Acushnet (US:GOLF)2025-02-27 21:59Indebtedness and Interest Rate Risk - The company reported outstanding indebtedness at variable interest rates of $317.6 million as of December 31, 2024, with a sensitivity analysis indicating a potential increase of $3.2 million in annual pre-tax interest expense for a one percentage point increase in interest rates [407]. - As of December 31, 2023, the company had $255.6 million of outstanding indebtedness at variable interest rates, with a similar sensitivity analysis indicating a potential increase of $2.6 million in annual pre-tax interest expense for a one percentage point increase in interest rates [408]. - The company utilizes interest rate swap contracts with a notional value of $100.0 million to manage interest rate risk, maturing on February 28, 2025 [405]. - The company does not enter into derivatives for trading or speculative purposes, focusing instead on hedging to mitigate financial risks [410]. Foreign Exchange Risk - The gross U.S. dollar equivalent notional amount of all foreign exchange forward contracts outstanding was $192.2 million as of December 31, 2024, with a net settlement asset of $7.9 million [412]. - If the U.S. dollar weakened by 10% against all currencies covered by the foreign exchange forward contracts as of December 31, 2024, the net settlement asset would decrease by $14.3 million, resulting in a net settlement liability of $6.4 million [412]. - The company monitors the credit quality of counterparties to derivative contracts, which are major financial institutions with investment grade credit ratings [415]. Commodity Price and Inflation Risks - The company is exposed to commodity price and availability risks for materials such as polybutadiene, titanium, and leather, which are essential for manufacturing its products [416]. - Inflation in raw materials and input costs has historically impacted the company's business, and future higher inflationary environments could materially affect its financial position and cash flows [417]. Forward-Looking Statements - The company acknowledges that actual results may differ materially from forward-looking statements due to various market and economic factors beyond its control [14].