
Income tax expense computed at federal statutory income tax rate	$	53,086		$	31,229		$	11,252
Foreign taxes, net of credits		(15,545)			(1,804)			418
Transition tax (net of federal tax credits generated)		8,593			-			-
US rate change related to the 2017 Tax Act		10,198			-			-
Net adjustments for uncertain tax positions		508			706			4,731
State and local taxes		2,031			(525)			(1,108)
Equity appreciation rights		(765)			372			693
Transaction costs		189			3,078			414
Indemnified taxes		(115)			1,594			(1,106)
Fair value adjustment for common stock warrants		—			3,029			10,853
Valuation allowance		(219)			955			7,872
Deferred charge		(1,295)			1,009			807
Tax credits		(3,240)			(704)			(7,003)
Miscellaneous other, net		1,630			768			171
Income tax expense as reported	$	55,056		$	39,707		$	27,994
Effective income tax rate		36.3	%		44.5	%		87.1	%

Schedule of reconciliation of activity related to unrecognized tax benefits, excluding accrued interest and penalties

(in thousands)	2017		2016		2015
Unrecognized tax benefits at beginning of year	$	11,347	$	13,120	$	8,845
Gross additions - prior year tax positions		-		1,960		3,045
Gross additions - current year tax positions		1,159		747		1,605
Gross reductions - prior year tax positions		(348)		(4,457)		(333)
Gross reductions - Acquired tax positions settled with tax authorities		(1,241)		-		-
Impact of change in foreign exchange rates		132		(23)		(42)
Unrecognized tax benefits at end of year	$	11,049	$	11,347	$	13,120

Schedule of income tax expense

	Year ended December 31,
(in thousands)	2017		2016		2015
Current expense (benefit)
United States	$	(906)	$	3,702	$	5,455
Foreign		28,109		28,156		20,351
Current income tax expense (benefit)		27,203		31,858		25,806
Deferred expense (benefit)
United States		27,770		9,489		(152)
Foreign		83		(1,640)		2,340
Deferred income tax expense (benefit)		27,853		7,849		2,188
Total income tax expense	$	55,056	$	39,707	$	27,994

Schedule of components of net deferred tax assets (liabilities)

	December 31,
(in thousands)	2017		2016
Deferred tax assets
Compensation and benefits	$	14,060	$	22,053
Share-based compensation		5,085		5,474
Equity appreciation rights		-		57,146
Pension and other postretirement benefits		30,564		45,926
Inventories		10,843		9,120
Accounts receivable		2,016		2,942
Customer sales incentives		2,255		3,254
Transaction costs		1,804		3,157
Other reserves		3,255		5,764
Interest		562		2,260
Miscellaneous		1,224		1,076
Foreign exchange derivative instruments		730		-
Net operating loss and other tax carryforwards		103,455		55,936
Gross deferred tax assets		175,853		214,108
Valuation allowance		(25,887)		(21,726)
Total deferred tax assets		149,966		192,382
Deferred tax liabilities
Property, plant and equipment		(11,325)		(17,496)
Identifiable intangible assets		(36,687)		(46,701)
Foreign exchange derivative instruments		-		(4,076)
Miscellaneous		(954)		(1,145)
Total deferred tax liabilities		(48,966)		(69,418)
Net deferred tax asset	$	101,000	$	122,964

Schedule of changes in valuation allowance for deferred tax assets

	Year ended December 31,
(in thousands)	2017		2016		2015
Valuation allowance at beginning of year	$	21,726	$	20,771	$	13,850
Increases (decreases) recorded to income tax provision		4,161		955		6,921
Valuation allowance at end of year	$	25,887	$	21,726	$	20,771

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Interest Expense and Other (Income) Expense, Net (Tables)

12 Months Ended

Dec. 31, 2017

Interest Expense and Other (Income) Expense, Net

Schedule of components of interest expense, net

	Year ended December 31,
(in thousands)	2017		2016		2015
Interest expense - related party	$	—	$	28,146	$	35,420
Interest expense - third party		16,907		23,113		26,567
Interest income - third party		(1,198)		(1,351)		(1,693)
Total interest expense, net	$	15,709	$	49,908	$	60,294

Schedule of Other Nonoperating Income (Expense) [Table Text Block]

	Year ended December 31,
(in thousands)	2017		2016		2015
Loss on fair value of common stock warrants	$	—	$	6,112	$	28,364
Indemnification (gains) losses		177		(2,174)		(3,007)
Other gains		(1,254)		(2,232)		(218)
Total other (income) expense, net	$	(1,077)	$	1,706	$	25,139

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Common Stock (Tables)

12 Months Ended

Dec. 31, 2017

Common Stock.

Schedule of declared dividends per share

	Dividends per Share		Amounts (in thousands)
2017:
Fourth Quarter	$	0.12	$	9,098
Third Quarter		0.12		9,146
Second Quarter		0.12		9,149
First Quarter		0.12		9,152
Total dividends declared	$	0.48	$	36,545

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Equity Incentive Plans (Tables)

12 Months Ended

Dec. 31, 2017

Equity Incentive Plans

Schedule of summary of the Company’s restricted and performance stock units

			Weighted-
	Number		Average
	of		Fair
	RSUs and PSUs		Value
Outstanding at December 31, 2015		—	$	—
Granted		2,459,166		20.40
Outstanding at December 31, 2016		2,459,166	$	20.40
Granted		238,196		18.82
Vested		(437,188)		20.33
Forfeited		(199,320)		20.45
Outstanding at December 31,  2017		2,060,854	$	20.23

Schedule of the company's EAR activity

			Weighted-		Weighted-
	Number		Average		Average		Aggregate
	of		Exercise		Remaining		Intrinsic
(in thousands, except share and per share amounts)	Awards		Price		Contractual Term		Value
Outstanding at December 31, 2015		9,180,000	$	11.40		1 year	$	171,712
Settled		(1,566,000)		11.12				—
Outstanding at December 31, 2016		7,614,000		19.90				151,511
Settled		(7,614,000)		(19.90)				—
Outstanding at December 31,  2017		—		—				—

Schedule of the allocation of share-based compensation expense attributed to RSUs, PSUs, EARs and stock options in the consolidated statement of operations

	Year ended December 31,
(in thousands)	2017		2016		2015
Cost of goods sold	$	408	$	434	$	670
Selling, general and administrative expense		13,687		18,622		48,377
Research and development		1,190		1,485		2,556
Total compensation expense before income tax		15,285		20,541		51,603
Income tax benefit		3,158		6,481		17,821
Total compensation expense, net of tax	$	12,127	$	14,060	$	33,782

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Accumulated Other Comprehensive Income (Loss), Net of Tax (Tables)

12 Months Ended

Dec. 31, 2017

Accumulated Other Comprehensive Income (Loss), Net of Tax

Schedule of changes in each component of accumulated comprehensive income (loss), net of tax effects

	Foreign		Gains (Losses) on		Gains (Losses)		Pension and		Accumulated
	Currency		Foreign Exchange		on Available-		Other		Other
	Translation		Derivative		for-Sale		Postretirement		Comprehensive
(in thousands)	Adjustments		Instruments		Securities		Adjustments		Loss
Balances at December 31, 2015	$	(70,019)	$	9,166	$	1,504	$	(7,885)	$	(67,234)
Other comprehensive income (loss) before reclassifications		(14,656)		7,014		51		(16,781)		(24,372)
Amounts reclassified from accumulated other comprehensive loss		-		(5,194)		-		709		(4,485)
Tax benefit (expense)		-		(451)		(19)		5,727		5,257
Balances at December 31, 2016	$	(84,675)	$	10,535	$	1,536	$	(18,230)	$	(90,834)
Other comprehensive income (loss) before reclassifications		26,964		(15,558)		150		(9,870)		1,686
Amounts reclassified from accumulated other comprehensive loss		-		(1,329)		-		2,981		1,652
Tax benefit		-		4,072		35		1,698		5,805
Balances at December 31, 2017	$	(57,711)	$	(2,280)	$	1,721	$	(23,421)	$	(81,691)

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Net Income per Common Share (Tables)

12 Months Ended

Dec. 31, 2017

Net Income per Common Share

Schedule of computation of basic and diluted net income per common share

	Year ended
	December 31,
(in thousands, except share and per share amounts)	2017		2016		2015
Net income (loss) attributable to Acushnet Holdings Corp.	$	92,114	$	45,012	$	(966)
Less: dividends earned by preferred shareholders		-		(11,576)		(13,785)
Less: allocation of undistributed earnings to preferred shareholders		-		(10,247)		-
Net income (loss) attributable to common stockholders - basic		92,114		23,189		(14,751)
Adjustments to net income (loss) for dilutive securities		-		16,475		-
Net income (loss) attributable to common stockholders - diluted	$	92,114	$	39,664	$	(14,751)
Weighted average number of common shares:
Basic		74,399,836		31,247,643		19,939,293
Diluted		74,590,999		64,323,742		19,939,293
Net income (loss) per common share attributable to Acushnet Holdings Corp.:
Basic	$	1.24	$	0.74	$	(0.74)
Diluted	$	1.23	$	0.62	$	(0.74)

Schedule of securities excluded from the calculation of diluted weighted average common shares.

