Debt and Financing Arrangements |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Debt Disclosure [Abstract] | |
| Debt and Financing Arrangements | Debt and Financing Arrangements Multi-Currency Revolving Credit Facility The Company's credit agreement, dated as of December 23, 2019, as subsequently amended (the "Credit Agreement"), provides for a $950.0 million multi-currency revolving credit facility, due to mature on November 24, 2030. The Credit Agreement, together with related security, guarantee and other agreements, is referred to as the “Revolving Credit Facility.” The Credit Agreement contains customary affirmative and restrictive covenants, including, among others, financial covenants based on the Company's leverage and interest coverage ratios. The Credit Agreement also includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations to be immediately due and payable. As of June 30, 2026, the Company was in compliance with all covenants under the Credit Agreement. As of June 30, 2026 and December 31, 2025, there were $441.6 million and $431.3 million, respectively, in outstanding borrowings under the Revolving Credit Facility, with a weighted average interest rate of 4.88% and 5.06%, respectively. As of June 30, 2026, the Company had available borrowing capacity under the Revolving Credit Facility of $504.4 million after giving effect to $4.0 million of outstanding letters of credit. Senior Notes As of June 30, 2026 and December 31, 2025, Acushnet Company had 5.625% senior unsecured notes due December 1, 2033 (the "Notes") outstanding in the aggregate principal balance of $500.0 million. The fair value of the Notes, based on third-party quotes (Level 2), as of June 30, 2026 and December 31, 2025 was $498.0 million and $505.0 million, respectively. The Notes bear interest at a stated interest rate of 5.625% (an effective interest rate of 5.788%) per year, with interest payable semi-annually on June 1 and December 1 of each year. Accrued interest related to the Notes of $2.3 million and $2.9 million was included within accrued expenses and other current liabilities on the unaudited condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025, respectively. The indenture that governs the Notes (the "Indenture") contains covenants that, among other things, limit the ability of the Company and its subsidiaries to incur liens securing indebtedness for borrowed money, enter into sale and leaseback transactions, and consolidate or merge with or into other companies. As of June 30, 2026, the Company was in compliance with all covenants under the Indenture. Other Short-Term Borrowings The Company has certain unsecured and uncommitted local credit facilities available through its subsidiaries. Amounts outstanding under these other short-term borrowings are presented in short-term debt in the unaudited condensed consolidated balance sheets with the proceeds and repayments presented on a gross basis in the unaudited condensed consolidated statements of cash flows. There were $22.9 million and $16.0 million in outstanding borrowings under the Company's local credit facilities as of June 30, 2026 and December 31, 2025, respectively. The weighted average interest rate applicable to the outstanding borrowings was 1.26% and 0.88% as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026, the Company had available borrowing capacity under these local credit facilities of $28.9 million. Letters of Credit As of June 30, 2026 and December 31, 2025, there were outstanding letters of credit related to agreements, including those issued under the Revolving Credit Facility, totaling $6.8 million and $6.9 million, respectively, of which $4.0 million was secured as of both June 30, 2026 and December 31, 2025. These agreements provided a maximum commitment for letters of credit of $58.7 million as of June 30, 2026.
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