Acushnet Holdings Corp.

Previous wording

In February 2026, the U.S. Supreme Court ruled that certain tariffs imposed under IEEPA were invalid, and in March 2026, the U.S. Court of International Trade issued an order directing CBP to refund duties collected under IEEPA. In April 2026, CBP established a refund portal, allowing importers of record and authorized customs brokers to submit refund requests. We have submitted refund requests through this portal for duties paid on qualifying imports. During the three and six months ended June 30, 2026, we recognized benefits related to IEEPA tariff refunds of $44.5 million in costs of goods sold, $0.6 million in selling, general and administrative expenses, and $1.5 million in interest expense, net. These benefits were partially offset by a resulting increase in incentive compensation expense of approximately $7 million. While we continue to evaluate opportunities for additional tariff refunds, we do not expect any future recoveries to have a significant impact on our results of operations. See “Notes to Unaudited Condensed Consolidated Financial Statements – Note 15 – Commitments and Contingencies,” Item 1 of Part I to this report.

Current wording

In February 2026, the U.S. Supreme Court ruled that certain tariffs imposed under IEEPA were invalid, and in March 2026, the U.S. Court of International Trade issued an order directing CBP to refund duties collected under IEEPA. In April 2026, CBP established a refund portal, allowing importers of record and authorized customs brokers to submit refund requests. We have submitted refund requests through this portal for duties paid on qualifying imports. During the nine months ended September 30, 2026, we recognized benefits related to IEEPA tariff refunds of $44.7 million in costs of goods sold, $1.0 million in selling, general and administrative expenses, and $1.5 million in interest expense, net. These benefits were partially offset by a resulting increase in incentive compensation expense of approximately $12.0 million. While we continue to evaluate opportunities for additional tariff refunds, we do not expect any future recoveries to have a significant impact on our results of operations. See “Notes to Unaudited Condensed Consolidated Financial Statements – Note 15 – Commitments and Contingencies,” Item 1 of Part I to this report.

Previous wording

Information Technology Optimization: During 2024, we began a multi-year implementation of a new global cloud-based enterprise resource planning ("ERP") platform as part of our plans to integrate our operations and enhance our supply chain and finance capabilities. We expect that the new global ERP platform will enable further operating efficiencies and support the Company’s digital transformation. Additional implementation activities are expected to continue in phases by geographic region over the next several years. The global ERP platform implementation spending comprises both capitalized costs and operating expenses. The operating expenses represent costs directly related to the deployment of the global ERP platform above the normal ongoing level of spending on information technology to support our operations. In connection with this strategic initiative, we incurred expenses of $6.9 million and $3.4 million, during the three months ended June 30, 2026 and 2025, respectively, and $9.9 million and $6.0 million, during the six months ended June 30, 2026 and 2025, respectively. In addition, we invested $13.3 million and $21.2 million for capitalized implementation costs associated with the integration, configuration and customization of this new global ERP platform during the six months ended June 30, 2026 and 2025, respectively. We anticipate spending approximately $35 million to $40 million in total for the full year related to the deployment of the new global ERP platform.

Current wording

Information Technology Optimization: During 2024, we began a multi-year implementation of a new global cloud-based enterprise resource planning ("ERP") platform as part of our plans to integrate our operations and enhance our supply chain and finance capabilities. We expect that the new global ERP platform will enable further operating efficiencies and support the Company’s digital transformation. During the third quarter of 2026, the Company completed the first phase of its implementation primarily in North America and golf ball manufacturing operations in Thailand. The implementation temporarily disrupted our custom embroidery operations, resulting in lower sales volumes in our FootJoy golf wear segment and, to a lesser extent, our Golf gear segment during the quarter. Additional implementation activities are expected to continue in phases across the remaining geographic regions. The global ERP platform implementation spending comprises both capitalized costs and operating expenses. The operating expenses represent costs directly related to the deployment of the global ERP platform above the normal ongoing level of spending on information technology to support our operations. In connection with this strategic initiative, we incurred expenses of $8.6 million and $1.8 million, during the three months ended September 30, 2026 and 2025, respectively, and $18.5 million and $7.8 million, during the nine months ended September 30, 2026 and 2025, respectively. In addition, we invested $16.4 million and $29.7 million for capitalized implementation costs associated with the integration, configuration and customization of this new global ERP platform during the nine months ended September 30, 2026 and 2025, respectively. We anticipate spending approximately $40 million in total for the full year related to the deployment of the new global ERP platform.

