Acushnet Holdings Corp.

Previous wording

We believe our differentiated focus on performance and quality excellence, enduring connections with dedicated golfers, and favorable and market‑differentiating mix of consumable and durable products have been the key drivers of our solid financial performance.

Current wording

We believe our differentiated focus on performance and quality excellence, enduring connections with dedicated golfers and favorable and market‑differentiating mix of consumable and durable products have been the key drivers of our financial performance.

Previous wording

Our net sales are diversified by both product category and mix, as well as geography. Our product categories include golf balls, golf clubs, wedges and putters, golf shoes, golf gloves, golf gear and golf outerwear and apparel. Our product portfolio contains a favorable mix of consumable products, which we consider to be golf balls and golf gloves, and more durable products, which we consider to be golf clubs, golf shoes, golf gear and golf outerwear and apparel. Our net sales are also diversified by geography with a substantial majority of our net sales generated in five countries: the United States, Japan, Korea, the United Kingdom and Canada.

Current wording

Our net sales are diversified by both product category and mix, as well as geography. Our product categories include golf balls, golf clubs, wedges and putters, golf shoes, golf gloves, golf gear and golf and ski outerwear and apparel. Our product portfolio contains a favorable mix of consumable products, which we consider to be golf balls and golf gloves, and more durable products, which we consider to be golf clubs, golf shoes, golf gear and golf outerwear and apparel. Our net sales are also diversified by geography with a substantial majority of our net sales generated in five countries: the United States, Japan, Korea, the United Kingdom and Canada. We have the following reportable segments: (i) Titleist golf equipment, (ii) FootJoy golf wear and (iii) Golf gear.

Previous wording

We primarily use Adjusted EBITDA on a consolidated basis to evaluate the effectiveness of our business strategies, assess our consolidated operating performance and make decisions regarding the pricing of our products, go-to-market execution and costs to incur across our business. We present Adjusted EBITDA as a supplemental measure of our operating performance because it excludes the impact of certain items that we do not consider indicative of our ongoing operating performance. We define Adjusted EBITDA in a manner consistent with the term “Consolidated EBITDA” as it is defined in our credit agreement. Adjusted EBITDA represents net income (loss) attributable to Acushnet Holdings Corp. plus interest expense, net, income tax expense (benefit), depreciation and amortization and other items defined in our credit agreement, including: share-based compensation expense; restructuring and transformation costs; certain transaction fees; extraordinary, unusual or non-recurring losses or charges; indemnification expense (income); certain pension settlement costs; certain other non-cash (gains) losses, net and the net income (loss) relating to noncontrolling interests. Adjusted EBITDA is not a measurement of financial performance under U.S. GAAP. It should not be considered an alternative to net income (loss) attributable to Acushnet Holdings Corp. as a measure of our operating performance or any other measure of performance derived in accordance with U.S. GAAP. In addition, Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items, or affected by similar non-recurring items. Adjusted EBITDA has limitations as an analytical tool, and you should not consider such measure either in isolation or as a substitute for analyzing our results as reported under U.S. GAAP. Our definition and calculation of Adjusted EBITDA is not necessarily comparable to other similarly titled measures used by other companies due to different methods of calculation. For a reconciliation of Adjusted EBITDA to net income attributable to Acushnet Holdings Corp., see “—Results of Operations” below.

Current wording

We primarily use Adjusted EBITDA on a consolidated basis to evaluate the effectiveness of our business strategies, assess our consolidated operating performance and make decisions regarding the pricing of our products, go-to-market execution and costs to incur across our business. We present Adjusted EBITDA as a supplemental measure of our operating performance because it excludes the impact of certain items that we do not consider indicative of our ongoing operating performance. We define “Adjusted EBITDA” in a manner consistent with the term “Consolidated EBITDA” as it is defined in our credit agreement. Adjusted EBITDA represents net income (loss) attributable to Acushnet Holdings Corp. plus interest expense, net, income tax expense (benefit), depreciation and amortization and other items defined in our credit agreement, including: share-based compensation expense; restructuring and transformation costs; certain transaction fees; extraordinary, unusual or non-recurring losses or charges; indemnification expense (income); certain pension settlement costs; certain other non-cash (gains) losses, net and the net income (loss) relating to noncontrolling interests. Adjusted EBITDA is not a measurement of financial performance under U.S. GAAP. It should not be considered an alternative to net income (loss) attributable to Acushnet Holdings Corp. as a measure of our operating performance or any other measure of performance derived in accordance with U.S. GAAP. In addition, Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items, or affected by similar nonrecurring items. Adjusted EBITDA has limitations as an analytical tool, and you should not consider such measure either in isolation or as a substitute for analyzing our results as reported under U.S. GAAP. Our definition and calculation of Adjusted EBITDA is not necessarily comparable to other similarly titled measures used by other companies due to different methods of calculation. For a reconciliation of Adjusted EBITDA to net income attributable to Acushnet Holdings Corp., see “—Results of Operations” below.