	Year ended
	December 31,
	2017		2016		2015
Series A preferred stock		-		13,807,486		16,542,243
Stock options		-		-		1,089
Warrants to purchase common stock		-		1,807,171		4,891,887
Convertible notes		-		-		32,624,820
RSUs		360,659		-		-

XML

Segment Information (Tables)

12 Months Ended

Dec. 31, 2017

Segment Information

Schedule of information by reportable segment and a reconciliation to reported amounts

(in thousands)	Year ended December 31,
	2017		2016		2015
Net sales
Titleist golf balls	$	512,041	$	513,899	$	535,465
Titleist golf clubs		397,987		430,966		388,304
Titleist golf gear		142,911		136,208		129,408
FootJoy golf wear		437,455		433,061		418,852
Other		69,864		58,141		30,929
Total net sales	$	1,560,258	$	1,572,275	$	1,502,958
Segment operating income
Titleist golf balls	$	76,870	$	76,236	$	92,507
Titleist golf clubs		31,031		50,500		33,593
Titleist golf gear		16,584		12,119		12,170
FootJoy golf wear		26,380		18,979		26,056
Other		14,863		7,299		4,056
Total segment operating income		165,728		165,133		168,382
Reconciling items:
Interest expense, net		(15,709)		(49,908)		(60,294)
EAR expense		-		(6,047)		(45,814)
Loss on fair value of common stock warrants		-		(6,112)		(28,364)
Transaction fees		(686)		(16,817)		(2,141)
Other		2,343		2,973		381
Total income before income tax	$	151,676	$	89,222	$	32,150
Depreciation and amortization
Titleist golf balls	$	25,545	$	26,104	$	26,962
Titleist golf clubs		7,233		7,021		7,060
Titleist golf gear		1,425		1,250		1,368
FootJoy golf wear		6,058		5,759		5,540
Other		610		700		772
Total depreciation and amortization	$	40,871	$	40,834	$	41,702

Schedule of information as to the Company's operations in different geographical areas. Net sales are categorized based on the location in which the sale originates. Long-lived assets (property, plant and equipment) are categorized based on their location of domicile.

	Year ended December 31,
(in thousands)	2017		2016		2015
Net sales
United States	$	789,879	$	804,516	$	805,470
EMEA (1)		205,200		210,088		201,106
Japan		201,264		219,021		182,163
Korea		200,394		175,956		144,956
Rest of world		163,521		162,694		169,263
Total net sales	$	1,560,258	$	1,572,275	$	1,502,958

(1) Europe, the Middle East and Africa (“EMEA”)

Long-lived assets (property, plant and equipment) are categorized based on their location of domicile.

	Year ended December 31,
(in thousands)	2017		2016
Long-lived assets
United States	$	148,678	$	157,884
EMEA		9,669		8,619
Japan		770		628
Korea		3,782		1,811
Rest of world (2)		66,023		70,806
Total long-lived assets	$	228,922	$	239,748

(2) Includes manufacturing facilities in Thailand with long lived assets of $53.8 million and $57.8 million as of December 31, 2017 and 2016, respectively.

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies

Schedule of purchase obligations

	Payments Due by Period
(in thousands)	2018		2019		2020		2021		2022		Thereafter
Purchase obligations	$	141,278	$	10,188	$	3,737	$	405	$	2	$	—

Schedule of future minimum rental payments under noncancelable operating leases

(in thousands)
Year ending December 31,
2018	$	12,119
2019		10,286
2020		8,447
2021		6,247
2022		4,228
Thereafter		14,418
Total minimum rental payments	$	55,745

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Unaudited Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2017

Unaudited Quarterly Financial Data

Tabular disclosures of summary of quarterly results

	Quarter ended (unaudited)
(in thousands)	December 31,		September 30,		June 30,		March 31,
2017
Net sales	$	351,392	$	347,263	$	427,988	$	433,615
Gross profit		178,500		172,968		222,909		226,415
Income from operations		26,370		18,265		57,385		64,288
Net income		12,318		10,634		34,038		39,630
Net income attributable to Acushnet Holdings Corp.		11,666		9,318		33,016		38,114
Net income per common share attributable to Acushnet Holdings Corp.:
Basic		$ 0.16		$ 0.13		$ 0.44		$ 0.51
Diluted		$ 0.16		$ 0.12		$ 0.44		$ 0.51

	Quarter ended (unaudited)
(in thousands)	December 31,		September 30,		June 30,		March 31,
2016
Net sales	$	329,761	$	339,318	$	463,261	$	439,935
Gross profit		167,994		166,902		237,960		225,869
Income from operations		7,608		9,606		66,437		57,185
Net income (loss)		1,247		(4,402)		27,478		25,192
Net income (loss) attributable to Acushnet Holdings Corp.		(179)		(5,526)		27,055		23,662
Net income (loss) per common share attributable to Acushnet Holdings Corp.:
Basic		$ (0.02)		$ (0.38)		$ 0.62		$ 0.53
Diluted		$ (0.02)		$ (0.38)		$ 0.39		$ 0.35

XML

Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Millions			3 Months Ended				12 Months Ended
	Nov. 02, 2016 $ / shares shares	Oct. 14, 2016	Dec. 31, 2017 USD ($) $ / shares	Sep. 30, 2017 $ / shares	Jun. 30, 2017 $ / shares	Mar. 31, 2017 $ / shares	Dec. 31, 2017 USD ($) $ / shares	Dec. 31, 2016 USD ($)	Oct. 02, 2016
Cash and Restricted Cash
Restricted cash | $			$ 2.3				$ 2.3	$ 3.1
Allowance for Sales Returns
Allowance for sales returns | $							$ 13.5	9.8
Dividend declarations
Dividends per Share | $ / shares			$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.48
VIE
Variable interest entities
Ownership percentage			40.00%				40.00%
Outstanding Balance | $			$ 0.0				$ 0.0	0.0
Class of Stock, Common
Initial public offering
Shares converted | shares	11,556,495
Debt converted | shares	22,791,852
Stock split		9
Class of Stock, Common | Initial public offering
Initial public offering
Shares issued | shares	19,333,333
Share price (in dollars per share) | $ / shares	$ 17.00
Class of Stock, Common | Over-allotment option
Initial public offering
Shares issued | shares	2,899,999
Share price (in dollars per share) | $ / shares	$ 17.00
Magnus | Class of Stock, Common
Initial public offering
Shares purchased by Magnus | shares	14,818,720
Convertible debt
Initial public offering
Interest rate (as a percent)									7.50%
Accounts payable
Cash and Restricted Cash
Book Overdrafts | $			2.9				2.9	3.6
Deposits
Allowance for Sales Returns
Concentration risk | $			$ 44.7				$ 44.7	$ 75.6