Previous wording

(2) For the three and six months ended June 30, 2026, includes $6.9 million and $9.9 million, respectively, related to our information technology optimization. For the three and six months ended June 30, 2025, includes $3.4 million and $6.0 million, respectively, related to our information technology optimization.

Current wording

(2) For the three and nine months ended September 30, 2026, includes $8.6 million and $18.5 million, respectively, related to our information technology optimization. For the three and nine months ended September 30, 2025, includes $1.8 million and $7.8 million, respectively, related to our information technology optimization.

Previous wording

(3) For the six months ended June 30, 2025, includes a non-cash gain of $20.9 million related to the deconsolidation of Lionscore. The three and six months ended June 30, 2026 and 2025 also include other gains, losses or costs added back for purposes of calculating Adjusted EBITDA as defined in our credit agreement.

Current wording

(3) For the nine months ended September 30, 2025, includes a non-cash gain of $20.9 million related to the deconsolidation of Lionscore. The three and nine months ended September 30, 2026 and 2025 also include other gains, losses or costs added back for purposes of calculating Adjusted EBITDA as defined in our credit agreement.

Previous wording

(4)For the three and six months ended June 30, 2026, includes $45.1 million related to IEEPA tariff refunds, partially offset by a resulting increase in incentive compensation expense of approximately $7 million.

Current wording

(4)For the nine months ended September 30, 2026, includes $45.8 million related to IEEPA tariff refunds, partially offset by a resulting increase in incentive compensation expense of approximately $12.0 million.

Previous wording

For the six months ended June 30, 2026, net sales increased 10.5%, or 9.5% on a constant currency basis, compared to the six months ended June 30, 2025. The increase was driven by growth across all reportable segments largely as a result of higher net sales in Titleist golf equipment, primarily due to higher sales volumes in golf clubs and higher average selling prices in golf balls, as well as higher net sales in Golf gear, primarily due to higher average selling prices across all product categories.

Current wording

For the three months ended September 30, 2026, net sales decreased 1.3%, or 0.6% on a constant currency basis, compared to the three months ended September 30, 2025. The decrease was due to lower net sales in FootJoy golf wear and Golf gear, primarily related to lower sales volumes, partially offset by higher net sales in Titleist golf equipment, primarily due to higher sales volumes and average selling prices in golf balls.

Previous wording

The increase in net sales in the United States was primarily driven by an increase in Titleist golf equipment of $59.0 million. The increase in Titleist golf equipment was primarily driven by higher sales volumes in golf clubs, including our recently introduced GTS drivers and fairways and latest generation T-Series irons, as well as higher average selling prices and sales volumes of our Pro V1 golf ball models.

Current wording

The decrease in net sales in the United States was primarily driven by decreases in FootJoy golf wear of $7.5 million and Golf gear of $5.5 million, partially offset by an increase in Titleist golf equipment of $5.3 million. The decreases in FootJoy golf wear and Golf gear were primarily due to lower sales volumes across all product categories. The increase in Titleist golf equipment was primarily driven by higher sales volumes of our recently introduced GTS drivers and fairways, as well as higher average selling prices of our Pro V1 golf ball models, partially offset by lower sales volumes of our second model year T-Series irons.

