Acushnet Holdings Corp
For the period ended Jun 30, 2024. Filed Aug 6, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 6, 2024
GOLF$80.74-3.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-07.
0001672013-24-000027
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0001672013-24-000045
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 84 previous paragraphs and 113 current paragraphs.
54 unchanged; 27 reworded; 26 added; 2 removed; 1 previous and 6 current paragraphs rearranged.
Tables are not compared: 5 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (26)
Current report
For the three months ended June 30, 2024, net sales decreased 0.8%, or increased 0.6% on a constant currency basis, as compared to the three months ended June 30, 2023. The increase on a constant currency basis was primarily due to higher sales volumes in Titleist golf balls, partially offset by lower sales volumes in Titleist golf clubs.
Current report
The increase in net sales in the United States was primarily the result of increases in Titleist golf balls of $13.4 million and in FootJoy golf wear of $4.0 million, partially offset by a decrease in Titleist golf clubs of $10.5 million. The increase in Titleist golf balls was primarily driven by higher sales volumes of Pro V1 and Pro V1x, and our latest generation AVX golf balls. The increase in FootJoy golf wear was primarily a result of higher average selling prices in apparel and higher net sales in footwear. The decrease in Titleist golf clubs was primarily due to lower sales volumes of drivers, fairways, hybrids and Super Select putters, which were all in their second model year, partially offset by higher sales volumes of our T-Series irons, as well as SM10 wedges and Phantom putters.
Current report
Net sales in regions outside the United States decreased 4.4%, or 1.0% on a constant currency basis primarily, due to lower net sales in Rest of World partially offset by increases in Japan, EMEA and Korea. In Rest of World, the decrease in net sales was primarily due to lower net sales in FootJoy golf wear, primarily footwear.
Current report
Gross profit increased $3.3 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. Gross margin increased to 54.4% for the three months ended June 30, 2024 compared to 53.5% for the three months ended June 30, 2023. The increase in gross profit primarily resulted from an increase of $13.0 million in Titleist golf balls primarily due to the sales volume increase discussed previously, as well as lower manufacturing costs, an increase of $2.9 million in Titleist golf gear primarily due to higher average selling prices and an increase of $1.8 million in FootJoy golf wear primarily due to a favorable shift in product mix. The increase in gross profit was partially offset by a decrease of $12.9 million in Titleist golf clubs primarily due to the sales volume decrease discussed previously and repositioning of products in their second year of a two-year product life cycle. The increase in gross margin was primarily due to lower manufacturing costs in Titleist golf balls, partially offset by the repositioning of second model year golf clubs as discussed previously.
Current report
Net sales in our Titleist golf balls segment increased 4.2%, or 5.3% on a constant currency basis, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023, primarily driven by higher sales volumes of Pro V1 and Pro V1x, and our latest generation AVX golf balls launched in the first quarter of 2024.
Current report
Operating income in our Titleist golf balls segment increased $11.8 million, or 24.0%, compared to the prior year period. The increase in operating income was primarily due to an increase of $13.0 million in gross profit, partially offset by higher operating expenses of $1.2 million. The increase in gross profit was driven by the higher sales volumes discussed previously and lower manufacturing costs. Higher operating expenses were primarily the result of an increase of $2.1 million in administrative expenses, largely offset by a decrease of $1.8 million in advertising and promotional expenses primarily due to the timing of promotional expenses.
Current report
Net sales in our Titleist golf clubs segment decreased 5.6%, or 4.1% on a constant currency basis, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The decrease was largely due lower sales volumes of drivers, fairways, hybrids and Super Select putters, which were all in their second model year, partially offset by higher sales volumes of our T-Series irons launched in the third quarter of 2023, as well as SM10 wedges and Phantom putters, each launched in the first quarter of 2024.
Current report
Operating income in our Titleist golf clubs segment decreased $16.3 million, or 39.4% compared to the prior year period. The decrease in operating income primarily resulted from a decrease of $12.9 million in gross profit and higher operating expenses of $3.4 million. The decrease in gross profit was primarily driven by the lower sales volumes discussed previously and repositioning of products in their second year of a two-year product life cycle. Higher operating expenses were primarily a result of increases of $2.0 million and $1.3 million in advertising and promotional, and selling expenses, respectively, largely due to professional tour and new product launch expenses.