XML

Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details)	12 Months Ended
	Dec. 31, 2017
Maximum
Property, Plant and Equipment
Weighted average useful life	10 years
Minimum
Property, Plant and Equipment
Weighted average useful life	3 years
Buildings and improvements | Maximum
Property, Plant and Equipment
Estimated useful lives of property, plant and equipment	40 years
Buildings and improvements | Minimum
Property, Plant and Equipment
Estimated useful lives of property, plant and equipment	15 years
Machinery and equipment | Maximum
Property, Plant and Equipment
Estimated useful lives of property, plant and equipment	10 years
Machinery and equipment | Minimum
Property, Plant and Equipment
Estimated useful lives of property, plant and equipment	3 years
Furniture, fixtures and computer hardware | Maximum
Property, Plant and Equipment
Estimated useful lives of property, plant and equipment	10 years
Furniture, fixtures and computer hardware | Minimum
Property, Plant and Equipment
Estimated useful lives of property, plant and equipment	3 years
Computer software | Maximum
Property, Plant and Equipment
Estimated useful lives of property, plant and equipment	10 years
Computer software | Minimum
Property, Plant and Equipment
Estimated useful lives of property, plant and equipment	1 year

XML

Summary of Significant Accounting Policies - Additional Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Indefinite-Lived Intangible Assets
Impairment of goodwill	$ 0	$ 0	$ 0
impairment of trademarks	0
Advertising and Promotion
Shipping and handling costs included in selling expenses	32,500	32,400	32,600
Selling, general and administrative
Advertising and Promotion
Advertising and promotional expense	192,700	196,000	203,300
Foreign currency translation and transactions
Transaction gain (loss) included in selling, general and administrative expense	$ 4,100	$ 1,200	$ 4,700
Maximum
Product Warranty
Product warranty duration	2 years
Minimum
Product Warranty
Product warranty duration	1 year

XML

Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of year	$ 12,255	$ 12,363	$ 8,528
Bad debt expense	337	6,507	4,771
Amount of receivables written off	(3,300)	(6,315)	(634)
Foreign currency translation	683	(300)	(302)
Balance at end of year	$ 9,975	$ 12,255	$ 12,363

XML

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Inventories
Raw materials and supplies	$ 72,342	$ 55,424
Work-in-process	23,956	21,558
Finished goods	267,664	246,307
Inventories	$ 363,962	$ 323,289

XML

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 409,292	$ 391,112
Accumulated depreciation and amortization	(180,370)	(151,364)
Property, plant and equipment, net	228,922	239,748
Software development cost capitalized
Software development cost capitalized	3,100	8,200	$ 43,000
Depreciation and amortization
Amortization expense, capitalized software and development	6,400	5,800	5,500
Total depreciation and amortization expense	40,871	40,834	41,702
Property, plant and equipment
Depreciation and amortization
Total depreciation and amortization expense	31,600	31,500	32,500
Land
Property, Plant and Equipment, Net
Property, plant and equipment, gross	14,618	14,500
Buildings and improvements
Property, Plant and Equipment, Net
Property, plant and equipment, gross	138,570	133,844
Machinery and equipment
Property, Plant and Equipment, Net
Property, plant and equipment, gross	148,999	143,784
Furniture, fixtures and computer hardware
Property, Plant and Equipment, Net
Property, plant and equipment, gross	32,783	29,326
Computer software
Property, Plant and Equipment, Net
Property, plant and equipment, gross	60,736	58,462
Construction in progress
Property, Plant and Equipment, Net
Property, plant and equipment, gross	13,586	11,196
Software development cost capitalized
Software development cost capitalized	700	800	2,400
Software placed into service
Software development cost capitalized
Software development cost capitalized	$ 2,400	$ 7,400	$ 40,600

XML

Goodwill and Identifiable Intangible Assets, Net - Net carrying value & reportable segments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Net carrying value of goodwill
Balances at beginning of year	$ 179,241	$ 181,179
Foreign currency translation	6,700	(1,938)
Balances at end of year	185,941	179,241
Titleist golf balls
Net carrying value of goodwill
Balances at beginning of year	105,422	106,561
Foreign currency translation	3,941	(1,139)
Balances at end of year	109,363	105,422
Titleist golf clubs
Net carrying value of goodwill
Balances at beginning of year	51,199	51,753
Foreign currency translation	1,914	(554)
Balances at end of year	53,113	51,199
Titleist golf gear
Net carrying value of goodwill
Balances at beginning of year	12,415	12,549
Foreign currency translation	464	(134)
Balances at end of year	12,879	12,415
FootJoy golf wear
Net carrying value of goodwill
Balances at beginning of year	2,278	2,303
Foreign currency translation	85	(25)
Balances at end of year	2,363	2,278
Other
Net carrying value of goodwill
Balances at beginning of year	7,927	8,013
Foreign currency translation	296	(86)
Balances at end of year	$ 8,223	$ 7,927

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Goodwill and Identifiable Intangible Assets, Net - Amortization expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Finite Lived And Indefinite Lived Intangible Assets By Major Class[Line Items]
Accumulated amortization	$ (72,971)	$ (63,434)
Finite lived intangible assets, Net book value	53,134
Intangible assets, Gross	554,205	553,422
Intangible assets, Net book value	481,234	489,988
Impairment of goodwill	0	0	$ 0
Impairment charges to indefinite-lived intangible assets	0	0	0
Amortization of intangible assets	$ 9,300	9,300	9,300
Completed Technology
Finite Lived And Indefinite Lived Intangible Assets By Major Class[Line Items]
Weighted average useful life	13 years
Finite lived intangible assets, Gross	$ 73,900	73,900
Accumulated amortization	(35,486)	(29,956)
Finite lived intangible assets, Net book value	$ 38,414	43,944
Customer Relationships
Finite Lived And Indefinite Lived Intangible Assets By Major Class[Line Items]
Weighted average useful life	20 years
Finite lived intangible assets, Gross	$ 19,666	18,999
Accumulated amortization	(6,309)	(5,146)
Finite lived intangible assets, Net book value	$ 13,357	13,853
Licensing Fees and Other
Finite Lived And Indefinite Lived Intangible Assets By Major Class[Line Items]
Weighted average useful life	7 years
Finite lived intangible assets, Gross	$ 32,539	32,423
Accumulated amortization	(31,176)	(28,332)
Finite lived intangible assets, Net book value	1,363	4,091
Licensing Fees and Other | Cost of goods sold
Finite Lived And Indefinite Lived Intangible Assets By Major Class[Line Items]
Amortization of intangible assets	2,700	2,700	$ 2,700
Trademarks
Finite Lived And Indefinite Lived Intangible Assets By Major Class[Line Items]
Indefinite lived intangible assets	$ 428,100	$ 428,100

XML

Goodwill and Identifiable Intangible Assets, Net - Class of identifiable intangible assets (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Amortization expense related to intangible assets
2018	$ 7,878
2019	6,269
2020	5,926
2021	5,926
2022	5,926
Thereafter	21,209
Total	$ 53,134

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Product Warranty (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Activity for accrued warranty expense
Balance at beginning of period	$ 3,526	$ 3,345	$ 2,989
Provision	5,801	6,200	5,399
Claims paid/costs incurred	(5,653)	(5,940)	(4,929)
Foreign currency translation	149	(79)	(114)
Balance at end of period	$ 3,823	$ 3,526	$ 3,345

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Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017
Related Party Transaction [Line Items]
Related party interest expense	$ 28,146	$ 35,420
Other current assets
Related Party Transaction [Line Items]
Receivables from related party	$ 900		$ 500

XML

Debt and Financing Arrangements - Schedule of debt and financing arrangements (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Debt and financing arrangements
Long-term debt	$ 446,563
Other short-term borrowings	10,298
Capital lease obligations	22	$ 491
Debt issuance costs	(2,896)	(3,706)
Total	464,053	409,593
Less : short term debt and current portion of long term debt	47,083	61,245
Long-term debt and capital lease obligations	416,970	348,348
Delayed Draw Term Loan A Facility
Debt and financing arrangements
Long-term debt, gross	95,000
Revolving credit facility
Debt and financing arrangements
Long-term debt	10,066	42,495
Term Loan
Debt and financing arrangements
Long-term debt	$ 351,563	$ 370,313