Previous wording

Net sales in regions outside the United States increased 12.4%, or 13.3% on a constant currency basis, due to increases across all regions. In EMEA, the increase was primarily due to higher net sales in Titleist golf equipment, driven by golf clubs. In Rest of World, the increase was driven by higher net sales across all reportable segments. In Japan, the increase was due to higher net sales in Titleist golf equipment, mainly golf clubs, partially offset by lower net sales of products that are not allocated to one of our three reportable segments. In Korea, the increase, on a constant currency basis, was primarily due to higher net sales in Titleist golf equipment, mainly golf clubs.

Current wording

Net sales in regions outside the United States decreased 1.2%, or increased 0.5% on a constant currency basis. Net sales increases in EMEA and Japan were partially offset by decreases in Korea and Rest of World, on a constant currency basis. In EMEA, the increase was primarily driven by higher net sales of products that are not allocated to one of our three reportable segments and in Titleist golf equipment, mainly golf balls. In Japan, the increase, on a constant currency basis, was due to higher net sales across all reportable segments, partially offset by lower net sales of products that are not allocated to one of our three reportable segments. In Korea, the decrease was primarily due to lower net sales in FootJoy golf wear, mainly apparel. In Rest of World, the decrease was due to lower net sales across all reportable segments, offset in part by an increase in net sales of products that are not allocated to one of our three reportable segments.

Previous wording

Gross profit increased $91.5 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Gross margin increased to 54.4% for the three months ended June 30, 2026 compared to 49.2% for the three months ended June 30, 2025. The increase in gross profit was primarily the result of an increase in Titleist golf equipment of $75.6 million, as well as increases in FootJoy golf wear of $12.2 million and in Golf gear of $3.7 million. These increases

Current wording

Gross profit increased $2.9 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Gross margin increased to 49.6% for the three months ended September 30, 2026 compared to 48.5% for the three months ended September 30, 2025. The increase in gross profit was the result of increases in FootJoy golf wear, primarily due to lower manufacturing costs, and increases in products not allocated to one of our three reportable segments. These increases were partially offset by a decrease in Titleist golf equipment, primarily due to higher product costs.

Previous wording

Selling, general and administrative (“SG&A”) expenses increased $24.2 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This increase was primarily the result of increases of $10.0 million in advertising and promotion expenses, $7.8 million in administrative expense and $6.5 million in selling expense. The increase in advertising and promotion expenses was primarily in Titleist golf equipment to support new product launches. The increase in administrative expense was primarily due to the higher incentive compensation expenses discussed above and higher information technology-related expenses. The increase in selling expense was primarily due to the higher incentive compensation expenses discussed above and investments in our product fitting networks. SG&A expenses also include a $3.5 million increase in expense related to our information technology optimization, as well as a $3.7 million increase in foreign currency transaction losses, offset in part by a $2.5 million increase in gains on foreign exchange forward contracts. In addition, during the three months ended June 30, 2025, SG&A expenses include restructuring costs of $6.4 million related to the VBR program.

Current wording

Selling, general and administrative (“SG&A”) expenses increased $12.3 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. This increase was primarily the result of increases of $6.0 million in administrative expense and $3.8 million in selling expense. The increase in administrative expense was primarily due to the higher incentive compensation expenses discussed above and higher information technology-related expenses. The increase in selling expense was primarily due to the higher incentive compensation expenses discussed above. SG&A expenses also includes a $6.8 million increase in expense related to our information technology optimization. In addition, during the three months ended September 30, 2025, SG&A expenses included restructuring costs of $2.1 million related to the VBR program.

Previous wording

Interest expense, net decreased $3.6 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to a decrease in interest rates, as well as interest income on IEEPA tariff refunds, partially offset by an increase in borrowings.

Current wording

Interest expense, net decreased $2.7 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to a decrease in interest rates.

Previous wording

Income tax expense increased $20.1 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Our ETR was 23.6% for the three months ended June 30, 2026 compared to 19.9% for the three months ended June 30, 2025. The change in ETR was primarily driven by changes in our jurisdictional mix of earnings, as well as a reduced income tax benefit related to the U.S. deduction of foreign derived intangible income.