Current report
Net sales in our Titleist golf gear segment decreased 1.4%, and were flat on a constant currency basis, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 as increased sales volumes in travel product categories and higher average selling prices across all product categories were offset by lower sales volumes in golf bags.
Current report
Operating income in our Titleist golf gear segment increased $0.2 million, or 1.5% compared to the prior year period. The increase in operating income primarily resulted from an increase of $2.9 million in gross profit, partially offset by higher operating expenses of $2.7 million. The increase in gross profit was primarily due to higher average selling prices. Higher operating expenses were primarily a result of an increase of $1.9 million in selling primarily due to higher distribution expense.
Current report
Net sales in our FootJoy golf wear segment decreased 0.6%, or increased 0.7% on a constant currency basis, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The increase in constant currency was largely due to higher net sales in apparel, partially offset by lower net sales in footwear.
Current report
Operating income in our FootJoy golf wear segment increased $4.3 million, or 119.4% compared to the prior year period. The increase in operating income primarily resulted from an increase of $1.8 million in gross profit and lower operating expenses of $2.4 million. The increase in gross profit was primarily due to a favorable shift in product mix. Operating expenses decreased primarily as a result of a decrease of $3.0 million in selling expense, largely due to lower distribution expense.
Current report
Six Months Ended June 30, 2024 Compared to the Six Months Ended June 30, 2023
Current report
Gross Profit
Current report
Selling, General and Administrative Expenses
Current report
Interest Expense, net
Current report
Interest expense, net increased $6.4 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 primarily due to an increase in borrowings and interest rates.
Current report
Income Tax Expense
Current report
Income tax expense increased $3.1 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. Our ETR was 22.4% for the six months ended June 30, 2024 compared to 19.8% for the six months ended June 30, 2023. The change in ETR was primarily driven by changes in our jurisdictional mix of earnings.
Current report
Segment Results
Current report
Titleist Golf Balls Segment
Current report
Operating income in our Titleist golf balls segment increased $15.4 million, or 17.5% compared to the prior year period. The increase in operating income resulted from higher gross profit of $21.3 million, partially offset by higher operating expenses of $6.3 million. The increase in gross profit was primarily driven by the higher sales volumes discussed previously and lower manufacturing costs. Higher operating expenses were primarily a result of increases of $3.3 million and $3.2 million in selling expense and administrative expenses, respectively.
Current report
Titleist Golf Clubs Segment
Current report
Operating income in our Titleist golf clubs segment decreased $7.2 million, or 8.8% compared to the prior year period. The decrease in operating income resulted from higher operating expenses of $9.6 million partially offset by higher gross profit of $2.4 million. The increase in gross profit was primarily due to the higher sales volumes discussed previously, partially offset by repositioning of products in their second year of a two-year product life cycle. Higher operating expenses were primarily a result of increases of $4.2 million and $4.0 million in selling expense and advertising and promotional expenses, respectively.
Current report
Titleist Golf Gear Segment
Current report
FootJoy Golf Wear Segment
Removed paragraphs (2)
Previous report
Operating income in our Titleist golf balls segment increased $3.6 million, or 9.3% compared to the prior year period. The increase in operating income resulted from higher gross profit of $8.3 million, partially offset by higher operating expenses of $5.2 million. The increase in gross profit was primarily driven by the higher sales volumes discussed previously. Higher operating expenses were primarily a result of increases of $2.7 million and $1.1 million in selling and administrative expenses, respectively.
Previous report
Operating income in our Titleist golf clubs segment increased $9.1 million, or 22.5% compared to the prior year period. The increase in operating income resulted from higher gross profit of $15.3 million, partially offset by higher operating expenses of $6.2 million. The increase in gross profit was primarily due to the higher sales volumes discussed previously. Higher operating expenses were primarily as a result of increases of $3.0 million and $2.0 million in selling expense and advertising and promotional expenses, respectively.