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Debt and Financing Arrangements - Senior Secured Credit Facility (Details) $ in Thousands, ₩ in Millions, £ in Millions, CAD in Millions					3 Months Ended	12 Months Ended
	Sep. 22, 2017 KRW (₩) shares	Aug. 09, 2017 USD ($)	Jul. 28, 2016 CAD	Jul. 28, 2016 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 22, 2017 USD ($)	Aug. 09, 2017 GBP (£)	Aug. 09, 2017 CAD	Aug. 09, 2017 USD ($)	Apr. 27, 2016 GBP (£)	Apr. 27, 2016 CAD	Apr. 27, 2016 USD ($)
Line of Credit Facility [Line Items]
Cash on hand				$ 23,600
Proceeds from delayed draw term loan A facility						$ 100,000
Available borrowing capacity						$ 254,800
Minimum
Line of Credit Facility [Line Items]
Beneficial Ownership percentage for change of control						35.00%
Letters of credit
Line of Credit Facility [Line Items]
Revolving credit facility						$ 10,200
Senior Secured Credit Facility
Line of Credit Facility [Line Items]
Contingent maximum increase to Borrowing Capacity		$ 200,000
Secured leverage ratio									2.00	2.00	2.00
Senior Secured Credit Facility | One month LIBOR | Minimum
Line of Credit Facility [Line Items]
Variable rate of interest						1.25%
Senior Secured Credit Facility | One month LIBOR | Maximum
Line of Credit Facility [Line Items]
Variable rate of interest						2.00%
Senior Secured Credit Facility | Letters of credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity											$ 25,000			$ 20,000
Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity														275,000
Proceeds from revolver loan facility			CAD 4.0	3,000
Weighted average interest rate						4.44%	2.48%
Swing line
Line of Credit Facility [Line Items]
Maximum borrowing capacity														25,000
Swing line | Federal funds rate
Line of Credit Facility [Line Items]
Variable rate of interest						0.50%
Swing line | One Month LIBOR
Line of Credit Facility [Line Items]
Floor rate						1.00%
Swing line | One Month LIBOR | Minimum
Line of Credit Facility [Line Items]
Leverage ratio basis spread						0.25%
Swing line | One Month LIBOR | Maximum
Line of Credit Facility [Line Items]
Leverage ratio basis spread						1.00%
Alternative Currency Sublimit
Line of Credit Facility [Line Items]
Maximum borrowing capacity														100,000
Letters of credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity						$ 29,200	$ 24,000
Revolving credit facility						$ 14,300	$ 11,600
Term Loan A Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity														375,000
Proceeds from revolver loan facility				$ 375,000
Delayed Draw Term Loan A Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity					$ 100,000									$ 100,000
Acushnet Canada | Senior Secured Credit Facility | CDOR | Minimum
Line of Credit Facility [Line Items]
Variable rate of interest						1.25%
Acushnet Canada | Senior Secured Credit Facility | CDOR | Maximum
Line of Credit Facility [Line Items]
Variable rate of interest						2.00%
Acushnet Canada | Senior Secured Credit Facility | Letters of credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity | CAD										CAD 35.0
Acushnet Canada | Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity | CAD													CAD 25.0
Acushnet Europe | Senior Secured Credit Facility | Letters of credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity | £									£ 30.0
Acushnet Europe | Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity | £												£ 20.0
Equity Appreciation Rights | Revolving credit facility
Line of Credit Facility [Line Items]
Proceeds from revolver loan facility					$ 47,800
Magnus
Line of Credit Facility [Line Items]
Number of shares pledged | shares	39,345,151
Percentage of shares pledged	52.60%
Loan to Value ratio (as a percent)	75.00%
Number of grace days to cure breach	60 years
Magnus | Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	₩ 10.0							$ 9,400
Exchange rate	1,068.27							1,068.27
Term Loan | Senior Secured Credit Facility
Line of Credit Facility [Line Items]
Commitment fee of unused portion (as a percent)						0.30%
Percentage of net cash proceeds of all non ordinary course asset sales						100.00%
Percentage of net proceeds of issuance or incurrence of debt						100.00%
Period of reinvest net cash proceeds from day of receipt						12 months
Term Loan | Senior Secured Credit Facility | First and Second Year After July 28, 2016
Line of Credit Facility [Line Items]
Percentage of original principal amount payable						5.00%
Term Loan | Senior Secured Credit Facility | Third And Fourth Year After July 28, 2016
Line of Credit Facility [Line Items]
Percentage of original principal amount payable						7.50%
Term Loan | Senior Secured Credit Facility | Fifth Year After July 28, 2016
Line of Credit Facility [Line Items]
Percentage of original principal amount payable						10.00%
Term Loan | Senior Secured Credit Facility | Minimum
Line of Credit Facility [Line Items]
Commitment fee of unused portion (as a percent)						0.20%
Term Loan | Senior Secured Credit Facility | Maximum
Line of Credit Facility [Line Items]
Commitment fee of unused portion (as a percent)						0.35%
Period of reinvest net cash proceeds from day of receipt						18 months
Term Loan | Delayed Draw Term Loan A Facility
Line of Credit Facility [Line Items]
Variable rate of interest						3.32%	2.27%
Term Loan | Magnus
Line of Credit Facility [Line Items]
Maximum borrowing capacity	₩ 399.2							$ 373,700
Term of the loan	3 years
Exchange rate	1,068.27							1,068.27

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Debt and Financing Arrangements - Convertible Notes (Details) - Convertible notes - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Nov. 01, 2016
Convertible Notes
Aggregate principal amount			$ 362.5
Interest expense, excluding amortization of debt issuance costs	$ 22.6	$ 27.2

XML

Debt and Financing Arrangements - Secured Floating Rate Notes (Details) $ in Millions	Jul. 28, 2016 USD ($)
Secured Floating Rate Notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 375.0

XML

Debt and Financing Arrangements - Other Short-Term Borrowings (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
Short-term Debt [Line Items]
Other short-term borrowings	$ 10,298
Unsecured Debt [Member]
Short-term Debt [Line Items]
Other short-term borrowings	53,800
Outstanding borrowings	$ 10,300
Weighted average interest rate	0.73%

XML

Debt and Financing Arrangements - Letters of Credit (Details) - Letters of credit - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Revolving credit facility	$ 14.3	$ 11.6
Line of credit secured	11.2	8.6
Maximum borrowing capacity	$ 29.2	$ 24.0

XML

Debt and Financing Arrangements - Payments of Debt Obligations due by Period (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Payments of Debt Obligations due by Period
2018	$ 26,719
2019	35,625
2020	38,594
2021	345,625
Total	$ 446,563

XML

Derivative Financial Instruments - Bonds with Common Stock Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Derivative [Line Items]
Amount of warrants exercised			$ 34,503	$ 34,503
Fila Korea Ltd | Common Stock Warrants
Derivative [Line Items]
Exercise price (in dollars per share)	$ 11.11	$ 11.11
Amount of warrants exercised	$ 34,500	$ 34,500

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Derivative Financial Instruments - Fair value of foreign exchange derivative instruments in consolidated balance sheets (Details) - Foreign exchange forward contracts - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Notional amount	$ 278,900	$ 371,200
Maximum
Derivatives, Fair Value [Line Items]
Term of derivative contract	24 months
Derivative designated as hedging | Other current assets
Derivatives, Fair Value [Line Items]
Asset derivatives	$ 4,675	11,357
Derivative designated as hedging | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Asset derivatives	562	5,286
Derivative designated as hedging | Other current liabilities
Derivatives, Fair Value [Line Items]
Liability derivatives	6,360	1,106
Derivative designated as hedging | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Liability derivatives	$ 276	$ 32

