INDEXTOCONSOLIDATEDFINANCIALSTATEMENTSd18rn0p25nwr6d.cloudfront.net/CIK-0001672013/6c12af7b-d... ·...

UsetheselinkstorapidlyreviewthedocumentTABLEOFCONTENTSINDEXTOCONSOLIDATEDFINANCIALSTATEMENTS

AsfiledwiththeSecuritiesandExchangeCommissiononOctober17,2016

RegistrationStatementNo.333-212116

UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION

Washington,D.C.20549

AmendmentNo.4to

FORMS-1REGISTRATIONSTATEMENT

UNDERTHESECURITIESACTOF1933

AcushnetHoldingsCorp.(ExactnameofRegistrantasspecifiedinitscharter)

Delaware(Stateorotherjurisdictionof

incorporationororganization)

3949(PrimaryStandardIndustrialClassificationCodeNumber)

45-5644353(I.R.S.EmployerIdentificationNo.)

333BridgeStreetFairhaven,Massachusetts02719

(800)225-8500(Address,includingzipcode,andtelephonenumber,includingareacode,ofRegistrant'sprincipalexecutiveoffices)

JosephJ.NaumanExecutiveVicePresident,ChiefLegalandAdministrativeOfficerandSecretary

333BridgeStreetFairhaven,Massachusetts02719

(800)225-8500(Name,address,includingzipcode,andtelephonenumber,includingareacode,ofagentforservice)

Copiesto

RoxaneF.Reardon,Esq.SimpsonThacher&BartlettLLP

425LexingtonAvenueNewYork,NewYork10017

(212)455-2000

JinHyukPark,Esq.

SimpsonThacher&BartlettLLP35thFloor,ICBCTower3GardenRoad,Central

HongKong+8522514-7600

KirkA.DavenportII,Esq.NathanAjiashvili,Esq.Latham&WatkinsLLP

885ThirdAvenueNewYork,NewYork10022

(212)906-1200

Approximatedateofcommencementofproposedsaletothepublic:AssoonaspracticableaftertheeffectivedateofthisRegistrationStatement.

IfanyofthesecuritiesbeingregisteredonthisFormarebeingofferedonadelayedorcontinuousbasispursuanttoRule415undertheSecuritiesAct,checkthefollowingbox.o

IfthisFormisfiledtoregisteradditionalsecuritiesforanofferingpursuanttoRule462(b)undertheSecuritiesAct,checkthefollowingboxandlisttheSecuritiesActregistrationstatementnumberoftheearliereffectiveregistrationstatementforthesameoffering.o

IfthisFormisapost-effectiveamendmentfiledpursuanttoRule462(c)undertheSecuritiesAct,checkthefollowingboxandlisttheSecuritiesActregistrationstatementnumberoftheearliereffectiveregistrationstatementforthesameoffering.o

IfthisFormisapost-effectiveamendmentfiledpursuanttoRule462(d)undertheSecuritiesAct,checkthefollowingboxandlisttheSecuritiesActregistrationstatementnumberoftheearliereffectiveregistrationstatementforthesameoffering.o

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,orasmallerreportingcompany.Seethedefinitionsof"largeacceleratedfiler,""acceleratedfiler"and"smallerreportingcompany"inRule12b-2oftheExchangeAct.

CALCULATIONOFREGISTRATIONFEE

TitleofEachClassofSecuritiestobeRegistered

AmounttoBeRegistered(1)

ProposedMaximumOfferingPriceper

Share(2)

ProposedMaximumAggregateOffering

Price(1)(2) Amountof

RegistrationFee(3)

Commonstock,$0.001parvaluepershare 22,233,332 $24.00 $533,599,968 $60,324.24

(1) Includes2,899,999sharesofcommonstockthatmaybesoldiftheunderwriters'optiontopurchaseadditionalsharesisexercised.

(2) EstimatedsolelyforthepurposeofcalculatingtheregistrationfeepursuanttoRule457(a)undertheSecuritiesActof1933,asamended.

(3) TheRegistrantpaid$10,070oftheregistrationfee,withrespectto$100,000,000oftheproposedmaximumaggregateofferingprice,inconnectionwiththeinitialfilingofthisregistrationstatement.

TheRegistrantherebyamendsthisRegistrationStatementonsuchdateordatesasmaybenecessarytodelayitseffectivedateuntiltheRegistrantshallfileafurtheramendmentwhichspecificallystatesthatthisRegistrationStatementshallthereafterbecomeeffectiveinaccordancewithSection8(a)oftheSecuritiesActof1933oruntiltheRegistrationStatementshallbecomeeffectiveonsuchdateastheSecuritiesandExchangeCommission,actingpursuanttosaidSection8(a),maydetermine.

Largeacceleratedfilero Acceleratedfilero Non-acceleratedfilerý(Donotcheckifa

smallerreportingcompany)

Smallerreportingcompanyo

TableofContents

Theinformationinthispreliminaryprospectusisnotcompleteandmaybechanged.WemaynotsellthesesecuritiesuntiltheregistrationstatementfiledwiththeSecuritiesandExchangeCommissioniseffective.Thisprospectusisnotanoffertosellthesesecuritiesanditisnotsolicitinganoffertobuythesesecuritiesinanyjurisdictionwheretheofferorsaleisnotpermitted.

SUBJECTTOCOMPLETION,DATEDOCTOBER17,2016

PRELIMINARYPROSPECTUS

19,333,333Shares

AcushnetHoldingsCorp.CommonStock

ThisisaninitialpublicofferingofsharesofcommonstockofAcushnetHoldingsCorp.Thesellingshareholdersaresellingallofthe19,333,333sharesofcommonstocktobesoldinthisoffering.Wewillnotsellanysharesinthisofferingandwillnotreceiveanyproceedsfromthesaleofsharesbythesellingshareholders.

Priortothisoffering,therehasbeennopublicmarketforourcommonstock.OurcommonstockhasbeenapprovedforlistingonTheNewYorkStockExchange,ortheNYSE,underthesymbol"GOLF."Theestimatedinitialpublicofferingpriceisbetween$21.00and$24.00pershare.

UpontheclosingofthisofferingandaftergivingeffecttotheShareholderTransaction(asdefinedunder"ProspectusSummary—TheShareholderTransaction"),MagnusHoldingsCo.,Ltd.,awholly-ownedsubsidiaryofFilaKoreaCo.,Ltd.,orFilaKorea,willcontrolamajorityofthevotingpowerofalloutstandingsharesofourcommonstock.Asaresult,wewillqualifyasa"controlledcompany"withinthemeaningofthecorporategovernancestandardsoftheNYSE.

Investinginourcommonstockinvolvesrisks.See"RiskFactors"beginningonpage31.

NeithertheSecuritiesandExchangeCommissionnoranyotherregulatorybodyhasapprovedordisapprovedofthesesecuritiesorpassedupontheaccuracyoradequacyofthisprospectus.Anyrepresentationtothecontraryisacriminaloffense.

Thesellingshareholdershavegrantedtheunderwritersanoptionforaperiodof30daysfollowingthedateofthisprospectustopurchaseuptoanadditional2,899,999sharesofcommonstocksolelytocoverover-allotments.

Theunderwritersexpecttodeliverthesharestopurchaserson,2016.

Prospectusdated,2016.

PerShare Total Initialpublicofferingprice $ $ Underwritingdiscount(1) $ $ Proceeds,beforeexpenses,tothesellingshareholders $ $

(1) Wereferyouto"Underwriting"beginningonpage247foradditionalinformationregardingunderwritingcompensation.

J.P.Morgan MorganStanleyNomura UBSInvestmentBank

CreditSuisse DaiwaCapitalMarkets DeutscheBankSecurities Jefferies WellsFargoSecurities

D.A.Davidson&Co. KeyBancCapitalMarkets RaymondJames SunTrustRobinsonHumphrey

TableofContents

TABLEOFCONTENTS

Inthisprospectus,theterms"Acushnet,""we,""us,""our"andthe"Company"refertoAcushnetHoldingsCorp.anditsconsolidatedsubsidiaries.

Youshouldrelyonlyontheinformationcontainedinthisprospectusorinanyfreewritingprospectuswemayauthorizetobedeliveredormadeavailabletoyou.Neitherwe,thesellingshareholdersnortheunderwritershaveauthorizedanyonetoprovideyouwithdifferentinformation.Theinformationinthisprospectusisaccurateonlyasofthedateofthisprospectus,regardlessofthetimeofdeliveryofthisprospectusoranyfreewritingprospectus,asthecasemaybe,oranysaleofsharesofourcommonstock.

Page IndustryandMarketData ii

Trademarks,TradeNamesandServiceMarks ii

ProspectusSummary 1

RiskFactors 31

SpecialNoteRegardingForward-LookingStatements 68

UseofProceeds 71

DividendPolicy 72

Capitalization 73

Dilution 77

SelectedConsolidatedFinancialData 80

Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations 90

Business 138

Management 177

ExecutiveCompensation 184

TheShareholderTransaction 219

PrincipalandSellingShareholders 222

CertainRelationshipsandRelatedPartyTransactions 226

DescriptionofIndebtedness 229

DescriptionofCapitalStock 233

SharesEligibleforFutureSale 241

CertainUnitedStatesFederalIncomeandEstateTaxConsequencestoNon-U.S.Holders 244

Underwriting 247

LegalMatters 255

Experts 255

WhereCanYouFindMoreInformation 255

IndextoConsolidatedFinancialStatements F-1

Certainmonetaryamounts,percentagesandotherfiguresincludedinthisprospectushavebeensubjecttoroundingadjustments.Percentageamountsincludedinthisprospectushavenotinallcasesbeencalculatedonthebasisofsuchroundedfigures,butonthebasisofsuchamountspriortorounding.Forthisreason,percentageamountsinthisprospectusmayvaryfromthoseobtainedbyperformingthesamecalculationsusingthefiguresinourconsolidatedfinancialstatements.Certainotheramountsthatappearinthisprospectusmaynotsumduetorounding.

ForinvestorsoutsidetheUnitedStates:Thesellingshareholdersareofferingtosell,andseekingofferstobuy,sharesofourcommonstockonlyinjurisdictionswhereoffersandsalesarepermitted.Neitherwe,thesellingshareholdersnortheunderwritershavedoneanythingthatwouldpermitthisofferingorpossessionordistributionofthisprospectusinanyjurisdictionwhereactionforthatpurposeisrequired,otherthanintheUnitedStates.PersonsoutsidetheUnitedStateswhocomeintopossessionofthisprospectusmustinformthemselvesabout,andobserveanyrestrictionsrelatingto,theofferingofthesharesofcommonstockandthedistributionofthisprospectusoutsidetheUnitedStates.

INDUSTRYANDMARKETDATA

Withinthisprospectus,wereferenceinformationandstatisticsregardingthegolfindustryandthegolfequipment,wearandgearmarkets.Wehaveobtainedcertainofthisinformationandstatisticsfromvariousindependentthird-partysources,includingindependentindustrypublications,reportsbymarketresearchfirmsandotherindependentsources.GolfDatatechLLC,theNationalGolfFoundation,DarrellSurveyCompany,SportsMarketingSurveysInc.andYanoResearchInstituteLtd.aretheprimarysourcesforthird-partymarketdataandindustrystatisticsandforecasts,respectively,includedinthisprospectus.GolfDatatechLLC,theNationalGolfFoundation,DarrellSurveyCompany,SportsMarketingSurveysInc.andYanoResearchInstituteLtd.donotguaranteetheperformanceofanycompanyaboutwhichitcollectsandprovidesdata.NothingintheGolfDatatechLLC,theNationalGolfFoundation,DarrellSurveyCompany,SportsMarketingSurveysInc.andYanoResearchInstituteLtd.datashouldbeconstruedasadvice.Webelievethattheseexternalsourcesandestimatesarereliable,buthavenotindependentlyverifiedthem.Certainofthisinformationandstatisticsarebasedonourgoodfaith,reasonableestimates,whicharederivedfromourreviewofinternalsurveysandindependentsources.Inaddition,projections,assumptionsandestimatesofthefutureperformanceofthegolfindustryandourfutureperformancearenecessarilysubjecttouncertaintyandriskduetoavarietyoffactors,includingthosedescribedin"RiskFactors"and"SpecialNoteRegardingForward-LookingStatements".Theseandotherfactorscouldcauseresultstodiffermateriallyfromthoseexpressedintheestimatesmadebytheindependentpartiesandbyus.

TRADEMARKS,TRADENAMESANDSERVICEMARKS

Thisprospectusincludestrademarks,tradenamesandservicemarksthatweeitherownorlicense,suchas"Titleist,""FootJoy,""ProV1,""ProV1x,""FJ,""Pinnacle,""ScottyCameron,"and"VokeyDesign"whichareprotectedunderapplicableintellectualpropertylaws.Solelyforconvenience,trademarks,tradenamesandservicemarksreferredtointhisprospectusmayappearwithoutthe®,TMorSMsymbols,butsuchreferencesarenotintendedtoindicate,inanyway,thatwewillnotassert,tothefullestextentunderapplicablelaw,ourrightsortherightoftheapplicablelicensortothesetrademarks,tradenamesandservicemarks.Thisprospectusmayalsocontaintrademarks,tradenamesandservicemarksofotherparties,andwedonotintendouruseordisplayofotherparties'trademarks,tradenamesorservicemarkstoimply,andsuchuseordisplayshouldnotbeconstruedtoimply,arelationshipwith,orendorsementorsponsorshipofusby,theseotherparties.

TableofContents

PROSPECTUSSUMMARY

This summary highlights selected information contained elsewhere in this prospectus. This summary does not contain all the information that youshould consider before deciding to invest in our common stock. You should read the entire prospectus carefully, including "Risk Factors", "Management'sDiscussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes included elsewherein this prospectus, before making an investment decision.

Overview

Wearethegloballeaderinthedesign,development,manufactureanddistributionofperformance-drivengolfproducts,whicharewidelyrecognizedfortheirqualityexcellence.Drivenbyourfocusondedicatedanddiscerninggolfersandthegolfshopsthatservethem,webelievewearethemostauthenticandenduringcompanyinthegolfindustry.Ourmission—tobetheperformanceandqualityleaderineverygolfproductcategoryinwhichwecompete—hasremainedconsistentsinceweenteredthegolfballbusinessin1932.Today,wearethestewardoftwoofthemostreveredbrandsingolf—Titleist,oneofgolf'sleadingperformanceequipmentbrands,andFootJoy,oneofgolf'sleadingperformancewearbrands.Titleisthasbeenthe#1ballinprofessionalgolffor68yearsandFootJoyhasbeenthe#1shoeonthePGATourforoversixdecades.

Ourtargetmarketisdedicatedgolfers,whoarethecornerstoneoftheworldwidegolfindustry.Thesededicatedgolfersareavidandskill-biased,prioritizeperformanceandcommitthetime,effortandmoneytoimprovetheirgame.Webelieveourfocusoninnovationandprocessexcellenceyieldsgolfproductsthatrepresentsuperiorperformanceandconsistentproductquality,whicharethekeyattributessoughtafterbydedicatedgolfers.Manyofthegame'sprofessionalplayers,whorepresentthemostdedicatedgolfers,preferourproductstherebyvalidatingourperformanceandqualitypromise,whiledrivingbrandawareness.Weleverageapyramidofinfluenceproductandpromotionstrategy,wherebyourproductsarethemostplayedbythebestplayers,creatingaspirationalappealforabroadrangeofgolferswhowanttoemulatetheperformanceofthegame'sbestplayers.

Dedicatedgolfersviewpremiumgolfshops,suchason-coursegolfshopsandgolfspecialtyretailers,aspreferredretailchannelsforgolfproductsofsuperiorperformanceandproductquality.Asaresult,wehavecommittedtobeingoneofthepreferredandtrustedpartnerstopremiumgolfshopsworldwide.Thiscommitmentprovidesusaretailenvironmentwhereourproductperformanceandqualityadvantagecanmosteffectivelybecommunicatedtodedicatedgolfers.Inaddition,wealsoserviceotherqualifiedretailersthatsellgolfproductstoconsumersworldwide.

Ourvisionistoconsistentlyberegardedbyindustryparticipants,fromdedicatedgolferstothegolfshopsthatservethem,asthebestgolfcompanyintheworld.Wehaveestablishedleadershippositionsacrossallmajorgolfequipmentandgolfwearcategoriesunderourgloballyrecognizedbrands.

• #1ballingolf

• Golf'sSymbolofExcellence

• Aleadingglobalgolfequipmentbrand

• #1shoeingolf

• #1gloveingolf

• Aleadingglobalgolfwearbrand

• #1wedgeonthePGATour

• AleadingputteronthePGATour

TableofContents

FortheyearendedDecember31,2015andthesixmonthsendedJune30,2016,werecordednetsalesof$1,503.0millionand$903.0million,netincome(loss)attributabletoAcushnetHoldingsCorp.of$(1.0)millionand$52.1millionandAdjustedEBITDAof$214.7millionand$164.4million,respectively.See"—SummaryConsolidatedFinancialData"forareconciliationofAdjustedEBITDAtonetincome(loss)attributabletoAcushnetHoldingsCorp.,themostdirectlycomparablefinancialmeasureundergenerallyacceptedaccountingprinciplesintheUnitedStates,orGAAP.

OurHistoryandEvolution

FoundedinAcushnet,MassachusettsbyPhil"Skipper"Youngin1910andincorporatedastheAcushnetProcessCompany,ourgolfbusinesswasestablishedin1932.Theobjectivefromtheverybeginningwastoproduceagolfballthatwouldsetthestandardinperformance,qualityandconsistency,andbecomethepreferredchoiceofdedicatedgolfersandthepreferredtradepartnerswhowouldservethem.Thecorevaluesofservingthegame'sdedicatedgolferwithasuperiorproduct,intermsofbothperformanceandquality,andhavingthatsuperiorproductvalidatedbythegame'smostdedicatedgolfersandpremiumgolfretailers,haveenduredforthepasteightdecades.

OurCoreFocus

Dedicated Golfers

Ourtargetmarketisdedicatedgolfers,whoareavidandskill-biased,prioritizeperformanceandcommitthetime,effortandmoneytoimprovetheirgame.Webelievethatdedicatedgolfersarethemostconsistentpurchasersofgolfproductsandestimatethatwhiletheyrepresentedonlyapproximately15%ofallUnitedStatesgolfers,theyaccountedformorethan40%oftotalroundsplayedandapproximately70%ofallgolfequipmentandgearspendingintheUnitedStatesduring2014.WealsobelievededicatedgolfersaccountforanoutsizeshareofgolfequipmentandgearspendingoutsidetheUnitedStatesandpurchaseasignificantportionofgolfwearproductsworldwide.

Product Platform

Leveragingthesuccessofourgolfballandgolfshoebusinesses,whilemaintainingthecorevaluesoftheTitleistandFootJoybrands,wehavestrategicallyenteredintoproductcategoriessuchasgolfclubs,wedges,putters,golfgloves,golfgearandgolfwearwithanobjectiveofbeingtheperformanceandqualityleader.

Sincethededicatedgolferviewseachperformanceproductcategoryonitsownmerits,wehaveapproachedeachcategoryonitsowntermsbycommittingthenecessaryresourcestobecometheperformanceandqualityleaderineachproductcategorywhereweparticipate.Asaresult,wehavebuiltanindustryleadingplatformacrossallperformanceproductcategories,drivingamarket-differentiatingmixofconsumableproducts,whichweconsidertobegolfballsandgolfgloves,whichcollectivelyrepresented43%ofournetsalesin2015,andmoredurableproducts,whichweconsidertobegolfclubs,golfshoes,golfapparelandgolfgear,whichcollectivelyrepresented57%ofournetsalesin2015.

Weoperateunderthefollowingfourreportablesegments.

Titleist Golf Balls (36% of 2015 net sales)

Titleististhe#1ballingolf.TheTitleistgolfballwasfoundedwithapurposeofdesigningandmanufacturingaperformanceoriented,highqualitygolfballthatwassuperiortoallotherproductsavailableinthemarket.Webelievethegolfballisthemostimportantpieceofequipmentinthegame,asitistheonlypieceofequipmentusedbyeveryplayerforeveryshot.Thegolfballisalsothemostimportantcategoryforusasitgeneratesthelargestportionofoursalesandprofits.Sinceits

TableofContents

introductionin2000,theTitleistProV1hasbeenthebest-sellinggolfballgloballyandcontinuestosetthebarintermsofproductdesign,qualityandperformance.Wealsodesign,manufactureandsellothergolfballsundertheTitleistbrand,suchasNXTTour,VelocityandDTTruSoft,aswellasunderthePinnaclebrand.Wehavecontinuallyimprovedourgolfballsthroughinnovationinmaterials,constructionandmanufacturingprocesses,whichhasenabledustobuildthe#1golfballfranchiseintheworld.

Titleist Golf Clubs (26% of 2015 net sales)

Wedesign,assembleandsellgolfclubs(drivers,fairways,hybridsandirons)undertheTitleistbrand,wedgesundertheVokeyDesignbrandandputtersundertheScottyCameronbrand.Themissionofourgolfclubbusinessistodesignanddevelopthebestperforminggolfclubsintheworldfordedicatedgolfers.Webelievededicatedgolfersdonotbuybrandsacrosscategoriesbutseekoutbest-in-classproductsineachcategory.ThisisthereasonwehavepartneredwithdedicatedengineersandcraftsmensuchasBobVokeyandScottyCameron,whounderstandthenuances,subtletiesandimpactmechanicsoftheirrespectivegolfclubcategories.Titleistgolfclubs,VokeyDesignwedgesandScottyCameronputtersarewidelyusedbyprofessionalandcompetitiveamateurplayers,whichvalidatestheproducts'performanceandqualityexcellence.Wearealsocommittedtoaleadingclubfittingandtrialplatformtomaximizededicatedgolfers'performanceexperience.

Titleist Golf Gear (9% of 2015 net sales)

WeofferadiversifiedportfolioofTitleist-brandedperformancegolfgearacrossthegolfbags,headwear,gloves,travelgear,headcoversandothergolfgearcategories.Ourgolfgearisfocusedonsuperiorperformanceandqualityexcellence,whichisthemissionofanyproductbearingtheTitleistbrandname.

FootJoy Golf Wear (28% of 2015 net sales)

Wedesign,manufactureandsellgolfshoesandgloves,andwedesignandsellperformanceouterwear,apparelandsocks,undertheFootJoybrand.Byofferingproductswithpremiummaterials,superiorcomfortandfitandauthenticdesigns,FootJoyhasbecomethe#1shoeand#1gloveingolfandaleaderintheglobalperformancegolfouterwearandtheU.S.golfapparelmarkets.WebelieveFootJoyisseenbygolfersaroundtheworldasanauthenticanddefinitivegolfbrandwithaconsistent,differentiatedfocusonperformanceandquality.

Pyramid of Influence

Thegameofgolfislearnedbyobservationandimitation,andgolfersimprovetheirownperformancebyattemptingtoemulatehighlyskilledgolfers.Golfersareinfluencednotonlybyhowothergolfersswingbutalsobywhattheyswingwithandwhattheyswingat.Thisistheessenceofgolf'spyramidofinfluence,whichisdeeplyingrainedinthemindsetofthededicatedgolfer.Atthetopofthepyramidisthemostdedicatedgolfer,whoattemptstomakealivingplayingthegameprofessionally.Adoptionbymostofthebestgolfers,whoseprofessionalsuccessdependsontheirperformance,validatesthequality,featuresandbenefitsofusingthebestperformingproducts.This,inturn,createsaspirationalappealforgolferswhowanttoemulatetheperformanceofthebestplayers.Byvirtueoftheperformanceandqualityexcellenceofourproducts,webelievewearebest-positionedtoleveragethepyramidofinfluencesincemostofthebestplayerstrustanduseTitleistandFootJoyproducts.Ourprimarymarketingstrategyisforourproductstobethemostplayedbythebestplayers,includingbothprofessionalandamateurgolfers.Thisstrategyhasproventobeenduringandeffectiveinthelong-termandisnotdependentonthetransientsuccessofafeweliteplayersatanygivenpointintime.

TableofContents

Innovation Leadership

Webelieveinnovationiscriticaltodedicatedgolfersastheydependontheabilityofnewandinnovativeproductstodriveimprovedperformance.Webelievewearethedesignandtechnologyleaderinthegolfindustry,andassuchwecurrentlyemployaresearchanddevelopmentteamofover150scientists,chemists,engineersandtechnicians.Wealsointroducenewproductinnovationsatacadencethatbestalignswiththetypicaldedicatedgolfer'sreplacementcyclewithineachproductcategory.Wespent$42.2million,$44.2millionand$46.0millionin2013,2014and2015,respectively,onresearchanddevelopment,orR&D.

Operational Excellence

Therequirementsofthegameleadthededicatedgolfertoseekoutproductsofmaximumperformanceandconsistency.Weownorcontrolthedesign,sourcing,manufacturing,packaginganddistributionofourproducts.Indoingso,weareabletoexercisecontrolovereverystepofthemanufacturingprocessandsupplychainoperations,therebysettingthestandardforqualityandconsistency.Ouroperationalexcellencealsoallowsustocontinuallydevelopinnovativenewproducts,bringthoseproductstomarketmoreefficientlyandensurehighlevelsofqualitycontrol.Wehavedevelopedandrefineddistinctandindependentlymanagedsupplychainsforeachofourproductcategories.Ourmanufacturingfacilitiesinclude:

• threegolfballmanufacturingfacilitiesthatcollectivelyproduceover1millionballsperproductionday;

• sixgolfclubassemblyfacilities;

• ajointventurefacilitytomanufactureourgolfshoes;and

• afacilitytomanufactureourgolfgloves.

Route to Market Leadership

Asoneofthepreferredpartnerstopremiumgolfshops,weensurethattheperformancebenefitsderivedfromusingourproductsareshowcasedandourproductsareproperlymerchandised.Wehaveover350salesrepresentativesdirectlyservicingover31,000accountsin46countriesandweserviceover90countriesintotal,directlyorthroughdistributors.Withanaverageofalmost20yearsofexperience,webelievetheTitleistU.S.salesteamisthelargestandmostexperiencedintheindustry.Similarly,webelieveFootJoyhasbuiltthemostexperienced,highlyqualifiedteamintheU.S.golfwearcategory.Asweseeourretailpartnersasacriticalconnectiontodedicatedgolfers,weplacegreatemphasisonbuildingstrongrelationshipsandtrustwiththem.Wealsoplaceastrongfocusonconsumerengagement,startingwithfittingandtrialinitiativesacrossourballs,clubsandshoescategories.

MarketOverviewandOpportunity

Market Overview

Weestimatethatthesportofgolfgivesrisetoaglobalcommercialopportunityofmorethan$85billionannually,whichcapturesallspendingrelatedtogolf.Thereareover50milliongolfersworldwideplayingover800millionroundsannuallyonover32,000golfcourses.Ouraddressablemarketcomprisedofgolfequipment,golfwearandgolfgearrepresentsapproximately$12billioninretailsalesandapproximately$8billioninwholesalesales.TheUnitedStatesaccountedforover40%ofouraddressablemarket,followedbyJapanandKoreacollectivelyaccountingforover30%ofouraddressablemarket,eachin2014.

TableofContents

AlthoughthenumberofroundsofgolfplayedintheUnitedStatesdeclinedoverallfrom2006untiltheendof2014,thenumberofroundsofgolfplayedintheUnitedStateshasshownimprovementsincethebeginningof2015,accordingtoGolfDatatechLLC.Webelievethatthenumberofroundsofgolfplayedbyourtargetmarketofdedicatedgolferswasrelativelystableduringthisperiodofoveralldeclineinthegolfindustry.

Webelievethegolfindustryismainlydrivenbygolferdemographics,dedicatedgolfersandweatherandeconomicconditions.

Golfer Demographics. Golfisarecreationalactivitythatrequirestimeandmoney.Thegolfindustryhasbeenprincipallydrivenbytheagecohortof30andabove,currently"gen-x"(age30to49)and"babyboomers"(age50to69),whohavethetimeandmoneytoengageinthesport.IntheUnitedStates,thereareapproximately8.7milliongen-xgolfersandapproximately6.6millionbabyboomergolfers,representingapproximately63%oftotalgolfersintheUnitedStates.Householdsheadedbygen-xandbabyboomersalsoclaimanapproximately80%shareofthetotalincomedollarsintheUnitedStates.Sinceasignificantnumberofbabyboomershaveyettoretire,weanticipategrowthinspendingfromthisdemographicasithasbeendemonstratedthatroundsofplayincreasesignificantlyasthoseinthiscohortreachretirement.Onaverage,golfersintheagerangeof18to34play15roundsperyear,whereasthoseintheagerangeof50to64and65andaboveplay29roundsand51roundsperyear,respectively.Whilegolfhashistoricallyconsistedofmostlymaleplayers,womenaccountedforapproximately24%ofgolfersintheUnitedStatesin2015,upfromapproximately20%in2011.Becausenearly40%ofbeginnergolfersintheUnitedStatesin2015werewomen,webelievethatthepercentageofwomengolferswillcontinuetogrow.Beyondthegen-xandbabyboomergeneration,anotherpromisingdevelopmentingolfhasbeenthegenerationalshiftwithmillennialgolfersmakingtheirmarksatbothprofessionalandamateurlevels.Golfersundertheageof30represented44%oftheWorldRankTop50and76%ofRolexWorldRankTop50WomenasofMay31,2016.ThelargestsingleagegroupofbeginnersintheUnitedStatesin2015wasmillennials(age18to29).Further,thenumberofjuniorgolfers(age6to17)intheUnitedStateshasgrownfromapproximately2.5milliongolfersin2010toapproximately3.0milliongolfersin2015.

Dedicated Golfers. Dedicatedgolfersarelargelygen-xandbabyboomerswhohavedemonstratedthepropensitytopayapremiumforproductsthathelpthemperformbetter.Webelievededicatedgolfers,whocompriseourtargetmarket,willcontinuetobeakeydriverfortheglobalgolfindustry.TheNationalGolfFoundationestimatesthattherewere6.4million,6.5millionand6.2million"avid"golfersintheUnitedStatesin2013,2014and2015,respectively,with"avid"golfersdefinedasthosewhoplay25roundsormoreperyear.Weestimatethatapproximately60%oftheseavidgolfersintheUnitedStatesarededicatedgolfers.

Weather Conditions. Weatherconditionsdeterminethenumberofplayabledaysinayearandthusinfluencetheamountoftimepeoplespendongolf.Weatherconditionsinmostpartsoftheworld,includingourprimarygeographicmarkets,generallyrestrictgolffrombeingplayedyear-round,withmanyofouron-coursecustomersclosedduringthecoldweathermonths.Therefore,favorableweatherconditionsgenerallyresultinmoreplayabledaysinagivenyearandthusmoregolfroundsplayed,whichgenerallyresultsinincreaseddemandforallgolfproducts.

Economic Conditions. Thestateoftheeconomyinfluencestheamountofmoneypeoplespendongolf.Golfequipment,includingclubs,ballsandaccessories,isrecreationalinnatureandisthereforeadiscretionarypurchaseforconsumers.Consumersaregenerallymorewillingtomakediscretionarypurchasesofgolfproductswheneconomicconditionsarefavorableandwhenconsumersarefeelingconfidentandprosperous.

TableofContents

Our Opportunity

Wehavedemonstratedsustained,resilientandstablerevenueandAdjustedEBITDAgrowthoverthepastfiveyears,despitechallengesrelatedtodemographic,macroeconomicandweatherrelatedconditions.Ourdifferentiatedfocusonperformanceandqualityexcellence,enduringconnectionswithdedicatedgolfersandfavorableandmarket-differentiatingmixofconsumableanddurableproductshavebeenthekeydriversofourstrongperformance.Webelievethisfocuspositionsustocontinuetogenerateindustry-leadingperformance.

StrongFinancialPerformance

Since2011,wehavedrivenstrongfinancialperformanceacrossourproductportfoliointheaggregateandineachofourreportablesegmentsofTitleistgolfballs,Titleistgolfclubs,TitleistgolfgearandFootJoygolfwear.From2011to2015:

• ournetsalesincreasedfrom$1,336.1million(onanon-GAAPcombinedbasis)to$1,503.0million,representingacompoundannualgrowthrate,orCAGR,of3%,or6%onaconstantcurrencybasis;

• ournetincome(loss)attributabletoAcushnetHoldingsCorp.was$(31.2)millionin2011(onanon-GAAPcombinedbasis),$13.9millionin2012,$19.6millionin2013,$21.6millionin2014and$(1.0)millionin2015;

• ourAdjustedEBITDAincreasedfrom$138.4million(onanon-GAAPcombinedbasis)to$214.7million,representingaCAGRof12%;

• weachieved400basispointsofAdjustedEBITDAmarginexpansion;

• ourAdjustedNetIncomeincreasedfrom$46.7million(onanon-GAAPcombinedbasis)to$86.7million,representingaCAGRof17%;and

• ourcashflowsprovidedbyoperatingactivitiesincreasedfrom$51.1million(onanon-GAAPcombinedbasis)to$91.8million.

TheinformationpresentedabovefortheyearendedDecember31,2011ispresentedonanunauditedcombinedbasisandrepresentsthemathematicaladditionofourpredecessor'sresultsofoperationspriortotheAcquisition(asdescribedbelow)fromJanuary1,2011toJuly29,2011,andourresultsofoperationsfromJuly30,2011toDecember31,2011,orthesuccessorperiod.Thefinancialresultsforthesuccessorperiodincludetheimpactofapplyingpurchaseaccounting.ThepresentationofunauditedcombinedfinancialinformationfortheyearendedDecember31,2011isnotconsistentwithGAAPorwiththeproformarequirementsofArticle11ofRegulationS-X.Wehaveincludedtheunauditedcombinedfinancialinformationasaconveniencesolelyforthepurposeoffacilitatingacomparisonofthecombinedresultswithourotheryearspresented.SuchresultsarenotnecessarilyindicativeofwhattheresultsforthecombinedperiodwouldhavebeenhadtheAcquisitionnotoccurred.See"SelectedConsolidatedFinancialData"for(i)apresentationoftheresultsofoperationsfortheperiodfromJanuary1,2011toJuly29,2011,andtheperiodfromJuly30,2011toDecember31,2011,whichhavebeenauditedandareconsistentwithGAAP,andtheresultsofoperationsfortheyearendedDecember31,2011onanunauditedcombinedbasisand(ii)areconciliationofAdjustedEBITDAandAdjustedNetIncometonetincome(loss)attributabletoAcushnetHoldingsCorp.andthemostdirectlycomparableGAAPfinancialmeasure.See"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—Overview—KeyPerformanceMeasures"foradescriptionofhowwecalculateconstantcurrencyinformation.

TableofContents

(1) TheinformationpresentedfortheyearendedDecember31,2011ispresentedonanunauditedcombinedbasisandrepresentsthemathematicaladditionofourpredecessor'sresultsofoperationspriortotheAcquisitionfromJanuary1,2011toJuly29,2011,andourresultsofoperationsfromJuly30,2011toDecember31,2011.ThispresentationofunauditedcombinedfinancialinformationfortheyearendedDecember31,2011isnotconsistentwithGAAP.

OurCompetitiveStrengths

Steward of Golf's Most Revered Brands. Wehavelongbeenthetrustedstewardoftwoofgolf'smostreveredandrecognizedbrands,andhaveenjoyedthelongestrunningrecordofmarketleadershipinthegolfcategory.Titleisthasbeenthe#1ballinprofessionalgolffor68yearswhileFootJoyhasbeentheleadingbrandonthePGATouringolfshoesforoversixdecadesandgolfglovesforoverthreedecades.Theperformanceandqualityofourbrandsarevalidatedbythewidespreadadoptionofourproductsbytheworld'sbestprofessionalandamateurgolfers,whichgeneratesexceptionalbrandloyaltyamongourcorecustomersanddrivesrepeatpurchases.

Market-Leading Portfolio of Products Designed for Dedicated Golfers. TheTitleistProV1golfballwaslaunchedin2000andinfourmonthsbecamethe#1sellingballonthemarket,apositionitstillholds,andisthe#1golfballplayedateverylevelofcompetitivegolftoday.Weestimatethatweheldnearlyone-halfofthe2015globaltopgradewholesalegolfballmarket,whichweestimatewasapproximately$1.0billion,includingovertwo-thirdsofthepremiumperformancemarketsegment.Itisrarewhenabrand'shighestpricedproductinaparticularcategoryisalsotheindustryvolumeleader.In2015,thenumberofTitleistballsplayedonprofessionaltourswasmorethanfivetimesthenumberofballsofournearestcompetitor.Titleistrecordsevenhigherballcountsatmostamateurchampionshipsthanontheworldwideprofessionaltours,afurthertestamenttotheperformanceandqualityofTitleist,particularlysinceamateursarenotallowedtoreceivecompensationfortheuseorendorsementofanybrand'sequipment.FaithfultothebrandpromiseoftheTitleistball,webelieveourgolfclubsarealsobest-in-classintermsofperformanceandquality.OurVokeyDesignwedgesandScottyCameronputtersarerecognizedworldwideasleadersintheirrespectivecategories.OurVokeyDesignwedgesarethemostwidelyusedonthePGATour.UnderourFootJoybrand,wearethe#1shoeingolf,withtheleadingusageonalloftheworld'smajorprofessionalgolftoursandtwiceasmanystockkeepingunits,orSKUs,asournearestcompetitors.FootJoyglovesalsohavetheleadingmarketshare,enjoythe#1positiononalltheworld'smajorprofessionalgolftours,andofferthelargestselectionofgolfglovesintheindustry.FootJoyisalsoagloballeaderingolfouterwearandhasarapidlygrowingpresenceingolfapparel.

TableofContents

Favorable Consumable / Durable Mix. Wehavedevelopedaproductportfoliowithafavorablemixofconsumablesanddurables,whichwebelievedifferentiatesusfromotherpuregolfequipmentmanufacturers.Consumablepurchasesarelargelydrivenbythenumberofroundsplayed,whiledurablepurchasesaresubjecttotechnologyreplacementcycles.Webelieveourfavorableproductmixislesseconomicallycyclicalandmoreworkingcapitalefficientthanthatofourpeers.Oursalesreflectafavorableandmarket-differentiatingmixofconsumableproducts,whichweconsidertobegolfballsandgolfgloves,whichcollectivelyrepresented43%ofournetsalesin2015,andmoredurableproducts,whichweconsidertobegolfclubs,golfshoes,golfapparelandgolfgear,whichcollectivelyrepresented57%ofournetsalesin2015.

Best-in-Class Design Innovation. Drivenbyourcommitmenttoperpetualinnovation,webelievewearetheinnovationleaderinthegolfindustry.Golf'smostregulatedandtechnically-drivencategoriesaregolfballsandgolfclubs,andthereforerequirestrongintellectualpropertytocreatedifferentiatedproductswithsuperiorperformanceandquality.Weholdthelargestpatentportfoliointhegolfindustry,withcloseto1,200activeU.S.utilitypatentsingolfballs,over300activeU.S.utilitypatentsingolfclubs,wedgesandputtersand284activepatents(includingex-U.S.anddesignpatents)ingolfshoesandgloves.Over90%ofourcurrentproductsincorporatetechnologiesordesignsdevelopedinthelastfiveyears.TheTitleistProV1franchiseisanexampleofourinnovationleadership.Wehavesoldover110milliondozenProV1andProV1xgolfballs,generatingover$4billionofrevenue,sincetheintroductionoftheProV1in2000.

Operational Excellence. Unlikemanyothergolfcompanies,weownorcontrolthedesign,sourcing,manufacturing,packaginganddistributionofourproducts.Ourverticallyintegratedapproachdeliversaconsistentproductqualityandresultsinveryhighcustomersatisfaction.Bycontrollingkeyaspectsofthedesignandmanufacturingprocesses,wearebetterabletoprotectourintellectualpropertyaswellasoffercustomizationcapabilitiesandefficientturntimes.Furthermore,weareabletoprovidecustomfittedproductstoindividualsinashorttimeframeandfacilitateregionalmarketcustomization.

Unparalleled Route to Market Leadership. Thefoundationofourgo-to-marketstrategyistocontinuetobethepreferredpartnerforpremiumgolfshopsworldwideandtoprovidecustomizationandfittingthatoptimizeourcustomers'post-purchaseexperiences.Indoingso,weensurethattheperformancebenefitsderivedfromusingourproductsareshowcasedandourproductsareproperlymerchandised,whiledeepeningourcustomers'connectionswiththeTitleistandFootJoybrands.Webelievetheseinitiatives,inturn,increasesalesandprofitabilityforourretailpartners,leadingtoamutuallybeneficialeconomicrelationship.Therearecurrentlyover3,400premiumgolfshopsthatexclusivelystockordisplayTitleistballs.

Deep Stewardship Culture and Experienced Management Team. Behindourexceptionalproductsandorganizationalinfrastructureliesanauthenticandenduringorganizationalculturevalidatedbythelongevityofourmanagementteam,salesforceandassociates.Ourmanagementteammembers,manyofwhomhavededicatedtheirentirecareerstoourcompany,averageover19yearsofemploymentwithus.Theyaresupportedbyadeepandtalentedteamofassociatesacrossproductcategories,functions,marketsandgeographies,whoserveasstrongbrandandculturalambassadors.Approximately50%ofourU.S.associateshaveovertenyearsofemploymentwithus,highlightingthedepthofourtalentandfutureleaders.Wearethestewardsofourbrands,andwearecommittedtomaintainingthecultureofexcellencethatdefinesusandourproducts.

OurGrowthStrategies

Weplantocontinuetopursueorganicgrowthinitiativesacrossallproductcategories,brands,geographiesandmarketingchannels.

TableofContents

Introduce New Products and Extend Market Share Leadership in Equipment Categories. Weexpecttosustainourstrongperformanceinourcorecategoriesofgolfballsandgolfclubsthroughseveraltargetedstrategies:

• Titleist Golf Balls . Toensuresustainedlong-termmarketleadership,wearecontinuouslyinvestingindesigninnovationandrefiningoursell-inandsell-throughroutetomarketcapabilitiesandeffectivenessinthegolfballproductcategory.Wearecurrentlyfocusedonimprovingoursalesteamtraininginproduct,merchandising,localpromotionandsellingskills,aswellasenhancingtradepartnershipsinthosechannelswherededicatedgolfersshop.Wewillcontinuetogrowourcustomgolfballbusinessbytargetingbothcorporationsandindividuals,therebyincreasingbrandloyaltyandthelikelihoodofrepeatpurchases.

• Titleist Clubs, Wedges and Putters . Weintendtocontinuetolaunchinnovative,performancegolfclubsbyfurtherleveragingTitleistclubs'leadingR&Dplatform.Webelieveconceptandspecialtyproducts,trialandfittinginitiativesandpremiumqualitydigitalcontentwillfurtherdrivecustomerawarenessandmarketsharegainsacrossallpremiumclubcategories.

Increase Penetration in Golf Gear and Wear Categories. WeintendtobuildonthebrandloyaltythatthededicatedgolferhasdevelopedforourTitleistballandclubcategoriesandFootJoyshoeandglovecategoriesinordertoincreaseourpenetrationintheadjacentcategoriesofgolfgearandgolfwear.Weexpecttocontinuetodrivegrowthacrossthesecategoriesbyemployingthefollowinginitiatives:

• Titleist Golf Gear . WearecommittedtoprovidingdedicatedgolferswithgolfgearofperformanceandqualityexcellencethatisfaithfultotheTitleistbrandpromise.Wearemakingsignificantinvestmentsindesignandengineeringresourcesandareleveragingdedicatedplayerresearchmethodologiesandinsightstodriveinnovationinthisproductcategory.WealsoplantoexpandcustomandlimitededitionproductofferingsandlaunchaU.S.eCommercewebsiteforTitleistgolfgearinthesecondhalfof2017.

• FootJoy Women's Apparel Initiative . Wearecurrentlybuildingoutafocused,performance-basedFootJoywomen'sapparellineconsistentwiththebrand'ssuccessfulpositioninginmen'sapparel.Thewomen'sapparelline,whichlaunchedinearly2016,pairssophisticatedperformancefabricsanddesignwithlayeringtechnologypioneeredbyFootJoytocreatemaximumcomfortandprotection.ByleveragingourexistingFootJoysalesforceinanadjacentcategory,webelievewecanofferacompellingandauthenticsolutiontofemalegolfersandcapitalizeonthetrendofcasual,athleticstylingthatisdrivingsuccessinthebroaderwomen'sapparelspace.

• FootJoy eCommerce Launch . WerecentlylaunchedaU.S.eCommercewebsiteofferingover6,000SKUsacrossallFootJoycategories.TheeCommerceinitiativeisexpectedtoyieldincrementalsalesandprofitability,enricheddataonpreferencesandtrendsaswellasfosteradeeperandmorerealtimeconnectionwiththededicatedgolfer.

Strategically Pursue Global Growth. TheTitleistandFootJoybrandsarebothglobalbrandsthatarewellpositionedwheregolf'sgrowthisanticipated.Whilewebelievethatamajorityofthenear-termgrowthwillbedrivenbythedevelopedeconomies,emergingeconomies,suchasthemarketsinSoutheastAsia,representlonger-termgrowthopportunities.Tomeetfuturedemand,weareensuringthatlocalcapabilitiesandexpertiseinsales,customerservice,merchandising,onlinepresence,golfeducationandfittinginitiativesareinplacetosupportouroperations.

TableofContents

TheRefinancing

OnApril27,2016,AcushnetCompany,ourdirectwholly-ownedoperatingsubsidiary,enteredintoacreditagreement,orthenewcreditagreement,whichprovidesfor(i)anew$275.0millionmulti-currencyrevolvingcreditfacility,orournewrevolvingcreditfacility,includinga$20.0millionletterofcreditsub-facility,aC$25.0millionsub-facilityforAcushnetCanadaInc.anda£20.0millionsub-facilityforAcushnetEuropeLimitedandanalternativecurrencysublimitof$100.0millionforborrowingsinCanadiandollars,euros,poundssterlingandJapaneseyen,(ii)anew$375.0milliontermloanAfacility,orournewtermloanAfacility,and(iii)anew$100.0milliondelayeddrawtermloanAfacility,orournewdelayeddrawtermloanAfacility,eachofwhichmaturesonJuly28,2021.

ThenewcreditagreementwassignedandbecameeffectiveonApril27,2016andtheinitialfundingunderthenewcreditagreementoccurredonJuly28,2016.OnJuly28,2016,weusedtheproceedsofthenew$375.0milliontermloanAfacility,borrowingsofC$4.0million(equivalenttoapproximately$3.0million)underthenewrevolvingcreditfacilityandcashonhandof$23.6millionto(i)repayallamountsoutstandingunder,andterminate,oursecuredfloatingratenotesandcertainofourformerworkingcreditfacilities,(ii)terminateourformerseniorrevolvingcreditfacilityand(iii)payfeesandexpensesrelatedtotheforegoing.UntilJuly28,2017,thecommitmentsunderthenewdelayeddrawtermloanAfacilitywillbeavailabletomakepaymentsinconnectionwiththefinalpayoutoftheoutstandingEquityAppreciationRights,orEARs,undertheAcushnetCompanyEquityAppreciationRightsPlan,asamended,ortheEARPlan.Werefertotheenteringintoofthenewcreditagreementandtheuseof$375.0millionofborrowingsunderthenewtermloanAfacility,borrowingsofC$4.0million(equivalenttoapproximately$3.0million)underthenewrevolvingcreditfacilityandcashonhandof$23.6millionto(i)repayallamountsoutstandingunder,andterminate,oursecuredfloatingratenotesandcertainofourformerworkingcreditfacilities,(ii)terminateourformerseniorrevolvingcreditfacilityand(iii)payfeesandexpensesrelatedtotheforegoing,astheRefinancing.

Inaddition,onJune30,2016,weusedcashonhandandborrowingsunderourformerseniorrevolvingcreditfacilitytorepayallamountsoutstandingunder,andterminate,ourformerseniortermloanfacility.

Werefertoourformerseniortermloanfacility,ourformerseniorrevolvingcreditfacilityandcertainofourformerworkingcreditfacilitiesthatwererepaidandterminatedinconnectionwiththeforegoingasourformercreditfacilities.

Formoreinformationonthetermsofthenewcreditagreement,see"DescriptionofIndebtedness."

TheShareholderTransaction

ImmediatelypriortotheclosingoftheShareholderTransaction(asdefinedbelow)andaftergivingeffectto(i)theconversionofallofouroutstanding7.5%convertiblenotesdue2021,orourConvertibleNotes,(ii)theconversionofallofouroutstandingSeriesA7.5%redeemableconvertiblepreferredstock,orourConvertiblePreferredStock,and(iii)theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrants,whichoccurredinJuly2016,FilaKoreawillownapproximately33.1%ofouroutstandingcommonstockthroughitswholly-ownedsubsidiary,MagnusHoldingsCo.Ltd.,anentityorganizedunderKoreanlaw,orMagnus,affiliatesofMiraeAssetGlobalInvestments,ortheMiraeFunds,willownapproximately50.2%ofouroutstandingcommonstock,anaffiliateofWoori-BlackstoneKoreaOpportunityPrivateEquityFund1,ortheWoori-BlackstoneFund,willownapproximately12.0%ofouroutstandingcommonstock,andanaffiliateofNeopluxCo.Ltd.,ortheNeopluxFund,willownapproximately4.1%ofouroutstandingcommonstock.WerefertotheMiraeFunds,theWoori-BlackstoneFundandtheNeopluxFundcollectivelyastheFinancialInvestors.The

TableofContents

FinancialInvestorsarethesellingshareholdersinthisofferingandaresellingtheirsharesonaproratabasis.

MagnushasagreedtopurchasefromtheFinancialInvestorsonaproratabasis14,818,720sharesofourcommonstock,whichwillbeapproximately20.0%ofouroutstandingcommonstock,inaseparatetransaction.ThepricepershareofourcommonstocktobepaidbyMagnustotheFinancialInvestorswillbeequalto1.05timestheinitialpublicofferingpricesetforthonthecoverpageofthisprospectus.Wewillnotreceiveanyproceedswithrespecttothesharesofourcommonstockthataresoldinthistransaction.Magnus'purchaseofthesesharesfromtheFinancialInvestorsisexpectedtocloseonthebusinessdayfollowingthedateofpricingofthisoffering.WerefertothepurchaseofsharesbyMagnusfromtheFinancialInvestorsastheShareholderTransaction.

UpontheclosingofthisofferingandaftergivingeffecttotheShareholderTransaction:

• Magnuswillownapproximately53.1%ofouroutstandingcommonstockandthesharesofourcommonstockownedbyMagnuswillbeitsonlyassets;

• theFinancialInvestorswillcollectivelyownapproximately20.3%ofouroutstandingcommonstock(orapproximately16.4%ofouroutstandingcommonstockiftheunderwriters'optiontopurchaseadditionalsharesfromthesellingshareholdersisexercisedinfull);and

• thenewinvestorspurchasingsharesofourcommonstockinthisofferingwillownapproximately26.1%ofouroutstandingcommonstock(orapproximately30.0%ofouroutstandingcommonstockiftheunderwriters'optiontopurchaseadditionalsharesfromthesellingshareholdersisexercisedinfull).

AsaresultoftheShareholderTransaction,Magnus,whichiswholly-ownedbyFilaKorea,willcontrolamajorityofthevotingpowerofalloutstandingsharesofourcommonstockandwewillqualifyasa"controlledcompany"withinthemeaningofthecorporategovernancestandardsoftheNYSE.

Magnuswillfinanceitspurchaseof14,818,720sharesofourcommonstockfromtheFinancialInvestorsintheShareholderTransactionbyenteringintoatermloanagreement,ortheMagnusTermLoan,withcertainKoreanfinancialinstitutions,ortheMagnusLenders,toborrowKoreanWon395billion(equivalenttoapproximately$360.3million,usingtheexchangerateof$1.00=KoreanWon1,096.30asofSeptember30,2016)(assumingapurchasepriceof$23.625pershare,basedonaninitialpublicofferingpriceof$22.50pershare,whichisthemidpointoftheestimatedinitialpublicofferingpricerangesetforthonthecoverpageofthisprospectus,andassuminganadditional$3.1millionthatmaybenecessaryforMagnustomakethefirstinterestpaymentontheMagnusTermLoan).TheMagnusTermLoanwillbearinterestatarateof3.5%perannum,payablequarterlyinarrearsincash,andwillmatureon,2017(thefirstanniversaryofthedayfollowingthepricingofthisoffering).TheMagnusTermLoanwillbesecuredbyapledgeonallofourcommonstockownedbyMagnus,exceptfor5%ofouroutstandingcommonstockownedbyMagnusthatissubjecttoanegativepledgeunderFilaKorea'screditfacility,whichwillequal48.1%ofouroutstandingcommonstock.A$1.00increaseordecreaseintheassumedinitialpublicofferingpriceof$22.50persharewouldincreaseordecrease,asapplicable,theaggregateprincipalamountoftheMagnusTermLoanby$14.8million.

TheclosingoftheShareholderTransactionisconditionedonthepricingofthisofferingandtheclosingofthisofferingofourcommonstockisconditionedontheclosingoftheShareholderTransaction.

TableofContents

See"RiskFactors—RisksRelatedtotheShareholderTransactionandtheMagnusTermLoan,""Management—BoardLeadershipStructureandtheBoard'sRoleinRiskOversight—ControlledCompany,""TheShareholderTransaction"and"PrincipalandSellingShareholders."

OrganizationalStructure

Thefollowingdiagramillustratesourcorporatestructureandownershipofourcommonstockaftergivingeffectto:

• theconversionofallofouroutstandingConvertibleNotes;

• theconversionofallofouroutstandingConvertiblePreferredStock;

• theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrants,whichoccurredinJuly2016;

• theShareholderTransaction;and

• thisoffering.

(1) FilaKoreahasgrantedasecurityinterestinallofthecommonstockofMagnustothelendersunderitsexistingcreditfacility.Aftergivingeffecttotheclosingofthisoffering,thelendersunderFilaKorea'sexistingcreditfacilityareexpectedtoreleasetheirsecurityinterestsinapproximately85.6%ofthecommonstockofMagnusandretainasecurityinterestinapproximately14.4%ofthecommonstockofMagnus.ThesharesofourcommonstockownedbyMagnusareMagnus'onlyassets.

(2) InconnectionwiththeMagnusTermLoan,MagnuswillgrantasecurityinterestinallofourcommonstockownedbyMagnustotheMagnusLenders,exceptfor5%ofouroutstanding

TableofContents

commonstockownedbyMagnusthatissubjecttoanegativepledgeunderFilaKorea'sexistingcreditfacility,whichwillequal48.1%ofouroutstandingcommonstock.ThesharesofourcommonstockownedbyMagnusareMagnus'onlyassets.

RecentDevelopments

WehavepresentedpreliminaryestimatedfinancialrangesofcertainofourfinancialresultsbelowforthethreemonthsendedSeptember30,2016,basedoncurrentlyavailableinformation.Wehaveprovidedranges,ratherthanspecificamounts,forthefinancialresultsbelow,primarilybecauseourfinancialclosingproceduresforthethreemonthsendedSeptember30,2016,arenotyetcomplete.Asaresult,ouractualresultsmayvarymateriallyfromtheestimatedpreliminaryresultsincludedhereinandwillnotbepubliclyavailableuntilaftertheclosingofthisoffering.Accordingly,youshouldnotplaceunduerelianceontheseestimates.Thepreliminaryfinancialdataincludedinthisprospectushasbeenpreparedby,andistheresponsibilityof,management.PricewaterhouseCoopersLLPhasnotaudited,reviewed,compiled,orperformedanyprocedureswithrespecttothepreliminaryestimatedfinancialdatabelow.Accordingly,PricewaterhouseCoopersLLPdoesnotexpressanopinionoranyotherformofassurancewithrespectthereto.TheseestimatesshouldnotbeviewedasasubstituteforunauditedinterimfinancialstatementspreparedinaccordancewithGAAP.Inaddition,theseestimatesforthethreemonthsendedSeptember30,2016arenotnecessarilyindicativeoftheresultstobeachievedfortheremainderof2016oranyfutureperiod.See"RiskFactors"and"SpecialNoteRegardingForward-LookingStatements."

ForthethreemonthsendedSeptember30,2016,weestimatethatournetsaleswillrangefrom$329.9millionto$332.4million,anincreaseof$11.2million,or3.5%,atthemid-pointoftheestimatednetsalesrangewhencomparedwithnetsalesof$319.9millionforthethreemonthsendedSeptember30,2015.Onaconstantcurrencybasis,weestimatethatournetsaleswillrangefrom$324.4millionto$326.9million,anincreaseof$5.7million,or1.8%,atthemid-pointoftheestimatednetsalesrangewhencomparedwithnetsalesof$319.9millionforthethreemonthsendedSeptember30,2015.WeestimatethattheincreaseinnetsalesonaconstantcurrencybasiswasduetoincreasesinnetsalesofFootJoygolfweardrivenbysalesvolumegrowthinapparelandhigheraveragesellingpricesinourgolfshoescategory,anincreaseinnetsalesofTitleistgolfclubsdrivenbysalesvolumegrowthinironsaswellashigheraveragesellingpricesofironsandwedges,andanincreaseinnetsalesduetosalesvolumegrowthofproductsthataresoldinregionsoutsidetheUnitedStatesandthatarenotallocatedtooneofourfourreportablesegments.TheseestimatednetsalesincreaseswereoffsetpartiallybyadecreaseinnetsalesofTitleistgolfballs.

ForthethreemonthsendedSeptember30,2016,weestimatethatournetsalesintheUnitedStateswererelativelyflatwhencomparedtothethreemonthsendedSeptember30,2015asnetsalesincreasesinTitleistgolfclubsandFootJoygolfwearwereoffsetbyasalesvolumedecreaseinTitleistgolfballs.

ForthethreemonthsendedSeptember30,2016,weestimatethatournetsalesinregionsoutsideoftheUnitedStateswerehigheronbothareportedandconstantcurrencybasiswhencomparedtothethreemonthsendedSeptember30,2015.Onaconstantcurrencybasis,weestimatenetsalesinsuchregionswerehigherduetoanetsalesincreaseinFootJoygolfweardrivenbysalesvolumegrowthinapparelandanincreaseinnetsalesduetosalesvolumegrowthofproductsthataresoldinregionsoutsidetheUnitedStatesandthatarenotallocatedtooneofourfourreportablesegments.

ForthethreemonthsendedSeptember30,2016,weestimatethatournetincome(loss)attributabletoAcushnetHoldingsCorp.willrangefrom$(6.8)millionto$(6.2)million,anincreaseof$7.5million,or53.7%,atthemid-pointoftheestimatedrangewhencomparedwithnetincome(loss)attributabletoAcushnetHoldingsCorp.of$(14.0)millionforthethreemonthsendedSeptember30,2015.Thischangeinnetincome(loss)attributabletoAcushnetHoldingsCorp.wasduetohigher

TableofContents

incomefromoperations,anincreaseinotherincomeduetoanindemnificationgainrecordedin2016relatedtotheadjustmentofindemnifiedtaxobligationsfortaxperiodspriortotheAcquisitionandlowerinterestexpense.

ForthethreemonthsendedSeptember30,2016,weestimatethatourAdjustedEBITDAwillrangefrom$25.9millionto$27.0million,anincreaseof$1.7million,or6.8%,atthemid-pointoftheestimatedrangewhencomparedwithAdjustedEBITDAof$24.8millionforthethreemonthsendedSeptember30,2015.TheincreaseinAdjustedEBITDAwasprimarilyduetohigherincomefromoperationsdrivenbythenetsalesincreasediscussedabove.

Thefollowingtableprovidesareconciliationofnetincome(loss)attributabletoAcushnetHoldingsCorp.toAdjustedEBITDAfortherangespresentedforthethreemonthsendedSeptember30,2016andforthethreemonthsendedSeptember30,2015.See"—SummaryConsolidatedFinancialData"foranexplanationofhowwedefineAdjustedEBITDAandwhywebelievethepresentationofAdjustedEBITDAinformationisusefultoinvestors.

Threemonthsended

September30, 2016 2016 2015 (dollarsinthousands) Low High Actual Netincome(loss)attributabletoAcushnetHoldingsCorp. $ (6,782) $ (6,165) $ (13,986)Incometaxexpense(benefit) (43) 440 (4,273)Interestexpense,net 15,672 15,672 17,563Depreciationandamortization 10,003 10,003 10,297EARPlan(a) (940) (940) 10,423Share-basedcompensation(b) 6,159 6,159 3,875Restructuringcharges(c) 174 174 —Transactionfees(d) 2,947 2,947 127Beamindemnificationexpense(income)(e) (2,156) (2,156) 272(Gains)lossesonthefairvalueofourcommonstockwarrants(f) — — (243)Othernon-cash(gains)losses,net (236) (236) 34Netincomeattributabletononcontrollinginterests(g) 1,124 1,124 689

AdjustedEBITDA $ 25,922 $ 27,022 $ 24,778

(a) ReflectsexpensesrelatedtotheanticipatedfullvestingofEARsgrantedunderourEARPlanandtheremeasurementoftheliabilityateachreportingperiodbasedonthethen-currentprojectionofourcommonstockequivalent,orCSE,value(asdefinedintheEARPlan).See"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—CriticalAccountingPoliciesandEstimates—Share-BasedCompensation."Wemayincuradditionalmaterialexpensesin2016inconnectionwiththeoutstandingEARs.AlloutstandingEARsundertheEARPlanvestedasofDecember31,2015.TheEARPlanexpiresonDecember31,2016andamountsearnedundertheEARPlanmustbepaidwithintwoandahalfmonthsaftertheexpirationdate.

(b) ForthethreemonthsendedSeptember30,2015,reflectscompensationexpenseassociatedwiththeexerciseofsubstitutestockoptionsbyanexecutive,whichweregrantedinconnectionwiththeAcquisition.Allsuchstockoptionshavebeenexercised.ForthethreemonthsendedSeptember30,2016,reflectscompensationexpenseswithrespecttoequity-basedgrantsunderthe2015IncentivePlan(asdefinedherein)whichweremadeinthesecondquarterof2016.

(c) ReflectsrestructuringchargesincurredinconnectionwiththereorganizationofcertainofouroperationsinthethreemonthsendedSeptember30,2016.

TableofContents

AsofSeptember30,2016,onaproformabasisaftergivingeffecttotheconversionofallofourConvertibleNotespriortotheclosingofthisoffering,weestimateourindebtednesswillrangefrom$387.9millionto$393.1million.Inaddition,asofSeptember30,2016,weestimateouravailabilityunderournewrevolvingcreditfacilitywillrangefrom$255.5millionto$261.5million,aftergivingeffecttoapproximately$2.9millionofoutstandinglettersofcreditandwewouldhavehadapproximately$73.6millionavailableunderourlocalcreditfacilities.

AsofSeptember30,2016,onaproformabasisaftergivingeffecttothepaymentincashofaccruedandunpaidinterestonourConvertibleNotes,weestimateourunrestrictedcashwillrangefrom$78.1millionto$84.1million(whichincludesapproximately$12.8millionattributabletoourFootJoygolfshoejointventureanddoesnotreflectthepaymentofanyaccruedandunpaiddividendsonourConvertiblePreferredStock).

RiskFactors

Investinginourcommonstockinvolvesahighdegreeofrisk.Youshouldcarefullyconsidertherisksdescribedin"RiskFactors"beforemakingadecisiontoinvestinourcommonstock.Ifanyoftheserisksactuallyoccurs,ourbusiness,financialconditionandresultsofoperationscouldbemateriallyadverselyaffected.Insuchcase,thetradingpriceofourcommonstockwouldlikelydeclineandyoumaylosepartorallofyourinvestment.Belowisasummaryofsomeoftheprincipalrisksweface:

• areductioninthenumberofroundsofgolfplayedorinthenumberofgolfparticipants;

• unfavorableweatherconditions,macroeconomicordemographicfactors;

• adisruptionintheoperationsofourmanufacturing,assemblyordistributionfacilitiesorintheoperationsofoursuppliersoranincreaseinthecostofrawmaterialsandcomponents;

• manyofourrawmaterialsorcomponentsofourproductsareprovidedbyasoleorlimitednumberofthird-partysuppliersandmanufacturers;

• currencytransactionandcurrencytranslationrisksandotherrisksassociatedwithdoingbusinessglobally;

• relianceontechnicalinnovationandtheabilitytomanagethefrequentintroductionofnewproducts;

• abilitytoenforceandprotectourintellectualpropertyrightsandlawsuitsrelatedtointellectualpropertymatters;

• intensecompetitionandaninabilitytomaintainourcompetitiveadvantage;

(d) ReflectslegalfeesincurredinthethreemonthsendedSeptember30,2015and2016relatingtoadisputearisingfromtheindemnificationobligationsowedtousbyBeaminconnectionwiththeAcquisitionaswellascertainfeesandexpensesweincurredinthethreemonthsendedSeptember30,2016inconnectionwiththisoffering.

(e) Reflectsthenon-cashchargesrelatedtotheindemnificationobligationsowedtousbyBeamthatareincludedwhencalculatingnetincome(loss)attributabletoAcushnetHoldingsCorp.

(f) FilaKoreaexercisedallofouroutstandingcommonstockwarrantsinJuly2016andweusedtheproceedsfromsuchexercisetoredeemallofouroutstanding7.5%bondsdue2021.

(g) ReflectsthenetincomeattributabletotheinterestthatwedonotowninourFootJoygolfshoejointventure.

TableofContents

• dependenceonretailersanddistributorsandabilitytomaintainandfurtherdevelopoursaleschannels;

• seasonalfluctuationsandcyclicalityduetonewproductintroductions;

• relianceoncomplexinformationandtechnology-basedsystemsandcybersecurityrisks;

• relianceonourcurrentseniormanagementteamandotherkeyemployees;

• abilitytomaintaineffectiveinternalcontrolsoverfinancialreporting;

• theabilityofourcontrollingshareholdertocontrolsignificantcorporateactivitiesafterthecompletionofthisofferingandtheShareholderTransaction,andourcontrollingshareholder'sinterestsmayconflictwithyours;

• asale,foreclosure,liquidationorothertransferofthesharesofourcommonstockownedbyMagnusasaresultoftheMagnusTermLoanorotherwise;and

• abilitytopaydividendsonourcommonstock.

CorporateInformation

AcushnetHoldingsCorp.wasincorporatedinDelawareonMay9,2011asAlexandriaHoldingsCorp.,anentityownedbyFilaKorea,aleadingsportandleisureapparelandfootwearcompanywhichisapubliccompanylistedontheKoreaExchange,andaconsortiumofinvestorsledbyMiraeAssetGlobalInvestments,aglobalinvestmentmanagementfirm.AcushnetHoldingsCorp.acquiredAcushnetCompany,ouroperatingsubsidiary,fromBeamSuntory,Inc.(atthetimeknownasFortuneBrands,Inc.andwhichwerefertoasBeam)onJuly29,2011,whichwerefertoastheAcquisition.

Ourprincipalexecutiveofficesarelocatedat333BridgeStreet,Fairhaven,Massachusetts02719.Ourtelephonenumberis(800)225-8500.Ourprincipalwebsiteaddressiswww.acushnetcompany.com.Theinformationon,oraccessiblethrough,ourwebsiteandtheotherwebsitesreferencedhereinisdeemednottobeincorporatedbyreferenceinthisprospectusortobeapartofthisprospectus.

TableofContents

TheOffering

Issuer AcushnetHoldingsCorp.,aDelawarecorporation.

Commonstockofferedbythesellingshareholders

19,333,333shares,tobesoldbytheFinancialInvestorsonaproratabasis.

Optiontopurchaseadditionalsharesofcommonstockfromthesellingshareholders

Thesellingshareholdershavegrantedtheunderwritersanoptionforaperiodof30daysfollowingthedateofthisprospectustopurchaseuptoanadditional2,899,999sharesofcommonstockattheinitialpublicofferingpricelesstheunderwritingdiscountsolelytocoverover-allotments.

Commonstocktobeoutstandingafterthisoffering

74,093,598shares.

Useofproceeds

Wewillnotreceiveanyproceedsfromthesaleofsharesofourcommonstockinthisofferingbythesellingshareholders.However,wewillpaycertainexpenses,otherthantheunderwritingdiscount,associatedwiththisoffering.

Dividendpolicy

Followingthisofferingandsubjecttoapplicablelaw,weintendtopayaregularquarterlycashdividendcommencinginthefirstquarterof2017.Weexpecttopaydividendsinanaggregateamountofapproximately$35.0milliononanannualbasis,whichamountmaybechangedorterminatedinthefutureatanytimewithoutadvancenotice.Anydecisiontodeclareandpaydividendsinthefuturewillbemadeatthesolediscretionofourboardofdirectorsandwilldependon,amongotherthings,ourresultsofoperations,capitalrequirements,financialcondition,contractualrestrictions,restrictionsinourdebtagreementsandinanyequitysecurities,businessprospectsandotherfactorsthatourboardofdirectorsmaydeemrelevant.Futureagreementsmayalsolimitourabilitytopaydividends.Becauseweareaholdingcompanyandhavenodirectoperations,weexpecttopaydividends,ifany,onlyfromfundswereceivefromoursubsidiaries.

See"DividendPolicy"and"TheShareholderTransaction."

Controlledcompany

UpontheclosingofthisofferingandaftergivingeffecttotheShareholderTransaction,Magnus,whichiswholly-ownedbyFilaKorea,willcontrol39,345,151shares,orapproximately53.1%,ofourcommonstock.Asaresult,wewillqualifyasa"controlledcompany"withinthemeaningofthelistingrulesoftheNYSE.See"TheShareholderTransaction."

Riskfactors

See"RiskFactors"andotherinformationincludedinthisprospectusforadiscussionofrisksyoushouldcarefullyconsiderbeforedecidingtoinvestinourcommonstock.

TableofContents

Thenumberofsharesofourcommonstocktobeoutstandingimmediatelyaftertheclosingofthisofferingisbasedon21,821,256sharesofcommonstockoutstandingasofJune30,2016and,unlessotherwiseindicated:

• reflectsandassumesthefollowing:

• theadoptionofouramendedandrestatedcertificateofincorporationandouramendedandrestatedby-lawsinconnectionwiththisoffering;

• theautomaticconversionofallofouroutstandingConvertibleNotesintoanaggregateof32,624,820sharesofourcommonstock,whichwilloccurpriortotheclosingofthisoffering;

• theautomaticconversionofallofouroutstandingConvertiblePreferredStockintoanaggregateof16,542,243sharesofourcommonstock,whichwilloccurpriortotheclosingofthisoffering;and

• theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrantsintoanaggregateof3,105,279sharesofourcommonstockatanexercisepriceof$11.11pershare,whichoccurredinJuly2016;and

• doesnotreflect:

• 1,225,533sharesofourcommonstockissuablefollowingvestinginsettlementofrestrictedstockunits,orRSUs,andupto2,451,066sharesofourcommonstockissuablefollowingvestinginsettlementofperformancestockunits,orPSUs,ineachcasethatwillbeissuedunderour2015OmnibusIncentivePlan,orthe2015IncentivePlan,asoftheclosingofthisoffering(assumingtheRSUsandPSUstobeissuedinconnectionwiththisofferingaregrantedwithafairmarketvalueof$22.50pershare,whichisthemidpointoftheestimatedinitialpublicofferingpricerangesetforthonthecoverpageofthisprospectus);

• 4,513,401additionalsharesofourcommonstockreservedforfutureissuanceunderthe2015IncentivePlan;and

• sharesofourcommonstockissuableinrespectofthesettlementofupto50%oftheoutstandingEARsatouroption,whichwereissuedundertheEARPlan.

Thenumberofsharesofourcommonstockoutstandingonahistorical,proformaandproformaasadjustedbasiseachreflectthe9-for-1stocksplitthatweeffectuatedonOctober14,2016.

Unlessotherwiseindicated,theinformationinthisprospectusdoesnotreflectanyexercisebytheunderwritersoftheiroptiontopurchaseadditionalsharesfromthesellingshareholders.