Reworded paragraphs (27)
Previous wording
(1) For the three months ended March 31, 2024, relates to restructuring costs associated with the closure of certain production lines at our footwear manufacturing joint venture.
Current wording
(1) For the six months ended June 30, 2024, relates to restructuring costs associated with the closure of certain production lines at our footwear manufacturing joint venture.
Previous wording
(2) For the three months ended March 31, 2024, includes $3.1 million related to the optimization of our information technology systems.
Current wording
(2) For the three and six months ended June 30, 2024, includes $2.8 million and $5.9 million, respectively, related to the optimization of our information technology systems.
Previous wording
(3) For the three months ended March 31, 2024 and 2023, includes costs associated with the optimization of our distribution and custom fulfillment capabilities.
Current wording
(3) For the three and six months ended June 30, 2024 and 2023, includes costs associated with the optimization of our distribution and custom fulfillment capabilities.
Previous wording
Interest expense, net increased $3.2 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 primarily due to an increase in interest rates and borrowings.
Current wording
Interest expense, net increased $3.2 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 primarily due to an increase in borrowings.
Previous wording
Income tax expense increased $2.7 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. Our effective tax rate ("ETR") was 21.7% for the three months ended March 31, 2024 compared to 18.1% for the three months ended March 31, 2023. The change in ETR was primarily driven by changes in our jurisdictional mix of earnings.
Current wording
Income tax expense increased $0.5 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. Our effective tax rate (“ETR”) was 23.2% for the three months ended June 30, 2024 compared to 21.8% for the three months ended June 30, 2023. The change in the ETR was primarily driven by changes in our jurisdictional mix of earnings.
Previous wording
For the three months ended March 31, 2024 net sales increased 3.1%, or 4.0% on a constant currency basis, compared to the three months ended March 31, 2023. This increase was driven primarily by higher sales volumes in Titleist golf clubs and Titleist golf balls, partially offset by lower sales volumes in FootJoy golf wear. A decline in sales volumes of products that are not allocated to one of our four reportable segments also contributed to the change in net sales.
Current wording
For the six months ended June 30, 2024 net sales increased 1.1%, or 2.3% on a constant currency basis, compared to the six months ended June 30, 2023. This increase was driven primarily by higher sales volumes in Titleist golf balls and Titleist golf clubs, partially offset by lower sales volumes in FootJoy golf wear. A decline in sales volumes of products that are not allocated to one of our four reportable segments also contributed to the change in net sales.
Previous wording
The increase in net sales in the United States was primarily the result of increases in Titleist golf clubs of $21.6 million, Titleist golf balls of $18.8 million and Titleist golf gear of $4.8 million. The increase in Titleist golf clubs was primarily driven by higher sales volumes of our newly introduced SM10 wedges. The increase in Titleist golf balls was primarily driven by higher sales volumes of Pro V1 and Pro V1x, Velocity, and our latest generation AVX, Tour Soft and TruFeel models. The increase in Titleist golf gear was primarily due to higher sales volumes in golf bags and travel product categories.
Current wording
The increase in net sales in the United States was due to increases across all reportable segments, as a result of increases in Titleist golf balls of $32.1 million, Titleist golf clubs of $11.1 million, FootJoy golf wear of $5.5 million and Titleist golf gear of $5.5 million. The increase in Titleist golf balls was primarily driven by higher sales volumes of Pro V1 and Pro V1x and our latest generation AVX, Tour Soft and TruFeel models. The increase in Titleist golf clubs was primarily driven by higher sales volumes of our SM10 wedges and T-Series irons. The increase in FootJoy golf wear was primarily due to higher average selling prices in apparel. The increase in Titleist golf gear was primarily due to higher sales volumes in travel product categories.