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Derivative Financial Instruments - Effect of foreign exchange derivative instruments in comprehensive income (loss) and statement of operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Expected reclassification of loss recorded in accumulated other comprehensive loss into earnings during next twelve months	$ 2,100
Derivative designated as hedging | Foreign exchange forward contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in OCI	(15,558)	$ 7,014	$ 14,964
Gain (Loss) Recognized in Statement of Operations	(1,403)	4,277	30,538
Derivative designated as hedging | Foreign exchange forward contracts | Cash flow
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in OCI	(15,558)	7,014	14,964
Derivative designated as hedging | Cost of goods sold | Foreign exchange forward contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Statement of Operations	1,329	5,194	26,805
Derivative designated as hedging | Selling, general and administrative | Foreign exchange forward contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Statement of Operations	$ (2,732)	$ (917)	$ 3,733

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Fair Value Measurements - Assets and liabilities at fair value (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Liabilities
Fair value asset, Transfer between Level 1 to Level 2	$ 0	$ 0
Fair value asset, Transfer between Level 2 to Level 1	0	0
Fair value Liabilities, Transfer between Level 1 to Level 2	0	0
Fair value Liabilities, Transfer between Level 2 to Level 1	0	0
Level 1
Assets
Total assets	12,503	14,088
Liabilities
Total liabilities	1,866	1,846
Level 2
Assets
Total assets	5,237	16,643
Liabilities
Total liabilities	6,636	1,138
Other current assets | Rabbi trust | Level 1
Assets
Total assets	10,637	6,994
Other current assets | Foreign exchange derivative instruments | Level 2
Assets
Total assets	4,675	11,357
Other noncurrent assets | Rabbi trust | Level 1
Assets
Total assets		5,248
Other noncurrent assets | Foreign exchange derivative instruments | Level 2
Assets
Total assets	562	5,286
Other noncurrent assets | Deferred compensation program assets | Level 1
Assets
Total assets	1,866	1,846
Other current liabilities | Foreign exchange derivative instruments | Level 2
Liabilities
Total liabilities	6,360	1,106
Other noncurrent liabilities | Foreign exchange derivative instruments | Level 2
Liabilities
Total liabilities	276	32
Other noncurrent liabilities | Deferred compensation program liabilities | Level 1
Liabilities
Total liabilities	$ 1,866	$ 1,846

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Fair Value Measurements - Reconciliation for liabilities measure at fair value using level 3 (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($)
Reconciliation of Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)
Balance at beginning of period	$ 22,884
Common stock warrant exercise	(28,996)
Total losses included in earnings	$ 6,112

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Pension and Other Postretirement Benefits - (Details) - USD ($) $ in Thousands		12 Months Ended
	Nov. 13, 2015	Dec. 31, 2017	Dec. 31, 2015
Pension and Other Postretirement Benefits
Service period	1 year
Vesting service period	10 years
Age plus vesting period	70 years
Cap amount	$ 150,000
Curtailment gain			$ 2,400
Minimum
Pension and Other Postretirement Benefits
Age limit		50 years
Maximum
Pension and Other Postretirement Benefits
Age limit		65 years

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Pension and Other Postretirement Benefits - Plan assets and funded status (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Change in projected benefit obligation (PBO)
Curtailment gain			$ 2,400
Pension Benefits (Underfunded)
Change in projected benefit obligation (PBO)
Projected benefit obligation at beginning of year	$ 284,104	$ 271,462
Service cost	9,217	9,787
Interest cost	10,783	11,077
Actuarial (gain) loss	34,557	14,095
Settlements	(20,663)	(6,714)
Curtailment gain		(6,714)
Benefit payments	(2,719)	(15,515)
Foreign currency translation	1,435	122
Adjustment for movement from underfunded to overfunded	168	(210)
Projected benefit obligation at end of year	316,882	284,104	271,462
Accumulated benefit obligation at end of year	277,067	247,009
Change in plan assets
Fair value of plan assets at beginning of year	161,088	157,729
Return on plan assets	23,757	7,203
Employer contributions	21,280	18,335
Settlements	(20,663)
Benefit payments	(2,719)	(15,515)
Adjustment for movement from underfunded to overfunded	194
Foreign currency translation	156	50
Fair value of plan assets at end of year	183,093	161,088	157,729
Funded status (fair value of plan assets less PBO)	(133,789)	(123,016)
Pension Benefits (Overfunded)
Change in projected benefit obligation (PBO)
Projected benefit obligation at beginning of year	39,735	38,287
Service cost (negative)		(24)
Interest cost	1,049	1,279
Actuarial (gain) loss	(2,000)	7,711
Settlements	(5,172)
Benefit payments	(635)	(796)
Foreign currency translation	2,659	(6,932)
Adjustment for movement from underfunded to overfunded	(168)	210
Projected benefit obligation at end of year	35,468	39,735	38,287
Accumulated benefit obligation at end of year	34,190	37,289
Change in plan assets
Fair value of plan assets at beginning of year	45,342	43,768
Return on plan assets	6,254	8,280
Employer contributions	1,697	2,012
Settlements	(5,172)
Benefit payments	(635)	(796)
Adjustment for movement from underfunded to overfunded	(194)
Foreign currency translation	3,475	(7,922)
Fair value of plan assets at end of year	50,767	45,342	43,768
Funded status (fair value of plan assets less PBO)	15,299	5,607
Postretirement Benefits
Change in projected benefit obligation (PBO)
Projected benefit obligation at beginning of year	20,264	20,079
Service cost	955	888	1,060
Interest cost	713	779	787
Actuarial (gain) loss	(5,075)	(572)
Plan amendments		283
Participants' contributions	355	921
Benefit payments	(1,160)	(2,114)
Projected benefit obligation at end of year	16,052	20,264	$ 20,079
Accumulated benefit obligation at end of year	16,052	20,264
Change in plan assets
Employer contributions	805	1,193
Participants' contributions	355	921
Benefit payments	(1,160)	(2,114)
Funded status (fair value of plan assets less PBO)	$ (16,052)	$ (20,264)

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Pension and Other Postretirement Benefits - Recognized on consolidated balance sheets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets and liabilities recognized on consolidated balance sheets:
Accrued pension and postretirement benefits	$ (130,160)	$ (135,339)
Expected prior service cost (credit) and actuarial (gain) loss will be amortized in next fiscal year
Expected actuarial (gain) loss will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year	100
Pension Benefits
Assets and liabilities recognized on consolidated balance sheets:
Other noncurrent assets	15,299	5,607
Accrued compensation and benefits	(18,933)	(7,149)
Accrued pension and postretirement benefits	(114,856)	(115,867)
Net amount recognized	(118,490)	(117,409)
Accumulated other comprehensive income (loss) on consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost:
Net actuarial (gain) loss at beginning of year	33,736	18,374	$ 19,878
Current year actuarial (gain) loss	14,554	18,425	17,835
Amortization of actuarial (gain) loss	(804)	(485)	(1,152)
Curtailment impact			(19,146)
Settlement impact	(2,740)	(1,124)
Prior service cost			1,331
Amortization of prior service cost (credit)	(175)	(175)	(22)
Foreign currency translation	321	(1,279)	(350)
Net actuarial (gain) loss at end of year	44,892	33,736	18,374
Expected prior service cost (credit) and actuarial (gain) loss will be amortized in next fiscal year
Expected prior service cost (credit) will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year	200
Expected actuarial (gain) loss will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year	2,100
Postretirement Benefits
Assets and liabilities recognized on consolidated balance sheets:
Accrued compensation and benefits	(748)	(784)
Accrued pension and postretirement benefits	(15,304)	(19,480)
Net amount recognized	(16,052)	(20,264)
Accumulated other comprehensive income (loss) on consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost:
Net actuarial (gain) loss at beginning of year	(8,055)	(8,840)	(7,270)
Current year actuarial (gain) loss	(5,075)	(573)	(2,228)
Amortization of actuarial (gain) loss	601	912	490
Prior service cost		283
Amortization of prior service cost (credit)	137	163	168
Net actuarial (gain) loss at end of year	(12,392)	$ (8,055)	$ (8,840)
Expected prior service cost (credit) and actuarial (gain) loss will be amortized in next fiscal year
Expected prior service cost (credit) will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year	100
Expected actuarial (gain) loss will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year	$ 1,400