Current wording

Income tax expense decreased $11.4 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Our ETR was 25.5% for the three months ended September 30, 2026 compared to 37.3% for the three months ended September 30, 2025. The change in ETR was primarily driven by changes in our jurisdictional mix of earnings, as well as a reduced income tax benefit related to the U.S. deduction of foreign derived intangible income resulting from the enactment of the One Big Beautiful Act in the three months ended September 30, 2025.

Previous wording

Net sales in our Titleist golf equipment segment increased 20.3%, or 20.6% on a constant currency basis, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by higher sales volumes of our recently introduced GTS drivers and fairways and latest generation T-Series irons, as well as higher average selling prices of our Pro V1 golf ball models.

Current wording

Net sales in our Titleist golf equipment segment increased 0.5%, or 1.2% on a constant currency basis, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily driven by higher sales volumes of our recently introduced GTS drivers and fairways, as well as higher average selling prices and higher sales volumes of our Pro V1 golf ball models. These increases were partially offset by lower sales volumes of our second model year T-Series irons.

Previous wording

For the three months ended June 30, 2026, net sales increased 13.8%, or 14.2% on a constant currency basis, compared to the three months ended June 30, 2025. The increase was driven by higher net sales in Titleist golf equipment, primarily due to higher sales volumes in golf clubs and higher average selling prices in golf balls, as well as higher net sales in FootJoy golf wear and Golf gear, due to higher average selling prices across all product categories in both segments.

Current wording

For the nine months ended September 30, 2026, net sales increased 6.8%, or 6.3% on a constant currency basis, compared to the nine months ended September 30, 2025. The increase was largely driven by higher net sales in Titleist golf equipment, primarily due to higher sales volumes in golf clubs and higher average selling prices and sales volumes in golf balls.

Previous wording

The increase in net sales in the United States was primarily driven by an increase in Titleist golf equipment of $76.9 million. The increase in Titleist golf equipment was primarily driven by higher sales volumes of our newly introduced GTS drivers and fairways, SM11 Vokey wedges and latest generation T-Series irons, and higher average selling prices of our Pro V1 golf ball models, partially offset by lower sales volumes of our second model year hybrids.

Current wording

The increase in net sales in the United States was primarily driven by an increase in Titleist golf equipment of $82.2 million. The increase in Titleist golf equipment was primarily driven by higher sales volumes of our newly introduced GTS drivers and fairways and SM11 Vokey wedges, as well as higher average selling prices of our Pro V1 golf ball models, partially offset by lower sales volumes of our second model year hybrids and T-Series irons.

Previous wording

Net sales in regions outside the United States increased 11.4%, or 9.0% on a constant currency basis, driven by increases in EMEA, Rest of World and Japan. In EMEA and Rest of World, the increases were primarily driven by higher net sales across all reportable segments. In Japan, the increase was driven by higher net sales in Titleist golf equipment, mainly golf clubs, partially offset by lower net sales in FootJoy golf wear. In Korea, net sales were up slightly on a constant currency basis, primarily due to an increase in Titleist golf equipment net sales, partially offset by a decrease in Golf gear net sales.

Current wording

Net sales in regions outside the United States increased 7.4%, or 6.3% on a constant currency basis, driven by increases in EMEA, Rest of World and Japan. In EMEA and Rest of World, the increases were primarily driven by higher net sales across all reportable segments as well as an increase in net sales of products that are not allocated to one of our three reportable segments. In Japan, the increase was driven by higher net sales in Titleist golf equipment, mainly golf clubs. In Korea, net sales decreased primarily due to lower net sales in Golf gear and FootJoy golf wear, mainly apparel, partially offset by higher net sales in Titleist golf equipment, mainly golf clubs.

Previous wording

30, 2025. The increase in gross profit was primarily the result of an increase in Titleist golf equipment of $93.3 million, as well as increases in FootJoy golf wear of $9.4 million and Golf gear of $6.6 million. These increases were driven by IEEPA tariff refunds of $44.5 million, as well as the higher sales volumes and average selling prices in Titleist golf equipment discussed above, partially offset by higher tariff costs due to tariff measures discussed previously.