Previous wording
Net sales in regions outside the United States decreased 8.5%, or 6.5% on a constant currency basis, primarily due to lower sales in Korea, EMEA and Japan. In Korea, the decrease was primarily due to lower net sales of products that are not allocated to one of our four reportable segments and lower net sales in FootJoy golf wear, primarily apparel, Titleist golf gear and Titleist golf clubs. In EMEA, the decrease was primarily due to lower net sales in FootJoy golf wear, primarily footwear, and Titleist golf gear, partially offset by an increase in Titleist golf clubs. In Japan, net sales decreased primarily due to lower net sales in FootJoy golf wear and lower net sales of products that are not allocated to one of our four reportable segments, partially offset by higher net sales in Titleist golf clubs.
Current wording
Net sales in regions outside the United States decreased 6.6%, or 3.9% on a constant currency basis. In Korea, the decrease was primarily due to lower net sales of products that are not allocated to one of our four reportable segments and lower net sales in FootJoy golf wear, primarily apparel, and Titleist golf gear. In Rest of World, the decrease was primarily due to lower net sales in FootJoy golf wear, primarily footwear and apparel. In EMEA, the decrease was primarily due to lower net sales in FootJoy golf wear, primarily footwear and apparel, and lower net sales of products that are not allocated to one of our four reportable segments, partially offset by an increase in Titleist golf clubs. In Japan, net sales decreased primarily due to lower net sales in FootJoy golf wear, primarily footwear, lower net sales of Titleist golf gear and lower net sales of products that are not allocated to one of our four reportable segments, partially offset by higher net sales in Titleist golf clubs.
Previous wording
Gross profit increased $12.2 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. Gross margin increased to 53.4% for the three months ended March 31, 2024 compared to 53.3% for the three months ended March 31, 2023. The increase in gross profit was primarily the result of increases in Titleist golf clubs of $15.3 million and Titleist golf balls of $8.3 million largely due to the sales volume changes discussed above. These increases were partially offset by a decrease in FootJoy golf wear of $7.1 million primarily due to the sales volume change discussed above and unfavorable manufacturing overhead absorption. A decrease in gross profit of products not allocated to one of our four reportable segments also contributed to the change in gross profit.
Current wording
Gross profit increased $15.5 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. Gross margin increased to 53.9% for the six months ended June 30, 2024 compared to 53.4% for the six months ended June 30, 2023. The increase in gross profit was primarily the result of increases in Titleist golf balls of $21.3 million, in Titleist golf gear of $3.8 million and in Titleist golf clubs of $2.4 million largely due to the sales volume changes discussed previously and lower manufacturing costs in Titleist golf balls. These increases were partially offset by a decrease in FootJoy golf wear of $5.3 million primarily due to the sales volume change discussed previously and unfavorable manufacturing overhead absorption. A decrease in gross profit of products not allocated to one of our four reportable segments also contributed to the change in gross profit. The increase in gross margin was primarily due to lower manufacturing costs in Titleist golf balls.
Previous wording
Selling, general and administrative ("SG&A") expenses increased $14.1 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. This increase was due in part to increases of $3.0 million in advertising and promotional expenses, $1.9 million in administrative expense and $1.8 million in selling expense, and also includes $7.0 million of restructuring costs associated with our footwear manufacturing joint venture as well as the favorable impact of changes in foreign currency exchange rates. The increase in advertising and promotional expenses was primarily related to new product launches and higher professional tour expenses. Administrative expense increased primarily due to higher information technology-related expenses. The increase in selling expense was primarily due to higher employee-related expenses, partially offset by lower retail commission expense in Korea.
Current wording
SG&A expenses increased $18.1 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. This increase was primarily a result of increases of $4.9 million in administrative expense, $3.9 million in selling expense and $3.4 million in advertising and promotional expenses, and also includes $7.0 million of restructuring costs associated with our footwear manufacturing joint venture, as well as the favorable impact of changes in foreign currency exchange rates. Administrative expense increased primarily due to higher information technology-related expenses. The increase in selling expense was primarily due to higher employee-related expenses, partially offset by lower retail commission expense in Korea. The increase in advertising and promotional expenses was primarily related to higher professional tour expenses and new product launches.