Directedshareprogram Atourrequest,theunderwritershavereservedforsale,attheinitialpublicofferingprice,upto2.0%ofthecommonstockofferedbythisprospectusforsaletoourdirectornominees,officersandcertainofouremployeesandotherpersonsassociatedwithus.ThesaleswillbemadebyJ.P.MorganSecuritiesLLC,anunderwriterofthisoffering,throughaDirectedShareProgram.Ifthesepersonspurchasecommonstockitwillreducethenumberofsharesofcommonstockavailableforsaletothegeneralpublic.Anyreservedsharesofcommonstockthatarenotsopurchasedwillbeofferedbytheunderwriterstothegeneralpubliconthesametermsastheothersharesofcommonstockofferedbythisprospectus.

NYSEtradingsymbol

"GOLF"

TableofContents

SummaryConsolidatedFinancialData

Youshouldreadthesummaryconsolidatedfinancialdatabelowtogetherwiththeconsolidatedfinancialstatementsandrelatednotestheretoappearingelsewhereinthisprospectus,aswellas"SelectedConsolidatedFinancialData,""Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations"andtheotherfinancialinformationincludedelsewhereinthisprospectus.

WehavederivedthesummaryhistoricalconsolidatedstatementofoperationsdataandtheconsolidatedstatementofcashflowsdatafortheyearsendedDecember31,2013,2014and2015andtheconsolidatedbalancesheetdataasofDecember31,2014and2015presentedbelowfromourauditedconsolidatedfinancialstatementsincludedelsewhereinthisprospectus.WehavederivedthesummaryhistoricalbalancesheetdataasofDecember31,2013presentedbelowfromourauditedconsolidatedfinancialstatementswhicharenotincludedinthisprospectus.Ourhistoricalauditedresultsarenotnecessarilyindicativeoftheresultsthatshouldbeexpectedinanyfutureperiod.

WehavederivedthesummaryhistoricalconsolidatedstatementofoperationsdataandtheconsolidatedstatementofcashflowsdataforthesixmonthsendedJune30,2015andJune30,2016andtheconsolidatedbalancesheetdataasofJune30,2016presentedbelowfromourunauditedconsolidatedfinancialstatementsincludedelsewhereinthisprospectus.Wehavepreparedourunauditedconsolidatedfinancialstatementsonthesamebasisasourauditedconsolidatedfinancialstatementsandhaveincludedalladjustments,consistingonlyofnormalrecurringadjustmentsthat,inouropinion,arenecessarytopresentfairlythefinancialinformationsetforthinthosestatements.Theresultsforanyinterimperiodarenotnecessarilyindicativeoftheresultsthatmaybeexpectedforthefullyearandourhistoricalunauditedresultsarenotnecessarilyindicativeoftheresultsthatshouldbeexpectedinanyfutureperiod.

TheproformabalancesheetdataasofJune30,2016andtheproformabasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.andtheproformabasicanddilutedweightedaveragenumberofsharesfortheyearendedDecember31,2015andthesixmonthsendedJune30,2016presentedbelowareunauditedandgiveeffectto(i)theautomaticconversionofallofouroutstandingConvertibleNotesintoanaggregateof32,624,820sharesofourcommonstock,whichwilloccurpriortotheclosingofthisoffering,(ii)withrespecttotheproformabalancesheetdata,thepaymentincashof$25.0millionofinterestontheConvertibleNotesaccruedfromAugust1,2015to,butnotincluding,June30,2016and(iii)theautomaticconversionofallofouroutstandingConvertiblePreferredStockintoanaggregateof16,542,243sharesofourcommonstock,whichwilloccurpriortotheclosingofthisoffering.TheproformabalancesheetdatagiveseffecttotheforegoingtransactionsassumingtheyoccurredonJune30,2016andtheproformabasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.giveseffecttotheforegoingtransactionsassumingtheyoccurredonJanuary1,2015.TheproformadataisnotnecessarilyindicativeofwhatourfinancialpositionorbasicordilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.wouldhavebeeniftheforegoingtransactionshadbeencompletedasofJune30,2016orfortheyearendedDecember31,2015orthesixmonthsendedJune30,2016,norissuchdatanecessarilyindicativeofourfinancialpositionorbasicordilutednetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.foranyfuturedateorperiod.

TheproformaasadjustedbalancesheetdataasofJune30,2016andtheproformaasadjustedbasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.andtheproformaasadjustedbasicanddilutedweightedaveragenumberofsharesfortheyearendedDecember31,2015andthesixmonthsendedJune30,2016presentedbelowareunauditedandgivefurthereffectto(i)theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrantsintoanaggregateof3,105,279sharesofourcommonstockatanexercisepriceof$11.11pershareandouruseoftheproceedsfromsuchexercisetoredeemallofouroutstanding7.5%bondsdue2021,whichoccurredinJuly2016,(ii)withrespecttotheproformaasadjustedbalancesheetdata,thepaymentin

TableofContents

cashof$2.4millionofinterestonthe7.5%bondsdue2021fromAugust1,2015to,butnotincluding,June30,2016and(iii)theRefinancing.TheproformaasadjustedbalancesheetdatagiveseffecttotheforegoingtransactionsassumingtheyoccurredonJune30,2016andtheproformaasadjustedbasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.giveseffecttotheforegoingtransactionsassumingtheyoccurredonJanuary1,2015.TheproformaasadjusteddataisnotnecessarilyindicativeofwhatourfinancialpositionorbasicordilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.wouldhavebeeniftheforegoingtransactionshadbeencompletedasofJune30,2016orfortheyearendedDecember31,2015orthesixmonthsendedJune30,2016,norissuchdatanecessarilyindicativeofourfinancialpositionorbasicordilutednetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.foranyfuturedateorperiod.

TableofContents

YearendedDecember31, Sixmonthsended

June30, 2013 2014 2015 2015 2016 (inthousands,exceptshareandpersharedata) ConsolidatedStatementsofOperationsData:

Netsales $ 1,477,219 $ 1,537,610 $ 1,502,958 $ 862,874 $ 902,995Costofgoodssold 744,090 779,678 727,120 409,929 443,754Grossprofit 733,129 757,932 775,838 452,945 459,241

Operatingexpenses: Selling,generalandadministrative 568,421 602,755 604,018 313,007 306,771Researchanddevelopment 42,152 44,243 45,977 22,628 22,823Intangibleamortization 6,704 6,687 6,617 3,313 3,303Restructuringcharges 955 — 1,643 — 642Incomefromoperations 114,897 104,247 117,583 113,997 125,702

Interestexpense,net 68,149 63,529 60,294 30,530 28,404Other(income)expense,net 5,285 (1,348) 25,139 9,934 3,838

Incomebeforeincometaxes 41,463 42,066 32,150 73,533 93,460Incometaxexpense 17,150 16,700 27,994 36,919 39,438Netincome 24,313 25,366 4,156 36,614 54,022

Less:Netincomeattributabletononcontrollinginterests (4,677) (3,809) (5,122) (3,158) (1,953)

Netincome(loss)attributabletoAcushnetHoldingsCorp. 19,636 21,557 (966) 33,456 52,069

Dividendspaidtopreferredshareholders (8,045) (8,045) (8,045) — —Accruingofcumulativedividends (5,740) (5,740) (5,740) (6,836) (6,855)Allocationofundistributedearningstopreferredshareholders (3,225) (3,866) — (12,548) (19,496)

Netincome(loss)attributabletocommonshareholders—basic 2,626 3,906 (14,751) 14,072 25,718

Netincome(loss)attributabletocommonshareholders—diluted(1) $ 2,626 $ 3,906 $ (14,751) $ 26,751 $ 41,418

PerShareData: Netincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.—basic(2) $ 0.19 $ 0.23 $ (0.74) $ 0.76 $ 1.18

Netincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.—diluted(3) 0.19 0.23 (0.74) 0.52 0.76

Weightedaveragenumberofcommonshares—basic(2) 13,471,308 16,716,825 19,939,293 18,551,790 21,821,256

Weightedaveragenumberofcommonshares—diluted(3) 13,471,308 16,716,825 19,939,293 51,265,755 54,449,955

ProformanetincomepercommonshareattributabletoAcushnetHoldingsCorp.—basicanddiluted(4) $ 0.24 $ 0.86

Proformaweightedaveragenumberofcommonshares—basic(4) 69,106,356 70,988,319Proformaweightedaveragenumberofcommonshares—diluted(4) 69,107,445 70,992,198ProformaasadjustednetincomepercommonshareattributabletoAcushnetHoldingsCorp.—basicanddiluted(5) $ 0.77 $ 0.95

Proformaasadjustedweightedaveragenumberofcommonshares—basic(5) 72,211,635 74,093,598

Proformaasadjustedweightedaveragenumberofcommonshares—diluted(5) 72,212,724 74,097,477

(1) Reflectstheimpacttonetincome(loss)attributabletocommonshareholdersofdilutivesecurities.Dilutednetincome(loss)attributabletocommonshareholdersforeachoftheyearsendedDecember31,2013,2014and2015doesnotincludetheeffectsof(i)theconversionoftheConvertiblePreferredStocktocommonshares,(ii)theconversionoftheConvertibleNotestocommonshares,(iii)theexerciseofouroutstandingcommonstockwarrantsor(iv)theexerciseofthenoutstandingstockoptions,astheinclusionoftheseinstrumentswouldhavebeenanti-dilutiveforeachoftheyearsendedDecember31,2013,2014

TableofContents

and2015.Dilutednetincome(loss)attributabletocommonshareholdersforthesixmonthsendedJune30,2015and2016doesnotincludetheeffectsof(i)theconversionoftheConvertiblePreferredStocktocommonsharesor(ii)theexerciseofouroutstandingcommonstockwarrants,astheinclusionoftheseinstrumentswouldhavebeenanti-dilutiveforeachofthesixmonthsendedJune30,2015and2016.

(2) Basicnetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.iscomputedbydividing(A)netincome(loss)attributabletoAcushnetHoldingsCorp.,afteradjustingfor(i)dividendspaidandaccruedand(ii)allocationsofundistributedearningstopreferredshareholders,by(B)basicweightedaveragecommonsharesoutstanding.

(3) Dilutednetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.iscomputedbydividing(A)netincome(loss)attributabletoAcushnetHoldingsCorp.,afteradjustingfor(i)dividendspaidandaccrued,(ii)allocationsofundistributedearningstopreferredshareholdersand(iii)theimpactstonetincome(loss)ofanypotentiallydilutivesecurities,by(B)thedilutedweightedaveragecommonsharesoutstanding,whichhasbeenadjustedtoincludeanypotentiallydilutivesecurities.Dilutednetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.foreachoftheyearsendedDecember31,2013,2014and2015doesnotincludetheeffectsof(i)theconversionoftheConvertiblePreferredStocktocommonshares,(ii)theconversionoftheConvertibleNotestocommonshares,(iii)theexerciseofouroutstandingcommonstockwarrantsor(iv)theexerciseofthenoutstandingstockoptions,astheinclusionoftheseinstrumentswouldhavebeenanti-dilutiveforeachoftheyearsendedDecember31,2013,2014and2015.Dilutednetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.forthesixmonthsendedJune30,2015and2016doesnotincludetheeffectsof(i)theconversionoftheConvertiblePreferredStocktocommonsharesor(ii)theexerciseofouroutstandingcommonstockwarrants,astheinclusionoftheseinstrumentswouldhavebeenanti-dilutiveforeachofthesixmonthsendedJune30,2015and2016.

(4) SeeNote20toourauditedconsolidatedfinancialstatementsandNote14toourunauditedconsolidatedfinancialstatements,eachincludedelsewhereinthisprospectus,forfurtherdetailsonthecalculationofproformabasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.

(5) ProformaasadjustedbasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.representsproformanetincomepercommonshareattributabletoAcushnetHoldingsCorp.aftergivingfurthereffectto(i)theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrantsintoanaggregateof3,105,279sharesofourcommonstockatanexercisepriceof$11.11pershareandouruseoftheproceedsfromsuchexercisetoredeemallofouroutstanding7.5%bondsdue2021,whichoccurredinJuly2016and(ii)theRefinancing,asifeachoftheseeventsoccurredonJanuary1,2015.

TableofContents

ThefollowingtableprovidesareconciliationofproformanetincomeattributabletoAcushnetHoldingsCorp.toproformaasadjustednetincomeattributabletoAcushnetHoldingsCorp.:

Yearended

December31,2015 SixmonthsendedJune30,2016

(inthousands,exceptshareand

persharedata) ProformanetincomeattributabletoAcushnetHoldingsCorp.(a) $ 16,706 $ 60,857

Lossesonthefairvalueofourcommonstockwarrants 28,364 6,112

Interestexpenseon7.5%bondsdue2021 5,351 1,022

ChangeininterestexpenserelatedtotheRefinancing 5,288 2,748

ProformaasadjustednetincomeattributabletoAcushnetHoldingsCorp. $ 55,709 $ 70,739

Proformaweightedaveragenumberofcommonshares—basic(a) 69,106,356 70,988,319Proformaweightedaveragenumberofcommonshares—diluted(a) 69,107,445 70,992,198Issuanceofcommonsharesrelatingtotheassumedexerciseofourcommonstockwarrants 3,105,279 3,105,279

Proformaasadjustedweightedaveragenumberofcommonshares—basic 72,211,635 74,093,598

Proformaasadjustedweightedaveragenumberofcommonshares—diluted 72,212,724 74,097,477

ProformaasadjustednetincomepercommonshareattributabletoAcushnetHoldingsCorp.—basicanddiluted $ 0.77 $ 0.95

(a) SeeNote20toourauditedconsolidatedfinancialstatementsandNote14toourunauditedconsolidatedfinancialstatements,eachincludedelsewhereinthisprospectus,forfurtherdetailsonthecalculationofproformabasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.

TableofContents

AsofJune30,

AsofDecember31,

2014 2015

ProFormaAsAdjusted

Actual ProForma (inthousands) BalanceSheetData(1):

Cash(2) $ 47,667 $ 54,409 $ 75,779 $ 50,752 $ 48,363Currentassetslesscurrentliabilities,excludingthecurrentportionofourlong-termdebtandEARPlanliability 339,301 345,114 378,628 378,628 407,624

Totalassets 1,762,703 1,758,973 1,807,135 1,782,108 1,779,719Long-termdebt,netofdiscount,includingcurrentportion,andcapitalleaseobligations(3) 873,542 797,151 769,215 406,725 375,903

EARPlanliability,includingcurrentportion(4) 122,013 169,566 153,533 153,533 153,533TotalequityattributabletoAcushnetHoldingsCorp. 156,587 160,251 206,168 699,694 759,512

(1) Doesnotreflectthepaymentofapproximately$17.3millioninaggregate,consistingof:(i)accruedandunpaidinterestintheamountof$0.2milliononour7.5%bondsdue2021accruingfromJuly1,2016to,butnotincluding,theirredemptiondateonJuly29,2016,(ii)accruedandunpaidinterestintheamountofapproximately$1.8milliononourConvertibleNotesaccruingfromJuly1,2016to,butnotincluding,thedateofpricingofthisoffering,(iii)accruedandunpaidinterestintheamountofapproximately$7.4milliononourConvertibleNotesaccruingfromJuly1,2016to,butnotincluding,theclosingdateofthisoffering,(iv)accruedandunpaiddividendsintheamountofapproximately$0.9milliononourConvertiblePreferredStockfromAugust1,2015to,butnotincluding,thedateofpricingofthisoffering,(v)accruedandunpaiddividendsintheamountofapproximately$3.7milliononourConvertiblePreferredStockfromAugust1,2015to,butnotincluding,theclosingdateofthisofferingand(vi)estimatedfeesandexpensesofapproximately$3.3millionrelatedtothisofferingpayablebyuswhichwehaveincurredsinceJuly1,2016.

OnJuly29,2016,wepaid(i)allaccruedandunpaidinterestonour7.5%bondsdue2021to,butnotincluding,July29,2016inconnectionwiththeredemptionofallofouroutstanding7.5%bondsdue2021,(ii)allaccruedandunpaidinterestonourConvertibleNotesto,butnotincluding,August1,2016and(iii)allaccruedandunpaiddividendsonourConvertiblePreferredStockto,butnotincluding,August1,2016,eachofwhichwasfundedusingcashonhandandborrowingsunderournewrevolvingcreditfacility.

WeexpecttopaytheremainingaccruedandunpaidinterestonourConvertibleNotesandtheremainingaccruedandunpaiddividendsonourConvertiblePreferredStockatthepricingortheclosingofthisoffering,asthecasemaybe.Weexpecttopay(i)theremainingaccruedandunpaidinterestonourConvertibleNotes,(ii)theremainingaccruedandunpaiddividendsonourConvertiblePreferredStockand(iii)ourremainingfeesandexpensesrelatedtothisofferingusingcashonhandand/orborrowingsunderournewrevolvingcreditfacility.

(2) Doesnotincluderestrictedcashof$6.1million,$4.7millionand$4.9millionasofDecember31,2014and2015andJune30,2016,respectively.Restrictedcashisprimarilyrelatedtoastandbyletterofcreditusedforinsurancepurposes.Includescashof$7.7million,$10.0millionand$15.1millionasofDecember31,2014and2015andJune30,2016,respectively,relatedtoourFootJoygolfshoejointventure.SeeNote2toourauditedconsolidatedfinancialstatementsandNote1toourunauditedconsolidatedfinancialstatements,eachincludedelsewhereinthisprospectus,forfurtherdetailsonourFootJoygolfshoejointventure.

TableofContents

(3) Long-termdebt,netofdiscount,includingcurrentportion,andcapitalleaseobligationsconsistsof(i)long-termdebtandcapitalleaseobligationsand(ii)theportionofanylong-termdebtthatisclassifiedasacurrentliabilityonourbalancesheet,ineachcasenetofanyunamortizeddiscountonsuchoutstandingamounts.

Thefollowingtableshowshowlong-termdebt,netofdiscount,includingcurrentportion,andcapitalleaseobligationswascalculatedfortherelevantperiods:

AsofDecember31, AsofJune30,

Actual ProForma ProFormaAsAdjusted

2014 2015 2016 Short-termdebt $ 81,162 $ 441,704 $ 422,328 $ 422,328 $ 47,746Long-termdebtandcapitalleaseobligations 824,179 394,511 394,632 32,142 375,902Totaldebt 905,341 836,215 816,960 454,470 423,648Less:short-termfinancingarrangements(a) (31,799) (39,064) (47,745) (47,745) (47,745)Long-termdebt,netofdiscount,includingcurrentportion,andcapitalleaseobligations $ 873,542 $ 797,151 $ 769,215 $ 406,725 $ 375,903

(a) Excludesanylong-termdebtthatisclassifiedasacurrentliabilityonourbalancesheetandconsistsofamountsoutstandingunder(i)revolvingcreditfacilitiesand(ii)termloanfacilitiesandotherfinancingarrangementsthatmaturewithinoneyearoforiginalissuance.

(4) TheEARsasstructureddonotqualifyforequityaccountingtreatment.Assuch,theliabilitywasre-measuredateachreportingperiodbasedonourthen-currentprojectionofourcommonstockequivalent,orCSE,value(asdefinedintheEARPlan).See"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—CriticalAccountingPoliciesandEstimates—Share-BasedCompensation."TheEARswillaccrete$1.1millionofinterestfortheremainderoftheyearendedDecember31,2016.TheEARPlanexpiresonDecember31,2016andamountsearnedundertheEARPlanmustbepaidwithintwoandahalfmonthsaftertheexpirationdate.

June30, 2013 2014 2015 2015 2016 (inthousands) ConsolidatedStatementsofCashFlowsData: Cashflowsprovidedby(usedin): Operatingactivities $ 78,795 $ 54,113 $ 91,830 $ 36,070 $ 55,487Investingactivities (46,360) (23,164) (21,839) (9,071) (8,156)Financingactivities (28,179) (30,154) (60,057) (4,876) (27,796)

TableofContents

June30, 2013 2014 2015 2015 2016 (inthousands) OtherFinancialData: AdjustedEBITDA(1) $ 190,407 $ 202,593 $ 214,721 $ 160,389 $ 164,350AdjustedNetIncome(2) 68,387 80,499 86,721 75,297 79,558FreeCashFlow(3) 32,336 30,586 68,629 25,661 47,371

(1) AdjustedEBITDArepresentsnetincome(loss)attributabletoAcushnetHoldingsCorp.plusincometaxexpense,interestexpense,depreciationandamortization,theexpensesrelatingtoourEARPlan,share-basedcompensationexpense,aone-timeexecutivebonus,restructuringcharges,plantstart-upcosts,certaintransactionfees,indemnificationexpense(income)fromourformerownerBeam,gains(losses)onthefairvalueofourcommonstockwarrants,certainothernon-cashgains,netandthenetincomerelatingtononcontrollinginterestsinourFootJoygolfshoejointventure.WedefineAdjustedEBITDAinamannerconsistentwiththeterm"ConsolidatedEBITDA"asitisdefinedinournewcreditagreement.ConsolidatedEBITDAisusedinournewcreditagreementattheAcushnetCompanylevelforpurposesofcertainmaterialterms,including(i)determiningtheapplicablemarginusedtodeterminetheinterestrateperannumofoutstandingborrowingsandcommitmentfeesforrevolvingcommitments,(ii)calculatingcertainfinancialratiosusedinfinancialmaintenancecovenantsthatrequirecomplianceonaquarterlybasis,(iii)determiningourabilitytoincuradditionaltermloansorincreasestoournewrevolvingcreditfacilityand(iv)determiningtheavailabilityofcertainbasketsandtheabilitytoenterintocertaintransactions.See"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—LiquidityandCapitalResources—Indebtedness"and"DescriptionofIndebtedness"forfurtherdiscussionofhowConsolidatedEBITDAisusedincertainmaterialtermsofournewcreditagreement.

WepresentAdjustedEBITDAasasupplementalmeasurebecauseitexcludestheimpactofcertainitemsthat(i)wedonotconsiderindicativeofourongoingoperatingperformance,(ii)thatrelatetotheAcquisitionor(iii)thatrelatetoourhistoricalcapitalstructurethatwillnolongerberelevantaftertheclosingofthisoffering.ManagementusesAdjustedEBITDAtoevaluatetheeffectivenessofourbusinessstrategies,assessourconsolidatedoperatingperformanceandmakedecisionsregardingpricingofourproducts,gotomarketexecutionandcoststoincuracrossourbusiness.AdjustedEBITDAisalsousedasafinancialperformancemeasureforpurposesofdeterminingthevestingofequityawardsthatweregrantedunderour2015IncentivePlan.

WealsobelieveAdjustedEBITDAprovidesusefulinformationtoinvestorsregarding(i)ourconsolidatedoperatingperformance,(ii)ourcapacitytoservicedebt,(iii)theapplicablemarginusedtodeterminetheinterestrateperannumofoutstandingborrowingsandcommitmentfeesforrevolvingcommitmentsand(iv)ourcapacitytoincuradditionaldebtandutilizecertainbasketsandenterintotransactionsthatmayotherwiseberestrictedbyournewcreditagreement.BypresentingAdjustedEBITDA,weprovideabasisforcomparisonofourbusinessoperationsbetweendifferentperiodsbyexcludingitemsthatwedonotbelieveareindicativeofourcoreoperatingperformance.

AdjustedEBITDAisnotameasurementoffinancialperformanceunderGAAP.Itshouldnotbeconsideredanalternativetonetincome(loss)attributabletoAcushnetHoldingsCorp.asameasureofouroperatingperformanceoranyothermeasureofperformancederivedinaccordancewithGAAP.Inaddition,AdjustedEBITDAshouldnotbeconstruedasaninferencethatourfutureresultswillbeunaffectedbyunusualornon-recurringitems,oraffectedbysimilarnon-recurringitems.AdjustedEBITDAhaslimitationsasananalyticaltool,andyoushouldnotconsidersuchmeasureeitherinisolationorasasubstituteforanalyzingourresultsasreported

TableofContents

underGAAP.OurdefinitionandcalculationofAdjustedEBITDAisnotnecessarilycomparabletoothersimilarlytitledmeasuresusedbyothercompaniesduetodifferentmethodsofcalculation.

Thefollowingtableprovidesareconciliationofnetincome(loss)attributabletoAcushnetHoldingsCorp.toAdjustedEBITDA:

June30, 2013 2014 2015 2015 2016 (inthousands) Netincome(loss)attributabletoAcushnetHoldingsCorp. $ 19,636 $ 21,557 $ (966) $ 33,456 $ 52,069Incometaxexpense 17,150 16,700 27,994 36,919 39,438Interestexpense,net 68,149 63,529 60,294 30,530 28,404Depreciationandamortization 39,423 43,159 41,702 21,270 20,550EARPlan(a) 28,258 50,713 45,814 22,665 —Share-basedcompensation(b) 3,461 1,977 5,789 1,914 964One-timeexecutivebonus(c) — — — — 7,500Restructuringcharges(d) 955 — 1,643 — 642Thailandgolfballmanufacturingplantstart-upcosts(e) 2,927 788 — — —

Transactionfees(f) 551 1,490 2,141 538 8,965Beamindemnificationexpense(income)(g) 6,345 1,386 (3,007) (4,718) (485)(Gains)lossesonthefairvalueofourcommonstockwarrants(h) (976) (1,887) 28,364 14,778 6,112

Othernon-cashgains,net (149) (628) (169) (121) (295)Nonrecurringexpense(income)(i) — — — — (1,467)Netincomeattributabletononcontrollinginterests(j) 4,677 3,809 5,122 3,158 1,953

AdjustedEBITDA $ 190,407 $ 202,593 $ 214,721 $ 160,389 $ 164,350

(a) ReflectsexpensesrelatedtotheanticipatedfullvestingofEARsgrantedunderourEARPlanandtheremeasurementoftheliabilityateachreportingperiodbasedonthethen-currentprojectionofourCSEvalue.See"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—CriticalAccountingPoliciesandEstimates—Share-BasedCompensation."Wemayincuradditionalmaterialexpensesin2016inconnectionwiththeoutstandingEARs.AlloutstandingEARsundertheEARPlanvestedasofDecember31,2015.TheEARPlanexpiresonDecember31,2016andamountsearnedundertheEARPlanmustbepaidwithintwoandahalfmonthsaftertheexpirationdate.

(b) FortheyearsendedDecember31,2013,2014and2015andthesixmonthsendedJune30,2015,reflectscompensationexpenseassociatedwiththeexerciseofsubstitutestockoptionsbyanexecutive,whichweregrantedinconnectionwiththeAcquisition.Allsuchstockoptionshavebeenexercised.ForthesixmonthsendedJune30,2016,reflectscompensationexpenseswithrespecttoequity-basedgrantsunderthe2015IncentivePlanwhichweremadeinthesecondquarterof2016.

(c) Inthefirstquarterof2016,ourPresidentandChiefExecutiveOfficerwasawardedacashbonusintheamountof$7.5millionasconsiderationforpastperformance.

(d) Reflectsrestructuringchargesincurredinconnectionwiththereorganizationofcertainofouroperationsin2013,2015andthesixmonthsendedJune30,2016.

TableofContents

(e) Reflectsexpensesincurredinconnectionwiththeconstructionandproductionramp-upofourgolfballmanufacturingplantinThailand.

(f) Reflectslegalfeesincurredin2013,2014and2015andthesixmonthsendedJune30,2016relatingtoadisputearisingfromtheindemnificationobligationsowedtousbyBeaminconnectionwiththeAcquisitionaswellascertainfeesandexpensesweincurredin2015andthesixmonthsendedJune30,2016inconnectionwiththisoffering.

(g) Reflectsthenon-cashchargesrelatedtotheindemnificationobligationsowedtousbyBeamthatareincludedwhencalculatingnetincome(loss)attributabletoAcushnetHoldingsCorp.

(h) FilaKoreaexercisedallofouroutstandingcommonstockwarrantsinJuly2016andweusedtheproceedsfromsuchexercisetoredeemallofouroutstanding7.5%bondsdue2021.

(i) ReflectslegaljudgmentinfavorofusassociatedwiththeBeamvalue-addedtaxdisputerecordedinother(income)expense.

(j) ReflectsthenetincomeattributabletotheinterestthatwedonotowninourFootJoygolfshoejointventure.

(2) AdjustedNetIncomerepresentsnetincome(loss)attributabletoAcushnetHoldingsCorp.plusinterestexpenseonourConvertibleNotesand7.5%bondsdue2021,theexpensesrelatingtoourEARPlan,share-basedcompensationexpense,aone-timeexecutivebonus,restructuringcharges,plantstart-upcosts,certaintransactionfeesand(gains)lossesonthefairvalueofourcommonstockwarrants,minusthetaxeffectoftheforegoingadjustments.WebelieveAdjustedNetIncomeisusefultoinvestors,securitiesanalystsandotherinterestedpartiesasameasureofourcomparativeoperatingperformancefromperiodtoperiodbecauseitexcludestheimpactofcertainitemsthat(i)wedonotconsiderindicativeofourongoingoperatingperformance,(ii)relatetotheAcquisition,(iii)relatetoourhistoricalcapitalstructurethatwillnolongerberelevantaftertheclosingofthisofferingor(iv)relatetoourhistoricalequitycompensationstructurethatwillnotberelevantafteramountsearnedunderourEARPlanarepaidaftertheapplicableexpirationdate(thoughwenotethatwebegantoincurcompensationexpenseswithrespecttoequity-basedgrantsunderthe2015IncentivePlaninthesecondquarterof2016,whichexpenseswedonotadjustforwhenpresentingAdjustedNetIncome).AdjustedNetIncomeisnotameasurementoffinancialperformanceunderGAAP.Itshouldnotbeconsideredanalternativetonetincome(loss)attributabletoAcushnetHoldingsCorp.asameasureofouroperatingperformanceoranyothermeasureofperformancederivedinaccordancewithGAAP.Inaddition,AdjustedNetIncomeshouldnotbeconstruedasaninferencethatourfutureresultswillbeunaffectedbyunusualornon-recurringitems,oraffectedbysimilarnon-recurringitems.AdjustedNetIncomehaslimitationsasananalyticaltool,andyoushouldnotconsidersuchmeasureeitherinisolationorasasubstituteforanalyzingourresultsasreportedunderGAAP.OurdefinitionandcalculationofAdjustedNetIncomeisnotnecessarilycomparabletoothersimilarlytitledmeasuresusedbyothercompaniesduetodifferentmethodsofcalculation.

TableofContents

Thefollowingtableprovidesareconciliationofnetincome(loss)attributabletoAcushnetHoldingsCorp.toAdjustedNetIncome:

June30, 2013 2014 2015 2015 2016 (inthousands) Netincome(loss)attributabletoAcushnetHoldingsCorp. $ 19,636 $ 21,557 ($966) $ 33,456 $ 52,069InterestexpenseonConvertibleNotesand7.5%bondsdue2021(a) 40,276 37,960 35,420 16,519 15,129

EARPlan(b) 28,258 50,713 45,814 22,665 —Share-basedcompensation(c) 3,461 1,977 5,789 1,914 —One-timeexecutivebonus(d) — — — — 7,500Restructuringcharges(e) 955 — 1,643 — 642Thailandgolfballmanufacturingplantstart-upcosts(f) 2,927 788 — — —

Transactionfees(g) 551 1,490 2,141 538 8,965(Gains)lossesonthefairvalueofourcommonstockwarrants(h) (976) (1,887) 28,364 14,778 6,112

Nonrecurringexpense(income)(i) — — — — (1,467)Taxeffectoftheforegoingadjustments(j) (26,701) (32,099) (31,484) (14,573) (9,392)

AdjustedNetIncome $ 68,387 $ 80,499 $ 86,721 $ 75,297 $ 79,558

(a) InconnectionwiththeAcquisition,weissued(i)anaggregateprincipalamountof$362.5millionofourConvertibleNotesand(ii)anaggregateprincipalamountof$172.5millionof7.5%bondsdue2021(whichaggregateprincipalamountof7.5%bondsdue2021was$34.5millionasofJune30,2016).AllofouroutstandingConvertibleNoteswillconvertintosharesofourcommonstockpriortotheclosingofthisofferingandFilaKoreaexercisedallofouroutstandingcommonstockwarrantsinJuly2016andweusedtheproceedsfromsuchexercisetoredeemallofouroutstanding7.5%bondsdue2021.

(b) ReflectsexpensesrelatedtotheanticipatedfullvestingofEARsgrantedunderourEARPlanandtheremeasurementoftheliabilityateachreportingperiodbasedonthethen-currentprojectionofourfutureCSEvalue.See"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—CriticalAccountingPoliciesandEstimates—Share-BasedCompensation."Wemayincuradditionalmaterialexpensesin2016inconnectionwiththeoutstandingEARs.AlloutstandingEARsundertheEARPlanvestedasofDecember31,2015.TheEARPlanexpiresonDecember31,2016andamountsearnedundertheEARPlanmustbepaidwithintwoandahalfmonthsaftertheexpirationdate.WeadjustforexpensesrelatingtoourEARPlanwhenpresentingAdjustedNetIncomeastheseexpensesarenotrepresentativeoftheequity-basedcompensationexpensesweexpecttoincuronanongoingbasis.Webegantoincurcompensationexpenseswithrespecttoequity-basedgrantsunderthe2015IncentivePlanbeginninginthesecondquarterof2016,whichexpenseswedonotadjustforwhenpresentingAdjustedNetIncome.

(c) ReflectscompensationexpenseassociatedwiththeexerciseofsubstitutestockoptionsbyanexecutivewhichweregrantedinconnectionwiththeAcquisition.Allsuchstockoptionshavebeenexercised.

(d) Inthefirstquarterof2016,ourPresidentandChiefExecutiveOfficerwasawardedacashbonusintheamountof$7.5millionasconsiderationforpastperformance.

(e) Reflectsrestructuringchargesincurredinconnectionwiththereorganizationofcertainofouroperationsin2013,2015andthesixmonthsendedJune30,2016.

TableofContents

(f) Reflectsexpensesincurredinconnectionwiththeconstructionandproductionramp-upofourgolfballmanufacturingplantinThailand.

(g) Reflectslegalfeesincurredin2013,2014and2015andthesixmonthsendedJune30,2016relatingtoadisputearisingfromtheindemnificationobligationsowedtousbyBeaminconnectionwiththeAcquisitionaswellascertainfeesandexpensesweincurredin2015andthesixmonthsendedJune30,2016inconnectionwiththisoffering.

(i) ReflectslegaljudgmentinfavorofusassociatedwithBeamvalue-addedtaxdisputerecordedinother(income)expenses.

(j) Theadjustmentstonetincome(loss)attributabletoAcushnetHoldingsCorp.havebeentaxeffectedattheapplicablestatutoryratewiththeexceptionofthefairvalueofthecommonstockwarrantsandcertaintransactioncostswhicharepermanentitemsfortaxpurposes,andtherefore,havenotbeentaxeffected.

(3) FreeCashFlowrepresentscashflowsprovidedby(usedin)operatingactivitieslesscapitalexpenditures.WebelieveFreeCashFlowisusefultoinvestorsbecauseitrepresentsthecashthatouroperatingbusinessgeneratesbeforetakingintoaccountcapitalexpenditures.FreeCashFlowisnotameasurementofliquidityunderGAAP.Itshouldnotbeconsideredasanalternativetocashflowsprovidedby(usedin)operatingactivitiesasameasureofourliquidityoranyothermeasureofliquidityderivedinaccordancewithGAAP.FreeCashFlowhaslimitationsasananalyticaltool,andyoushouldnotconsidersuchmeasureeitherinisolationorasasubstituteforanalyzingourresultsasreportedunderGAAP.OurdefinitionandcalculationofFreeCashFlowisnotnecessarilycomparabletoothersimilarlytitledmeasuresusedbyothercompaniesduetodifferentmethodsofcalculation.

Thefollowingtableprovidesareconciliationofcashflowsprovidedby(usedin)operatingactivitiestoFreeCashFlow:

June30, 2013 2014 2015 2015 2016 (inthousands) Cashflowsprovidedby(usedin)operatingactivities $ 78,795 $ 54,113 $ 91,830 $ 36,070 $ 55,487Capitalexpenditures (46,459) (23,527) (23,201) (10,409) (8,116)

FreeCashFlow(a) $ 32,336 $ 30,586 $ 68,629 $ 25,661 $ 47,371

(a) InconnectionwiththeAcquisition,weissued(i)anaggregateprincipalamountof$362.5millionofourConvertibleNotesand(ii)anaggregateprincipalamountof$172.5millionof7.5%bondsdue2021(whichaggregateprincipalamountof7.5%bondsdue2021was$34.5millionasofJune30,2016).AllofouroutstandingConvertibleNoteswillconvertintosharesofourcommonstockpriortotheclosingofthisofferingandFilaKoreaexercisedallofouroutstandingcommonstockwarrantsinJuly2016andweusedtheproceedsfromsuchexercisetoredeemallofouroutstanding7.5%bondsdue2021.FreeCashFlowhasnotbeenadjustedtoexcludeanyhistoricalimpactfromtheinterestexpenseonourConvertibleNotesandour7.5%bondsdue2021,whichinterestexpensetotaled$40.3million,$38.0million,$35.4million,$16.5millionand$15.1millionfortheyearsendedDecember31,2013,2014and2015andthesixmonthsendedJune30,2015and2016,respectively.

TableofContents

RISKFACTORS

Investing in our common stock involves a high degree of risk. You should carefully consider each of the following risk factors, as well as the otherinformation in this prospectus, including our consolidated financial statements and the related notes and "Management's Discussion and Analysis of FinancialCondition and Results of Operation," before deciding whether to invest in shares of our common stock. If any of the following risks actually occurs, our business,financial condition and results of operations could be materially adversely affected. In that event, the market price of our common stock could decline significantlyand you could lose all or part of your investment. The risks described below are not the only risks we face. Additional risks we are not presently aware of or thatwe currently believe are immaterial could also materially adversely affect our business, financial condition and results of operations.

RisksRelatedtoOurBusinessandIndustry

A reduction in the number of rounds of golf played or in the number of golf participants could materially adversely affect our business, financial condition andresults of operations.

Wegeneratesubstantiallyallofoursalesfromthesaleofgolf-relatedproducts,includinggolfballs,golfclubs,golfshoes,golfgloves,golfgearandgolfapparel.Thedemandforgolf-relatedproductsingeneral,andgolfballsinparticular,isdirectlyrelatedtothenumberofgolfparticipantsandthenumberofroundsofgolfbeingplayedbytheseparticipants.ThenumberofroundsofgolfplayedintheUnitedStatesdeclinedfrom2006to2014.Ifgolfparticipationorthenumberofroundsofgolfplayedcontinuestodecline,salesofourproductsmaybeadverselyimpactedwhichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

Unfavorable weather conditions may impact the number of playable days and rounds played in a given year.

Weatherconditionsinmostpartsoftheworld,includingourprimarygeographicmarkets,generallyrestrictgolffrombeingplayedyear-round,withmanyofouron-coursecustomersclosedduringthecoldweathermonthsand,toalesserextent,duringthehotweathermonths.Unfavorableweatherconditionsinourmajormarkets,suchasaparticularlylongwinter,acoldandwetspring,oranextremelyhotsummer,wouldimpactthenumberofplayabledaysandroundsplayedinagivenyear,whichwouldresultinadecreaseintheamountspentbygolfersandgolfretailersonourproducts,particularlywithrespecttoconsumableproductssuchasgolfballsandgolfgloves,whichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.Ourresultsin2013and2014werenegativelyimpactedbyunfavorableweatherconditionsinourmajormarkets.Unusualorsevereweatherconditionsthroughouttheyear,suchasstormsordroughtsorotherwatershortages,cannegativelyaffectgolfroundsplayedbothduringtheeventsandafterward,asweatherdamagedgolfcoursesarerepairedandgolfersfocusonrepairingthedamagetotheirhomes,businessesandcommunities.Consequently,sustainedadverseweatherconditions,especiallyduringthewarmweathermonths,couldimpactoursaleswhichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.Adverseweatherconditionsmayhaveagreaterimpactonusthanothergolfequipmentcompaniesaswehavealargepercentageofconsumableproductsinourproductportfolio,andthepurchaseofconsumableproductsaregenerallymoredependentonthenumberofroundsplayedinagivenyear.

Consumer spending habits and macroeconomic factors may affect the number of rounds of golf played and related spending on golf products.

Ourproductsarerecreationalinnatureandarethereforediscretionarypurchasesforconsumers.Consumersaregenerallymorewillingtospendtheirtimeandmoneytoplaygolfandmakediscretionarypurchasesofgolfproductswheneconomicconditionsarefavorableandwhenconsumersarefeelingconfidentandprosperous.Discretionaryspendingongolfandthegolfproductswesellisaffectedbyconsumerspendinghabitsaswellasbymanymacroeconomicfactors,includinggeneral

TableofContents

businessconditions,stockmarketpricesandvolatility,corporatespending,housingprices,interestrates,theavailabilityofconsumercredit,taxesandconsumerconfidenceinfutureeconomicconditions.Consumersmayreduceorpostponepurchasesofourproductsasaresultofshiftsinconsumerspendinghabitsaswellasduringperiodswheneconomicuncertaintyincreases,disposableincomeislower,orduringperiodsofactualorperceivedunfavorableeconomicconditions.Forexample,therecessionrelatedtotheU.S.financialcrisisbeginningin2007ledtoslowereconomicactivity,decreasedstockpricesandincreasedvolatility,depressedhousingprices,increasedunemployment,concernsaboutinflationandenergycosts,decreasedbusinessandconsumerconfidence,andadversebusinessconditions(includingreducedcorporateprofitsandcapitalspending),whichadverselyaffectedourbusiness,financialconditionandresultsofoperations.Theeffectsoftherecessionarestillbeingfelttodayinthegolfindustryaswebelieveconsumershavebecomemorecautiouswiththeirdiscretionarypurchasesandthistrendmaycontinue.Forexample,corporatespendingongolfequipmenthasremainedatlowerlevelssincethefinancialcrisisasevidencedbythelowervolumeofballsinourcustomlogobusinessbeingsoldtocompaniesascomparedtobeforethecrisis.Thecontinuationofthesenegativemacroeconomicconditionsorafuturesignificantorprolongeddeclineingeneraleconomicconditionsoruncertaintiesregardingfutureeconomicprospectsthatadverselyaffectsconsumerdiscretionaryspending,whetherintheUnitedStatesorinourinternationalmarkets,couldresultinreducedsalesofourproducts,whichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

Demographic factors may affect the number of golf participants and related spending on our products.

Golfisarecreationalactivitythatrequirestimeandmoneyanddifferentgenerationsandsocioeconomicandethnicgroupsusetheirleisuretimeanddiscretionaryfundsindifferentways.Golfparticipationamongyoungergenerationsandcertainsocioeconomicandethnicgroupsmaynotprovetobeaspopularasitisamongthecurrentgen-xandbabyboomergenerations.ThenumberofroundsofgolfbeingplayedintheUnitedStatesdeclinedfrom2006to2014.Ifgolfparticipationorthenumberofroundsofgolfplayedcontinuestodecrease,duetofactorssuchasdemographicchangesintheUnitedStatesandourinternationalmarketsorlackofinterestinthesportamongyoungpeopleorcertainsocioeconomicandethnicgroups,salesofourproductscouldbenegativelyimpactedwhichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

A significant disruption in the operations of our manufacturing, assembly or distribution facilities could materially adversely affect our business, financialcondition and results of operations.

WerelyonourmanufacturingfacilitiesintheUnitedStates,ThailandandChinaandassemblyanddistributionfacilitiesinmanyofourmajormarkets,certainofwhichconstituteoursolemanufacturingfacilityforaparticularproductcategory,includingourjointventurefacilityinChinawheresubstantiallyallofourgolfshoesaremanufacturedandourfacilityinThailandwherewemanufacturesubstantiallyallofourgolfgloves.Becausesubstantiallyallofourproductsaremanufacturedandassembledinanddistributedfromafewlocations,ouroperationscouldbeinterruptedbyeventsbeyondourcontrol,including:

• powerlossornetworkconnectivityortelecommunicationsfailureordowntime;

• equipmentfailure;

• humanerrororaccidents;

• sabotageorvandalism;

• physicalorelectronicsecuritybreaches;

• floods,fires,earthquakes,hurricanes,tornadoes,tsunamisorothernaturaldisasters;

• politicalunrest;

TableofContents

• labordifficulties,includingworkstoppagesorslowdowns;

• waterdamageorwatershortage;

• governmentordersandregulations;

• pandemicsandotherhealthandsafetyissues;and

• terrorism.

Ourmanufacturing,assemblyanddistributioncapacityisalsodependentontheperformanceofservicesbythirdparties,includingvendors,landlordsandtransportationproviders.Ifweencounterproblemswithourmanufacturing,assemblyanddistributionfacilities,ourabilitytomeetcustomerexpectations,manageinventory,completesalesandachieveobjectivesforoperatingefficienciescouldbeharmed,whichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.Wemaintainbusinessinterruptioninsurance,butitmaynotadequatelyprotectusfromtheadverseeffectsthatcouldresultfromsignificantdisruptionstoourmanufacturing,assemblyanddistributionfacilities,suchasthelong-termlossofcustomersoranerosionofourbrandimage.

Ourmanufacturing,assemblyanddistributionnetworksincludecomputerprocesses,softwareandautomatedequipmentthatmaybesubjecttoanumberofrisksrelatedtosecurityorcomputerviruses,theproperoperationofsoftwareandhardware,electronicorpowerinterruptionsorothersystemfailures.

Many of our raw materials or components of our products are provided by a sole or limited number of third-party suppliers and manufacturers.

Werelyonasoleorlimitednumberofthird-partysuppliersandmanufacturersformanyofourrawmaterialsandthecomponentsinourgolfballs,golfclubs,golfglovesandcertainofourotherproducts.Wealsousespecializedsourcesforcertainoftherawmaterialsusedtomakeourgolfglovesandotherproducts,andthesesourcesarelimitedtocertaingeographicallocations.Furthermore,manyofthesematerialsarecustomizedforusandsomeofourproductsrequirespeciallydevelopedmanufacturingtechniquesandprocesseswhichmakeitdifficulttoidentifyandutilizealternativesuppliersquickly.Ifweweretoexperienceanydelayorinterruptioninsuchsupplies,wemaynotbeabletofindadequatealternativesuppliersatareasonablecostorwithoutsignificantdisruptiontoourbusinesswhichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

A disruption in the operations of our suppliers could materially adversely affect our business, financial condition and results of operations.

Ourabilitytocontinuetoselectreliablesupplierswhoprovidetimelydeliveriesofqualitymaterialsandcomponentswillimpactoursuccessinmeetingcustomerdemandfortimelydeliveryofqualityproducts.Ifweexperiencesignificantlyincreaseddemand,orif,foranyreason,weneedtoreplaceanexistingmanufacturerorsupplier,therecanbenoassurancethatadditionalsuppliesofrawmaterialsoradditionalmanufacturingcapacitywillbeavailablewhenrequiredontermsthatareacceptabletous,oratall,orthatanynewsupplierormanufacturerwouldallocatesufficientcapacitytousinordertomeetourrequirements.Inaddition,shouldwedecidetotransitionexistingmanufacturingbetweenthird-partymanufacturersorshouldwedecidetotransitionexistingin-housemanufacturingtothird-partymanufacturers,theriskofsuchaproblemcouldincrease.Evenifweareabletoexpandexistingorfindnewmanufacturingsources,wemayencounterdelaysinproductionandaddedcostsasaresultofthetimeittakestotrainoursuppliersandmanufacturersinourmethods,productsandqualitycontrolstandards.Anymaterialdelays,interruptionorincreasedcostsinthesupplyofrawmaterialsorcomponentsofourproductscouldimpactourabilitytomeetcustomerdemandforourproductswhichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

TableofContents

Inaddition,therecanbenoassurancethatoursuppliersandmanufacturerswillcontinuetoproviderawmaterialsandcomponentsthatareconsistentwithourstandardsandthatcomplywithallapplicablelawsandregulations.Wehaveoccasionallyreceived,andmayinthefuturereceive,shipmentsofsuppliesorcomponentsthatfailtoconformtoourqualitycontrolstandards.Inthatevent,unlessweareabletoobtainreplacementsuppliesorcomponentsinatimelymanner,weriskthelossofsalesresultingfromtheinabilitytomanufactureourproductsandcouldincurrelatedincreasedadministrativeandshippingcosts,andtherealsocouldbeanegativeimpacttoourbrands,anyofwhichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

Whilewedonotcontroloursuppliersortheirlaborpractices,negativepublicityregardingthemanagementoffacilitiesby,productionmethodsoformaterialsusedbyanyofoursupplierscouldadverselyaffectourreputationwhichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperationsandmayforceustolocatealternativesuppliers.Inaddition,oursuppliersmaynotbewellcapitalizedandtheymaynotbeabletofulfilltheirobligationstousorgooutofbusiness.Furthermore,theabilityofthird-partysupplierstotimelydeliverrawmaterialsorcomponentsmaybeaffectedbyeventsbeyondtheircontrol,suchasworkstoppagesorslowdowns,transportationissues,orsignificantweatherandhealthconditions.

The cost of raw materials and components could affect our operating results.

Thematerialsandcomponentsusedbyus,oursuppliersandourmanufacturersinvolverawmaterials,includingpolybutadiene,urethaneandSurlynforthemanufacturingofourgolfballs,titaniumandsteelfortheassemblyofourgolfclubs,leatherandsyntheticfabricsforthemanufacturingofourgolfshoes,golfgloves,golfgearandgolfapparel,andresinandotherpetroleum-basedmaterialsforanumberofourproducts.Significantpricefluctuationsorshortagesinsuchrawmaterialsorcomponents,includingthecoststotransportsuchmaterialsorcomponentsofourproducts,theuncertaintyofcurrencyfluctuationsagainsttheU.S.dollar,increasesinlaborrates,and/ortheintroductionofnewandexpensiverawmaterials,couldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

Our operations are conducted worldwide and our results of operations are subject to currency transaction risk and currency translation risk that couldmaterially adversely affect our business, financial condition and results of operations.

FortheyearsendedDecember31,2013,2014and2015,48%,48%and46%,respectively,ofournetsalesweregeneratedoutsideoftheUnitedStatesbyournon-U.S.subsidiaries.SubstantiallyallofthesenetsalesgeneratedoutsideoftheUnitedStatesweregeneratedintheapplicablelocalcurrency,whichinclude,butarenotlimitedto,theJapaneseyen,theKoreanwon,theBritishpoundsterling,theeuroandtheCanadiandollar.Incontrast,substantiallyallofthepurchasesofinventory,rawmaterialsorcomponentsbyournon-U.S.subsidiariesaremadeinU.S.dollars.FortheyearendedDecember31,2015,approximately87%ofourcostofgoodssoldincurredbyournon-U.S.subsidiariesweredenominatedinU.S.dollars.Becauseournon-U.S.subsidiariesincursubstantiallyalloftheircostofgoodssoldincurrenciesthataredifferentfromthecurrenciesinwhichtheygeneratesubstantiallyalloftheirsales,weareexposedtotransactionriskattributabletofluctuationsinsuchexchangerates,whichcanimpactthegrossprofitofournon-U.S.subsidiaries.IftheU.S.dollarstrengthensagainsttheapplicablelocalcurrency,morelocalcurrencywillbeneededtopurchasethesameamountofcostofgoodssolddenominatedinU.S.dollars,whichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

Wehaveenteredandexpecttocontinuetoenterintovariousforeigncurrencyexchangecontractsinanefforttoprotectagainstadversechangesinforeignexchangeratesandattempttominimizeforeigncurrencytransactionrisk.Ourhedgingactivitiescanreduce,butwillnoteliminate,theeffectsofforeigncurrencytransactionriskonourfinancialresults.Theextenttowhichourhedgingactivities

TableofContents

mitigateforeigncurrencytransactionrisksvariesbaseduponmanyfactors,includingtheamountoftransactionsbeinghedged.Otherfactorsthatcouldaffecttheeffectivenessofourhedgingactivitiesincludeaccuracyofsalesforecasts,volatilityofcurrencymarkets,theavailabilityofhedginginstrumentsandlimitationsonthedurationofsuchhedginginstruments.Sincethehedgingactivitiesaredesignedtoreducevolatility,theynotonlyreducethenegativeimpactofastrongerU.S.dollarbutcouldalsoreducethepositiveimpactofaweakerU.S.dollar.Wearealsoexposedtocreditriskfromthecounterpartiestoourhedgingactivitiesandmarketconditionscouldcausesuchcounterpartiestoexperiencefinancialdifficultiesand,asaresult,oureffortstohedgetheseexposurescouldproveunsuccessfuland,furthermore,ourabilitytoengageinadditionalhedgingactivitiesmaydecreaseorbecomemorecostly.

BecauseourconsolidatedaccountsarereportedinU.S.dollars,wearealsoexposedtocurrencytranslationriskwhenwetranslatethefinancialresultsofourconsolidatednon-U.S.subsidiariesfromtheirlocalcurrencyintoU.S.dollars.FortheyearsendedDecember31,2013,2014and2015,48%,48%and46%,respectively,ofoursalesweredenominatedinforeigncurrencies.Inaddition,excludingexpensesrelatedtoourEARPlandiscussedbelow,fortheyearsendedDecember31,2013,2014and2015,32%,32%and30%,respectively,ofouroperatingexpensesweredenominatedinforeigncurrencies(whichamountsrepresentsubstantiallyalloftheoperatingexpensesincurredbyournon-U.S.subsidiaries).Fluctuationsinforeigncurrencyexchangeratesmaypositivelyornegativelyaffectourreportedfinancialresultsandcansignificantlyaffectperiod-over-periodcomparisons.Forexample,ourreportednetsalesinregionsoutsidetheUnitedStatesforthe2014and2015fiscalyearsandthesixmonthsendedJune30,2016werenegativelyaffectedbythetranslationofforeigncurrencysalesintoU.S.dollarsbasedon2014,2015and2016exchangerates,respectively.IfthistrendpersistsoriftheU.S.dollarfurtherstrengthensagainstthesecurrencies,itcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

We may not successfully manage the frequent introduction of new products that satisfy changing consumer preferences, quality and regulatory standards.

Thegolfequipmentandgolfwearindustriesaresubjecttoconstantlyandrapidlychangingconsumerdemandsbased,inlargepart,onperformancebenefits.Ourgolfballandgolfclubproductsgenerallyhavelaunchcyclesoftwoyears,andoursalesinaparticularyearareaffectedbywhenwelaunchsuchproducts.Wegenerallyintroducenewproductofferingsandstylesinourgolfwearandgearbusinesseseachyearandatdifferenttimesduringtheyear.Factorsdrivingtheseshortproductlaunchcyclesincludetherapidintroductionofcompetitiveproductsandconsumerdemandsforthelatesttechnology,styleorfashion.Inthismarketplace,asubstantialportionofourannualsalesaregeneratedeachyearbynewproducts.

Thesemarketplaceconditionsraiseanumberofissuesthatwemustsuccessfullymanage.Forexample,wemustproperlyanticipateconsumerpreferencesanddesignproductsthatmeetthosepreferences,whilealsocomplyingwithsignificantrestrictionsimposedbytheRulesofGolf(seefurtherdiscussionoftheRulesofGolfbelowunder"—ChangestotheRulesofGolfwithrespecttoequipmentcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations"),orournewproductswillnotachievesufficientmarketsuccesstocompensatefortheusualdeclineinsalesexperiencedbyproductsalreadyinthemarket.Second,ourR&Dandsupplychaingroupsfaceconstantpressurestodesign,develop,sourceandsupplynewproducts—manyofwhichincorporateneworotherwiseuntestedtechnology,suppliersorinputs—thatperformbetterthantheirpredecessorswhilemaintainingqualitycontrolandtheauthenticityofourbrands.Third,fornewproductstogenerateequivalentorgreatersalesthantheirpredecessors,theymusteithermaintainthesameorhighersaleslevelswiththesameorhigherpricing,orexceedtheperformanceoftheirpredecessorsinoneorbothofthoseareas.Fourth,therelativelyshortwindowofopportunityforlaunchingandsellingnewproductsrequiresgreatprecisioninforecastingdemandandassuringthatsuppliesarereadyanddeliveredduringthecriticalsellingperiods.Finally,therapidchangeoverin

TableofContents

productscreatesaneedtomonitorandmanagethecloseoutofolderproductsbothatretailandinourowninventory.Shouldwenotsuccessfullymanagethefrequentintroductionofnewproductsthatsatisfyconsumerdemand,itcouldadverselyaffectourbusiness,financialconditionandresultsofoperations.

We rely on technical innovation and high-quality products to compete in the market for our products.

Technicalinnovationandqualitycontrolinthedesignandmanufacturingprocessofourproductsisessentialtoourcommercialsuccess.R&Dplaysakeyroleintechnicalinnovation.Werelyuponexpertsinvariousfieldstodevelopandtestcuttingedgeperformanceproducts.Whilewestrivetoproduceproductsthathelptoenhanceperformanceandmaximizecomfort,ifwefailtointroducetechnicalinnovationinourproducts,consumerdemandforourproductscoulddecline,andifweexperienceproblemswiththequalityofourproducts,wemayincursubstantialexpensetoremedytheproblems,anyofwhichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

Changes to the Rules of Golf with respect to equipment could materially adversely affect our business, financial condition and results of operations.

Golf'smostregulatedcategoriesaregolfballsandgolfclubs.WeseektohaveournewgolfballandgolfclubproductsconformwiththeRulesofGolfpublishedbytheUnitedStatesGolfAssociation,ortheUSGAandTheRoyalandAncientGolfClubofSt.Andrews,orTheR&A,becausetheserulesaregenerallyfollowedbygolfers,bothprofessionalandamateur,withintheirrespectivejurisdictions.TheUSGApublishesrulesthataregenerallyfollowedintheUnitedStatesandMexico,andTheR&Apublishesrulesthataregenerallyfollowedinmostothercountriesthroughouttheworld.However,theRulesofGolfaspublishedbyTheR&AandtheUSGAarevirtuallythesameandareintendedtobesopursuanttoaJointStatementofPrinciplesissuedin2001.TheRulesofGolfsettheguidelinesandestablishlimitationsforthedesignandperformanceofallgolfballsandgolfclubs.

Manynewregulationsongolfballsandgolfclubshavebeenintroducedinthepast10to15years,whichwebelievewasoneofthemostactiveperiodsforgolfequipmentregulationinthehistoryofgolf.TheUSGAandR&Ahavehistoricallyregulatedthesize,weight,andinitialvelocityofgolfballs.Morerecently,theUSGAandR&Ahavespecificallyfocusedonregulatingtheoveralldistanceofagolfball.TheUSGAandR&Ahavealsofocusedongolfclubregulations,includinglimitingthesizeandspring-likeeffectofdriverfacesandclubheadmomentofinertia.Inthefuture,existingUSGAand/orR&Arulesmaybealteredinwaysthatadverselyaffectthesalesofourcurrentorfutureproducts.Ifachangeinruleswasadoptedandcausedoneormoreofourcurrentorfutureproductstobenonconforming,salesofsuchproductswouldbeimpactedandwemaynotbeabletoadaptourproductspromptlytosuchrulechange,whichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.Inaddition,changesintheRulesofGolfmayresultinanincreaseinthecostsofmaterialsthatwouldneedtobeusedtodevelopnewproductsaswellasanincreaseinthecoststodesignnewproductsthatconformtosuchrules.

Failure to adequately enforce and protect our intellectual property rights could materially adversely affect our business, financial condition and results ofoperations.

Weownnumerouspatents,trademarks,tradesecrets,copyrightsandotherintellectualpropertyandholdlicensestointellectualpropertyownedbyothers,whichintheaggregateareimportanttoourbusiness.Werelyonacombinationofpatent,trademark,copyrightandtradesecretlawsinourcoregeographicmarketsandotherjurisdictions,toprotecttheinnovations,brands,proprietarytradesecretsandknow-howrelatedtocertainaspectsofourbusiness.Certainofourintellectualpropertyrights,suchaspatents,aretime-limited,andthetechnologyunderlyingourpatentscanbeusedbyanythirdparty,includingcompetitors,oncetheapplicablepatenttermsexpire.

TableofContents

Weseektoprotectourconfidentialproprietaryinformation,inpart,byenteringintoconfidentialityandinventionassignmentagreementswithouremployees,consultants,contractors,suppliersandothers.Whiletheseagreementsaredesignedtoprotectourproprietaryinformation,wecannotbecertainthatsuchagreementshavebeenenteredintowithallrelevantparties,andwecannotbecertainthatourtradesecretsandotherconfidentialproprietaryinformationwillnotbedisclosedorthatcompetitorswillnototherwisegainaccesstoourtradesecretsorindependentlydevelopsubstantiallyequivalentinformationandtechniques.Wealsoseektopreservetheintegrityandconfidentialityofourproprietaryinformationbymaintainingphysicalsecurityofourpremisesandphysicalandelectronicsecurityofourinformationtechnologysystems,butitispossiblethatthesesecuritymeasurescouldbebreached.Ifweareunabletopreventdisclosuretothirdpartiesofourmaterialproprietaryandconfidentialknow-howandtradesecrets,ourabilitytoestablishormaintainacompetitiveadvantageinourmarketsmaybeadverselyaffected.

Weselectivelyandstrategicallypursuepatentandtrademarkprotectioninourcoregeographicmarkets,butourstrategyhasbeentonotperfectcertainpatentandtrademarkrightsinsomecountries.Forexample,wefocusprimarilyonsecuringpatentprotectioninthosecountrieswherethemajorityofourgolfballandgolfclubindustryproductiontakesplace.Accordingly,wemaynotbeabletopreventothers,includingcompetitors,frompracticingourpatentedinventions,includingbymanufacturingandsellingcompetingproducts,inthosecountrieswherewehavenotobtainedpatentprotection.Further,thelawsofsomeforeigncountriesdonotprotectproprietaryrightstothesameextentorinthesamemannerasthelawsoftheUnitedStates.Asaresult,wemayencountersignificantproblemsinprotecting,enforcinganddefendingourintellectualpropertyoutsideoftheUnitedStates.Insomeforeigncountries,whereintellectualpropertylawsorlawenforcementpracticesdonotprotectourintellectualpropertyrightsasfullyasintheUnitedStates,third-partymanufacturersmaybeabletomanufactureandsellimitationproductsanddiminishthevalueofourbrandsaswellasinfringeourrights,despiteoureffortstopreventsuchactivity.

Thegolfballandgolfclubindustries,inparticular,havebeencharacterizedbywidespreadimitationofpopularballandclubdesigns.Wehaveanactiveprogramofmonitoring,investigatingandenforcingourproprietaryrightsagainstcompaniesandindividualswhomarketormanufacturecounterfeitsand"knockoff"products.Weassertourrightsagainstinfringersofourpatents,trademarks,tradedressandcopyrights.However,theseeffortsmaybeexpensive,time-consuming,divertmanagement'sattention,andultimatelymaynotbesuccessfulinreducingsalesofgolfproductsbytheseinfringers.Thefailuretopreventorlimitsuchinfringersorimitatorscouldadverselyaffectourreputationandsales.Additionally,othergolfballandgolfclubmanufacturersmaybeabletoproducesuccessfulgolfballsorgolfclubswhichimitateourdesignswithoutinfringinganyofourpatents,trademarks,tradedressorcopyrights,whichcouldlimitourabilitytomaintainacompetitiveadvantageinourmarketplace.

Ifwefailtoobtainenforceablepatents,trademarksandtradesecrets,failtomaintainourexistingpatent,trademarkandtradesecretrights,orfailtopreventsubstantialunauthorizeduseofourpatent,trademarkandtradesecrets,weriskthelossofourintellectualpropertyrightsandcompetitiveadvantageswehavedeveloped,whichmayresultinlostsales.Accordingly,wedevotesubstantialresourcestotheestablishmentandprotectionofourtrademarks,patentsandtradesecretsorknow-how,andwecontinuouslyevaluatetheutilityofourexistingintellectualpropertyandthenewregistrationofadditionaltrademarksandpatents,asappropriate.However,wecannotguaranteethatwewillhaveadequateresourcestocontinuetoeffectivelyestablish,maintainandenforceourintellectualpropertyrights.Wealsocannotguaranteethatanyofourpendingapplicationswillbeapprovedbytheapplicablegovernmentalauthorities.Moreover,eveniftheapplicationswillberegisteredduringtheregistrationprocess,thirdpartiesmayseektooppose,limit,orotherwisechallengetheseapplicationsorregistrations.

TableofContents

We may be involved in lawsuits to protect, defend or enforce our intellectual property rights, which could be expensive, time consuming and unsuccessful.

Oursuccessdependsinpartonourabilitytoprotectourtrademarks,patentsandtradesecretsfromunauthorizedusebyothers.Tocounterinfringementorunauthorizeduse,wemayberequiredtofileinfringementormisappropriationclaims,whichcanbeexpensiveandtime-consumingandcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations,evenifsuccessful.Anyclaimsthatweassertagainstperceivedinfringerscouldalsoprovokethesepartiestoassertcounterclaimsagainstusallegingthatweinfringeormisappropriatetheirintellectualpropertyrightsorthatwehaveengagedinanti-competitiveconduct.Moreover,ourinvolvementinlitigationagainstthirdpartiesassertinginfringementofourintellectualpropertyrightspresentssomeriskthatourintellectualpropertyrightscouldbechallengedandinvalidated.Inaddition,inaninfringementproceeding,whetherinitiatedbyusoranotherparty,acourtmayrefusetostoptheotherpartyinsuchinfringementproceedingfromusingthetechnologyormarkatissueonthegroundsthatourpatentsdonotcoverthetechnologyinquestionormisuseourtradesecretsorknow-how.Anadverseresultinanylitigationordefenseproceedings,includingproceedingsatthepatentandtrademarkoffices,couldputoneormoreofourpatentsortrademarksatriskofbeinginvalidated,heldunenforceableorinterpretednarrowly,andcouldputanyofourpatentortrademarkapplicationsatriskofnotbeingissuedasaregisteredpatentortrademark,anyofwhichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

Furthermore,becauseofthesubstantialamountofdiscoveryrequiredinconnectionwithintellectualpropertylitigation,thereisariskthatsomeofourconfidentialproprietaryinformationcouldbecompromisedbydisclosureduringthistypeoflitigation.Inaddition,therecouldbepublicannouncementsoftheresultsofhearings,motionsorotherinterimproceedingsordevelopments.Ifsecuritiesanalystsorinvestorsperceivetheseresultstobenegative,itcouldmateriallyadverselyaffectthepriceofourcommonstock.

Our products may infringe the intellectual property rights of others, which may cause us to incur unexpected costs or prevent us from selling our products.

Fromtimetotime,thirdpartieshavechallengedourpatents,trademarkrightsandbrandingpractices,orassertedintellectualpropertyrightsthatrelatetoourproductsandproductfeatures.Wecannotassureyouthatouractionstakentoestablishandprotectourtechnologyandbrandswillbeadequatetopreventothersfromseekingtoblocksalesofourproductsortoobtainmonetarydamages,basedonallegedviolationoftheirpatents,trademarksorotherproprietaryrights.Wemayberequiredtodefendsuchclaimsinthefuture,which,whetherornotmeritorious,couldresultinsubstantialcostsanddiversionofresourcesandcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

Ifwearefoundtoinfringeathirdparty'sintellectualpropertyrights,wecouldbeforced,includingbycourtorder,toceasedeveloping,manufacturingorcommercializingtheinfringingproduct.Alternatively,wemayberequiredtoobtainalicensefromsuchathirdpartyinordertousetheinfringingtechnologyandcontinuedeveloping,manufacturingormarketingsuchtechnology.Insuchacase,licenseagreementsmayrequireustopayroyaltiesandotherfeesthatcouldbesignificant,orwemaynotbeabletoobtainanyrequiredlicenseoncommerciallyreasonabletermsoratall.Evenifwewereabletoobtainalicense,itcouldbenon-exclusive,therebygivingourcompetitorsaccesstothesametechnologieslicensedtous.Afindingofinfringementcouldpreventusfromcommercializingourproductsorforceustoceasesomeofourbusinessoperations,ortoredesignorrenamesomeofourproductstoavoidfutureinfringementliability.Inaddition,wecouldbefoundliableformonetarydamages,includingtrebledamagesandattorneys'feesifwearefoundtohavewillfullyinfringedapatent.Claimsthatwehavemisappropriatedtheconfidentialinformationortradesecretsofthirdpartiescouldalsomateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

TableofContents

Seealso"—Wemaybeinvolvedinlawsuitstoprotect,defendorenforceourintellectualpropertyrights,whichcouldbeexpensive,timeconsumingandunsuccessful."Anyoftheforegoingcouldcauseustoincursignificantcostsandpreventusfrommanufacturingorsellingcertainofourproducts.

Recent changes to U.S. patent laws and proposed changes to the rules of the U.S. Patent and Trademark Office could adversely affect our ability to protect ourintellectual property.

TheLeahy-SmithAmericaInventsAct,ortheLeahy-SmithAct,whichwasadoptedinSeptember2011,includesanumberofsignificantchangestotheU.S.patentlaws,suchas,amongotherthings,changingfroma"firsttoinvent"toa"firstinventortofile"system,establishingnewproceduresforchallengingpatentsandestablishingdifferentmethodsforinvalidatingpatents.TheU.S.PatentandTrademarkOfficehasrecentlyimplementedregulationsrelatingtothesechanges,andthecourtshaveyettoaddressmanyofthenewprovisionsoftheLeahy-SmithAct.Someofthesechangesorpotentialchangesmaynotbeadvantageoustous,anditmaybecomemoredifficulttoobtainadequatepatentprotectionortoenforceourpatentsagainstthirdparties.WhilewecannotpredicttheimpactoftheLeahy-SmithActatthistime,thesechangesorpotentialchangescouldincreasethecostsanduncertaintiessurroundingtheprosecutionofourpatentapplicationsandadverselyaffectourabilitytoprotectourintellectualpropertywhichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

We face intense competition in each of our markets and if we are unable to maintain a competitive advantage, loss of market share, sales or profitability mayresult.

Themarketsforgolfballs,clubs,gearandweararehighlycompetitiveandtheremaybelowbarrierstoentryinmanyofourmarkets.Pricingpressures,reducedprofitmarginsorlossofmarketshareorfailuretogrowinanyofourmarkets,duetocompetitionorotherwise,couldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

Wecompeteagainstlarge-scaleglobalsportsequipmentandapparelplayers,Japaneseindustrials,aswellasmorespecializedgolfequipmentandgolfwearplayers,includingCallaway,TaylorMade,Ping,Bridgestone,Nike,AdidasandUnderArmour.Manyofourcompetitorshavesignificantcompetitivestrengths,includinglongoperatinghistories,alargeandbroadconsumerbase,establishedrelationshipswithabroadsetofsuppliersandcustomers,anestablishedregionalorlocalpresence,strongbrandrecognitionandgreaterfinancial,R&D,marketing,distributionandotherresourcesthanwedo.Thereareuniqueaspectstothecompetitivedynamicineachofourproductcategoriesandmarkets.Wearenotthemarketleaderwithrespecttocertaincategoriesorincertainmarkets.

Golf Balls. Thegolfballbusinessishighlycompetitive.Thereareanumberofwell-establishedandwell-financedcompetitors.WeandourcompetitorscontinuetoincursignificantcostsintheareasofR&D,advertising,marketing,tourandotherpromotionalsupporttobecompetitive.

Golf Clubs. Thegolfclubmarketsinwhichwecompetearealsohighlycompetitiveandareservedbyanumberofwell-establishedandwell-financedcompanieswithrecognizedbrandnames.Newproductintroductions,pricereductions,consignmentsales,extendedpaymentterms,"closeouts,"includingcloseoutsofproductsthatwererecentlycommerciallysuccessful,andsignificanttourandadvertisingspendingbycompetitorscontinuetogenerateintensemarketcompetitionandcreatemarketdisruptions.Ourcompetitorsinthegolfclubmarkethaveinthepastandmaycontinuetointroducetheirproductsonanacceleratedcyclewhichcouldleadtomarketdisruptionandimpactsalesofourproducts.

Golf Gear. Thegolfgearmarketisfragmentedandservedbyanumberofwell-establishedandwell-financedcompetitorsaswellasanumberofsmallercompetitors.Wefacesignificantcompetitionineveryregionwithrespecttoeachofourgolfgearproductcategories.