Previous wording

We also use Adjusted EBITDA margin on a consolidated basis, which measures our Adjusted EBITDA as a percentage of net sales, because our management uses it to evaluate the effectiveness of our business strategies, assess our consolidated operating performance and make decisions regarding pricing of our products, go-to-market execution and costs to incur across our business. We present Adjusted EBITDA margin as a supplemental measure of our operating performance because it excludes the impact of certain items that we do not consider indicative of our ongoing operating performance. Adjusted EBITDA margin is not a measurement of financial performance under U.S. GAAP. It should not be considered an alternative to any measure of performance derived in accordance with U.S. GAAP. In addition, Adjusted EBITDA margin should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items, or affected by similar non-recurring items. Adjusted EBITDA margin has limitations as an analytical tool, and you should not consider such measure either in isolation or as a substitute for analyzing our results as reported under U.S. GAAP. Our definition and calculation of Adjusted EBITDA margin is not necessarily comparable to other similarly titled measures used by other companies due to different methods of calculation.

Current wording

We also use Adjusted EBITDA margin on a consolidated basis, which measures our Adjusted EBITDA as a percentage of net sales, because our management uses it to evaluate the effectiveness of our business strategies, assess our consolidated operating performance and make decisions regarding pricing of our products, go-to-market execution and costs to incur across our business. We present Adjusted EBITDA margin as a supplemental measure of our operating performance because it excludes the impact of certain items that we do not consider indicative of our ongoing operating performance. Adjusted EBITDA margin is not a measurement of financial performance under U.S. GAAP. It should not be considered an alternative to any measure of performance derived in accordance with U.S. GAAP. In addition, Adjusted EBITDA margin should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items, or affected by similar nonrecurring items. Adjusted EBITDA margin has limitations as an analytical tool, and you should not consider such measure either in isolation or as a substitute for analyzing our results as reported under U.S. GAAP. Our definition and calculation of Adjusted EBITDA margin is not necessarily comparable to other similarly titled measures used by other companies due to different methods of calculation.

Previous wording

Lastly, we use segment operating income (loss) to evaluate and assess the performance of each of our reportable segments and to make budgeting decisions. Segment operating income (loss) includes directly attributable expenses and certain shared costs of corporate administration that are allocated to our reportable segments, but excludes interest expense, net; restructuring costs; the non-service cost component of net periodic benefit cost; transaction fees and certain other non-operating gains and losses as we do not allocate these to the reportable segments.

Current wording

Lastly, we use segment operating income (loss) to evaluate the effectiveness of business strategies, assess segment operating performance and make decisions regarding costs to incur across the business. Segment operating income includes directly attributable expenses and certain shared costs of corporate administration that are allocated to the reportable segments, but excludes certain other costs, such as interest expense, net; restructuring costs; the non-service cost component of net periodic benefit cost; transaction fees; as well as other items that are not allocated to the reportable segments.

Previous wording

(1) For the nine months ended September 30, 2024, includes $7.0 million related to restructuring costs associated with the closure of certain production lines at our footwear manufacturing joint venture.

Current wording

(1) For the three months ended March 31, 2024, includes $7.0 million related to the optimization of our supply chain.

Previous wording

(2) For the three and nine months ended September 30, 2024, includes $2.1 million and $8.0 million, respectively, related to the optimization of our information technology systems.

Current wording

(2) For the three months ended March 31, 2025 and 2024, includes $2.6 million and $3.1 million, respectively, related to the optimization of our information technology systems.