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Pension and Other Postretirement Benefits - Periodic benefit cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension Benefits
Components of net periodic benefit cost
Service cost	$ 9,217	$ 9,763	$ 15,683
Interest cost	11,832	12,356	12,338
Expected return on plan assets	(12,006)	(12,189)	(11,372)
Curtailment Expense (Income)			(2,421)
Settlement expense	2,740	1,148
Amortization of net (gain) loss	804	471	1,152
Amortization of prior service cost (credit)	175	175	22
Net periodic benefit cost	12,762	11,724	15,402
Postretirement Benefits
Components of net periodic benefit cost
Service cost	955	888	1,060
Interest cost	713	779	787
Amortization of net (gain) loss	(601)	(912)	(490)
Amortization of prior service cost (credit)	(137)	(163)	(168)
Net periodic benefit cost	$ 930	$ 592	$ 1,189

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Pension and Other Postretirement Benefits - Weighted average assumptions (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Weighted average assumptions used to determine net cost for years ended December 31
Expected long-term rate of return on plan assets	5.77%
Pension Benefits
Weighted average assumptions used to determine benefit obligations at December 31
Discount rate	3.62%	4.17%
Rate of compensation increase	4.01%	4.02%
Weighted average assumptions used to determine net cost for years ended December 31
Discount rate	4.17%	4.16%	3.92%
Expected long-term rate of return on plan assets	5.77%	6.23%	6.15%
Rate of compensation increase	4.02%	4.07%	4.05%
Postretirement Benefits
Weighted average assumptions used to determine benefit obligations at December 31
Discount rate	3.61%	4.08%
Weighted average assumptions used to determine net cost for years ended December 31
Discount rate	4.08%	4.30%	3.90%

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Pension and Other Postretirement Benefits - Healthcare cost trend rates (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Minimum
Assumed healthcare cost trend rates used to determine benefit obligations and net cost:
Healthcare cost trend rate assumed for next year	5.50%	5.50%	5.75%
Maximum
Assumed healthcare cost trend rates used to determine benefit obligations and net cost:
Healthcare cost trend rate assumed for next year	8.50%	9.00%	10.00%
Postretirement Benefits Medical and Prescription Drug
Assumed healthcare cost trend rates used to determine benefit obligations and net cost:
Rate that the cost trend rate is assumed to decline (the ultimate trend rate)	4.50%	4.50%	4.50%
Year that the rate reaches the ultimate trend rate	2024	2024	2024

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Pension and Other Postretirement Benefits - One-percentage-point (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
One-percentage-point change in assumed healthcare cost trend rates:
Effect on total of service and interest cost, one-percentage point increase	$ 73	$ 104
Effect on total of service and interest cost, one-percentage point decrease	(65)	(91)
Effect on postretirement benefit obligation, one-percentage point increase	665	894
Effect on postretirement benefit obligation, one-percentage point decrease	$ (598)	$ (796)

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Pension and Other Postretirement Benefits - Plan assets and type of fair value measurement (Details) - Pension Benefits - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Pension and Other Postretirement Benefits
Fair Value of plan Assets	$ 233,860	$ 206,429
Level 2
Pension and Other Postretirement Benefits
Fair Value of plan Assets	1,794	1,628
Fixed income
Pension and Other Postretirement Benefits
Fair Value of plan Assets	1,794	1,628
Fixed income | Level 2
Pension and Other Postretirement Benefits
Fair Value of plan Assets	1,794	1,628
Commingled funds
Pension and Other Postretirement Benefits
Fair Value of plan Assets	$ 232,066	$ 204,801

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Pension and Other Postretirement Benefits - U.S. defined benefit plan (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Pension and Other Postretirement Benefits
Future expected blended long-term rate of return on plan assets (as a percent)	5.77%
U.S. defined benefit plan | Return-seeking investment
Pension and Other Postretirement Benefits
Asset allocation (as a percent)	64.00%	76.00%
U.S. defined benefit plan | Liability-hedging investment
Pension and Other Postretirement Benefits
Asset allocation (as a percent)	24.00%	36.00%

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Pension and Other Postretirement Benefits - Estimated Contributions and Estimated Future Retirement Benefit Payments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
Estimated contribution
Estimated contribution	$ 40,900
Pension Benefits
Estimated Future Retirement Benefit Payments, Year ending December 31,
2018	36,506
2019	20,544
2020	22,103
2021	23,751
2022	24,511
Thereafter	138,204
Total	265,619
Postretirement Benefits
Estimated Future Retirement Benefit Payments, Year ending December 31,
2018	748
2019	828
2020	943
2021	1,078
2022	1,214
Thereafter	7,096
Total	$ 11,907

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Pension and Other Postretirement Benefits - International Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension and Other Postretirement Benefits
Pension expense	$ 0.9	$ 1.0	$ 0.9
Expected actuarial loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in next fiscal year	0.1
International Plans
Pension and Other Postretirement Benefits
Total projected benefit obligations	53.6	54.4
Fair Value of plan Assets	$ 53.6	$ 47.6

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Pension and Other Postretirement Benefits - Defined Contribution Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension and Other Postretirement Benefits
Cash contributions	$ 13.8	$ 13.0	$ 9.4

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Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Federal statutory income tax rate (as a percent)		35.00%
Provisional income tax		$ 14.0
Provisional tax rate effect on remeasurement		10.2
Provisional increase of one-time transition tax liability of foreign subsidiaries		8.6
Tax on foreign income		23.8
Foreign tax credit		15.2
unremitted foreign earnings		$ 4.8
Forecast
Federal statutory income tax rate (as a percent)	21.00%

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Income Taxes - Components of income before income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Components of income before income taxes:
Domestic operations	$ 61,158	$ (3,995)	$ (48,544)
Foreign operations	90,518	93,217	80,694
Income before income taxes	$ 151,676	$ 89,222	$ 32,150

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Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Taxes
Federal statutory income tax rate (as a percent)	35.00%
Reconciliation of income taxes:
Income tax expense computed at federal statutory income tax rate	$ 53,086	$ 31,229	$ 11,252
Foreign taxes, net of credits	(15,545)	(1,804)	418
Transition tax ( net of federal tax credits generated)	8,593
U.S. rate change related to the 2017 Tax Act	10,198
Net adjustments for uncertain tax positions	508	706	4,731
State and local taxes	2,031	(525)	(1,108)
Equity appreciation rights	(765)	372	693
Transaction costs	189	3,078	414
Indemnified taxes	(115)	1,594	(1,106)
Fair value adjustment for common stock warrants		3,029	10,853
Valuation allowance	(219)	955	7,872
Deferred charge	(1,295)	1,009	807
Tax credits	(3,240)	(704)	(7,003)
Miscellaneous other, net	1,630	768	171
Tax benefit (expense)	$ 55,056	$ 39,707	$ 27,994
Effective income tax rate (as a percent)	36.30%	44.50%	87.10%

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Income Taxes - Unrecognized tax benefit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of activity related to unrecognized tax benefits, excluding interest and penalties:
Unrecognized tax benefits at beginning of year	$ 11,347	$ 13,120	$ 8,845
Gross reductions - prior year tax positions	(348)	(4,457)	(333)
Gross additions - prior year tax positions		1,960	3,045
Gross additions - current year tax positions	1,159	747	1,605
Gross reductions - Acquired tax positions settled with tax authorities	(1,241)
Impact of change in foreign exchange rates	132
Impact of change in foreign exchange rates		(23)	(42)
Unrecognized tax benefits at end of year	11,049	11,347	13,120
Liability of interest and penalties	2,700	2,300	1,900
Income Tax Expense (Benefit)	55,056	39,707	27,994
Beam Suntory Inc [Member]
Reconciliation of activity related to unrecognized tax benefits, excluding interest and penalties:
Unrecognized tax benefits, would affect the company's future effective tax rate if recognized next 12 months	4,900	5,900	4,200
Liability of interest and penalties	2,700	1,800	1,600
Income Tax Expense (Benefit)	$ 200	$ 2,200	$ 3,000