TableofContents

Golf Wear. Inthegolfwearmarkets,wecompetewithanumberofwell-establishedandwell-financedcompanieswithrecognizedbrandnames.Thesecompetitorsmayhavealargeandbroadconsumerbase,establishedrelationshipswithabroadsetofsuppliersandcustomers,strongbrandrecognitionandsignificantfinancial,R&D,marketing,distributionandotherresourceswhichmayexceedourown.

Ourcompetitorsmaybeabletocreateandmaintainbrandawarenessandmarketsharemorequicklyandeffectivelythanwecan.Ourcompetitorsmayalsobeabletoincreasesalesinnewandexistingmarketsfasterthanwedobyemphasizingdifferentdistributionchannelsorthroughothermethods,andmanyofourcompetitorshavesubstantialresourcestodevotetowardsincreasingsales.Ifweareunabletogrowormaintainourcompetitivepositioninanyofourproductcategories,itcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

We may have limited opportunities for future growth in sales of golf balls, golf shoes and golf gloves.

Wealreadyhaveasignificantshareofworldwidesalesofgolfballs,golfshoesandgolfglovesandthegolfindustryisverycompetitive.Assuch,gainingincrementalmarketsharequicklyoratallmaybelimitedgiventhecompetitivenatureofthegolfindustryandotherchallengestothegolfindustry.Inthefuture,theoveralldollarvolumeofworldwidesalesofgolfequipment,wearandgearmaynotgrowormaydeclinewhichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

A severe or prolonged economic downturn could adversely affect our customers' financial condition, their levels of business activity and their ability to paytrade obligations.

Weprimarilysellourproductstogolfequipmentretailers,suchason-coursegolfshops,golfspecialtystoresandotherqualifiedretailers,directlyandtoforeigndistributors.Weperformongoingcreditevaluationsofourcustomers'financialconditionandgenerallyrequirenocollateralfromthesecustomers.However,asevereorprolongeddownturninthegeneraleconomycouldadverselyaffecttheretailgolfequipmentmarketwhichinturnwouldnegativelyimpacttheliquidityandcashflowsofourcustomers,includingtheabilityofsuchcustomerstoobtaincredittofinancepurchasesofourproductsandtopaytheirtradeobligations.Thiscouldresultinincreaseddelinquentoruncollectibleaccountsforourcustomersaswellasadecreaseinordersforourproductsbysuchcustomers.Afailurebyourcustomerstopayonatimelybasisasignificantportionofoutstandingaccountreceivablebalancesoradecreaseinordersfromsuchcustomerscouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

A decrease in corporate spending on our custom logo golf balls could materially adversely affect our business, financial condition and results of operations.

Customimprintedgolfballs,amajorityofwhicharepurchasedbycorporatecustomers,representedover25%ofourglobalnetgolfballsalesfortheyearendedDecember31,2015.Therehaslongbeenastrongconnectionbetweenthebusinesscommunityandgolfbutcorporatespendingoncustomlogoedballshasremainedatlowerlevelssincethefinancialcrisis.Ifsuchcorporatespendingdecreasesfurther,itcouldimpactthesalesofourcustomimprintedgolfballs.

We depend on retailers and distributors to market and sell our products, and our failure to maintain and further develop our sales channels could materiallyadversely affect our business, financial condition and results of operations.

Weprimarilysellourproductsthroughretailersanddistributorsanddependonthesethird-partiestomarketandsellourproductstoconsumers.Anychangestoourcurrentmixofretailersanddistributorscouldadverselyaffectoursalesandcouldnegativelyaffectbothourbrandimageandour

TableofContents

reputation.Oursalesdepend,inpart,onretailersadequatelydisplayingourproducts,includingprovidingattractivespaceandmerchandisedisplaysintheirstores,andtrainingtheirsalespersonneltosellourproducts.Ifourretailersanddistributorsarenotsuccessfulinsellingourproducts,oursaleswoulddecrease.Ourretailersfrequentlyofferproductsandservicesofourcompetitorsintheirstores.Inaddition,oursuccessingrowingourpresenceinexistingandexpandingintonewinternationalmarketswilldependonourabilitytoestablishrelationshipswithnewretailersanddistributors.Ifwedonotmaintainourrelationshipwithexistingretailersanddistributorsordeveloprelationshipswithnewretailersanddistributorsourabilitytosellourproductswouldbenegativelyimpacted.

Onaconsolidatedbasis,noonecustomerthatsellsordistributesourproductsaccountedformorethan10%ofourconsolidatednetsalesineachoftheyearsended2013,2014and2015.However,ourtoptencustomersaccountedfor21%,21%and22%ofourconsolidatednetsalesintheyearsendedDecember31,2013,2014and2015,respectively.Accordingly,thelossofasmallnumberofourlargecustomers,orthereductioninbusinesswithoneormoreofthesecustomers,couldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.Wedonotcurrentlyhaveminimumpurchaseagreementswiththeselargecustomers.

OnSeptember14,2016,GolfsmithInternationalHoldingsLP,aspecialtygolfretailerandoneofourlargestcustomersineachoftheyearsendedDecember31,2013,2014,2015andthesixmonthsendedJune30,2016,announcedthat(i)itsU.S.-basedbusiness,GolfsmithInternationalHoldings,Inc.,orGolfsmith,whichreportedlycurrentlyoperates109storesintheUnitedStates,commencedaChapter11caseunderTitle11oftheUnitedStatesCodeintheUnitedStatesBankruptcyCourtfortheDistrictofDelaware,ortheChapter11proceedings,and(ii)itsCanada-basedbusiness,GolfTownCanadaInc.,orGolfTown,whichreportedlycurrentlyoperates55storesinCanada,commencedcreditorprotectionproceedingsundertheCompanies'CreditorsArrangementActintheOntarioSuperiorCourtofJustice(CommercialList).

InconnectionwiththeChapter11proceedings,Golfsmith(i)enteredintoasupportagreementwithcertainofitssecuredcreditorswithrespecttoarecapitalizationandrestructuringtransaction,(ii)announcedthatitwouldundertakeanoperationalrestructuringthatwillresultintheclosingofcertainunderperformingstoresandthesaleofexcessinventory,(iii)reachedagreementwithitssecuredlenderstoacquiretheequityownershipofGolfsmithand(iv)announcedthatitwillexplorethepotentialforanalternativesaletransaction.OnOctober6,2016,theUnitedStatesBankruptcyCourtapprovedcertainproceduresaswellasaschedulefortheproposedalternativesale,whichproceduresprovidefor(i)anauctionofGolfsmithtotakeplaceonOctober19,2016and(ii)ahearingbytheUnitedStatesBankruptcyCourtonOctober31,2016,toconsiderapprovalofagoingconcernsaletransactionintheeventthatisthesuccessfulbidattheauctionoronOctober24,2016toconsiderapprovalofanalternativesaletransactionifthereisnosuccessfulbidforagoingconcernsaletransaction.TheseprocedureswereapprovedbytheUnitedStatesBankruptcyCourtonSeptember15,2016,althoughitispossiblethatsomeoralloftheabovedeadlinesmaybesubjecttochange.

GolfsmithInternationalHoldingsLPalsoannouncedthat,inadditiontocommencingcreditorprotectionproceedingsinCanada,ithasenteredintoadefinitiveassetpurchaseagreementforthesaleofitsGolfTownbusinesstoanentitytobecontrolledbyapurchasergroupledbyFairfaxFinancialHoldingsLimitedandcertaininvestmentfundsmanagedbySignatureGlobalAssetManagement,adivisionofCIInvestmentsInc.,whichsaleisexpectedtocloseonOctober31,2016.

Wegrantcredit,generallywithoutcollateral,toourretailersanddistributors,includingGolfsmith.Asaresultoftheseproceedings,anyreceivableswehaveoutstandingwithGolfsmithInternationalHoldingsLP,whichtotaled$7.2millionasofthedateofthefilings,maybecompromised.Inaddition,wemaybethesubjectofavoidanceactionswithrespecttopaymentsreceivedfromGolfsmithInternationalHoldingsLPwithinastatutoryperiodpriortothebankruptcypetitiondate.Nosuch

TableofContents

avoidanceactionhasbeenfiledtodate,andmayneverbefiled.Wewouldvigorouslydefendanysuchavoidanceactions,althoughtheoutcomeofanysuchactionswouldbeuncertain.

WecannotpredictthetimingortheoutcomeoftheGolfsmithInternationalHoldingsLPproceedingsdiscussedabove.TheseproceedingsandthetermsofanyacquisitionoralternativesaleofGolfsmithmayresultintheclosureofasignificantnumberofGolfsmith'sstoresandafailuretocompletesuchsalemayresultintheclosureandliquidationofallofGolfsmith.ItisexpectedthatcertainGolfTownstoreswillalsobeclosedinconnectionwiththeproposedsaleofGolfTown.Wecannotpredicttheimpactthattheforegoingwillhaveonusorthegolfindustryingeneral,andthesemattersmaymateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations,particularlyduringthefourthquarterof2016andcalendaryear2017.

Consolidation of retailers or concentration of retail market share among a few retailers may increase and concentrate our credit risk, put pressure on ourmargins and impair our ability to sell products.

Thesportinggoodsandoff-coursegolfequipmentretailmarketsinsomecountries,includingtheUnitedStates,aredominatedbyafewlargeretailers.Certainoftheseretailershaveinthepastincreasedtheirmarketshareandmaycontinuetodosointhefuturebyexpandingthroughacquisitionsandconstructionofadditionalstores.Industryconsolidationandcorrectionhasoccurredinrecentyearsandadditionalconsolidationandcorrectionispossible.Thesesituationsmayresultinaconcentrationofourcreditriskwithrespecttooursalestosuchretailers,and,ifanyoftheseretailersweretoexperienceashortageofliquidityorotherfinancialdifficulties,orfileforbankruptcyorreceivershipprotection,itwouldincreasetheriskthattheiroutstandingpayablestousmaynotbepaid.Thisconsolidationmayalsoresultinlargerretailersgainingincreasedleveragewhichmayimpactourmargins.Inaddition,increasingmarketshareconcentrationamongoneorafewretailersinaparticularcountryorregionincreasestheriskthatifanyoneofthemsubstantiallyreducestheirpurchasesofourproducts,wemaybeunabletofindasufficientnumberofotherretailoutletsforourproductstosustainthesamelevelofsales.Anyreductioninsalesbyourretailerscouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

Our business depends on strong brands, and if we are not able to maintain and enhance our brands we may be unable to sell our products.

Ourbrandshaveworldwiderecognitionandoursuccessdependsonourabilitytomaintainandenhanceourbrandimageandreputation.Inparticular,webelievethatmaintainingandenhancingtheTitleistandFootJoybrandsiscriticaltomaintainingandexpandingourcustomerbase.Maintaining,promotingandenhancingourbrandsmayrequireustomakesubstantialinvestmentsinareassuchasproductinnovation,productquality,intellectualpropertyprotection,marketingandemployeetraining,andtheseinvestmentsmaynothavethedesiredimpactonourbrandimageandreputation.Ourbusinesscouldbeadverselyimpactedifwefailtoachieveanyoftheseobjectivesorifthereputationorimageofanyofourbrandsistarnishedorreceivesnegativepublicity.Inaddition,adversepublicityaboutregulatoryorlegalactionagainstuscoulddamageourreputationandbrandimage,undermineconsumerconfidenceinusandreducelong-termdemandforourproducts,eveniftheregulatoryorlegalactionisunfoundedornotmaterialtoouroperations.Also,asweseektogrowourpresenceinexisting,andexpandintonew,geographicorproductmarkets,consumersinthesemarketsmaynotacceptourbrandimageandmaynotbewillingtopayapremiumtopurchaseourproductsascomparedtootherbrands.Weanticipatethatasourbusinesscontinuestogrowourpresenceinexistingandexpandintonewmarkets,maintainingandenhancingourbrandsmaybecomeincreasinglydifficultandexpensive.Ifweareunabletomaintainorenhancetheimageofourbrands,itcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

TableofContents

Our business and results of operations are subject to seasonal fluctuations, which could result in fluctuations in our operating results and stock price.

Ourbusinessissubjecttoseasonalfluctuationsbecausegolfisplayedprimarilyonaseasonalbasisinmostoftheregionswherewedobusiness.Ingeneral,duringthefirstquarter,webeginsellingourproductsintothegolfretailchannelforthenewgolfseason.Thisinitialsell-ingenerallycontinuesintothesecondquarter.Oursecond-quartersalesaresignificantlyaffectedbytheamountofsell-through,inparticulartheamountofhighervaluediscretionarypurchasesmadebycustomers,whichdrivesthelevelofreordersofourproductssold-induringthefirstquarter.Ourthird-quartersalesaregenerallydependentonreorderbusiness,andaregenerallylessthanthesecondquarterasmanyretailersbegindecreasingtheirinventorylevelsinanticipationoftheendofthegolfseason.Ourfourth-quartersalesaregenerallylessthantheotherquartersduetotheendofthegolfseasoninmanyofourkeymarkets,butcanalsobeaffectedbykeyproductlaunches,particularlygolfclubs.Accordingly,ourresultsofoperationsarelikelytofluctuatesignificantlyfromperiodtoperiod.Thisseasonalityaffectssalesineachofourreportablesegmentsdifferently.Ingeneral,however,becauseofthisseasonality,amajorityofoursalesandmostofourprofitabilitygenerallyoccursduringthefirsthalfoftheyear.Resultsofoperationsinanyperiodshouldnotbeconsideredindicativeoftheresultstobeexpectedforanyfutureperiod.Theseasonalityofourbusinesscouldbeexacerbatedbytheadverseeffectsofunusualorsevereweatherconditionsaswellasbysevereweatherconditionscausedorexacerbatedbyclimatechange.

Our business and results of operations are also subject to fluctuations based on the timing of new product introductions.

Oursalescanalsobeaffectedbythelaunchtimingofnewproducts.Productintroductionsgenerallystimulatesalesasthegolfretailchanneltakesoninventoryofnewproducts.Reordersofthesenewproductsthendependontherateofsell-through.Announcementsofnewproductscanoftencauseourcustomerstodeferpurchasingadditionalgolfequipmentuntilournewproductsareavailable.Ourvaryingproductintroductioncycles,whicharedescribedunder"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—KeyFactorsAffectingOurResultsofOperations—Cyclicality,"maycauseourresultsofoperationstofluctuateaseachproductlinehasdifferentvolumes,pricesandmargins.

We have significant international operations and are exposed to risks associated with doing business globally.

WesellanddistributeourproductsdirectlyinmanykeyinternationalmarketsinEurope,Asia,NorthAmericaandelsewherearoundtheworld.Theseactivitieshaveresultedandwillcontinuetoresultininvestmentsininventory,accountsreceivable,employees,corporateinfrastructureandfacilities.Inaddition,intheUnitedStatestherearealimitednumberofsuppliersofcertainrawmaterialsandcomponentsforourproductsaswellasfinishedgoodsthatwesell,andwehaveincreasinglybecomemorereliantonsuppliersandvendorslocatedoutsideoftheUnitedStates.Theoperationofforeigndistributioninourinternationalmarkets,aswellasthemanagementofrelationshipswithinternationalsuppliersandvendors,willcontinuetorequirethededicationofmanagementandotherresources.WealsomanufacturecertainofourproductsoutsideoftheUnitedStates,includingsomeofourgolfballsandsubstantiallyallofourgolfglovesinThailandandsubstantiallyallofourgolfshoesthroughourjointventureinChina.

Asaresultofthisinternationalbusiness,weareexposedtoincreasedrisksinherentinconductingbusinessoutsideoftheUnitedStates.Inadditiontoforeigncurrencyrisksdiscussedaboveunder"—Ouroperationsareconductedworldwideandourresultsofoperationsaresubjecttocurrency

TableofContents

transactionriskandcurrencytranslationriskthatcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations,"theserisksinclude:

• increaseddifficultyinprotectingourintellectualpropertyrightsandtradesecrets;

• unexpectedgovernmentactionorchangesinlegalorregulatoryrequirements;

• social,economicorpoliticalinstability;

• theeffectsofanyanti-Americansentimentsonourbrandsorsalesofourproducts;

• increaseddifficultyinensuringcompliancebyemployees,agentsandcontractorswithourpoliciesaswellaswiththelawsofmultiplejurisdictions,includingbutnotlimitedtotheU.S.ForeignCorruptPracticesAct,ortheFCPA,andsimilaranti-briberyandanti-corruptionlaws,localandinternationalenvironmental,healthandsafetylaws,andincreasinglycomplexregulationsrelatingtotheconductofinternationalcommerce;

• increaseddifficultyincontrollingandmonitoringforeignoperationsfromtheUnitedStates,includingincreaseddifficultyinidentifyingandrecruitingqualifiedpersonnelforitsforeignoperations;and

• increasedexposuretointerruptionsinaircarrierorshipservices.

Anyviolationofourpoliciesoranyapplicablelawsandregulationsbyoursuppliersormanufacturerscouldinterruptorotherwisedisruptoursourcing,adverselyaffectourreputationordamageourbrandimage.Whilewedonotcontrolthesesuppliersormanufacturersortheirlaborpractices,negativepublicityregardingthemanagementoffacilitiesby,productionmethodsoformaterialsusedbyanyofoursuppliersormanufacturerscouldadverselyaffectourreputationandsalesandforceustolocatealternativesuppliersormanufacturingsources,whichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

Failure to comply with laws, regulations and policies, including the FCPA or other applicable anti-corruption legislation, could result in fines, criminalpenalties and materially adversely affect our business, financial condition and results of operations.

AsignificantriskresultingfromourglobaloperationsiscompliancewithawidevarietyofU.S.federalandstateandnon-U.S.laws,regulationsandpolicies,includinglawsrelatedtoanti-corruption,exportandimportcompliance,anti-trustandmoneylaundering.TheFCPA,theU.K.BriberyActof2010andsimilaranti-briberylawsinotherjurisdictionsgenerallyprohibitcompaniesandtheirintermediariesfrommakingimproperpaymentstogovernmentofficialsorotherpersons.Therehasbeenanincreaseinanti-briberylawenforcementactivityinrecentyears,withmorefrequentandaggressiveinvestigationsandenforcementproceedingsbyboththeU.S.DepartmentofJusticeandtheSEC,increasedenforcementactivitybynon-U.S.regulators,andincreasesincriminalandcivilproceedingsbroughtagainstcompaniesandindividuals.Weoperateinpartsoftheworldthatarerecognizedashavinggovernmentalandcommercialcorruptionandincertaincircumstances,strictcompliancewithanti-briberylawsmayconflictwithlocalcustomsandpractices.Wecannotassureyouthatourinternalcontrolpoliciesandprocedureshaveprotectedorwillalwaysprotectusfromimproperconductofouremployeesorbusinesspartners.Totheextentthatwelearnthatanyofouremployeesdonotadheretoourinternalcontrolpolicies,wearecommittedtotakingappropriateremedialaction.Intheeventthatwebelieveorhavereasontobelievethatouremployeesoragentshaveormayhaveviolatedapplicablelaws,includinganti-corruptionlaws,wemayberequiredtoinvestigateorhaveoutsidecounselinvestigatetherelevantfactsandcircumstances,anddetecting,investigatingandresolvingactualorallegedviolationscanbeexpensiveandrequiresignificanttimeandattentionfromseniormanagement.AnyviolationofU.S.federalandstateandnon-U.S.laws,regulationsandpoliciescouldresultinsubstantialfines,sanctions,civiland/orcriminalpenalties,and

TableofContents

curtailmentofoperationsintheU.S.orotherapplicablejurisdictions.Inaddition,actualorallegedviolationscoulddamageourreputationandabilitytodobusiness.Anyoftheforegoingcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

Our business, financial condition and results of operations could be materially adversely affected if professional golfers do not endorse or use our products.

Weestablishrelationshipswithprofessionalgolfersinordertouse,validateandpromoteTitleistandFootJoybrandedproducts.Wehaveenteredintoendorsementarrangementswithmembersofthevariousprofessionaltours,includingthePGATour,theChampionsTour,theLPGATour,theEuropeanPGATour,theJapanTourandtheKoreanTour.Webelievethatprofessionalusageofourproductsvalidatestheperformanceandqualityofourproductsandcontributestoretailsales.Wethereforespendasignificantamountofmoneytosecureprofessionalusageofourproducts.Manyothercompanies,however,alsoaggressivelyseekthepatronageoftheseprofessionalsandoffermanyinducements,includingsignificantcashincentivesandspeciallydesignedproducts.Thereisagreatdealofcompetitiontosecuretherepresentationoftourprofessionals.Asaresult,itisexpensivetoattractandretainsuchtourprofessionalsandwemaylosetheendorsementoftheseindividuals,evenpriortotheexpirationoftheapplicablecontractterm.Theinducementsofferedbyothercompaniescouldresultinadecreaseinusageofourproductsbyprofessionalgolfersorlimitourabilitytoattractothertourprofessionals.Adeclineinthelevelofprofessionalusageofourproducts,orasignificantincreaseinthecosttoattractorretainendorsers,couldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

The value of our brands and sales of our products could be diminished if we, the golfers who use our products or the golf industry in general are associatedwith negative publicity.

Wesponsoravarietyofgolfersandfeaturethosegolfersinouradvertisingandmarketingmaterials.Weestablishtheserelationshipstodevelop,evaluateandpromoteourproducts,aswellasestablishproductauthenticitywithconsumers.Actionstakenbygolfersortoursassociatedwithourproductsthatharmthereputationsofthosegolferscouldalsoharmourbrandimageandimpactoursales.Wemayalsoselectgolferswhomaynotperformatexpectedlevelsorwhoarenotsufficientlymarketable.Ifweareunableinthefuturetosecureprominentgolfersandarrangegolferendorsementsofourproductsontermswedeemtobereasonable,wemayberequiredtomodifyourmarketingplatformandtorelymoreheavilyonotherformsofmarketingandpromotion,whichmaynotprovetobeaseffectiveormayresultinadditionalcosts.

If we inaccurately forecast demand for our products, we may manufacture insufficient quantities, which could materially adversely affect our business,financial condition and results of operations.

Toreducepurchasingcostsandensuresupply,weplaceorderswithoursuppliersinadvanceofthetimeperiodweexpecttodeliverourproducts.Inaddition,weplanourmanufacturingcapacitybasedupontheforecasteddemandforourproducts.ForecastingthedemandforourproductsisverydifficultgiventhenumberofSKUsweofferandtheamountofspecificationinvolvedineachofourproductcategories.Forexample,inourgolfshoebusiness,weofferalargevarietyofmodelsaswellasdifferentstylesandsizesforeachmodel,includingover2,400SKUsavailableformenintheUnitedStatesalone.Thenatureofourbusinessmakesitdifficulttoadjustquicklyourmanufacturingcapacityifactualdemandforourproductsexceedsorislessthanforecasteddemand.Factorsthatcouldaffectourabilitytoaccuratelyforecastdemandforourproductsinclude,amongothers:

• changesinconsumerdemandforourproductsortheproductsofourcompetitors;

• newproductintroductionsbyusorourcompetitors;

• failuretoaccuratelyforecastconsumeracceptanceofourproducts;

TableofContents

• failuretoanticipateconsumeracceptanceofnewtechnologies;

• inabilitytorealizerevenuesfrombookingorders;

• negativepublicityassociatedwithtoursorgolfersweendorse;

• unanticipatedchangesingeneralmarketconditionsorotherfactors,whichmayresultincancellationsofadvanceordersorareductionorincreaseintherateofreordersplacedbyretailers;

• weakeningofeconomicconditionsorconsumerconfidenceinfutureeconomicconditions,whichcouldreducedemandfordiscretionaryitems,suchasourproducts;

• terrorismoractsofwar,orthethreatthereof,whichcouldadverselyaffectconsumerconfidenceandspendingorinterruptproductionanddistributionofproductsandrawmaterials;

• abnormalweatherpatternorextremeweatherconditionsincludinghurricanes,floodsanddroughts,amongothers,whichmaydisrupteconomicactivity;and

• generaleconomicconditions.

Ifactualdemandforourproductsexceedstheforecasteddemand,wemaynotbeabletoproducesufficientquantitiesofnewproductsintimetofulfillactualdemand,whichcouldlimitoursales.

Anyinventorylevelsinexcessofconsumerdemandmayresultininventorywrite-downsand/orthesaleofexcessinventoryatdiscountedprices.

We may experience a disruption in the service, or a significant increase in the cost, of our primary delivery and shipping services for our products andcomponent parts or a significant disruption at shipping ports.

WeuseFedExCorporation,orFedEx,forsubstantiallyallgroundshipmentsofproductstoourU.S.customers.Weuseoceanshippingservicesandaircarriersformostofourinternationalshipmentsofproducts.Furthermore,manyofthecomponentsweusetomanufactureandassembleourproductsareshippedtousviaoceanshippingandaircarrier.Ifthereisanysignificantinterruptioninservicebysuchprovidersoratshippingportsorairports,wemaybeunabletoengagealternativesuppliersortoreceiveorshipgoodsthroughalternatesitesinordertodeliverourproductsorcomponentsinatimelyandcost-efficientmanner.Asaresult,wecouldexperiencemanufacturingdelays,increasedmanufacturingandshippingcosts,andlostsalesasaresultofmisseddeliverydeadlinesandproductintroductionanddemandcycles.AnysignificantinterruptioninFedExservices,shipservices,atshippingportsoraircarrierservicescouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.Furthermore,ifthecostofdeliveryorshippingservicesweretoincreasesignificantlyandtheadditionalcostscouldnotbecoveredbyproductpricingitcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

We rely on complex information systems for management of our manufacturing, distribution, sales and other functions. If our information systems fail toperform these functions adequately or if we experience an interruption in our operation, including a breach in cyber security, our business, financial conditionand results of operations could be materially adversely affected.

Allofourmajoroperations,includingmanufacturing,distribution,salesandaccounting,aredependentuponourcomplexinformationsystems.Ourinformationsystemsarevulnerabletodamageorinterruptionfrom:

• earthquake,fire,flood,hurricaneandothernaturaldisasters;

• powerloss,computersystemsfailure,Internetandtelecommunicationsordatanetworkfailure;and

• hackers,computerviruses,unauthorizedaccess,softwarebugsorglitches.

TableofContents

Anydamageorsignificantdisruptionintheoperationofsuchsystemsorthefailureofourinformationsystemstoperformasexpectedwoulddisruptourbusiness,whichmayresultindecreasedsales,increasedoverheadcosts,excessinventoryorproductshortageswhichcouldmateriallyadverselyeffectourbusiness,financialconditionandresultsofoperations.

Cybersecurity risks could disrupt our operations and negatively impact our reputation.

ThereisgrowingconcernoverthesecurityofpersonalandcorporateinformationtransmittedovertheInternet,consumeridentitytheftanduserprivacyduetoincreasinglydiverseandsophisticatedthreatstonetwork,systemsanddatasecurity.Whilewehaveimplementedsecuritymeasures,ourcomputersystemsmaybesusceptibletoelectronicorphysicalcomputerbreak-ins,virusesandotherdisruptionsandsecuritybreaches.Anyperceivedoractualunauthorizedorinadvertentdisclosureofpersonally-identifiableinformationregardingvisitorstoourwebsitesorotherwiseorotherbreachortheftoftheinformationwecontrol,whetherthroughabreachofournetworkbyanunauthorizedparty,employeetheft,misuseorerrororotherwise,couldharmourreputation,impairourabilitytoattractwebsitevisitors,orsubjectustoclaimsorlitigationandrequireustorepairdamagessufferedbyconsumers,andmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

If the technology-based systems that give consumers the ability to shop with us online do not function effectively, our ability to grow our eCommerce businessglobally could be adversely affected.

Weareincreasinglyusingwebsitesandsocialmediatointeractwithconsumersandasameanstoenhancetheirexperiencewithourproducts,includingthroughVokey.comandScottyCameron.com.Inaddition,welaunchedourFootJoyeCommerceinitiativeinthefirstquarterof2016.InoureCommerceservices,weprocess,storeandtransmitcustomerdata.Wealsocollectconsumerdatathroughcertainmarketingactivities.Failuretopreventormitigatedatalossorothersecuritybreaches,includingbreachesofourvendors'technologyandsystems,couldexposeusorconsumerstoariskoflossormisuseofsuchinformation,resultinlitigationorpotentialliabilityforusandotherwisemateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.Further,oureCommercebusinessissubjecttogeneralbusinessregulationsandlaws,aswellasregulationsandlawsspecificallygoverningtheInternet,eCommerceandelectronicdevices.Existingandfuturelawsandregulations,ornewinterpretationsoftheselaws,mayadverselyaffectourabilitytoconductoureCommercebusiness.

Anyfailureonourparttoprovideprivate,secure,attractive,effective,reliable,user-friendlyeCommerceplatformsthatofferawideassortmentofmerchandisewithrapiddeliveryoptionsandthatcontinuallymeetthechangingexpectationsofonlineshopperscouldplaceusatacompetitivedisadvantage,resultinthelossofeCommerceandothersales,harmourreputationwithconsumers,haveanadverseimpactonthegrowthofoureCommercebusinessgloballyandcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

RisksspecifictooureCommercebusinessalsoincludediversionofsalesfromourtradepartners'brickandmortarstores,difficultyinrecreatingthein-storeexperiencethroughdirectchannelsandliabilityforonlinecontent.OurfailuretosuccessfullyrespondtotheserisksmightadverselyaffectsalesinoureCommercebusiness,aswellasdamageourreputationandbrands.

TableofContents

Our business could be harmed by the occurrence of natural disasters or pandemic diseases.

Theoccurrenceofanaturaldisaster,suchasanearthquake,tsunami,fire,floodorhurricane,ortheoutbreakofapandemicdisease,couldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.Anaturaldisasterorapandemicdiseasecouldadverselyaffectboththedemandforourproductsaswellasthesupplyoftherawmaterialsorcomponentsusedtomakeourproducts.Demandforgolfproductsalsocouldbenegativelyaffectedasconsumersintheaffectedregionsrestricttheirrecreationalactivitiesanddiscretionaryspendingandastourismtothoseareasdeclines.Ifoursuppliersexperienceasignificantdisruptionintheirbusinessasaresultofanaturaldisasterorpandemicdisease,ourabilitytoobtainthenecessaryrawmaterialsorcomponentstomakeproductscouldbemateriallyadverselyaffected.Inaddition,theoccurrenceofanaturaldisasterortheoutbreakofapandemicdiseasegenerallyrestrictstraveltoandfromtheaffectedareas,makingitmoredifficultingeneraltomanageourglobaloperations.

Goodwill and identifiable intangible assets represent a significant portion of our total assets and any impairment of these assets could negatively impact ourresults of operations and shareholders' equity.

Ourgoodwillandidentifiableintangibleassets,whichconsistofgoodwillfromacquisitions,trademarks,patents,completedtechnology,customerrelationships,licensingfees,andotherintangibleassets,represented38.6%ofourtotalassetsasofDecember31,2015.

Accountingrulesrequiretheevaluationofourgoodwillandintangibleassetswithindefinitelivesforimpairmentatleastannuallyorwhenevereventsorchangesincircumstancesindicatethatthecarryingvalueofsuchassetsmaynotberecoverable.Suchindicatorsincludeasignificantadversechangeincustomerdemandorbusinessclimatethatcouldaffectthevalueofanasset;generaleconomicconditions,suchasincreasingTreasuryratesorunexpectedchangesingrossdomesticproductgrowth;achangeinourmarketshares;budget-to-actualperformanceandconsistencyofoperationsmarginsandcapitalexpenditures;aproductrecalloranadverseactionorassessmentbyaregulator;orchangesinmanagementorkeypersonnel.

Totestgoodwillforimpairment,weperformatwo-steptest.Thefirststepisacomparisonofeachreportingunit'sfairvaluetoitscarryingvalue.Weestimatethereportingunit'sfairvaluebyestimatingthefuturecashflowsofthereportingunitstowhichthegoodwillrelates,andthendiscountthefuturecashflowsatamarket-participant-derivedweightedaveragecostofcapital.Theestimatesoffairvalueofreportingunitsarebasedonthebestinformationavailableasofthedateoftheassessment.Ifthecarryingvalueofareportingunitexceedsitsestimatedfairvalueinthefirststep,asecondstepisperformed,whichrequiresustoallocatethefairvalueofthereportingunitderivedinthefirststeptothefairvalueofthereportingunit'snetassets,withanyfairvalueinexcessofamountsallocatedtosuchnetassetsrepresentingtheimpliedfairvalueofgoodwillforthatreportingunit.Iftheimpliedfairvalueofthegoodwillislessthanthebookvalue,goodwillisimpairedandiswrittendowntotheimpliedfairvalueamount.

Totestourotherindefinite-livedassetsforimpairment,whichconsistofourtradenames,wedeterminethefairvalueofourtradenamesusingtherelief-from-royaltymethod,whichestimatesthepresentvalueofroyaltyincomethatcouldbehypotheticallyearnedbylicensingthebrandnametoathirdpartyovertheremainingusefullife.Ifinconductinganimpairmentevaluationwedeterminethatthecarryingvalueofanassetexceededitsfairvalue,wewouldberequiredtorecordanon-cashimpairmentchargeforthedifferencebetweenthecarryingvalueandthefairvalueoftheasset.Ifasignificantamountofourgoodwillandidentifiableintangibleassetsweredeemedtobeimpaired,ourbusiness,financialconditionandresultsofoperationscouldbemateriallyadverselyaffected.

TableofContents

Our current senior management team and other key employees are critical to our success and if we are unable to attract and/or retain key employees and hirequalified management, technical and manufacturing personnel, our ability to compete could be harmed.

Ourabilitytomaintainourcompetitivepositionisdependenttoalargedegreeontheeffortsandskillsofourseniormanagementteam,whichaveragesover20yearswithus,andourotherkeyemployees.Ourexecutivesareexperiencedandhighlyqualifiedwithstrongreputationsandrelationshipsinthegolfindustry,andwebelievethatourmanagementteamenablesustopursueourstrategicgoals.Ourotherkeysales,marketing,R&D,manufacturing,intellectualpropertyprotectionandsupportpersonnelarealsocriticaltothesuccessofourbusiness.Thelossoftheservicesofanyofourseniormanagementteamorotherkeyemployeescoulddisruptouroperationsanddelaythedevelopmentandintroductionofourproductswhichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.Wedonothaveemploymentagreementswithanyofthemembersofourseniormanagementteam.Inaddition,wedonothave"keyperson"lifeinsurancepoliciescoveringanyofourofficersorotherkeyemployees.

OurformerPresidentofTitleistGolfBallsretiredeffectiveFebruary29,2016.ThisrolehasbeenassumedbyanewPresidentofTitleistGolfBallswhohasworkedatAcushnetCompanysince1987.OurformerPresidentofTitleistGolfClubsretiredeffectiveApril30,2016.ThisrolehasbeenassumedbyanewPresidentofTitleistGolfClubswhohasworkedatAcushnetCompanysince1993.OurformerPresidentofFootJoyisexpectedtoretireeffectiveasofDecember31,2016.ThisrolewasassumedbyanewPresidentofFootJoybeginningonAugust1,2016.See"Management."

Ourfuturesuccessdependsuponourabilitytoattractandretainourexecutiveofficersandotherkeysales,marketing,R&D,manufacturing,intellectualpropertyprotectionandsupportpersonnelandanyfailuretodosocouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

Additionally,wecompetewithmanymatureandprosperouscompaniesthathavefargreaterfinancialresourcesthanwedoandthuscanoffercurrentorperspectiveemployeesmorelucrativecompensationpackagesthanwecan.

Sales of our products by unauthorized retailers or distributors could adversely affect our authorized distribution channels and harm our reputation.

Someofourproductsfindtheirwaytounauthorizedoutletsordistributionchannels.This"graymarket"forourproductscanundermineauthorizedretailersandforeignwholesaledistributorswhopromoteandsupportourproducts,andcaninjuretheimageofourcompanyinthemindsofourcustomersandconsumers.Whilewehavetakensomelawfulstepstolimitcommerceofourproductsinthe"graymarket"inboththeUnitedStatesandabroad,wehavenotbeensuccessfulinhaltingsuchcommerce.

International political instability and terrorist activities may decrease demand for our products and disrupt our business.

TerroristactivitiesandarmedconflictscouldhaveanadverseeffectupontheUnitedStatesorworldwideeconomyandcouldcausedecreaseddemandforourproducts.Ifsucheventsdisruptdomesticorinternationalair,groundorseashipments,ortheoperationofoursuppliersorourmanufacturingfacilities,ourabilitytoobtainthematerialsnecessarytomanufactureproductsandtodelivercustomerorderswouldbeharmed,whichcouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.Sucheventscannegativelyimpacttourism,whichcouldadverselyaffectoursalestoretailersatresortsandothervacationdestinations.Inaddition,theoccurrenceofpoliticalinstabilityand/orterroristactivitiesgenerallyrestrictstraveltoandfromtheaffectedareas,makingitmoredifficultingeneraltomanageourglobaloperations.

TableofContents

We may not be successful in our efforts to grow our presence in existing international markets and expand into additional international markets.

Weintendtogrowourpresenceinandcontinuetoexpandintoselectinternationalmarketswheretherearethenecessaryandsufficientconditionsinplacetosupportsuchexpansion.Thesegrowthandexpansionplanswillrequiresignificantmanagementattentionandresourcesandmaybeunsuccessful.Inaddition,toachievesatisfactoryperformanceininternationallocations,itmaybenecessarytolocatephysicalfacilities,suchasregionaloffices,intheforeignmarketandtohireemployeeswhoarefamiliarwithsuchforeignmarketswhilealsobeingqualifiedtomarketourproducts.Wemaynotbesuccessfulingrowingourpresenceinorexpandingintoanysuchinternationalmarketsoringeneratingsalesfromsuchforeignoperations.

Wehavehistoricallygrownourbusinessbyexpandingintoadditionalinternationalmarkets,butsuchgrowthdoesnotalwaysworkoutasanticipatedandthereisnoassurancethatwewillbesuccessfulintheexistinginternationalmarketswherewearecurrentlyseekingtogrowourpresence,includingChina,orthenewinternationalmarketsweplantoenter.Ourbusiness,financialconditionandresultsofoperationscouldbemateriallyadverselyaffectedifwedonotachievetheinternationalgrowththatweareanticipating.

We are exposed to a number of different tax uncertainties, including potential changes in tax laws, unanticipated tax liabilities and limitations on utilization oftax attributes after any change of control, which could materially adversely affect our business, financial condition and results of operations.

Weearnasubstantialportionofournetsalesinforeigncountries,andaresubjecttothetaxlawsofthosejurisdictions.Taxlawsaffectinginternationaloperationsarecomplexandsubjecttochange.Currenteconomicandpoliticalconditionsmaketaxrulesinanyjurisdiction,includingtheU.S.,subjecttosignificantchange.TherehavebeenproposalstoreformU.S.andforeigntaxlawsthatcouldsignificantlyimpacthowU.S.multinationalcorporationsaretaxedonforeignearnings.Althoughwecannotpredictwhetherorinwhatformtheseproposalswillpass,severaloftheproposalsconsidered,ifenactedintolaw,couldhaveanadverseimpactonourincometaxexpenseandcashflows.Transactionsthatwehavearrangedinlightofcurrenttaxrulescouldhaveadverseconsequencesiftaxruleschange,andchangesintaxrulesorimpositionofanyneworincreasedtariffs,dutiesandtaxescouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

Oureffectiveincometaxrateinthefuturecouldbeadverselyaffectedbyanumberoffactors,includingchangesinthemixofearningsincountrieswithdifferingstatutorytaxrates,changesinthevaluationofdeferredtaxassetsandliabilities,changesintaxlaws,theoutcomeofincometaxauditsinvariousjurisdictionsaroundtheworldandanyrepatriationofnon-U.S.earningsforwhichwehavenotpreviouslyprovidedforU.S.taxes.

UnderSections382and383oftheInternalRevenueCodeof1986,asamended,ortheCode,ifacorporationundergoesan"ownershipchange,"thecorporation'sabilitytouseitspre-changenetoperatinglosscarryforwardsandotherpre-changetaxattributes,suchasforeigntaxcreditsandresearchtaxcredits,tooffsetitspost-changeincomeandtaxesmaybelimited.Ingeneral,an"ownershipchange"generallyoccursifthereisacumulativechangeintheCompany'sownershipby"5-percentshareholders"thatexceeds50percentagepointsoverarollingthree-yearperiod.Similarrulesmayapplyunderstatetaxlaws.Wemayexperienceanownershipchangeinthefutureasaresultofthisissuanceorfuturetransactionsinourstock,someofwhichmaybeoutsideourcontrol.Asaresult,ifweearnnettaxableincome,ourabilitytousepre-changenetoperatinglosscarryforwardsorotherpre-changetaxattributestooffsetU.S.federalandstatetaxableincomeandtaxesmaybesubjecttolimitations.

Weareengagedinanumberofintercompanytransactionsacrossmultipletaxjurisdictions.Althoughwebelievethatthesetransactionsreflecttheaccurateeconomicallocationofprofitandthat

TableofContents

thepropertransferpricingdocumentationisinplace,theprofitallocationandtransferpricingtermsandconditionsmaybescrutinizedbylocaltaxauthoritiesduringanauditandanyresultingchangesmayimpactourmixofearningsincountrieswithdifferingstatutorytaxrates.

WearealsosubjecttotheauditorexaminationofourtaxreturnsbytheInternalRevenueServiceandothertaxauthoritieswherebytaxauthoritiescouldimposeadditionaltariffs,duties,taxes,penaltiesandinterestonus.Thedeterminationofourworldwideprovisionforincometaxesandothertaxliabilitiesrequiressignificantjudgment,andtherearemanytransactionsandcalculationswheretheultimatetaxdeterminationisuncertain.Althoughwebelieveourestimatesarereasonableandourtaxprovisionsareadequate,thefinaldeterminationoftaxauditsandanyrelateddisputescouldbemateriallydifferentfromourhistoricalincometaxprovisionsandaccruals.Theresultsofauditsorrelateddisputescouldhaveanadverseeffectonourfinancialstatementsandourfinancialresultsfortheperiodorperiodsforwhichtheapplicablefinaldeterminationsaremade.

Portionsofouroperationsaresubjecttoareducedtaxrateorarefreeoftaxundervarioustaxholidaysandrulingsthatexpireinwholeorinpartfromtimetotime.Thesetaxholidaysandrulingsmaybeextendedwhencertainconditionsaremet,orterminatedifcertainconditionsarenotmet.Ifthetaxholidaysandrulingsarenotextended,orifwefailtosatisfytheconditionsofthereducedtaxrate,thenoureffectivetaxratewouldincreaseinthefuture.

Changestotheoverallinternationaltaxenvironment,aswellaschangestosomeofthetaxlawsoftheforeignjurisdictionsinwhichweoperate,areexpectedasaresultoftheBaseErosionandProfitShiftingproject,orBEPS,beingundertakenbytheOrganisationforEconomicCo-operationandDevelopment,orOECD.TheOECD,whichrepresentsacoalitionofmembercountriesthatencompassmanyofthejurisdictionsinwhichweoperate,haspromulgatedrecommendedchangestonumerouslongstandinginternationaltaxprinciplesthroughitsBEPSproject.ItisexpectedthatjurisdictionsinwhichwedobusinesswillreacttotheBEPSinitiativebyenactingtaxlegislation,andourbusinesscouldbemateriallyimpacted.ItisalsoexpectedthatourexistingtransferpricingarrangementsneedtobereviewedandpossiblyadjustedtoreflecttheprinciplesenumeratedintheBEPSproject.

Our insurance policies may not provide adequate levels of coverage against all claims and we may incur losses that are not covered by our insurance.

Wemaintaininsuranceofthetypeandinamountsthatwebelieveiscommerciallyreasonableandthatisavailabletobusinessesinourindustry.Wecarryvarioustypesofinsurance,includinggeneralliability,autoliability,workers'compensationandexcessumbrella,fromhighlyratedinsurancecarriersonallofourproperties.Webelievethatthepolicyspecificationsandinsuredlimitsareadequateforforeseeablelosseswithtermsandconditionsthatarereasonableandcustomaryforsimilarbusinessesandarewithinindustrystandards.Nevertheless,marketforcesbeyondourcontrolcouldlimitthescopeoftheinsurancecoveragethatwecanobtaininthefutureorrestrictourabilitytobuyinsurancecoverageatreasonablerates.Wecannotpredictthelevelofthepremiumsthatwemayberequiredtopayforsubsequentinsurancecoverage,thelevelofanydeductibleand/orself-insuranceretentionapplicablethereto,thelevelofaggregatecoverageavailableortheavailabilityofcoverageforspecificrisks.

Intheeventofasubstantialloss,theinsurancecoveragethatwecarrymaynotbesufficienttocompensateusforthelossesweincuroranycostsweareresponsiblefor.Inaddition,therearetypesoflosseswemayincurthatcannotbeinsuredagainstorthatwebelievearenotcommerciallyreasonabletoinsure.Forexample,wemaintainbusinessinterruptioninsurance,buttherecanbenoassurancethatthecoverageforasevereorprolongedbusinessinterruptionwouldbeadequateandthedeductiblesforsuchinsurancemaybehigh.Theselosses,iftheyoccur,couldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

TableofContents

We are subject to product liability, warranty and recall claims, and our insurance coverage may not cover such claims.

Ourproductsexposeustowarrantyclaimsandproductliabilityclaimsintheeventthatproductsmanufactured,soldordesignedbyusactuallyorallegedlyfailtoperformasexpected,ortheuseofthoseproductsresults,orisallegedtoresult,inpersonalinjury,deathorpropertydamage.Further,weoroneormoreofoursuppliersmightnotadheretoproductsafetyrequirementsorqualitycontrolstandards,andproductsmaybeshippedtoretailpartnersbeforetheissueisidentified.Intheeventthatthisoccurs,wemayhavetorecallourproductstoaddressperformance,compliance,orothersafetyrelatedissues.Thefinancialcostswemayincurinconnectionwiththeserecallstypicallywouldincludethecostoftheproductbeingreplacedorrepairedandassociatedlaborandadministrativecostsand,ifapplicable,governmentalfinesand/orpenalties.

Productrecallscanharmourreputationandcauseustolosecustomers,particularlyifthoserecallscauseconsumerstoquestiontheperformance,quality,safetyorreliabilityofourproducts.Substantialcostsincurredorlostsalescausedbyfutureproductrecallscouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.Conversely,notissuingarecallornotissuingarecallonatimelybasiscanharmourreputationandcauseustolosecustomersforthesamereasonsasexpressedabove.Productrecalls,withdrawals,repairsorreplacementsmayalsoincreasetheamountofcompetitionthatweface.

Wevigorouslydefendorattempttosettleallproductliabilitycasesbroughtagainstus.However,thereisnoassurancethatwecansuccessfullydefendorsettleallsuchcases.Webelievethatwearenotcurrentlysubjecttoanymaterialproductliabilityclaimsnotcoveredbyinsuranceorvendorindemnity,althoughtheultimateoutcomeoftheseandfutureclaimscannotpresentlybedetermined.Becauseproductliabilityclaimsarepartoftheordinarycourseofourbusiness,wemaintainproductliabilityinsurancewhichwecurrentlybelieveisadequate.Ourinsurancepoliciesprovidecoverageagainstclaimsresultingfromallegedinjuriesarisingfromourproductssustainedduringtherespectivepolicyperiods,subjecttopolicytermsandconditions.Webelievetheinsurancewillberenewedonsubstantiallysimilartermsuponitsexpirybuttherecanbenoassurancethatthiscoveragewillberenewedorotherwiseremainavailableinthefuture,thatourinsurerswillbefinanciallyviablewhenpaymentofaclaimisrequired,thatthecostofsuchinsurancewillnotincrease,orthatthisinsurancewillultimatelyprovetobeadequateunderourvariouspolicies.Furthermore,futurerateincreasesmightmakeinsuranceuneconomicalforustomaintain.Thesepotentialinsuranceproblemsoranyadverseoutcomeinanyliabilitysuitcouldcreateincreasedexpenseswhichcouldharmourbusiness.Weareunabletopredictthenatureofproductliabilityclaimsthatmaybemadeagainstusinthefuturewithrespecttoinjuries,diseasesorotherillnessesresultingfromtheuseofourproductsorthematerialsincorporatedinourproducts.

Withregardtowarrantyclaims,ouractualproductwarrantyobligationscouldmateriallydifferfromhistoricalrateswhichwouldobligeustoreviseourestimatedwarrantyliabilityaccordingly.Adversedeterminationsofmaterialproductliabilityandwarrantyclaimsmadeagainstuscouldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperationsandcouldharmthereputationofourbrands.

We may be subject to litigation and other regulatory proceedings which may result in the expense of time and resources and could materially adversely affectour business, financial condition and results of operations.

Wemaybeinvolvedinlawsuitsandregulatoryactionsrelatingtoourbusiness,includingthoserelatingtointellectualproperty,antitrust,commercialandemploymentmatters.Duetotheinherentuncertaintiesoflitigationandregulatoryproceedings,wecannotaccuratelypredictthelikelihoodofsuchlawsuitsorregulatoryproceedingsoccurringortheultimateoutcomeofanysuchproceedings.Anunfavorableoutcomecouldmateriallyadverselyaffectourbusiness,financialconditionandresultsof

TableofContents

operations.Inaddition,anysuchproceeding,regardlessofitsmerits,coulddivertmanagement'sattentionfromouroperationsandresultinsubstantiallegalfees.

We are subject to environmental, health and safety laws and regulations, which could subject us to liabilities, increase our costs or restrict our operations in thefuture.

Ourpropertiesandoperationsaresubjecttoanumberofenvironmental,healthandsafetylawsandregulationsineachofthejurisdictionsinwhichweoperate.Theselawsandregulationsgovern,amongotherthings,airemissions,waterdischarges,handlinganddisposalofsolidandhazardoussubstancesandwastes,soilandgroundwatercontaminationandemployeehealthandsafety.Ourfailuretocomplywithsuchenvironmental,healthandsafetylawsandregulationscouldresultinsubstantialcivilorcriminalfinesorpenaltiesorenforcementactions,includingregulatoryorjudicialordersenjoiningorcurtailingoperationsorrequiringremedialorcorrectivemeasures,installationofpollutioncontrolequipmentorotheractions.

Wemayalsobesubjecttoliabilityforenvironmentalinvestigationsandcleanups,includingatpropertiesthatwecurrentlyorpreviouslyownedoroperated,evenifsuchcontaminationwasnotcausedbyus,andwemayfaceclaimsallegingharmtohealthorpropertyornaturalresourcedamagesarisingoutofcontaminationorexposuretohazardoussubstances.Wemayalsobesubjecttosimilarliabilitiesandclaimsinconnectionwithlocationsatwhichhazardoussubstancesorwasteswehavegeneratedhavebeenstored,treated,otherwisemanaged,ordisposed.

Weusecertainsubstancesandgeneratecertainwastesthatmaybedeemedhazardousortoxicunderenvironmentallaws,andwefromtimetotimehaveincurred,andinthefuturemayincur,costsrelatedtocleaningupcontaminationresultingfromhistoricusesofcertainofourcurrentorformerpropertiesorourtreatment,storageordisposalofwastesatfacilitiesownedbyothers.Thecostsofinvestigation,remediationorremovalofsuchmaterialsmaybesubstantial,andthepresenceofthosesubstances,orthefailuretoremediateapropertyproperly,mayimpairourabilitytouse,transferorobtainfinancingregardingourproperty.Liabilityinmanysituationsmaybeimposednotonlywithoutregardtofault,butmayalsobejointandseveral,sothatwemaybeheldresponsibleformorethanourshareofthecontaminationorotherdamages,orevenfortheentireamount.

Environmentalconditionsatorrelatedtoourcurrentorformerpropertiesoroperations,and/orthecostsofcomplyingwithcurrentorfutureenvironmental,healthandsafetyrequirements(whichhavebecomemorestringentandcomplexovertime)couldmateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations.

We may require additional capital in the future and we cannot give any assurance that such capital will be available at all or available on terms acceptable tous and, if it is available, additional capital raised by us may dilute holders of our common stock.

Wemayneedtoraiseadditionalfundsthroughpublicorprivatedebtorequityfinancingsinorderto:

• fundongoingoperations;

• takeadvantageofopportunities,includingexpansionofourbusinessortheacquisitionofcomplementaryproducts,technologiesorbusinesses;

• developnewproducts;or

• respondtocompetitivepressures.

Anyadditionalcapitalraisedthroughthesaleofequityorsecuritiesconvertibleintoequitywilldilutethepercentageownershipofholdersofourcommonstock.Capitalraisedthroughdebtfinancingwouldrequireustomakeperiodicinterestpaymentsandmayimposerestrictivecovenantsonthe

TableofContents

conductofourbusiness.Furthermore,additionalfinancingsmaynotbeavailableontermsfavorabletous,oratall,especiallyduringperiodsofadverseeconomicconditions,whichcouldmakeitmoredifficultorimpossibleforustoobtainfundingfortheoperationofourbusiness,formakingadditionalinvestmentsinproductdevelopmentandforrepayingoutstandingindebtedness.Ourfailuretoobtainadditionalfundingcouldpreventusfrommakingexpendituresthatmayberequiredtogrowourbusinessormaintainouroperations.

If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our financial condition and results of operations could beadversely affected.

ThepreparationoffinancialstatementsinconformitywithU.S.GAAPrequiresmanagementtomakeestimatesandassumptionsthataffecttheamountsreportedintheconsolidatedfinancialstatementsandaccompanyingnotes.Webaseourestimatesonhistoricalexperienceandonvariousotherassumptionsthatwebelievetobereasonableunderthecircumstances,asdiscussedunder"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations,"includedelsewhereinthisprospectusandinourconsolidatedfinancialstatementsincludedherein.Theresultsoftheseestimatesformthebasisformakingjudgmentsaboutthecarryingvaluesofassets,liabilitiesandequity,andtheamountofrevenueandexpensesthatarenotreadilyapparentfromothersources.Significantassumptionsandestimatesusedinpreparingourconsolidatedfinancialstatementsincludethoserelatedtorevenuerecognition,allowancefordoubtfulaccounts,inventoryreserves,impairmentofgoodwill,indefinite-livedandlong-livedassets,pensionandotherpost-retirementbenefits,productwarranty,valuationallowancesfordeferredtaxassets,valuationofcommonstockwarrants,andshare-basedcompensation.Ourfinancialconditionandresultsofoperationsmaybeadverselyaffectedifourassumptionschangeorifactualcircumstancesdifferfromthoseinourassumptions,whichcouldcauseourresultsofoperationstofallbelowtheexpectationsofsecuritiesanalystsandinvestors,resultinginadeclineinthepriceofourcommonstock.

RisksRelatedtoOurIndebtedness

Our substantial leverage could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economyor in our industry, expose us to interest rate risk to the extent of our variable rate debt, and prevent us from meeting our obligations under our indebtedness.

FollowingtheclosingoftheRefinancingandtheconversionofallofourConvertibleNotespriortotheclosingofthisoffering,wewillcontinuetobehighlyleveraged.AsofJune30,2016,onaproformabasisaftergivingeffecttotheconversionofallofourConvertibleNotespriortotheclosingofthisoffering,wewouldhavehad$454.9millionofindebtedness,andonaproformaasadjustedbasisaftergivingfurthereffectto(i)theexercisebyFilaKoreaofallofouroutstandingwarrantsandrelatedredemptionofouroutstanding7.5%bondsdue2021,whichoccurredinJuly2016,and(ii)theRefinancing,wewouldhavehad$424.1millionofindebtedness.Inaddition,asofJune30,2016,onaproformaasadjustedbasis,wewouldhavehad$227.1millionofavailabilityunderournewrevolvingcreditfacilityaftergivingeffectto$7.8millionofoutstandinglettersofcreditandwewouldhavehad$64.0millionavailableunderourlocalcreditfacilitiesthatwillremainoutstandingaftertheRefinancing.OnJuly29,2016,weborrowedamountsunderournewrevolvingcreditfacilitytofundinpartthepaymentof(i)accruedandunpaidinterestonour7.5%bondsdue2021to,butnotincluding,July29,2016,(ii)accruedandunpaidinterestonourConvertibleNotesto,butnotincluding,August1,2016and(iii)accruedandunpaiddividendsonourConvertiblePreferredStockto,butnotincluding,August1,2016.Wemayborrowadditionalamountsunderournewrevolvingcreditfacilityinconnectionwiththepaymentof(i)theremainingaccruedandunpaidinterestonourConvertibleNotes,(ii)theremainingaccruedandunpaiddividendsonourConvertiblePreferredStockand(iii)ourremainingfeesandexpensesrelatedtothisoffering.UntilJuly28,2017,thecommitmentsunderthenewdelayeddrawtermloanAfacilityintheamountofupto$100.0millionwillbeavailable

TableofContents

tomakepaymentsinconnectionwiththefinalpayoutoftheoutstandingEARsundertheEARPlan,whichwouldincreaseourleveragefurther.Ourhighdegreeofleveragefollowingtheclosingofthisofferingcouldhaveimportantconsequencesforus,including:

• requiringustoutilizeasubstantialportionofourcashflowsfromoperationstomakepaymentsonourindebtedness,reducingtheavailabilityofourcashflowstofundworkingcapital,capitalexpenditures,productdevelopment,acquisitions,generalcorporateandotherpurposes;

• increasingourvulnerabilitytoadverseeconomic,industry,orcompetitivedevelopments;

• exposingustotheriskofincreasedinterestratesbecausesubstantiallyallofourborrowingsareatvariableratesofinterest;

• makingitmoredifficultforustosatisfyourobligationswithrespecttoourindebtedness,andanyfailuretocomplywiththeobligationsofanyofourdebtinstruments,includingfinancialmaintenancecovenantsandrestrictivecovenants,couldresultinaneventofdefaultundertheagreementsgoverningourindebtedness;

• restrictingusfrommakingstrategicacquisitionsorcausingustomakenon-strategicdivestitures;

• limitingourabilitytoobtainadditionalfinancingforworkingcapital,capitalexpenditures,productdevelopment,debtservicerequirements,acquisitions,andgeneralcorporateorotherpurposes;and

• limitingourflexibilityinplanningfor,orreactingto,changesinourbusinessormarketconditionsandplacingusatacompetitivedisadvantagecomparedtoourcompetitorswhoarelesshighlyleveragedandwho,therefore,maybeabletotakeadvantageofopportunitiesthatourleveragepreventsusfromexploiting.

Ourtotalinterestexpense,netwas$68.1million,$63.5million,$60.3millionand$30.5millionand$28.4millionfortheyearsendedDecember31,2013,2014and2015andthesixmonthsendedJune30,2015and2016,respectively,ourproformatotalinterestexpensefortheyearendedDecember31,2015andthesixmonthsendedJune30,2016aftergivingeffecttotheconversionofallofourConvertibleNotespriortotheclosingofthisofferingwouldhavebeen$33.1millionand$14.8million,respectively,andourproformaasadjustedtotalinterestexpensefortheyearendedDecember31,2015andthesixmonthsendedJune30,2016aftergivingfurthereffecttotheexercisebyFilaKoreaofallofouroutstandingwarrantsandrelatedredemptionofouroutstanding7.5%bondsdue2021,whichoccurredinJuly2016,andtheRefinancingwouldhavebeen$16.7millionand$9.0million,respectively.FollowingtheclosingoftheRefinancingandthisoffering,substantiallyallofourindebtednesswillbefloatingratedebt.

Servicing our indebtedness will require a significant amount of cash. Our ability to generate sufficient cash depends on many factors, some of which are notwithin our control.

Ourabilitytomakepaymentsonourindebtednessandtofundplannedcapitalexpenditureswilldependonourabilitytogeneratecashinthefuture.Toacertainextent,thisissubjecttogeneraleconomic,financial,competitive,legislative,regulatory,andotherfactorsthatarebeyondourcontrol.Ifweareunabletogeneratesufficientcashflowstoserviceourdebtandmeetourothercommitments,wemayneedtorestructureorrefinancealloraportionofourdebt,sellmaterialassetsoroperations,orraiseadditionaldebtorequitycapital.Wemaynotbeabletoaffectanyoftheseactionsonatimelybasis,oncommerciallyreasonableterms,oratall,andtheseactionsmaynotbesufficienttomeetourcapitalrequirements.Inaddition,anyrefinancingofourindebtednesscouldbeatahigherinterestrate,andthetermsofourexistingorfuturedebtarrangementsmayrestrictusfromaffectinganyofthesealternatives.Ourfailuretomaketherequiredinterestandprincipalpaymentsonourindebtedness

TableofContents

wouldresultinaneventofdefaultundertheagreementgoverningsuchindebtedness,whichmayresultintheaccelerationofsomeorallofouroutstandingindebtedness.

Despite our high indebtedness level, we and our subsidiaries will still be able to incur significant additional amounts of debt, which could further exacerbatethe risks associated with our substantial indebtedness.

Weandoursubsidiariesmaybeabletoincursubstantialadditionalindebtednessinthefuture.Althoughtheagreementsgoverningourindebtednesscontainrestrictionsontheincurrenceofadditionalindebtedness,theserestrictionsaresubjecttoanumberofsignificantqualificationsandexceptionsand,undercertaincircumstances,theamountofindebtednessthatcouldbeincurredincompliancewiththeserestrictionscouldbesubstantial.

Our credit agreements contain restrictions that limit our flexibility in operating our business.

Theagreementsgoverningouroutstandingindebtednesscontainvariouscovenantsthatlimitourabilitytoengageinspecifiedtypesoftransactions.Thesecovenantslimittheabilityofoursubsidiariesto,amongotherthings:

• incur,assume,orpermittoexistadditionalindebtednessorguarantees;

• incurliens;

• makeinvestmentsandloans;

• paydividends,makepayments,orredeemorrepurchasecapitalstock;

• engageinmergers,liquidations,dissolutions,assetsales,andotherdispositions(includingsaleleasebacktransactions);

• amendorotherwisealtertermsofcertainindebtednessorcertainotheragreements;

• enterintoagreementslimitingsubsidiarydistributionsorcontainingnegativepledgeclauses;

• engageincertaintransactionswithaffiliates;

• alterthenatureofthebusinessthatweconduct;

• changeourfiscalyearoraccountingpractices;or

• enterintoatransactionorseriesoftransactionsthatconstitutesachangeofcontrol.

ThenewcreditagreementcovenantsalsorestricttheabilityofAcushnetHoldingsCorp.toengageincertainmergersorconsolidationsorengageinanyactivitiesotherthanpermittedactivities.Abreachofanyofthesecovenants,amongothers,couldresultinadefaultunderoneormoreoftheseagreements,includingasaresultofcrossdefaultprovisions,and,inthecaseofournewsecuredcreditfacility,followinganyapplicablecureperiod,wouldpermitthelendersthereunderto,amongotherthings,declaretheprincipal,accruedinterestandotherobligationsthereundertobeimmediatelydueandpayableanddeclarethecommitmentofeachlenderthereundertomakeloansandissuelettersofcredittobeterminated.

We may utilize derivative financial instruments to reduce our exposure to market risks from changes in interest rates on our variable rate indebtedness and wewill be exposed to risks related to counterparty credit worthiness or non-performance of these instruments.

Wemayenterintopay-fixedinterestrateswapstolimitourexposuretochangesinvariableinterestrates.Suchinstrumentsmayresultineconomiclossesshouldinterestratesdeclinetoapointlowerthanourfixedratecommitments.Wewillbeexposedtocredit-relatedlosses,whichcouldimpacttheresultsofoperationsintheeventoffluctuationsinthefairvalueoftheinterestrateswapsduetoachangeinthecreditworthinessornon-performancebythecounterpartiestotheinterestrateswaps.

TableofContents

RisksRelatedtotheShareholderTransactionandtheMagnusTermLoan

Fila Korea and Magnus will have obligations under the Magnus Term Loan, and Fila Korea and/or Magnus may have obligations under any equity or debtused to refinance the Magnus Term Loan, that may be satisfied by a sale, foreclosure, liquidation or other transfer of our common stock, which couldmaterially decrease the market value of our common stock and may result in a change of control of our company.

AftergivingeffecttotheShareholderTransaction,sharesofourcommonstockwillbetheonlyassetsownedbyMagnus.Unlessrefinancedonorpriortomaturity,theMagnusTermLoanwillmatureon,2017(thefirstanniversaryofthedayfollowingthepricingofthisoffering).TherearecurrentlynoarrangementsoragreementsinplacewithrespecttoanypotentialfinancingthatmaybenecessaryinconnectionwiththepaymentofamountsdueontheMagnusTermLoanatmaturity.TheMagnusTermLoanwillbesecuredbyapledgeonallofourcommonstockownedbyMagnus,exceptfor5%ofouroutstandingcommonstockownedbyMagnusthatissubjecttoanegativepledgeunderFilaKorea'screditfacility,whichwillequal48.1%ofouroutstandingcommonstock.FollowingtherepaymentoftheMagnusTermLoan,MagnusmaypledgealloraportionofourcommonstockthatMagnusownstosecureanydebtincurredinconnectionwiththerefinancingoftheMagnusTermLoanorotherwise.IfFilaKoreaorMagnusareunabletoraisethefundstopaytheamountsdueontheMagnusTermLoanatmaturity(oranearlierdateifsubjecttoacceleration)onacceptabletermsoratall,orifFilaKoreaorMagnusareunabletomeettheirobligationsunderanydebtusedtorefinancetheMagnusTermLoan,theMagnusLenders,orlendersofsuchdebt,canforecloseonthepledgedsharesofourcommonstock.

Inaddition,itisexpectedthataportionoftheinterestpaymentsontheMagnusTermLoan,andpotentialfuturedividendorinterestobligationsunderanyequityordebtusedtorefinancetheMagnusTermLoan,willbefundedusingproceedsfromdividends,ifany,receivedonourcommonstock.See"DividendPolicy."Therecanbenoassurancethatwewillbeabletomakesuchdividendpaymentsonourcommonstock.See"RisksRelatedtothisOfferingandOwnershipofOurCommonStock—Wecannotassureyouthatwewillpaydividendsonourcommonstock,andourindebtednessandotherfactorscouldlimitourabilitytopaydividendsonourcommonstock."TherecanbenoassurancethatMagnuswillbeabletomaketheinterestpaymentsontheMagnusTermLoan,oranypotentialfuturedividendorinterestobligationsunderanyequityordebtusedtorefinancetheMagnusTermLoan.IfMagnusisunabletopayinterestontheMagnusTermLoanonaninterestpaymentdate,theprincipalandaccruedinterestontheMagnusTermLoanbecomesautomaticallydueandpayable.Atmaturity(oranearlierdateifsubjecttoacceleration),Magnuswillberequiredtoraiseadditionalfundstopaytheadditionalamountsofinterestincurred,whichitmaybeunabletodo.TheremaybesimilarobligationsunderanyfinancingusedtorefinancetheMagnusTermLoan.

IfFilaKoreaorMagnusareunabletoraisethefundsnecessarytopaytheamountowedontheMagnusTermLoanatmaturity(oranearlierdateifsubjecttoacceleration)andtheMagnusLendersforecloseonthepledgedsharesofourcommonstockpursuanttothetermsoftheMagnusTermLoan,anysuchforeclosuremaybeundertakeninaccordancewithKoreanlawandmayresult,undercertaincircumstances,inthesaleorothertransferof48.1%ofourcommonstock,whichequalsallofthesharespledgedbyMagnustotheMagnusLenders.See"—ThecreditorandinsolvencylawsofKoreaaredifferentfromU.S.lawsandtheoutcomeofanyforeclosure,liquidation,bankruptcyorotherrestructuringproceedingmaybeunpredictable."Anysuchsalecouldhaveasignificantimpactonourshareholdingstructureandourcorporategovernanceandcouldmateriallydecreasethemarketpriceofsharesofourcommonstock.Inaddition,theperceptionthatsuchasalecouldoccurcouldmateriallydepressthemarketpriceofsharesofourcommonstock.See"RisksRelatedtothisOfferingandOwnershipofOurCommonStock—Futuresales,ortheperceptionoffuturesales,byusorourexistingshareholdersinthepublicmarketfollowingthisofferingcouldcausethemarketpriceforourcommonstocktodecline."Anysuchsalewouldbesubjecttothelock-uprestrictionsasdescribedin"Underwriting—Lock-upAgreements."Theremaybesimilarobligationsunderanyfinancingusedto

TableofContents

refinancetheMagnusTermLoanandfailuretosatisfysuchobligationscouldresultinthesameconsequencesasdiscussedabove.

Inaddition,priortoanyforeclosure,FilaKoreamaydecidetosellorotherwisetransferall,orasignificantportion,ofourcommonstockownedbyMagnusinordertomeettheobligationsofMagnusundertheMagnusTermLoanoranyfuturefinancing.Anysuchsale,ortheperceptionthatsuchasalecouldoccur,couldhaveasignificantimpactonourshareholdingstructureandourcorporategovernanceandcouldmateriallydecreasethemarketpriceofsharesofourcommonstock.Inconnectionwiththisoffering,weexpecttoenterintoaregistrationrightsagreementwithMagnusandtheFinancialInvestors.TheMagnusLenderswillassumeMagnus'rightsundertheregistrationrightsagreementintheeventofaforeclosureorothertransferofthepledgedsharesofourcommonstockpursuanttotheMagnusTermLoan.See"CertainRelationshipsandRelatedPartyTransactions—RegistrationRightsAgreement."

Anyofthepotentialsales,foreclosures,liquidationsorothertransfersofourcommonstockdiscussedabovemayresultinachangeofcontrolundercertainoutstandingagreements,includingasaresultoftheacquisitionofasignificantportionofourcommonstockbyanyindividual,entityorgroup,whichcouldresultinadefaultundersuchagreements.Underthenewcreditagreement,itisachangeofcontrolifanyperson(otherthancertainpermittedparties,includingFila)becomesthebeneficialownerof35%ormoreofouroutstandingcommonstock.IntheeventofaforeclosureonthepledgedsharesofourcommonstockundertheMagnusTermLoan,if,inthereasonableopinionoftheMagnusLenders,foreclosureof35%ofouroutstandingcommonstocklessoneshareofourcommonstock,ortheForeclosureThresholdAmount,willbesufficienttofullysatisfytheprincipalandinterestoftheMagnusLoan,onlytheForeclosureThresholdAmountwillbepermittedforsuchforeclosure.IftheForeclosureThresholdAmountisinsufficienttofullysatisfytheprincipalandinterestoftheMagnusLoan,therewillbenolimitationontheamountofourpledgedsharesofcommonstockthatmaybeforeclosed.Asaresult,iftheMagnusLendersorathirdpartyweretoacquirebeneficialownershipof35%ormoreofouroutstandingcommonstockpursuanttoaneventofdefaultundertheMagnusTermLoan,itwouldresultinachangeofcontrolunderthenewcreditagreement,whichisaneventofdefaultthatcouldresultintheaccelerationofalloutstandingindebtednessandtheterminationofallcommitmentsunderthenewcreditagreementandwouldallowthelendersunderthenewcreditagreementtoenforcetheirrightswithrespecttothecollateralgrantedbyus,includingthestockofoursubsidiary,AcushnetCompany.Upontheexerciseofsuchrights,itisuncertainwhetherweandoursubsidiary,AcushnetCompany,wouldbeabletorefinancetheindebtednessandreplacethecommitmentsunderthenewcreditagreementoncomparabletermsoratall.Ifweareunabletorefinancethenewcreditagreement,wemayneedtodisposeofassetsoroperationsorissueequitytoobtainnecessaryfundstorepaytheoutstandingindebtednessunderthenewcreditagreement.Theresultingimpairmentofourliquiditypositioncouldalsomateriallydepressourstockprice.Inaddition,achangeofcontrolunderouroutstandingequityawardagreementsandotheremploymentarrangementsmayresultinthevestingofoutstandingequityawardsandtheaccelerationofbenefitsorotherpaymentsundercertainemploymentarrangements.Achangeofcontrolmayalsoresultinadefaultorothernegativeconsequenceunderourotheroutstandingagreementsorinstruments.See"DescriptionofIndebtedness."