Previous wording
R&D expenses increased $2.0 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 primarily as a result of increases in employee-related expenses and to support new product introductions.
Current wording
R&D expenses increased $1.6 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 primarily as a result of increases in employee-related expenses.
Previous wording
Net sales in our Titleist golf balls segment increased 8.3%, or 9.4% on a constant currency basis, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The increase was primarily driven by higher sales volumes of Pro V1 and Pro V1x, Velocity, and our latest generation AVX, Tour Soft and TruFeel models launched in the first quarter of 2024.
Current wording
Net sales in our Titleist golf balls segment increased 6.0%, or 7.1% on a constant currency basis, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The increase was primarily driven by higher sales volumes of Pro V1 and Pro V1x, and our latest generation AVX, Tour Soft and TruFeel models launched in the first quarter of 2024.
Previous wording
Net sales in our Titleist golf clubs segment increased 12.8%, or 14.0% on a constant currency basis, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The increase was largely due to higher sales volumes of our SM10 wedges launched in the first quarter of 2024 and T-Series irons launched in the third quarter of
Current wording
Net sales in our Titleist golf clubs segment increased 3.4%, or 4.7% on a constant currency basis, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The increase was largely due to higher sales volumes of our SM10 wedges launched in the first quarter of 2024 and T-Series irons launched in the third quarter of 2023. This increase was partially offset by lower sales volumes of drivers, hybrids and fairways, which were all in their second model year.
Previous wording
Net sales in our Titleist golf gear segment increased 1.8%, or 2.4% on a constant currency basis, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The increase was driven by higher net sales in travel gear, golf glove and golf bag product categories.
Current wording
Net sales in our Titleist golf gear segment increased 0.1%, or 1.2% on a constant currency basis, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The increase was driven by higher sales volumes in travel product categories and higher average selling prices across all product categories, partially offset by lower sales volumes in golf bags.
Previous wording
Operating income in our Titleist golf gear segment decreased $2.1 million, or 17.2% compared to the prior year period. The decrease in operating income resulted from higher operating expenses, partially offset by higher gross profit. Gross profit increased $0.8 million, largely due to the higher net sales discussed previously. Operating expenses increased primarily due to higher selling expense of $2.2 million.
Current wording
Operating income in our Titleist golf gear segment decreased $1.9 million, or 7.3% compared to the prior year period. The decrease in operating income resulted from higher operating expenses of $5.4 million, partially offset by higher gross profit of $3.8 million. The increase in gross profit was largely due to the higher net sales discussed previously and lower cost of customization. Operating expenses increased primarily due to higher selling expense of $4.0 million primarily due to higher distribution expense and employee-related expenses.
Previous wording
Net sales in our FootJoy golf wear segment decreased 6.3%, or 5.7% on a constant currency basis, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The decrease was primarily due to lower sales volumes across all product categories, partially offset by higher average selling prices in apparel.
Current wording
Net sales in our FootJoy golf wear segment decreased 3.8%, or 2.9% on a constant currency basis, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The decrease was primarily due to lower sales volumes across all product categories and lower average selling prices in footwear, partially offset by higher average selling prices in apparel.
Previous wording
Operating income in our FootJoy golf wear segment decreased $4.4 million, or 14.3% compared to the prior year period. The decrease in operating income resulted from lower gross profit of $7.1 million, partially offset by lower operating expenses of $2.7 million. Gross profit decreased primarily as a result of the sales volume decrease discussed previously and unfavorable manufacturing overhead absorption, partially offset by higher average selling prices in apparel. Lower operating expenses were primarily a result of a decrease of $2.9 million in selling expense largely due to lower sales volumes and lower retail commission expense in Korea.
Current wording
Operating income in our FootJoy golf wear segment decreased $0.1 million, or 0.3% compared to the prior year period. The decrease in operating income resulted from lower gross profit of $5.3 million, largely offset by lower operating expenses of $5.2 million. Gross profit decreased primarily as a result of the sales volume decrease discussed previously and unfavorable manufacturing overhead absorption, partially offset by higher average selling prices in apparel. Lower operating expenses were primarily a result of a decrease of $6.0 million in selling expense, largely due to lower distribution expense and lower retail commission expense in Korea.