Current wording

Gross profit increased $112.5 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. Gross margin was 50.5% for the nine months ended September 30, 2026 compared to 48.6% for the nine months ended September 30, 2025. The increase in gross profit was primarily the result of an increase in Titleist golf equipment of $89.8 million, as well as increases in FootJoy golf wear of $12.3 million and Golf gear of $6.3 million. These increases were driven by IEEPA tariff refunds of $44.7 million, as well as the higher sales volumes and average selling prices in Titleist golf equipment discussed above and lower manufacturing costs in FootJoy golf wear. These increases were partially offset by higher tariff costs due to tariff measures discussed previously.

Previous wording

SG&A expenses increased $37.6 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. This increase was primarily the result of increases of $13.4 million in advertising and promotion expenses, $11.9 million in administrative expense and $11.1 million in selling expense. The increase in advertising and promotion expenses was primarily in Titleist golf equipment to support new product launches. The increase in administrative expense was primarily due to the higher incentive compensation expenses discussed above and higher information technology-related expenses. The increase in selling expense was primarily due to the higher incentive compensation expenses discussed above, and investments to expand our product fitting networks. SG&A expenses also include a $3.9 million increase in expense related to our information technology optimization, as well as a $6.9 million increase in foreign currency transaction losses, offset in part by a $4.2 million increase in gains on foreign exchange forward contracts. In addition, during the six months ended June 30, 2025, SG&A expenses include restructuring costs of $6.4 million related to the VBR program.

Current wording

SG&A expenses increased $50.0 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. This increase was primarily the result of increases of $17.9 million in administrative expense, $14.9 million in selling expense and $12.7 million in advertising and promotion expenses. The increase in administrative expense was primarily due to the higher incentive compensation expenses discussed above and higher information technology-related expenses. The increase in selling expense was primarily due to the higher incentive compensation expenses discussed above, and investments to enhance consumer engagement. The increase in advertising and promotion expenses was primarily in Titleist golf equipment to support new product launches. SG&A expenses also include a $10.7 million increase in expense related to our information technology optimization, as well as a $4.1 million decrease in foreign currency transaction gains, offset in part by a $2.2 million decrease in losses on foreign exchange forward contracts. In addition, during the nine months ended September 30, 2025, SG&A expenses included restructuring costs of $8.6 million related to the VBR program.

Previous wording

Research and development expenses increased $2.2 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily related to Titleist golf equipment.

Current wording

Research and development expenses increased $3.0 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily related to next generation product development within Titleist golf equipment.

Previous wording

Intangible amortization expense decreased $1.3 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 due to certain intangible assets becoming fully amortized during the prior period.

Current wording

Intangible amortization expense decreased $0.2 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, due to certain intangible assets becoming fully amortized during the prior period, offset in part by the recognition of impairment losses related to certain indefinite-lived intangible assets.

Previous wording

Interest expense, net decreased $2.9 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to a decrease in interest rates, as well as interest income on IEEPA tariff refunds, partially offset by an increase in borrowings.

Current wording

Interest expense, net decreased $6.3 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to a decrease in interest rates, partially offset by an increase in borrowings.

Previous wording

Other expense, net increased $21.0 million for the six months ended June 30, 2026 compared to other income, net of $18.9 million for the six months ended June 30, 2025, primarily due to a non-cash gain of $20.9 million recognized in the prior year period related to the deconsolidation of Lionscore.

Current wording

Other expense, net increased $20.4 million for the nine months ended September 30, 2026 compared to other income, net of $17.1 million for the nine months ended September 30, 2025, primarily due to a non-cash gain of $20.9 million recognized in the prior year period related to the deconsolidation of Lionscore.

Previous wording

Income tax expense increased $22.6 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Our ETR was 23.3% for the six months ended June 30, 2026 compared to 18.7% for the six months ended June 30, 2025. The change in ETR was primarily driven by changes in our jurisdictional mix of earnings, as well as a reduced income tax benefit related to the U.S. deduction of foreign derived intangible income.