Magnus'abilitytopaytheamountowedon,ortorefinance,theMagnusTermLoanpriortomaturitymaybeaffectedbygeneraleconomic,financial,competitive,legislative,regulatory,businessandotherfactorsbeyonditscontrol.WecannotassureyouthatfutureborrowingsorequityfinancingwillbeavailableforthepaymentorrefinancingoftheMagnusTermLoanbyMagnus.IfMagnusisunabletopaytheamountowedon,ortorefinance,theMagnusTermLoanpriortomaturity,itcouldhaveamaterialadverseeffectonourbusiness,financialcondition,resultsofoperationsandthemarketpriceofourcommonstock.Inaddition,anyinabilitybyMagnustotakeaffirmativestepstorefinance

TableofContents

theMagnusTermLoanasthematuritydatenearscouldalsohaveamaterialadverseeffectonourbusiness,financialcondition,resultsofoperationsandthemarketpriceofourcommonstock.

Upon the closing of this offering and after giving effect to the Shareholder Transaction, Magnus, which is wholly-owned by Fila Korea, will control us andtheir interests, and the interests of the Magnus Lenders, may conflict with yours in the future.

UpontheclosingofthisofferingandaftergivingeffecttotheShareholderTransaction,Magnus,whichiswholly-ownedbyFilaKorea,willbeneficiallyownapproximately53.1%ofourcommonstock.FilaKoreawillbeabletocontroltheelectionandremovalofourdirectorsandtherebydetermine,amongotherthings,thepaymentofdividends,ourcorporateandmanagementpolicies,includingpotentialmergersoracquisitionsorassetsales,amendmentofouramendedandrestatedcertificateofincorporationoramendedandrestatedbylaws,andothersignificantcorporatetransactionsforsolongasMagnusretainssignificantownershipofus.SolongasMagnuscontinuestoownasignificantamountofourvotingpower,evenifsuchamountislessthan50%,FilaKoreawillcontinuetobeabletostronglyinfluenceoreffectivelycontrolourdecisions.TheinterestsofFilaKoreamaynotcoincidewiththeinterestsofotherholdersofourcommonstock.

Bycontrollingtheelectionandremovalofourdirectors,FilaKoreawillalsobeabletodeterminethepaymentofdividendsonourcommonstock.InlightofitsinterestobligationsundertheMagnusTermLoan,andpotentialfuturedividendorinterestobligationsunderanyequityordebtusedtorefinancetheMagnusTermLoan,Magnusmaycauseustopaydividendsonourcommonstockattimesorinamountsthatmaynotbeinthebestinterestofusorotherholdersofourcommonstock.See"RisksRelatedtothisOfferingandOwnershipofourCommonStock—Wecannotassureyouthatwewillpaydividendsonourcommonstock,andourindebtednessandotherfactorscouldlimitourabilitytopaydividendsonourcommonstock."

Intheordinarycourseofitsbusinessactivities,FilaKoreaanditsaffiliatesmayengageinactivitieswheretheirinterestsconflictwithourinterestsorthoseofourshareholders.Exceptasmaybelimitedbyapplicablelaw,FilaKoreaanditsaffiliateswillnothaveanydutytorefrainfromcompetingdirectlywithusorengaging,directlyorindirectly,inthesamebusinessactivitiesorsimilarbusinessactivitiesorlinesofbusinessinwhichweoperate.FilaKoreaanditsaffiliatesalsomaypursueacquisitionopportunitiesthatmaybecomplementarytoourbusinessand,asaresult,thoseacquisitionopportunitiesmaynotbeavailabletous.Inaddition,FilaKoreaanditsaffiliatesmayhaveaninterestinuspursuingacquisitions,divestituresandothertransactionsthat,initsjudgment,couldenhanceitsinvestment,eventhoughsuchtransactionsmightinvolveriskstoyou.

Inaddition,theconcentrationofourownershipinMagnusmaydelay,deterorpreventpossiblechangesincontrolofthecompanyorachangeinthecompositionofourboardofdirectorsandcouldprecludeanyunsolicitedacquisitionofus,whichmayreducethevalueofaninvestmentinourcommonstock.

Furthermore,theMagnusLenders,aslendersundertheMagnusTermLoan,andanypotentialfuturelendersofdebtusedtorefinancetheMagnusTermLoan,mayalsobecomedirectownersofourcommonstockasaresultoftheirexerciseofremediesorotherwise.TheinterestsoftheMagnusLenders,orsuchpotentialfuturelenders,maynotcoincidewiththeinterestsofotherholdersofourcommonstock.

WeandourboardofdirectorswillhavenopowertodirectorinfluencetheaffairsofMagnus.Inparticular,wewillhavenopowerwithrespecttothedispositionofsharesofourcommonstockbyFilaKorea,MagnusortheMagnusLenders(whetherinconnectionwithanyexerciseofremediesbytheMagnusLendersorotherwise).

TableofContents

Fila Korea has pledged the common stock of Magnus to the lenders under its credit facility which pledge is expected to continue in part after the closing of thisoffering. In addition, Fila Korea may pledge or borrow against additional shares of the common stock of Magnus. It is also possible that our othershareholders may in the future pledge shares of our common stock.

Inthepast,inordertofundtheoperationsoforotherwiseprovidefinancingforitsownbusiness,FilaKoreaanditsaffiliatespledgedallofitsinterestinourcommonstock.Currently,FilaKoreahasgrantedasecurityinterestinallofthecommonstockofMagnustothelendersunderitscreditfacility.Aftergivingeffecttotheclosingofthisoffering,thelendersunderFilaKorea'screditfacilityareexpectedtoreleasetheirsecurityinterestsinapproximately85.6%ofthecommonstockofMagnusandretainasecurityinterestinapproximately14.4%ofthecommonstockofMagnus.ThesharesofourcommonstockownedbyMagnusareMagnus'onlyassets.See"PrincipalandSellingShareholders."IfFilaKoreadefaultsunderitscreditfacilityandthelendersforecloseonthepledgedsharesofMagnuscommonstock,theymayseektosellthepledgedsharesofMagnuscommonstock,orseektoacquireandtosellaportionofourcommonstockownedbyMagnus.Anysuchsale,ortheperceptionthatsuchasalecouldoccur,couldalterthevotingpowerofMagnusdirectlyandofusindirectly,and/ordecreasethemarketpriceofsharesofourcommonstock.Theinterestsofthesecuredpartieswhoexerciseforeclosuremaydifferfromthoseofotherholdersofourcommonstock.

Inaddition,itispossiblethatFilaKoreamayinthefuturepledgeadditionalsharesofthecommonstockofMagnus,whethertohelpraisetheproceedsnecessarytopayamountsdueontheMagnusTermLoanatmaturity(oranearlierdateifsubjecttoacceleration)orforotherpurposes.Anysuchadditionalpledgecouldexacerbatetherisksdiscussedabove.See"TheShareholderTransaction—TheMagnusTermLoan—Collateral."

Certainofourothershareholdershavepledged,hypothecatedorgrantedsecurityinterestsinallofouroutstandingConvertibleNotesandallofouroutstandingConvertiblePreferredStockbeneficiallyownedbythem,aswellasalloftheunderlyingsharesofourcommonstockthatareissuablethereunder,ascollateralforforeigncurrencyhedges.Althoughtheseshareholdersexpecttoenterintoagreementsorarrangementswiththesecuredpartiesforthereleaseofthesesecurityinterestspriortotheclosingofthisoffering,itispossiblethatourshareholdersmayinthefuturepledgesharesofourcommonstock.Anysuchpledgemayrelatetoasignificantamountofourcommonstockandifthesecuredpartyforeclosesonsuchpledgedshares,theymayseektosellthepledgedshares.Anysuchsale,ortheperceptionthatsuchasalecouldoccur,coulddecreasethemarketpriceofsharesofourcommonstock.

The creditor and insolvency laws of Korea are different from U.S. bankruptcy laws and the outcome of any foreclosure, liquidation, bankruptcy or otherrestructuring proceeding may be unpredictable.

FilaKoreaandMagnusareorganizedunderthelawsofKorea.Thecreditor,bankruptcy,insolvencyandotherrelevantlawsofKoreaaremateriallydifferentfromthoseoftheUnitedStates.Anyforeclosure,liquidation,bankruptcyorotherrestructuringproceedinginvolvingFilaKoreaorMagnusmaybeunpredictableandwouldnotinvolvethesametimingorprocedures,andmaynotresultinthesameoutcome,asaproceedingunderU.S.law.

TableofContents

We will be a "controlled company" within the meaning of the rules of the NYSE upon the closing of this offering and after giving effect to the ShareholderTransaction. As a result, we will qualify for exemptions from certain corporate governance requirements that would otherwise provide protection toshareholders of other companies.

UnderthecorporategovernancestandardsoftheNYSErules,acompanyofwhichmorethan50%ofthevotingpowerisheldbyanindividual,group,oranothercompanyisa"controlledcompany"andmayelectnottocomplywithcertaincorporategovernancerequirements,including:

• therequirementthatamajorityofourboardofdirectorsconsistof"independentdirectors"asdefinedundertherulesoftheNYSE;

• therequirementthatwehaveacompensationcommitteethatiscomposedentirelyofindependentdirectorswithawrittencharteraddressingthecommittee'spurposeandresponsibilities;

• therequirementthatwehaveanominatingandcorporategovernancecommitteethatiscomposedentirelyofindependentdirectorswithawrittencharteraddressingthecommittee'spurposeandresponsibilities;and

• therequirementforanannualperformanceevaluationofthecompensationandnominatingandcorporategovernancecommittees.

PriortotheclosingofthisofferingandaftergivingeffecttotheShareholderTransaction,Magnus,whichiswholly-ownedbyFilaKorea,willcontrol39,345,151shares,orapproximately53.1%,ofourcommonstock.See"TheShareholderTransaction."Asaresult,wewillqualifyasa"controlledcompany"withinthemeaningofthecorporategovernancestandardsoftheNYSE.Althoughwedonotcurrentlyexpecttoavailourselvesoftheseexemptionsavailabletocontrolledcompanies,wemayutilizeoneormoreoftheseexemptionsinthefuture.Asaresult,wemaynothaveamajorityofindependentdirectors,ournominating/corporategovernancecommitteeandcompensationcommitteemaynotconsistentirelyofindependentdirectors,andsuchcommitteeswillnotbesubjecttoannualperformanceevaluations.Accordingly,youmaynothavethesameprotectionsaffordedtoshareholdersofcompaniesthataresubjecttoallofthecorporategovernancerequirementsoftheNYSE.

Inaddition,theNYSEadoptedlistingstandards,whichwereapprovedbytheSECin2013,thatimposeadditionalrequirementspertainingtocompensationcommitteeindependenceandtheroleanddisclosureofcompensationconsultantsandotheradviserstothecompensationcommitteethatrequire,amongotherthings,that:

• acompensationcommitteebecomposedoffullyindependentdirectors,asdeterminedpursuanttonewindependencerequirements;

• acompensationcommitteebeexplicitlychargedwithhiringandoverseeingcompensationconsultants,legalcounsel,andothercommitteeadvisors;and

• acompensationcommitteeberequiredtoconsider,whenengagingcompensationconsultants,legalcounsel,orotheradvisors,certainindependencefactors,includingfactorsthatexaminetherelationshipbetweentheconsultantoradvisor'semployerandus.

Althoughwedonotcurrentlyintendtoavailourselvesoftheexemptionsfromthesecompensationcommitteerequirements,asa"controlledcompany,"wewillnotbesubjecttothesecompensationcommitteeindependencerequirements.

TableofContents

RisksRelatedtothisOfferingandOwnershipofOurCommonStock

We will incur increased costs and become subject to additional regulations and requirements as a result of becoming a newly public company, and ourmanagement will be required to devote substantial time to new compliance matters, which could lower our profits or make it more difficult to run our business.

Asapubliccompany,wewillincursignificantlegal,accountingandotherexpensesthatwehavenotincurredasaprivatecompany,includingcostsassociatedwithpubliccompanyreportingrequirementsandcostsofrecruitingandretainingnon-executivedirectors.WealsohaveincurredandwillincurcostsassociatedwiththeSarbanes-OxleyActandrelatedrulesimplementedbytheSECandtheNYSE.Theexpensesincurredbypubliccompaniesgenerallyforreportingandcorporategovernancepurposeshavebeenincreasing.Weexpecttheserulesandregulationstoincreaseourlegalandfinancialcompliancecostsandtomakesomeactivitiesmoretime-consumingandcostly,althoughwearecurrentlyunabletoestimatethesecostswithanydegreeofcertainty.Ourmanagementwillneedtodevoteasubstantialamountoftimetoensurethatwecomplywithalloftheserequirements.Theselawsandregulationsalsocouldmakeitmoredifficultorcostlyforustoobtaincertaintypesofinsurance,includingdirectorandofficerliabilityinsurance,andwemaybeforcedtoacceptreducedpolicylimitsandcoverageorincursubstantiallyhighercoststoobtainthesameorsimilarcoverage.Theselawsandregulationscouldalsomakeitmoredifficultforustoattractandretainqualifiedpersonstoserveonourboardofdirectors,ourboardcommitteesorasourexecutiveofficers.Furthermore,ifweareunabletosatisfyourobligationsasapubliccompany,wecouldbesubjecttodelistingofourcommonstock,fines,sanctionsandotherregulatoryactionandpotentiallycivillitigation.

There may not be an active trading market for shares of our common stock, which may cause shares of our common stock to trade at a discount from the initialoffering price and make it difficult to sell the shares of common stock you purchase.

Priortothisoffering,therehasnotbeenapublictradingmarketforsharesofourcommonstock.Itispossiblethatafterthisofferinganactivetradingmarketwillnotdeveloporcontinueor,ifdeveloped,thatanymarketwillbesustainedwhichwouldmakeitdifficultforyoutosellyoursharesofcommonstockatanattractivepriceoratall.Theinitialpublicofferingpricepershareofcommonstockwillbedeterminedbyagreementamongthesellingshareholdersandtherepresentativesoftheunderwriters,andmaynotbeindicativeofthepriceatwhichsharesofourcommonstockwilltradeinthepublicmarketafterthisoffering.Themarketpriceofourcommonstockmaydeclinebelowtheinitialofferingpriceandyoumaynotbeabletosellyoursharesofourcommonstockatorabovethepriceyoupaidinthisoffering,oratall.

The market price of shares of our common stock may be volatile, which could cause the value of your investment to decline.

Evenifatradingmarketdevelops,themarketpriceofourcommonstockmaybehighlyvolatileandcouldbesubjecttowidefluctuations.Securitiesmarketsworldwideexperiencesignificantpriceandvolumefluctuations.Thismarketvolatility,aswellasgeneraleconomic,marketorpoliticalconditions,couldreducethemarketpriceofsharesofourcommonstockinspiteofouroperatingperformance.Inaddition,ourresultsofoperationscouldbebelowtheexpectationsofpublicmarketanalystsandinvestorsduetoanumberofpotentialfactors,includingvariationsinourquarterlyresultsofoperations,additionsordeparturesofkeymanagementpersonnel,failuretomeetanalysts'earningsestimates,publicationofresearchreportsaboutourindustry,litigationandgovernmentinvestigations,changesorproposedchangesinlawsorregulationsordifferinginterpretationsorenforcementthereofaffectingourbusinessorthegolfindustry,adversemarketreactiontoanyindebtednesswemayincurorsecuritieswemayissueinthefuture,changesinmarketvaluationsofsimilarcompaniesorspeculationinthepressorinvestmentcommunity,announcementsbyourcompetitorsofsignificant

TableofContents

contracts,acquisitions,dispositions,strategicpartnerships,jointventuresorcapitalcommitments,adversepublicityaboutourindustryinorindividualscandals,andinresponsethemarketpriceofsharesofourcommonstockcoulddecreasesignificantly.Youmaybeunabletoresellyoursharesofcommonstockatorabovetheinitialpublicofferingprice.

Inthepastfewyears,stockmarketshaveexperiencedsignificantpriceandvolumefluctuations.Inthepast,followingperiodsofvolatilityintheoverallmarketandthemarketpriceofacompany'ssecurities,securitiesclassactionlitigationhasoftenbeeninstitutedagainstthesecompanies.Thislitigation,ifinstitutedagainstus,couldresultinsubstantialcostsandadiversionofourmanagement'sattentionandresources.

We have identified material weaknesses in our internal control over financial reporting, and if we are unable to maintain effective internal controls, we maynot be able to produce timely and accurate financial statements, which could have a material adverse effect on our business and stock price.

Asaprivatelyheldcompany,wearenotrequiredtocomplywiththerulesoftheSECimplementingSection404oftheSarbanes-OxleyActandarethereforenotcurrentlyrequiredtomakeaformalassessmentoftheeffectivenessofourinternalcontroloverfinancialreportingforthatpurpose.Uponbecomingapubliccompany,wewillberequiredtocomplywiththeSEC'srulesimplementingSections302and404oftheSarbanes-OxleyAct,whichwillrequiremanagementtocertifyfinancialandotherinformationinourannualandquarterlyreportsandprovideanannualmanagementreportontheeffectivenessofinternalcontroloverfinancialreporting.

InconnectionwiththeauditofourconsolidatedfinancialstatementsfortheyearsendedDecember31,2013,2014and2015,weandourindependentregisteredpublicaccountingfirmidentifiedmaterialweaknessesinourinternalcontroloverfinancialreporting.Amaterialweaknessisadeficiency,oracombinationofdeficiencies,ininternalcontroloverfinancialreporting,suchthatthereisareasonablepossibilitythatamaterialmisstatementofthecompany'sannualorinterimconsolidatedfinancialstatementswillnotbepreventedordetectedonatimelybasis.Wedidnothaveinplaceaneffectivecontrolenvironmentwithasufficientnumberofaccountingpersonnelwiththeappropriatetechnicaltrainingin,andexperiencewith,GAAPtoallowforadetailedreviewofcomplexaccountingtransactionsthatwouldidentifyerrorsinatimelymanner.Further,wedidnotdesignandhaveinplaceformallydocumentedandimplementedprocessesandprocedurestoaddresstheaccountingforincometaxes,derivatives,certaincompensationandbenefits,andfunctionalcurrency,includinginternalcommunicationprotocolsrelatedtomattersimpactingincometaxandbenefitaccounts.Wealsoidentifiedalackofsegregationofdutiesbetweentheabilitytocreateandpostjournalentries.ThelackofadequateaccountingpersonnelandformalprocessesandproceduresresultedinseveralauditadjustmentstoourconsolidatedfinancialstatementsfortheyearsendedDecember31,2013,2014and2015.

Wearecurrentlyintheprocessofremediatingthesematerialweaknessesandaretakingstepsthatwebelievewilladdresstheunderlyingcausesofthematerialweaknesses.Wehaveenlistedthehelpofexternaladvisorstoprovideassistanceintheareasoffinancialaccountingandtaxaccountingintheshortterm,andareevaluatingthelongertermresourceneedsofourvariousfinancialfunctions.Inaddition,wehaveengagedanaccountingfirmtoevaluateanddocumentthedesignandoperatingeffectivenessofourinternalcontrolsandassistwiththeremediationandimplementationofourinternalcontrolsasrequired.Theseremediationmeasuresmaybetimeconsuming,costly,andmightplacesignificantdemandsonourfinancialandoperationalresources.

Inaddition,wehavebegunperformingsystemandprocessevaluationsandtestingofourinternalcontroloverfinancialreportingtoallowmanagementandourindependentregisteredpublicaccountingfirmtoreportontheeffectivenessofourinternalcontroloverfinancialreporting,asrequiredbySection404oftheSarbanes-OxleyAct,withauditorattestationoftheeffectivenessofourinternal

TableofContents

controls,beginningwithourannualreportonForm10-Kforthesecondfiscalyearendingaftertheeffectivenessoftheregistrationstatementofwhichthisprospectusformsapart.Ourtesting,orthesubsequenttestingbyourindependentregisteredpublicaccountingfirm,mayrevealdeficienciesinourinternalcontrolsoverfinancialreportingthataredeemedtobeadditionalmaterialweaknesses,inadditiontothematerialweaknessesdescribedabove.Eachofthematerialweaknessesdescribedaboveoranynewlyidentifiedmaterialweaknesscouldresultinamisstatementofourconsolidatedfinancialstatementsordisclosuresthatwouldresultinamaterialmisstatementofourannualorquarterlyconsolidatedfinancialstatementsthatwouldnotbepreventedordetected.

If(i)wefailtoeffectivelyremediatedeficienciesininternalcontroloverfinancialreporting,(ii)weidentifyadditionalmaterialweaknessesinourinternalcontroloverfinancialreporting,(iii)weareunabletocomplywiththerequirementsofSection404inatimelymannerorassertthatourinternalcontroloverfinancialreportingiseffective,or(iv)ourindependentregisteredpublicaccountingfirmisunabletoexpressanopinionastotheeffectivenessofourinternalcontroloverfinancialreportingorexpressesanopinionthatisqualifiedoradverse,investorsmayloseconfidenceintheaccuracyandcompletenessofourfinancialstatementswhichcouldcausethemarketpriceofourcommonstocktodecline,andwecouldbecomesubjecttosanctionsorinvestigationsbythestockexchangeuponwhichourcommonstockislisted,theSECorotherregulatoryauthorities,andwecouldbedelayedindeliveringfinancialstatements,whichcouldresultinadefaultundertheagreementsgoverningourindebtedness.

We cannot assure you that we will pay dividends on our common stock, and our indebtedness could limit our ability to pay dividends on our common stock.

Aftercompletionofthisoffering,weintendtopaycashdividendsonourcommonstock,subjecttothediscretionofourboardofdirectorsandourcompliancewithapplicablelaw,anddependingon,amongotherthings,ourresultsofoperations,capitalrequirements,financialcondition,contractualrestrictions,restrictionsinourdebtagreementsandinanyequitysecurities,businessprospectsandotherfactorsthatourboardofdirectorsmaydeemrelevant.Becauseweareaholdingcompanyandhavenodirectoperations,weexpecttopaydividends,ifany,onlyfromfundswereceivefromoursubsidiaries,whichmayfurtherrestrictourabilitytopaydividendsasaresultofthelawsoftheirjurisdictionoforganization,agreementsofoursubsidiariesorcovenantsunderanyexistingandfutureoutstandingindebtednessweoroursubsidiariesincur.Certainofourexistingagreementsgoverningindebtedness,includingournewcreditagreement,restrictourabilitytopaydividendsonourcommonstock.Weexpectthatanyfutureagreementsgoverningindebtednesswillcontainsimilarrestrictions.Formoreinformation,see"DividendPolicy"and"DescriptionofIndebtedness."

Ourdividendpolicyentailscertainrisksandlimitations,particularlywithrespecttoourliquidity.Bypayingcashdividendsratherthaninvestingthatcashinourbusinessorrepayingdebt,werisk,amongotherthings,slowingthepaceofourgrowthandhavinginsufficientcashtofundouroperationsorunanticipatedcapitalexpendituresorlimitingourabilitytoincuradditionalborrowings.

Althoughweexpecttopaydividendsaccordingtoourdividendpolicy,wemaynotpaydividendsaccordingtoourpolicy,oratall,if,amongotherthings,wedonothavethecashnecessarytopayourintendeddividends.

Thedeclarationandpaymentofdividendswillbedeterminedatthediscretionofourboardofdirectors,actingincompliancewithapplicablelawandcontractualrestrictions.However,ourboardofdirectorswillbedeterminedbyMagnus,whichiswholly-ownedbyFilaKorea,whichwillcontrolamajorityofthevotingpowerofalloutstandingsharesofourcommonstockupontheclosingofthisofferingandaftergivingeffecttotheShareholderTransaction.Accordingly,thedecisiontodeclareandpaydividendsonourcommonstockinthefuture,aswellastheamountofeachsuchdividendpayment,mayalsodependontheamountsMagnusneedstofundtheinterestpaymentsontheMagnus

TableofContents

TermLoan,otheramountsdueinconnectionwiththeMagnusTermLoanoranypotentialfuturedividendorinterestobligationsunderanyequityordebtusedtorefinancetheMagnusTermLoan.See"TheShareholderTransaction."

Acushnet Holdings Corp. is a holding company with no operations of its own and, as such, it depends on its subsidiaries for cash to fund all of its operationsand expenses, including future dividend payments, if any.

Ouroperationsareconductedalmostentirelythroughoursubsidiariesandourabilitytogeneratecashtomakefuturedividendpayments,ifany,ishighlydependentontheearningsandthereceiptoffundsfromoursubsidiariesviadividendsorintercompanyloans,whichmayberestrictedasaresultofthelawsofthejurisdictionoforganizationofoursubsidiaries,agreementsofoursubsidiariesorcovenantsunderanyexistingandfutureoutstandingindebtednessweoroursubsidiariesincur.

If you purchase shares of common stock sold in this offering, you will incur immediate and substantial dilution.

Theinitialpublicofferingpricepershareisexpectedtobesubstantiallyhigherthantheproformaasadjustednettangiblebookvalue(deficit)pershareimmediatelyafterthisoffering.Asaresult,youwillpayapricepersharethatsubstantiallyexceedsthebookvalueofourassetsaftersubtractingthebookvalueofourliabilities.BasedonourproformaasadjustednettangiblebookvalueasofJune30,2016andtheassumedinitialofferingpriceof$22.50pershare,whichisthemidpointofthepricerangesetforthonthecoverpageofthisprospectus,youwillincurimmediateandsubstantialdilutionintheamountof$20.99pershare,representingthedifferencebetweenourproformaasadjustednettangiblebookvaluepershareandtheassumedinitialpublicofferingprice.See"Dilution."

You may be diluted by the future issuance of additional common stock in connection with our incentive plans, acquisitions or otherwise.

Afterthisofferingwewillhave425,906,402sharesofcommonstockauthorizedbutunissued.Ouramendedandrestatedcertificateofincorporationtobecomeeffectiveinconnectionwiththisofferingwillauthorizeustoissuethesesharesofcommonstockandsecuritiesconvertibleinto,exchangeablefor,orexercisableintoourcommonstockfortheconsiderationandonthetermsandconditionsestablishedbyourboardofdirectorsinitssolediscretion,whetherinconnectionwithacquisitionsorotherwise.Wehavereserved8,190,000sharesforissuanceunderour2015IncentivePlan.See"ExecutiveCompensation."Anysharesofcommonstockthatweissue,includingtosettleourEARsorunderour2015IncentivePlanorotherequityincentiveplansthatwemayadoptinthefuture,woulddilutethepercentageownershipheldbytheinvestorswhopurchasecommonstockinthisoffering.

Future sales, or the perception of future sales, by us or our existing shareholders in the public market following this offering could cause the market price forour common stock to decline.

Thesaleofsubstantialamountsofsharesofourcommonstockinthepublicmarket,ortheperceptionthatsuchsalescouldoccur,includingsalesbyourexistingshareholders,couldharmtheprevailingmarketpriceofsharesofourcommonstock.Thesesales,orthepossibilitythatthesesalesmayoccur,alsomightmakeitmoredifficultforustosellequitysecuritiesinthefutureatatimeandatapricethatwedeemappropriate.Uponcompletionofthisofferingandaftergivingeffectto(i)theautomaticconversionofallofourConvertibleNotesintoanaggregateof32,624,820sharesofourcommonstock,whichwilloccurpriortotheclosingofthisoffering,(ii)theautomaticconversionofourConvertiblePreferredStockintoanaggregateof16,542,243sharesofourcommonstock,whichwilloccurpriortotheclosingofthisoffering,and(iii)theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrantsintoanaggregate3,105,279sharesofourcommonstock,whichoccurredinJuly2016,wewillhaveatotalof74,093,598sharesofourcommonstockoutstanding.Oftheoutstandingshares,the19,333,333sharessoldinthisoffering(or22,233,332sharesifthe

TableofContents

underwritersexercisetheiroptiontopurchaseadditionalshares)willbefreelytradablewithoutrestrictionorfurtherregistrationundertheSecuritiesAct,exceptthatanysharesheldbyouraffiliates,asthattermisdefinedunderRule144oftheSecuritiesAct,maybesoldonlyincompliancewiththelimitationsdescribedin"SharesEligibleforFutureSale."

Theremainingoutstanding54,760,265sharesofcommonstock(or51,860,266sharesiftheunderwritersexercisetheiroptiontopurchaseadditionalsharesinfull)heldbyourexistingshareholdersafterthisofferingwillbesubjecttocertainrestrictionsonresale.We,ourexecutiveofficers,directors,directornomineesandallofourexistingshareholders,includingthesellingshareholders,havesignedlock-upagreementswiththeunderwritersthat,subjecttocertaincustomaryexceptions,restrictthesaleofthesharesofourcommonstockandcertainothersecuritiesheldbythemfor180daysfollowingthedateofthisprospectus.See"Underwriting"foradescriptionoftheselock-upagreements.

Upontheexpirationofthelock-upagreementsdescribedabove,allofsuch54,760,265shares(or51,860,266sharesiftheunderwritersexercisetheiroptiontopurchaseadditionalsharesinfull)willbeeligibleforresaleinapublicmarket,subject,inthecaseofsharesheldbyouraffiliates,tovolume,mannerofsaleandotherlimitationsunderRule144.

WeintendtofileoneormoreregistrationstatementsonFormS-8undertheSecuritiesActtoregistersharesofourcommonstockorsecuritiesconvertibleintoorexchangeableforsharesofourcommonstockissuedpursuanttoour2015IncentivePlan.AnysuchFormS-8registrationstatementswillautomaticallybecomeeffectiveuponfiling.Accordingly,sharesregisteredundersuchregistrationstatementswillbeavailableforsaleintheopenmarket.WeexpectthattheinitialregistrationstatementonFormS-8willcover8,190,000sharesofourcommonstockissuablepursuanttoour2015IncentivePlan.WemayalsofileanadditionaloramendedregistrationstatementonFormS-8priortothesettlementofourEARswhichwillcoversharesofourcommonstockissuablepursuanttoourEARs.

Asrestrictionsonresaleend,themarketpriceofoursharesofcommonstockcoulddropsignificantlyiftheholdersoftheserestrictedsharessellthemorareperceivedbythemarketasintendingtosellthem.Thesefactorscouldalsomakeitmoredifficultforustoraiseadditionalfundsthroughfutureofferingsofoursharesofcommonstockorothersecurities.

Anti-takeover provisions in our organizational documents and Delaware law might discourage or delay acquisition attempts for us that you might considerfavorable.

OuramendedandrestatedcertificateofincorporationandamendedandrestatedbylawstobecomeeffectiveimmediatelypriortotheeffectivenessoftheregistrationstatementofwhichthisprospectusformsapartwillcontainprovisionsthatmaymakethemergeroracquisitionoftheCompanymoredifficultwithouttheapprovalofourboardofdirectors.Amongotherthings:

• althoughwedonothaveastockholderrightsplan,theseprovisionswouldallowustoauthorizetheissuanceofundesignatedpreferredstockinconnectionwithastockholderrightsplanorotherwise,thetermsofwhichmaybeestablishedandthesharesofwhichmaybeissuedwithoutstockholderapproval,andwhichmayincludesupervoting,specialapproval,dividend,orotherrightsorpreferencessuperiortotherightsoftheholdersofcommonstock;

• theseprovisionsprovideforaclassifiedBoardofDirectorswithstaggeredthree-yearterms;

• theseprovisionsrequireadvancenoticefornominationsofdirectorsbystockholdersandforstockholderstoincludematterstobeconsideredatourannualmeetings;

• theseprovisionsprohibitstockholderactionbywrittenconsent;

TableofContents

• theseprovisionsprovidefortheremovalofdirectorsonlyforcauseandonlyuponaffirmativevoteofholdersofatleast662/3%ofthesharesofcommonstockentitledtovotegenerallyintheelectionofdirectorsifMagnusanditsaffiliatesholdlessthan50%ofouroutstandingsharesofcommonstock;and

• theseprovisionsrequiretheamendmentofcertainprovisionsonlybytheaffirmativevoteofatleast662/3%ofthesharesofcommonstockentitledtovotegenerallyintheelectionofdirectorsifMagnusanditsaffiliatesholdlessthan50%ofouroutstandingsharesofcommonstock.

Further,asaDelawarecorporation,wearealsosubjecttoprovisionsofDelawarelaw,whichmayimpairatakeoverattemptthatourshareholdersmayfindbeneficial.Theseanti-takeoverprovisionsandotherprovisionsunderDelawarelawcoulddiscourage,delayorpreventatransactioninvolvingachangeincontroloftheCompany,includingactionsthatourshareholdersmaydeemadvantageous,ornegativelyaffectthetradingpriceofourcommonstock.Theseprovisionscouldalsodiscourageproxycontestsandmakeitmoredifficultforyouandothershareholderstoelectdirectorsofyourchoosingandtocauseustotakeothercorporateactionsyoudesire.

If securities analysts do not publish research or reports about our business or if they downgrade our stock or our sector, our stock price and trading volumecould decline.

Thetradingmarketforourcommonstockwillrelyinpartontheresearchandreportsthatindustryorfinancialanalystspublishaboutusorourbusinessorindustry.Wedonotcontroltheseanalysts.Furthermore,ifoneormoreoftheanalystswhodocoverusdowngradeourstockorourindustry,orthestockofanyofourcompetitors,orpublishinaccurateorunfavorableresearchaboutourbusinessorindustry,thepriceofourstockcoulddecline.Ifoneormoreoftheseanalystsceasescoverageofusorfailstopublishreportsonusregularly,wecouldlosevisibilityinthemarket,whichinturncouldcauseourstockpriceortradingvolumetodecline.

TableofContents

SPECIALNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS

Thisprospectusincludesforward-lookingstatementsthatreflectourcurrentviewswithrespectto,amongotherthings,ouroperationsandfinancialperformance.Theseforward-lookingstatementsareincludedthroughoutthisprospectus,includinginthesectionsentitled"ProspectusSummary,""RiskFactors,""Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations"and"Business"andrelatetomatterssuchasourindustry,businessstrategy,goalsandexpectationsconcerningourmarketposition,futureoperations,margins,profitability,capitalexpenditures,liquidityandcapitalresourcesandotherfinancialandoperatinginformation.Wehaveusedthewords"anticipate,""assume,""believe,""continue,""could,""estimate,""expect,""intend,""may,""plan,""potential,""predict,""project,""future,""will,""seek,""foreseeable"andsimilartermsandphrasestoidentifyforward-lookingstatementsinthisprospectus.

Theforward-lookingstatementscontainedinthisprospectusarebasedonmanagement'scurrentexpectationsandaresubjecttouncertaintyandchangesincircumstances.Wecannotassureyouthatfuturedevelopmentsaffectinguswillbethosethatwehaveanticipated.Actualresultsmaydiffermateriallyfromtheseexpectationsduetochangesinglobal,regionalorlocaleconomic,business,competitive,market,regulatoryandotherfactors,manyofwhicharebeyondourcontrol.Webelievethatthesefactorsinclude,butarenotlimitedto:

• areductioninthenumberofroundsofgolfplayedorinthenumberofgolfparticipants;

• unfavorableweatherconditionsmayimpactthenumberofplayabledaysandroundsplayedinagivenyear;

• macroeconomicfactorsmayaffectthenumberofroundsofgolfplayedandrelatedspendingongolfproducts;

• demographicfactorsmayaffectthenumberofgolfparticipantsandrelatedspendingonourproducts;

• asignificantdisruptionintheoperationsofourmanufacturing,assemblyordistributionfacilities;

• ourabilitytoprocurerawmaterialsorcomponentsofourproducts;

• adisruptionintheoperationsofoursuppliers;

• costofrawmaterialsandcomponents;

• currencytransactionandtranslationrisk;

• ourabilitytosuccessfullymanagethefrequentintroductionofnewproducts;

• ourrelianceontechnicalinnovationandhigh-qualityproducts;

• changesoftheRulesofGolfwithrespecttoequipment;

• ourabilitytoadequatelyenforceandprotectourintellectualpropertyrights;

• involvementinlawsuitstoprotect,defendorenforceourintellectualpropertyrights;

• ourabilitytopreventinfringementofintellectualpropertyrightsbyothers;

• recentchangestoU.S.patentlawsandproposedchangestotherulesoftheU.S.PatentandTrademarkOffice;

• intensecompetitionandourabilitytomaintainacompetitiveadvantageineachofourmarkets;

• limitedopportunitiesforfuturegrowthinsalesofgolfballs,golfshoesandgolfgloves;

TableofContents

• ourcustomers'financialcondition,theirlevelsofbusinessactivityandtheirabilitytopaytradeobligations;

• adecreaseincorporatespendingonourcustomlogogolfballs;

• ourabilitytomaintainandfurtherdevelopoursaleschannels;

• consolidationofretailersorconcentrationofretailmarketshare;

• ourabilitytomaintainandenhanceourbrands;

• seasonalfluctuationsofourbusiness;

• fluctuationsofourbusinessbasedonthetimingofnewproductintroductions;

• risksassociatedwithdoingbusinessglobally;

• compliancewithlaws,regulationsandpolicies,includingtheFCPAorotherapplicableanti-corruptionlegislation;

• ourabilitytosecureprofessionalgolferstoendorseoruseourproducts;

• negativepublicityrelatingtousorthegolferswhouseourproductsorthegolfindustryingeneral;

• ourabilitytoaccuratelyforecastdemandforourproducts;

• adisruptionintheserviceorincreaseincost,ofourprimarydeliveryandshippingservicesorasignificantdisruptionatshippingports;

• ourabilitytomaintainourinformationsystemstoadequatelyperformtheirfunctions;

• cybersecurityrisks;

• theabilityofoureCommercesystemstofunctioneffectively;

• occurrenceofnaturaldisastersorpandemicdiseases;

• impairmentofgoodwillandidentifiableintangibleassets;

• ourabilitytoattractand/orretainmanagementandotherkeyemployeesandhirequalifiedmanagement,technicalandmanufacturingpersonnel;

• ourabilitytoprohibitsalesofourproductsbyunauthorizedretailersordistributors;

• internationalpoliticalinstabilityandterroristactivities;

• ourabilitytogrowourpresenceinexistinginternationalmarketsandexpandintoadditionalinternationalmarkets;

• taxuncertainties,includingpotentialchangesintaxlaws,unanticipatedtaxliabilitiesandlimitationsonutilizationoftaxattributesafteranychangeofcontrol;

• adequatelevelsofcoverageofourinsurancepolicies;

• productliability,warrantyandrecallclaims;

• litigationandotherregulatoryproceedings;

• compliancewithenvironmental,healthandsafetylawsandregulations;

• ourabilitytosecureadditionalcapitalontermsacceptabletousandpotentialdilutionofholdersofourcommonstock;

• ourestimatesorjudgmentsrelatingtoourcriticalaccountingpolicies;

TableofContents

• oursubstantialleverage,abilitytoserviceourindebtedness,abilitytoincurmoreindebtednessandrestrictionsintheagreementsgoverningourindebtedness;

• asale,foreclosure,liquidationorothertransferofthesharesofourcommonstockownedbyMagnusasaresultoftheMagnusTermLoanorotherwise;

• theabilityofourcontrollingshareholdertocontrolsignificantcorporateactivitiesafterthecompletionofthisofferingandtheShareholderTransaction,andourcontrollingshareholder'sinterestsmayconflictwithyours;

• FilaKorea'spledgeofthecommonstockofMagnusandanyfuturepledgesbyFilaKoreaofthecommonstockofMagnus;

• theinsolvencylawsofKoreaaredifferentfromU.S.bankruptcylaws;

• ourstatusasacontrolledcompany;

• increasedcostsandregulatoryrequirementsofbeingapubliccompany;

• ourabilitytomaintaineffectiveinternalcontrolsoverfinancialreporting;

• ourabilitytopaydividends;

• dilutionfromfutureissuancesorsalesofourcommonstock;

• anti-takeoverprovisionsinourorganizationaldocuments;and

• reportsfromsecuritiesanalysts.

Thesefactorsshouldnotbeconstruedasexhaustiveandshouldbereadinconjunctionwiththeothercautionarystatementsthatareincludedinthisprospectus.Shouldoneormoreoftheserisksoruncertaintiesmaterialize,orshouldanyofourassumptionsproveincorrect,ouractualresultsmayvaryinmaterialrespectsfromthoseprojectedintheseforward-lookingstatements.

Anyforward-lookingstatementmadebyusinthisprospectusspeaksonlyasofthedateofthisprospectus.Factorsoreventsthatcouldcauseouractualresultstodiffermayemergefromtimetotime,anditisnotpossibleforustopredictallofthem.Wemaynotactuallyachievetheplans,intentionsorexpectationsdisclosedinourforward-lookingstatementsandyoushouldnotplaceunduerelianceonourforward-lookingstatements.Ourforward-lookingstatementsdonotreflectthepotentialimpactofanyfutureacquisitions,mergers,dispositions,jointventures,investmentsorotherstrategictransactionswemaymake.Weundertakenoobligationtopubliclyupdateorreviewanyforward-lookingstatement,whetherasaresultofnewinformation,futuredevelopmentsorotherwise,exceptasmayberequiredbyanyapplicablesecuritieslaws.

TableofContents

USEOFPROCEEDS

Thesellingshareholdersaresellingall19,333,333sharesofourcommonstockthatarebeingsoldinthisoffering,includingalloftheshares,ifany,thatmaybesoldinconnectionwiththeexerciseoftheunderwriters'optiontopurchaseadditionalsharesfromthesellingshareholders.See"PrincipalandSellingShareholders."

Wewillnotreceiveanyproceedsfromthesaleofsharesofourcommonstockinthisofferingbythesellingshareholders.Wewillpaycertainexpenses,otherthantheunderwritingdiscount,associatedwiththisoffering.

TableofContents

DIVIDENDPOLICY

Aftercompletionofthisoffering,weintendtopayquarterlycashdividendsonourcommonstockcommencinginthefirstquarterof2017,subjecttothediscretionofourboardofdirectorsandourcompliancewithapplicablelaw,anddependingon,amongotherthings,ourresultsofoperations,capitalrequirements,financialcondition,contractualrestrictions,restrictionsinourdebtagreementsandinanyequitysecurities,businessprospectsandotherfactorsthatourboardofdirectorsmaydeemrelevant.Weexpecttopaydividendsinanaggregateamountofapproximately$35.0milliononanannualbasis,whichamountmaybechangedorterminatedinthefutureatanytimewithoutadvancenotice.

Weareaholdingcompanyandsubstantiallyallofouroperationsarecarriedoutbyouroperatingsubsidiary,AcushnetCompany,anditssubsidiaries.Becauseweareaholdingcompany,ourabilitytopaydividendsdependsonourreceiptofcashdividendsfromouroperatingsubsidiary,AcushnetCompany,anditssubsidiaries,whichmayfurtherrestrictourabilitytopaydividendsasaresultofthelawsoftheirjurisdictionoforganization,agreementsofoursubsidiariesorcovenantsunderanyexistingandfutureoutstandingindebtednessweoroursubsidiariesincur.

Certainofouragreementsgoverningindebtedness,includingournewcreditagreement,restrictourabilitytopaydividendsonourcommonstock.Weexpectthatanyfutureagreementsgoverningindebtednesswillcontainsimilarrestrictions.See"DescriptionofIndebtedness"foradescriptionoftherestrictionsonourabilitytopaydividendsunderournewcreditagreement.

Ourdividendpolicyentailscertainrisksandlimitations,particularlywithrespecttoourliquidity.Bypayingcashdividendsratherthaninvestingthatcashorrepayingdebt,werisk,amongotherthings,slowingthepaceofourgrowthandhavinginsufficientcashtofundouroperationsorunanticipatedcapitalexpendituresorlimitingourabilitytoincuradditionalborrowings.

Althoughweexpecttopaydividendsaccordingtoourdividendpolicy,wemaynotpaydividendsaccordingtoourpolicy,oratall,if,amongotherthings,wedonothavethecashnecessarytopayourintendeddividends.

Thedeclarationandpaymentofdividendswillbedeterminedatthediscretionofourboardofdirectors,actingincompliancewithapplicablelawandcontractualrestrictions.However,ourboardofdirectorswillbedeterminedbyMagnus,whichiswholly-ownedbyFilaKorea,whichwillcontrolamajorityofthevotingpowerofalloutstandingsharesofourcommonstockupontheclosingofthisofferingandaftergivingeffecttotheShareholderTransaction.Accordingly,thedecisiontodeclareandpaydividendsonourcommonstockinthefuture,aswellastheamountofeachsuchdividendpayment,mayalsodependontheamountsMagnusneedstofundtheinterestpaymentsontheMagnusTermLoan,otheramountsdueinconnectionwiththeMagnusTermLoanoranypotentialfuturedividendorinterestobligationsunderanyequityordebtusedtorefinancetheMagnusTermLoan.See"TheShareholderTransaction."

Wedidnotdeclareorpayanydividendsonourcommonstockin2013,2014or2015orinthesixmonthsendedJune30,2016.

TableofContents

CAPITALIZATION

Thefollowingtablesetsforthourcashandourcapitalization(whichconsistsof(i)ourcommonstockwarrantliability,(ii)ourtotaldebt,netofdiscountanddebtissuancecosts,(iii)ourConvertiblePreferredStockand(iv)ourtotalequity)asofJune30,2016,on:

• anactualbasis;

• aproformabasistogiveeffectto:

• (x)theautomaticconversionofallofouroutstandingConvertibleNotesintoanaggregateof32,624,820sharesofourcommonstock,whichwilloccurpriortotheclosingofthisofferingand(y)thepaymentincashof$25.0millionofinterestontheConvertibleNotesaccruedfromAugust1,2015to,butnotincluding,June30,2016;and

• theautomaticconversionofallofouroutstandingConvertiblePreferredStockintoanaggregateof16,542,243sharesofourcommonstock,whichwilloccurpriortotheclosingofthisoffering;and

• aproformaasadjustedbasistogivefurthereffectto:

• (x)theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrantsintoanaggregateof3,105,279sharesofourcommonstockatanexercisepriceof$11.11pershareandouruseoftheproceedsfromsuchexercisetoredeemallofouroutstanding7.5%bondsdue2021,whichoccurredinJuly2016and(y)thepaymentincashof$2.4millionofinterestonthe7.5%bondsdue2021accruedfromAugust1,2015to,butnotincluding,June30,2016;

• theRefinancing;and

• theadoptionofouramendedandrestatedcertificateofincorporationandouramendedandrestatedby-lawsinconnectionwiththisoffering.

Youshouldreadthistabletogetherwiththeinformationcontainedinthisprospectus,including"ProspectusSummary—SummaryConsolidatedFinancialData,""SelectedConsolidatedFinancialData,""Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations"andourconsolidatedfinancialstatementsandrelatednotesincludedelsewhereinthisprospectus.

TableofContents

AsofJune30,2016(1)

Actual ProForma ProFormaAsAdjusted

(inthousands,

exceptshareandpersharedata) Cash(2) $ 75,779 $ 50,752 $ 48,363

Commonstockwarrantliability(3) $ 28,996 $ 28,996 —Debt(4): Formercreditfacilities: Formerseniorrevolvingcreditfacility — — —Formerseniortermloanfacility — — —Formerworkingcreditfacilities(5) 20,081 20,081 —

Revolvingcreditfacility(6) — — —Securedfloatingratenotes 374,582 374,582 —7.5%bondsdue2021 30,822 30,822 —ConvertibleNotes 362,490 — —Newseniorsecuredcreditfacilities: Revolvingcreditfacility(7) — — 20,081TermloanAfacility — — 374,582DelayeddrawtermloanAfacility(8) — — —

Otherunsecuredshorttermborrowings(9) 27,664 27,664 27,664Capitalleaseobligations 1,761 1,761 1,761Totaldebt,netofdiscountanddebtissuancecosts 817,400 454,910 424,088

SeriesAredeemableconvertiblepreferredstock,$0.001parvalue,1,838,027sharesauthorizedand1,838,027sharesissuedandoutstanding,actual;nosharesauthorized,issuedandoutstanding,proformaandproformaasadjusted 131,036 — —

Equity: Preferredstock,parvalue$0.001pershare,nosharesauthorized,issuedandoutstanding,actualandproforma;100,000,000sharesauthorizedandnosharesissuedandoutstanding,proformaasadjusted — — —

Commonstock,parvalue$0.001pershare,78,193,494sharesauthorizedand21,821,256sharesissuedandoutstanding,actual;78,193,494sharesauthorizedand70,988,319sharesissuedandoutstanding,proforma;500,000,000sharesauthorizedand74,093,598sharesissuedandoutstanding,proformaasadjusted 22 71 74

Additionalpaid-incapital 310,074 803,551 867,047Accumulatedothercomprehensiveloss,netoftax (74,350) (74,350) (74,350)Retaineddeficit(10) (29,578) (29,578) (33,259)TotalequityattributabletoAcushnetHoldingsCorp. 206,168 699,694 759,512

Noncontrollinginterests 32,208 32,208 32,208Totalequity 238,376 731,902 791,720

Totalcapitalization 1,215,808 1,215,808 1,215,808

(1) Doesnotreflectthepaymentofapproximately$17.3millioninaggregate,consistingof:(i)accruedandunpaidinterestintheamountof$0.2milliononour7.5%bondsdue2021accruingfromJuly1,2016to,butnotincluding,theirredemptiondateonJuly29,2016,(ii)accruedandunpaidinterestintheamountofapproximately$1.8milliononourConvertibleNotesaccruingfromJuly1,2016to,butnotincluding,thedateofpricingofthisoffering,(iii)accruedandunpaid

TableofContents

interestintheamountofapproximately$7.4milliononourConvertibleNotesaccruingfromJuly1,2016to,butnotincluding,theclosingdateofthisoffering,(iv)accruedandunpaiddividendsintheamountofapproximately$0.9milliononourConvertiblePreferredStockfromAugust1,2015to,butnotincluding,thedateofpricingofthisoffering,(v)accruedandunpaiddividendsintheamountofapproximately$3.7milliononourConvertiblePreferredStockfromAugust1,2015to,butnotincluding,theclosingdateofthisofferingand(vi)estimatedfeesandexpensesofapproximately$3.3millionrelatedtothisofferingpayablebyuswhichwehaveincurredsinceJuly1,2016.

WeexpecttopaytheremainingaccruedandunpaidinterestonourConvertibleNotesandtheremainingaccruedandunpaiddividendsonourConvertiblePreferredStockatthepricingortheclosingofthisoffering,asthecasemaybe.Weexpecttopay(i)theremainingaccruedandunpaidinterestonourConvertibleNotes,(ii)theremainingaccruedandunpaiddividendsonourConvertiblePreferredStockand(iii)ourremainingfeesrelatedtothisofferingusingcashonhandand/orborrowingsunderournewrevolvingcreditfacility.

(2) Doesnotincluderestrictedcashof$4.9millionasofJune30,2016.Restrictedcashisprimarilyrelatedtoastandbyletterofcreditusedforinsurancepurposes.Includescashof$15.1millionrelatedtoourFootJoygolfshoejointventure.SeeNote2toourauditedconsolidatedfinancialstatementsandNote1toourunauditedconsolidatedfinancialstatements,eachincludedelsewhereinthisprospectus,forfurtherdetailsonourFootJoygolfshoejointventure.

(3) ConsistsoftheliabilityrelatedtoourcommonstockwarrantsasofJune30,2016,ofwhichtheremainingwarrantswereexercisedbyFilaKoreainJuly2016andresultedintheissuanceof3,105,279aggregatesharesofourcommonstock.Theexerciseofallofouroutstandingcommonstockwarrantsresultedin(i)anincreasetocommonstockofapproximately$3,105reflectingtheparvalueoftheaggregatecommonsharesissuedand(ii)anincreasetoadditionalpaid-incapitalof(A)$34.5millionrelatingtotheissuanceofsharesofourcommonstockuponexerciseofthecommonstockwarrantsand(B)$29.0millionrelatingtothefairvalueofthecommonstockwarrants.

(4) Debtamountspresentedarenetofdiscountanddebtissuancecosts,asapplicable.

(5) ConsistsofourCanadianworkingcreditfacilityandourEuropeanworkingcreditfacility,whichhadoutstandingborrowingsof$7.8millionand$12.3million,respectively,asofJune30,2016.InconnectionwiththeRefinancing,anyamountsoutstandingunderourCanadianworkingcreditfacilityandourEuropeanworkingcreditfacilitywererepaidwithborrowingsunderournewrevolvingcreditfacilityandsuchCanadianworkingcreditfacilityandEuropeanworkingcreditfacilitywereterminated.

(6) ConsistsofaworkingcreditfacilityenteredintowithWellsFargoBank,NationalAssociationonFebruary5,2016,whichworkingcreditfacilityprovidedforborrowingsupto$30.0millionandmaturedonJuly29,2016.InconnectionwiththeRefinancing,amountsoutstandingunderthisworkingcreditfacilitywererepaidwithborrowingsunderournewrevolvingcreditfacility.

(7) Consistsofa$275.0millionnewrevolvingcreditfacility,includinga$20.0millionletterofcreditsub-facility,aC$25.0millionsub-facilityforAcushnetCanadaInc.anda£20millionsub-facilityforAcushnetEuropeLimited.AsofJune30,2016onaproformaasadjustedbasis,wewouldhave

TableofContents

had$227.1millionofavailabilityunderournewrevolvingcreditfacilityaftergivingeffectto$7.8millionofoutstandinglettersofcredit.

(8) UntilJuly28,2017,thecommitmentsunderthenewdelayeddrawtermloanAfacilityintheamountofupto$100.0millionwillbeavailabletomakepaymentsinconnectionwiththefinalpayoutoftheoutstandingEARsundertheEARPlan.

(9) Consistsofamountsoutstandingundercertainlocalcreditfacilitiesatcertainofournon-U.S.subsidiariesandourFootJoygolfshoejointventureinChina.AsofJune30,2016,onaproformaasadjustedbasis,wewouldhavehad$64.0millionavailableunderourlocalcreditfacilitiesthatremainoutstandingaftertheRefinancing.

(10) Retaineddeficitonaproformaasadjustedbasisreflectstheunamortizeddiscountof$3.7millionrelatedtotheredemptionofallofouroutstanding7.5%bondsdue2021.

Theforegoingtabledoesnotreflect:

• 1,225,533sharesofourcommonstockissuablefollowingvestinginsettlementofRSUsandupto2,451,066sharesofourcommonstockissuablefollowingvestinginsettlementofPSUs,ineachcasethatwillbeissuedunderthe2015IncentivePlanasoftheclosingofthisoffering(assumingtheRSUsandPSUstobeissuedinconnectionwiththisofferingaregrantedwithafairmarketvalueof$22.50pershare,whichisthemidpointoftheestimatedinitialpublicofferingpricerangesetforthonthecoverpageofthisprospectus);

• sharesofcommonstockissuableinrespectofthesettlementofupto50%oftheoutstandingEARsatouroption,whichwereissuedundertheEARPlan.

TableofContents

DILUTION

Ifyoupurchaseourcommonstockinthisoffering,yourownershipinterestwillbeimmediatelydilutedtotheextentofthedifferencebetweentheinitialpublicofferingpricepershareandtheproformaasadjustednettangiblebookvalue(deficit)pershareofourcommonstockuponclosingofthisoffering.

Ourhistoricalnettangiblebookvalue(deficit)asofJune30,2016was$(441.1)million,or$(20.22)pershareofourcommonstock.Ourhistoricalnettangiblebookvalue(deficit)representsourtotaltangibleassetslessourtotalliabilitiesandConvertiblePreferredStock,whichisnotincludedwithinourshareholders'equity.Historicalnettangiblebookvalue(deficit)persharerepresentshistoricalnettangiblebook(deficit)dividedby21,821,256sharesofourcommonstockoutstandingasofJune30,2016.

OurproformanettangiblebookvalueasofJune30,2016was$52.4million,or$0.74pershareofourcommonstock.Proformanettangiblebookvaluerepresentstheamountofourtotaltangibleassetslessourtotalliabilities,aftergivingeffectto(i)theautomaticconversionofallofouroutstandingConvertibleNotesintoanaggregateof32,624,820sharesofourcommonstock,whichwilloccurpriortotheclosingofthisofferingand(ii)theautomaticconversionofallofouroutstandingConvertiblePreferredStockintoanaggregateof16,542,243sharesofourcommonstock,whichwilloccurpriortotheclosingofthisoffering.ProformanettangiblebookvaluepersharerepresentsourproformanettangiblebookvaluedividedbythetotalnumberofsharesoutstandingasofJune30,2016,aftergivingeffecttotheautomaticconversionofalloutstandingsharesofourConvertibleNotesandourConvertiblePreferredStockintoanaggregateof49,167,063sharesofourcommonstockpriortotheclosingofthisoffering.

OurproformaasadjustednettangiblebookvalueasofJune30,2016was$112.2million,or$1.51pershareofourcommonstock.Proformaasadjustednettangiblebookvaluerepresentstheamountofourproformatotaltangibleassetslessourproformatotalliabilitiesaftergivingfurthereffectto(i)theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrantsintoanaggregateof3,105,279sharesofourcommonstockandouruseoftheproceedsfromsuchexercisetoredeemallofouroutstanding7.5%bondsdue2021,whichoccurredinJuly2016and(ii)theRefinancing.ProformaasadjustednettangiblebookvaluepersharerepresentsourproformaasadjustednettangiblebookvaluedividedbythetotalnumberofsharesoutstandingasofJune30,2016,aftergivingeffecttotheexercisebyFilaKoreaofallofouroutstandingcommonstockwarrantsintoanaggregateof3,105,279sharesofourcommonstock.Dilutionpersharetonewinvestorsisdeterminedbysubtractingtheproformaasadjustednettangiblebookvaluepersharefromtheinitialpublicofferingpricepersharepaidbynewinvestors.Becauseallofthesharesofourcommonstocktobesoldinthisoffering,includingthosesubjecttotheunderwriters'optiontopurchaseadditionalshares,willbesoldbytheselling

TableofContents

shareholders,therewillbenoincreaseinthenumberofsharesofourcommonstockoutstandingasaresultofthisoffering.Thefollowingtableillustratesthisdilution:

Thefollowingtablesummarizes,onaproformaasadjustedbasisasofJune30,2016,thenumberofsharesofcommonstockpurchasedfromthesellingshareholders(assumingnoexerciseoftheunderwriters'optiontopurchaseadditionalsharesofourcommonstock)andthetotalconsiderationandtheaveragepricepersharepaidbyourexistingshareholdersandbythenewinvestorsinthisoffering,atanassumedinitialpublicofferingpriceof$22.50pershare(themidpointoftheestimatedinitialpublicofferingpricerangesetforthonthecoverpageofthisprospectus).

A$1.00increase(decrease)intheassumedinitialpublicofferingpricewouldincrease(decrease)totalconsiderationpaidbynewinvestors,totalconsiderationpaidbyallshareholdersandaveragepricepersharepaidbynewinvestorsby$19.3million,$19.3millionand$1.00pershare,respectively.Anincrease(decrease)of1.0millioninthenumberofsharesofferedbythesellingshareholders,assumingnochangesintheassumedinitialpublicofferingpricepersharewouldincrease(decrease)totalconsiderationpaidbynewinvestors,totalconsiderationpaidbyallshareholdersandaveragepricepersharepaidbynewinvestorsby$22.5million,$22.5millionand$0.00pershare,respectively.

Theforegoingtablesandcalculationsarebasedon21,821,256sharesofourcommonstockoutstandingasofJune30,2016andalsogiveseffectto(i)theautomaticconversionofallofouroutstandingConvertibleNotesintoanaggregateof32,624,820sharesofourcommonstockandtheautomaticconversionofallofouroutstandingConvertiblePreferredStockintoanaggregateof16,542,243sharesofourcommonstock,eachofwhichwilloccurpriortotheclosingofthisofferingand(ii)theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrantsintoanaggregateof3,105,279sharesofourcommonstock,whichoccurredinJuly2016,andexcludes:

• 1,225,533sharesofourcommonstockissuablefollowingvestinginsettlementofRSUsandupto2,451,066sharesofourcommonstockissuablefollowingvestinginsettlementofPSUs,ineachcasethatwillbeissuedunderthe2015IncentivePlanasoftheclosingofthisoffering(assumingtheRSUsandPSUstobeissuedinconnectionwiththisofferingaregrantedwitha

Assumedinitialpublicofferingpricepershare $ 22.50Historicalnettangiblebookvalue(deficit)pershareasofJune30,2016 (20.22) Increasepershareattributabletotheproformaadjustmentsdescribedabove 20.96 ProformanettangiblebookvaluepershareasofJune30,2016 0.74 Increasepershareattributabletoproformaasadjustedadjustmentsdescribedabove 0.77

Proformaasadjustednettangiblebookvaluepershare 1.51Dilutionpersharetonewinvestorspurchasingcommonstockinthisoffering $ 20.99

SharesPurchased TotalConsideration

AveragePrice

perShare

Number Percent Amount Percent Existingshareholders 54,760,265 73.91%$ 867,121,000 66.6%$ 15.83NewInvestors 19,333,333 26.09% 434,999,993 33.4%$ 22.50Total 74,093,598 100%$ 1,302,120,993 100%

TableofContents

fairmarketvalueof$22.50pershare,whichisthemidpointoftheestimatedinitialpublicofferingpricerangesetforthonthecoverpageofthisprospectus);

• sharesofourcommonstockissuableinrespectofthesettlementofupto50%oftheoutstandingEARsatouroption,whichwereissuedundertheEARPlan.

NewinvestorsmayexperiencefurtherdilutiontotheextentanyofourRSUsandPSUsvest,anyadditionaloptions,RSUsorPSUsaregrantedandexercised,oranyadditionalsharesofourcommonstockareotherwiseissued.

TableofContents

SELECTEDCONSOLIDATEDFINANCIALDATA

Youshouldreadtheselectedconsolidatedfinancialdatabelowtogetherwiththeconsolidatedfinancialstatementsandrelatednotestheretoappearingelsewhereinthisprospectus,aswellas"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations"andtheotherfinancialinformationincludedelsewhereinthisprospectus.

WehavederivedtheconsolidatedstatementofoperationsdatafortheyearsendedDecember31,2013,2014and2015andtheconsolidatedbalancesheetdataasofDecember31,2014and2015presentedbelowfromourauditedconsolidatedfinancialstatementsincludedelsewhereinthisprospectus.WehavederivedtheconsolidatedstatementofoperationsdatafortheperiodfromJuly30,2011toDecember31,2011andfortheyearendedDecember31,2012andourconsolidatedbalancesheetdataasofDecember31,2011,2012and2013presentedbelowfromourauditedconsolidatedfinancialstatementswhicharenotincludedinthisprospectus.WehavederivedtheconsolidatedstatementofoperationsdatafortheperiodfromJanuary1,2011toJuly29,2011fromtheauditedconsolidatedfinancialstatementsofourPredecessor(asdefinedbelow)thatarenotincludedinthisprospectus.Ourhistoricalauditedresultsarenotnecessarilyindicativeoftheresultsthatshouldbeexpectedinanyfutureperiod.

WehavederivedthehistoricalstatementofoperationsdataandtheconsolidatedstatementofcashflowsdataforthesixmonthsendedJune30,2015andJune30,2016andtheconsolidatedbalancesheetdataasofJune30,2016presentedbelowfromourunauditedconsolidatedfinancialstatementsincludedelsewhereinthisprospectus.Wehavepreparedourunauditedconsolidatedfinancialstatementsonthesamebasisasourauditedconsolidatedfinancialstatementsandhaveincludedalladjustments,consistingonlyofnormalrecurringadjustmentsthat,inouropinion,arenecessarytopresentfairlythefinancialinformationsetforthinthosestatements.Theresultsforanyinterimperiodarenotnecessarilyindicativeoftheresultsthatmaybeexpectedforthefullyearandourhistoricalunauditedresultsarenotnecessarilyindicativeoftheresultsthatshouldbeexpectedinanyfutureperiod.

TheproformabalancesheetdataasofJune30,2016andtheproformabasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingCorp.andtheproformabasicanddilutedweightedaveragenumberofsharesfortheyearendedDecember31,2015andthesixmonthsendedJune30,2016presentedbelowareunauditedandgiveeffectto(i)theautomaticconversionofallofouroutstandingConvertibleNotesintoanaggregateof32,624,820sharesofourcommonstock,whichwilloccurpriortotheclosingofthisoffering,(ii)withrespecttotheproformabalancesheetdata,thepaymentincashof$25.0millionofinterestontheConvertibleNotesaccruedfromAugust1,2015to,butnotincluding,June30,2016and(iii)theautomaticconversionofallofouroutstandingConvertiblePreferredStockintoanaggregateof16,542,243sharesofourcommonstock,whichwilloccurpriortotheclosingofthisoffering.TheproformabalancesheetdatagiveseffecttotheforegoingtransactionsassumingtheyoccurredonJune30,2016andtheproformabasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.giveseffecttotheforegoingtransactionsassumingtheyoccurredonJanuary1,2015.TheproformadataisnotnecessarilyindicativeofwhatourfinancialpositionorbasicordilutednetincomepercommonshareattributabletoAcushnetHoldingCorp.wouldhavebeeniftheforegoingtransactionshadbeencompletedasofJune30,2016orfortheyearendedDecember31,2015orthesixmonthsendedJune30,2016,norissuchdatanecessarilyindicativeofourfinancialpositionorbasicordilutednetincome(loss)percommonshareattributabletoAcushnetHoldingCorp.foranyfuturedateorperiod.

TheproformaasadjustedbalancesheetdataasofJune30,2016andtheproformaasadjustedbasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.andtheproformaasadjustedbasicanddilutedweightedaveragenumberofsharesfortheyearendedDecember31,2015andthesixmonthsendedJune30,2016presentedbelowareunauditedandgivefurthereffectto(i)theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrantsintoan

TableofContents

aggregateof3,105,279sharesofourcommonstockatanexercisepriceof$11.11pershareandouruseoftheproceedsfromsuchexercisetoredeemallofouroutstanding7.5%bondsdue2021,whichoccurredinJuly2016,(ii)withrespecttotheproformaasadjustedbalancesheetdata,thepaymentincashof$2.4millionofinterestonthe7.5%bondsdue2021fromAugust1,2015to,butnotincluding,June30,2016and(iii)theRefinancing.TheproformaasadjustedbalancesheetdatagiveseffecttotheforegoingtransactionsassumingtheyoccurredonJune30,2016andtheproformaasadjustedbasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.giveseffecttotheforegoingtransactionsassumingtheyoccurredonJanuary1,2015.TheproformaasadjusteddataisnotnecessarilyindicativeofwhatourfinancialpositionorbasicordilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.wouldhavebeeniftheforegoingtransactionshadbeencompletedasofJune30,2016orfortheyearendedDecember31,2015orthesixmonthsendedJune30,2016,norissuchdatanecessarilyindicativeofourfinancialpositionorbasicordilutednetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.foranyfuturedateorperiod.

AsaresultoftheAcquisition,anewbasisofaccountingwascreatedbeginningJuly29,2011.Inthisprospectus,theperiodspriortotheAcquisitionarereferredtoasthe"Predecessor"periods,whichrepresentsAcushnetCompanyandallofitsconsolidatedsubsidiaries,andtheperiodsaftertheAcquisitionarereferredtoasthe"Successor"periods,whichrepresentAcushnetHoldingsCorp.andallofitsconsolidatedsubsidiaries,includingAcushnetCompany.DuetotheAcquisition,the

TableofContents

consolidatedfinancialstatementsfortheSuccessorperiodsarenotnecessarilycomparabletothoseofthePredecessorperiodspresentedinthisprospectus.

Predecessor Successor

January1-July29,

July30-December31,

SixmonthsendedJune30,

YearendedDecember31,

2011 2011 2012 2013 2014 2015 2015 2016 (inthousands,exceptshareandpersharedata) ConsolidatedStatementsofOperationsData:(1)(2)

Netsales $ 878,902 $ 457,159 $ 1,451,058 $ 1,477,219 $ 1,537,610 $ 1,502,958 $ 862,874 $ 902,995Costofgoodssold 444,393 317,812 753,096 744,090 779,678 727,120 409,929 443,754Grossprofit 434,509 139,347 697,962 733,129 757,932 775,838 452,945 459,241

Operatingexpenses: Selling,generalandadministrative 302,740 209,150 566,999 568,421 602,755 604,018 313,007 306,771Researchanddevelopment 20,844 16,845 41,598 42,152 44,243 45,977 22,628 22,823Intangibleamortization 83 2,893 6,733 6,704 6,687 6,617 3,313 3,303Restructuringandothercharges 11,287 1,881 2,477 955 — 1,643 — 642Income(loss)fromoperations 99,555 (91,422) 80,155 114,897 104,247 117,583 113,997 125,702

Interestexpense,net 1,537 29,503 69,185 68,149 63,529 60,294 30,530 28,404

Other(income)expense,net 306 1,498 (14,729) 5,285 (1,348) 25,139 9,934 3,838Income(loss)beforeincometaxes 97,712 (122,423) 25,699 41,463 42,066 32,150 73,533 93,460

Incometaxexpense(benefit) 46,159 (41,678) 7,555 17,150 16,700 27,994 36,919 39,438Netincome(loss) 51,553 (80,745) 18,144 24,313 25,366 4,156 36,614 54,022

Less:Netincome(loss)attributabletononcontrollinginterests (2,151) 189 (4,271) (4,677) (3,809) (5,122) (3,158) (1,953)

Netincome(loss)attributabletoAcushnetHoldingsCorp. $ 49,402 $ (80,556) $ 13,873 $ 19,636 $ 21,557 $ (966) $ 33,456 $ 52,069

Dividendspaidtopreferredshareholders — — (8,045) (8,045) (8,045) (8,045) — —

Accruingofcumulativedividends — (5,694) (5,741) (5,740) (5,740) (5,740) (6,836) (6,855)Allocationofundistributedearningstopreferredshareholders — — (53) (3,225) (3,866) — (12,548) (19,496)

Netincome(loss)attributabletocommonshareholders—basic 49,402 (86,250) 34 2,626 3,906 (14,751) 14,072 25,718

Netincome(loss)attributabletocommonshareholders—diluted(3) $ 49,402 $ (86,250) $ 34 $ 2,626 $ 3,906 $ (14,751) $ 26,751 $ 41,418

PerShareData: Netincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.—basic(4) $ 49,402.00 $ (9.58) $ 0.00 $ 0.19 $ 0.23 $ (0.74) $ 0.76 $ 1.18

Netincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.—diluted(5) 49,402.00 (9.58) 0.00 0.19 0.23 (0.74) 0.52 0.76

Weightedaveragenumberofcommonshares—basic(3) 1,000 9,000,000 10,322,055 13,471,308 16,716,825 19,939,293 18,551,790 21,821,256

Weightedaveragenumberofcommonshares—diluted(5) 1,000 9,000,000 10,322,055 13,471,308 16,716,825 19,939,293 51,265,755 54,449,955

ProformanetincomepercommonshareattributabletoAcushnetHoldingsCorp.—basicanddiluted(6) $ 0.24 $ 0.86

Proformaweightedaveragenumberofcommonshares—basic(6) 69,106,356 70,988,319

Proformaweightedaveragenumberofcommonshares—diluted(6) 69,107,445 70,992,198

ProformaasadjustednetincomepercommonshareattributabletoAcushnetHoldingsCorp.—basicanddiluted(7) $ 0.77 $ 0.95

Proformaasadjustedweightedaveragenumberofcommonshares—basic(7) 72,211,635 74,093,598

Proformaasadjustedweightedaveragenumberofcommonshares—diluted(7) 72,212,724 74,097,477

(1) ThetableabovesetsforthourresultsofoperationsfortheperiodfromJanuary1,2011toJuly29,2011(Predecessor),andtheperiodJuly30,2011toDecember31,2011(Successor).ThefinancialresultsfortheSuccessorperiodincludetheimpactofapplyingpurchaseaccounting,including$67.1millioncostofgoodssoldrelatedtothestep-upofinventory,$0.2millioncostofgoodssoldrelatedtotheamortizationofleaseholdinterestliability,$2.8millionofintangibleamortizationexpenserelatedtotheamortizationofdefinite-livedintangibleassetsand$0.7millionofdepreciationexpenserelatedtothestep-upofproperty,plantandequipment,whichisreflectedincostofgoodssold,selling,generalandadministrativeexpenseandresearchanddevelopmentexpense.ThefinancialresultsfortheSuccessorperiodalsoincludea$2.1millionnon-recurringexpenserelatedtothechangeofcontrolunderourlong-termincentiveplan.Inaddition,inconnectionwiththeAcquisition,weissuedanaggregateprincipalamountof$362.5millionofourConvertibleNotes,anaggregateprincipalamountof$172.5millionof7.5%bondsdue2021withrelatedwarrantstopurchaseourcommonstock,andanaggregateprincipalamountof$500.0millionofsecuredfloatingratenotes,andenteredintoaseniorrevolvingcreditfacilityandaseniortermloanfacility,resultinginanincreaseininterestexpenseof$28.4million.EachofthePredecessorandSuccessorresultsfortheperiodfromJanuary1,2011toJuly29,2011,andtheperiodfromJuly30,2011toDecember31,2011,respectively,havebeenauditedandareconsistentwithGAAP.