Previous wording
As of March 31, 2024, we had $47.1 million of unrestricted cash and cash equivalents (including $11.4 million attributable to our FootJoy golf shoe variable interest entity). As of March 31, 2024, 95.5% of our total unrestricted cash and cash equivalents was held by subsidiaries in regions outside of the United States, including our FootJoy golf shoe variable interest entity. We manage our worldwide cash requirements by monitoring the funds available among our subsidiaries and determining the extent to which we can access those funds on a cost-effective basis. We are not aware of any restrictions on repatriation of these funds and, subject to foreign withholding taxes, those funds could be repatriated, if necessary. We have repatriated, and intend to repatriate, funds to the United States from time to time to satisfy domestic liquidity needs arising in the ordinary course of business.
Current wording
As of June 30, 2024, we had $78.7 million of unrestricted cash and cash equivalents (including $12.3 million attributable to our FootJoy golf shoe variable interest entity). As of June 30, 2024, 96.4% of our total unrestricted cash and cash equivalents was held by subsidiaries in regions outside of the United States, including our FootJoy golf shoe variable interest entity. We manage our worldwide cash requirements by monitoring the funds available among our subsidiaries and determining the extent to which we can access those funds on a cost-effective basis. We are not aware of any restrictions on repatriation of these funds and, subject to foreign withholding taxes, those funds could be repatriated, if necessary. We have repatriated, and intend to repatriate, funds to the United States from time to time to satisfy domestic liquidity needs arising in the ordinary course of business.
Previous wording
As of March 31, 2024, we had $459.8 million of availability under our multi-currency revolving credit facility after giving effect to $5.0 million of outstanding letters of credit. Additionally, we had $29.4 million of availability under certain local credit facilities of our subsidiaries.
Current wording
As of June 30, 2024, we had $565.8 million of availability under our multi-currency revolving credit facility after giving effect to $4.5 million of outstanding letters of credit. Additionally, we had $34.6 million of availability under certain local credit facilities of our subsidiaries.
Previous wording
During the three months ended March 31, 2024, we paid dividends on our common stock of $14.6 million to our shareholders. During the second quarter of 2024, our Board of Directors declared a dividend of $0.215 per share of common stock to shareholders of record as of June 7, 2024 and payable on June 21, 2024.
Current wording
During the six months ended June 30, 2024, we paid dividends on our common stock of $28.1 million to our shareholders. During the third quarter of 2024, our Board of Directors declared a dividend of $0.215 per share of common stock to shareholders of record as of September 6, 2024 and payable on September 20, 2024.
Previous wording
As of March 31, 2024, our Board of Directors had authorized us to repurchase up to an aggregate of $1.0 billion of our issued and outstanding common stock. During the three months ended March 31, 2024, we repurchased 547,233 shares of common stock at an average price of $64.51 for an aggregate of $35.3 million.
Current wording
As of June 30, 2024, our Board of Directors had authorized us to repurchase up to an aggregate of $1.0 billion of our issued and outstanding common stock. During the six months ended June 30, 2024, we repurchased 1,134,753 shares of common stock at an average price of $64.16 for an aggregate of $72.8 million.
Previous wording
On March 14, 2024, we entered into a new agreement with Magnus Holdings Co., Ltd. ("Magnus"), a wholly-owned subsidiary of Fila Holdings Corp., to purchase from Magnus an equal amount of our common stock as we purchase on the open market over the period of time from April 1, 2024 through June 28, 2024, up to an aggregate of $37.5 million, at the same weighted average per share price (the "2024 Agreement").
Current wording
On June 14, 2024, we entered into a new agreement with Magnus to purchase from Magnus an equal amount of our common stock as we purchase on the open market over the period of time from July 1, 2024 through December 31, 2024, up to an aggregate of $62.5 million, at the same weighted average per share price.
Previous wording
As of March 31, 2024, we had $339.7 million remaining under the current share repurchase authorization, including $37.5 million related to the 2024 Agreement.