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Income Taxes - Income Tax Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current expense (benefit)
United States	$ (906)	$ 3,702	$ 5,455
Foreign	28,109	28,156	20,351
Current income tax expense (benefit)	27,203	31,858	25,806
Deferred expense (benefit)
United States	27,770	9,489	(152)
Foreign	83	(1,640)	2,340
Deferred Income Tax Expense (Benefit), Total	27,853	7,849	2,188
Income tax expense as reported	$ 55,056	$ 39,707	$ 27,994

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Income Taxes - Net deferred tax assets (liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets
Compensation and benefits	$ 14,060	$ 22,053
Share-based compensation	5,085	5,474
Equity appreciation rights		57,146
Pension and other postretirement benefits	30,564	45,926
Inventories	10,843	9,120
Accounts receivables	2,016	2,942
Customer sales incentives	2,255	3,254
Transaction costs	1,804	3,157
Other reserves	3,255	5,764
Interest	562	2,260
Miscellaneous	1,224	1,076
Foreign exchange derivative instruments	730
Net operating loss and other tax carryforwards	103,455	55,936
Gross deferred tax assets	175,853	214,108
Valuation allowance	(25,887)	(21,726)	$ (20,771)	$ (13,850)
Net deferred tax asset	149,966	192,382
Deferred tax liabilities
Property, plant and equipment	(11,325)	(17,496)
Identifiable intangible assets	(36,687)	(46,701)
Foreign exchange derivative instruments		(4,076)
Miscellaneous	(954)	(1,145)
Total deferred tax liabilities	(48,966)	(69,418)
Net deferred tax asset	$ 101,000	$ 122,964

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Income Taxes - NOL and Tax credit carryforwards (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
State
NOL and Tax credit carryfowards
Net operating loss carryforwards	$ 192.0	$ 117.2
Foreign
NOL and Tax credit carryfowards
Tax credit carryforwards	72.8	$ 46.0
Federal
NOL and Tax credit carryfowards
Net operating loss carryforwards	$ 26.4

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Income Taxes - Changes in valuation allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in valuation allowance for deferred tax assets:
Valuation allowance at beginning of year	$ 21,726	$ 20,771	$ 13,850
Increases (decreases) recorded to income tax provision	4,161	955	6,921
Valuation allowance at end of year	$ 25,887	$ 21,726	$ 20,771

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Interest Expense and Other (Income) Expense, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Interest Expense and Other (Income) Expense, Net
Interest expense - related party		$ 28,146	$ 35,420
Interest expense - third party	$ 16,907	23,113	26,567
Interest income - third party	(1,198)	(1,351)	(1,693)
Total interest expense, net	15,709	49,908	60,294
Other Nonoperating Income (Expense) [Abstract]
Loss on fair value of common stock warrants		6,112	28,364
Indemnification (gains) losses	177	(2,174)	(3,007)
Other gains	(1,254)	(2,232)	(218)
Other (income) expense, net	$ (1,077)	$ 1,706	$ 25,139

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Redeemable Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Nov. 01, 2016
Temporary Equity [Line Items]
Dividend declared		$ 17,316	$ 13,747
Dividend paid		17,316	$ 13,747
Redeemable Convertible Preferred Stock
Temporary Equity [Line Items]
Outstanding redeemable convertible preferred stock				1,838,027
Par value				$ 0.001
Dividend declared	$ 17,300	$ 13,700

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Common Stock (Details) $ / shares in Units, $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2017 USD ($) $ / shares shares	Sep. 30, 2017 USD ($) $ / shares	Jun. 30, 2017 USD ($) $ / shares	Mar. 31, 2017 USD ($) $ / shares	Dec. 31, 2017 USD ($) Vote $ / shares shares	Dec. 31, 2016 Vote $ / shares shares	Mar. 31, 2018 $ / shares
Common stock, shares authorized | shares	500,000,000				500,000,000	500,000,000
Common stock, par value (in dollars per share)	$ 0.001				$ 0.001	$ 0.001
Number of vote entitled | Vote					1	1
Total dividends declared | $	$ 9,098	$ 9,146	$ 9,149	$ 9,152	$ 36,545
Dividends per Share	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.48
Subsequent event
Dividends declared							$ 0.13

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Equity Incentive Plans - Restricted Stock and Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Equity Incentive Plans
Share reserved for issuance		7,804,279
Weighted - Average Fair Value
Weighted average period		1 year 4 months 24 days
Share-based compensation		$ 15,285	$ 14,494	$ 2,033
Chief Operating Officer
Weighted - Average Fair Value
Fair Value of grant	$ 3,000
Performance period	3 years
Percentage of vesting	33.33%
PSUs
Number of RSUs and PSUs
Vested (in shares)		0
Weighted - Average Fair Value
Unrecognized compensation expense		$ 6,100
Share-based compensation		6,000	6,100
RSUs
Weighted - Average Fair Value
Vested at end of the period		7,700
Unrecognized compensation expense		11,800
Share-based compensation		$ 9,300	$ 8,400
Common stock issued, restricted stock awards		437,188
Shares issued to satisfy tax withholding obligations		51,467
Omnibus Incentive 2015 Plan
Equity Incentive Plans
Share reserved for issuance		4,557,513
Omnibus Incentive 2015 Plan | PSUs
Weighted - Average Fair Value
Term of award			P3Y
Omnibus Incentive 2015 Plan | PSUs | Minimum
Weighted - Average Fair Value
Awards earned as percentage of specified compensation			0.00%
Omnibus Incentive 2015 Plan | PSUs | Maximum
Weighted - Average Fair Value
Awards earned as percentage of specified compensation			200.00%
Omnibus Incentive 2015 Plan | RSUs and PSUs
Number of RSUs and PSUs
Outstanding at beginning of the period		2,459,166
Granted (in shares)		238,196	2,459,166
Vested (in shares)		(437,188)
Forfeited (in shares)		(199,320)
Outstanding at end of the period		2,060,854	2,459,166
Weighted - Average Fair Value
Outstanding at beginning of the period		$ 20.40
Granted		18.82	$ 20.40
Vested		20.33
Forfeited		20.45
Outstanding at end of the period		$ 20.23	$ 20.40

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Equity Incentive Plans - Equity Appreciation Rights (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Aggregate Intrinsic Value
Share-based compensation	$ 15,285	$ 14,494	$ 2,033
Equity Appreciation Rights
Equity Incentive Plans
Accrued compensation and benefits		$ 151,500
Number of Awards
Outstanding at beginning of the period	7,614,000	9,180,000
Settled (in shares)	(7,614,000)	(1,566,000)
Outstanding at end of the period		7,614,000	9,180,000
Weighted Average Exercise Price
Outstanding at beginning of the period	$ 19.90	$ 11.40
Settled	$ (19.90)	11.12
Outstanding at end of the period		$ 19.90	$ 11.40
Additional Information
Weighted-Average Remaining Contractual Term			1 year
Aggregate Intrinsic Value
Outstanding at beginning of the period	$ 151,511	$ 171,712
Outstanding at end of the period		151,511	$ 171,712
Share-based compensation		$ 6,000	$ 45,800

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Equity Incentive Plans - Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Equity Incentive Plans
Share based compensation expense	$ 15,285	$ 20,541	$ 51,603
Income tax benefit	3,158	6,481	17,821
Total compensation expense, net of tax	12,127	14,060	33,782
Cost of goods sold
Equity Incentive Plans
Share based compensation expense	408	434	670
Selling, general and administrative
Equity Incentive Plans
Share based compensation expense	13,687	18,622	48,377
Research and development
Equity Incentive Plans
Share based compensation expense	$ 1,190	$ 1,485	$ 2,556