PleasealsoseeourpresentationofAdjustedEBITDAbelowwhichexcludestheimpactoftheAcquisitionandrelatedtransactionshadoncertainitemsinourconsolidatedstatementsofoperationsdata,includingrelatingto(i)thestep-upininventoryduetoapurchaseaccountingadjustmentrelatingtotheAcquisition,(ii)theincreasedinterestexpenserelatingtotheindebtednessincurredinconnectionwiththeAcquisitionand(iii)thetransactionfeesincurredbytheCompanyinconnectionwiththeAcquisition.

TableofContents

(2) ThetablebelowsetsforthourunauditedcombinedresultsofoperationsonacombinedbasisfortheyearendedDecember31,2011.TheunauditedcombinedresultsofoperationsfortheyearendedDecember31,2011representsthemathematicaladditionofourPredecessor'sresultsofoperationsfromJanuary1,2011toJuly29,2011,andtheSuccessor'sresultsofoperationsfromJuly30,2011toDecember31,2011.ThepresentationofthisunauditedcombinedfinancialinformationfortheyearendedDecember31,2011isnotconsistentwithGAAPorwiththeproformarequirementsofArticle11ofRegulationS-X.WehaveincludedtheunauditedcombinedresultsofoperationsasaconveniencesolelyforthepurposeoffacilitatingacomparisonofthecombinedresultsofoperationswithourotheryearspresentedandtheCompanybelievesthatthepresentationofresultsforthecombinedperiodisusefultoinvestorsasabasisforcomparingtheresultsofthecombinedperiodagainsttheresultsoftheotherannualperiodspresented.SuchresultsarenotnecessarilyindicativeofwhattheresultsforthecombinedperiodwouldhavebeenhadtheAcquisitionnotoccurred.

2011CombinedPeriod

(inthousands,exceptshareandper

sharedata) UnauditedNon-GAAPConsolidatedStatementsofOperationsData(Combined): Netsales $ 1,336,061Costofgoodssold 762,205Grossprofit 573,856

Operatingexpenses: Selling,generalandadministrative 511,890Researchanddevelopment 37,689Intangibleamortization 2,976Restructuringandothercharges 13,168Income(loss)fromoperations 8,133

Interestexpense,net 31,040

Other(income)expense,net 1,804Income(loss)beforeincometaxes (24,711)

Incometaxexpense(benefit) 4,481Netincome(loss) (29,192)

Less:Netincome(loss)attributabletononcontrollinginterests (1,962)Netincome(loss)attributabletoAcushnetHoldingsCorp. $ (31,154)Dividendspaidtopreferredshareholders Accruingofcumulativedividends (5,694)Allocationofundistributedearningstopreferredshareholders Netincome(loss)attributabletocommonshareholders—basic (36,848)Netincome(loss)attributabletocommonshareholders—diluted $ (36,848)

(3) Reflectstheimpacttonetincome(loss)attributabletocommonshareholdersofdilutivesecurities.Dilutednetincome(loss)attributabletocommonshareholdersfortheperiodfromJuly30,2011toDecember31,2011andeachoftheyearsendedDecember31,2013,2014and2015doesnotincludetheeffectsof(i)theconversionoftheConvertiblePreferredStocktocommonshares,(ii)theconversionoftheConvertibleNotestocommonshares,(iii)theexerciseofouroutstandingcommonstockwarrantsor(iv)theexerciseofthenoutstandingstockoptions,astheinclusionoftheseinstrumentswouldhavebeenanti-dilutivefortheperiodfromJuly30,2011toDecember31,2011andeachoftheyearsendedDecember31,2013,2014and2015.Dilutednetincome(loss)attributabletocommonshareholdersforthesixmonthsendedJune30,2015and2016doesnotincludetheeffectsof(i)theconversionoftheConvertiblePreferredStocktocommonsharesor(ii)theexerciseofouroutstandingcommonstockwarrants,astheinclusionoftheseinstrumentswouldhavebeenanti-dilutiveforeachofthesixmonthsendedJune30,2015and2016.

(4) Basicnetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.iscomputedbydividing(A)netincome(loss)attributabletoAcushnetHoldingsCorp.afteradjustingfor(i)dividendspaidandaccruedand(ii)allocationsofundistributedearningstopreferredshareholders,by(B)basicweightedaveragecommonsharesoutstanding.

(5) Dilutednetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.iscomputedbydividing(A)netincome(loss)attributabletoAcushnetHoldingsCorp.afteradjustingfor(i)dividendspaidandaccrued,(ii)allocationsofundistributedearningstopreferredshareholdersand(iii)theimpactstonetincome(loss)ofanypotentiallydilutivesecurities,by(B)thedilutedweightedaveragecommonsharesoutstanding,whichhasbeenadjustedtoincludeanypotentiallydilutivesecurities.Dilutednetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.foreachoftheyearsendedDecember31,2013,2014and2015doesnotincludetheeffectsof(i)theconversionoftheConvertiblePreferredStocktocommonshares,(ii)theconversionoftheConvertibleNotestocommonshares,(iii)theexerciseofouroutstandingcommonstockwarrantsor(iv)theexerciseofthenoutstandingstockoptions,astheinclusionoftheseinstrumentswouldhavebeenanti-dilutivefortheperiodfromJuly30,2011throughDecember31,2011,foreachoftheyearsendedDecember31,2012,2013,2014and2015.Dilutednetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.forthesixmonthsendedJune30,2015and2016doesnotincludetheeffectsof(i)theconversionoftheConvertiblePreferredStocktocommonsharesor(ii)theexerciseofouroutstandingcommonstockwarrants,astheinclusionoftheseinstrumentswouldhavebeenanti-dilutiveforeachofthesixmonthsendedJune30,2015and2016.FortheperiodfromJanuary1,2011throughJuly29,2011therearenopotentiallydilutivesecuritiesoutstanding.

(6) SeeNote20toourauditedconsolidatedfinancialstatementsandNote14toourunauditedconsolidatedfinancialstatements,eachincludedelsewhereinthisprospectus,forfurtherdetailsonthecalculationofproformabasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.

(7) ProformaasadjustedbasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.representsproformanetincomepercommonshareattributabletoAcushnetHoldingsCorp.aftergivingfurthereffectto(i)theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrantsintoanaggregateof3,105,279sharesofourcommonstockatanexercisepriceof$11.11pershareandouruseoftheproceedsfromsuchexercisetoredeemallofouroutstanding7.5%bondsdue2021,whichoccurredinJuly2016and(ii)theRefinancing,asifeachoftheseeventsoccurredonJanuary1,2015.See"Prospectus

TableofContents

Summary—SummaryConsolidatedFinancialData"forthecalculationofproformaasadjustedbasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.

AsofDecember31, AsofJune30, 2011 2012 2013 2014 2015 2016

Actual ProForma

ProFormaAs

Adjusted (inthousands) BalanceSheetData(1): Cash(2) $ 70,934 $ 45,607 $ 49,257 $ 47,667 $ 54,409 $ 75,779 $ 50,752 $ 48,363Currentassetslesscurrentliabilities,excludingthecurrentportionofourlong-termdebtandEARPlanliability 272,726 321,701 319,445 339,301 345,114 378,628 378,628 407,624

Totalassets 1,755,946 1,742,670 1,745,038 1,762,703 1,758,973 1,807,135 1,782,108 1,779,719Commonstockwarrantliability 16,257 4,417 3,705 1,818 22,884 28,996 28,996 —Long-termdebt,netofdiscount,includingcurrentportion,andcapitalleaseobligations(3) 1,052,474 985,211 929,590 873,542 797,151 769,215 406,725 375,903

EARPlanliability,includingcurrentportion(4) — 41,056 69,927 122,013 169,566 153,533 153,533 153,533Totalliabilities 1,542,465 1,494,149 1,438,708 1,442,747 1,434,431 1,437,723 1,050,206 987,999ConvertiblePreferredStock 128,126 131,036 131,036 131,036 131,036 131,036 — —TotalequityattributabletoAcushnetHoldingsCorp. 50,479 85,838 143,171 156,587 160,251 206,168 699,694 759,512

Totalequity 85,355 117,485 175,295 188,920 193,506 238,376 731,902 791,720

(1) Doesnotreflectthepaymentofapproximately$17.3millioninaggregate,consistingof:(i)accruedandunpaidinterestintheamountof$0.2milliononour7.5%bondsdue2021accruingfromJuly1,2016to,butnotincluding,theirredemptiondateonJuly29,2016,(ii)accruedandunpaidinterestintheamountofapproximately$1.8milliononourConvertibleNotesaccruingfromJuly1,2016to,butnotincluding,thedateofpricingofthisoffering,(iii)accruedandunpaidinterestintheamountofapproximately$7.4milliononourConvertibleNotesaccruingfromJuly1,2016to,butnotincluding,theclosingdateofthisoffering,(iv)accruedandunpaiddividendsintheamountofapproximately$0.9milliononourConvertiblePreferredStockfromAugust1,2015to,butnotincluding,thedateofpricingofthisoffering,(v)accruedandunpaiddividendsintheamountofapproximately$3.7milliononourConvertiblePreferredStockfromAugust1,2015to,butnotincluding,theclosingdateofthisofferingand(vi)estimatedfeesandexpensesofapproximately$3.3millionrelatedtothisofferingpayablebyuswhichwehaveincurredsinceJuly1,2016.

WeexpecttopaytheremainingaccruedandunpaidinterestonourConvertibleNotesandtheremainingaccruedandunpaiddividendsonourConvertiblePreferredStockatthepricingortheclosingofthisoffering,asthecasemaybe.Weexpecttopay(i)theremainingaccruedandunpaidinterestonourConvertibleNotes,(ii)theremainingaccruedandunpaiddividendsonourConvertiblePreferredStockand(iii)ourremainingfeesandexpensesrelatedtothisofferingusingcashonhandand/orborrowingsunderournewrevolvingcreditfacility.

(2) Doesnotincluderestrictedcashof$14.4million,$6.9million,$6.6million,$6.1million,$4.7millionand$4.9millionasofDecember31,2011,2012,2013,2014and2015andJune30,2016,respectively.Restrictedcashisprimarilyrelatedtoastandbyletterofcreditusedforinsurancepurposes.Includescashof$7.4million,$4.0million,$5.7million,$7.7million,$10.0millionand$15.1millionasofDecember31,2011,2012,2013,2014and2015andJune30,2016,respectively,relatedtoourFootJoygolfshoejointventure.SeeNote2toourauditedconsolidatedfinancialstatementsandNote1toourunauditedconsolidatedfinancialstatements,eachincludedelsewhereinthisprospectus,forfurtherdetailsonourFootJoygolfshoejointventure.

(3) Long-termdebt,netofdiscount,includingcurrentportion,andcapitalleaseobligationsconsistsof(i)long-termdebtandcapitalleaseobligationsand(ii)theportionofanylong-termdebtthatisclassifiedasacurrentliabilityonourbalancesheet,ineachcasenetofanyunamortizeddiscountonsuchoutstandingamounts.

Thefollowingtableshowshowlong-termdebt,netofdiscount,includingcurrentportion,andcapitalleaseobligationswascalculatedfortherelevantperiods:

AsofDecember31, AsofJune30,

Actual Actual ProForma

ProFormaAs

Adjusted 2011 2012 2013 2014 2015 2016 (inthousands) Short-termdebt $ 67,832 $ 61,010 $ 76,159 $ 81,162 $ 441,704 $ 422,328 $ 422,328 $ 47,746Long-termdebtandcapitalleaseobligations 1,002,474 935,211 879,590 824,179 394,511 394,632 32,142 375,902Totaldebt 1,070,306 996,221 955,749 905,341 836,215 816,960 454,470 423,648Less:short-termfinancingarrangements (17,832) (11,010) (26,159) (31,799) (39,064) (47,745) (47,745) (47,745)Long-termdebt,netofdiscount,includingcurrentportion,andcapitalleaseobligations $1,052,474 $ 985,211 $ 929,590 $ 873,542 $ 797,151 $ 769,215 $ 406,725 $ 375,903

(a) Excludesanylong-termdebtthatisclassifiedasacurrentliabilityonourbalancesheetandconsistsofamountsoutstandingunder(i)revolvingcreditfacilitiesand(ii)termloanfacilitiesandotherfinancingarrangementsthatmaturewithinoneyearoforiginalissuance.

(4) TheEARsasstructureddonotqualifyforequityaccountingtreatment.Assuch,theliabilitywasre-measuredateachreportingperiodbasedonourthen-currentprojectionofourCSEvalue.See"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—CriticalAccountingPoliciesandEstimates—Share-BasedCompensation."TheEARswillaccrete$1.1millionofinterestfortheremainderoftheyearended

TableofContents

December31,2016.TheEARPlanexpiresonDecember31,2016andamountsearnedundertheEARPlanmustbepaidwithintwoandahalfmonthsaftertheexpirationdate.

January1-July29,

July30-December31,

2011 2011 2012 2013 2014 2015 2015 2016 (inthousands) ConsolidatedStatementsofCashFlowsData(1):

Cashflowsprovidedby(usedin): Operatingactivities $ 26,591 $ 24,489 $ 55,506 $ 78,795 $ 54,113 $ 91,830 $ 36,070 $ 55,487Investingactivities 56,849 (1,302,207) (19,864) (46,360) (23,164) (21,839) (9,071) (8,156)Financingactivities (223,290) 1,350,894 (61,444) (28,179) (30,154) (60,057) (4,876) (27,796)

(1) ThetablebelowsetsforthourunauditedcashflowdataonacombinedbasisfortheyearendedDecember31,2011.TheunauditedcombinedcashflowdatafortheyearendedDecember31,2011representsthemathematicaladditionofourPredecessor'scashflowdatafromJanuary1,2011toJuly29,2011,andtheSuccessor'scashflowdatafromJuly30,2011toDecember31,2011.ThepresentationofthisunauditedcombinedfinancialinformationfortheyearendedDecember31,2011isnotconsistentwithGAAPorwiththeproformarequirementsofArticle11ofRegulationS-X.WehaveincludedtheunauditedcombinedcashflowdataasaconveniencesolelyforthepurposeoffacilitatingacomparisonofthecombinedcashflowdatawithourotheryearspresentedandtheCompanybelievesthatthepresentationofresultsforthecombinedperiodisusefultoinvestorsasabasisforcomparingthecashflowdataofthecombinedperiodagainstthecashflowdataoftheotherannualperiodspresented.SuchresultsarenotnecessarilyindicativeofwhattheresultsforthecombinedperiodwouldhavebeenhadtheAcquisitionnotoccurred.

2011CombinedPeriod

(inthousands) UnauditedNon-GAAPConsolidatedStatementsofCashFlowsData(Combined): Cashflowsprovidedby(usedin): Operatingactivities $ 51,080Investingactivities (1,245,358)Financingactivities 1,127,604

January1-July29,

July30-December31,

2011 2011 2012 2013 2014 2015 2015 2016 (inthousands) OtherFinancialData(1): AdjustedEBITDA(2) $ 128,649 $ 9,716 $ 164,597 $ 190,407 $ 202,593 $ 214,721 $ 160,389 $ 164,350AdjustedNetIncome(3) 57,424 (10,754) 59,375 68,387 80,499 86,721 75,297 79,558FreeCashFlow(4) 15,684 16,113 28,297 32,336 30,586 68,629 25,661 47,371

(1) ThetablebelowsetsforthAdjustedEBITDA,AdjustedNetIncomeandFreeCashFlowonacombinedbasisfortheyearendedDecember31,2011.ThisunauditedfinancialdatafortheyearendedDecember31,2011representsthemathematicaladditionofourPredecessor'sAdjustedEBITDA,AdjustedNetIncomeandFreeCashFlowfromJanuary1,2011toJuly29,2011,andtheSuccessor'sAdjustedEBITDA,AdjustedNetIncomeandFreeCashFlowfromJuly30,2011toDecember31,2011.ThepresentationofthisunauditedcombinedfinancialdatafortheyearendedDecember31,2011isnotconsistentwithGAAPorwiththeproformarequirementsofArticle11ofRegulationS-X.WehaveincludedthisunauditedcombinedfinancialdataasaconveniencesolelyforthepurposeoffacilitatingacomparisonofAdjustedEBITDA,AdjustedNetIncomeandFreeCashFlowwithourotheryearspresentedandtheCompanybelievesthatthepresentationofresultsforthecombinedperiodisusefultoinvestorsasabasisforcomparingtheAdjustedEBITDA,AdjustedNetIncomeandFreeCashFlowofthecombinedperiodagainsttheAdjustedEBITDA,AdjustedNetIncomeandFreeCashFlowoftheotherannualperiodspresented.SuchresultsarenotnecessarilyindicativeofwhattheresultsforthecombinedperiodwouldhavebeenhadtheAcquisitionnotoccurred.

2011CombinedPeriod

(inthousands) UnauditedNon-GAAPOtherFinancialData(Combined): AdjustedEBITDA $ 138,365AdjustedNetIncome 46,670FreeCashFlow 31,797

(2) AdjustedEBITDArepresentsnetincome(loss)attributabletoAcushnetHoldingsCorp.plusincometaxexpense,interestexpense,depreciationandamortization,theexpensesrelatingtoourEARPlan,share-basedcompensationexpense,aone-timeexecutivebonus,restructuringcharges,Predecessorcompensationexpenses,plantstart-upcosts,certaintransactionfees,astep-upininventoryduetoapurchaseaccountingadjustmentrelatingtotheAcquisition,indemnificationexpense(income)fromourformerownerBeam,(gains)lossesonthefairvalueofourcommonstockwarrants,certainothernon-cashgains,netandthenetincome(loss)relatingtononcontrollinginterestsinourFootJoygolfshoejointventure.WedefineAdjustedEBITDAinamannerconsistentwiththeterm"ConsolidatedEBITDA"asitisdefinedinournewcreditagreement.ConsolidatedEBITDAisusedinournewcreditagreementattheAcushnetCompanylevelforpurposesofcertainmaterialterms,including(i)determiningtheapplicablemarginusedtodeterminetheinterestrateperannumofoutstandingborrowingsandcommitmentfeesforrevolvingcommitments,(ii)calculatingcertainfinancialratiosusedinfinancialmaintenancecovenantsthatrequirecomplianceonaquarterlybasis,(iii)determiningourabilitytoincuradditionaltermloansorincreasestoournewrevolvingcreditfacilityand(iv)determiningtheavailabilityofcertainbasketsandtheabilitytoenterintocertaintransactions.See"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—LiquidityandCapitalResources—Indebtedness"and"DescriptionofIndebtedness"forfurtherdiscussionofhowConsolidatedEBITDAisusedincertainmaterialtermsofournewcreditagreement.

TableofContents

WepresentAdjustedEBITDAasasupplementalmeasurebecauseitexcludestheimpactofcertainitemsthat(i)wedonotconsiderindicativeofourongoingoperatingperformance,(ii)thatrelatetotheAcquisitionor(iii)thatrelatetoourhistoricalcapitalstructurethatwillnolongerberelevantaftertheclosingofthisoffering.ManagementusesAdjustedEBITDAtoevaluatetheeffectivenessofourbusinessstrategies,assessourconsolidatedoperatingperformanceandmakedecisionsregardingpricingofourproducts,gotomarketexecutionandcoststoincuracrossourbusiness.AdjustedEBITDAisalsousedasafinancialperformancemeasureforpurposesofdeterminingthevestingofequityawardsthatweregrantedunderour2015IncentivePlan.

WealsobelieveAdjustedEBITDAprovidesusefulinformationtoinvestorsregarding(i)ourconsolidatedoperatingperformance,(ii)ourcapacitytoservicedebt,(iii)theapplicablemarginusedtodeterminetheinterestrateperannumofoutstandingborrowingsandcommitmentfeesforrevolvingcommitmentsand(iv)ourcapacitytoincuradditionaldebtandutilizecertainbasketsandenterintotransactionsthatmayotherwiseberestrictedbyournewcreditagreement.BypresentingAdjustedEBITDA,weprovideabasisforcomparisonofourbusinessoperationsbetweendifferentperiodsbyexcludingitemsthatwedonotbelieveareindicativeofourcoreoperatingperformance.AdjustedEBITDAisnotameasurementoffinancialperformanceunderGAAP.Itshouldnotbeconsideredanalternativetonetincome(loss)attributabletoAcushnetHoldingsCorp.asameasureofouroperatingperformanceoranyothermeasureofperformancederivedinaccordancewithGAAP.Inaddition,AdjustedEBITDAshouldnotbeconstruedasaninferencethatourfutureresultswillbeunaffectedbyunusualornon-recurringitems,oraffectedbysimilarnon-recurringitems.AdjustedEBITDAhaslimitationsasananalyticaltool,andyoushouldnotconsidersuchmeasureeitherinisolationorasasubstituteforanalyzingourresultsasreportedunderGAAP.OurdefinitionandcalculationofAdjustedEBITDAisnotnecessarilycomparabletoothersimilarlytitledmeasuresusedbyothercompaniesduetodifferentmethodsofcalculation.

Thefollowingtableprovidesareconciliationofnetincome(loss)attributabletoAcushnetHoldingsCorp.toAdjustedEBITDA:

January1-July29,

July30-December31,

2011(a) 2011(a) 2012 2013 2014 2015 2015 2016 (inthousands) Netincome(loss)attributabletoAcushnetHoldingsCorp. $ 49,402 $ (80,556) $ 13,873 $ 19,636 $ 21,557 $ (966) $ 33,456 $ 52,069Incometaxexpense(benefit) 46,159 (41,678) 7,555 17,150 16,700 27,994 36,919 39,438

Interestexpense,net 1,537 29,503 69,185 68,149 63,529 60,294 30,530 28,404Depreciationandamortization 17,058 15,197 38,837 39,423 43,159 41,702 21,270 20,550

EARPlan(b) — — 41,056 28,258 50,713 45,814 22,665 —Share-basedcompensation(c) — — — 3,461 1,977 5,789 1,914 964One-timeexecutivebonus(d) — — — — — — — 7,500Restructuringcharges(e) — — — 955 — 1,643 — 642Predecessorcompensationexpenses(f) 11,287 1,881 2,477 — — — — —

Thailandgolfballmanufacturingplantstart-upcosts(g) 1,055 662 1,617 2,927 788 — — —

Transactionfees(h) — 15,754 845 551 1,490 2,141 538 8,965Step-upininventoryduetoapurchaseaccountingadjustmentrelatingtotheAcquisition — 67,501 — — — — — —

Beamindemnificationexpense(income)(i) — — (2,872) 6,345 1,386 (3,007) (4,718) (485)

Losses(gains)onthefairvalueofourcommonstockwarrants(j) — 1,641 (12,224) (976) (1,887) 28,364 14,778 6,112

Othernon-cashgains,net — — (23) (149) (628) (169) (121) (295)Nonrecurringincome(k) — — — — — — — (1,467)Netincome(loss)attributabletononcontrollinginterests(l) 2,151 (189) 4,271 4,677 3,809 5,122 3,158 1,953

AdjustedEBITDA $ 128,649 $ 9,716 $ 164,597 $ 190,407 $ 202,593 $ 214,721 $ 160,389 $ 164,350

(a) ThetablebelowsetsforthAdjustedEBITDAandareconciliationofnetincome(loss)attributabletoAcushnetHoldingsCorp.toAdjustedEBITDAonacombinedbasisfortheyearendedDecember31,2011.Theunauditedcombinednetincome(loss)attributabletoAcushnetHoldingsCorp.,adjustmentstonetincome(loss)attributabletoAcushnetHoldingsCorp.andAdjustedEBITDAfortheyearendedDecember31,2011representsthemathematicaladditionofourPredecessor'snetincome(loss)attributabletoAcushnetHoldingsCorp.,adjustmentstonetincome(loss)attributabletoAcushnetHoldingsCorp.andAdjustedEBITDAfromJanuary1,2011toJuly29,2011,andtheSuccessor'snetincome(loss)attributabletoAcushnetHoldingsCorp.,adjustmentstonetincome(loss)attributabletoAcushnetHoldingsCorp.andAdjustedEBITDAfromJuly30,2011toDecember31,2011.WehaveincludedtheforegoingunauditedcombinedfinancialinformationasaconveniencesolelyforthepurposeoffacilitatingacomparisonofthecombinedresultswithourotheryearspresentedandtheCompanybelievesthatthepresentationofthismeasureonacombinedbasisisusefultoinvestorsasabasisforcomparing

TableofContents

theresultsofthecombinedperiodagainsttheresultsoftheotherannualperiodspresented.SuchresultsarenotnecessarilyindicativeofwhattheresultsforthecombinedperiodwouldhavebeenhadtheAcquisitionnotoccurred.

2011CombinedPeriod

(inthousands) Netincome(loss)attributabletoAcushnetHoldingsCorp. $ (31,154)Incometaxexpense(benefit) 4,481Interestexpense,net 31,040Depreciationandamortization 32,255EARPlan —Share-basedcompensation —One-timeexecutivebonus —Restructuringcharges —Predecessorcompensationexpenses 13,168Thailandgolfballmanufacturingplantstart-upcosts 1,717Transactionfees 15,754Step-upininventoryduetoapurchaseaccountingadjustmentrelatingtotheAcquisition 67,501Beamindemnificationexpense(income) —Losses(gains)onthefairvalueofourcommonstockwarrants 1,641Othernon-cashgains,net —Nonrecurringexpense(income) —Netincome(loss)attributabletononcontrollinginterests 1,962

AdjustedEBITDA $ 138,365

(b) ReflectsexpensesrelatedtotheanticipatedfullvestingofEARsgrantedunderourEARPlanandtheremeasurementoftheliabilityateachreportingperiodbasedonthethen-currentprojectionofourCSEvalue.See"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—CriticalAccountingPoliciesandEstimates—Share-BasedCompensation."Wemayincuradditionalmaterialexpensesin2016inconnectionwiththeoutstandingEARs.AlloutstandingEARsundertheEARPlanvestedasofDecember31,2015.TheEARPlanexpiresonDecember31,2016andamountsearnedundertheEARPlanmustbepaidwithintwoandahalfmonthsaftertheexpirationdate.

(c) FortheyearsendedDecember31,2013,2014and2015andthesixmonthsendedJune30,2015,reflectscompensationexpenseassociatedwiththeexerciseofsubstitutestockoptionsbyanexecutive,whichweregrantedinconnectionwiththeAcquisition.Allsuchstockoptionshavebeenexercised.ForthesixmonthsendedJune30,2016,reflectscompensationexpenseswithrespecttoequity-basedgrantsunderthe2015IncentivePlanwhichweremadeinthesecondquarterof2016.

(d) Inthefirstquarterof2016,ourPresidentandChiefExecutiveOfficerwasawardedacashbonusintheamountof$7.5millionasconsiderationforpastperformance.

(e) Reflectsrestructuringchargesincurredinconnectionwiththereoranizationofcertainofouroperationsin2013,2015andthesixmonthsendedJune30,2016.

(f) Primarilyreflectsacceleratedshare-basedcompensationexpenserelatingtoBeamstockoptionsthatvestedinconnectionwiththeAcquisitionin2011andincentivecompensationchargesin2012relatedtotheAcquisition.

(g) Reflectsexpensesincurredinconnectionwiththeconstructionandproductionramp-upofourgolfballmanufacturingplantinThailand.

(h) Reflectsfinancial,legalandothertransaction-relatedadvisoryfeesin2011relatingtotheAcquisitionandlegalfeesincurredin2012,2013,2014,2015andthesixmonthsendedJune30,2016relatingtoadisputearisingfromtheindemnificationobligationsowedtousbyBeaminconnectionwiththeAcquisition,aswellascertainfeesandexpensesweincurredin2015andthesixmonthsendedJune30,2016inconnectionwiththisoffering.

(i) Reflectsthenon-cashchargesrelatedtotheindemnificationobligationsowedtousbyBeamthatareincludedwhencalculatingnetincome(loss)attributabletoAcushnetHoldingsCorp.

(j) FilaKoreaexercisedallofouroutstandingcommonstockwarrantsinJuly2016andweusedtheproceedsfromsuchexercisetoredeemallofouroutstanding7.5%bondsdue2021.

(k) ReflectslegaljudgmentinfavorofusassociatedwiththeBeamvalue-addedtaxdisputerecordedinother(income)expense.

(l) ReflectsthenetincomeattributabletotheinterestthatwedonotowninourFootJoygolfshoejointventure.

(2) AdjustedNetIncomerepresentsnetincome(loss)attributabletoAcushnetHoldingsCorp.plusinterestexpenseonourConvertibleNotesand7.5%bondsdue2021,theexpensesrelatingtoourEARPlan,share-basedcompensationexpense,aone-timeexecutivebonus,restructuringcharges,Predecessorcompensationexpenses,plantstart-upcosts,certaintransactionfees,astep-upininventoryduetoapurchaseaccountingadjustmentrelatingtotheAcquisitionand(gains)lossesonthefairvalueofourcommonstockwarrants,minusthetaxeffectoftheforegoingadjustments.WebelieveAdjustedNetIncomeisusefultoinvestors,securitiesanalystsandotherinterestedpartiesasameasureofourcomparativeoperatingperformancefromperiodtoperiodbecauseitexcludestheimpactofcertainitemsthat(i)wedonotconsiderindicativeofourongoingoperatingperformance,(ii)relatetotheAcquisition,(iii)relatetoourhistoricalcapitalstructurethatwillnolongerberelevantaftertheclosingofthisofferingor(iv)relatetoourhistoricalequitycompensationstructurethatwillnotberelevantafteramountsearnedunderourEARPlanarepaidaftertheapplicableexpirationdate(thoughwenotethatwebegantoincurcompensationexpenseswithrespecttoequity-basedgrantsunderthe2015IncentivePlanbeginninginthesecondquarterof2016,whichexpenseswedonotadjustforwhenpresentingAdjustedNetIncome).AdjustedNetIncomeisnotameasurementoffinancialperformanceunderGAAP.Itshouldnotbeconsideredanalternativetonetincome(loss)attributabletoAcushnetHoldingsCorp.asameasureofouroperatingperformanceoranyothermeasureofperformancederivedinaccordancewithGAAP.Inaddition,AdjustedNetIncomeshouldnotbeconstruedasaninferencethatourfutureresultswillbeunaffectedbyunusualornon-recurringitems,oraffectedbysimilarnon-recurringitems.AdjustedNetIncomehaslimitationsasananalyticaltool,andyoushouldnotconsidersuchmeasureeitherinisolationorasasubstituteforanalyzingourresultsasreportedunderGAAP.OurdefinitionandcalculationofAdjustedNetIncomeisnotnecessarilycomparabletoothersimilarlytitledmeasuresusedbyothercompaniesduetodifferentmethodsofcalculation.

TableofContents

Thefollowingtableprovidesareconciliationofnetincome(loss)attributabletoAcushnetHoldingsCorp.toAdjustedNetIncome:

January1-July29,

July30-December31,

2011(a) 2011(a) 2012 2013 2014 2015 2015 2016 (inthousands) Netincome(loss)attributabletoAcushnetHoldingsCorp. $ 49,402 ($ 80,556) $ 13,873 $ 19,636 $ 21,557 $ (966) $ 33,456 $ 52,069InterestexpenseonConvertibleNotesand7.5%bondsdue2021(b) — 17,002 42,708 40,276 37,960 35,420 16,519 15,129

EARPlan(c) — — 41,056 28,258 50,713 45,814 22,665 —Share-basedcompensation(d) — — — 3,461 1,977 5,789 1,914 —

One-timeexecutivebonus(e) — — — — — — — 7,500Restructuringcharges(f) — — — 955 — 1,643 — 642Predecessorcompensationexpenses(g) 11,287 1,881 2,477 — — — — —

Thailandgolfballmanufacturingplantstart-upcosts(h) 1,055 662 1,617 2,927 788 — — —

Transactionfees(i) — 15,754 845 551 1,490 2,141 538 8,965Step-upininventoryduetoapurchaseaccountingadjustmentrelatingtotheAcquisition — 67,501 — — — — — —

Losses(gains)onthefairvalueofourcommonstockwarrants(j) — 1,641 (12,224) (976) (1,887) 28,364 14,778 6,112

Nonrecurringexpense(income)(k) — — — — — — — (1,467)

Taxeffectoftheforegoingadjustments(l) (4,320) (34,639) (30,977) (26,701) (32,099) (31,484) (14,573) (9,392)

AdjustedNetIncome $ 57,424 $ (10,754) $ 59,375 $ 68,387 $ 80,499 $ 86,721 $ 75,297 $ 79,558

(a) ThetablebelowsetsforthAdjustedNetIncomeandareconciliationofnetincome(loss)attributabletoAcushnetHoldingsCorp.toAdjustedNetIncomeonacombinedbasisfortheyearendedDecember31,2011.Theunauditedcombinednetincome(loss)attributabletoAcushnetHoldingsCorp.,adjustmentstonetincome(loss)attributabletoAcushnetHoldingsCorp.andAdjustedNetIncomefortheyearendedDecember31,2011representsthemathematicaladditionofourPredecessor'snetincome(loss)attributabletoAcushnetHoldingsCorp.,adjustmentstonetincome(loss)attributabletoAcushnetHoldingsCorp.andAdjustedNetIncomefromJanuary1,2011toJuly29,2011,andtheSuccessor'snetincome(loss)attributabletoAcushnetHoldingsCorp.,adjustmentstonetincome(loss)attributabletoAcushnetHoldingsCorp.andAdjustedNetIncomefromJuly30,2011toDecember31,2011.WehaveincludedtheforegoingunauditedcombinedfinancialinformationasaconveniencesolelyforthepurposeoffacilitatingacomparisonofthecombinedresultswithourotheryearspresentedandtheCompanybelievesthatthepresentationofthismeasureonacombinedbasisisusefultoinvestorsasabasisforcomparingtheresultsofthecombinedperiodagainsttheresultsoftheotherannualperiodspresented.SuchresultsarenotnecessarilyindicativeofwhattheresultsforthecombinedperiodwouldhavebeenhadtheAcquisitionnotoccurred.

2011CombinedPeriod

(inthousands) Netincome(loss)attributabletoAcushnetHoldingsCorp. $ (31,154)InterestexpenseonConvertibleNotesand7.5%bondsdue2021 17,002EARPlan —Share-basedcompensation —One-timeexecutivebonus —Restructuringcharges —Predecessorcompensationexpenses 13,168Thailandgolfballmanufacturingplantstart-upcosts 1,717Transactionfees 15,754Step-upininventoryduetoapurchaseaccountingadjustmentrelatingtotheAcquisition 67,501Losses(gains)onthefairvalueofourcommonstockwarrants 1,641Nonrecurringexpense(income) —Taxeffectoftheforegoingadjustments (38,959)

AdjustedNetIncome $ 46,670

(b) InconnectionwiththeAcquisition,weissued(i)anaggregateprincipalamountof$362.5millionofourConvertibleNotesand(ii)anaggregateprincipalamountof$172.5millionof7.5%bondsdue2021(whichaggregateprincipalamountof7.5%bondsdue2021was$34.5millionasofJune30,2016).AllofouroutstandingConvertibleNoteswillconvertintosharesofourcommonstockpriortotheclosingofthisofferingandFilaKoreaexercisedallofouroutstandingcommonstockwarrantsinJuly2016andweusedtheproceedsfromsuchexercisetoredeemallofouroutstanding7.5%bondsdue2021.

(c) ReflectsexpensesrelatedtotheanticipatedfullvestingofEARsgrantedunderourEARPlanandtheremeasurementoftheliabilityateachreportingperiodbasedonthethen-currentprojectionofourCSEvalue.See"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—CriticalAccountingPoliciesandEstimates—Share-BasedCompensation."Wemayincuradditionalmaterialexpensesin2016inconnectionwiththeoutstandingEARs.AlloutstandingEARsundertheEARPlanvestedasofDecember31,2015.TheEARPlanexpiresonDecember31,2016andamountsearnedundertheEARPlanmustbepaidwithintwoandahalfmonthsaftertheexpirationdate.WeadjustforexpensesrelatingtoourEARPlanwhenpresentingAdjustedNetIncomeastheseexpensesarenotrepresentativeoftheequity-basedcompensationexpensesweexpecttoincuronanongoingbasis.Weexpecttoincurcompensationexpenseswithrespecttoequity-basedgrantsunderthe2015IncentivePlanbeginninginthesecondquarterof2016,whichexpenseswedonotanticipateadjustingforwhenpresentingAdjustedNetIncome.

(d) ReflectscompensationexpenseassociatedwiththeexerciseofsubstitutestockoptionsbyanexecutivewhichweregrantedinconnectionwiththeAcquisition.Allsuchstockoptionshavebeenexercised.

TableofContents

(e) Inthefirstquarterof2016,ourPresidentandChiefExecutiveOfficerwasawardedacashbonusintheamountof$7.5millionasconsiderationforpastperformance.

(f) Reflectsrestructuringchargesincurredinconnectionwiththereorganizationofcertainofouroperationsin2013,2015andthesixmonthsendedJune30,2016.

(g) Primarilyreflectsacceleratedshare-basedcompensationexpenserelatingtoBeamstockoptionsthatvestedinconnectionwiththeAcquisitionin2011andincentivecompensationchargesin2012relatedtotheAcquisition.

(h) Reflectsexpensesincurredinconnectionwiththeconstructionandproductionramp-upofourgolfballmanufacturingplantinThailand.

(i) Reflectsfinancial,legalandothertransaction-relatedadvisoryfeesin2011relatingtotheAcquisitionandlegalfeesincurredin2012,2013,2014,2015andthesixmonthsendedJune30,2016relatingtoadisputearisingfromtheindemnificationobligationsowedtousbyBeaminconnectionwiththeAcquisition,aswellascertainfeesandexpensesweincurredin2015andthesixmonthsendedJune30,2016inconnectionwiththisoffering.

(j) FilaKoreaexercisedallofouroutstandingcommonstockwarrantsinJuly2016andweusedtheproceedsfromsuchexercisetoredeemallofouroutstanding7.5%bondsdue2021.

(k) ReflectslegaljudgmentinfavorofusassociatedwithBeamvalue-addedtaxdisputerecordedinother(income)expenses.

(l) Theadjustmentstonetincome(loss)attributabletoAcushnetHoldingsCorp.havebeentaxeffectedattheapplicablestatutoryratewiththeexceptionofthefairvalueofthecommonstockwarrantsandcertaintransactioncostswhicharepermanentitemsfortaxpurposes,andtherefore,havenotbeentaxeffected.

(3) FreeCashFlowrepresentscashflowsprovidedby(usedin)operatingactivitieslesscapitalexpenditures.WebelieveFreeCashFlowisusefultoinvestorsbecauseitrepresentsthecashthatouroperatingbusinessgeneratesbeforetakingintoaccountcapitalexpenditures.FreeCashFlowisnotameasurementofliquidityunderGAAP.Itshouldnotbeconsideredasanalternativetocashflowsprovidedby(usedin)operatingactivitiesasameasureofourliquidityoranyothermeasureofliquidityderivedinaccordancewithGAAP.FreeCashFlowhaslimitationsasananalyticaltool,andyoushouldnotconsidersuchmeasureeitherinisolationorasasubstituteforanalyzingourresultsasreportedunderGAAP.OurdefinitionandcalculationofFreeCashFlowisnotnecessarilycomparabletoothersimilarlytitledmeasuresusedbyothercompaniesduetodifferentmethodsofcalculation.

Thefollowingtableprovidesareconciliationofcashflowsprovidedby(usedin)operatingactivitiestoFreeCashFlow:

January1-July29,

July30-December31,

2011(a) 2011(a) 2012 2013 2014 2015 2015 2016 (inthousands) Cashflowsprovidedby(usedin)operatingactivities $ 26,591 $ 24,489 $ 55,506 $ 78,795 $ 54,113 $ 91,830 $ 36,070 $ 55,487Capitalexpenditures (10,907) (8,376) (27,209) (46,459) (23,527) (23,201) (10,409) (8,116)

FreeCashFlow $ 15,684 $ 16,113 $ 28,297 $ 32,336 $ 30,586 $ 68,629 $ 25,661 $ 47,371

(a) InconnectionwiththeAcquisition,weissued(i)anaggregateprincipalamountof$362.5millionofourConvertibleNotesand(ii)anaggregateprincipalamountof$172.5millionof7.5%bondsdue2021(whichaggregateprincipalamountof7.5%bondsdue2021was$34.5millionasofJune30,2016).AllofouroutstandingConvertibleNoteswillconvertintosharesofourcommonstockpriortotheclosingofthisofferingandFilaKoreaexercisedallofouroutstandingcommonstockwarrantsinJuly2016andweusedtheproceedsfromsuchexercisetoredeemallouroutstanding7.5%bondsdue2021.FreeCashFlowhasnotbeenadjustedtoexcludeanyhistoricalimpactfromtheinterestexpenseonourConvertibleNotesandour7.5%bondsdue2021,whichinterestexpensetotaled$17.0millionforthesuccessorperiodfromJuly30throughDecember31,2011and$42.7million,$40.3million,$38.0million,$35.4million,$16.5millionand$15.1millionfortheyearsendedDecember31,2012,2013,2014and2015andthesixmonthsendedJune30,2015and2016,respectively.ForthepredecessorperiodfromJanuary1,2011throughJuly29,2011therewasnointerestexpensefromourConvertibleNotesandour7.5%bondsdue2021assuchsecuritieswerenotoutstandingduringthatperiod.

(a) ThetablebelowsetsforthFreeCashFlowandareconciliationofcashflowsprovidedby(usedin)operatingactivitiestoFreeCashFlowonacombinedbasisfortheyearendedDecember31,2011.Theunauditedcashflowsprovidedby(usedin)operatingactivities,capitalexpendituresandFreeCashFlowfortheyearendedDecember31,2011representsthemathematicaladditionofourPredecessor'scashflowsprovidedby(usedin)operatingactivities,capitalexpendituresandFreeCashFlowfromJanuary1,2011toJuly29,2011,andtheSuccessor'scashflowsprovidedby(usedin)operatingactivities,capitalexpendituresandFreeCashFlowfromJuly30,2011toDecember31,2011.WehaveincludedtheforegoingunauditedcombinedfinancialinformationasaconveniencesolelyforthepurposeoffacilitatingacomparisonofthecombinedresultswithourotheryearspresentedandtheCompanybelievesthatthepresentationofthismeasureonacombinedbasisisusefultoinvestorsasabasisforcomparingtheresultsofthecombinedperiodagainsttheresultsoftheotherannualperiodspresented.SuchresultsarenotnecessarilyindicativeofwhattheresultsforthecombinedperiodwouldhavebeenhadtheAcquisitionnotoccurred.

2011CombinedPeriod

(inthousands) Cashflowsprovidedby(usedin)operatingactivities $ 51,080Capitalexpenditures (19,283)

FreeCashFlow $ 31,797

TableofContents

MANAGEMENT'SDISCUSSIONANDANALYSISOFFINANCIALCONDITIONANDRESULTSOFOPERATIONS

The following discussion contains management's discussion and analysis of our financial condition and results of operations and should be read together with"Selected Consolidated Financial Data" and the historical consolidated financial statements and the notes thereto included elsewhere in this prospectus. Thisdiscussion contains forward-looking statements that reflect our plans, estimates and beliefs and involve numerous risks and uncertainties, including but not limitedto those described in the "Risk Factors" section of this prospectus. Actual results may differ materially from those contained in any forward-looking statements.You should carefully read "Special Note Regarding Forward-Looking Statements" and "Risk Factors."

Overview

Wearethegloballeaderinthedesign,development,manufactureanddistributionofperformance-drivengolfproducts,whicharewidelyrecognizedfortheirqualityexcellence.Today,wearethestewardoftwoofthemostreveredbrandsingolf—Titleist,oneofgolf'sleadingperformanceequipmentbrands,andFootJoy,oneofgolf'sleadingperformancewearbrands.Weownorcontrolthedesign,sourcing,manufacturing,packaginganddistributionofourproducts.Indoingso,weareabletoexercisecontrolovereverystepofthemanufacturingprocess.

Ourtargetmarketisdedicatedgolfers,whoareavidandskill-biased,prioritizeperformanceandcommitthetime,effortandmoneytoimprovetheirgame.Webelievethatdedicatedgolfersarethemostconsistentpurchasersofgolfproductsandestimatethatwhiletheyrepresentedonlyapproximately15%ofallUnitedStatesgolfers,theyaccountedformorethan40%oftotalroundsplayedandapproximately70%ofallgolfequipmentandgearspendingintheUnitedStatesduring2014.WealsobelievededicatedgolfersaccountforanoutsizeshareofgolfequipmentandgearspendingoutsidetheUnitedStatesandpurchaseasignificantportionofthegolfwearproductsworldwide.

Wehavedemonstratedsustained,resilientandstablerevenueandAdjustedEBITDAgrowthoverthepastfiveyears,despitechallengesrelatedtodemographic,macroeconomicandweatherrelatedconditions.Ourdifferentiatedfocusonperformanceandqualityexcellence,enduringconnectionswithdedicatedgolfers,andfavorableandmarket-differentiatingmixofconsumableanddurableproductshavebeenthekeydriversofourstrongfinancialperformance.Weincreasedournetsalesfrom$1,336.1millionfortheyearendedDecember31,2011(onacombinedbasis)to$1,503.0millionfortheyearendedDecember31,2015,representingaCAGRof3%.See"SelectedConsolidatedFinancialData."Onaconstantcurrencybasis,netsalesgrewataCAGRof6%overthissameperiod.See"—KeyPerformanceMeasures"foradiscussionofhowwecalculateconstantcurrencyinformation.

Wehavethefollowingreportablesegments:Titleistgolfballs;Titleistgolfclubs;Titleistgolfgear;andFootJoygolfwear.

Ournetsalesarediversifiedbybothproductcategoryandmixaswellasgeography:

• Titleistgolfballs,Titleistgolfclubs,Titleistgolfgear,andFootJoygolfwearaccountedfor36%,26%,9%and28%,respectively,ofnetsalesfortheyearendedDecember31,2015.

• Consumableproducts,whichweconsidertobegolfballsandgolfgloves,collectivelyrepresented43%ofournetsalesfortheyearendedDecember31,2015,andmoredurableproducts,which

TableofContents

weconsidertobegolfclubs,golfshoes,golfapparelandgolfgear,collectivelyrepresented57%ofournetsalesfortheyearendedDecember31,2015.

• TheUnitedStates,Europe,theMiddleEastandAfrica,orEMEA,Japan,Korea,andtherestoftheworldaccountedfor54%,13%,12%,10%and11%,respectively,ofnetsalesfortheyearendedDecember31,2015.

Ourtoptencustomersaccountedfor21%,21%and22%ofournetsalesfortheyearsendedDecember31,2013,2014and2015,respectively,withnoonecustomeraccountingformorethan10%ofournetsalesinanysuchperiod.FortheyearendedDecember31,2015,86%ofournetsalesweregeneratedinfivecountries:theUnitedStates,Japan,Korea,theUnitedKingdomandCanada.

GrossmarginfortheyearsendedDecember31,2013,2014and2015andthesixmonthsendedJune30,2015and2016was49.6%,49.3%,51.6%,52.5%and50.9%,respectively.OperatingmarginfortheyearsendedDecember31,2013,2014and2015andthesixmonthsendedJune30,2015and2016was7.8%,6.8%,7.8%,13.2%and13.9%,respectively.

WeincreasedourAdjustedEBITDAfrom$138.4millionfortheyearendedDecember31,2011(onacombinedbasis)to$214.7millionfortheyearendedDecember31,2015,representingaCAGRof12%.OurAdjustedEBITDAmargin,whichwedefineasAdjustedEBITDAdividedbynetsales,improvedeachyearduringsuchfive-yearperiod,increasingfrom10.3%fortheyearendedDecember31,2011to14.3%fortheyearendedDecember31,2015.ForareconciliationofAdjustedEBITDAtonetincome(loss)attributabletoAcushnetHoldingsCorp.,see"SelectedConsolidatedFinancialData."

OnJuly29,2011,AcushnetHoldingsCorp.(atthetimeknownasAlexandriaHoldingsCorp.),anentityownedbyFilaKoreaandtheFinancialInvestors,purchasedalloftheissuedandoutstandingcommonstockofAcushnetCompanyfromBeam,whichwerefertoastheAcquisition.

InconnectionwiththeAcquisition,AcushnetHoldingsCorp.issuedthefollowingsecurities:(i)anaggregateof9,000,000sharesofourcommonstockforanissuepriceof$100.0million,(ii)anaggregateof1,838,027sharesofourConvertiblePreferredStockforanissuepriceof$183.8million,(iii)anaggregateprincipalamountof$362.5millionofourConvertibleNotesand(iv)anaggregateprincipalamountof$172.5millionof7.5%bondsdue2021withrelatedwarrantstopurchaseourcommonstock(whichaggregateprincipalamountof7.5%bondsdue2021was$34.5millionasofJune30,2016).AllofouroutstandingConvertiblePreferredStockandallofouroutstandingConvertibleNoteswillconvertintosharesofourcommonstockpriortotheclosingofthisoffering.FilaKoreaexercisedallofouroutstandingcommonstockwarrantsinJuly2016andweusedtheproceedsfromsuchexercisetoredeemallofouroutstanding7.5%bondsdue2021.

AlsoinconnectionwiththeAcquisition,weissuedsecuredfloatingratenotesinanaggregateprincipalamountof$500.0millionandenteredintoaseniorrevolvingcreditfacilityandaseniortermloancreditfacility.OnApril27,2016,weenteredintothenewcreditagreement,whichprovidesfor(i)a$275.0millionmulti-currencyrevolvingcreditfacility,(ii)a$375.0milliontermloanAfacilityand(iii)a$100.0milliondelayeddrawtermloanAfacility.OnJuly28,2016,weusedtheproceedsofthenew$375.0milliontermloanAfacility,borrowingsofC$4.0million(equivalenttoapproximately$3.0million)underthenewrevolvingcreditfacilityandcashonhandof$23.6millionto(i)repayallamountsoutstandingunder,andterminate,thesecuredfloatingratenotesandcertainofourotherworkingcreditfacilities,(ii)terminateourformerseniorrevolvingcreditfacilityand(iii)payfeesandexpensesrelatedtotheforegoing.Werefertotheenteringintoofthenewcreditagreementandtheuseof$375.0millionofborrowingsunderthenewtermloanAfacility,borrowingsofC$4.0million(equivalenttoapproximately$3.0million)underthenewrevolvingcreditfacilityandcashonhandof$23.6millionto(i)repayallamountsoutstandingunder,andterminate,thesecuredfloatingratenotesandcertainofourotherworkingcreditfacilities,(ii)terminatetheseniorrevolvingcreditfacility

TableofContents

referredtoaboveand(iii)payfeesandexpensesrelatedtotheforegoing,astheRefinancing.Inaddition,onJune30,2016,weusedcashonhandandborrowingsundertheseniorrevolvingcreditfacilityreferredtoabovetorepayallamountsoutstandingunder,andterminate,theseniortermloanfacilityreferredtoabove.

Key Factors Affecting Our Results of Operations

Rounds of Play

Wegeneratesubstantiallyallofoursalesfromthesaleofgolf-relatedproducts,includinggolfballs,golfclubs,golfshoes,golfgloves,golfgearandgolfapparel.Thedemandforgolf-relatedproductsingeneral,andgolfballsinparticular,isdirectlyrelatedtothenumberofgolfparticipantsandthenumberofroundsofgolfbeingplayedbytheseparticipants.

Weather Conditions

Weatherconditionsinmostpartsoftheworld,includingourprimarygeographicmarkets,generallyrestrictgolffrombeingplayedyear-round,withmanyofouron-coursecustomersclosedduringthecoldweathermonthsand,toalesserextent,duringthehotweathermonths.Unfavorableweatherconditionsinourmajormarkets,suchasaparticularlylongwinter,acoldandwetspring,oranextremelyhotsummer,wouldreducethenumberofplayabledaysandroundsplayedinagivenyear,whichwouldresultinadecreaseintheamountspentbygolfersandgolfretailersonourproducts,particularlywithrespecttoconsumableproductssuchasgolfballsandgolfgloves.Ourresultsin2013and2014werenegativelyimpactedbyunfavorableweatherconditionsinourmajormarkets.Unusualorsevereweatherconditionsthroughouttheyear,suchasstormsordroughtsorotherwatershortages,cannegativelyaffectgolfroundsplayedbothduringtheeventsandafterward,asweatherdamagedgolfcoursesarerepairedandgolfersfocusonrepairingthedamagetotheirhomes,businessesandcommunities.Consequently,sustainedadverseweatherconditions,especiallyduringthewarmweathermonths,couldimpactoursales.Adverseweatherconditionsmayhaveagreaterimpactonusthanothergolfequipmentcompaniesaswehavealargepercentageofconsumableproductsinourproductportfolio,andthepurchaseofconsumableproductsaremoredependentonthenumberofroundsplayedinagivenyear.

Economic Conditions

Ourproductsarerecreationalinnatureandarethereforediscretionarypurchasesforconsumers.Consumersaregenerallymorewillingtospendtheirtimeandmoneytoplaygolfandmakediscretionarypurchasesofgolfproductswheneconomicconditionsarefavorableandwhenconsumersarefeelingconfidentandprosperous.Discretionaryspendingongolfandthegolfproductswesellisaffectedbyconsumerspendinghabitsaswellasbymanymacroeconomicfactors,includinggeneralbusinessconditions,stockmarketpricesandvolatility,corporatespending,housingprices,interestrates,theavailabilityofconsumercredit,taxesandconsumerconfidenceinfutureeconomicconditions.Consumersmayreduceorpostponepurchasesofourproductsasaresultofshiftsinconsumerspendinghabitsaswellasduringperiodswheneconomicuncertaintyincreases,disposableincomeislower,orduringperiodsofactualorperceivedunfavorableeconomicconditions.Forexample,therecessionrelatedtotheU.S.financialcrisisbeginningin2007ledtoslowereconomicactivity,decreasedstockpricesandincreasedvolatility,depressedhousingprices,increasedunemployment,concernsaboutinflationandenergycosts,decreasedbusinessandconsumerconfidence,andadversebusinessconditions(includingreducedcorporateprofitsandcapitalspending),whichadverselyaffectedourbusiness,financialconditionandresultsofoperations.Theeffectsoftherecessionarestillbeingfelttodayinthegolfindustryaswebelieveconsumershavebecomemorecautiouswiththeirdiscretionarypurchasesandthistrendmaycontinue.Forexample,corporatespendingongolf

TableofContents

equipmenthasremainedatlowerlevelssincethefinancialcrisisasevidencedbythelowervolumeofballsinourcustomlogobusinessbeingsoldtocompaniesascomparedtobeforethecrisis.

Demographic Factors

Golfisarecreationalactivitythatrequirestimeandmoneyanddifferentgenerationsandsocioeconomicandethnicgroupsusetheirleisuretimeanddiscretionaryfundsindifferentways.Thegolfindustryhasbeenprincipallydrivenbytheagecohortof30andabove,currently"gen-x"(age30-49)and"babyboomers"(age50-69),whohavethetimeandmoneytoengageinthesport.IntheUnitedStates,thereareapproximately8.7milliongen-xgolfersandapproximately6.6millionbabyboomergolfers,representinginaggregateapproximately63%oftotalgolfersintheUnitedStates.Sinceasignificantnumberofbabyboomershaveyettoretire,weanticipategrowthinspendingfromthisdemographicasithasbeendemonstratedthatroundsofplayincreasesignificantlyasthoseinthiscohortreachretirement.

Golfparticipationamongyoungergenerationsandcertainsocioeconomicandethnicgroupsmaynotprovetobeaspopularasitisamongthecurrentgen-xandbabyboomergenerations.Insuchcase,salesofourproductscouldbenegativelyimpacted.

Seasonality

Weatherconditionsinmostpartsoftheworld,includingourprimarygeographicmarkets,generallyrestrictgolffrombeingplayedyear-round,withmanyofouron-coursecustomersclosedduringthecoldweathermonths.Ingeneral,duringthefirstquarter,webeginsellingourproductsintothegolfretailchannelforthenewgolfseason.Thisinitialsell-ingenerallycontinuesintothesecondquarter.Oursecond-quartersalesaresignificantlyaffectedbytheamountofsell-through,inparticulartheamountofhighervaluediscretionarypurchasesmadebycustomers,whichdrivesthelevelofreordersofourproductssold-induringthefirstquarter.Ourthird-quartersalesaregenerallydependentonreorderbusiness,andaregenerallylessthanthesecondquarterasmanyretailersbegindecreasingtheirinventorylevelsinanticipationoftheendofthegolfseason.Ourfourth-quartersalesaregenerallylessthantheotherquartersduetotheendofthegolfseasoninmanyofourkeymarkets,butcanalsobeaffectedbykeyproductlaunches,particularlygolfclubs.Thisseasonality,andthereforequartertoquarterfluctuations,canbeaffectedbymanyfactors,includingweatherconditionsasdiscussedaboveunder"—WeatherConditions"andthetimingofnewproductintroductionsasdiscussedbelowunder"—Cyclicality."Thisseasonalityaffectssalesineachofourreportablesegmentsdifferently.Ingeneral,however,becauseofthisseasonality,amajorityofoursalesandmostofourprofitabilitygenerallyoccursduringthefirsthalfoftheyear.

Cyclicality

Oursalescanalsobeaffectedbythelaunchtimingofnewproducts.Productintroductionsgenerallystimulatesalesasthegolfretailchanneltakesoninventoryofnewproducts.Reordersofthesenewproductsthendependontherateofsell-through.Announcementsofnewproductscanoftencauseourcustomerstodeferpurchasingadditionalgolfequipmentuntilournewproductsareavailable.Thevaryingproductintroductioncyclesdescribedbelowmaycauseourresultsofoperationstofluctuateaseachproductlinehasdifferentvolumes,pricesandmargins.

TitleistGolfBallsSegment

WelaunchnewTitleistgolfballmodelsonatwo-yearcycle,withnewproductlaunchesofProV1andProV1x,ourpremiumperformancemodels,generallyoccurringinthefirstquarterofodd-numberedyearsandnewproductlaunchesofNXTTour,VelocityandDT,ourperformancemodels,generallyoccurringinthefirstquarterofeven-numberedyears.Fornewgolfballmodels,sales

TableofContents

occuratahigherrateintheyearoftheinitiallaunchthaninthesecondyear.GiventheProV1franchiseisourhighestvolumeandourhighestpricedproductinthisproductcategory,wetypicallyhavehighernetsalesinourTitleistgolfballsegmentinodd-numberedyears.

TitleistGolfClubsSegment

WegenerallylaunchnewTitleistgolfclubmodelsonatwo-yearcycle.Sincethefallof2014,wehavegenerallyusedthefollowingproductlaunchcycle,andatpresentweanticipatecontinuingtousethisproductlaunchcyclegoingforwardbecausewebelieveitalignsourlauncheswiththepurchasehabitsofdedicatedgolfers.Ingeneral,welaunch:

• driversandfairwaysinthefourthquarterofeven-numberedyears,whichtypicallyresultsinanincreaseinsalesofdriversandfairwaysduringsuchquarterbecauseretailerstakeoninitialsuppliesoftheseproductsasstockinventory,withincreasedsalesgeneratedbysuchnewproductscontinuingthefollowingspringandsummerofodd-numberedyears;

• ironsandhybridsinthefourthquarterofodd-numberedyears,withthemajorityofsalesgeneratedbysuchnewproductsoccurringinthefollowingspringandsummerofeven-numberedyearsbecauseahigherpercentageofournewironsandhybridsascomparedtoourdriversandfairwaysaresoldthroughonacustomfitbasisandthespringandsummeriswhengolferstendtomakesuchcustomfitpurchases;

• VokeyDesignwedgesinthefirstquarterofeven-numberedyears,withthemajorityofsalesgeneratedbysuchnewproductsoccurringinthespringandsummerofsucheven-numberedyears;

• ScottyCameronputtersinthefirstquarter,withtheSelectmodelslaunchedineven-numberedyearsandtheFuturamodelslaunchedinodd-numberedyears,withthemajorityofsalesgeneratedbysuchnewproductsoccurringinthespringandsummeroftheyearinwhichtheyarelaunched;and

• Japan-specificVG3drivers,fairways,hybridsandironsinthespringofeven-numberedyears,withthemajorityofsalesgeneratedbysuchnewproductsoccurringinthespringandsummerofsucheven-numberedyears.

Asaresultofthisproductlaunchcycle,wegenerallyexpecttohavehighernetsalesinourTitleistgolfclubssegmentineven-numberedyearsduetothefollowingfactors:

• themajorityofsalesgeneratedbynewironsandhybridslaunchedinthefourthquarterofodd-numberedyearsisexpectedtooccurinthespringandsummerofthefollowingeven-numberedyears;

• themajorityofsalesgeneratedbynewVokeyDesignwedgeslaunchedinthefirstquarterofeven-numberedyearsisexpectedtooccurinsucheven-numberedyears;

• themajorityofsalesgeneratedbynewScottyCameronSelectlineofputterslaunchedinthefirstquarterofeven-numberedyearsisexpectedtooccurinsucheven-numberedyears;

• themajorityofsalesgeneratedbynewJapan-specificVG3drivers,fairways,hybridsandironslaunchedinthespringofeven-numberedyearsisexpectedtooccurinsucheven-numberedyears;and

• theincreaseinsalesofnewdriversandfairwayslaunchedinthefourthquarterofeven-numberedyearsduetotheinitialsell-inoftheseproductsduringsuchquarter.

TableofContents

TitleistGolfGearandFootJoyGolfWearSegments

OurFootJoygolfwearandTitleistgolfgearbusinessesarenotsubjecttothesamedegreeofcyclicalfluctuationasourgolfballandgolfclubbusinessesasnewproductofferingsandstylesaregenerallyintroducedeachyearandatdifferenttimesduringtheyear.

Foreign Currency

FortheyearsendedDecember31,2013,2014and2015,48%,48%and46%,respectively,ofournetsalesweregeneratedoutsideoftheUnitedStatesbyournon-U.S.subsidiaries.SubstantiallyallofthesenetsalesgeneratedoutsideoftheUnitedStatesweregeneratedintheapplicablelocalcurrency,whichinclude,butarenotlimitedto,theJapaneseyen,theKoreanwon,theBritishpoundsterling,theeuroandtheCanadiandollar.Incontrast,substantiallyallofthepurchasesofinventory,rawmaterialsorcomponentsbyournon-U.S.subsidiariesaremadeinU.S.dollars.FortheyearendedDecember31,2015,approximately87%ofourcostofgoodssoldincurredbyournon-U.S.subsidiariesweredenominatedinU.S.dollars.Becauseournon-U.S.subsidiariesincursubstantiallyalloftheircostofgoodssoldincurrenciesthataredifferentfromthecurrenciesinwhichtheygeneratesubstantiallyalloftheirsales,weareexposedtotransactionriskattributabletofluctuationsinsuchexchangerates,whichcanimpactthegrossprofitofournon-U.S.subsidiaries.

Inanefforttoprotectagainstadversechangesinforeignexchangeratesandminimizeforeigncurrencytransactionrisk,wetakeanactiveapproachtocurrencyhedging,whichincludesamongotherthings,enteringintovariousforeigncurrencyexchangecontracts,withtheprimarygoalofprovidingearningsandcashflowstability.Asaresultofouractiveapproachtocurrencyhedging,weareabletotakealongertermviewandmoreflexibleapproachtowardspricingourproductsandmakingcost-relateddecisions.Intakingthisactiveapproach,wecoordinatewiththemanagementteamsofour

TableofContents

keynon-U.S.subsidiariesonanongoingbasistoshareourviewsonanticipatedcurrencymovementsandmakedecisionsonsecuringforeigncurrencyexchangecontractpositionsthatareincorporatedintoourbusinessplanningandforecastingprocesses.Becauseourhedgingactivitiesaredesignedtoreducevolatility,theyreducenotonlythenegativeimpactofastrongerU.S.dollarbutcouldalsoreducethepositiveimpactofaweakerU.S.dollar.

BecauseourconsolidatedaccountsarereportedinU.S.dollars,wearealsoexposedtocurrencytranslationriskwhenwetranslatethefinancialresultsofourconsolidatednon-U.S.subsidiariesfromtheirlocalcurrencyintoU.S.dollars.FortheyearsendedDecember31,2013,2014and2015,48%,48%and46%,respectively,ofoursalesweredenominatedinforeigncurrencies.Inaddition,excludingexpensesrelatedtoourEARPlandiscussedbelow,fortheyearsendedDecember31,2013,2014and2015,32%,32%and30%,respectively,ofouroperatingexpensesweredenominatedinforeigncurrencies(whichamountsrepresentsubstantiallyalloftheoperatingexpensesincurredbyournon-U.S.subsidiaries).Fluctuationsinforeigncurrencyexchangeratesmaypositivelyornegativelyaffectourreportedfinancialresultsandcansignificantlyaffectperiod-over-periodcomparisons.Forexample,ourreportednetsalesinregionsoutsidetheUnitedStatesforthe2014and2015fiscalyearsandthesixmonthsendedJune30,2016werenegativelyaffectedbythetranslationofforeigncurrencysalesintoU.S.dollarsbasedon2014,2015and2016exchangerates,respectively.

Recent Customer Event

OnSeptember14,2016,GolfsmithInternationalHoldingsLP,aspecialtygolfretailerandoneofourlargestcustomersineachoftheyearsendedDecember31,2013,2014,2015andthesixmonthsendedJune30,2016,announcedthat(i)itsU.S.-basedbusiness,GolfsmithInternationalHoldings,Inc.,orGolfsmith,whichreportedlycurrentlyoperates109storesintheUnitedStates,commencedaChapter11caseunderTitle11oftheUnitedStatesCodeintheUnitedStatesBankruptcyCourtfortheDistrictofDelaware,ortheChapter11proceedings,and(ii)itsCanada-basedbusiness,GolfTownCanadaInc.,orGolfTown,whichreportedlycurrentlyoperates55storesinCanada,commencedcreditorprotectionproceedingsundertheCompanies'CreditorsArrangementActintheOntarioSuperiorCourtofJustice(CommercialList).

InconnectionwiththeChapter11proceedings,Golfsmith(i)enteredintoasupportagreementwithcertainofitssecuredcreditorswithrespecttoarecapitalizationandrestructuringtransaction,(ii)announcedthatitwouldundertakeanoperationalrestructuringthatwillresultintheclosingofcertainunderperformingstoresandthesaleofexcessinventory,(iii)reachedagreementwithitssecuredlenderstoacquiretheequityownershipofGolfsmithand(iv)announcedthatitwillexplorethepotentialforanalternativesaletransaction.OnOctober6,2016,theUnitedStatesBankruptcyCourtapprovedcertainproceduresaswellasaschedulefortheproposedalternativesale,whichproceduresprovidefor(i)anauctionofGolfsmithtotakeplaceonOctober19,2016and(ii)ahearingbytheUnitedStatesBankruptcyCourtonOctober31,2016,toconsiderapprovalofagoingconcernsaletransactionintheeventthatisthesuccessfulbidattheauction,oronOctober24,2016,toconsiderapprovalofanalternativesaletransactionifthereisnosuccessfulbidforagoingconcernsaletransaction.TheseprocedureswereapprovedbytheUnitedStatesBankruptcyCourtonSeptember15,2016,althoughitispossiblethatsomeoralloftheabovedeadlinesmaybesubjecttochange.

GolfsmithInternationalHoldingsLPalsoannouncedthat,inadditiontocommencingcreditorprotectionproceedingsinCanada,ithasenteredintoadefinitiveassetpurchaseagreementforthesaleofitsGolfTownbusinesstoanentitytobecontrolledbyapurchasergroupledbyFairfaxFinancialHoldingsLimitedandcertaininvestmentfundsmanagedbySignatureGlobalAssetManagement,adivisionofCIInvestmentsInc.,whichsaleisexpectedtocloseonOctober31,2016.

Wegrantcredit,generallywithoutcollateral,toourretailersanddistributors,includingGolfsmith.Asaresultoftheseproceedings,anyreceivableswehaveoutstandingwithGolfsmithInternationalHoldingsLP,whichtotaled$7.2millionasofthedateofthefilings,maybecompromised.Inaddition,

TableofContents

wemaybethesubjectofavoidanceactionswithrespecttopaymentsreceivedfromGolfsmithInternationalHoldingsLPwithinastatutoryperiodpriortothebankruptcypetitiondate.Nosuchavoidanceactionhasbeenfiledtodate,andmayneverbefiled.Wewouldvigorouslydefendanysuchavoidanceactions,althoughtheoutcomeofanysuchactionswouldbeuncertain.

WecannotpredictthetimingortheoutcomeoftheGolfsmithInternationalHoldingsLPproceedingsdiscussedabove.TheseproceedingsandthetermsofanyacquisitionoralternativesaleofGolfsmithmayresultintheclosureofasignificantnumberofGolfsmith'sstoresandafailuretocompletesuchsalemayresultintheclosureandliquidationofallofGolfsmith.ItisexpectedthatcertainGolfTownstoreswillalsobeclosedinconnectionwiththeproposedsaleofGolfTown.Wecannotpredicttheimpactthattheforegoingwillhaveonusorthegolfindustryingeneral,andthesemattersmaymateriallyadverselyaffectourbusiness,financialconditionandresultsofoperations,particularlyduringthefourthquarterof2016andcalendaryear2017.

Key Performance Measures

Weusevariousfinancialmetricstomeasureandevaluateourbusiness,including,amongothers:(i)netsalesonaconstantcurrencybasis,(ii)AdjustedEBITDAonaconsolidatedbasis,(iii)AdjustedEBITDAmarginand(iv)segmentoperatingincome.

Since48%,48%and46%ofournetsalesfortheyearsendedDecember31,2013,2014and2015,respectively,weregeneratedoutsideoftheUnitedStates,weusenetsalesonaconstantcurrencybasistoevaluatethesalesperformanceofourbusinessinperiodoverperiodcomparisonsandforforecastingourbusinessgoingforward.Constantcurrencyinformationallowsustoestimatewhatoursalesperformancewouldhavebeenwithoutchangesinforeigncurrencyexchangerates.ThisinformationiscalculatedbytakingthecurrentperiodlocalcurrencysalesandtranslatingthemintoU.S.dollarsbasedupontheforeigncurrencyexchangeratesfortheapplicablecomparablepriorperiod.ThisconstantcurrencyinformationshouldnotbeconsideredinisolationorasasubstituteforanymeasurederivedinaccordancewithGAAP.Ourpresentationofconstantcurrencyinformationmaynotbeconsistentwiththemannerinwhichsimilarmeasuresarederivedorusedbyothercompanies.