Previous wording

For the nine months ended September 30, 2024, net sales increased 2.2%, or 3.1% on a constant currency basis, compared to the nine months ended September 30, 2023, primarily driven by higher sales volumes in Titleist golf clubs, Titleist golf balls and Titleist golf gear, 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 three months ended March 31, 2025, net sales decreased 0.6%, or increased 1.2% on a constant currency basis, compared to the three months ended March 31, 2024. The increase in constant currency was primarily driven by higher net sales in Titleist golf equipment, primarily due to higher sales volumes in golf balls and higher average selling prices in golf clubs, as well as higher average selling prices in Golf gear. These increases were partially offset by lower sales volumes in FootJoy golf wear in the footwear and apparel categories.

Previous wording

Net sales in regions outside the United States increased 2.2%, or 3.2% on a constant currency basis, due to higher net sales in Japan, Korea and Rest of World, partially offset by lower net sales in EMEA. In Japan, the increase was primarily due to higher net sales in Titleist golf clubs, partially offset by lower net sales in FootJoy golf wear, primarily footwear. In Korea, the increase was primarily due to higher net sales in Titleist golf clubs and Titleist golf gear, partially offset by lower net sales in Titleist golf balls. In Rest of World, the increase was primarily due to higher net sales of Titleist golf clubs partially offset by lower net sales in FootJoy golf wear, primarily footwear. In EMEA, the decrease in net sales was primarily due to 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 balls and Titleist golf clubs.

Current wording

Net sales in regions outside the United States decreased 3.5%, or increased 0.8% on a constant currency basis. Net sales increases in EMEA and Rest of World were partially offset by decreases in Korea and Japan, on a constant currency basis. In EMEA, the increase was due to higher net sales across all product segments, primarily in Titleist golf equipment and Golf gear. In Rest of World, the increase was primarily due to higher net sales in Titleist golf equipment. In Korea, the decrease was primarily due to lower net sales in FootJoy golf wear, primarily footwear, and products that are not allocated to one of our three reportable segments, partially offset by higher net sales in Titleist golf equipment. In Japan, the decrease was primarily due to lower net sales in FootJoy golf wear, primarily footwear.

Previous wording

Gross profit increased $44.4 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. Gross margin increased to 54.0% for the nine months ended September 30, 2024 compared to 53.0% for the nine months ended September 30, 2023. The increase in gross profit was primarily the result of increases in Titleist golf clubs of $25.3 million, Titleist golf balls of $19.0 million and Titleist golf gear of $9.0 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 $2.2 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 driven by a favorable product mix shift and lower manufacturing costs in Titleist golf balls.

Current wording

Gross profit decreased $5.2 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Gross margin decreased to 47.9% for the three months ended March 31, 2025 compared to 48.4% for the three months ended March 31, 2024. The decrease in gross profit was primarily the result of decreases in Titleist golf equipment of $5.2 million and FootJoy golf wear of $3.9 million. The decrease in Titleist golf equipment was primarily due to higher manufacturing costs, partially offset by the impact of the net sales increase discussed previously. The decrease in FootJoy golf wear was primarily due to the sales volume changes discussed previously. These decreases were partially offset by an increase in Golf gear of $4.6 million, primarily due to higher average selling prices and lower distribution costs. A decrease in gross profit of products not allocated to one of our three reportable segments also contributed to the change in gross profit. The decrease in gross margin was primarily driven by lower gross margin in Titleist golf equipment, primarily due to higher manufacturing costs.

Previous wording

SG&A expenses increased $40.9 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. This increase was primarily due to an increase of $13.2 million in selling expense, an increase of $13.0 million in administrative expense, $7.0 million of restructuring costs related to our footwear manufacturing joint venture, as well as an increase of $6.9 million in advertising and promotional expenses and includes the favorable impact of changes in foreign currency exchange rates. The increase in selling expense was primarily due to higher employee-related expenses, partially offset by lower retail commission expense in Korea. Administrative expense increased primarily due to higher employee and information technology-related expenses. The increase in advertising and promotional expenses was primarily related to higher professional tour expenses and new product launches, largely in Titleist golf clubs.