Current wording

Income tax expense increased $11.2 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. Our ETR was 23.8% for the nine months ended September 30, 2026 compared to 23.6% for the nine months ended September 30, 2025. The change in ETR was primarily driven by changes in our jurisdictional mix of earnings.

Previous wording

Net sales in our Titleist golf equipment segment increased 14.8%, or 14.1% on a constant currency basis, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by higher sales volumes of our recently launched SM11 Vokey wedges, newly introduced GTS drivers and fairways and latest generation T-Series irons, higher average selling prices of our Pro V1 golf ball models, partially offset by lower sales volumes of our second model year hybrids.

Current wording

Net sales in our Titleist golf equipment segment increased 10.1%, or 9.9% on a constant currency basis, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by higher sales volumes of our recently launched GTS drivers and fairways and SM11 Vokey wedges, as well as higher average selling prices of our Pro V1 golf ball models. These increases were partially offset by lower sales volumes of our second model year hybrids and T-Series irons.

Previous wording

Operating income in our Titleist golf equipment segment increased $64.5 million, or 39.9% compared to the prior year period. The increase in operating income resulted from higher gross profit of $93.3 million, partially offset by higher operating expenses of $28.9 million. The increase in gross profit was primarily driven by the higher sales volumes and higher average selling prices discussed previously and IEEPA tariff refunds, partially offset by higher tariff costs. Higher operating expenses were a result of increases of $12.0 million in advertising and promotion expenses, $8.9 million in selling expense, and $8.8 million in administrative expense. These increases were partially offset by a decrease of $2.5 million in amortization expense, as discussed previously.

Current wording

Operating income in our Titleist golf equipment segment increased $51.8 million, or 21.1% compared to the prior year period. The increase in operating income resulted from higher gross profit of $89.8 million, partially offset by higher operating expenses of $38.0 million. The increase in gross profit was primarily driven by the higher sales volumes and higher average selling prices discussed previously and IEEPA tariff refunds, partially offset by higher tariff costs. Higher operating expenses were a result of increases of $13.1 million in administrative expense, $11.4 million in advertising and promotion expenses and $11.2 million in selling expense.

Previous wording

Net sales in our Golf gear segment increased 3.8%, or 3.9% on a constant currency basis, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by higher average selling prices across all product categories, partially offset by lower sales volumes in the travel product category and golf bags.

Current wording

Net sales in our Golf gear segment increased 2.3%, or 1.6% on a constant currency basis, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by higher average selling prices across all product categories, partially offset by lower sales volumes in the travel product category.

Previous wording

Operating income in our Golf gear segment increased $5.0 million, or 16.2% compared to the prior year period. The increase in operating income resulted from higher gross profit of $6.6 million. The increase in gross profit was due to IEEPA tariff refunds, offsetting higher tariff costs. An increase in operating expenses of $1.6 million partially offset the increase in gross profit.

Current wording

Operating income in our Golf gear segment increased $3.8 million, or 10.0% compared to the prior year period. The increase in operating income resulted from higher gross profit of $6.3 million. The increase in gross profit was primarily driven by IEEPA tariff refunds, partially offset by higher tariff costs. An increase in operating expenses of $2.5 million partially offset the increase in gross profit.

Previous wording

As of June 30, 2026, we had $66.6 million of unrestricted cash and cash equivalents (including $2.8 million attributable to ACL FootJoy, a VIE). As of June 30, 2026, 95.4% of our total unrestricted cash and cash equivalents was held by subsidiaries in regions outside of the United States, including ACL FootJoy. 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 September 30, 2026, we had $106.7 million of unrestricted cash and cash equivalents (including $1.2 million attributable to ACL FootJoy, a VIE). As of September 30, 2026, 98.1% of our total unrestricted cash and cash equivalents was held by subsidiaries in regions outside of the United States, including ACL FootJoy. 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 June 30, 2026, we had $504.4 million of available borrowing capacity under the Revolving Credit Facility after giving effect to $4.0 million of outstanding letters of credit. Additionally, we had $28.9 million available borrowing capacity under certain local credit facilities of our subsidiaries.