WeprimarilyuseAdjustedEBITDAonaconsolidatedbasistoevaluatetheeffectivenessofourbusinessstrategies,assessourconsolidatedoperatingperformanceandmakedecisionsregardingpricingofourproducts,gotomarketexecutionandcoststoincuracrossourbusiness.WedefineAdjustedEBITDAinamannerconsistentwiththeterm"ConsolidatedEBITDA"asitisdefinedinournewcreditagreement.AdjustedEBITDAisnotameasurementoffinancialperformanceunderGAAP.Itshouldnotbeconsideredanalternativetonetincome(loss)attributabletoAcushnetHoldingsCorp.asameasureofouroperatingperformanceoranyothermeasureofperformancederivedinaccordancewithGAAP.Inaddition,AdjustedEBITDAshouldnotbeconstruedasaninferencethatourfutureresultswillbeunaffectedbyunusualornon-recurringitems,oraffectedbysimilarnon-recurringitems.AdjustedEBITDAhaslimitationsasananalyticaltool,andyoushouldnotconsidersuchmeasureeitherinisolationorasasubstituteforanalyzingourresultsasreportedunderGAAP.OurdefinitionandcalculationofAdjustedEBITDAisnotnecessarilycomparabletoothersimilarlytitledmeasuresusedbyothercompaniesduetodifferentmethodsofcalculation.ForareconciliationofAdjustedEBITDAtonetincome(loss)attributabletoAcushnetHoldingsCorp.,see"—ResultsofOperations."

WealsouseAdjustedEBITDAmargin,whichmeasuresourAdjustedEBITDAasapercentageofnetsales,becauseourmanagementusesittoevaluatetheeffectivenessofourbusinessstrategies,assessourconsolidatedoperatingperformanceandmakedecisionsregardingpricingofourproducts,gotomarketexecutionandcoststoincuracrossourbusiness.WepresentAdjustedEBITDAmarginasasupplementalmeasureofouroperatingperformancebecauseitexcludestheimpactofcertainitemsthatwedonotconsiderindicativeofourongoingoperatingperformance.BypresentingAdjustedEBITDAmargin,weprovideabasisforcomparisonofourbusinessoperationsbetweendifferentperiodsbyexcludingitemsthatwedonotbelieveareindicativeofourcoreoperatingperformance.

TableofContents

AdjustedEBITDAmarginisnotameasurementoffinancialperformanceunderGAAP.ItshouldnotbeconsideredanalternativetoanymeasureofperformancederivedinaccordancewithGAAP.Inaddition,AdjustedEBITDAmarginshouldnotbeconstruedasaninferencethatourfutureresultswillbeunaffectedbyunusualornon-recurringitems,oraffectedbysimilarnon-recurringitems.AdjustedEBITDAmarginhaslimitationsasananalyticaltool,andyoushouldnotconsidersuchmeasureeitherinisolationorasasubstituteforanalyzingourresultsasreportedunderGAAP.OurdefinitionandcalculationofAdjustedEBITDAmarginisnotnecessarilycomparabletoothersimilarlytitledmeasuresusedbyothercompaniesduetodifferentmethodsofcalculation.

Lastly,weusesegmentoperatingincometoevaluateandassesstheperformanceofeachofourreportablesegmentsandtomakebudgetingdecisions.

ComponentsofResultsofOperations

Net Sales

SalesarerecognizedinaccordancewithAccountingStandardsCodification,orASC,605,"RevenueRecognition"uponshipmentoruponreceiptbythecustomerdependingonthecountryofthesaleandtheagreementwiththecustomer,andincludetheamountsbilledtocustomersforshippingandhandling,netofanallowancefordiscounts,salesreturns,customersalesincentives(whichincludesales-basedrebates,off-invoicediscountsandin-storepricereductionprograms)andcooperativeadvertising.

Ourbusinessisseasonalandcyclical.See"—Overview—KeyFactorsAffectingOurResultsofOperations."Asaresult,ournetsalesfluctuatedependingonthequarter,whichoftenaffectsthecomparabilityofourinterimresultssequentially.Netsalesarehistoricallyhigherinthefirsthalfoftheyear.

Cost of Goods Sold; Gross Profit and Gross Margin

Costofgoodssoldincludesallmaterial,laborandpackagingcosts,inboundfreightanddutycosts,manufacturingoverhead,includingelectricity,utilitiesanddepreciationexpensesassociatedwithassetsusedintheproductionofproductsthatwemanufacture.Costofgoodssoldalsoincludesgainsandlossesonforeigncurrencyexchangecontracts,reservesforestimatedwarrantyexpenses,andthewrite-downofinventorydeemedtobeobsoleteorbelownetrealizablevalue.

Amountsbilledtocustomersforshippingandhandlingareincludedinnetsalesasdiscussedaboveandoutboundshippingandhandlingcostsassociatedwithpreparinggoodstoshiptocustomersareincludedinselling,generalandadministrativeexpensesasdiscussedbelow.Asaresult,ourgrossprofitmaynotbecomparabletothatofothercompaniesthatincludeoutboundshippingandhandlingcostsintheircostofgoodssold.Shippingandhandlingcostsincludedinselling,generalandadministrativeexpenseswere$28.1million,$30.5million,$32.6million,$18.7millionand$18.4millionfortheyearsendedDecember31,2013,2014and2015andthesixmonthsendedJune30,2015and2016,respectively.

Grossprofitisequaltoournetsaleslesscostofgoodssold.Grossmarginmeasuresourgrossprofitasapercentageofsales.

OnaconsolidatedbasisfortheyearendedDecember31,2015,approximately87%ofourtotalcostofgoodssoldwasvariableinnatureandwascomprisedofmaterialsandcomponents,directlaborandelementsofvariableoverhead.Ofthisamount,nearly82%wasmaterialorcomponentcosts.Specifictotheproductsthatwemanufacture,variablecostscompriseasubstantialportionofthetotalcostofourgolfclubs,golfshoesandgolfgloveswhilevariablecostsconstituteasmallerpercentage,thoughstillmorethanamajority,ofthetotalcostofourgolfballbusiness,withtheremainderrelatedtofixedoverhead.Assuch,increasesordecreasesinactualproductionvolumecanhaveagreatereffectonthecostofgolfballsproducedthroughhigherorlowerabsorptionoffixedoverhead.OurTitleistgolfgearandFootJoyapparelproductsarewholly-sourcedfromthird-partysuppliers.

TableofContents

Forproductsthatwemanufacture,wepurchaserawmaterialsfrombothdomesticandinternationalsuppliers.Rawmaterialsincludepolybutadieneandionomersforthemanufacturingofgolfballs,titaniumandsteelforthemanufacturingofgolfclubs,leatherandsyntheticfabricsforthemanufacturingofgolfshoesandgolfgloves,andresinandotherpetroleum-basedmaterialsforanumberofourproducts.Certainofourmaterialsaresubjecttosupplyanddemandfluctuationsinthecommoditymarketand,assuch,thesefluctuationscanhaveanimpactonourcostofgoodssold.

Whileournon-U.S.subsidiariesgeneratesubstantiallyalloftheirnetsalesintheapplicablelocalcurrency,including,butnotlimitedto,theJapaneseyen,theKoreanwon,theBritishpoundsterling,theeuroandtheCanadiandollar,suchsubsidiariespurchasesubstantiallyalloftheirinventory,rawmaterialsorcomponentsinU.S.dollars.Forexample,fortheyearendedDecember31,2015,approximately87%ofournon-U.S.costofgoodssoldweredenominatedinU.S.dollars.IftheU.S.dollarstrengthensagainsttheapplicablelocalcurrency,morelocalcurrencywillbeneededtopurchasethesameamountofcostofgoodssolddenominatedinU.S.dollarswhichcanhaveasignificantimpactonourconsolidatedcostofgoodssold,grossprofitandgrossprofitmargin.Inanefforttoprotectagainstadversechangesinforeignexchangeratesandminimizeforeigncurrencytransactionrisk,wetakeanactiveapproachtocurrencyhedging,whichincludesamongotherthings,enteringintovariousforeigncurrencyexchangecontracts,withtheprimarygoalofprovidingearningsstability.Asaresultofouractiveapproachtocurrencyhedging,weareabletotakealongertermviewandmoreflexibleapproachtowardspricingourproductsandmakingcost-relateddecisions.See"—KeyFactorsAffectingOurResultsofOperations—ForeignCurrency"forfurtherdiscussionoftheimpactofforeigncurrencyfluctuationsonourcostofgoodssold,grossprofitandgrossprofitmarginandtheactionswetaketomitigatesuchimpact.

Grossmargincanbeimpactedbychangesinaveragesellingprices(whichisdrivenbychangesinthemixofproductssold,priceincreasesandcloseouts)andincreasesanddecreasesinmaterial,laborandoverheadcostsaswellastheeffectsofforeigncurrencyfluctuations.

Operating Expenses

Ouroperatingexpensesconsistofselling,generalandadministrativeexpenses,R&Dexpenses,intangibleamortizationandrestructuringcharges.

Selling, General and Administrative Expenses

Ourselling,generalandadministrativeexpensesprimarilyconsistofsellingexpenses,advertisingandpromotionexpensesandcorporateservicesexpenses.Allthreecategoriesofselling,generalandadministrativeexpensesincludepersonnelcosts,suchassalaries,benefits,share-basedcompensationandincentivesrelatedtoouremployees.

Because32.8%,31.2%,30.0%,30.2%and29.5%ofourselling,generalandadministrativeexpensesfortheyearsendedDecember31,2013,2014and2015andthesixmonthsendedJune30,2015and2016,respectively,wereincurredbyournon-U.S.subsidiariesinlocalcurrencies,theseexpensesmaybeaffectedbychangesinforeigncurrencyexchangerates.Wecalculatetheimpactofchangesinforeigncurrencyexchangeratesonoperatingexpensestoallowustoestimatewhatoperatingexpenseswouldhavebeenwithoutchangesinforeigncurrencyexchangerates.

Sellingexpensesincludemarketingandsalesadministrationcompensationandcosts,distributionexpensesandfieldsalescompensation.Distributionexpensesalsoincludeoutboundshippingandhandlingcostsassociatedwithpreparinggoodstoshiptocustomersandcoststooperateourdistributionfacilities.FortheyearsendedDecember31,2013,2014and2015andthesixmonthsendedJune30,2015and2016,excludingexpensesassociatedwiththeEARPlan,sellingexpenseswere$225.0million,$233.2million,$238.5million,$123.2millionand$125.0million,respectively.

Advertisingandpromotionexpensesincludeproductendorsementarrangementswithmembersofthevariousprofessionalgolftours,mediaplacementandproductioncosts(television,printandinternet),toursupportexpensesandpoint-of-salematerials.FortheyearsendedDecember31,2013,

TableofContents

2014and2015andthesixmonthsendedJune30,2015and2016,excludingexpensesassociatedwiththeEARPlan,advertisingandpromotionexpenseswere$203.3million,$200.8million,$202.7million,$111.5millionand$113.5million,respectively.

Corporateservicesexpensesconsistofexpensesrelatedtocompany-wideadministrativeexpenses,includingfinance,informationtechnology,legalandprofessionalfees,humanresourcesandthecostofcorporateheadquarters.FortheyearsendedDecember31,2013,2014and2015andthesixmonthsendedJune30,2015and2016,excludingexpensesassociatedwiththeEARPlan,corporateservicesexpenseswere$113.4million,$121.1million,$120.3million,$57.3millionand$68.3million,respectively.Weexpecttoincuradditionalcorporateservicesexpensesinconnectionwiththisofferingandasaresultofpreparationtobecomeapubliccompanythatwillbeexpensedasincurred.Thesecostsincludeexpensesrelatedtolegalfees,certainauditandquarterlyfinancialreviews,compliancewithSection404oftheSarbanesOxleyActof2002,ortheSarbanesOxleyAct,boardofdirectorrecruitment,andadvisoryaccountingandothercoststoensurethatourfinancialstatementscomplywithapplicableSECrules.

Share-basedcompensationrelatedtoouremployeesincludestheexpenseassociatedwithequitycompensationforkeymanagementemployeessuchasourEARs.PursuanttotheEARPlan,wegrantedcash-settledEARstodesignatedemployees.TheEARsvestoverafouryearperiodbasedonpassageoftime,AdjustedEBITDAperformanceandaninternalrateofreturnasdefinedbytheEARPlan.AlloutstandingEARsundertheEARPlanvestedasofDecember31,2015.Paymentisequaltothecommonstockequivalent(asdefinedintheEARPlan),orCSE,valuelessgrantdatevaluemultipliedbythenumberofvestedCSEs.TheEARPlanexpiresonDecember31,2016andamountsearnedundertheEARPlanmustbepaidwithintwoandahalfmonthsaftertheexpirationdate.Subsequenttoourinitialpublicoffering,wewillhavetheoptiontosettleupto50%ofouroutstandingEARsusingourcommonstock.However,itiscurrentlyourintentiontosettletheentireamountsdueundertheEARsincash,whichpaymentsweexpecttofundfromcashflowsfromoperations,borrowingsunderournewrevolvingcreditfacilityandborrowingsunderournewdelayeddrawtermloanAfacility.TheEARsareliability-classifiedawardsandwereremeasuredateachreportingperiodbasedonthethen-currentprojectionofourCSEvalue.See"—CriticalAccountingPoliciesandEstimates—Share-BasedCompensation."FortheyearsendedDecember31,2013,2014and2015andthesixmonthsendedJune30,2015,expensesassociatedwiththeEARswere$28.3million,$50.7million,$45.8millionand$22.7million,respectively,ofwhich$26.7million,$47.7million,$42.6millionand$20.9million,respectively,wasincludedinselling,generalandadministrativeexpenses.ForthesixmonthsendedJune30,2016,therewerenoexpensesassociatedwiththeEARsincludedinselling,generalandadministrativeexpenses.Wemayincuradditionalmaterialexpensesin2016inconnectionwiththeoutstandingEARs.ForthesixmonthsendedJune30,2016,weincurredexpensesof$1.0millionassociatedwithRSUsandPSUsgrantedunderthe2015IncentivePlantodesignatedemployeesinthesecondquarterof2016,ofwhich$0.8millionwasincludedinselling,generalandadministrativeexpenses.Weexpecttoincuradditionalselling,generalandadministrativeexpenseswithrespecttosuchequity-basedgrants,andanyadditionalequity-basedgrants,infutureperiods.See"—CriticalAccountingPoliciesandEstimates—Share-BasedCompensation."

Ourselling,generalandadministrativeexpensesreportedonaconsolidatedbasiscanalsobeimpactedbyfluctuationsinforeigncurrencyrates.Weexpectourselling,generalandadministrativeexpenseswillincreaseinfutureperiodsduetoadditionalstaffing,legalfees,andreportingandcompliancecostsassociatedwithbeingapubliccompany,includingcompliancewiththeSarbanes-OxleyAct.

Selling,generalandadministrativeexpensesintheaggregateasapercentageofnetsaleswere38.5%,39.2%,40.2%,36.3%and34.0%fortheyearsendedDecember31,2013,2014and2015andthesixmonthsendedJune30,2015and2016,respectively.ExcludingtheexpenseassociatedwiththeEARPlanandtransactionfeesdiscussedabove,selling,generalandadministrativeexpensesasa

TableofContents

percentageofnetsaleswouldhavebeen36.6%,36.0%,37.2%,33.8%and33.0%forthesamerespectiveperiods.

Research and Development

R&Dexpensesincludeproductdevelopment,productimprovement,productengineering,andprocessimprovementcostsandareexpensedasincurred.R&DexpensesasapercentageofnetsaleshavebeengenerallyconsistentfortheyearsendedDecember31,2013,2014and2015andthesixmonthsendedJune30,2015and2016,at2.9%,2.9%,3.1%,2.6%and2.5%,respectively,reflectingourcontinuingcommitmenttoinvestmentinproductinnovation.ExcludingtheexpenseassociatedwithEARPlandiscussedabove,R&Dexpensesasapercentageofnetsaleswouldhavebeen2.8%,2.7%,2.9%,2.5%and2.5%forthesamerespectiveperiods.ForthesixmonthsendedJune30,2016,therewerenoexpensesassociatedwiththeEARsincludedinR&Dexpenses.ForthesixmonthsendedJune30,2016,webeganincurringR&DexpensesassociatedwithRSUsandPSUsgrantedunderthe2015IncentivePlantodesignatedemployeesinthesecondquarterof2016.WeexpecttoincuradditionalR&Dexpenseswithrespecttosuchequity-basedgrants,andanyadditionalequity-basedgrants,infutureperiods.See"—CriticalAccountingPoliciesandEstimates—Share-BasedCompensation."

Intangible Amortization

IntangibleassetsotherthangoodwillareamortizedovertheirusefullivesinaccordancewithASC350,unlessthoselivesaredeterminedtobeindefinite.Intangibleamortizationexpenseisprimarilyrelatedtoourcompletedtechnologyandcustomerrelationships,whicharosethroughpurchaseaccountingrelatedtotheAcquisition.Theweightedaverageamortizationperiodis13yearsforcompletedtechnologyand20yearsforcustomerrelationships.

Restructuring Charges

Restructuringchargesrepresentcostsincurredasaresultofourreorganizationinitiativesandincludeemployeeseverancecostsandrelatedbenefits.

Interest Expense, Net

Interestexpense,net,consistsprimarilyofinterestonborrowingsunderourConvertibleNotes,bondswithcommonstockwarrants,securedfloatingratenotes,formercreditfacilitiesandothercreditfacilitiesandourcapitalleaseobligations,partiallyoffsetbyinterestearnedonourcashandcashequivalents.Ourinterestincomehasnotbeensignificantduetolowinterestearnedoninvestedbalances.

AftergivingeffecttotheconversionofallofourConvertibleNotespriortotheclosingofthisoffering,theexercisebyFilaKoreaofallofouroutstandingwarrantsandrelatedredemptionofouroutstanding7.5%bondsdue2021,whichoccurredinJuly2016,andtheRefinancing,weexpectourannualinterestexpensetobesignificantlylowerthanitwaspriortosuchtransactions.

Other (Income) Expense, Net

Other(income)expense,netprimarilyconsistsofthenon-cashchangeinthefairvalueofourcommonstockwarrantsandanychangeinthevalueoftheindemnificationassetrelatedtotheAcquisition.Ourcommonstockwarrantswereissuedinconnectionwithour7.5%bondsdue2021inconnectionwiththeAcquisition.Weclassifythesewarrantstopurchasecommonstockasaliabilityonourconsolidatedbalancesheetasthewarrantsarefree-standingfinancialinstrumentsthatmayresultintheissuanceofavariablenumberofourcommonshares.Thecommonstockwarrantsarere-measuredtofairvalueateachreportingdateandchangesinthefairvalueofthecommonstockwarrantsarerecognizedasother(income)expense,netonourconsolidatedstatementofoperations.Thefairvalueofthecommonstockwarrantsisdeterminedusingthecontingentclaimsmethodology

TableofContents

andisimpactedbyanumberofvariablesincludingthebusinessenterprisevalueoftheCompany,volatilityandtherisk-freerate.Anincreaseinthefairvalueofthecommonstockwarrantsresultsinanincreaseinthecorrespondingliabilityandassuch,isrecordedasalossinother(income)expense,netonourconsolidatedstatementofoperations.Adecreaseinthefairvalueofthecommonstockwarrantsresultsinadecreaseinthecorrespondingliabilityandassuch,isrecordedasagaininother(income)expense,netonourconsolidatedstatementofoperations.ThecommonstockwarrantswillnolongerhaveanimpactonournetincomeaftertheexerciseoftheremainingwarrantsbyFilaKorea,whichoccurredinJuly2016.

InconnectionwiththeAcquisition,BeamagreedtoindemnifyusforcertaintaxobligationsthatrelatetoperiodsduringwhichBeamownedAcushnetCompany.Thesetaxobligationsarerecordedinaccruedtaxesandothernoncurrentliabilities,andtherelatedindemnificationreceivableisrecordedinothercurrentandnoncurrentassetsontheconsolidatedbalancesheet.Anychangesinthevalueofthesetaxobligationsarerecordedinincometaxexpenseandtherelatedchangeintheindemnificationassetisrecordedinother(income)expense,netontheconsolidatedstatementofincome.

Income Tax Expense

WearesubjecttoincometaxesintheUnitedStatesandforeignjurisdictionsinwhichwedobusiness.TheseforeignjurisdictionshavestatutorytaxratesthatarelowerthantheUnitedStates,althoughU.S.taxisprovidedoncertainofourforeignearnings.Oureffectivetaxrate,orETR,willvarydependingupontherelativeproportionofforeigntoU.S.earnings,changesinthevalueandrealizabilityofourdeferredtaxassetsandliabilities,changesinindemnifiedtaxes,changestotaxlawsandrulingsinthejurisdictionsinwhichwedobusiness,aswellaschangestowellestablishedinternationaltaxprinciples.OurETRwillalsovaryduetotherecordingofnon-cashfairvaluegainsandlossesrelatedtothecommonstockwarrantswhicharenottaxeffected.

Noncontrolling Interests

In1995,weenteredintoanagreementwithourTaiwansupplypartnerstoformajointventureinChinaforthepurposeofmanufacturingourFootJoygolfshoes.ThejointventurewasformedunderthelawsoftheCaymanIslandsandownsanentityorganizedunderthelawsofChinathatisresponsibleformanufacturingandanentityorganizedunderthelawsofHongKongthatisresponsibleforfacilitatingexportsandimportsinconnectionwiththejointventure.WealsomaintainarepresentativeofficeinTaiwanthatactsasaliaisonbetweenusandourjointventure.

Weown40%ofthejointventurewhileourpartnersowntheother60%.Weareentitledtoappointtwoofthefivedirectorsofthejointventureandcertainenumeratedmattersrequiretheconsentofamajorityofthedirectorsappointedbyusandcertainotherenumeratedmatters,includinganamendmenttothejointventure'sorganizationaldocuments,requireaspecialresolutionpassedby75%oftheoutstandingshares,whichmeanswemustconsenttosuchmatters.

Thejointventureisobligatedunderthetermsofthejointventureagreementtomanufactureshoessolelyforus.Thejointventurecannotexistwithoutthisactivityandordersmadebyus.Thejointventureisavariableinterestentity,orVIE.Asaresultofourabilitytodirecttheactivitiesthatmostsignificantlyimpactthejointventure'seconomicperformanceandbecausethesolepurposeofthejointventureistomanufactureourgolfshoes,wearedeemedtheprimarybeneficiaryoftheVIEunderAccountingStandardsCodification810andweconsolidatetheaccountsofthejointventureinourconsolidatedfinancialstatements.Thenoncontrollinginterestsrepresentthe60%interestinthejointventurethatwedonotown.

TableofContents

ResultsofOperations

Thefollowingtablesetsforth,fortheperiodsindicated,ourresultsofoperations.

June30, 2013 2014 2015 2015 2016 (inthousands) Netsales $ 1,477,219 $ 1,537,610 $ 1,502,958 $ 862,874 $ 902,995Costofgoodssold 744,090 779,678 727,120 409,929 443,754Grossprofit 733,129 757,932 775,838 452,945 459,241Operatingexpenses: Selling,generalandadministrative 568,421 602,755 604,018 313,007 306,771Researchanddevelopment 42,152 44,243 45,977 22,628 22,823Intangibleamortization 6,704 6,687 6,617 3,313 3,303Restructuringcharges 955 — 1,643 — 642Incomefromoperations 114,897 104,247 117,583 113,997 125,702

Interestexpense,net 68,149 63,529 60,294 30,530 28,404Other(income)expense,net 5,285 (1,348) 25,139 9,934 3,838Incomebeforeincometaxes 41,463 42,066 32,150 73,533 93,460

Incometaxexpense 17,150 16,700 27,994 36,919 39,438Netincome 24,313 25,366 4,156 36,614 54,022

Less:Netincomeattributabletononcontrollinginterests (4,677) (3,809) (5,122) (3,158) (1,953)Netincome(loss)attributabletoAcushnetHoldingsCorp. $ 19,636 $ 21,557 $ (966) $ 33,456 $ 52,069

AdjustedEBITDA: Netincome(loss)attributabletoAcushnetHoldingsCorp. $ 19,636 $ 21,557 $ (966) 33,456 52,069Incometaxexpense 17,150 16,700 27,994 36,919 39,438Interestexpense,net 68,149 63,529 60,294 30,530 28,404Depreciationandamortization 39,423 43,159 41,702 21,270 20,550EARPlan(a) 28,258 50,713 45,814 22,665 —Shared-basedcompensation(b) 3,461 1,977 5,789 1,914 964One-timeexecutivebonus(c) — — — — 7,500Restructuringcharges(d) 955 — 1,643 — 642Thailandgolfballmanufacturingplantstart-upcosts(e) 2,927 788 — — —

Transactionfees(f) 551 1,490 2,141 538 8,965Beamindemnificationexpense(income)(g) 6,345 1,386 (3,007) (4,718) (485)(Gains)lossesonthefairvalueofourcommonstockwarrants(h) (976) (1,887) 28,364 14,778 6,112

Othernon-cashgains,net (149) (628) (169) (121) (295)Nonrecurringexpense(income)(i) — — — — (1,467)Netincomeattributabletononcontrollinginterests(j) 4,677 3,809 5,122 3,158 1,953

AdjustedEBITDA $ 190,407 $ 202,593 $ 214,721 160,389 164,350AdjustedEBITDAmargin 12.9% 13.2% 14.3% 18.6% 18.2%

(a) ReflectsexpensesrelatedtotheanticipatedfullvestingofEARsgrantedunderourEARPlanandremeasurementoftheliabilityateachreportingperiodbasedonthethen-currentprojectionofourCSEvalue.See"—CriticalAccountingPoliciesandEstimates—Share-BasedCompensation."Wemayincuradditionalmaterialexpensesin2016inconnectionwiththeoutstandingEARs.All

TableofContents

Six Months Ended June 30, 2016 Compared to the Six Months Ended June 30, 2015

Net Sales

Netsalesincreasedby$40.1million,or4.6%,to$903.0millionforthesixmonthsendedJune30,2016comparedto$862.9millionforthesixmonthsendedJune30,2015.Onaconstantcurrencybasis,netsaleswouldhaveincreasedby$48.7million,or5.6%,to$911.6million.Theincreaseinnetsalesonaconstantcurrencybasiswasduetoanincreaseof$20.8millioninnetsalesofTitleistgolfclubsdrivenbythenewwedgesandironsintroducedinthefirstquarterof2016andfourthquarterof2015,respectively,anincreaseof$17.4millioninnetsalesofFootJoygolfweardrivenbysalesvolumegrowthinapparelandgloves,andanincreaseof$9.3millioninnetsalesofTitleistgolfgeardrivenbysalesvolumegrowthinallcategories.Thesenetsalesincreaseswereoffsetpartiallybyadecreaseof$5.3millioninnetsalesofTitleistgolfballs.TheremainingincreaseinnetsaleswasduetosalesvolumegrowthofproductsthataresoldinregionsoutsidetheUnitedStatesandthatarenotallocatedtooneofourfourreportablesegments.

Netsalesbyreportablesegmentissummarizedasfollows:

outstandingEARsundertheEARPlanvestedasofDecember31,2015.TheEARPlanexpiresonDecember31,2016andamountsearnedundertheEARPlanmustbepaidwithintwoandahalfmonthsaftertheexpirationdate.

(b) FortheyearsendedDecember31,2013,2014and2015andthesixmonthsendedJune30,2015,reflectscompensationexpenseassociatedwiththeexerciseofsubstitutestockoptionsbyanexecutive,whichweregrantedinconnectionwiththeAcquisition.Allsuchstockoptionshavebeenexercised.ForthesixmonthsendedJune30,2016,reflectscompensationexpenseswithrespecttoequity-basedgrantsunderthe2015IncentivePlanwhichweremadeinthesecondquarterof2016.

(d) Reflectsrestructuringchargesincurredinconnectionwiththereorganizationofcertainofouroperationsin2013,2015andthesixmonthsendedJune30,2016.

(f) Reflectslegalfeesincurredin2013,2014,2015andthesixmonthsendedJune30,2016relatingtoadisputearisingfromtheindemnificationobligationsowedtousbyBeaminconnectionwiththeAcquisitionaswellascertainfeesandexpensesweincurredin2015andthesixmonthsendedJune30,2016inconnectionwiththisoffering.

Sixmonthsended

June30, Increase/(Decrease) ConstantCurrencyIncrease/(Decrease)

2015 2016 $change %change $change %change (inthousands) Titleistgolfballs $ 304,665 $ 296,249 $ (8,416) (2.8)% $ (5,277) (1.7)%Titleistgolfclubs 220,531 240,296 19,765 9.0% 20,763 9.4%Titleistgolfgear 76,185 84,334 8,149 10.7% 9,348 12.3%FootJoygolfwear 249,160 264,030 14,870 6.0% 17,443 7.0%

TableofContents

Forfurtherdiscussionofeachreportablesegment'sresults,see"—SegmentResults—TitleistGolfBallsSegment,""—SegmentResults—TitleistGolfClubsSegment,""—SegmentResults—TitleistGolfGearSegment"and"—SegmentResults—FootJoyGolfWearSegment"resultsbelow.

Netsalesinformationbyregionissummarizedasfollows:

NetsalesintheUnitedStatesincreasedby$10.7million,or2.3%,to$482.7millionforthesixmonthsendedJune30,2016comparedto$472.0millionforthesixmonthsendedJune30,2015.ThisincreaseinnetsalesintheUnitedStateswasduetoanincreaseof$9.1millioninnetsalesofTitleistgolfclubsandanincreaseof$4.2millioninnetsalesofFootJoygolfwear,offsetpartiallybyadecreaseof$4.5millioninnetsalesofTitleistgolfballs.

OursalesinregionsoutsideoftheUnitedStatesincreasedby$29.4million,or7.5%,to$420.3millionforthesixmonthsendedJune30,2016comparedto$390.9millionforthesixmonthsendedJune30,2015.Onaconstantcurrencybasis,netsalesinsuchregionswouldhaveincreasedby$38.1million,or9.7%,to$429.0million,drivenbyanincreaseof$13.3millioninnetsalesofFootJoygolfwear,anincreaseof$11.7millioninnetsalesofTitleistgolfclubs,andanincreaseof$8.7millioninnetsalesofTitleistgolfgear,offsetpartiallybyadecreaseof$0.8millioninnetsalesofTitleistgolfballs.

MoreinformationonoursalesbyreportablesegmentandbyregioncanbefoundinNote15—Segment Information toourunauditedconsolidatedfinancialstatements.

Gross Profit

Grossprofitincreasedby$6.3millionto$459.2millionforthesixmonthsendedJune30,2016comparedto$452.9millionforthesixmonthsendedJune30,2015.Grossmargindecreasedto50.9%forthesixmonthsendedJune30,2016comparedto52.5%forthesixmonthsendedJune30,2015.Theincreaseingrossprofitwaslargelydrivenbya$10.7millionincreaseingrossprofitinTitleistgolfclubsduetoincreasesinaveragesellingpricesofnewlyintroducedwedgesandironsandhighergolfclubsalesvolumes.ThedecreaseingrossmarginwasprimarilyduetolowergainsonforeigncurrencyexchangecontractscomparedtothesixmonthsendedJune30,2015.

Selling,generalandadministrativeexpensesdecreasedby$6.2millionto$306.8millionforthesixmonthsendedJune30,2016comparedto$313.0millionforthesixmonthsendedJune30,2015.ExcludingtheexpenseassociatedwithourEARPlanrecordedin2015,selling,generalandadministrativeexpenseswouldhaveincreasedby$14.7millionto$306.8millionforthesixmonthsendedJune30,2016comparedto$292.1millionforthesixmonthsendedJune30,2015.Thisincreasewasduetoa$17.2millionaggregateincreaseprimarilyattributableto$9.0millionintransactioncostsrelatedtothisoffering,a$7.5millionone-timeexecutivebonus,$3.8millioninadditionalmarketingandpromotionalcostsrelatedtoournewgolfclubproductlaunches,FootJoyeCommerceandwomen'sgolfapparelinitiatives,$1.5millioninadditionallegalandprofessionalfees,partiallyoffsetbya

Sixmonthsended

2015 2016 $change %change $change %change (inthousands) UnitedStates $ 471,992 $ 482,684 $ 10,692 2.3% $ 10,692 2.3%EMEA 126,929 137,656 10,727 8.5% 14,479 11.4%Japan 95,684 107,574 11,890 12.4% 4,820 5.0%Korea 71,755 82,444 10,689 14.9% 16,835 23.5%Restofworld 96,514 92,637 (3,877) (4.0)% 1,917 2.0%Totalsales $ 862,874 $ 902,995 $ 40,121 4.6% $ 48,743 5.6%

TableofContents

decreaseof$2.5millioninassociateincentivecompensationaccruals.Thisincreasewasoffsetbya$2.5millionfavorableimpactofchangesinforeigncurrencyexchangerates.

R&Dexpensesincreasedby$0.2millionto$22.8millionforthesixmonthsendedJune30,2016comparedto$22.6millionforthesixmonthsendedJune30,2015.ExcludingtheexpenseassociatedwithourEARPlanrecordedin2015,R&Dexpenseswouldhaveincreasedby$1.6millionto$22.8millionforthesixmonthsendedJune30,2016comparedto$21.2millionforthesixmonthsendedJune30,2015.Asapercentageofconsolidatednetsales,R&DexpensesexcludingexpensesassociatedwithourEARPlanwere2.5%,unchangedfromthesixmonthsendedJune30,2015.

Intangibleamortizationexpenseswere$3.3millionforthesixmonthsendedJune30,2016,unchanged,comparedto$3.3millionforthesixmonthsendedJune30,2015.

Restructuringchargeswere$0.6millionforthesixmonthsendedJune30,2016comparedtonorestructuringchangesforthesixmonthsendedJune30,2015.

Interest Expense, net

Interestexpensedecreasedby$2.1millionto$28.4millionforthesixmonthsendedJune30,2016comparedto$30.5millionforthesixmonthsendedJune30,2015.ThisdecreasewasprimarilyduetoloweraverageoutstandingborrowingsduringthesixmonthsendedJune30,2016asaresultoftheredemptionof$34.5millionoftheprincipalofouroutstanding7.5%bondsdue2021usingtheproceedsoftheexerciseofaportionofouroutstandingcommonstockwarrantsinJuly2015,aswellasascheduledrepaymentof$50.0millionoftheprincipalonoursecuredfloatingratenotesinOctober2015.

Other (Income) Expense, net

Otherexpensedecreasedby$6.1millionto$3.8millionforthesixmonthsendedJune30,2016comparedtootherexpenseof$9.9millionforthesixmonthsendedJune30,2015.Thischangewasprimarilyduetoadecreaseintherecognizedlossonthefairvalueofthecommonstockwarrantsfrom$14.8millionforthesixmonthsendedJune30,2015to$6.1millionforthesixmonthsendedJune30,2016.Inaddition,incomeof$1.5millionwasrecordedduringthesixmonthsendedJune30,2016torecognizethelegaljudgmentinfavorofusassociatedwiththeBeamvalue-addedtaxdispute.ThisnetdecreaseinexpensewasoffsetinpartbyadecreaseinthegainrelatedtotheadjustmentofindemnifiedtaxobligationsfortaxperiodspriortotheAcquisitionfrom$4.7millionrecordedforthesixmonthsendedJune30,2015to$0.5millionrecordedforthesixmonthsendedJune30,2016.

Income Tax Expense

Incometaxexpenseincreasedby$2.5million,or6.8%,to$39.4millionforthesixmonthsendedJune30,2016comparedto$36.9millionforthesixmonthsendedJune30,2015.OurETRwas42.2%forthesixmonthsendedJune30,2016,comparedto50.2%forthesixmonthsendedJune30,2015.ThedecreaseinETRwasprimarilydrivenbyareductionofnon-cashfairvaluelossesoncommonstockwarrantswhicharenottaxeffected,anincreaseinnon-deductibletransactionscosts,areductioninindemnifiedtaxobligationsforperiodspriortotheAcquisition,andchangestothegeographicmixofearnings.

Net Income Attributable to Acushnet Holdings Corp.

NetincomeattributabletoAcushnetHoldingsCorp.increasedby$18.6millionto$52.1millionforthesixmonthsendedJune30,2016comparedto$33.5millionforthesixmonthsendedJune30,2015

TableofContents

asaresultofhigherincomefromoperationsandadecreaseinother(income)expense,asdiscussedinmoredetailabove.

Adjusted EBITDA

AdjustedEBITDAincreasedby$4.0millionto$164.4millionforthesixmonthsendedJune30,2016comparedto$160.4millionforthesixmonthsendedJune30,2015.AdjustedEBITDAmargindecreasedto18.2%forthesixmonthsendedJune30,2016from18.6%forthesixmonthsendedJune30,2015.

Segment Results

Segmentoperatingincomebyreportablesegmentissummarizedasfollows:

MoreinformationonournetsalesbyreportablesegmentandsegmentoperatingincomecanbefoundinNote15—Segment Information toourunauditedconsolidatedfinancialstatements.

NetsalesinourTitleistgolfballssegmentdecreasedby$8.4million,or2.8%,to$296.2millionforthesixmonthsendedJune30,2016comparedto$304.7millionforthesixmonthsendedJune30,2015.Onaconstantcurrencybasis,netsalesinourTitleistgolfballssegmentwouldhavedecreasedby$5.3million,or1.7%,to$299.4million.ThisdecreasewasdrivenbyasalesvolumedeclineofourlatestgenerationProV1andProV1xgolfballs,whichwereintheirsecondmodelyear.Thedecreasewasoffsetinpartbyasalesvolumeincreaseofournewlyintroducedperformancegolfballmodels,whichperformancegolfballmodelshavealoweraveragesellingpricethanourProV1franchise.

Titleistgolfballssegmentoperatingincomedecreasedby$7.0million,or11.8%,to$52.4millionforthesixmonthsendedJune30,2016comparedto$59.4millionforthesixmonthsendedJune30,2015.Thisdecreasewasprimarilydrivenbylowergrossprofitof$9.1millionasaresultofagolfballmixshiftfromtheProV1franchisetotheperformancegolfballmodels,lowergainsonforeigncurrencyexchangecontracts,anda$2.9millionexpenserelatedtothesegmentallocationofthe

Sixmonthsended

June30, Increase/(Decrease) 2015 2016 $change %change (inthousands) Segmentoperatingincome(1) Titleistgolfballs $ 59,351 $ 52,353 $ (6,998) (11.8)%Titleistgolfclubs 33,329 37,489 4,160 12.5%Titleistgolfgear 11,818 14,616 2,798 23.7%FootJoygolfwear 31,860 25,766 (6,094) (19.1)%

(1) ExpensesrelatingtotheEARPlan,transactionsfees,restructuringchargesandothernon-operatinggainsandlosses,totheextentincurredintheapplicableperiod,arenotreflectedinsegmentoperatingincome.

TableofContents

one-timeexecutivebonus.Thisdecreasewaspartiallyoffsetbyloweroperatingexpensesduetoadecreaseof$1.6millioninadvertisingandpromotioncostsandadecreaseof$1.3millioninassociateincentivecompensationaccruals.

NetsalesinourTitleistgolfclubssegmentincreasedby$19.8million,or9.0%,to$240.3millionforthesixmonthsendedJune30,2016comparedto$220.5millionforthesixmonthsendedJune30,2015.Onaconstantcurrencybasis,netsalesinourTitleistgolfclubssegmentwouldhaveincreasedby$20.8million,or9.4%,to$241.3million.Thisincreasewasprimarilydrivenbyanincreaseinaveragesellingpricesonwedgesandirons,andhighersalesvolumesofournewVokeyDesignwedgeslaunchedinthefirstquarterof2016,ournewironserieslaunchedinthefourthquarterof2015,ournewJapan-specificVG3clubslaunchedinthefirstquarterof2016,andournewScottyCameronSelectputterslaunchedinthefirstquarterof2016.Thisincreasewaspartiallyoffsetbylowersalesvolumesofourdriversandfairways,whichwereintheirsecondmodelyear.

Titleistgolfclubssegmentoperatingincomeincreasedby$4.2million,or12.5%,to$37.5millionforthesixmonthsendedJune30,2016comparedto$33.3millionforthesixmonthsendedJune30,2015.Thisincreasewasdrivenbyhighergrossprofitof$10.7milliononincreaseinaveragesellingpricesonwedgesandironsandtheincreasedsalesasdiscussedabove.Thiswasoffsetinpartbyhigheroperatingexpensesprimarilyduetoanincreaseof$2.4millioninmarketingandpromotionalcostsrelatedtoournewproductlaunchesanda$1.8millionexpenserelatedtothesegmentallocationoftheone-timeexecutivebonus.

TitleistGolfGearSegment

NetsalesinourTitleistgolfgearsegmentincreasedby$8.1million,or10.7%,to$84.3millionforthesixmonthsendedJune30,2016comparedto$76.2millionforthesixmonthsendedJune30,2015.Onaconstantcurrencybasis,netsalesinourTitleistgolfgearsegmentwouldhaveincreasedby$9.3million,or12.3%,to$85.5million.Thisincreasewasduetosalesvolumegrowthinallcategoriesofthegearbusiness.

Titleistgolfgearsegmentoperatingincomeincreasedby$2.8million,or23.7%,to$14.6millionforthesixmonthsendedJune30,2016comparedto$11.8millionforthesixmonthsendedJune30,2015.Thisincreasewasdrivenbyhighergrossprofitof$3.3millionontheincreasedsalesasdiscussedabove.Thiswasoffsetinpartbya$0.7millionexpenserelatedtothesegmentallocationoftheone-timeexecutivebonus.

FootJoyGolfWearSegment

NetsalesinourFootJoygolfwearsegmentincreasedby$14.9million,or6.0%,to$264.0millionforthesixmonthsendedJune30,2016comparedto$249.2millionforthesixmonthsendedJune30,2015.Onaconstantcurrencybasis,netsalesinourFootJoygolfwearsegmentwouldhaveincreasedby$17.4million,or7.0%,to$266.6million.Thisincreasein2016wasprimarilyduetosalesvolumegrowthinourapparelandglovescategories.

FootJoygolfwearsegmentoperatingincomedecreasedby$6.1million,or19.1%,to$25.8millionforthesixmonthsendedJune30,2016comparedto$31.9millionforthesixmonthsendedJune30,2015.Thisdecreasewasattributabletolowergrossmarginandhigheroperatingexpenses.ThelowergrossmarginwasprimarilyduetoadecreaseingainsonforeigncurrencyexchangecontractscomparedtothesixmonthsendedJune30,2015.Theincreaseinoperatingexpensesin2016wasdrivenbya$2.1millionexpenserelatedtothesegmentallocationoftheone-timeexecutivebonusandanincreaseof$1.4millioninmarketingandpromotionalcostsandexpensesrelatedtoourFootJoyeCommerceandwomen'sgolfapparelinitiatives.

TableofContents

Year Ended December 31, 2015 Compared to the Year Ended December 31, 2014

Net Sales

Netsalesdecreasedby$34.7million,or2.3%,to$1,503.0millionfortheyearendedDecember31,2015comparedto$1,537.6millionfortheyearendedDecember31,2014.NetsalesweresignificantlyaffectedbytheimpactofastrongU.S.dollaronournetsalesoutsidetheUnitedStates.Onaconstantcurrencybasis,netsaleswouldhaveincreasedby$54.1million,or3.5%,to$1,591.7million.Thisconstantcurrencyincreasewasdrivenbyanincreaseof$24.4millioninnetsalesofFootJoygolfweardrivenbysalesvolumegrowthacrossallmajorcategories,anincreaseof$17.3millioninnetsalesofTitleistgolfballsasaresultoftheintroductionofthelatestgenerationofProV1andProV1xgolfballsinthefirstquarterof2015andanincreaseof$9.4millioninnetsalesofTitleistgolfgeardrivenbysalesvolumegrowthinallcategories,whichwasoffsetinpartbyadecreaseof$8.8millioninnetsalesofTitleistgolfclubs.TheremainingincreaseinnetsaleswasduetosalesvolumegrowthofproductsthataresoldinregionsoutsideoftheUnitedStatesandthatarenotallocatedtooneofourfourreportablesegments.

NetsalesintheUnitedStatesincreasedby$12.1million,or1.5%,to$805.5millionfortheyearendedDecember31,2015comparedto$793.3millionfortheyearendedDecember31,2014.ThisincreaseinnetsalesintheUnitedStateswasduetoanincreaseof$8.5millioninnetsalesofTitleistgolfballsalesandanincreaseof$6.4millioninnetsalesofFootJoygolfwear,offsetinpartbyadecreaseof$3.4millioninnetsalesofTitleistgolfclubs.

OursalesinregionsoutsideoftheUnitedStatesdecreasedby$46.8million,or6.2%,to$697.5millionfortheyearendedDecember31,2015comparedto$744.3millionfortheyearendedDecember31,2014.ThisdecreaseinnetsalesinregionsoutsideoftheUnitedStateswaslargelyduetotheimpactofunfavorableforeigncurrencytranslation.Onaconstantcurrencybasis,netsalesin

YearendedDecember31, Increase/(Decrease)

ConstantCurrencyIncrease/(Decrease)

2014 2015 $change %change $change %change (inthousands) Titleistgolfballs $ 543,843 $ 535,465 $ (8,378) (1.5)% $ 17,321 3.2%Titleistgolfclubs 422,383 388,304 (34,079) (8.1)% (8,815) (2.1)%Titleistgolfgear 127,875 129,408 1,533 1.2% 9,374 7.3%FootJoygolfwear 421,632 418,852 (2,780) (0.7)% 24,446 5.8%

2014 2015 $change %change $change %change (inthousands) UnitedStates $ 793,328 $ 805,470 $ 12,142 1.5% $ 12,142 1.5%EMEA 216,531 201,106 (15,425) (7.1)% 16,280 7.5%Japan 195,762 182,163 (13,599) (6.9)% 13,566 6.9%Korea 141,168 144,956 3,788 2.7% 14,585 10.3%Restofworld 190,821 169,263 (21,558) (11.3)% (2,458) (1.3)%Totalsales $ 1,537,610 $ 1,502,958 $ (34,652) (2.3)%$ 54,115 3.5%

TableofContents

suchregionswouldhaveincreasedby$42.0million,or5.6%,to$786.3million,drivenbyanincreaseof$18.0millioninnetsalesofFootJoygolfwear,anincreaseof$8.8millioninnetsalesofTitleistgolfgear,andanincreaseof$8.8millioninnetsalesofTitleistgolfballs,offsetpartiallybyadecreaseof$5.5millioninnetsalesofTitleistgolfclubs.

MoreinformationonournetsalesbyreportablesegmentandbyregioncanbefoundinNote21—Segment Information toourauditedconsolidatedfinancialstatements.

Gross Profit

Grossprofitincreasedby$17.9millionto$775.8millionfortheyearendedDecember31,2015from$757.9millionfortheyearendedDecember31,2014.Grossmarginincreasedto51.6%fortheyearendedDecember31,2015comparedto49.3%fortheyearendedDecember31,2014.ThisincreaseingrossmarginwasprimarilyduetotheintroductionofthelatestgenerationofProV1andProV1xgolfballsinthefirstquarterof2015whichledtoafavorablegolfballmixshifttotheProV1franchise.ThiswascoupledwithoverheadabsorptionandsavingsassociatedwithoperationsatourgolfballmanufacturingplantinThailandachievedasaresultofproductionramp-up,aswellaslowerballrawmaterialcost.

Selling,generalandadministrativeexpensesincreasedby$1.2millionto$604.0millionfortheyearendedDecember31,2015from$602.8millionfortheyearendedDecember31,2014.ExcludingtheexpenseassociatedwithourEARplan,selling,generalandadministrativeexpenseswouldhaveincreasedby$6.3millionto$561.4millionfortheyearendedDecember31,2015from$555.1millionfortheyearendedDecember31,2014.Thisincreasewasduetoa$27.3millionaggregateincreaseprimarilyattributabletoanincreaseof$7.3millioninoutboundshippingandhandlingcostsonincreasedsalesvolume,anincreaseof$5.4millionintourendorsementcosts,anincreaseof$4.9millioninstaffingandrelatedexpenseswhichincludeinvestmentsinourFootJoyeCommerceandTitleistgolfgearinitiatives,anincreaseof$3.8millioninshare-basedcompensationexpense,andanincreaseof$2.7millioninspendingonpoint-of-salematerials.Thisincreasewaslargelyoffsetbya$21.0millionfavorableimpactofchangesinforeigncurrencyexchangerates.

R&Dexpensesincreasedby$1.8million,or3.9%,to$46.0millionfortheyearendedDecember31,2015from$44.2millionfortheyearendedDecember31,2014.ExcludingexpensesassociatedwithourEARPlan,R&Dexpenseswouldhaveincreasedby$1.5millionto$43.4millionfortheyearendedDecember31,2015from$41.9millionfortheyearendedDecember31,2014.ThisincreasewasmainlyattributabletoincreasedstaffingrelatedtogolfclubR&Dinsupportoffutureproductlaunches.Asapercentageofconsolidatednetsales,R&DexpensesexcludingexpensesassociatedwithourEARPlanwere2.9%in2015,upslightlyfrom2.7%in2014.

Intangibleamortizationexpenseswere$6.6millionfortheyearendedDecember31,2015and$6.7millionfortheyearendedDecember31,2014.

Restructuringchargeswere$1.6millionfortheyearendedDecember31,2015comparedtonorestructuringchargesfortheyearendedDecember31,2014.

TableofContents

Interestexpensedecreasedby$3.2millionto$60.3millionfortheyearendedDecember31,2015comparedto$63.5millionfortheyearendedDecember31,2014.Thisdecreasewasprimarilyduetoloweraverageoutstandingborrowingsin2015asaresultoftheredemptionsof$34.5millionand$34.5millionoftheprincipalofouroutstanding7.5%bondsdue2021usingtheproceedsoftheexerciseofaportionofouroutstandingcommonstockwarrantsinJuly2015andJuly2014,respectively,aswellasscheduledrepaymentsof$50.0millionand$50.0millionoftheprincipalonoursecuredfloatingratenotesinOctober2015andOctober2014,respectively.

Otherexpenseincreasedby$26.4millionto$25.1millionfortheyearendedDecember31,2015comparedtootherincomeof$1.3millionfortheyearendedDecember31,2014.Thischangewasprimarilyduetotherecognitionofalossof$28.4milliononthefairvaluemeasurementofthecommonstockwarrantsduringtheyearendedDecember31,2015comparedtoagainof$1.9millionduringtheyearendedDecember31,2014.ThelossonthefairvaluemeasurementofthecommonstockwarrantsfortheyearendedDecember31,2015wasduetoasignificantincreaseinourbusinessenterprisevalueduringsuchyearthatwasprimarilydrivenbyadecreaseinourweightedaveragecostofcapitalandanincreaseinourlong-termgrowthexpectation,whichreflectsamorefavorablelong-termmarketoutlook,andincreasesinthevaluationsrealizedbyanumberofthepublicly-tradedcompanieswithinourpeergroup.Thebusinessenterprisevalueisakeyinputinthecontingentclaimsanalysiswhichisthemethodologyutilizedtomeasurethefairvalueofthecommonstockwarrants.Thisincreaseinotherexpenseswasoffsetinpartbyanindemnificationgainof$3.0millionrecordedin2015relatedtotheadjustmentofindemnifiedtaxobligationsfortaxperiodspriortotheAcquisition.

Income Tax Expense

Incometaxexpenseincreased$11.3million,or67.7%,to$28.0millionfortheyearendedDecember31,2015,comparedto$16.7millionfortheyearendedDecember31,2014.OurETRwas87.1%fortheyearendedDecember31,2015,comparedto39.7%fortheyearendedDecember31,2014.TheincreaseinETRwasprimarilydrivenbyanincreaseinnon-cashfairvaluelossesonthecommonstockwarrantswhicharenottaxeffected,aswellasanincreasetoindemnifiedtaxobligationsfortaxperiodspriortotheAcquisition,andchangestothegeographicmixofearnings.

Net Income (Loss) Attributable to Acushnet Holdings Corp.

Netincome(loss)attributabletoAcushnetHoldingsCorp.decreasedby$22.6milliontoanetlossattributabletoAcushnetHoldingsCorp.of$1.0millionfortheyearendedDecember31,2015comparedtonetincomeattributabletoAcushnetHoldingsCorp.of$21.6millionfortheyearendedDecember31,2014.Thischangewasprimarilyaresultofanincreaseinotherexpenseof$26.4millionandincometaxexpenseof$11.3million,whichwasoffsetbyanincreaseof$13.3millioninincomefromoperationsandlowerinterestexpenseof$3.2million,asdiscussedinmoredetailabove.

Adjusted EBITDA

AdjustedEBITDAincreasedby$12.1millionto$214.7millionfortheyearendedDecember31,2015comparedto$202.6millionfortheyearendedDecember31,2014.AdjustedEBITDAmarginincreasedto14.3%in2015from13.2%in2014.

TableofContents

Segment Results

MoreinformationonournetsalesbyreportablesegmentandsegmentoperatingincomecanbefoundinNote21—Segment Information toourauditedconsolidatedfinancialstatement.

NetsalesinourTitleistgolfballssegmentdecreasedby$8.4million,or1.5%,to$535.5millionfortheyearendedDecember31,2015comparedto$543.8millionfortheyearendedDecember31,2014.Thedecreaseinnetsaleswasduetounfavorableforeigncurrencytranslation.Onaconstantcurrencybasis,netsalesinourTitleistgolfballssegmentwouldhaveincreasedby$17.3million,or3.2%,to$561.2million.Thisincreasein2015wasdrivenbyasalesvolumeshiftduetotheintroductionofthelatestgenerationofProV1andProV1xgolfballsinthefirstquarterof2015,whichhaveahigheraveragesellingpricethanourperformancemodels,whichexperiencedasalesvolumedeclineasaresultofbeingintheirsecondmodelyear.

Titleistgolfballssegmentoperatingincomeincreasedby$24.0million,or35.1%,to$92.5millionfortheyearendedDecember31,2015comparedto$68.5millionfortheyearendedDecember31,2014reflectinga$24.1millionincreaseingrossprofitduetoagolfballmixshifttotheProV1andProV1xfranchise,coupledwithoverheadabsorptionandsavingsassociatedwithoperationsatourgolfballmanufacturingplantinThailandachievedasaresultofproductionramp-up,aswellaslowerballrawmaterialcost.Operatingexpensesweredownslightlyin2015comparedto2014asincreasesof$3.3millioninprofessionaltourendorsementcostsandpoint-of-salematerialsand$2.5millioninoutboundshippingandhandlingcostsweremorethanoffsetbya$6.2millionfavorableimpactofchangesinforeigncurrencyexchangeratesonouroperatingexpenses.

2014 2015 $change %change $change %change (inthousands) Titleistgolfballs $ 543,843 $ 535,465 $ (8,378) (1.5)% $ 17,321 3.2%Titleistgolfclubs 422,383 388,304 (34,079) (8.1)% (8,815) (2.1)%Titleistgolfgear 127,875 129,408 1,533 1.2% 9,374 7.3%FootJoygolfwear 421,632 418,852 (2,780) (0.7)% 24,446 5.8%

2014 2015 $change %change (inthousands) Segmentoperatingincome(1) Titleistgolfballs $ 68,489 $ 92,507 $ 24,018 35.1%Titleistgolfclubs 45,845 33,593 (12,252) (26.7)%Titleistgolfgear 16,485 12,170 (4,315) (26.2)%FootJoygolfwear 28,639 26,056 (2,583) (9.0)%

(1) ExpensesrelatingtotheEARPlan,transactionfeesandrestructuringcharges,totheextentincurredintheapplicableperiod,arenotreflectedinsegmentoperatingincome.

TableofContents

NetsalesinourTitleistgolfclubssegmentdecreasedby$34.1million,or8.1%,to$388.3millionfortheyearendedDecember31,2015comparedto$422.4millionfortheyearendedDecember31,2014.Asignificantportionofthedecreaseinnetsaleswasduetounfavorableforeigncurrencytranslation.Onaconstantcurrencybasis,netsalesinourTitleistgolfclubssegmentwouldhavedecreasedby$8.8million,or2.1%,to$413.6million.Thedecreaseinnetsaleswasprimarilyduetolowersalesvolumesofourclubsacrossallproductcategories,withtheexceptionofhybrids,acategoryinwhichweintroducedanewmodelinthefallof2014.Webelievethesalesvolumedecreaseinthissegmentwascausedinpartbyhighlevelsofinventorysoldintoretailchannelsbyothergolfequipmentmanufacturers,whichledtoanincreaseinpromotionaldiscountingofsuchproductsthat,toacertainextent,adverselyimpactedsalesvolumesofpremiumpricedproductsinthemarketingeneral.Theresultingvolumedecreaseinourdriversandfairways,however,waspartiallyoffsetbyanincreaseinaveragesellingprices.

Titleistgolfclubssegmentoperatingincomedecreasedby$12.2million,or26.7%,to$33.6millionfortheyearendedDecember31,2015comparedto$45.8millionfortheyearendedDecember31,2014.Thisdecreasewasprimarilydrivenbya$14.4milliondecreaseingrossprofitprimarilyduetothesalesdeclinediscussedabove,offsetpartiallybyhighergrossmargin.Theincreaseingrossmarginwasdrivenbyincreasesinaveragesellingpricesofdriversandfairways.

NetsalesinourTitleistgolfgearsegmentincreasedby$1.5million,or1.2%,to$129.4millionfortheyearendedDecember31,2015comparedto$127.9millionfortheyearendedDecember31,2014.Onaconstantcurrencybasis,netsalesinourTitleistgolfgearsegmentwouldhaveincreasedby$9.4million,or7.3%,to$137.3million.Theconstantcurrencyincreasewasduetosalesvolumegrowthinallcategoriesofthegearbusiness.

Titleistgolfgearsegmentoperatingincomedecreasedby$4.3million,or26.2%,to$12.2millionfortheyearendedDecember31,2015comparedto$16.5millionfortheyearendedDecember31,2014.Thisdecreasewasprimarilyattributabletohigheroperatingexpensesasaresultofincreasesof$4.8millionindistributionexpensesand$1.5millioninstaffingandrelatedexpensesasaresultofinvestmentstosupportfuturegrowthinthissegment.DistributionexpensesincreasedduetohigherutilizationbytheTitleistgolfgearsegmentofourWestCoastdistributionfacility,coupledwithincreasedtransportationcarrierratesthataffectedthiscategory.Thisincreaseinoperatingexpenseswaspartiallyoffsetbya$1.6millionfavorableimpactofchangesinforeigncurrencyexchangeratesonouroperatingexpenses.

NetsalesinourFootJoygolfwearsegmentdecreasedby$2.8million,or0.7%,to$418.8millionfortheyearendedDecember31,2015comparedto$421.6millionfortheyearendedDecember31,2014.Thedecreaseinnetsaleswasduetounfavorableforeigncurrencytranslation.Onaconstantcurrencybasis,netsalesinourFootJoygolfwearsegmentwouldhaveincreasedby$24.4million,or5.8%,to$446.0million.Thisincreasewasduetohigheraveragesellingpricesinourgolfshoesandglovescategoriesandanincreaseinsalesvolumesinourapparelcategory.

FootJoygolfwearsegmentoperatingincomedecreasedby$2.5million,or9.0%,to$26.1millionfortheyearendedDecember31,2015comparedto$28.6millionfortheyearendedDecember31,2014.Thisdecreasewasprimarilyattributabletohigheroperatingexpenses,whichwereprimarilyduetoincreasesof$3.3millioninstaffingandrelatedexpenseswhichincludeinvestmentsinourFootJoyeCommerceandshoefittinginitiatives,$1.8millioninprofessionaltourendorsementcosts,$1.7millionindistributionexpenses,aswellas$1.1millioninmarketingandpromotionalspendingprimarilyfor

TableofContents

point-of-salematerials.Thisdecreasewaslargelyoffsetbya$6.6millionfavorableimpactofchangesinforeigncurrencyexchangeratesonouroperatingexpenses.

Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013

Net Sales

Netsalesincreasedby$60.4million,or4.1%,to$1,537.6millionfortheyearendedDecember31,2014comparedto$1,477.2millionfortheyearendedDecember31,2013.Onaconstantcurrencybasis,netsaleswouldhaveincreasedby$73.8million,or5.0%,to$1,551.0million.Theincreaseinnetsalesonaconstantcurrencybasiswasduetoanincreaseof$34.7millioninnetsalesofTitleistgolfclubdrivenbythenewwedgesandputtersintroducedin2014andcontinuedsuccessofourironfranchise,anincreaseof$28.5millioninnetsalesofFootJoygolfweardrivenbysalesvolumegrowthacrossallmajorcategories,andanincreaseof$11.5millioninnetsalesofTitleistgolfgeardrivenbysalesvolumegrowthinourgolfbag,headwearandtravelgearcategories,whichwasoffsetinpartbyadecreaseof$5.9millioninnetsalesofTitleistgolfballs.TheremainingincreaseinnetsaleswasduetosalesvolumegrowthofproductsthataresoldinregionsoutsidetheUnitedStatesandthatarenotallocatedtooneofourfourreportablesegments.

NetsalesintheUnitedStatesincreasedby$23.8million,or3.1%,to$793.3millionfortheyearendedDecember31,2014comparedto$769.5millionfortheyearendedDecember31,2013.ThisincreaseinnetsalesintheUnitedStateswasduetoanincreaseof$22.9millioninnetsalesofTitleistgolfclubsdrivenbynewwedgesandputtersintroducedin2014andthecontinuedsuccessofourironfranchise,anincreaseof$8.3millioninnetsalesofFootJoygolfwearandanincreaseof$2.8millioninnetsalesofTitleistgolfgear,offsetpartiallybyadecreaseof$10.1millioninnetsalesofTitleistgolfballs.

2013 2014 $change %change $change %change (inthousands) UnitedStates $ 769,480 $ 793,328 $ 23,848 3.1% $ 23,848 3.1%EMEA 195,291 216,531 21,240 10.9% 14,842 7.6%Japan 196,957 195,762 (1,195) (0.6)% 15,602 7.9%Korea 118,957 141,168 22,211 18.7% 16,315 13.7%Restofworld 196,534 190,821 (5,713) (2.9)% 3,223 1.6%Totalsales $ 1,477,219 $ 1,537,610 $ 60,391 4.1% $ 73,830 5.0%

TableofContents

OurnetsalesinregionsoutsideoftheUnitedStatesincreasedby$36.5million,or5.2%,to$744.3millionfortheyearendedDecember31,2014comparedto$707.7millionfortheyearendedDecember31,2013.Onaconstantcurrencybasis,netsalesinsuchregionswouldhaveincreasedby$50.0million,or7.1%,to$757.7million.ThisincreaseinnetsalesinregionsoutsideoftheUnitedStateswasdrivenbyanincreaseof$20.2millioninnetsalesofFootJoygolfwear,anincreaseof$11.8millioninnetsalesofTitleistgolfclubs,anincreaseof$8.6millioninnetsalesofTitleistgolfgear,andanincreaseof$4.2millioninnetsalesofTitleistgolfballs.

MoreinformationonournetsalesbyreportablesegmentandbyregioncanbefoundinNote21—Segment Information toourauditedconsolidatedfinancialstatements.

Gross Profit

Grossprofitincreasedby$24.8millionto$757.9millionfortheyearendedDecember31,2014from$733.1millionfortheyearendedDecember31,2013asaresultoftheincreaseinnetsalesdiscussedabove.Grossmargindecreasedslightlyto49.3%fortheyearendedDecember31,2014comparedto49.6%fortheyearendedDecember31,2013.

Selling,generalandadministrativeexpensesincreasedby$34.4million,or6.1%,to$602.8millionfortheyearendedDecember31,2014comparedto$568.4millionfortheyearendedDecember31,2013.ExcludingtheexpenseassociatedwithourEARplan,selling,generalandadministrativeexpenseswouldhaveincreasedby$13.3millionto$555.1millionfortheyearendedDecember31,2014comparedto$541.8millionfortheyearendedDecember31,2013.Thisincreasewasduetoa$16.5millionaggregateincreaseprimarilyattributabletoincreasesof$5.1millioninsellingpersonnelandrelatedexpenses,$4.0millioninshippingandhandlingcostsasaresultofincreasedsalesvolume,and$7.6millionincorporateadministrativeexpensesasaresultof$2.1millionincostsrelatedtoournewenterpriseresourceplanningsystemand$2.4millioninoutsideconsultingservices.Thisincreasewaspartiallyoffsetbya$3.2millionfavorableimpactofchangesinforeigncurrencyexchangerates.

R&Dexpensesincreasedby$2.0million,or5.0%,to$44.2millionfortheyearendedDecember31,2014comparedto$42.2millionfortheyearendedDecember31,2013.ExcludingexpensesassociatedwithourEARplan,R&Dexpenseswouldhaveincreasedby$0.9millionto$41.9millionfortheyearendedDecember31,2014comparedto$41.0millionfortheyearendedDecember31,2013.TheincreasewasprimarilyattributabletoincreasedresearchstaffingandrelatedexpensestosupportcontinuedgrowthinourTitleistgolfclubssegment.Asapercentageofnetsales,R&DexcludingexpensesassociatedwithourEARplanwere2.7%in2014,downslightlyfrom2.8%in2013.

Intangibleamortizationexpenseswere$6.7millioninboth2014and2013.

TherewerenorestructuringchargesfortheyearendedDecember31,2014comparedto$1.0millionofexpensesduetorestructuringchargesfortheyearendedDecember31,2013.

TableofContents

Interestexpensedecreasedby$4.6million,or6.8%,to$63.5millionfortheyearendedDecember31,2014comparedto$68.1millionfortheyearendedDecember31,2013.Thisdecreasewasprimarilyduetoloweraverageoutstandingborrowingsin2014asaresultoftheredemptionsof$34.5millionand$34.5millionoftheprincipalofouroutstanding7.5%bondsdue2021usingtheproceedsoftheexerciseofaportionofouroutstandingcommonstockwarrantsinJuly2014andAugust2013,respectively,aswellasscheduledrepaymentsof$50.0millionand$25.0millionoftheprincipalonoursecuredfloatingratenotesinOctober2014andOctober2013.

Otherexpensedecreasedby$6.6milliontootherincomeof$1.3millionfortheyearendedDecember31,2014comparedtootherexpenseof$5.3millionfortheyearendedDecember31,2013.Thisdecreasewasprimarilyduetoanindemnificationlossof$6.3millionrecordedin2013relatedtotheadjustmentofindemnifiedtaxobligationsfortaxperiodspriortotheAcquisition.

Income Tax Expense

Incometaxexpensedecreasedby$0.5million,or2.9%,to$16.7millionfortheyearendedDecember31,2014comparedto$17.2millionfortheyearendedDecember31,2013.OurETRwas39.7%fortheyearendedDecember31,2014,comparedto41.4%fortheyearendedDecember31,2013.ThedecreaseinETRwasprimarilydrivenbyanincreasedproportionofforeignearningstaxedatlowerstatutoryrates,adecreasetothebenefitrecordedintaxexpenseforindemnifiedtaxobligationsforperiodspriortotheAcquisition,andanincreaseinnon-cashfairvaluegainsonthecommonstockwarrantswhicharenottaxeffected.

Net Income Attributable to Acushnet Holdings Corp.

NetincomeattributabletoAcushnetHoldingsCorp.increasedby$2.0millionto$21.6millionfortheyearendedDecember31,2014comparedto$19.6millionfortheyearendedDecember31,2013,principallyasaresultofthedecreaseininterestexpenseandotherexpense,of$11.2million,offsetbyadecreaseof$10.7millioninincomefromoperations,asdiscussedinmoredetailabove.

Adjusted EBITDA

AdjustedEBITDAincreasedby$12.2millionto$202.6millionfortheyearendedDecember31,2014comparedto$190.4millionfortheyearendedDecember31,2013.AdjustedEBITDAmarginincreasedto13.2%in2014from12.9%in2013.

Segment Results

(dollarsinthousands) 2013 2014 $change %change $change %change (inthousands) Titleistgolfballs $ 551,741 $ 543,843 $ (7,898) (1.4)% $ (5,915) (1.1)%Titleistgolfclubs 395,704 422,383 26,679 6.7% 34,700 8.8%Titleistgolfgear 117,015 127,875 10,860 9.3% 11,460 9.8%FootJoygolfwear 395,846 421,632 25,786 6.5% 28,474 7.2%

TableofContents

MoreinformationonournetsalesbyreportablesegmentandsegmentoperatingincomecanbefoundinNote21—Segment Information toourauditedconsolidatedfinancialstatement.

NetsalesinourTitleistgolfballssegmentdecreasedby$7.9million,or1.4%,to$543.8millionfortheyearendedDecember31,2014comparedto$551.7millionfortheyearendedDecember31,2013.Onaconstantcurrencybasis,netsalesinourTitleistgolfballssegmentwouldhavedecreasedby$5.9million,or1.1%,to$545.8million.Thedecreasein2014wasdrivenbyasalesvolumedeclineofourProV1andProV1xgolfballmodels,whichwereintheirsecondmodelyear.Thedecreasewasoffsetinpartbyasalesvolumeincreaseofournewlyintroducedperformancegolfballmodels,whichperformancegolfballmodelshavealoweraveragesellingpricethanourProV1franchise.

Titleistgolfballssegmentoperatingincomedecreasedby$1.4million,or2.0%,to$68.5millionfortheyearendedDecember31,2014comparedto$69.9millionfortheyearendedDecember31,2013.Thisdecreasewasdrivenbya$2.4milliondecreaseingrossprofitduetothelowernetsalesasdiscussedabove,offsetbyanincreaseingrossmarginwhichwasprimarilydrivenbyoverheadabsorptionandsavingsassociatedwithoperationsatourgolfballmanufacturingplantinThailandachievedasaresultofproductionramp-up,aswellaslowerballrawmaterialcost.

NetsalesinourTitleistgolfclubssegmentincreasedby$26.7million,or6.7%,to$422.4millionfortheyearendedDecember31,2014comparedto$395.7millionfortheyearendedDecember31,2013.Onaconstantcurrencybasis,netsalesinourTitleistgolfclubssegmentwouldhaveincreasedby$34.7million,or8.8%,to$430.4million.ThisincreasewasprimarilyduetohighersalesvolumesofthenewVokeyDesignwedgeslaunchedinthespringof2014andthenewScottyCameronputtermodelslaunchedinthefallof2013andspringof2014andournewironserieslaunchedinthefallof2013,offsetbylowersalesvolumesofourfairwaysandhybrids.

Titleistgolfclubssegmentoperatingincomeincreasedby$5.0million,or12.4%,to$45.8millionfortheyearendedDecember31,2014comparedto$40.8millionfortheyearendedDecember31,2013.Thisincreasewasdrivenbyan$11.3millionincreaseingrossprofitontheincreasedsalesasdiscussedabove,offsetbymoderatelylowergrossmarginandhigheroperatingexpenses.Theincreaseinoperatingexpensesin2014wasdrivenbyincreasesof$1.7millionincustomclubfittingandtrialexpenses,$1.3millioninR&Dstaffing,$0.9millioninexpensesrelatedtotheopeningofournewScottyCameronGalleryand$0.8millioninhighershippingandhandlingcosts.

2013 2014 $change %change (inthousands) Segmentoperatingincome(1) Titleistgolfballs $ 69,878 $ 68,489 $ (1,389) (2.0)%Titleistgolfclubs 40,792 45,845 5,053 12.4%Titleistgolfgear 14,922 16,485 1,563 10.5%FootJoygolfwear 23,109 28,639 5,530 23.9%

(1) ExpensesrelatingtotheEARPlan,transactionfeesandrestructuringcharges,totheextentincurredintheapplicableperiod,arenotreflectedinsegmentoperatingincome.

TableofContents

NetsalesinourTitleistgolfgearsegmentincreasedby$10.9million,or9.3%,to$127.9millionfortheyearendedDecember31,2014comparedto$117.0millionfortheyearendedDecember31,2013.Onaconstantcurrencybasis,netsalesinourTitleistgolfgearsegmentwouldhaveincreasedby$11.5million,or9.8%,to$128.5million.Thisincreasewasduetosalesvolumegrowthinourgolfbag,headwearandtravelgearcategories.

Titleistgolfgearsegmentoperatingincomeincreasedby$1.6million,or10.5%,to$16.5millionfortheyearendedDecember31,2014comparedto$14.9millionfortheyearendedDecember31,2013.Thisincreasewasdrivenbya$4.6millionincreaseingrossprofitontheincreasedsalesasdiscussedabove,partiallyoffsetbyhigheroperatingexpenses.Theincreaseinoperatingexpenseswasprimarilydrivenby$1.3millioninhighershippingandhandlingcostsontheincreasedgearshipmentsworldwideand0.9millioninsellingexpensesasaresultofinvestmentstosupportfuturegrowthinthissegment.