Current wording

Selling, general and administrative ("SG&A") expenses decreased $0.7 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, as increases in advertising and promotion expenses of $6.1 million and increases in selling expense of $2.0 million were more than offset by decreases in other expenses, primarily a $6.9 million decrease in restructuring costs. These changes in SG&A expenses include the favorable impact of changes in foreign currency exchange rates. The increase in advertising and promotion expenses was primarily in Titleist golf equipment to support new product launches. The increase in selling expense was primarily due to Titleist golf equipment fitting network investments, partially offset by lower retail commission expense in Korea.

Previous wording

Research and development expenses increased $2.7 million for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 primarily as a result of increases in employee-related expenses and additional costs to support product introductions.

Current wording

Research and development expenses increased $2.4 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily as a result of additional employee-related expenses to support next generation product introductions.

Previous wording

Interest expense, net increased $3.8 million for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 primarily due to an increase in borrowings.

Current wording

Interest expense, net increased $0.7 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to an increase in borrowings, partially offset by a decrease in interest rates.

Previous wording

Income tax expense increased $1.9 million for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Our effective tax rate (“ETR”) was 19.3% for the three months ended September 30, 2024 compared to 16.5% for the three months ended September 30, 2023. The change in the ETR was primarily driven by changes in our jurisdictional mix of earnings.

Current wording

Income tax expense decreased $1.8 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Our effective income tax rate (“ETR”) was 17.9% for the three months ended March 31, 2025 compared to 21.7% for the three months ended March 31, 2024. The change in ETR was primarily driven by changes in our jurisdictional mix of earnings.

Previous wording

Net sales in our Titleist golf clubs segment increased 8.3%, or 9.3% on a constant currency basis, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The increase was largely due to higher sales volumes of our SM10 wedges launched in the first quarter of 2024 and our newly introduced GT drivers and fairways launched in the third quarter of 2024. This increase was partially offset by lower sales volumes of hybrids and irons.

Current wording

Net sales in our Titleist golf equipment segment increased 2.2%, or 3.8% on a constant currency basis, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily driven by higher sales volumes of our latest generation Pro V1 and Pro V1x golf balls and higher average selling prices in golf clubs. In addition, higher sales volumes of our GT drivers and fairways launched in the third quarter of 2024 and GT hybrids and Scotty Cameron Studio Style putters launched in the first quarter of 2025 were more than offset by lower sales volumes of second model year wedges, irons and performance model golf balls.

Previous wording

Net sales in our FootJoy golf wear segment decreased 2.6%, or 2.3% on a constant currency basis, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. The decrease was largely due to lower sales volumes, mainly in footwear and apparel, partially offset by higher average selling prices across all product categories.

Current wording

Net sales in our FootJoy golf wear segment decreased 6.6%, or 4.9% on a constant currency basis, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to lower sales volumes in footwear and apparel, partially offset by higher average selling prices in golf gloves.

Previous wording

Operating income in our FootJoy golf wear segment increased $1.9 million, or 5.8% compared to the prior year period. The increase in operating income resulted from lower operating expenses of $4.1 million, largely offset by lower gross profit of $2.2 million. Gross profit decreased primarily as a result of the sales volume decrease and unfavorable manufacturing overhead absorption discussed previously, partially offset by higher average selling prices in apparel. Lower operating expenses were primarily a result of decreases of $5.5 million and $1.1 million in selling expense and advertising and promotional expenses, respectively, partially offset by an increase of $2.3 million in administrative expense. The decrease in selling expense was largely due to lower distribution expense and lower retail commission expense in Korea.

Current wording

Operating income in our FootJoy golf wear segment decreased $2.4 million, or 8.9% compared to the prior year period. The decrease in operating income resulted from lower gross profit of $3.9 million, partially offset by lower operating expenses of $1.5 million. Gross profit decreased primarily as a result of the sales volume decrease discussed previously, partially offset by higher average selling prices in golf gloves. Lower operating expenses were primarily a result of a decrease of $1.0 million in selling expense, primarily due to lower retail commission expense in Korea.

Previous wording

Net sales in our Titleist golf gear segment increased 2.2%, or 3.2% on a constant currency basis, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, 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.

Current wording

Net sales in our Golf gear segment increased 2.2%, or 3.9% on a constant currency basis, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, driven by higher average selling prices across all product categories, partially offset by lower sales volumes in golf bags.