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Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Balance at the beginning of the period	$ (90,834)
Balance at the end of the period	(81,691)	$ (90,834)
Foreign Currency Translation Adjustments
Balance at the beginning of the period	(84,675)	(70,019)
Other comprehensive income (loss) before reclassifications	26,964	(14,656)
Balance at the end of the period	(57,711)	(84,675)
Gains (Losses) on Foreign Exchange Derivative Instruments
Balance at the beginning of the period	10,535	9,166
Other comprehensive income (loss) before reclassifications	(15,558)	7,014
Amounts reclassified from accumulated other comprehensive loss	(1,329)	(5,194)
Amounts reclassified from accumulated other comprehensive loss		(451)
Tax benefit (expense)	4,072
Balance at the end of the period	(2,280)	10,535
Gains (Losses) on Available- for-Sale Securities
Balance at the beginning of the period	1,536	1,504
Other comprehensive income (loss) before reclassifications	150	51
Amounts reclassified from accumulated other comprehensive loss		(19)
Tax benefit (expense)	35
Balance at the end of the period	1,721	1,536
Pension and Other Postretirement Adjustments
Balance at the beginning of the period	(18,230)	(7,885)
Other comprehensive income (loss) before reclassifications	(9,870)	(16,781)
Amounts reclassified from accumulated other comprehensive loss	2,981	709
Amounts reclassified from accumulated other comprehensive loss		5,727
Tax benefit (expense)	1,698
Balance at the end of the period	(23,421)	(18,230)
Accumulated Other Comprehensive Loss
Balance at the beginning of the period	(90,834)	(67,234)
Other comprehensive income (loss) before reclassifications	1,686	(24,372)
Amounts reclassified from accumulated other comprehensive loss	1,652	(4,485)
Amounts reclassified from accumulated other comprehensive loss		5,257
Tax benefit (expense)	5,805
Balance at the end of the period	$ (81,691)	$ (90,834)

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Nets Income per Common Share - Computation of basic and diluted net income per common share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net Income per Common Share
Net income (loss) attributable to Acushnet Holdings Corp	$ 11,666	$ 9,318	$ 33,016	$ 38,114	$ (179)	$ (5,526)	$ 27,055	$ 23,662	$ 92,114	$ 45,012	$ (966)
Less: dividends earned by preferred shareholders										(11,576)	(13,785)
Allocation of undistributed earnings to preferred shareholders										(10,247)
Net income (loss) attributable to common stockholders - basic									92,114	23,189	(14,751)
Adjustments to net income for dilutive securities										16,475
Net income (loss) attributable to common stockholders - diluted									$ 92,114	$ 39,664	$ (14,751)
Weighted average number of common shares:
Basic									74,399,836	31,247,643	19,939,293
Diluted									74,590,999	64,323,742	19,939,293
Net income (loss) per common share attributable to Acushnet Holdings Corp.:
Basic	$ 0.16	$ 0.13	$ 0.44	$ 0.51	$ (0.02)	$ (0.38)	$ 0.62	$ 0.53	$ 1.24	$ 0.74	$ (0.74)
Diluted	$ 0.16	$ 0.12	$ 0.44	$ 0.51	$ (0.02)	$ (0.38)	$ 0.39	$ 0.35	$ 1.23	$ 0.62	$ (0.74)

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Net Income per Common Share - Calculation of diluted weighted average common shares outstanding (Details) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Series A preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		13,807,486	16,542,243
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			1,089
Warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		1,807,171	4,891,887
Convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			32,624,820
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	360,659

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Segment Information - Reconciliation (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | item									4
Income from operations	$ 26,370	$ 18,265	$ 57,385	$ 64,288	$ 7,608	$ 9,606	$ 66,437	$ 57,185	$ 166,308	$ 140,836	$ 117,583
Depreciation and amortization									40,871	40,834	41,702
Reconciling items:
Interest expense, net									(15,709)	(49,908)	(60,294)
EAR expense										(6,047)	(45,814)
Loss on fair value of common stock warrants										(6,112)	(28,364)
Transaction fees									686	16,817	2,141
Income before income taxes									151,676	89,222	32,150
Operating segments
Segment Reporting Information [Line Items]
Total net sales									1,560,258	1,572,275	1,502,958
Income from operations									165,728	165,133	168,382
Titleist golf balls | Operating segments
Segment Reporting Information [Line Items]
Total net sales									512,041	513,899	535,465
Income from operations									76,870	76,236	92,507
Depreciation and amortization									25,545	26,104	26,962
Titleist golf clubs | Operating segments
Segment Reporting Information [Line Items]
Total net sales									397,987	430,966	388,304
Income from operations									31,031	50,500	33,593
Depreciation and amortization									7,233	7,021	7,060
Titleist golf gear | Operating segments
Segment Reporting Information [Line Items]
Total net sales									142,911	136,208	129,408
Income from operations									16,584	12,119	12,170
Depreciation and amortization									1,425	1,250	1,368
FootJoy golf wear | Operating segments
Segment Reporting Information [Line Items]
Total net sales									437,455	433,061	418,852
Income from operations									26,380	18,979	26,056
Depreciation and amortization									6,058	5,759	5,540
Other
Reconciling items:
Other									2,343	2,973	381
Other | Operating segments
Segment Reporting Information [Line Items]
Total net sales									69,864	58,141	30,929
Income from operations									14,863	7,299	4,056
Depreciation and amortization									$ 610	$ 700	$ 772

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Segment Information - Geographical areas (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	$ 1,560,258	$ 1,572,275	$ 1,502,958
Total long-lived assets	228,922	239,748
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	789,879	804,516	805,470
Total long-lived assets	148,678	157,884
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	205,200	210,088	201,106
Total long-lived assets	9,669	8,619
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	201,264	219,021	182,163
Total long-lived assets	770	628
Korea
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	200,394	175,956	144,956
Total long-lived assets	3,782	1,811
Rest of world
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	163,521	162,694	$ 169,263
Total long-lived assets	66,023	70,806
Thailand
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 53,800	$ 57,800

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Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Commitments and Contingencies
2018	$ 141,278
2019	10,188
2020	3,737
2021	405
2022	$ 2

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Commitments and Contingencies - Lease Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies
Lessor Leasing Arrangements, Operating Leases, Term of Contract	1 year
Lessor Leasing Arrangements, Operating Leases, Renewal Term	5 years
Cost (in percentage)	20.00%
Deprecated Value (in percentage)	20.00%
Future minimum rental payments under noncancelable operating lease
2018	$ 12,119
2019	10,286
2020	8,447
2021	6,247
2022	4,228
Thereafter	14,418
Total minimum rental payments	55,745
Total rental expense for all operating leases	$ 16,300	$ 16,500	$ 15,800

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Commitments and Contingencies - Contingencies and Litigation (Details) - USD ($)	Jun. 21, 2016	Dec. 31, 2017
Commitments and Contingencies
Loss Contingency, Receivable		$ 8,700,000
Litigation
Litigation Settlement, Amount	$ 972,288
Litigation Settlement Interest	$ 494,859
Collectability of receivables
Commitments and Contingencies
Loss Contingency, Receivable		$ 16,600,000

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Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Unaudited Quarterly Financial Data
Net sales	$ 351,392	$ 347,263	$ 427,988	$ 433,615	$ 329,761	$ 339,318	$ 463,261	$ 439,935	$ 1,560,258	$ 1,572,275	$ 1,502,958
Gross profit	178,500	172,968	222,909	226,415	167,994	166,902	237,960	225,869	800,792	798,725	775,838
Income from operations	26,370	18,265	57,385	64,288	7,608	9,606	66,437	57,185	166,308	140,836	117,583
Net income	12,318	10,634	34,038	39,630	1,247	(4,402)	27,478	25,192	96,620	49,515	4,156
Net income (loss) attributable to Acushnet Holdings Corp	$ 11,666	$ 9,318	$ 33,016	$ 38,114	$ (179)	$ (5,526)	$ 27,055	$ 23,662	$ 92,114	$ 45,012	$ (966)
Net income (loss) per common share attributable to Acushnet Holdings Corp.:
Basic	$ 0.16	$ 0.13	$ 0.44	$ 0.51	$ (0.02)	$ (0.38)	$ 0.62	$ 0.53	$ 1.24	$ 0.74	$ (0.74)
Diluted	$ 0.16	$ 0.12	$ 0.44	$ 0.51	$ (0.02)	$ (0.38)	$ 0.39	$ 0.35	$ 1.23	$ 0.62	$ (0.74)