NetsalesinourFootJoygolfwearsegmentincreasedby$25.8million,or6.5%,to$421.6millionfortheyearendedDecember31,2014comparedto$395.8millionfortheyearendedDecember31,2013.Onaconstantcurrencybasis,netsalesinourFootJoygolfwearsegmentwouldhaveincreasedby$28.5million,or7.2%,to$424.3million.Thisincreasewasduetogrowthingolfshoesandapparel.Thegolfshoessalesgrowthwasdrivenbyincreasesinaveragesellingpricesin2014comparedto2013asaresultofafavorableproductmixshiftandlowercloseoutactivity.Theapparelsalesgrowthwasdrivenbyhighersalesvolumes.

FootJoygolfwearsegmentoperatingincomeincreased$5.5million,or23.9%,to$28.6millionfortheyearendedDecember31,2014comparedto$23.1millionfortheyearendedDecember31,2013.Thisincreasewasdrivenbya$10.7millionincreaseingrossprofitontheincreasedsalesasdiscussedabove,partiallyoffsetbyhigheroperatingexpenses.Theincreaseinoperatingexpenseswasdrivenbyincreasesof$2.3millioninsellingexpensesaswellas$2.0millioninshippingandhandlingcostsontheincreasedgolfwearshipments.

Seasonality, Cyclicality and Quarterly Results

Ourbusinessisseasonalandcyclicalduetoproductfactorssuchasweatherandproductlaunchcycles.See"—Overview—KeyFactorsAffectingOurResultsofOperations."

Thefollowingchartsandtablessetforthourhistoricalquarterlyresultsofoperationforeachofourmostrecenttenfiscalquarters.Thisunauditedquarterlyinformationhasbeenpreparedonthesamebasisasourannualauditedconsolidatedfinancialstatementsappearingelsewhereinthisprospectus,andintheopinionofmanagement,reflectsalladjustments,consistingofonlynormalrecurringadjustments,necessaryforafairstatementoftheconsolidatedresultsofoperationsforthese

TableofContents

periods.Thisunauditedquarterlyinformationshouldbereadinconjunctionwithourauditedconsolidatedfinancialstatementsandtherelatednotesappearingelsewhereinthisprospectus.

TableofContents

ThreeMonthsEnded

March31,

2014 June30,2014

September30,2014

December31,2014

March31,2015

June30,2015

September30,2015

December31,2015

March31,2016

June30,2016

(inthousands) Netsales $ 412,984 $ 455,721 $ 344,202 $ 324,703 $ 416,298 $ 446,576 $ 319,868 $ 320,216 $ 442,796 $ 460,199Grossprofit 204,812 228,191 170,131 154,798 215,258 237,687 157,340 165,553 225,465 233,776Operatingexpenses: Selling,generalandadministrative 157,628 157,165 139,365 148,598 153,727 159,280 144,246 146,766 153,348 153,423

Researchanddevelopment 10,978 10,142 10,413 12,710 11,014 11,614 11,395 11,954 11,130 11,693Income(loss)fromoperations 34,534 59,211 18,678 (8,176) 48,856 65,141 46 3,539 58,751 66,951

Netincome(loss)attributabletoAcushnetHoldingsCorp. 11,766 27,368 (1,142) (16,435) 14,802 18,654 (13,986) (20,436) 24,680 27,389

AdjustedEBITDA Netincome(loss)attributabletoAcushnetHoldingsCorp. 11,766 27,368 (1,142) (16,435) 14,802 18,654 (13,986) (20,436) 24,680 27,389Incometaxexpense(benefit) 7,193 15,907 1,378 (7,778) 18,962 17,957 (4,273) (4,652) 17,317 22,121

Interestexpense,net 15,458 16,231 18,175 13,665 15,331 15,199 17,563 12,201 13,841 14,563Depreciationandamortization 11,078 11,256 9,300 11,525 10,609 10,661 10,297 10,135 10,268 10,282

EARPlan(a) 8,776 10,144 8,982 22,811 10,200 12,465 10,423 12,726 — —Share-basedcompensation(b) — — 1,977 — 433 1,481 3,875 — — 964

One-timeexecutivebonus(c) — — — — — — — — 7,500 —

Restructuringcharges(d) — — — — — — — 1,643 587 55Thailandgolfballmanufacturingplantstart-upcosts(e) 370 146 105 167 — — — — — —

Transactionfees(f) 381 715 164 230 286 252 127 1,476 3,701 5,264Beamindemnificationexpense(income)(g) (35) 57 (45) 1,409 (5,539) 821 272 1,438 (494) 9

(Gains)lossesonthefairvalueofourcommonstockwarrants(h) (301) (862) (384) (340) 3,770 11,008 (243) 13,829 1,879 4,233

Othernon-cashgains,net (531) (23) (41) (33) (57) (64) 34 (82) (2) (293)Nonrecurringexpense(income)(i) — — — — — — — — — (1,467)

Netincomeattributabletononcontrollinginterests(j) 1,002 704 745 1,358 1,585 1,573 689 1,275 1,530 423

AdjustedEBITDA $ 55,157 $ 81,643 $ 39,214 $ 26,579 $ 70,382 $ 90,007 $ 24,778 $ 29,553 $ 80,807 $ 83,543

(a) ReflectsexpensesrelatedtotheanticipatedfullvestingofEARsgrantedunderourEARPlanandtheremeasurementoftheliabilityateachreportingperiodbasedonthethen-currentprojectionofourCSEvalue.See"—CriticalAccountingPoliciesandEstimates—Share-BasedCompensation."Wemayincuradditionalmaterialexpensesin2016inconnectionwiththeoutstandingEARs.AlloutstandingEARsundertheEARPlanvestedasofDecember31,2015.TheEARPlanexpiresonDecember31,2016andamountsearnedundertheEARPlanmustbepaidwithintwoandahalfmonthsaftertheexpirationdate.

(b) Reflectscompensationexpensein2014and2015associatedwiththeexerciseofsubstitutestockoptionsbyanexecutivewhichweregrantedinconnectionwiththeAcquisition.Allsuchstockoptionshavebeenexercised.Reflectscompensationexpensesin2016withrespecttoequity-basedgrantsunderthe2015IncentivePlanwhichweremadeinthesecondquarterof2016.

(d) Reflectsrestructuringchargesincurredinconnectionwiththereorganizationofcertainofouroperationsin2015andthethreemonthsendedJune30,2016.

(f) Reflectslegalfeesincurredin2014,2015andthethreemonthsendedJune30,2016relatingtoadisputearisingfromtheindemnificationobligationsowedtousbyBeaminconnectionwiththeAcquisitionaswellascertainfeesandexpensesweincurredin2015andthethreemonthsendedJune30,2016inconnectionwiththisoffering.

TableofContents

LiquidityandCapitalResources

Historically,ourprimarycashneedshavebeenworkingcapital,capitalexpenditures,servicingofourdebt,interestpaymentsonourConvertibleNotesand7.5%bondsdue2021,dividendsonourConvertiblePreferredStock,andpensioncontributionsand,inthesixmonthsendedJune30,2016,certainpaymentsrelatedtooutstandingEARsunderourEARPlan.Wehavereliedoncashflowsfromoperationsandborrowingsunderourformercreditfacilitiesandothercreditfacilitiesasourprimarysourcesofliquidity.

Wemade$8.1millionofcapitalexpendituresinthesixmonthsendedJune30,2016andplantomakecapitalexpendituresofapproximately$16.9millionintheremainderof2016,whichweexpecttofundfromcashflowsprovidedbyoperations.Weexpectthemajorityofcapitalexpendituresin2016willbeusedformaintenanceprojects.

Wemade$17.0millionofpaymentsrelatedtooutstandingEARsunderourEARPlaninthesixmonthsendedJune30,2016andexpecttomakeapproximately$7.3millionofpaymentsrelatedtooutstandingEARsunderourEARPlanintheremainderof2016,whichweexpecttofundfromcashflowsprovidedbyoperationsand/orborrowingsunderourrevolvingcreditfacilities.

Aftergivingeffectto(i)theautomaticconversionofallofourConvertibleNotesandtheautomaticconversionofourConvertiblePreferredStock,ineachcasepriortotheclosingofthisoffering,(ii)theexercisebyFilaKoreaofallofouroutstandingwarrantsandrelatedredemptionofouroutstanding7.5%bondsdue2021,whichoccurredinJuly2016,and(iii)theRefinancing,weexpectourprimarycashneedstocontinuetobeworkingcapital,capitalexpenditures,servicingofourdebt,andpensioncontributionsaswellaspaymentsof$7.3millionand$147.4milliondueintheremainderof2016andinthefirstquarterof2017,respectively,inconnectionwithpaymentsrelatedtooutstandingEARsundertheEARPlan.See"—ResultsofOperations—Selling,GeneralandAdministrativeExpenses"and"—LiquidityandCapitalResources—ContractualObligations."WeexpecttorelyoncashflowsfromoperationsandborrowingsunderournewrevolvingcreditfacilityandlocalcreditfacilitiesasourprimarysourcesofliquidityandtoborrowunderournewdelayeddrawtermloanAfacilityinthefirstquarterof2017tofundthepaymentsdueinconnectionwiththefinalpayoutoftheoutstandingEARsundertheEARPlan.

AsofJune30,2016,onaproformaasadjustedbasis,wewouldhavehad$227.1millionofavailabilityunderournewrevolvingcreditfacilityaftergivingeffectto$7.8millionofoutstandinglettersofcreditandwewouldhavehad$64.0millionavailableunderourlocalcreditfacilitiesthatwillremainoutstandingaftertheRefinancing.

Ourliquidityiscyclicalasaresultofthegeneralseasonalityofourbusiness.Ouraccountsreceivablebalanceisgenerallyatitshigheststartingattheendofthefirstquarterandcontinuingthroughthesecondquarter,anddeclinesduringthethirdandfourthquartersasaresultofbothanincreaseincashcollectionsandlowersales.Ourinventorybalancealsofluctuatesasaresultoftheseasonalityofourbusiness.Generally,ourbuildupofinventorystartsduringthefourthquarterandcontinuesthroughthefirstquarterandintothebeginningofthesecondquarterinordertomeetdemandforourinitialsell-ininthefirstquarterandreordersinthesecondquarter.Bothaccountsreceivableandinventorybalancesareimpactedbythetimingofnewproductlaunches.

Webelievethatcashexpectedtobeprovidedbyoperatingactivities,togetherwithourcashonhandandtheavailabilityofborrowingsunderournewrevolvingcreditfacilityandnewtermloanAfacility,willbesufficienttomeetourliquidityrequirementsforatleastthenext12months,subjecttocustomaryborrowingconditions.Ourabilitytogeneratesufficientcashflowsfromoperationsis,however,subjecttomanyrisksanduncertainties,includingfutureeconomictrendsandconditions,demandforourproducts,foreigncurrencyexchangeratesandotherrisksanduncertaintiesapplicabletoourbusiness,asdescribedunder"RiskFactors."

TableofContents

AsofJune30,2016,wehad$75.8millionofunrestrictedcash(including$15.1millionattributabletoourFootJoygolfshoejointventure).AsofJune30,2016,92.9%ofourtotalunrestrictedcashwasheldatournon-U.S.subsidiaries.Wemanageourworldwidecashrequirementsbymonitoringthefundsavailableamongoursubsidiariesanddeterminingtheextenttowhichwecanaccessthosefundsonacosteffectivebasis.Wearenotawareofanyrestrictionsonrepatriationofthesefundsand,subjecttothecashpaymentofadditionalU.S.incometaxesorforeignwithholdingtaxes,thosefundscouldberepatriated,ifnecessary.Atpresent,anyadditionaltaxescouldbeoffset,inwholeorinpart,byavailableforeigntaxcredits.Theamountofanytaxesrequiredtobepaidandtheapplicationoftaxcreditswouldbedeterminedbasedonincometaxlawsineffectatthetimeofsuchrepatriation.Wedonotexpectanysuchrepatriationtoresultinadditionaltaxexpensesastaxeshavebeenprovidedforourundistributedforeignearningsthatwedonotconsiderpermanentlyreinvested.Wehaverepatriated,andintendtorepatriate,fundstotheUnitedStatesfromtimetotimetosatisfydomesticliquidityneedsarisingintheordinarycourseofbusiness,includingliquidityneedsrelatedtodebtservicerequirements.

CashFlows

Thefollowingtablepresentsthemajorcomponentsofnetcashflowsusedinandprovidedbyoperating,investingandfinancingactivitiesfortheperiodsindicated:

Cash Flows From Operating Activities

Cashflowsfromoperatingactivitiesconsistprimarilyofnetincome(loss)adjustedforcertainnon-cashitems,includingdepreciationandamortization,deferredincometaxes,gainorlossonthefairvaluemeasurementofthecommonstockwarrants,andtheeffectofchangesinoperatingassetsandliabilities.Cashprovidedbychangesinoperatingassetsandliabilitiesprimarilyrelatestochangesinaccountsreceivable,inventoriesandaccountspayableandaccruedexpenses.

Netcashprovidedbyoperatingactivitieswas$55.5millionforthesixmonthsendedJune30,2016,comparedto$36.1millionforthesixmonthsendedJune30,2015,anincreaseof$19.4million.Theincreaseincashprovidedbyoperatingactivitieswasprimarilyduetoanincreaseinnetincomeafteradjustmentsfornon-cashitems,lowerincometaxespaidandamodestincreaserelatedtochangeinourworkingcapital,whichwereoffsetbyincreasesincashpaymentsrelatedtoourEARPlan,oursupplementalexecutiveretirementplanandthefirstinstallmentofaone-timeexecutivebonus.

Netcashprovidedbyoperatingactivitieswas$91.8millionfortheyearendedDecember31,2015,comparedto$54.1millionfortheyearendedDecember31,2014,anincreaseof$37.7million.Theincreaseinnetcashfromoperatingactivitieswasprimarilyduetoanincreaseof$26.4millioninnetincomeafteradjustmentsfornon-cashitems.Netcashprovidedbyoperatingassetsandliabilitiesincreased$11.3millionin2015comparedto2014.Inventoryincreasedyear-over-yeartosupportourfirstquarter2016launches,andwasoffsetbyincreasesinaccruedliabilitiesandothernoncurrentliabilities.

June30, 2013 2014 2015 2015 2016 (inthousands) Cashflowsprovidedby(usedin): Operatingactivities $ 78,795 $ 54,113 $ 91,830 $ 36,070 $ 55,487Investingactivities (46,360) (23,164) (21,839) (9,071) (8,156)Financingactivities (28,179) (30,154) (60,057) (4,876) (27,796)

Effectofforeignexchangeratechangesoncash (606) (2,385) (3,192) (1,144) 1,835Netincrease(decrease)incash $ 3,650 $ (1,590) $ 6,742 $ 20,979 $ 21,370

TableofContents

Netcashprovidedbyoperatingactivitieswas$54.1millionfortheyearendedDecember31,2014,comparedto$78.8millionfortheyearendedDecember31,2013,adecreaseof$24.7million.Thisdecreasewasprimarilyattributabletodecreasednetcashprovidedbyoperatingassetsandliabilities,whichweredown$32.6millioncomparedto2014.Accountsreceivableandinventoryincreasedyear-over-year,andwerepartiallyoffsetbyanincreaseinothernoncurrentliabilities.Theincreaseinouraccountsreceivablewasduetohighersalesinthefourthquarterof2014comparedto2013andtheincreasesininventoryweretosupportourfirstquarter2015launches.

Cash Flows From Investing Activities

Cashflowsfrominvestingactivitiesrelatealmostentirelytocapitalexpenditures.

Netcashusedininvestingactivitieswas$8.2millionforthesixmonthsendedJune30,2016,comparedto$9.1millionforthesixmonthsendedJune30,2015.

Netcashusedininvestingactivitieswas$21.8millionintheyearendedDecember31,2015comparedto$23.2millionintheyearendedDecember31,2014,adecreaseof$1.4million.Thedecreaseincashusedininvestingactivitieswasdrivenbylowerspendingonourenterpriseresourceplanningsystemimplementation,offsetinpartbyhighercapitalspendingongolfballandgolfclubmanufacturingmaintenanceandproductionefficiencyprojects.

Netcashusedininvestingactivitieswas$23.2millionin2014comparedto$46.4millionin2013,adecreaseof$23.2million.ThisdecreasewasprimarilyduetolowercapitalspendingrelatedtoourgolfballmanufacturingplantinThailand.

Cash Flows From Financing Activities

Cashflowsfromfinancingactivitiesconsistprimarilyofprincipalpaymentsonourformerseniortermloanfacility,dividendspaidonourConvertiblePreferredStock,netborrowingunderourformerseniorrevolvingcreditfacilityandothercreditfacilitiesaswellastheoffsettingeffectsofcashreceivedfromtheexerciseofcommonstockwarrantsandouruseoftheproceedsfromsuchexercisetoredeemacorrespondingamountofoutstanding7.5%bondsdue2021.

Netcashusedinfinancingactivitieswas$27.8millionforthesixmonthsendedJune30,2016,comparedto$4.9millionforthesixmonthsendedJune30,2015,anincreaseof$22.9million.Theincreaseincashusedinfinancingactivitieswasprimarilyduetothe$30.0millionrepaymentoftheseniortermloanfacility,offsetbyanetincreaseinaggregateborrowingsunderourrevolvingcreditandworkingcreditfacilitiesandothershort-termborrowings.

Netcashusedinfinancingactivitieswas$60.1millionintheyearendedDecember31,2015comparedto$30.2millionintheyearendedDecember31,2014,anincreaseof$29.9million.Theincreaseinnetcashusedinfinancingactivitieswasdrivenby$30.0millioninlowerborrowingsonourformerseniortermloanfacilityin2015comparedto2014.

Netcashusedinfinancingactivitieswas$30.2millionin2014comparedto$28.2millionin2013,anincreaseof$2.0million.Thisincreaseinnetcashusedinfinancingactivitieswasprimarilyattributabletohigherprincipalpaymentsonoursecuredfloatingratenotesin2014,partiallyoffsetbyproceedsfromourformerseniortermloanfacilityin2014.

Indebtedness

OnApril27,2016,AcushnetHoldingsCorp.,AcushnetCompany,ortheU.S.Borrower,AcushnetCanadaInc.,ortheCanadianBorrower,andAcushnetEuropeLimited,ortheUKBorrower,enteredintothenewcreditagreementwithWellsFargoBank,NationalAssociation,astheadministrativeagent,L/Cissuerandswinglinelenderandeachlenderfromtimetotimepartythereto,which

TableofContents

providesfor(i)anew$275.0millionmulti-currencyrevolvingcreditfacility,includinga$20.0millionletterofcreditsub-facility,aswinglinesublimitof$25.0million,aC$25.0millionsub-facilityforborrowingsbytheCanadianBorrower,a£20.0millionsub-facilityforborrowingsbytheUKBorrowerandanalternativecurrencysublimitof$100.0millionforborrowingsinCanadiandollars,euros,poundssterlingandJapaneseyen,(ii)anew$375.0milliontermloanAfacilityand(iii)anew$100.0milliondelayeddrawtermloanAfacility,eachofwhichmaturesonJuly28,2021.

ThenewcreditagreementwassignedandbecameeffectiveonApril27,2016andtheinitialfundingunderthenewcreditagreementoccurredonJuly28,2016.OnJuly28,2016,weusedtheproceedsofthenew$375.0milliontermloanAfacility,borrowingsofC$4.0million(equivalenttoapproximately$3.0million)underthenewrevolvingcreditfacilityandcashonhandof$23.6millionto(i)repayallamountsoutstandingunder,andterminate,oursecuredfloatingratenotesandcertainofourformerworkingcreditfacilities,(ii)terminateourformerseniorrevolvingcreditfacilityand(iii)payfeesandexpensesrelatedtotheforegoing.ThenewcreditagreementcontainsconditionsprecedenttotheU.S.Borrower'sabilitytoreceivetheproceedsofthenewdelayeddrawtermloanAfacility,includingthatthereshallnothaveoccurredamaterialadverseeffectwithrespecttotheU.S.Borrower.UntilJuly28,2017,thecommitmentsunderthenewdelayeddrawtermloanAfacilitywillbeavailabletomakepaymentsinconnectionwiththefinalpayoutoftheoutstandingEARsundertheEARPlan.

Inaddition,onJune30,2016,weusedcashonhandandborrowingsunderourformerseniorrevolvingcreditfacilitytorepayallamountsoutstandingunder,andterminate,ourformerseniortermloanfacility.

Inaddition,thenewcreditagreementallowsfortheincurrenceofadditionaltermloansorincreasestoournewrevolvingcreditfacilityinanaggregateprincipalamountnottoexceed(i)$200.0million,plus(ii)anunlimitedamountsolongastheNetAverageSecuredLeverageratio(definedastheratioofaverageConsolidatedSecuredFundedDebt(asdefinedinthenewcreditagreement)toAdjustedEBITDAfortheapplicabletestperiodinthenewcreditagreement)doesnotexceed2.00:1.00onaproformabasisand,subject,ineachcase,tocertainconditionsandreceiptofcommitmentsbyexistingoradditionalfinancialinstitutionsorinstitutionallenders.

Borrowings(otherthanswinglineloans)underthenewcreditagreementbearinterestatarateperannumequaltoanapplicablemargin(whichisdeterminedbasedontheNetAverageSecuredLeverageRatio)plus,atouroption,either(1)solelyforborrowingsinU.S.dollars,abaseratedeterminedbyreferencetothehighestof(a)theFederalFundsrateplus0.50%,(b)theprimerateofWellsFargoBank,NationalAssociationand(c)theEurodollarratedeterminedbyreferencetothecostoffundsforU.S.dollardepositsforaninterestperiodofonemonthadjustedforcertainadditionalcosts,plus1.00%or(2)aEurodollarratedeterminedbyreferencetothecostsoffundsfordepositsinthecurrencyoftheapplicableborrowingfortheinterestperiodrelevanttosuchborrowingadjustedforcertainadditionalcosts.Swinglineloansbearinterestatthebaserateplustheapplicablemargin.TheapplicablemarginforEurodollarborrowingsunderthenewcreditagreementisinitially1.75%andrangesfrom1.25%to2.00%,andisinitially0.75%andrangesfrom0.25%to1.00%forbase-rateborrowings,andineachcasevariesbaseduponaleverage-basedpricinggrid.

Interestonborrowingsunderthenewcreditagreementispayable(1)onthelastdayofanyinterestperiodwithrespecttoEurodollarborrowingswithanapplicableinterestperiodofthreemonthsorless,(2)everythreemonthswithrespecttoEurodollarborrowingswithaninterestperiodofgreaterthanthreemonthsor(3)onthelastbusinessdayofeachMarch,June,SeptemberandDecemberwithrespecttobaserateborrowingsandswinglineborrowings.Inaddition,beginningwiththedateoftheinitialfundingunderthenewcreditagreement,wearerequiredtopayacommitmentfeeonanyunutilizedcommitmentsunderthenewrevolvingcreditfacilityandthenewdelayeddrawtermloanAfacility.Theinitialcommitmentfeerateis0.30%perannumandrangesfrom0.20%to0.35%baseduponaleverage-basedpricinggrid.Wearealsorequiredtopaycustomaryletterofcreditfees.

TableofContents

Thenewcreditagreementrequiresustoprepayoutstandingtermloans,subjecttocertainexceptions,with:

• 100%ofthenetcashproceedsofallnon-ordinarycourseassetsalesorotherdispositionsofpropertybytheU.S.Borroweranditsrestrictedsubsidiaries(includinginsuranceandcondemnationproceeds,subjecttodeminimisthresholds),(1)ifwedonotreinvestthosenetcashproceedsinassetstobeusedinourbusinessortomakecertainotherpermittedinvestments,within12monthsofthereceiptofsuchnetcashproceedsor(2)ifwecommittoreinvestsuchnetcashproceedswithin12monthsofthereceiptthereof,butdonotreinvestsuchnetcashproceedswithin18monthsofthereceiptthereof;and

• 100%ofthenetproceedsofanyissuanceorincurrenceofdebtbytheU.S.Borroweroranyofitsrestrictedsubsidiaries,otherthandebtpermittedunderthenewcreditagreement.

Theforegoingmandatoryprepaymentsareusedtoreducetheinstallmentsofprincipalinsuchorder:first,toprepayoutstandingloansunderthenewtermloanAfacility,thenewdelayeddrawtermloanAfacilityandanyincrementaltermloansonaproratabasisindirectorderofmaturityandsecond,toprepayoutstandingloansunderthenewrevolvingcreditfacility.

Wemayvoluntarilyrepayoutstandingloansunderthenewcreditagreementatanytimewithoutpremiumorpenalty,otherthancustomary"breakage"costswithrespecttoEurodollarloans.AnyoptionalprepaymentoftermloanswillbeappliedasdirectedbytheU.S.Borrower.

Wewillberequiredtomakeprincipalpaymentsontheloansunderthetermloanfacilitiesinquarterlyinstallmentsinaggregateannualamountsequalto(i)5.00%oftheoriginalprincipalamountforthefirstandsecondyearafterJuly28,2016,(ii)7.50%oftheoriginalprincipalamountforthethirdandfourthyearafterJuly28,2016and(iii)10.0%oftheoriginalprincipalamountforthefifthyearafterJuly28,2016.TheremainingoutstandingamountispayableonJuly28,2021,thematuritydateforthetermloanfacilities.PrincipalamountsoutstandingunderthenewrevolvingcreditfacilitywillbedueandpayableinfullonJuly28,2021,thematuritydateforthenewrevolvingcreditfacility.

See"DescriptionofIndebtedness"foradescriptionofthecollateralandguarantees.

Thenewcreditagreementcontainsanumberofcovenantsthat,amongotherthings,restricttheabilityoftheU.S.Borroweranditsrestrictedsubsidiariesto(subjecttocertainexceptions),incur,assume,orpermittoexistadditionalindebtednessorguarantees;incurliens;makeinvestmentsandloans;paydividends,makepayments,orredeemorrepurchasecapitalstockormakeprepayments,repurchasesorredemptionsofcertainindebtedness;engageinmergers,liquidations,dissolutions,assetsales,andotherdispositions(includingsaleleasebacktransactions);amendorotherwisealtertermsofcertainindebtednessorcertainotheragreements;enterintoagreementslimitingsubsidiarydistributionsorcontainingnegativepledgeclauses;engageincertaintransactionswithaffiliates;alterthenatureofthebusinessthatweconductorchangeourfiscalyearoraccountingpractices.CertainexceptionstothesecovenantsaredeterminedbasedonratiosthatarecalculatedinpartusingthecalculationofAdjustedEBITDA.

ThenewcreditagreementcovenantsalsorestricttheabilityofAcushnetHoldingsCorp.toengageincertainmergersorconsolidationsorengageinanyactivitiesotherthanpermittedactivities.Thenewcreditagreementalsocontainscertaincustomaryaffirmativecovenantsandeventsofdefault(includingchangeofcontrol).Ifaneventofdefaultoccursandiscontinuing,theadministrativeagent,onbehalfofthelenders,mayacceleratetheamountsandterminateallcommitmentsoutstandingunderthenewcreditagreementandmayexerciseremediesinrespectofthecollateral.Inaddition,thenewcreditagreementincludesmaintenancecovenantsthatonandafterJuly28,2016requirecompliancebyAcushnetCompanywithcertainratios.Thesemaintenancecovenantsincludetherequirementtomaintain(i)aConsolidatedInterestCoverageRatio(definedastheratioofAdjustedEBITDAtoConsolidatedInterestExpense(asdefinedinthenewcreditagreement)fortheapplicableperiod)of

TableofContents

4.00:1.00orgreaterasoftheendofeachfiscalquarterand(ii)aNetAverageTotalLeverageRatio(definedastheratioofConsolidatedFundedDebt(asdefinedinthenewcreditagreement)toAdjustedEBITDAfortheapplicableperiod)of3.50:1.00orlessasoftheendofthefiscalquartersendedMarch31,2017andJune30,2017and3.25:1.00orlessasoftheendofeachotherfiscalquarter.Theavailabilityofcertainbasketsandtheabilitytoenterintocertaintransactions(includingtheabilityoftheU.S.BorrowertopaydividendstoAcushnetHoldingsCorp.)mayalsobesubjecttotheabsenceofadefaultand/orcompliancewithfinancialleverageratios.

ContractualObligations

ThefollowingtablesummarizesouroutstandingcontractualobligationsasofJune30,2016:

PaymentsDueByPeriod

Total Lessthan1Year 1-3Years 4-5Years

After5Years

(inthousands) Debtobligations(1) $ 819,735 $ 422,745 $ — $ — $ 396,990Interestpaymentsrelatedtolong-termdebtobligations(2) 182,804 48,821 59,548 59,548 14,887Capitalleaseobligations 1,321 — 1,321 — —Pensionandotherpostretirementbenefitobligations 224,985 13,812 36,920 41,795 132,458EARPlanliability(3) 154,670 154,670 — — —Purchaseobligations(4) 187,642 151,586 29,171 2,850 4,035Operatingleaseobligations(5) 26,448 10,773 12,212 3,089 374Total $ 1,597,605 $ 802,407 $ 139,172 $ 107,282 $ 548,744

(1) Long-termdebtobligationsconsistedofoutstandingprincipalofthesecuredfloatingratenotes,ConvertibleNotes,and7.5%bondsdue2021andformerseniortermloanfacility,andexcludescheduledinterestpayments.Allamountsoutstandingunderourlong-termdebtobligationsassociatedwith(i)thesecuredfloatingratenotessetforthabovewererepaidinconnectionwiththeRefinancing,(ii)theConvertibleNoteswillautomaticallyconvertintocommonstockpriortotheclosingofthisofferingand(iii)the7.5%bondsdue2021setforthabovewereredeemedupontheexerciseofalloftheoutstandingwarrantsinJuly2016.

AsofJune30,2016,onaproformabasisaftergivingeffecttotheconversionofallofourConvertibleNotespriortotheclosingofthisoffering,wewouldhavehad$32.1millionoflong-termdebtobligations,andonaproformaasadjustedbasisaftergivingfurthereffectto(i)theexercisebyFilaKoreaofallofouroutstandingwarrantsandrelatedredemptionofouroutstanding7.5%bondsdue2021,whichoccurredinJuly2016and(ii)theRefinancing,wewouldhavehad$375.9millionoflong-termdebtobligations,withsubstantiallyallofsuchlong-termdebtobligationsmaturingin2021.

(2) Includesinterestonthesecuredfloatingratenotes,ConvertibleNotes,and7.5%bondsdue2021.

OurproformatotalinterestexpensefortheyearendedDecember31,2015andthesixmonthsendedJune30,2016aftergivingeffecttotheconversionofallofourConvertibleNotespriortotheclosingofthisofferingwouldhavebeen$33.1millionand$14.8million,respectively,andourproformaasadjustedtotalinterestexpensefortheyearendedDecember31,2015andthesixmonthsendedJune30,2016aftergivingfurthereffecttotheexercisebyFilaKoreaofallofouroutstandingwarrantsandrelatedredemptionofouroutstanding7.5%bondsdue2021,whichoccurredinJuly2016,andtheRefinancingwouldhavebeen$16.7millionand$9.0million,respectively.

TableofContents

Off-BalanceSheetArrangements

Wedonothaveanyoff-balancesheetarrangements.

CriticalAccountingPoliciesandEstimates

Ourdiscussionandanalysisofresultsofoperations,financialconditionandliquidityarebaseduponourconsolidatedfinancialstatements,whichhavebeenpreparedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStates.Thepreparationoftheseconsolidatedfinancialstatementsrequiresustomakeestimatesandjudgmentsthataffectthereportedamountsofassets,liabilities,shareholders'equity,netsalesandexpenses,andthedisclosureofcontingentassetsandliabilitiesinourconsolidatedfinancialstatements.Webaseourestimatesonhistoricalexperience,knowntrendsandevents,andvariousotherfactorsthatwebelievearereasonableunderthecircumstances,theresultsofwhichformthebasisformakingjudgmentsaboutthecarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.

Managementevaluatedthedevelopmentandselectionofitscriticalaccountingpoliciesandestimatesandbelievesthatthefollowinginvolveahigherdegreeofjudgmentorcomplexityandaremostsignificanttoreportingourresultsofoperationsandfinancialposition,andarethereforediscussedascritical.Thefollowingcriticalaccountingpoliciesreflectthesignificantestimatesandjudgmentsusedinthepreparationofourconsolidatedfinancialstatements.Withrespecttocriticalaccountingpolicies,evenarelativelyminorvariancebetweenactualandexpectedexperiencecanpotentiallyhaveamateriallyfavorableorunfavorableimpactonsubsequentresultsofoperations.However,ourhistoricalresultsfortheperiodspresentedinourconsolidatedfinancialstatementshavenotbeenmateriallyimpactedbysuchvariances.MoreinformationonallofoursignificantaccountingpoliciescanbefoundinNote2—Summary of Significant AccountingPolicies toourauditedconsolidatedfinancialstatementsandNote1—Summary of Significant Accounting Policies toourunauditedconsolidatedfinancialstatements.

Revenue Recognition

WerecognizerevenueinaccordancewithASC605,"RevenueRecognition."Revenueisrecognizeduponshipmentoruponreceiptbythecustomer,dependingonthecountryofsaleandtheagreementwiththecustomer,netofanallowancefordiscounts,salesreturns,customersalesincentivesandcooperativeadvertising.Thecriteriaforrecognitionofrevenueismetwhenpersuasiveevidencethatanarrangementexists,bothtitleandriskoflosshavepassedtothecustomer,thepriceisfixedordeterminableandcollectabilityisreasonablyassured.Incircumstanceswhereeithertitleorriskoflosspassuponreceiptbythecustomer,wedeferrevenueuntilsucheventoccursbasedonourestimateof

(3) CertainpayoutsofoutstandingEARsundertheEARPlanwillbemadein2016andthefinalpayoutoftheoutstandingEARsundertheEARPlanwillbemadeinthefirstquarterof2017.Theoutstandingobligationsetforthaboveincludesinterestof$1.1millionthatwillaccreteontheEARsfortheremainderoftheyearendedDecember31,2016.

(4) Duringthenormalcourseofourbusiness,weenterintoagreementstopurchasegoodsandservices,includingpurchasecommitmentsforproductionmaterials,finishedgoodsinventory,capitalexpendituresandendorsementarrangementswithprofessionalgolfers.TheamountsreportedinthetableaboveexcludethoseliabilitiesincludedinaccountspayableoraccruedliabilitiesontheconsolidatedbalancesheetasofJune30,2016.

(5) Weleasecertainwarehouses,distributionandofficefacilities,vehiclesandofficeequipmentunderoperatingleases.Mostleasearrangementsprovideuswiththeoptiontorenewleasesatdefinedterms.Thefutureoperatingleaseobligationswouldchangeifweweretoexercisetheseoptionsorifweweretoenterintoadditionaloperatingleases.

TableofContents

theshippingtimefromourdistributioncenterstothecustomerusinghistoricalandexpecteddeliverytimesbygeographiclocation.Deliverytimesvarybygeographiclocation,butgenerallyrangefromthesamedaytofourdays.Wereviewtheseestimatesperiodicallytotesttheirreasonablenessascomparedtoactualtransactions.Historically,ouractualshippingtimeshavenotbeenmateriallydifferentfromourestimates.Amountsbilledtocustomersforshippingandhandlingareincludedinnetsales.Salestaxcollectedisnotrecognizedasrevenueasitisultimatelyremittedtogovernmentalauthorities.

Werecordanallowanceforanticipatedsalesreturnsthroughareductionofsalesandcostofgoodssoldintheperiodthattherelatedsalesarerecorded.Salesreturnsareestimatedbaseduponhistoricalratesofproductreturns,currenteconomictrendsandchangesincustomerdemandsaswellasspecificidentificationofoutstandingreturns.Wedonotbelievethereisareasonablelikelihoodthattherewillbeamaterialchangeintheassumptionsusedtocalculatetheallowanceforsalesreturns.However,iftheactualcostofsalesreturnsaresignificantlydifferentthantheestimatedallowance,ourresultsofoperationscouldbemateriallyaffected.

Weoffersales-basedincentiveprogramstocertaincustomersinexchangeforcertainbenefits,includingprominentproductplacementandexclusivestockingbyparticipatingretailers.Theseprogramstypicallyprovidequalifyingcustomerswithrebatesforachievingcertainpurchasegoals.Therebatesareaccountedforasareductioninsalesovertheperiodinwhichtherebateisearned.Ourestimateofthereductionofrevenuerequirestheuseofassumptionsrelatedtothepercentageofcustomerswhowillachievequalifyingpurchasegoalsandthelevelofachievement.Theseassumptionsarebasedonhistoricalexperience,currentyearprogramdesign,currentmarketplaceconditionsandsalesforecasts,includingconsiderationsofourproductlifecycles.Wedonotbelievethereisareasonablelikelihoodthattherewillbeamaterialchangeintheassumptionsusedtocalculateourestimateofthereductionofrevenue.

Allowance for Doubtful Accounts

Wemakeestimatesrelatedtoourabilitytocollectouraccountsreceivableandmaintainanallowanceforestimatedlossesresultingfromtheinabilityorunwillingnessofourcustomerstomakerequiredpayments.Theallowanceincludesamountsforcertaincustomerswhereariskofdefaulthasbeenspecificallyidentifiedaswellasaprovisionforcustomerdefaultsonaformulabasiswhenitisdeterminedtheriskofsomedefaultisprobableandestimable,butcannotyetbeassociatedwithspecificcustomers.Theassessmentofthelikelihoodofcustomerdefaultsisbasedonvariousfactors,includingcreditriskassessments,lengthoftimethereceivablesarepastdue,historicalexperience,customerspecificinformationavailabletousandexistingeconomicconditions,allofwhicharesubjecttochange.Wedonotbelievethereisreasonablelikelihoodthattherewillbeamaterialchangeintheassumptionsusedtocalculatetheallowancefordoubtfulaccounts.However,iftheactualuncollectedamountssignificantlyexceedtheestimatedallowance,ourresultsofoperationscouldbemateriallyaffected.

Inventories

Inventoriesarevaluedatthelowerofcostandnetrealizablevalue.Costisdeterminedusingthefirst-in,first-outinventorymethod.Theinventorybalance,whichincludesmaterial,laborandmanufacturingoverheadcosts,isrecordednetofanallowanceforobsoleteorslowmovinginventory.Thecalculationofourallowanceforobsoleteorslowmovinginventoryrequiresmanagementtomakeassumptionsandtoapplyjudgmentregardingthefuturedemandandmarketabilityofproducts,theimpactofnewproductintroductions,inventoryturn,productspoilageandspecificidentificationofitems,suchasproductdiscontinuance,engineering/materialchanges,orregulatory-relatedchanges.Wedonotbelievethereisareasonablelikelihoodthattherewillbeamaterialchangeintheassumptionsusedtocalculatetheallowanceforobsoleteorslowmovinginventory.However,ifestimatesregardingconsumerdemandareinaccurateorchangesintechnologyaffectdemandforcertainproductsinan

TableofContents

unforeseenmanner,wemayneedtoadjustourallowanceforobsoleteorslowmovinginventory,whichcouldhaveamaterialeffectonourresultsofoperations.

Impairment of Goodwill, Indefinite-Lived and Long-Lived Assets

Goodwill

Weevaluategoodwillannuallytodeterminewhetheritisimpaired.Goodwillisalsotestedmorefrequentlyifaneventoccursorcircumstanceschangethatwouldindicatethatthefairvalueofareportingunitislessthanitscarryingamount.Conditionsthatmayindicateimpairmentinclude,butarenotlimitedto,asignificantadversechangeincustomerdemandorbusinessclimatethatcouldaffectthevalueofanasset;generaleconomicconditions,suchasincreasingTreasuryratesorunexpectedchangesingrossdomesticproductgrowth;achangeinourmarketshares;budget-to-actualperformanceandconsistencyofoperatingmarginsandcapitalexpenditures;aproductrecalloranadverseactionorassessmentbyaregulator;orchangesinmanagementorkeypersonnel.Ifanimpairmentindicatorexists,wetestgoodwillforrecoverability.Wehaveidentifiedfivereportingunitsandselectedthefourthfiscalquartertoperformourannualgoodwillimpairmenttesting.

Weperformatwo-stepimpairmenttestongoodwill.Inthefirststep,wecomparethefairvalueofthereportingunittoitscarryingvalue.Ifthefairvalueofthereportingunitexceedsthecarryingvalueofthenetassetsassignedtothatunit,goodwillisconsiderednotimpairedandwearenotrequiredtoperformfurthertesting.Ifthecarryingvalueofthenetassetsassignedtothereportingunitexceedsthefairvalueofthereportingunit,thenwemustperformthesecondstepoftheimpairmenttestinordertodeterminetheimpliedfairvalueofthereportingunit'sgoodwill.Ifthecarryingvalueofareportingunit'sgoodwillexceedsitsimpliedfairvalue,thenwewouldrecordanimpairmentlossequaltothedifference.

Thefairvalueofourreportingunitsaredeterminedusingtheincomeapproach.Theincomeapproachusesadiscountedcashflowanalysis,whichinvolvesapplyingappropriatediscountratestoestimatedfuturecashflowsbasedonforecastsofsales,costsandcapitalrequirements.Themostsignificantestimatesandassumptionsinherentinthisapproacharetheenterprisevaluebasedontheestimatedpresentvalueoffuturenetcashflowsthebusinessisexpectedtogenerateoveraforecastedperiodandanestimateofthepresentvalueofcashflowsbeyondthatperiod,whichisreferredtoastheterminalvalue.Theestimatedpresentvalueiscalculatedusingadiscountrateknownastheweighted-averagecostofcapital,whichaccountsforthetimevalueofmoneyandtheappropriatedegreeofrisksinherentinthebusiness.Weestimatefuturesalesgrowthusinganumberofcriticalfactors,includingamongothers,ournatureandourhistory,financialandeconomicconditionsaffectingus,ourindustryandthegeneralcompany,pastresultsandourcurrentoperationsandfutureprospects.Forecastsoffutureoperationsarebased,inpart,onoperatingresultsandourexpectationsastofuturemarketconditions.Wedeemthediscountrateusedinouranalysistobecommensuratewiththeunderlyinguncertaintiesassociatedwithachievingtheestimatedcashflowsweproject.Thisanalysiscontainsuncertaintiesbecauseitrequiresustomakeassumptionsandtoapplyjudgmentstoestimateindustryeconomicfactorsandtheprofitabilityoffuturebusinessstrategies.Ifactualresultsarenotconsistentwithourestimatesandassumptions,wemaybeexposedtofutureimpairmentlossesthatcouldbematerial.

OurtestsforimpairmentofgoodwillresultedinadeterminationthatthefairvalueofeachreportingunitexceededthecarryingvalueofournetassetsfortheyearsendedDecember31,2013,2014and2015,respectively.Wedonotanticipateanymaterialimpairmentchargesinthenearterm.

Indefinite-Lived Intangible Assets

Ourtrademarkshavebeenassignedanindefinitelifeaswecurrentlyanticipatethatthesetrademarkswillcontributecashflowstousindefinitely.Weevaluatewhetherthetrademarkscontinue

TableofContents

tohaveanindefinitelifeonanannualbasis.Trademarksarereviewedforimpairmentannuallyinthefourthfiscalquarterandmaybereviewedmorefrequentlyifindicatorsofimpairmentarepresent.Conditionsthatmayindicateimpairmentinclude,butarenotlimitedto,asignificantadversechangeincustomerdemandorbusinessclimatethatcouldaffectthevalueofanasset,aproductrecalloranadverseactionorassessmentbyaregulator.

Impairmentlossesarerecordedtotheextentthatthecarryingvalueoftheindefinite-livedintangibleassetexceedsitsfairvalue.Wemeasurethefairvalueofourtrademarksusingtherelief-from-royaltymethod,whichestimatesthepresentvalueoftheroyaltyincomethatcouldbehypotheticallyearnedbylicensingthebrandnametoathirdpartyovertheremainingusefullife.Themostsignificantestimatesandassumptionsinherentinthisapproacharethegrowthrateofsalesfromthebusinessesthatusethesubjecttrademark,thenetroyaltysavingrateandthediscountrate.OurtestsforimpairmentoftrademarksresultedinadeterminationthatthefairvalueofthePinnacletrademarkwaslessthanitscarryingvalueof$3.7millionfortheyearendedDecember31,2014andresultedinanimpairmentchargeof$0.8million.NoimpairmentchargesforourtrademarkswererecordedfortheyearsendedDecember31,2013and2015orforthesixmonthsendedJune30,2015and2016.

Long-Lived Assets

Along-livedasset(includingamortizableidentifiableintangibleassets)orassetgroupistestedforrecoverabilitywhenevereventsorchangesincircumstancesindicatethatitscarryingamountmaynotberecoverable.Conditionsthatmayindicateimpairmentinclude,butarenotlimitedto,asignificantadversechangeincustomerdemandorbusinessclimatethatcouldaffectthevalueofanasset,aproductrecalloranadverseactionorassessmentbyaregulator.Whensucheventsoccur,wecomparethesumoftheundiscountedcashflowsexpectedtoresultfromtheuseandeventualdispositionoftheassetorassetgrouptothecarryingamountofthelong-livedassetorassetgroup.Thecashflowsarebasedonthebestestimateoffuturecashflowsderivedfromthemostrecentbusinessprojections.Ifthiscomparisonindicatesthatthereisimpairment,theamountoftheimpairmentiscalculatedbasedontheexcessoftheasset'sortheassetgroup'scarryingvalueoveritsfairvalue.Fairvalueisestimatedprimarilyusingdiscountedexpectedfuturecashflowsonamarket-participantbasis.Noimpairmentchargesforourlong-livedassetswererecordedfortheyearsendedDecember31,2013,2014and2015orforthesixmonthsendedJune30,2015and2016.

Pension and Other Postretirement Benefit Plans

WeprovideU.S.andforeigndefinedbenefitanddefinedcontributionplanstooureligibleemployeesandpostretirementbenefitstocertainretirees,includingpensions,postretirementhealthcarebenefitsandotherpostretirementbenefits.

Planassetsandobligationsaremeasuredusingvariousactuarialassumptions,suchasdiscountrates,rateofcompensationincrease,mortalityrates,turnoverratesandhealthcarecosttrendrates,asdeterminedateachyearendmeasurementdate.Themeasurementofnetperiodicbenefitcostisbasedonvariousactuarialassumptions,includingdiscountrates,expectedreturnonplanassetsandrateofcompensationincrease,whicharedeterminedasoftheprioryearmeasurementdate.Ouractuarialassumptionsarereviewedonanannualbasisandmodifiedwhenappropriate.

Approximately86.1%ofouremployeesarecoveredbydefinedbenefitpensionplansandapproximately29.8%ofouremployeesarecoveredbyotherpostretirementbenefitplans,ineachcaseasofDecember31,2015.Pensionplansprovidebenefitsbasedonplan-specificbenefitformulasasdefinedbytheapplicableplandocuments.Postretirementbenefitplansgenerallyprovideforthecontinuationofmedicalbenefitsforalleligibleemployees.Contributionstoourpostretirementbenefitplanaredeterminedbaseduponamountsneededtocoverpostretirementbenefitspaidduringthe

TableofContents

period,netofcontributionsmadebyeligibleemployees.Ingeneral,ourpolicyistofundourpensionbenefitobligationbasedonlegalrequirements,taxandliquidityconsiderationsandlocalpractices.

Ourprojectedbenefitobligationsrelatedtoourpensionandotherpostretirementbenefitplansarevaluedusingaweighted-averagediscountrateof4.16%and4.30%,respectively,fortheyearendedDecember31,2015.Thedeterminationofthediscountrateisgenerallybasedonanindexcreatedfromahypotheticalbondportfolioconsistingofhigh-qualityfixedincomesecuritieswithdurationsthatmatchthetimingofexpectedbenefitpayments.Changesintheselecteddiscountratecouldhaveamaterialimpactonourprojectedbenefitobligationsandtheunfundedstatusofourpensionandotherpostretirementbenefitplans.Decreasingthediscountrateby100basispointswouldhaveincreasedtheprojectedbenefitobligationsofourpensionandotherpostretirementbenefitplansbyapproximately$36.0millionand$2.2million,respectively,fortheyearendedDecember31,2015.

Ournetperiodicpensionbenefitandotherpostretirementbenefitcostiscalculatedusingavarietyofassumptions,includingaweightedaveragediscountrateandexpectedreturnonplanassets.Theexpectedreturnonplanassetsisdeterminedbasedonseveralfactors,includingadjustedhistoricalreturns,historicalriskpremiumsforvariousassetclassesandtargetassetallocationswithintheportfolio.Adjustmentsmadetothehistoricalreturnsarebasedonrecentreturnexperienceintheequityandfixedincomemarketsandthebeliefthatdeviationsfromhistoricalreturnsarelikelyovertherelevantinvestmenthorizon.Actualcostisalsodependentonvariousotherfactorsrelatedtotheemployeescoveredbytheseplans.Adjustmentstoouractuarialassumptionscouldhaveamaterialadverseimpactonouroperatingresults.Decreasingthediscountrateby100basispointswouldincreasenetperiodicpensionandotherpostretirementbenefitcostbyapproximately$3.1millionand$0.3million,respectively,fortheyearendedDecember31,2015.Decreasingtheexpectedreturnonplanassetsby100basispointswouldincreasenetperiodicpensionbenefitcostbyapproximately$2.0millionfortheyearendedDecember31,2015.

Product Warranty

Certainofourproductshavedefinedwarrantiesrangingfromonetotwoyears.ProductscoveredbyourdefinedwarrantypoliciesincludeallTitleistgolfproducts,FootJoygolfshoes,andFootJoygolfouterwear.Ourproductwarrantiesgenerallyobligateustopayforthecostofreplacementproducts,includingthecostofshippingreplacementproductstoourcustomers.Ourpolicyistoaccruetheestimatedcostofsatisfyingfuturewarrantyclaimsatthetimethesaleisrecorded.Inestimatingourfuturewarrantyobligations,weconsidervariousfactors,includingourwarrantypoliciesandpractices,thehistoricalfrequencyofclaims,andthecosttoreplaceorrepairproductsunderwarranty.

Weestimateourwarrantycostbasedonhistoricalwarrantyclaimsexperienceandavailableproductqualitydata.Incaseswherethereislittleornohistoricalclaimsexperience,weestimateourwarrantyobligationbaseduponlong-termhistoricalwarrantyratesofsimilarproductsuntilsufficientdataisavailable.Weupdateourestimatesasactualmodel-specificratesbecomeavailabletoensurethatourexpectedwarrantycostcontinuestobewithintherangeoflikelyoutcomes.Wedonotbelievethereisareasonablelikelihoodthattherewillbeamaterialchangeintheassumptionsusedtocalculateourwarrantyobligation.However,ifthenumberofactualwarrantyclaimsorthecostofsatisfyingwarrantyclaimsweretosignificantlyexceedtheestimatedwarrantyreserve,ourresultsofoperationscouldbemateriallyaffected.

Income Taxes

Currentincometaxexpenseorbenefitistheamountofincometaxesexpectedtobepayableorreceivableforthecurrentyear.Deferredincometaxassetsandliabilitiesrepresentthetemporarydifferencesbetweenthetaxbasisandfinancialreportingbasisofourassetsandliabilitiesandaredeterminedusingthetaxratesandlawsineffectfortheperiodsinwhichthedifferencesareexpected

TableofContents

toreverse.Wemayrecordvaluationallowancesfordeferredtaxassetstoreduceournetdeferredtaxassetstotheamountthatismore-likely-than-nottoberealized.

Thedeterminationofwhetheradeferredtaxassetwillberealizedismadeonbothajurisdictionalbasisandtheuseofourestimateoftherecoverabilityofthedeferredtaxasset.Inevaluatingwhetheravaluationallowanceisrequiredundersuchrules,weconsiderallavailablepositiveandnegativeevidence,includingourprioroperatingresults,thenatureandreasonforanylosses,ourforecastoffuturetaxableincomeineachrespectivetaxjurisdictionandthedatesonwhichanydeferredtaxassetsareexpectedtoexpire.Theseassumptionsrequireasignificantamountofjudgment,includingestimatesoffuturetaxableincome.Wedeterminedthatwewouldnotbeabletofullyrealizethebenefitsofallourstatedeferredtaxassets.AsofDecember31,2014and2015,acumulativevaluationallowanceof$13.9million,and$20.8million,respectively,wasrecorded.

Valuation of Common Stock Warrants

Weclassifywarrantstopurchasesharesofourcommonstockasaliabilityonourconsolidatedbalancesheetasthesewarrantsarefree-standingfinancialinstrumentsthatmayresultintheissuanceofavariablenumberofourcommonshares.Thewarrantswereinitiallyrecordedatfairvalueonthedateofgrant,andaresubsequentlyre-measuredtofairvalueateachreportingdate.Wewillcontinuetoadjusttheliabilityuntiltheearlieroftheexerciseofthewarrantsorexpirationofthewarrantsoccurs.

Toarriveatafairvalueofthewarrantstopurchasecommonstock,weperformatwo-stepprocess.WefirstestimatetheaggregatefairvalueoftheCompany(ourBusinessEnterpriseValue,orBEV)andthenallocatethisaggregatevaluetoeachelementofourcapitalstructureunderthecontingentclaimsmethodology.IndeterminingthefairvalueofourBEV,weusedacombinationoftheincomeapproachandthemarketapproachtoestimateouraggregateBEVateachreportingdate.Undertheincomeapproach,fairvalueisestimatedbasedonthediscountedpresentvalueofthecashflowsthatthebusinesscanbeexpectedtogenerateinthefuture.Themostsignificantestimatesandassumptionsinherentinthisapproacharetheenterprisevaluebasedontheestimatedpresentvalueoffuturenetcashflowsthebusinessisexpectedtogenerateoveraforecastedperiodandanestimateofthepresentvalueofcashflowsbeyondthatperiod,whichisreferredtoastheterminalvalue.Theestimatedpresentvalueiscalculatedusingadiscountrateknownastheweighted-averagecostofcapital,whichaccountsforthetimevalueofmoneyandtheappropriatedegreeofrisksinherentinthebusiness.Wealsoemployamarketapproach,whichisbasedontheguidelinepubliccompanymethod.Theguidelinepubliccompanymethodusesthefairvalueofapeergroupofpublicly-tradedcompaniesandconsidersmultiplesoffinancialmetricstoderivearangeofindicatedvalues.Determinationofthepeergroupisbasedonfactorsincluding,butnotlimitedto,thesimilarityoftheirindustry,growthrateandstageofdevelopment,businessmodelandfinancialrisk.Thesetypesofanalysescontainuncertaintiesbecausetheyrequireustomakeassumptionsandtoapplyjudgmenttoestimateindustryeconomicfactorsandtheprofitabilityoffuturebusinessstrategies.

BasedonourBEVateachreportingdate,ourestimatedaggregatefairvaluewasthenallocatedtosharesofcommonstock,sharesofredeemableconvertiblepreferredstock,convertiblenotes,bonds,employeestockoptionsandwarrantstopurchasecommonstockusingthecontingentclaimsmethodology.Underthismodel,eachcomponentofourcapitalstructureistreatedasacalloptionwithuniqueclaimonourassetsasdeterminedbythecharacteristicsofeachsecurity'sclass.Theresultingoptionclaimsarethenvaluedusinganoptionpricingmodel.Thismodeldefinesthefairvalueofeachclassofsecuritybasedonthecurrentaggregatefairvalueofthecompanyalongwithassumptionsbasedontherightsandpreferencesofeachclassofsecurity.Therightsandpreferencesofeachclassofsecurityarebaseduponanassumedliquidityevent,suchasananticipatedtimingofaninitialpublicoffering.Theanticipatedtimingofaliquidityeventutilizedinthesevaluationswasbased

TableofContents

onthencurrentplansandestimatesofourboardofdirectorsandmanagementregardinganinitialpublicoffering.

Keyassumptionsusedtovaluethewarrantsundertheoptionpricingmodelwereasfollows:

Wehistoricallyhavebeenaprivatecompanyandlackcompany-specifichistoricalandimpliedvolatilityinformationofourstock.Therefore,weestimateourexpectedvolatilitybasedonthehistoricalvolatilityofasetofpublicly-tradedpeercompaniesforatermequaltotheremainingcontractualtermofthewarrants.Therisk-freeinterestrateisdeterminedbyreferencetotheU.S.Treasuryyieldcurvefortimeperiodsapproximatelyequaltotheremainingtimetopurchaseforeachofthetranchesofwarrants.

Share-Based Compensation

FortheyearsendedDecember31,2013,2014and2015,weaccountedforcompensationexpenserelatedtoourshare-basedcompensationawards,includingEARsunderourEARPlanandstockoptionsgrantedinconnectionwiththeAcquisition,usingtheintrinsicvaluemethod,aspermittedbyASC718fornonpublicentities,withchangestothevalueoftheshare-basedcompensationawardsrecognizedascompensationexpenseateachreportingdate.CompensationexpensefortheEARPlanisbasedonthethen-currentprojectionofourCSEvalueasdefinedintheEARPlandocuments,whichisthehighestof(1)anamountcalculatedbyusingaformulabasedoncertainfinancialmetricsofAcushnetCompanyasofandfortheyearendedDecember31,2015,(2)anamountcalculatedbyusingaformulabasedoncertainfinancialmetricsofAcushnetCompanyasofandfortheyearendingDecember31,2016and(3)ifanIPOhasoccurred,anamountcalculatedbasedontheaveragepershareclosingpriceofthepubliclytradedcommonstockforthefirstthreefulltradingdaysfollowingthepricingofcommonstockintheIPO.Uponthefilingoftheregistrationstatement,weprospectivelychangedourmethodologyforvaluingtheEARstoafairvaluepricingmodelasrequiredbyASC718.Thischangeinaccountingdidnotimpactthecalculationofenterprisevalueundereitherclause(1)or(2)abovebutitdidimpactthecalculationofaveragepershareclosingpriceunderclause(3).However,asthecalculationunderclause(3)waslowerthanthecalculationunderclause(2)undereitheraccountingmethodology,thechangeinvaluationmethodsdidnothaveaneffectonourconsolidatedfinancialstatementsatJune30,2016.Subsequenttoourinitialpublicoffering,wewillhavetheoptiontosettleupto50%ofouroutstandingEARsusingourcommonstock.However,itiscurrentlyourintentiontosettletheentireamountsdueundertheEARsincash,whichpaymentsweexpecttofundfromcashflowsfromoperations,borrowingsunderournewrevolvingcreditfacilityandborrowingsunderournewdelayeddrawtermloanAfacility.

InJanuary2016,ourboardofdirectorsapprovedthe2015IncentivePlan,whichallowsgrantsofstockoptions,stockappreciationrights,restrictedsharesofcommonstock,restrictedstockunits,andotherstock-basedandcash-basedawardstoourdirectors,officers,employees,consultantsandadvisors.Weissuestock-basedawardstoemployeeswith(i)service-basedvestingconditionsor(ii)service-basedandperformance-basedvestingconditions.Wemeasurestock-basedawardsbasedonthedeemedfairvalueonthedateofgrantforaccountingpurposes,andrecognizethecorrespondingcompensationexpenseofthoseawards,netofestimatedforfeitures,overtherequisiteserviceperiod,whichisgenerallythevestingperiodoftherespectiveaward.Forawardswithonlyservice-basedvesting

December31,

2014 2015 ExercisePrice $ 11.11 $ 11.11 $ 11.11Volatility 30% 30% 40%Risk-freerate 0.47% 0.53% 0.25%Dividendyield 0.00% 0.00% 0.00%

TableofContents

conditions,compensationexpenseisrecordedusingthestraight-linemethod.Forawardswithservice-basedandperformance-basedvestingconditions,compensationexpenseisrecordedusingthestraight-linemethodoncewehavedeterminedthatthelikelihoodofmeetingtheperformanceconditionsisprobable,whichrequiresmanagementjudgment.

Astherehasbeennopublicmarketforourcommonstocktodate,thefairvalueofourcommonstockwasdeterminedbyourboardofdirectorsasofthedateofeachstock-awardgrantbasedonourmostrecentlyavailablethird-partyvaluationofcommonstock.Sinceouracquisitionin2011byFilaKoreaandtheFinancialInvestors,wehavehadathird-partyvaluationpreparedattheendofeachquarterinconnectionwithavaluationofthewarrantstopurchaseourcommonstockneededforthepreparationofourconsolidatedfinancialstatements.Thethird-partyvaluationsusedforthegrantsdescribedbelowwerepreparedusingacombinationofanincomeapproach,whichutilizedadiscountedcashflowmodel,andmarketapproach,whichutilizedacomparativemarketmultiplemodel.Theresultsfromeachofthemodelswerethenweightedandcombinedintoasingleestimateofcommonstockfairvalue.

OnJune15,2016,ourboardofdirectorsapprovedagrantunderour2015IncentivePlanofmulti-yearrestrictedstockunits(whichwerefertoasRSUs)andperformancestockunits(whichwerefertoasPSUs)tocertainkeymembersofmanagement.Thegrantsweremade50%inRSUsand50%inPSUs.One-thirdoftheRSUsvestoneachofJanuary1of2017,2018and2019.ThePSUscliff-vestonDecember31,2018,subjecttotheemployee'scontinuedemploymentandourlevelofachievementoftheapplicablecumulativeAdjustedEBITDAperformancemetrics(asdefinedintheapplicableawardagreements)measuredoverthethree-yearperformanceperiod.Wedeemedtheachievementoftheapplicablethree-yearcumulativeperformancetargetprobableasofJune30,2016.Onthedateofgrant,theboardofdirectorsdeterminedthefairvalueofcommonstockwas$19.07pershare.ForthesixmonthsendedJune30,2016,wemeasuredtheseawardsbasedonthedeemedfairvalueonthedateofgrantforaccountingpurposes,whichwedeterminedtobethefairvalueasofJune30,2016,whichwas$20.45pershare.

Subsequently,onAugust10,2016,ourboardofdirectorsapprovedasimilargrantofRSUsandPSUstocertainkeymembersofmanagement.Onthedateofsuchgrant,theboardofdirectorsdeterminedthefairvalueofcommonstockwas$20.45pershare.

Theassumptionsusedincalculatingthefairvalueofstock-basedcompensationawardsrepresentmanagement'sbestestimates,buttheestimatesinvolveinherentuncertaintiesandtheapplicationofmanagementjudgment.Asaresult,iffactorsorexpectedoutcomeschangeandweusesignificantlydifferentassumptionsorestimates,ourstock-basedcompensationexpensecouldbemateriallydifferent.

Followingtheclosingofthisoffering,thefairvalueofourcommonstockwillbedeterminedbasedonthequotedmarketpriceofourcommonstock.

RecentlyIssuedAccountingPronouncements

Wehavereviewedallrecentlyissuedstandardsandhavedeterminedthat,otherthanasdisclosedinNote2toourauditedconsolidatedfinancialstatementsandNote1toourunauditedconsolidatedfinancialstatementsincludedelsewhereinthisprospectus,suchstandardswillnothaveasignificantimpactonourconsolidatedfinancialstatementsordonototherwiseapplytoouroperations.

QuantitativeandQualitativeDisclosuresaboutMarketRisk

Weareexposedtovariousmarketrisks,whichmayresultinpotentiallossesarisingfromadversechangesinmarketrates,suchasinterestrates,foreignexchangeratesandcommodityprices.Wedonotenterintoderivativesorotherfinancialinstrumentsfortradingorspeculativepurposesanddonotbelieveweareexposedtomaterialmarketriskwithrespecttoourcashandcashequivalents.

TableofContents

Interest Rate Risk

Weareexposedtointerestrateriskunderourvariouscreditfacilitieswhichaccrueinterestatvariablerates,asdescribedaboveunder"—LiquidityandCapitalResources—Indebtedness"andinNote9—Debt and Financing Arrangements toourauditedconsolidatedfinancialstatementsandNote5—Debt andFinancing Arrangements toourunauditedconsolidatedfinancialstatementsinthisprospectus.Wecurrentlydonotengageinanyinterestratehedgingactivityandcurrentlyhavenointentiontodosointheforeseeablefuture.

AsofJune30,2016,wehad$817.0millionofoutstandingindebtedness,including$422.7millionofborrowingsatvariableinterestrates.A1.00%increaseintheinterestrateappliedtotheseborrowingswouldhaveresultedinanincreaseof$4.9millioninourannualpre-taxinterestexpense.

Interestrateriskishighlysensitiveduetomanyfactors,includingU.S.monetaryandtaxpolicies,U.S.andinternationaleconomicfactorsandotherfactorsbeyondourcontrol.Weareexposedtochangesinthelevelofinterestratesandtochangesintherelationshiporspreadbetweeninterestratesforourfloatingratedebt.OurfloatingratedebtrequirespaymentsbasedonavariableinterestrateindexsuchasLIBOR.Therefore,increasesininterestratesmayreduceournetincomebyincreasingthecostofourdebt.

Foreign Exchange Risk

Inthenormalcourseofbusiness,weareexposedtogainsandlossesresultingfromfluctuationsinforeigncurrencyexchangeratesrelatingtotransactionsoutsidetheUnitedStatesdenominatedinforeigncurrencies,whichinclude,butarenotlimitedto,theJapaneseyen,theKoreanwon,theBritishpoundsterling,theeuroandtheCanadiandollar.Inaddition,weareexposedtogainsandlossesresultingfromthetranslationoftheoperatingresultsofournon-U.S.subsidiariesintoU.S.dollarsforfinancialreportingpurposes.

Weusefinancialinstrumentstoreducetheimpactofchangesinforeigncurrencyexchangerates.Theprincipalfinancialinstrumentsweenterintoonaroutinebasisareforeignexchangeforwardcontracts.TheprimaryforeignexchangeforwardcontractspertaintotheJapaneseyen,theKoreanwon,theBritishpoundsterling,theeuroandtheCanadiandollar.Foreignexchangeforwardcontractsareprimarilyusedtohedgepurchasesdenominatedinselectforeigncurrencies.Theperiodsoftheforeignexchangeforwardcontractscorrespondtotheperiodsoftheforecastedtransactions,whichdonotexceed24monthssubsequenttothelatestbalancesheetdate.Wedonotenterintoforeignexchangeforwardcontractsfortradingorspeculativepurposes.

ThegrossU.S.dollarequivalentnotionalamountofallforeigncurrencyhedgesoutstandingatJune30,2016was$373.2million,representinganetsettlementliabilityof$18.6million.Gainsandlossesontheforeignexchangeforwardcontractsthatweaccountforashedgesoffsetlossesandgainsontheseforeigncurrencypurchasesandreducetheearningsandshareholders'equityvolatilityrelatingtoforeignexchange.

Weperformedasensitivityanalysistoassesspotentialchangesinthefairvalueofourforeignexchangeforwardcontractsrelatingtoahypotheticalmovementinforeigncurrencyexchangerates.ThesensitivityanalysisofchangesinthefairvalueofourforeignexchangeforwardcontractsoutstandingatJune30,2016,whilenotpredictiveinnature,indicatedthatiftheU.S.dollaruniformlyweakenedby10%againstallcurrenciescoveredbyourcontracts,thenetsettlementliabilityof$18.6millionwouldincreaseby$2.1millionresultinginanetsettlementliabilityof$20.7million.

ThesensitivityanalysisdescribedaboverecalculatesthefairvalueoftheforeignexchangeforwardcontractsoutstandingatJune30,2016byreplacingtheactualforeigncurrencyexchangeratesatJune30,2016withforeigncurrencyexchangeratesthatare10%weakerratesforeachapplicableforeigncurrency.Allotherfactorsareheldconstant.Thesensitivityanalysisdisregardsthepossibility

TableofContents

thatcurrencyexchangeratescanmoveinoppositedirectionsandthatgainsfromonecurrencymayormaynotbeoffsetbylossesfromanothercurrency.Theanalysisalsodisregardstheoffsettingchangeinvalueoftheunderlyinghedgedtransactionsandbalances.

Thefinancialmarketsandcurrencyvolatilitymaylimitourabilitytocost-effectivelyhedgetheseexposures.Thecounterpartiestoderivativecontractsaremajorfinancialinstitutions.Weassesscreditriskofthecounterpartiesonanongoingbasis.

Commodity Price Risk

Weareexposedtocommoditypriceriskwithrespecttocertainmaterialsandcomponentsusedbyus,oursuppliersandourmanufacturers,includingpolybutadiene,urethaneandSurlynforthemanufacturingofourgolfballs,titaniumandsteelfortheassemblyofourgolfclubs,leatherandsyntheticfabricsforourgolfshoes,golfgloves,golfgearandgolfapparel,andresinandotherpetroleum-basedmaterialsforanumberofourproducts.

ImpactofInflation

Ourresultsofoperationsandfinancialconditionarepresentedbasedonhistoricalcost.Whileitisdifficulttoaccuratelymeasuretheimpactofinflationduetotheimprecisenatureoftheestimatesrequired,webelievetheeffectsofinflation,ifany,onourresultsofoperationsandfinancialconditionhavebeenimmaterial.

InternalControlOverFinancialReporting

Asaprivatelyheldcompany,wearenotrequiredtocomplywiththerulesoftheSECimplementingSection404oftheSarbanes-OxleyActandarethereforenotcurrentlyrequiredtomakeaformalassessmentoftheeffectivenessofourinternalcontroloverfinancialreportingforthatpurpose.Uponbecomingapubliccompany,wewillberequiredtocomplywiththeSEC'srulesimplementingSections302and404oftheSarbanes-OxleyAct,whichwillrequiremanagementtocertifyfinancialandotherinformationinourannualandquarterlyreportsandprovideanannualmanagementreportontheeffectivenessofinternalcontroloverfinancialreporting.

InconnectionwiththeauditofourconsolidatedfinancialstatementsfortheyearsendedDecember31,2013,2014and2015,weandourindependentregisteredpublicaccountingfirmidentifiedmaterialweaknessesinourinternalcontroloverfinancialreporting.Amaterialweaknessisadeficiency,oracombinationofdeficiencies,ininternalcontroloverfinancialreporting,suchthatthereisareasonablepossibilitythatamaterialmisstatementofthecompany'sannualorinterimconsolidatedfinancialstatementswillnotbepreventedordetectedonatimelybasis.Wedidnothaveinplaceaneffectivecontrolenvironmentwithasufficientnumberofaccountingpersonnelwiththeappropriatetechnicaltrainingin,andexperiencewith,GAAPtoallowforadetailedreviewofcomplexaccountingtransactionsthatwouldidentifyerrorsinatimelymanner.Further,wedidnotdesignandhaveinplaceformallydocumentedandimplementedprocessesandprocedurestoaddresstheaccountingforincometaxes,derivatives,certaincompensationandbenefits,andfunctionalcurrency,includinginternalcommunicationprotocolsrelatedtomattersimpactingincometaxandbenefitaccounts.Wealsoidentifiedalackofsegregationofdutiesbetweentheabilitytocreateandpostjournalentries.ThelackofadequateaccountingpersonnelandformalprocessesandproceduresresultedinseveralauditadjustmentstoourconsolidatedfinancialstatementsfortheyearsendedDecember31,2013,2014and2015.

Wearecurrentlyintheprocessofremediatingthesematerialweaknessesandaretakingstepsthatwebelievewilladdresstheunderlyingcausesofthematerialweaknesses.Wehaveenlistedthehelpofexternaladvisorstoprovideassistanceintheareasoffinancialaccountingandtaxaccountingintheshortterm,andareevaluatingthelongertermresourceneedsofourvariousfinancialfunctions.In

TableofContents

addition,wehaveengagedanaccountingfirmtoevaluateanddocumentthedesignandoperatingeffectivenessofourinternalcontrolsandassistwiththeremediationandimplementationofourinternalcontrolsasrequired.Theseremediationmeasuresmaybetimeconsuming,costly,andmightplacesignificantdemandsonourfinancialandoperationalresources.