Previous wording

Our primary cash needs relate to working capital, capital expenditures, servicing our debt, paying dividends, repurchasing shares of our common stock and pension contributions. Additionally, from time to time, we may make strategic acquisitions and investments to complement our products, technologies or businesses, which could impact our liquidity needs. We expect to rely on cash flows from operations and borrowings under our multi-currency revolving credit facility and local credit facilities as our primary sources of liquidity.

Current wording

Our primary cash needs relate to working capital, repurchasing shares of our common stock, capital expenditures, paying dividends, servicing our debt and pension contributions. Additionally, from time to time, we may make strategic acquisitions and investments tocomplement our products, technologies or businesses, which could impact our liquidity needs. We expect to rely on cash flows from operations and borrowings under our multi-currency revolving credit facility and local credit facilities as our primary sources of liquidity.

Previous wording

As of September 30, 2024, we had $97.3 million of unrestricted cash and cash equivalents (including $13.0 million attributable to our FootJoy golf shoe variable interest entity). As of September 30, 2024, 95.6% 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 March 31, 2025, we had $39.4 million of unrestricted cash and cash equivalents. As of March 31, 2025, 92.0% of our total unrestricted cash and cash equivalents was held by subsidiaries in regions outside of the United States. 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

Macroeconomic factors could impact our results of operations in ways we cannot currently predict. Nonetheless, we believe that cash expected to be provided by operating activities, together with our cash on hand and the availability of borrowings under our revolving credit facility and our local credit facilities (subject to customary borrowing conditions) will be sufficient to meet our liquidity requirements for at least the next 12 months. Our ability to generate sufficient cash flows from operations is, however, subject to many risks and uncertainties, including current and future economic trends and conditions, demand for our products, availability and cost of our raw materials and components, foreign currency exchange rates and other risks and uncertainties applicable to our business, as described in our Annual Report on Form 10-K for the year ended December 31, 2023.

Current wording

Macroeconomic factors could impact our results of operations in ways we cannot currently predict. Nonetheless, we believe that cash expected to be provided by operating activities, together with our cash on hand and the availability of borrowings under our multi-currency revolving credit facility and our local credit facilities (subject to customary borrowing conditions) will be sufficient to meet our liquidity requirements for at least the next 12 months. Our ability to generate sufficient cash flows from operations is, however, subject to many risks and uncertainties, including current and future economic trends and conditions, demand for our products, availability and cost of our raw materials and components, foreign currency exchange rates and other risks and uncertainties applicable to our business, as described in our Annual Report on Form 10-K for the year ended December 31, 2024. See “Risk Factors,” Item 1A of Part II to this report for additional information regarding risks associated with U.S. and foreign trade policies.

Previous wording

As of September 30, 2024, we had $586.7 million of availability under our multi-currency revolving credit facility after giving effect to $3.9 million of outstanding letters of credit. Additionally, we had $41.5 million of availability under certain local credit facilities of our subsidiaries.

Current wording

As of March 31, 2025, we had $369.5 million of availability under our multi-currency revolving credit facility after giving effect to $2.9 million of outstanding letters of credit. Additionally, we had $38.6 million available under certain local credit facilities of our subsidiaries.

Previous wording

See “Notes to Unaudited Condensed Consolidated Financial Statements – Note 5 – Debt and Financing Arrangements,” Item 1 of Part I included elsewhere in this report and “Notes to Consolidated Financial Statements – Note 11 – Debt and Financing Arrangements” in our Annual Report on Form 10-K for the year ended December 31, 2023 for a description of our debt and financing arrangements. Additionally, see “Risk Factors – Risks Related to Our Indebtedness” as described in our Annual Report on Form 10-K for the year ended December 31, 2023 for further discussion surrounding the risks and uncertainties related to our debt and financing arrangements.

Current wording

See “Notes to Unaudited Condensed Consolidated Financial Statements – Note 5 – Debt and Financing Arrangements,” Item 1 of Part I to this report and “Notes to Consolidated Financial Statements – Note 11 – Debt and Financing Arrangements” in our Annual Report on Form 10-K for the year ended December 31, 2024 for a description of our debt and financing arrangements. Additionally, see “Risk Factors – Risks Related to Our Indebtedness” as described in our Annual Report on Form 10-K for the year ended December 31, 2024 for further discussion surrounding the risks and uncertainties related to our debt and financing arrangements.