Current wording
As of June 30, 2024, we had $302.2 million remaining under the current share repurchase authorization, including $100.0 million related to outstanding Magnus share repurchase agreements.
Previous wording
We made $7.3 million of capital expenditures during the three months ended March 31, 2024. Capital expenditures for the full year are expected to be approximately $85.0 million, although the actual amount may vary depending upon a variety of factors, including the timing of certain capital project implementations and receipt of capital purchases. Capital expenditures generally relate to investments to support the manufacturing and distribution of products, our go-to-market activities and continued investments in information technology and facilities to support our global strategic initiatives.
Current wording
We made $22.1 million of capital expenditures during the six months ended June 30, 2024. Capital expenditures for the full year are expected to be approximately $80.0 million, although the actual amount may vary depending upon a variety of factors, including the timing of certain capital project implementations and receipt of capital purchases. Capital expenditures generally relate to investments to support the manufacturing and distribution of products, our go-to-market activities and continued investments in information technology and facilities to support our global strategic initiatives.
Previous wording
The increase in cash used in operating activities was primarily related to changes in working capital. At any specific point in time, working capital is subject to many variables, including seasonality and inventory management, the timing of cash receipts and payments, vendor payment terms and fluctuations in foreign exchange rates.
Current wording
The decrease in cash provided by operating activities was primarily driven by a decrease in net income and a decrease in deferred income tax expense, offset in part by an increase in working capital. At any specific point in time, working capital is subject to many variables, including seasonality and inventory management, the timing of cash receipts and payments, vendor payment terms and fluctuations in foreign exchange rates.
Previous wording
The decrease in cash used in investing activities was primarily driven by cash paid for the acquisition of trademarks related to our gear business during the three months ended March 31, 2023, as well as a decrease in capital expenditures for the three months ended March 31, 2024.
Current wording
The decrease in cash used in investing activities was primarily driven by cash paid for the acquisition of trademarks related to our gear business during the six months ended June 30, 2023, as well as a decrease in capital expenditures for the six months ended June 30, 2024.
Previous wording
The decrease in cash provided by financing activities was primarily driven by a decrease in net proceeds from borrowings, offset in part by a decrease in purchases of common stock.
Current wording
The change in cash used in financing activities was primarily driven by a decrease in cash paid for purchases of common stock, offset by a decrease in net proceeds from borrowings and an increase in payments of employee restricted stock tax withholdings.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
(1)Europe, the Middle East and Africa ("EMEA")
Current report — wording carried from elsewhere
Selling, general and administrative ("SG&A") expenses increased $4.1 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. This increase was primarily a result of increases of $3.0 million in administrative expense and $2.1 million in selling expense. The increase in administrative expense was primarily due to higher information technology-related expenses. The increase in selling expense was primarily due to higher distribution expense in the United States. Additionally, SG&A includes the favorable impact of changes in foreign currency exchange rates.
Current report — wording carried from elsewhere
Net sales by reportable segment is summarized as follows:
Current report — wording carried from elsewhere
Net sales information by region is summarized as follows:
Current report — wording carried from elsewhere
Segment operating income by reportable segment is summarized as follows:
Current report — wording carried from elsewhere
On March 14, 2024, we entered into an agreement with Magnus Holdings Co., Ltd. ("Magnus"), a wholly-owned subsidiary of Fila Holdings Corp., to purchase from Magnus an equal amount of our common stock as we purchase on the open market over the period of time from April 1, 2024 through June 28, 2024, up to an aggregate of $37.5 million, at the same weighted average per share price (the "March 2024 Agreement"). In relation to this agreement, we recorded a liability of $37.5 million to purchase an additional 587,520 shares of common stock from Magnus as of June 30, 2024. As a result, on July 10, 2024, we purchased 587,520 shares of our common stock from Magnus for an aggregate of $37.5 million in satisfaction of our obligation under the March 2024 Agreement.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
This increase was partially offset by lower sales volumes of drivers, hybrids and fairways, which were all in their second model year.