Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2016 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from to Commission File Number: 001-37935 Acushnet Holdings Corp. (Exact name of registrant as specified in its charter) Delaware 45-5644353 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 333 Bridge Street Fairhaven, Massachusetts 02719 (Address of principal executive offices) (800) 225-8500 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Stock, par value $0.001 per share New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ◻ No ☑ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934. Yes ◻ No ☑ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ◻ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ◻ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K . ☑ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ◻ Accelerated filer ◻ Non-accelerated filer ☑ Smaller reporting company ◻ ( Do not check if a smaller reporting company) Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No ☑ As of June 30, 2016, the last day of the registrant’s most recently completed second quarter, the registrant’s common stock was not publicly traded. The registrant's common stock, $0.001 par value per share, began trading on the New York Stock Exchange on October 28, 2016. As of March 24, 2017, the aggregate market value of the registrant’s common stock held by non-affiliates of the registrant was approximately $623.5 million (based upon the closing sale price of the common stock on that date on the New York Stock Exchange). The number of shares the Registrant's common stock outstanding on March 24, 2017 was 74,451,977. DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A relating to the Registrant’s Annual General Meeting of Shareholders, to be held on June 12, 2017, will be incorporated by reference in this Form 10-K in response to Items 10, 11, 12, 13 and 14 of Part III. The definitive proxy statement will be filed with the SEC not later than 120 days after the registrant’s fiscal year ended December 31, 2016. Table of Contents TABLE OF CONTENTS Page Part I Item 1. Business 6 Item 1A. Risk Factors 33 Item 1B. Unresolved Staff Comments 63 Item 2. Properties 64 Item 3. Legal Proceedings 65 Item 4. Mine Safety Disclosures 65 Part II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 67 Item 6. Selected Consolidated Financial Data 69 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 74 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 112 Item 8. Financial Statements and Supplementary Data 113 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures 113 Item 9A. Controls and Procedures 113 Item 9B. Other Information 115 Part III Item 10. Directors, Executive Officers and Corporate Governance 116 Item 11. Executive Compensation 116 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stocholder Matters 116 Item 13. Certain Relationships and Related Transactions, and Director Independence 116 Item 14. Principal Accountant Fees and Services 116 Item 15. Exhibits and Financial Statement Schedules 116 Item 16. 10‑K Summary 118 In this Annual Report on Form 10‑K, the terms “Acushnet,” “we,” “us,” “our” and the “Company” refer to Acushnet Holdings Corp. and its consolidated subsidiaries. i Table of Contents FORWARD-LOOKING STATEMENTS This Annual Report on Form 10‑K contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by that section. These forward-looking statements are included throughout this report, including in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and relate to matters such as our industry, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. We have used the words “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable” and similar terms and phrases to identify forward-looking statements in this report. The forward-looking statements contained in this report are based on management’s current expectations and are subject to uncertainty and changes in circumstances. We cannot assure you that future developments affecting us will be those that we have anticipated. Actual results may differ materially from these expectations due to changes in global, regional or local economic, business, competitive, market, regulatory and other factors, many of which are beyond our control. We believe that these factors include, but are not limited to: · a reduction in the number of rounds of golf played or in the number of golf participants; · unfavorable weather conditions may impact the number of playable days and rounds played in a given year; · macroeconomic factors may affect the number of rounds of golf played and related spending on golf products; · demographic factors may affect the number of golf participants and related spending on our products; · a significant disruption in the operations of our manufacturing, assembly or distribution facilities; · our ability to procure raw materials or components of our products; · a disruption in the operations of our suppliers; · cost of raw materials and components; · currency transaction and translation risk; · our ability to successfully manage the frequent introduction of new products; · our reliance on technical innovation and high-quality products; · changes of the Rules of Golf with respect to equipment; · our ability to adequately enforce and protect our intellectual property rights; · involvement in lawsuits to protect, defend or enforce our intellectual property rights; · our ability to prevent infringement of intellectual property rights by others; · recent changes to U.S. patent laws and proposed changes to the rules of the U.S. Patent and Trademark Office; · intense competition and our ability to maintain a competitive advantage in each of our markets; ii Table of Contents · limited opportunities for future growth in sales of golf balls, golf shoes and golf gloves; · our customers’ financial condition, their levels of business activity and their ability to pay trade obligations; · a decrease in corporate spending on our custom logo golf balls; · our ability to maintain and further develop our sales channels; · consolidation of retailers or concentration of retail market share; · our ability to maintain and enhance our brands; · seasonal fluctuations of our business; · fluctuations of our business based on the timing of new product introductions; · risks associated with doing business globally; · compliance with laws, regulations and policies, including the U.S. Foreign Corrupt Practices Act (the “FCPA”) or other applicable anti-corruption legislation; · our ability to secure professional golfers to endorse or use our products; · negative publicity relating to us or the golfers who use our products or the golf industry in general; · our ability to accurately forecast demand for our products; · a disruption in the service or increase in cost, of our primary delivery and shipping services