Previous wording

During the nine months ended September 30, 2024, we paid dividends on our common stock of $41.3 million to our shareholders. During the fourth quarter of 2024, our Board of Directors declared a dividend of $0.215 per share of common stock to shareholders of record as of December 6, 2024 and payable on December 20, 2024.

Current wording

During the three months ended March 31, 2025, we paid dividends on our common stock of $14.8 million to our shareholders. During the second quarter of 2025, our board of directors declared a dividend of $0.235 per share of common stock to shareholders of record as of June 6, 2025 and payable on June 20, 2025.

Previous wording

As of September 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.

Current wording

As of March 31, 2025, our board of directors had authorized us to repurchase up to an aggregate of $1.25 billion of our issued and outstanding common stock.

Previous wording

As of September 30, 2024, we had $232.2 million remaining under the current share repurchase authorization, including $62.5 million related to the June 2024 Agreement.

Current wording

During the three months ended March 31, 2025, we repurchased 540,944 shares of common stock on the open market at an average price of $67.73 for an aggregate of $36.6 million. As of March 31, 2025, we recognized a liability of $99.1 million to purchase an additional 1,476,851 shares of common stock related to our previously disclosed share repurchase agreements with Magnus Holdings Co., Ltd. ("Magnus"). As of March 31, 2025, we had $415.5 million remaining under the current share repurchase authorization, of which $62.5 million was utilized by the Company on April 10, 2025, to repurchase 935,907 shares of our common stock from Magnus in satisfaction of our obligations under one of our previously disclosed share repurchase agreements.

Previous wording

See “Notes to Unaudited Condensed Consolidated Financial Statements – Note 10 – Common Stock,” Item 1 of Part I included elsewhere in this report for a description of our share repurchase program and Magnus share repurchase agreements.

Current wording

See “Notes to Unaudited Condensed Consolidated Financial Statements – Note 10 – Common Stock,” Item 1 of Part I to this report for a description of our share repurchase program and our share repurchase agreements.

Previous wording

We made $42.5 million of capital expenditures during the nine months ended September 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.

Current wording

During the three months ended March 31, 2025, we invested $11.3 million for capital expenditures. Capital expenditures for the full year are expected to be approximately $85.0 million, although actual amounts 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, as well as investments in facilities to support our global strategic initiatives.

Previous wording

The decrease in cash provided by operating activities was primarily driven by decreases in net income and deferred income tax expense, as well as 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 increase in cash used in operating activities was primarily driven by a decrease in income from operations and an increase in cash used to fund 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 nine months ended September 30, 2023.

Current wording

The increase in cash used in investing activities was primarily driven by changes in capital expenditures.

Previous wording

The decrease in cash used in financing activities was primarily driven by a decrease in cash paid for purchases of our common stock, offset by an increase in payments of employee restricted stock tax withholdings.

Current wording

The increase in cash provided by financing activities was primarily driven by an increase in net proceeds from credit facilities, as well as a decrease in payments of employee restricted stock tax withholdings, offset in part by an increase in purchases of common stock.

Previous wording

Off-Balance Sheet Arrangements

Current wording

Contractual Obligations and Off-Balance Sheet Arrangements

Previous wording

As of September 30, 2024, other than as discussed above, we did not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on our financial condition, results of operations, liquidity, capital expenditures or capital resources.

Current wording

As of March 31, 2025, other than as discussed above, we did not have any off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on our financial condition, results of operations, liquidity, capital expenditures or capital resources.

Previous wording

We have reviewed all recently issued accounting standards and have determined that, other than as disclosed in "Notes to Unaudited Condensed Consolidated Financial Statements – Note 1 – Summary of Significant Accounting Policies," Item 1 of Part I included elsewhere in this report, such accounting standards will not have a significant impact on our consolidated financial statements or otherwise do not apply to our operations.

Current wording

We have reviewed all recently issued accounting standards and have determined that, other than as disclosed in "Notes to Unaudited Condensed Consolidated Financial Statements – Note 1 – Summary of Significant Accounting Policies," Item 1 of Part I to this report, such accounting standards will not have a significant impact on our consolidated financial statements or otherwise do not apply to our operations.