Current wording

As of September 30, 2026, we had $595.4 million of available borrowing capacity under the Revolving Credit Facility after giving effect to $4.0 million of outstanding letters of credit. Additionally, we had $34.8 million available borrowing capacity under certain local credit facilities of our subsidiaries.

Previous wording

During the six months ended June 30, 2026, we paid dividends on our common stock of $30.8 million to our shareholders. During the third quarter of 2026, our board of directors declared a dividend of $0.255 per share of common stock to shareholders of record as of September 4, 2026 and payable on September 18, 2026.

Current wording

During the nine months ended September 30, 2026, we paid dividends on our common stock of $45.4 million to our shareholders. During the fourth quarter of 2026, our board of directors declared a dividend of $0.255 per share of common stock to shareholders of record as of December 4, 2026 and payable on December 18, 2026.

Previous wording

As of June 30, 2026, our board of directors had authorized us to repurchase up to an aggregate of $1.25 billion of our issued and outstanding common stock since the share repurchase program was established in 2018. During the six months ended June 30, 2026, we repurchased 288,239 shares of our common stock at an average price of $90.21 for an aggregate of $26.0 million.

Current wording

As of September 30, 2026, our board of directors had authorized us to repurchase up to an aggregate of $1.25 billion of our issued and outstanding common stock since the share repurchase program was established in 2018. During the nine months ended September 30, 2026, we repurchased 904,988 shares of our common stock at an average price of $89.94 for an aggregate of $81.4 million. As of September 30, 2026, we recognized a liability of $52.5 million to purchase an additional 583,527 shares of common stock from Magnus. As of September 30, 2026, we had $159.3 million remaining under the current share repurchase authorization, of which $52.5 million was utilized on October 15, 2026, to repurchase 583,527 shares of our common stock from Magnus in satisfaction of our previously disclosed obligations under a share repurchase agreement with Magnus.

Previous wording

During the six months ended June 30, 2026, we invested $37.3 million in capital expenditures. We expect to invest approximately $95.0 million in capital expenditures for the full year, 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.

Current wording

During the nine months ended September 30, 2026, we invested $57.4 million in capital expenditures. We expect to invest approximately $95.0 million in capital expenditures for the full year, 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

In addition, during the six months ended June 30, 2026, we invested $13.3 million in capitalized implementation costs associated with the implementation of a new global cloud-based ERP platform as part of our plans to integrate our operations and enhance our supply chain and finance capabilities. We expect to invest approximately $25.0 million in capitalized implementation costs associated with this global ERP platform for the full year.

Current wording

In addition, during the nine months ended September 30, 2026, we invested $16.4 million in capitalized implementation costs associated with the implementation of a new global cloud-based ERP platform as part of our plans to integrate our operations and enhance our supply chain and finance capabilities. Upon completion of the first phase of our global ERP platform implementation during the third quarter of 2026, we ceased capitalizing the related implementation costs and began expensing applicable post-implementation costs. Capitalization of costs associated with the second phase are expected to continue in future periods as implementation activities remain ongoing. We expect to invest up to $20.0 million in capitalized implementation costs associated with this global ERP platform for the full year.

Previous wording

The increase in cash provided by operating activities was primarily driven by growth in operating income, including IEEPA tariff refunds recognized, offset in part by an increase in cash used to fund working capital requirements. 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 provided by operating activities was primarily driven by growth in operating income, including IEEPA tariff refunds recognized, and a decrease in cash used to fund working capital requirements. 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 increase in cash used in financing activities was primarily driven by a decrease in net proceeds from credit facilities, offset in part by a decrease in purchases of common stock.

Current wording

The increase in cash used in financing activities was primarily due to a decrease in net proceeds from credit facilities, offset in part by a decrease in purchases of common stock.