Inaddition,wehavebegunperformingsystemandprocessevaluationsandtestingofourinternalcontroloverfinancialreportingtoallowmanagementandourindependentregisteredpublicaccountingfirmtoreportontheeffectivenessofourinternalcontroloverfinancialreporting,asrequiredbySection404oftheSarbanes-OxleyAct,withauditorattestationoftheeffectivenessofourinternalcontrols,beginningwithourannualreportonForm10-Kforthesecondfiscalyearendingaftertheeffectivenessoftheregistrationstatementofwhichthisprospectusformsapart.Ourtesting,orthesubsequenttestingbyourindependentregisteredpublicaccountingfirm,mayrevealdeficienciesinourinternalcontrolsoverfinancialreportingthataredeemedtobeadditionalmaterialweaknesses,inadditiontothematerialweaknessesdescribedabove.

TableofContents

BUSINESS

Overview

Wearethegloballeaderinthedesign,development,manufactureanddistributionofperformance-drivengolfproducts,whicharewidelyrecognizedfortheirqualityexcellence.Drivenbyourfocusondedicatedanddiscerninggolfersandthegolfshopsthatservethem,webelievewearethemostauthenticandenduringcompanyinthegolfindustry.Ourmission—tobetheperformanceandqualityleaderineverygolfproductcategoryinwhichwecompete—hasremainedconsistentsinceweenteredthegolfballbusinessin1932.Today,wearethestewardoftwoofthemostreveredbrandsingolf—Titleist,oneofgolf'sleadingperformanceequipmentbrands,andFootJoy,oneofgolf'sleadingperformancewearbrands.Titleisthasbeenthe#1ballinprofessionalgolffor68yearsandFootJoyhasbeenthe#1shoeonthePGATourforoversixdecades.

Ourtargetmarketisdedicatedgolfers,whoarethecornerstoneoftheworldwidegolfindustry.Thesededicatedgolfersareavidandskill-biased,prioritizeperformanceandcommitthetime,effortandmoneytoimprovetheirgame.Webelieveourfocusoninnovationandprocessexcellenceyieldsgolfproductsthatrepresentsuperiorperformanceandconsistentproductquality,whicharethekeyattributessoughtafterbydedicatedgolfers.Manyofthegame'sprofessionalplayers,whorepresentthemostdedicatedgolfers,preferourproductstherebyvalidatingourperformanceandqualitypromise,whiledrivingbrandawareness.Weleverageapyramidofinfluenceproductandpromotionstrategy,wherebyourproductsarethemostplayedbythebestplayers,creatingaspirationalappealforabroadrangeofgolferswhowanttoemulatetheperformanceofthegame'sbestplayers.

Dedicatedgolfersviewpremiumgolfshops,suchason-coursegolfshopsandgolfspecialtyretailers,aspreferredretailchannelsforgolfproductsofsuperiorperformanceandproductquality.Asaresult,wehavecommittedtobeingoneofthepreferredandtrustedpartnerstopremiumgolfshopsworldwide.Thiscommitmentprovidesusaretailenvironmentwhereourproductperformanceandqualityadvantagecanmosteffectivelybecommunicatedtodedicatedgolfers.Inaddition,wealsoserviceotherqualifiedretailersthatsellgolfproductstoconsumersworldwide.

Ourvisionistoconsistentlyberegardedbyindustryparticipants,fromdedicatedgolferstothegolfshopsthatservethem,asthebestgolfcompanyintheworld.Wehaveestablishedleadershippositionsacrossallmajorgolfequipmentandgolfwearcategoriesunderourgloballyrecognizedbrands.

FortheyearendedDecember31,2015andthesixmonthsendedJune30,2016,werecordednetsalesof$1,503.0millionand$903.0million,netincome(loss)attributabletoAcushnetHoldingsCorp.of$(1.0)millionand$52.1millionandAdjustedEBITDAof$214.7millionand$164.4million,

• #1ballingolf

• Golf'sSymbolofExcellence

• Aleadingglobalgolfequipmentbrand

• #1shoeingolf

• #1gloveingolf

• Aleadingglobalgolfwearbrand

• #1wedgeonthePGATour

• AleadingputteronthePGATour

TableofContents

respectively.See"ProspectusSummary—SummaryConsolidatedFinancialData"forareconciliationofAdjustedEBITDAtonetincome(loss)attributabletoAcushnetHoldingsCorp.,themostdirectlycomparableGAAPfinancialmeasure.

OurHistoryandEvolution

FoundedinAcushnet,MassachusettsbyPhil"Skipper"Youngin1910andincorporatedastheAcushnetProcessCompany,wemanufacturedrubber-basedproductsincludingwaterbottles,gasmasksandbathingcaps.Ourgolfbusinesswasestablishedin1932whenYoung,adedicatedgolferhimself,missedacriticalputtinagolfmatch.Believingtheputttobewellstruck,Youngtooktheballtobex-rayed,whereitwasdiscoveredthattheball'scorewasoff-center.Followingthisseminaldiscoverythatmanycommerciallyavailablegolfballsfrequentlyhadmanufacturinginconsistencies,YoungsetoutwithMassachusettsInstituteofTechnologyclassmateFredBommertodevelopasuperiorgolfball.Afterthreeyearsofdevelopment,theTitleistgolfballwasintroduced.

Theobjectivefromtheverybeginningwastoproduceagolfballthatwouldsetthestandardinperformance,qualityandconsistency,andbecomethepreferredchoiceofdedicatedgolfersandthepreferredtradepartnerswhowouldservethem.Intheearlyyears,manyofthesepreferredtradepartnerswerealsosomeofthefirsttouringgolfprofessionals.SoontheTitleistgolfballwasthegolfballofchoicewherevercompetitivegolfwasplayed.Thecorevaluesofservingthegame'sdedicatedgolferwithasuperiorproduct,intermsofbothperformanceandquality,andhavingthatsuperiorproductvalidatedbythegame'smostdedicatedgolfersandpremiumgolfretailers,haveenduredforthepasteightdecades.

In1976,AcushnetCompanywasacquiredbyAmericanBrands,Inc.(thepredecessorcompanyofBeam).WeacquiredFootJoyin1985.OnJuly29,2011,AcushnetHoldingsCorp.(atthetimeknownasAlexandriaHoldingsCorp.),anentityownedbyFilaKoreaandtheFinancialInvestors,acquiredAcushnetCompanyfromBeam.

OurCoreFocus

Dedicated Golfers

Ourtargetmarketisdedicatedgolfers,whoareavidandskill-biased,prioritizeperformanceandcommitthetime,effortandmoneytoimprovetheirgame.Webelievethatdedicatedgolfersarethemostconsistentpurchasersofgolfproductsandestimatethatwhiletheyrepresentedonlyapproximately15%ofallUnitedStatesgolfers,theyaccountedformorethan40%oftotalroundsplayedandapproximately70%ofallgolfequipmentandgearspendingintheUnitedStatesduring2014.WealsobelievededicatedgolfersaccountforanoutsizeshareofgolfequipmentandgearspendingoutsidetheUnitedStatesandpurchaseasignificantportionofgolfwearproductsworldwide.

Product Platform

Leveragingthesuccessofourgolfballandgolfshoebusinesses,whilemaintainingthecorevaluesoftheTitleistandFootJoybrands,wehavestrategicallyenteredintoproductcategoriessuchasgolfclubs,wedges,putters,golfgloves,golfgearandgolfwearwithanobjectiveofbeingtheperformanceandqualityleader.

Sincethededicatedgolferviewseachperformanceproductcategoryonitsownmerits,wehaveapproachedeachcategoryonitsowntermsbycommittingthenecessaryresourcestobecometheperformanceandqualityleaderineachproductcategorywhereweparticipate.Asaresult,wehavebuiltanindustryleadingplatformacrossallperformanceproductcategories,drivingamarket-differentiatingmixofconsumableproducts,whichweconsidertobegolfballsandgolfgloves,whichcollectivelyrepresented43%ofournetsalesin2015,andmoredurableproducts,whichwe

TableofContents

considertobegolfclubs,golfshoes,golfapparelandgolfgear,whichcollectivelyrepresented57%ofournetsalesin2015.

Weoperateunderthefollowingfourreportablesegments.

Titleist Golf Balls (36% of 2015 net sales)

Titleististhe#1ballingolf.TheTitleistgolfballwasfoundedwithapurposeofdesigningandmanufacturingaperformanceoriented,highqualitygolfballthatwassuperiortoallotherproductsavailableinthemarket.Webelievethegolfballisthemostimportantpieceofequipmentinthegame,asitistheonlypieceofequipmentusedbyeveryplayerforeveryshot.Thegolfballisalsothemostimportantcategoryforusasitgeneratesthelargestportionofoursalesandprofits.Sinceitsintroductionin2000,theTitleistProV1hasbeenthebest-sellinggolfballgloballyandcontinuestosetthebarintermsofproductdesign,qualityandperformance.Wealsodesign,manufactureandsellothergolfballsundertheTitleistbrand,suchasNXTTour,VelocityandDTTruSoft,aswellasunderthePinnaclebrand.Wehavecontinuallyimprovedourgolfballsthroughinnovationinmaterials,constructionandmanufacturingprocesses,whichhasenabledustobuildthe#1golfballfranchiseintheworld.

Titleist Golf Clubs (26% of 2015 net sales)

Wedesign,assembleandsellgolfclubs(drivers,fairways,hybridsandirons)undertheTitleistbrand,wedgesundertheVokeyDesignbrandandputtersundertheScottyCameronbrand.Themissionofourgolfclubbusinessistodesignanddevelopthebestperforminggolfclubsintheworldfordedicatedgolfers.Webelievededicatedgolfersdonotbuybrandsacrosscategoriesbutseekoutbest-in-classproductsineachcategory.ThisisthereasonwehavepartneredwithdedicatedengineersandcraftsmensuchasBobVokeyandScottyCameron,whounderstandthenuances,subtletiesandimpactmechanicsoftheirrespectivegolfclubcategories.Titleistgolfclubs,VokeyDesignwedgesandScottyCameronputtersarewidelyusedbyprofessionalandcompetitiveamateurplayers,whichvalidatestheproducts'performanceandqualityexcellence.Wearealsocommittedtoaleadingclubfittingandtrialplatformtomaximizededicatedgolfers'performanceexperience.

Titleist Golf Gear (9% of 2015 net sales)

WeofferadiversifiedportfolioofTitleist-brandedperformancegolfgearacrossthegolfbags,headwear,gloves,travelgear,headcoversandothergolfgearcategories.Ourgolfgearisfocusedonsuperiorperformanceandqualityexcellence,whichisthemissionofanyproductbearingtheTitleistbrandname.

FootJoy Golf Wear (28% of 2015 net sales)

Wedesign,manufactureandsellgolfshoesandgloves,andwedesignandsellperformanceouterwear,apparelandsocksundertheFootJoybrand.Byofferingproductswithpremiummaterials,superiorcomfortandfitandauthenticdesigns,FootJoyhasbecomethe#1shoeand#1gloveingolfandaleaderintheglobalperformancegolfouterwearandtheU.S.golfapparelmarkets.WebelieveFootJoyisseenbygolfersaroundtheworldasanauthenticanddefinitivegolfbrandwithaconsistent,differentiatedfocusonperformanceandquality.

Pyramid of Influence

Thegameofgolfislearnedbyobservationandimitation,andgolfersimprovetheirownperformancebyattemptingtoemulatehighlyskilledgolfers.Golfersareinfluencednotonlybyhowothergolfersswingbutalsobywhattheyswingwithandwhattheyswingat.Thisistheessenceofgolf'spyramidofinfluence,whichisdeeplyingrainedinthemindsetofthededicatedgolfer.Atthetop

TableofContents

ofthepyramidisthemostdedicatedgolfer,whoattemptstomakealivingplayingthegameprofessionally.Adoptionbymostofthebestgolfers,whoseprofessionalsuccessdependsontheirperformance,validatesthequality,featuresandbenefitsofusingthebestperformingproducts.This,inturn,createsaspirationalappealforgolferswhowanttoemulatetheperformanceofthebestplayers.Byvirtueoftheperformanceandqualityexcellenceofourproducts,webelievewearebest-positionedtoleveragethepyramidofinfluencesincemostofthebestplayerstrustanduseTitleistandFootJoyproducts.Ourprimarymarketingstrategyisforourproductstobethemostplayedbythebestplayers,includingbothprofessionalandamateurgolfers.Thisstrategyhasproventobeenduringandeffectiveinthelong-termandisnotdependentonthetransientsuccessofafeweliteplayersatanygivenpointintime.

Innovation Leadership

Webelieveinnovationiscriticaltodedicatedgolfersastheydependontheabilityofnewandinnovativeproductstodriveimprovedperformance.Sinceweenteredthegolfballbusinessin1932,webelievewehavebeenthedesignandtechnologyleaderinthegolfindustrywithastrategytodevelop,implementandprotectproductandprocessimprovements.WecurrentlyemployanR&Dteamofover150scientists,chemists,engineersandtechnicians.Wealsointroducenewproductinnovationsatacadencethatbestalignswiththetypicaldedicatedgolfer'sreplacementcyclewithineachproductcategory.Wespent$42.2million,$44.2millionand$46.0millionin2013,2014and2015,respectively,onR&D.

Operational Excellence

Therequirementsofthegameleadthededicatedgolfertoseekoutproductsofmaximumperformanceandconsistency.Weownorcontrolthedesign,sourcing,manufacturing,packaginganddistributionofourproducts.Indoingso,weareabletoexercisecontrolovereverystepofthemanufacturingprocessandsupplychainoperations,therebysettingthestandardforqualityandconsistency.Ouroperationalexcellencealsoallowsustocontinuallydevelopinnovativenewproducts,bringthoseproductstomarketmoreefficientlyandensurehighlevelsofqualitycontrol.Wehavedevelopedandrefineddistinctandindependentlymanagedsupplychainsforeachofourproductcategories.Ourmanufacturingfacilitiesinclude:

• threegolfballmanufacturingfacilitiesthatcollectivelyproduceover1millionballsperproductionday;

• sixgolfclubassemblyfacilities;

• ajointventurefacilitytomanufactureourgolfshoes;and

• afacilitytomanufactureourgolfgloves.

Route to Market Leadership

Asoneofthepreferredpartnerstopremiumgolfshops,weensurethattheperformancebenefitsderivedfromusingourproductsareshowcasedandourproductsareproperlymerchandised.Wehaveover350salesrepresentativesdirectlyservicingover31,000accountsin46countriesandweserviceover90countriesintotal,directlyorthroughdistributors.Withanaverageofalmost20yearsofexperience,webelievetheTitleistU.S.salesteamisthelargestandmostexperiencedintheindustry.Similarly,webelieveFootJoyhasbuiltthemostexperienced,highlyqualifiedteamintheU.S.golfwearcategory.Asweseeourretailpartnersasacriticalconnectiontodedicatedgolfers,weplacegreatemphasisonbuildingstrongrelationshipsandtrustwiththem.Thisisthereasonoursalesassociatesareexpectednotsimplytobesalespeople,buttofunctionasgolfexpertsandenthusiastsintheirrespectiveterritories,whoadviseandassistourretailpartnerstobetterservetheircustomers.Wehelp

TableofContents

generategolferdemandandsell-throughviain-shopmerchandising,promotionsandadvertising,andalsoprovideproducteducationtoclubprofessionals,coachesandinstructors.Lastly,weplaceastrongfocusonconsumerengagement,startingwithfittingandtrialinitiativesacrossourballs,clubsandshoescategories.Weoffercustomproductsacrosscategoriesthatwebelievearebetteralignedwithgolfers'personalstyles,skilllevelsandpreferences.

MarketOverviewandOpportunity

Market Overview

Weestimatethatthesportofgolfgivesrisetoaglobalcommercialopportunityofmorethan$85billionannually,whichcapturesallspendingrelatedtogolf.Thereareover50milliongolfersworldwideplayingover800millionroundsannuallyonover32,000golfcourses.Ouraddressablemarketcomprisedofgolfequipment,golfwearandgolfgearrepresentsapproximately$12billioninretailsalesandapproximately$8billioninwholesalesales.TheUnitedStatesaccountedforover40%ofouraddressablemarket,followedbyJapanandKoreacollectivelyaccountingforover30%ofouraddressablemarket,eachin2014.

AlthoughthenumberofroundsofgolfplayedintheUnitedStatesdeclinedoverallfrom2006untiltheendof2014,thenumberofroundsofgolfplayedintheUnitedStateshasshownimprovementsincethebeginningof2015,accordingtoGolfDatatechLLC.Webelievethatthenumberofroundsofgolfplayedbyourtargetmarketofdedicatedgolferswasrelativelystableduringthisperiodofoveralldeclineinthegolfindustry.

Weviewemergingeconomies,suchasthemarketsinSoutheastAsia,asattractivelong-termopportunitiesbasedonourassessmentthroughthelensofthefivecollectivelynecessaryandsufficientconditionsforacountrytoembracegolf:(1)sizeablemiddle-classpopulation,(2)educationalinfrastructure,(3)placestoplayandpractice,(4)professionalsuccessthatinspiresthelocalgolfersand(5)corporatesupport.

Webelievethegolfindustryismainlydrivenbygolferdemographics,dedicatedgolfersandweatherandeconomicconditions.

Golfer Demographics. Golfisarecreationalactivitythatrequirestimeandmoney.Thegolfindustryhasbeenprincipallydrivenbytheagecohortof30andabove,currently"gen-x"(age30to49)and"babyboomers"(age50to69),whohavethetimeandmoneytoengageinthesport.IntheUnitedStates,thereareapproximately8.7milliongen-xgolfersandapproximately6.6millionbabyboomergolfers,representingapproximately63%oftotalgolfersintheUnitedStates.Householdsheadedbygen-xandbabyboomersalsoclaimanapproximately80%shareofthetotalincomedollarsintheUnitedStates.Sinceasignificantnumberofbabyboomershaveyettoretire,weanticipategrowthinspendingfromthisdemographicasithasbeendemonstratedthatroundsofplayincreasesignificantlyasthoseinthiscohortreachretirement.Onaverage,golfersintheagerangeof18to34play15roundsperyear,whereasthoseintheagerangeof50to64and65andaboveplay29roundsand51roundsperyear,respectively.Whilegolfhashistoricallyconsistedofmostlymaleplayers,womenaccountedforapproximately24%ofgolfersintheUnitedStatesin2015,upfromapproximately20%in2011.Becausenearly40%ofbeginnergolfersintheUnitedStatesin2015werewomen,webelievethatthepercentageofwomengolferswillcontinuetogrow.Beyondthegen-xandbabyboomergeneration,anotherpromisingdevelopmentingolfhasbeenthegenerationalshiftwithmillennialgolfersmakingtheirmarksatbothprofessionalandamateurlevels.Golfersundertheageof30represented44%oftheWorldRankTop50and76%ofRolexWorldRankTop50WomenasofMay31,2016.ThelargestsingleagegroupofbeginnersintheUnitedStatesin2015wasmillennials(age18to29).Further,thenumberofjuniorgolfers(age6to17)intheUnitedStateshasgrownfromapproximately2.5milliongolfersin2010toapproximately3.0milliongolfersin2015.

TableofContents

Dedicated Golfers. Dedicatedgolfersarelargelygen-xandbabyboomerswhohavedemonstratedthepropensitytopayapremiumforproductsthathelpthemperformbetter.Webelievededicatedgolfers,whocompriseourtargetmarket,willcontinuetobeakeydriverfortheglobalgolfindustry.TheNationalGolfFoundationestimatesthattherewere6.4million,6.5millionand6.2million"avid"golfersintheUnitedStatesin2013,2014and2015,respectively,with"avid"golfersdefinedasthosewhoplay25roundsormoreperyear.Weestimatethatapproximately60%oftheseavidgolfersintheUnitedStatesarededicatedgolfers.

Weather Conditions. Weatherconditionsdeterminethenumberofplayabledaysinayearandthusinfluencetheamountoftimepeoplespendongolf.Weatherconditionsinmostpartsoftheworld,includingourprimarygeographicmarkets,generallyrestrictgolffrombeingplayedyear-round,withmanyofouron-coursecustomersclosedduringthecoldweathermonths.Therefore,favorableweatherconditionsgenerallyresultinmoreplayabledaysinagivenyearandthusmoregolfroundsplayed,whichgenerallyresultsinincreaseddemandforallgolfproducts.

Economic Conditions. Thestateoftheeconomyinfluencestheamountofmoneypeoplespendongolf.Golfequipment,includingclubs,ballsandaccessories,isrecreationalinnatureandisthereforeadiscretionarypurchaseforconsumers.Consumersaregenerallymorewillingtomakediscretionarypurchasesofgolfproductswheneconomicconditionsarefavorableandwhenconsumersarefeelingconfidentandprosperous.

Our Opportunity

Wehavedemonstratedsustained,resilientandstablerevenueandAdjustedEBITDAgrowthoverthepastfiveyears,despitechallengesrelatedtodemographic,macroeconomicandweatherrelatedconditions.Ourdifferentiatedfocusonperformanceandqualityexcellence,enduringconnectionswithdedicatedgolfersandfavorableandmarket-differentiatingmixofconsumableanddurableproductshavebeenthekeydriversofourstrongperformance.Webelievethisfocuspositionsustocontinuetogenerateindustry-leadingperformance.

StrongFinancialPerformance

Since2011,wehavedrivenstrongfinancialperformanceacrossourproductportfoliointheaggregateandineachofourreportablesegmentsofTitleistgolfballs,Titleistgolfclubs,TitleistgolfgearandFootJoygolfwear.From2011to2015:

• ournetsalesincreasedfrom$1,336.1million(onanon-GAAPcombinedbasis)to$1,503.0million,representingacompoundannualgrowthrate,orCAGR,of3%,or6%onaconstantcurrencybasis;

• ournetincome(loss)attributabletoAcushnetHoldingsCorp.was$(31.2)millionin2011(onanon-GAAPcombinedbasis),$13.9millionin2012,$19.6millionin2013,$21.6millionin2014and$(1.0)millionin2015;

• ourAdjustedEBITDAincreasedfrom$138.4million(onanon-GAAPcombinedbasis)to$214.7million,representingaCAGRof12%;

• weachieved400basispointsofAdjustedEBITDAmarginexpansion;

• ourAdjustedNetIncomeincreasedfrom$46.7million(onanon-GAAPcombinedbasis)to$86.7million,representingaCAGRof17%;and

• ourcashflowsprovidedbyoperatingactivitiesincreasedfrom$51.1million(onanon-GAAPcombinedbasis)to$91.8million.

TableofContents

TheinformationpresentedabovefortheyearendedDecember31,2011ispresentedonanunauditedcombinedbasisandrepresentsthemathematicaladditionofourpredecessor'sresultsofoperationspriortotheAcquisitionfromJanuary1,2011toJuly29,2011,andourresultsofoperationsfromJuly30,2011toDecember31,2011,orthesuccessorperiod.Thefinancialresultsforthesuccessorperiodincludetheimpactofapplyingpurchaseaccounting.ThepresentationofunauditedcombinedfinancialinformationfortheyearendedDecember31,2011isnotconsistentwithGAAPorwiththeproformarequirementsofArticle11ofRegulationS-X.Wehaveincludedtheunauditedcombinedfinancialinformationasaconveniencesolelyforthepurposeoffacilitatingacomparisonofthecombinedresultswithourotheryearspresented.SuchresultsarenotnecessarilyindicativeofwhattheresultsforthecombinedperiodwouldhavebeenhadtheAcquisitionnotoccurred.See"SelectedConsolidatedFinancialData"for(i)apresentationoftheresultsofoperationsfortheperiodfromJanuary1,2011toJuly29,2011,andtheperiodfromJuly30,2011toDecember31,2011,whichhavebeenauditedandareconsistentwithGAAP,andtheresultsofoperationsfortheyearendedDecember31,2011onanunauditedcombinedbasisand(ii)areconciliationofAdjustedEBITDAandAdjustedNetIncometonetincome(loss)attributabletoAcushnetHoldingsCorp.andthemostdirectlycomparableGAAPfinancialmeasure.See"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—Overview—KeyPerformanceMeasures"foradescriptionofhowwecalculateconstantcurrencyinformation.

(1) TheinformationpresentedfortheyearendedDecember31,2011ispresentedonanunauditedcombinedbasisandrepresentsthemathematicaladditionofourpredecessor'sresultsofoperationspriortotheAcquisitionfromJanuary1,2011toJuly29,2011,andourresultsofoperationsfromJuly30,2011toDecember31,2011.ThispresentationofunauditedcombinedfinancialinformationfortheyearendedDecember31,2011isnotconsistentwithGAAP.

OurCompetitiveStrengths

Steward of Golf's Most Revered Brands. Wehavelongbeenthetrustedstewardoftwoofgolf'smostreveredandrecognizedbrands,andhaveenjoyedthelongestrunningrecordofmarketleadershipinthegolfcategory.WebelievetheTitleistandFootJoybrandsdeliversuperiorperformanceandqualityexcellenceintheirrespectiveproductcategoriesandarewidelyregardedasthestrongestandmostidentifiablebrandsamongpremiumgolfequipmentandgolfwearmanufacturers.Titleisthasbeenthe#1ballinprofessionalgolffor68yearswhileFootJoyhasbeentheleadingbrandonthePGATouringolfshoesforoversixdecadesandgolfglovesforoverthreedecades.Theperformanceand

TableofContents

qualityofourbrandsarevalidatedbythewidespreadadoptionofourproductsbytheworld'sbestprofessionalandamateurgolfers,whichgeneratesexceptionalbrandloyaltyamongourcorecustomersanddrivesrepeatpurchases.

Market-Leading Portfolio of Products Designed for Dedicated Golfers. TheTitleistProV1golfballwaslaunchedin2000andinfourmonthsbecamethe#1sellingballonthemarket,apositionitstillholds,andisthe#1golfballplayedateverylevelofcompetitivegolftoday.Weestimatethatweheldnearlyone-halfofthe2015globaltopgradewholesalegolfballmarket,whichweestimatewasapproximately$1.0billion,includingovertwo-thirdsofthepremiumperformancemarketsegment.ProV1modelsarethelongestrunning#1ofanygolfequipmentsinceGolfDatatechbegantrackingthismetricin1997.Itisrarewhenabrand'shighestpricedproductinaparticularcategoryisalsotheindustryvolumeleader.In2015,thenumberofTitleistballsplayedonprofessionaltourswasmorethanfivetimesthenumberofballsofournearestcompetitor.Titleistrecordsevenhigherballcountsatmostamateurchampionshipsthanontheworldwideprofessionaltours,afurthertestamenttotheperformanceandqualityofTitleist.Sinceamateursarenotallowedtoreceivecompensationfortheuseorendorsementofanybrand'sequipment,theyfreelychoosewhatgolfballtheybelievewillhelpthemshoottheirlowestscores.FaithfultothebrandpromiseoftheTitleistball,webelieveourgolfclubsarealsobest-in-classintermsofperformanceandquality.OurVokeyDesignwedgesandScottyCameronputtersarerecognizedworldwideasleadersintheirrespectivecategories.OurVokeyDesignwedgesarethemostwidelyusedonthePGATour.UnderourFootJoybrand,wearethe#1shoeingolf,withtheleadingusageonalloftheworld'smajorprofessionalgolftoursandtwiceasmanystockkeepingunits,orSKUs,asournearestcompetitors.FootJoyglovesalsohavetheleadingmarketshare,enjoythe#1positiononalltheworld'smajorprofessionalgolftours,andofferthelargestselectionofgolfglovesintheindustry.FootJoyisalsoagloballeaderingolfouterwearandhasarapidlygrowingpresenceingolfapparel.

Favorable Consumable / Durable Mix. Wehavedevelopedaproductportfoliowithafavorablemixofconsumablesanddurables,whichwebelievedifferentiatesusfromotherpuregolfequipmentmanufacturers.Consumablepurchasesarelargelydrivenbythenumberofroundsplayed,whiledurablepurchasesaresubjecttotechnologyreplacementcycles.Webelieveourfavorableproductmixislesseconomicallycyclicalandmoreworkingcapitalefficientthanthatofourpeers.Oursalesreflectafavorableandmarket-differentiatingmixofconsumableproducts,whichweconsidertobegolfballsandgolfgloves,whichcollectivelyrepresented43%ofournetsalesin2015,andmoredurableproducts,whichweconsidertobegolfclubs,golfshoes,golfapparelandgolfgear,whichcollectivelyrepresented57%ofournetsalesin2015.

Best-in-Class Design Innovation. Drivenbyourcommitmenttoperpetualinnovation,webelievewearetheinnovationleaderinthegolfindustry.Golf'smostregulatedandtechnically-drivencategoriesaregolfballsandgolfclubs,andthereforerequirestrongintellectualpropertytocreatedifferentiatedproductswithsuperiorperformanceandquality.Weholdthelargestpatentportfoliointhegolfindustry,withcloseto1,200activeU.S.utilitypatentsingolfballs,over300activeU.S.utilitypatentsingolfclubs,wedgesandputtersand284activepatents(includingex-U.S.anddesignpatents)ingolfshoesandgloves.AsofDecember31,2015,wehave35%and15%marketsharesofactivegolfballandclubpatents,respectively.Over90%ofourcurrentproductsincorporatetechnologiesordesignsdevelopedinthelastfiveyears.TheTitleistProV1franchiseisanexampleofourinnovationleadership.Wehavesoldover110milliondozenProV1andProV1xgolfballs,generatingover$4billionofrevenue,sincetheintroductionoftheProV1in2000.Webelieveourabilitytodevelopandimplementinnovationdrivessuperiorproductperformanceandourpatentportfolioallowsustoprotectourproductandprocessimprovementsinanindustrywheresuccessisdrivenbyproductperformanceandqualityimprovements.

TableofContents

Operational Excellence. OurdifferentiatedmanufacturingprocessesandconnectivitybetweenourmanufacturingandR&Dteamsfosterintegrationthroughoutthedesignandmanufacturingprocess.Thisallowsustocontinuallydevelopinnovativenewproductsthatwecanbringtomarketefficientlywhileensuringconsistencyandhighlevelsofqualitycontrol.Unlikemanyothergolfcompanies,weownorcontrolthedesign,sourcing,manufacturing,packaginganddistributionofourproducts.Ourverticallyintegratedapproachdeliversaconsistentproductqualityandresultsinveryhighcustomersatisfaction.Thereareover90qualitychecksforTitleistProV1and120qualitychecksthatgointoTitleistProV1xtoensureeveryballisworthyofbearingtheTitleistbrandname.Anexampleofthisisourproductqualityreturnpercentage—forevery10millionTitleistProV1golfballsproduced,onlyoneisreturnedonaverage.Bycontrollingkeyaspectsofthedesignandmanufacturingprocesses,wearebetterabletoprotectourintellectualpropertyaswellasoffercustomizationcapabilitiesandefficientturntimes.Furthermore,weareabletoprovidecustomfittedproductstoindividualsinashorttimeframeandfacilitateregionalmarketcustomization.

Unparalleled Route to Market Leadership. Thefoundationofourgo-to-marketstrategyistocontinuetobethepreferredpartnerforpremiumgolfshopsworldwideandtoprovidecustomizationandfittingthatoptimizeourcustomers'post-purchaseexperiences.Indoingso,weensurethattheperformancebenefitsderivedfromusingourproductsareshowcasedandourproductsareproperlymerchandised,whiledeepeningourcustomers'connectionswiththeTitleistandFootJoybrands.Webelievetheseinitiatives,inturn,increasesalesandprofitabilityforourretailpartners,leadingtoamutuallybeneficialeconomicrelationship.Today,wedeployover20,000displaysthataredesignedandadaptedtolocalneeds,andthereareover3,400premiumgolfshopsthatexclusivelystockordisplayTitleistballs.Byvirtueofourstrongrelationshipwithretailpartners,weareabletobuildthestrongconnectionswithandgaindeepunderstandingofdedicatedgolfers.Weareabletocloselytrackthereplacementcyclesofourcustomers'equipmentandeffectivelymarketournewproductsinatimelymanner.

Deep Stewardship Culture and Experienced Management Team. Behindourexceptionalproductsandorganizationalinfrastructureliesanauthenticandenduringorganizationalculturevalidatedbythelongevityofourmanagementteam,salesforceandassociates.Ourmanagementteammembers,manyofwhomhavededicatedtheirentirecareerstoourcompany,averageover19yearsofemploymentwithus.Theyaresupportedbyadeepandtalentedteamofassociatesacrossproductcategories,functions,marketsandgeographies,whoserveasstrongbrandandculturalambassadors.Approximately50%ofourU.S.associateshaveovertenyearsofemploymentwithus,highlightingthedepthofourtalentandfutureleaders.Wearethestewardsofourbrands,andwearecommittedtomaintainingthecultureofexcellencethatdefinesusandourproducts.

OurGrowthStrategies

Weplantocontinuetopursueorganicgrowthinitiativesacrossallproductcategories,brands,geographiesandmarketingchannels.

Introduce New Products and Extend Market Share Leadership in Equipment Categories. Weexpecttosustainourstrongperformanceinourcorecategoriesofgolfballsandgolfclubsthroughseveraltargetedstrategies:

• Titleist Golf Balls. Toensuresustainedlong-termmarketleadership,wearecontinuouslyinvestingindesigninnovationandrefiningoursell-inandsell-throughroutetomarketcapabilitiesandeffectivenessinthegolfballproductcategory.Wearecurrentlyfocusedonimprovingoursalesteamtraininginproduct,merchandising,localpromotionandsellingskills,aswellasenhancingtradepartnershipsinthosechannelswherededicatedgolfersshop.Togrowourcustomgolfballbusiness,wehaveinplaceseveralnewinitiativesdesignedtodevelopstrategicpartnershipswithcorporationsheavilyinvestedingolfandtodrivegrowthwitha

TableofContents

particularfocusontheareasofcorporate,countryclub,tournamentandpersonalizedsales.The2016launchofthe"MyProV1Shop"onlinegolfshopallowsgolferstocreateandpurchasetheirownuniqueTitleistProV1/ProV1xgolfballswithspecialplaynumbers,logosorpersonalization.Webelievethewebsitewillincreasethelikelihoodofrepeatpurchases,therebystrengtheningthelinkwithgolfersandloyaltytoTitleistgolfballs.

• Titleist Clubs, Wedges and Putters. Weintendtocontinuetolaunchinnovative,performancegolfclubsbyfurtherleveragingTitleistclubs'leadingR&Dplatform.Webelieveconceptandspecialtyproductsandpremiumqualitydigitalcontentwillfurtherdrivecustomerawarenessandmarketsharegainsacrossallpremiumclubcategories.Toenhancetrialandfitting,weplantocontinueourleadingconsumerconnectioninitiatives,growourfittingnetworkinopportunisticmarketsandfurtherpromotetheutilizationofourdistinctivefittingoperations.WearealsoexecutingseveralinitiativestofurtherelevateVokeyDesignwedgesandScottyCameronputtersasgolf'sleadersinshort-gameperformance,technology,craftsmanship,andselection.

Increase Penetration in Golf Gear and Wear Categories. WeintendtobuildonthebrandloyaltythatthededicatedgolferhasdevelopedforourTitleistballandclubcategoriesandFootJoyshoeandglovecategoriesinordertoincreaseourpenetrationintheadjacentcategoriesofgolfgearandgolfwear.Weexpecttocontinuetodrivegrowthacrossthesecategoriesbyemployingthefollowinginitiatives:

• Titleist Golf Gear. Wearecommittedtoprovidingdedicatedgolferswithgolfgear—includinggolfbags,headwear,gloves,travelgear,headcoversandotheraccessories—ofperformanceandqualityexcellencethatisfaithfultotheTitleistbrandpromise.Wearemakingsignificantinvestmentsindesignandengineeringresourcesandareleveragingdedicatedplayerresearchmethodologiesandinsightstodriveinnovationinthisproductcategory.WealsoplantoexpandcustomandlimitededitionproductofferingsandlaunchaU.S.eCommercewebsiteforTitleistgolfgearinthesecondhalfof2017.

• FootJoy Women's Apparel Initiative. Wearecurrentlybuildingoutafocused,performance-basedFootJoywomen'sapparellineconsistentwiththebrand'ssuccessfulpositioninginmen'sapparel.Thewomen'sapparelline,whichlaunchedinearly2016,pairssophisticatedperformancefabricsanddesignwithlayeringtechnologypioneeredbyFootJoytocreatemaximumcomfortandprotection.ByleveragingourexistingFootJoysalesforceinanadjacentcategory,webelievewecanofferacompellingandauthenticsolutiontofemalegolfersandcapitalizeonthetrendofcasual,athleticstylingthatisdrivingsuccessinthebroaderwomen'sapparelspace.

• FootJoy eCommerce Launch. WerecentlylaunchedaU.S.eCommercewebsiteforFootJoy.Over6,000SKUsareofferedacrossallFootJoycategories,includingshoes,glovesandapparel.TheeCommerceinitiativeisexpectedtoyieldincrementalsalesandprofitability,enricheddataonpreferencesandtrendsaswellasfosteradeeperandmorerealtimeconnectionwiththededicatedgolfer.

Strategically Pursue Global Growth. TheTitleistandFootJoybrandsarebothglobalbrandsthatarewellpositionedwheregolf'sgrowthisanticipated.Whilewebelievethatamajorityofthenear-termgrowthwillbedrivenbythedevelopedeconomies,emergingeconomies,suchasthemarketsinSoutheastAsia,representlonger-termgrowthopportunities.Tomeetfuturedemand,weareensuringthatlocalcapabilitiesandexpertiseinsales,customerservice,merchandising,onlinepresence,golfeducationandfittinginitiativesareinplacetosupportouroperations.WecontinuetohirelocaltalentacrossallfunctionsinordertobetterpositiontheproductsofTitleistandFootJoyinthosemarketswhereparticipationandpopularityofthesportareexpectedtoincrease.

TableofContents

OurProducts

Wedesign,manufactureandmarketabroadrangeofproductsundertheTitleistandFootJoybrands.Bothbrandsarerecognizedasindustryleadersinperformance,quality,innovationanddesign.Ourproductsincludegolfballs,golfclubs,wedgesandputters,golfshoes,golfgloves,golfgearandgolfouterwearandapparel.

Titleist

Wedesign,manufactureandsellgolfballs,golfclubs,wedgesandputtersandgolfgearundertheTitleistbrand.NetsalesofTitleistproductsfortheyearsendedDecember31,2013,2014and2015were$1,081.4million,$1,116.0million,and$1,084.1million,respectively,ineachcaseapproximately73%ofourtotalnetsales.

Titleist Golf Balls Titleist Golf Clubs, Wedges and Putters

Titleist Golf Gear

• ProV1 • Drivers • Golfbags• ProV1x • Fairways • Headwear• NXTTour • Hybrids • Golfgloves• Velocity • Irons • Travelgear• DTTruSoft • VokeyDesignwedges • Headcovers• Pinnacle • ScottyCameronputters • Othergolfgear

FootJoy Shoes FootJoy Gloves FootJoy Outerwear and Apparel

• Traditional • Leatherconstruction • Performanceouterwear• Spikeless • Synthetic • Performancegolfapparel• Athletic • Leather/synthetic

combination • Golfleisurewomen's

apparel• Casual • Specialty

TableofContents

Titleist Golf Balls

Titleististhe#1ballingolf.The2016Titleistgolfballproductlineconsistsofsixmajormodels,eachdesignedtodeliverdifferentperformancecharacteristics,suchasdistance,flight,shortgamecontrol,feelanddurability.

ProV1andProV1xaredesignedtobethehighestperformingandqualitygolfballsforgolfersateverylevelofthegameandbestdemonstrateTitleist'sdesign,innovationandtechnologyleadership.ThefirstProV1golfballwasintroducedonthePGATourinOctober2000andlaunchedtothemarketinDecember2000.ItrepresentedthecoalescenceofthreeofTitleist'sindustryleadingtechnologies:largesolidcore;multi-componentconstruction;andhighperformance,thermosetcasturethaneelastomercovers.Initsfirstfourmonths,theProV1golfballbecamethebest-sellinggolfballandholdsthatpositiontothisday.Duringthistime,wealsosetouttocreateaballthatproducedlowerdriverspinandhigherlaunchcharacteristicsthantheProV1whileretainingitshighperformancescoringspin.Withitsfour-piece,dualcoredesign,theProV1xgolfballwasintroducedin2003.Wealsoprovidebest-in-classperformancewiththeNXTTour,NXTTourS,VelocityandDTTruSoftmodels.

Bycompetingatalowerpricepoint,Pinnaclecompletesafullproductofferingforus.Withtwomajormodels,RushandSoft,Pinnaclegolfballsarealsoavailableindifferentopticcolorsandplaynumbers.OurPinnacleBrandcompetesinthepricemarketsegment,whichallowstheTitleistbrandtofocusonthepremiumperformanceandperformancemarketsegmentsandreducestheneedtoextendtheTitleistbrandtothepricemarketsegment.ThisalsohelpstosupportthethousandsofgolfshopsthatchoosetoexclusivelystockTitleistandPinnaclegolfballs,allowingthemtooffergolfballsineachmarketsegmentwhichmarketsegmentswediscussedanddefinedbelow.

TitleistandPinnaclegolfballsaccountedfor$551.7million,or37.3%,$543.8million,or35.4%,and$535.5million,or35.6%,ofourtotalnetsalesfortheyearsendedDecember31,2013,2014and2015,respectively.

TableofContents

Weestimatethatweheldnearlyone-halfofthe2015globaltopgradewholesalegolfballmarket,whichweestimatewasapproximately$1.0billion,andheldleadershippositionsacrossthemostprofitablemarketsegments.Thetopgradewholesalegolfballmarketconsistsofallgolfballssoldinthewholesalemarketexcludingrangegolfballs,practicegolfballsordowngradedorrepurposedgolfballs.

• Thepremiumperformancemarketsegment(whichweestimatewasapproximately$490millionofthe2015globaltopgradewholesalegolfballmarket),whichweconsidertobegolfballsthataredesignedtomaximizetotalperformanceacrossallproductattributes,includingdistance,shortgamespinandcontrol,feelanddurability.TitleistProV1andProV1xgolfballsledthepremiumperformancesegmentwithovertwo-thirdsofthismarketsegment.

• Theperformancemarketsegment(whichweestimatewasapproximately$380millionofthe2015globaltopgradewholesalegolfballmarket),whichweconsidertobegolfballsthataredesignedtoprioritizedistance,goodshortgamespinandcontrol,feelanddurability,whilemaintainingalowerpricepointthanballsthatcompeteinthepremiumperformancemarketsegment.TitleistNXTTour,VelocityandDTgolfballsledtheperformancesegmentwithapproximatelyone-thirdofthismarketsegment.

• Thepricemarketsegment(whichweestimatewasapproximately$180millionofthe2015globaltopgradewholesalegolfballmarket),whichweconsidertobegolfballsthataredesignedtoprioritizedistance,feelanddurability,whiletargetingamoreaffordablepricepointthanballsthatcompeteinthepremiumperformanceandperformancemarketsegments.Wearealeaderinthepricemarketsegment.

ThetablebelowshowsthepercentageofgolfersthatusedTitleistgolfballsascomparedtoitsnearestcompetitorforspecificprofessionaltoursandrepresentativeamateurchampionshipsin2015.

TableofContents

Asshowninthetableabove,atmostamateurchampionships,Titleistrecordsevenhigherballcountsthanontheworldwideprofessionaltours.UnderTheRulesofGolfestablishedbythegame'sgoverningbodies,theUSGAandR&A,amateursarenotallowedtoreceivecompensationfortheuseorendorsementofanybrand'sequipment.Amateursfreelychoosewhatgolfballtheybelievewillhelpthemshoottheirlowestscores.WebelievetheirchoiceoftheTitleistgolfballfurthervalidatesthesuperiorperformanceandsuperiorqualityofTitleist.

Wearealsoaleaderincustomimprintedgolfballs.Thisincludesprintinghighqualityreproductionsofcorporatelogos,tournamentlogos,countrycluborresortlogos,andpersonalizationonTitleistandPinnaclegolfballs.Ourserviceincludesdesigncapabilities,specialpackagingoptionsandfastturnaroundtimes.Customimprintedgolfballsrepresentedover25%ofourglobalnetgolfballsalesfortheyearendedDecember31,2015.Themajorityofcustomimprintingisdoneforcorporatelogosastherehaslongbeenastrongconnectionbetweenthebusinesscommunityandgolf.

Titleist Golf Clubs, Wedges and Putters

WeviewandoperatetheTitleistgolfclubbusinessinthreedistinctcategories:clubs(whichincludesdrivers,fairways,hybridsandirons),wedgesandputters.Ourproductsaregenerallypricedatorabovethepremiumpricepointsinthemarketplace,drivenbyhigher-endtechnologies(includingdesign,materialsandprocesses)weemploytogeneratesuperiorqualityandperformance.Wehavedifferentmodelswithineachcategorytoaddressthedistinctperformanceneedsofourdedicatedgolfertargetaudience.Titleistgolfclubs,wedgesandputtersaccountedfor$395.7million,or26.8%,$422.4million,or27.5%,and$388.3million,or25.8%,ofourtotalnetsalesfortheyearsendedDecember31,2013,2014and2015,respectively.

ThetablebelowshowstheusagepercentagesandranksofTitleistgolfclubs,wedgesandputtersonthe2015PGATourandrepresentative2015championshipsintheUnitedStates.

TitleistClubs

Ourcurrentglobalclublineconsistsofthe915productlinesofdriversandfairways,the816productlineofhybridsandthe716productlineofirons.Everyproductinourglobalclublinefeaturespremium,tour-provenstockshaftsandgrips,complementedbyafullrangeofcustomoptions.

TableofContents

Titleist915driversandfairwaysaredesignedtodeliverperformancethroughtour-proventechnologiesthatincreaseballspeedanddecreasespinwithoutsacrificinglaunchandforgiveness.Wedesignourdriversandfairwaystodelivertotalperformancewithtour-preferredlooks,soundandfeel,andweoffertheabilitytopreciselyfitindividualgolfers'needs.

Titleist816hybridsgeneratelonggameperformancethroughadvancedtechnology.Theadvancedfeaturesofourhybridsaimtofacilitateprecisionfittingandgeneratehighballspeed,lowspinandhighlaunchforincreaseddistanceandforgiveness.

Titleist716ironsareinnovative,technologicallyadvancedproductsdesignedtodeliverdistance,forgiveness,propershotcontrolandfeel.Whileweofferstocksetconfigurationsforourironsets,approximately40%ofourworldwideironsalesarecustomfittohelpdeliverabetterfitandperformance.

WealsosellourVG3lineofclubs,whichconsistofmen'sandwomen'sdrivers,fairways,hybridsandironsofferedinJapanonly.TheseproductsfeaturedesignandconstructionspecificallytargetedtodedicatedgolfersinJapan.

VokeyDesignWedges

BobVokeychampionstheTitleistwedgeeffortbycreatinghighperformancewedgestomeetthedemandsofdedicatedgolfersandthebestplayersintheworld.TheVokeyDesignwedgeproductofferingisacompilationofthemostpopularwedgesresultingfromBobVokey'shands-onworkwithgolf'sbestplayerstodevelopshapesandsolesthataddressvaryingtechniquesandcourseconditions.Intotal,weoffer21uniqueloft,solegrindandbouncecombinationsandthreeuniquefinishestocreategolf'smostcompletewedgeproductperformancerange.Inaddition,Vokey'sonlineWedgeworksprogrampromoteslimitededitionmodelsandallowsgolferstocustomizeandpersonalizetheirwedges.VokeyDesignwedgesarethemostplayedwedgesbytourprofessionals.In2015,theyaccountedforover38%ofallwedgesinplayonthePGATour,wheretheyhavebeen#1everyyearsince2004.

TableofContents

ScottyCameronPutters

ScottyCameronFineMilledPuttersaredevelopedthroughaspecializedanditerativeprocessthatblendsartandsciencetocreatehighperformanceputters.Scotty'sdesigninspirationbeginswithstudyingthebestplayersintheworldandworkingwiththemtoidentifytheconsistentstrengthsandattributesoftheirputting.ScottyCameronencouragesaselectionprocessthatidentifiestheputterlength,toeflowandappearancetodeliverproperbalance,shaftflexandfeeltogolfersandtoencouragepropertechnique.ScottyCameronputtersconsistofarangeofproductsforeachofthesekeyselectioncriteria.In2015,overone-thirdoftheputtersplayedonthePGATourwereScottyCameronputters,andoverthepast21years,ScottyCameronputtershavehelpedplayerswinover1,100tournamentsontheworldwideprofessionaltours.

Usingthescottycameron.comwebsiteasaninformationandserviceshub,weofferloyalbrandfanstheopportunitytoconnectmorecloselywiththeScottyCameronbrand.Golferscancustomizeandpersonalizetheirputter(s)intheon-lineScottyCameronCustomShop.Throughthepopular"ClubCameron"loyaltyprogramandScotty'son-line"StudioStore,"brandfanscanpurchaseuniqueScottyCameronaccessories.In2014,wealsoopenedtheScottyCameronGalleryinEncinitas,California,apremiumretailboutiquewhichoffersconsumerstheabilitytoexperiencethetourfittingprocessaswellaspurchaseuniqueaccessoryitems.

Titleist Golf Gear

Titleistgolfgearproductsaredesignedandengineeredusingpremiummaterials,payingparticularattentiontosuperiorperformance,functionandstyle.Wefocusonthedesignanddevelopmentofgolfbags,headwear,gloves,travelgear,headcoversandothergolfgear.WeprovidepersonalizationandcustomizationwithineachcategoryofTitleistgolfgear,aswellascertainlicensedproducts,inordertomeettheneedsofthededicatedgolferandaspartofourservicetoouraccounts.Webelievethegolfgearbusinessrepresentsasizablebuthighlyfragmentedopportunitywithnumerouscompetitorsineachproductcategoryandgeographicalmarket.Titleistgolfgearaccountedfor$117.0million,or7.9%,$127.9million,or8.3%,and$129.4million,or8.6%,ofournetsalesfortheyearsendedDecember31,2013,2014and2015,respectively.

TableofContents

Titleistgolfgearincludes:

• Golf Bags. Ourgolfbagsaredesignedandengineeredwithavarietyofmodelspossessingdistinctfeaturesandbenefits,includingourTourStaff,CartandCarrymodels.TheTitleistTourStaff,CartandCarrygolfbagsareleadingproductssoldatpremiumpricesthroughoutourworldwidedistributionnetwork.AccordingtoGolfDatatech,ourshareofU.S.netsalesofgolfbagsfromon-coursegolfshopsandgolfspecialtyretailerswasapproximately18%fortheyearendedDecember31,2015,andourprincipalcompetitorsinthiscategoryincludeSunMountain,PingandCallaway.

• Headwear. Titleistheadwearisdesignedanddevelopedwithadvancedfabricationsandconstructiontoprovideperformancebenefitsaswellasdesirablestylingforthededicatedgolfer.Ourheadwearseekstodeliverbenefitssuchasmoisturemanagement,UVprotections,asecurefitanddurability.Weoffermanyuniqueproductmodelswithinourheadwearlinesthatincludefittedheadwear,adjustableheadwear,visorsandweatherprotection,includingwaterproofandcoldweatherstyles.

• Golf Gloves. OurTitleistgolfgloveproductportfolioisledbythePlayersGlove,whichisthechoiceofmanyleadingprofessionalsaroundtheglobeandatopmodelwithaccounts.WeofferaselectgroupofmodelsinmostmarketsthatincludesthePlayersGlove,thePlayers-FlexGloveandthePerma-SoftGloveaswellasthePlayersCustomGloveandtheQ-MarkCustomGlove,whicharecustomizablemodels.TheTitleistglovebusinessisstrategicallyalignedwiththeFootJoyglovebusinesstoensureacomprehensiveproductportfolioforouraccountsandcomplementarybenefittous.

TableofContents

• Travel Gear. Titleisttravelgearisofferedtoservethebusinessandlifestyleneedsofourdedicatedgolferaudience.Meticulouslyconstructedwithpremiummaterials,ourdifferentmodelsoftravelgeararethoughtfullydesignedwithadvancedfabricationsandconstructiontoprovidefunctionality,qualityanddurability.Weofferarangeofmodelsincludinggolfclubtravelbags,cabinbags,backpacks,duffelbagsandwheeledrollerbags,aswellasmessengerbagsandbriefcases.

• Head Covers and Other Golf Gear. Titleistservesthelifestyleandperformanceneedsofourdedicatedgolferaudiencewithavarietyofotherproductsincludingheadcovers,umbrellas,towels,bagcovers,shagbags,valuablepouchesandcoldweathergear.

FootJoyGolfWear

FootJoyisoneofgolf'sleadingperformancewearbrands,whichconsistscollectivelyofgolfshoes,glovesandapparel.NetsalesforFootJoyproductsfortheyearsendedDecember31,2013,2014and2015were$395.8million,or26.8%,$421.6million,or27.4%,and$418.9million,or27.9%,respectively,ofournetsales.

FootJoy Golf Shoes

FootJoyisthe#1shoeingolfandhasbeenthe#1shoeonthePGATourforoversixdecades.Withanexclusivefocusongolf,FootJoyshoesaredesigned,developedandmanufacturedforallgolfersinallgolfshoecategories,includingtraditional,casual,athleticandspikeless.Wearethegloballeaderingolfshoeswithapproximatelyone-thirdofthe2015globalwholesalegolfshoemarket,whichweestimatewasapproximately$600million.

Thegolfshoecategoryisoneofthemostdemandingofallwearablesasgolfshoesmustperforminallweatherconditions,includingextremetemperatureandmoistureexposure;beresistanttopesticidesandfungicides;withstandfrequentusageandextensiveroundsofplay;andprovideconsistentcomfort,supportandprotectiontothegolferinanaverageofoverfivemilesinawalkedround.Hence,golfshoesrequireextensiveknowledgeandexpertiseinfootmorphology,walkingandswing

TableofContents

biomechanics,materialscienceandapplicationandsophisticatedmanufacturingandconstructiontechniques.

Golfshoesarealsoastyleandfashiondrivencategory.FootJoyoffersalargeassortmentofstylestosuittheneedsandtastesofallgolfers.Althoughithasproductsthatcatertoallsegmentsofthevaluechain,88%ofits171stylesintheUnitedStatesgolfshoeofferingasofDecember31,2015wereinthesuperpremium(greaterthan$150MSRP)orpremium(greaterthan$100MSRP)revenuecategories.ThebreadthandscopeoftheFootJoyproductlineiscommensuratewithitsleadingsalesposition.Tomaintainandgrowthisleadershippositioninthecategory,newproductlaunchesandnewstylescompriseover60%ofitsofferingseachyearinallsignificantmarketsaroundtheworld.

AlthoughFootJoyseeksthegreatestuseatalllevelsofthegame,itenjoystheleadingusagebythemostofthebestplayers.ThetablebelowshowsthepercentageofprofessionalgolfersthatusedFootJoyshoesascomparedtoitsnearestcompetitorforrepresentativeprofessionaltoursin2015.

Inadditiontoitsstockofferings,FootJoyisaleaderinthecustomizationofgolfshoestylesanddesigns.FootJoy'sMyJoyscustomgolfshoeportalprovidesindividualchoicesforstyle,color,personalIDsandteamlogosthatareproducedtoorderforgolfersaroundtheworld.Webelieveitisthelargestchoiceofferinginthegolfshoecategoryandprovidesaserviceandpersonalexpressioncapabilitythatcreatesbrandloyaltyandrepeatpurchases.

FootJoy Gloves

FootJoyisthe#1gloveingolf.Wearethegloballeaderingolfgloveswithapproximatelyone-thirdofthe2015globalwholesalegolfglovemarket,whichweestimatewasapproximately$230million.FootJoyisoverthreetimeslargerthanTitleistinthecategory,whichisthe#2brandworldwideinsales.FootJoyistheleaderinsalesforallsub-categoriesoftheglovebusiness,including

TableofContents

leatherconstruction,synthetic,leather/syntheticcombinationsandallspecialtyglovesincludingrainandwinterspecificofferings.

Asinthegolfshoecategory,FootJoyhasalongstandingleadershippositionintheglovebusinessthatistheresultofadeepunderstandingofgolferneedsandexpectationsforperformance,fit,comfortandquality.FootJoyoffersthelargestvarietyofglovedesignsandspecificationstomeettheneedsofallgolfers,includinghighquality,thinleatherconstruction,advancedsyntheticsandleather/syntheticcombinations,andspecialtyapplicationssuchastheworld'sleadingrainandwintergolfgloves.FootJoyhasenjoyedleadershipofthecategorysincethemid-1980sandisthemarketleaderineverysignificantgolfmarketaroundtheworld.ThetablebelowshowsthepercentageofprofessionalgolfersthatusedFootJoyandTitleistglovesascomparedtotheirnearestcompetitorforrepresentativeprofessionaltoursin2015.

FootJoy Outerwear and Apparel

FootJoy'smostrecentbrandextensionshavebeentheentryintothegolfouterwearandgolfapparelmarkets.FootJoy'sgoalforouterwearisto"makeeverydayplayable"andextendthegolfseasonbyprovidingproductsforrain,windandcoldconditions.FootJoyenteredtheouterwearcategoryin1996withinnovativedesignsandmaterialsandbecametheleaderinnetsalesintheUnitedStatesby2005andstillholdsthispositiontoday.AccordingtoGolfDatatech,ourshareofU.S.netsalesofgolfouterwearfromon-coursegolfshopsandgolfspecialtyretailerswasapproximately24%fortheyearendedDecember31,2015,andourprincipalcompetitorsinthiscategoryincludeNike,

TableofContents

ZeroRestrictionandAdidas.Thebrand'slongertermgoalistoestablishitselfasthe#1golfouterwearproductworldwide.

TheFootJoyouterwearlineispredicatedontheFootJoyLayeringSystemwiththreelayers:baselayerformoisturemanagement,midlayerfortemperaturecontrolandanouterlayerforweatherprotection.Thelayersystemallowsforeasyadjustmentonthecoursewithmaximumcomfortandprotection.Asinitssuccessfulgolfshoeandglovecategories,FootJoyouterwearbuiltitsleadershippositionintheUnitedStatesbyutilizingpremiummaterialsanddesignknow-howtobuildacompleteofferingofspecializedproductstomeettheuniqueneedsofthegolferinallweatherextremes.

FootJoyfullyenteredtheadjacentcategoryofgeneralgolfapparelin2012withatightlyfocusedofferingformenintheU.S.market.ThelinewasextendedtomarketsinEuropeandAsiainthefollowingyearsandnowenjoyswideappealandagrowingshareinmostmarketsaroundtheworld.Webelieveitisoneofthefastestgrowingbrandsinthemen'sgeneralgolfapparelmarket.AccordingtoGolfDatatech,ourshareofU.S.netsalesofmen'sgeneralgolfapparelandouterwearfromon-coursegolfshopsandgolfspecialtyretailerswasapproximately10%,fortheyearendedDecember31,2015.Thegeneralgolfapparelmarketrepresentsasizablebuthighlyfragmentedopportunitywithnumerouscompetitorsineachgeographicalmarket,includingNike,AdidasandUnderArmour.

FootJoymorebroadlyenteredtheU.S.women'sgolfapparelmarketinearly2016underthetrademarkGolfleisure.Thestylingisappropriateforgolfandinspiredbythecurrentathleisuresegmentofwomen'sapparelinothercategoriesanduses.AccordingtoGolfDatatechourshareofU.S.netsalesofwomen'sgolfapparelandouterwearfromon-coursegolfshopsandgolfspecialtyretailerswasapproximately3%fortheyearendedDecember31,2015,andourprincipalcompetitors

TableofContents

inthiscategoryincludeNike,EPProandAdidas.PlansincludeexpansionofdistributiontoothermarketsinEuropeandAsiaduring2017.

ProductLaunchCycles

Wemaintaindifferentiatedanddisciplinedproductlaunchcyclesacrossourportfolio,whichhascontributedtostableandresilientgrowthoverthelong-run.ThisapproachgivesourR&Dteamsaperiodoftimewebelieveisnecessarytodevelopsuperiorperformingproductsversusthepriorgenerationmodels.Asaresult,weareabletomanageourproducttransitionsandinventoryfromonegenerationtothenextmoreefficientlyandeffectively,bothinternallyandwithourtradepartners.

Productintroductionsgenerallystimulatenetsalesasthegolfretailchanneltakesoninventoryofnewproducts.Reordersofthesenewproductsthendependontherateofsell-through.Announcementsofnewproductscanoftencauseourcustomerstodeferpurchasingadditionalgolfequipmentuntilournewproductsareavailable.Thevaryingproductintroductioncyclesdescribedbelowmaycauseourresultsofoperationstofluctuateaseachproductlinehasdifferentvolumes,pricesandmargins.

Titleist Golf Balls Segment

WelaunchnewTitleistgolfballmodelsonatwo-yearcycle,withnewproductlaunchesofProV1andProV1x,ourpremiumperformancemodels,generallyoccurringinthefirstquarterofodd-numberedyearsandnewproductlaunchesofNXTTour,VelocityandDT,ourperformancemodels,generallyoccurringinthefirstquarterofeven-numberedyears.Fornewgolfballmodels,salesoccuratahigherrateintheyearoftheinitiallaunchthaninthesecondyear.GiventheProV1franchiseisourhighestvolumeandourhighestpricedproduct,wetypicallyhavehighernetsalesinourTitleistgolfballsegmentinodd-numberedyears.

Titleist Golf Clubs Segment

WegenerallylaunchnewTitleistgolfclubmodelsonatwo-yearcycle.Sincethefallof2014,wehavegenerallyusedthefollowingproductlaunchcycle,andatpresentweanticipatecontinuingtouse

TableofContents

thisproductlaunchcyclegoingforwardbecausewebelieveitalignsourlauncheswiththepurchasehabitsofdedicatedgolfers.Ingeneral,welaunch:

• driversandfairwaysinthefourthquarterofeven-numberedyears,whichtypicallyresultsinanincreaseinsalesofdriversandfairwaysduringsuchquarterbecauseretailerstakeoninitialsuppliesoftheseproductsasstockinventory,withincreasedsalesgeneratedbysuchnewproductscontinuingthefollowingspringorsummerofodd-numberedyears;

• ironsandhybridsinthefourthquarterofodd-numberedyears,withthemajorityofsalesgeneratedbysuchnewproductsoccurringinthefollowingspringorsummerofeven-numberedyearsbecauseahigherpercentageofournewironsandhybridsascomparedtoourdriversandfairwaysaresoldthroughonacustomfitbasisandthespringorsummeriswhengolferstendtomakesuchcustomfitpurchases;

• VokeyDesignwedgesinthefirstquarterofeven-numberedyears,withthemajorityofsalesgeneratedbysuchnewproductsoccurringinthespringorsummerofsucheven-numberedyears;

• ScottyCameronputtersinthefirstquarter,withtheSelectmodelslaunchedineven-numberedyearsandtheFuturamodelslaunchedinodd-numberedyears,withthemajorityofsalesgeneratedbysuchnewproductsoccurringinthespringorsummeroftheyearinwhichtheyarelaunched;and

• Japan-specificVG3drivers,fairways,hybridsandironsinthefirstquarterofeven-numberedyears,withthemajorityofsalesgeneratedbysuchnewproductsoccurringinthespringandsummerofsucheven-numberedyears.

Asaresultofthisproductlaunchcycle,wegenerallyexpecttohavehighernetsalesinourTitleistgolfclubsegmentineven-numberedyearsduetothefollowingfactors:

• themajorityofsalesgeneratedbynewironsandhybridslaunchedinthefourthquarterofodd-numberedyearsisexpectedtooccurinthespringandsummerofthefollowingeven-numberedyears;

• themajorityofsalesgeneratedbynewVokeyDesignwedgeslaunchedinthefirstquarterofeven-numberedyearsisexpectedtooccurinsucheven-numberedyears;

• themajorityofsalesgeneratedbynewScottyCameronSelectlineofputterslaunchedinthefirstquarterofeven-numberedyearsisexpectedtooccurinsucheven-numberedyears;

• themajorityofsalesgeneratedbynewJapan-specificVG3drivers,fairways,hybridsandironslaunchedinthefirstquarterofeven-numberedyearsisexpectedtooccurinsucheven-numberedyears;and

TableofContents

• theincreaseinsalesofnewdriversandfairwayslaunchedinthefourthquarterofeven-numberedyearsduetotheinitialsell-inoftheseproductsduringsuchquarter.

Titleist Golf Gear and FootJoy Golf Wear Segments

OurFootJoygolfwearandTitleistgolfgearbusinessesarenotsubjecttothesamedegreeofcyclicalfluctuationasourgolfballandgolfclubbusinessesasnewproductofferingsandstylesaregenerallyintroducedeachyearandatdifferenttimesduringtheyear.

TableofContents

ManufacturingExcellence

Ourmanufacturingprocessesandmanagementofsupplychainoperationsensureconsistencyofproductperformanceandquality.Weownorcontrolthedesign,sourcing,manufacturing,packaginganddistributionofourproducts.

Manufacturing Network

Ourmanufacturingnetworkiscomprisedofourownedfacilitiesandselectpartnersaroundtheglobe.Ourscaleandglobalreachenableustomaximizecostefficiency,reduceleadtime,provideregionalcustomizationandgaininsightsintolocalmarkets.

Wearethelargestscopeandscalegolfballmanufacturerintheworldwiththreecompany-ownedandoperatedmanufacturingfacilities,twolocatedintheUnitedStatesandoneinThailand,encompassing600,000totalsquarefeetwithsufficientproductioncapacitytomeetanticipatedgrowth.WealsohavelocalcustomgolfballimprintingoperationsintheUnitedStates,Japan,Canada,theU.K.(servicingtheU.K.,IrelandandcontinentalEurope),KoreaandChinatodeliversuperiorreproductionqualityandservice.Weutilizequalifiedlocalvendorsforimprintingcapabilitiesinothergeographicmarkets.

Weassembleclubsatsixstrategicgloballocations,allowingustoprovidecustomfittedgolfclubswithregionalcustomizationwithefficientturnaroundtimes.Eachofoursixcustommanufacturinglocationsisresponsibleforsupplychainexecutionforgolfclubsandwedges,fromforecastgenerationtocomponentprocurementtoclubassemblyanddistribution,allowingeachregiontorespondtomarketspecificneedsortrends.ScottyCameronputtersareassembledsolelyatourCarlsbad,Californiamanufacturingfacility.

WeownandoperatethelargestgolfglovemanufacturingoperationintheworldinChonburi,Thailandwhichemploysnearly1,500workers,wherewemanufacturebothFootJoyandTitleistgolfgloves.Thefactoryproducesover10millionFootJoyandTitleistglovesperannum.

AllofourFootJoygolfshoesaremanufacturedina525,000squarefootfacilityinFuzhou,China,ownedbyajointventureinwhichwehavea40%interestwiththeremaining60%ownedbyourlong-standingTaiwansupplypartners.Inourconsolidatedfinancialstatements,weconsolidatetheaccountsofourFootJoygolfshoejointventure,whichisavariableinterestentity,orVIE.Thejoint

TableofContents

venturewasestablishedin1995andhasbeeninitscurrentfacilitysince2000.ThesolepurposeofthejointventureistomanufactureourgolfshoesandassuchwearedeemedtobetheprimarybeneficiaryoftheVIEasdefinedbyASC810.Themulti-floor/multi-buildingcomplexownedbythejointventureisdevotedexclusivelytoFootJoygolfshoes,hasproductioncapacityofnearly5millionpairsperannumandisstaffedbyover2,700workers.See"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—ComponentsofourResultsofOperations—NoncontrollingInterests"foradiscussionofourFootJoygolfshoejointventureandthematerialtermsoftheagreementwhichgovernssuchjointventurearrangement.

Vertical Integration

Ourverticallyintegratedapproachtomanufacturingisatthecoreofourconsistentproductqualityandresultinghighcustomersatisfaction.Ourgolfballs,golfglovesandgolfshoesoperationsenjoysignificantverticalintegration,wherebywedesigneachproduct,sourcetherawmaterials,andthenmanufacture,finishandpackageatourownedfacilities.Wedesignourgolfclubs,golfwearandgolfgearproductsinternallyandsourcethecomponentsorfinishedgoodsfromselectvendorsthatdevelopandmanufactureourdesigns.Westructureourmanufacturingandsourcingoperationsbasedontheavailabilityofbest-in-classmanufacturersandvendors.Wechoosetomaintainaverticallyintegratedapproachinthoseproductcategorieswherewebelievetherearenothird-partyvendorswhomeetourhighstandardsandwhereweareabletoachieveeconomiesofscale.

ThegolfballsupplychainisourmostverticallyintegratedandourgolfballoperationsteamworkscloselywithourR&Dteamsandkeyrawmaterialsuppliers.WedesigneveryTitleistandPinnaclegolfball,sourcetherawmaterials,andthenmanufacture,finishandpackageoveronemilliongolfballsperproductionday.

FootJoyhasalongstandinghistoryofsuccessfulverticallyintegratedmanufacturinginitsshoeandglovebusinesses.Wedesignallfacetsoftheshoe,includingupperpatterns,insoles,outsolesandtractionelements.Rawmaterialsfortheuppersandinsolesandcomponentpartsfortheoutsolesandtractionelementsaresourcedaroundtheworldthroughindependentthirdpartysuppliers.AllofourgolfshoesarethenmanufacturedinourjointventurefacilityinFuzhou,China.Inourgolfglovebusiness,wedesigneachproduct,sourceallrawmaterialsandthenmanufacturesubstantiallyallofthefinishedproducts.

OurTitleistgolfcluboperationsteamworkscloselywithourR&Dteamsandkeycomponentsupplierstodesignandproducetechnologicallyadvancedandhighqualityclubs,wedgesandputters.Theircollectiveeffortscontinuetoidentifyandemploynewmaterials,newprocessesandnewmachinerythatareusedtoimproveperformanceandquality,aswellastoreduceleadtimesandproductcosts.Lastly,eachproductisinspectedpriortoshipmentatpointoforiginbythesupplier,andinthecaseofheads,alsobyourownqualitypersonnel,andallproductsareauditedatthereceivingfacility.

AcoordinatedinternalteamdesignsandsourcesthefinishedgoodsforallFootJoyouterwearandapparelproducts.Overthelasttwentyyears,wehavecreatedlong-standingrelationshipswithseveralindependentsupplygroupsthathaveexpertiseandqualitycapabilitiesconsistentwithFootJoy'shighstandardsandspecifications.Noonesourceofsupplyprovidesmorethan50%ofourannualneedsinthesecategories.

Raw Materials, Product Components and Finished Goods Supply and Sourcing

Wehavealignedwithaselectfewindustryleaderscapableofmeetingourqualitystandardsandperformancerequirementswithrespecttothesupplyofourrawmaterials,productcomponentsandfinishedgoods.

TableofContents

Forourgolfballsbusiness,wecarefullyselectourrawmaterialsaswellasoursourcesbasedonquality,costefficiencyandriskmanagement.Ourhighestrawmaterialconsumptionforgolfballs,inorder,ispolybutadiene,ionomers,zincdiacrylate(ZDA),urethane,andcoatings.Tomitigateriskofsupplydisruptionofpolybutadieneorionomers,wemanageinventorylevelsandstoreadditionalinventoryduringthetraditionalhurricaneseasonintheUnitedStatesbecausecertainsignificantsuppliershaveinthepastandmayinthefuturebeimpactedbyhurricanes.Forpolybutadiene,ZDA,urethaneandcoatings,weuseeithermultiplesuppliersormultipleproductionfacilities,somewithgeographicseparation,toreducetheriskofrawmaterialshortages.Additionally,weutilizeacloud-basedglobalsupplierriskmonitoringtoolwhichprovidesalertsinoursupplychaininareassuchasfinancial/credit,geographic/climactic,political,organizationalchanges,transportationandlabor/wages.

Wesourcetherawmaterialsforourgolfgloveandgolfshoebusinesses,andcertainofthecomponentsforourgolfshoebusiness,fromaselectgroupofthird-partysuppliers.

WehaveexcellentlongtermrelationshipswithourTitleistgolfclubsupplierpartners,andtheysupplythemajorityofourmorethan4,000componentSKUs.Thesekeypartnershipshaveallowedustoreduceleadtimesbyanaverageof60%overthepast5years,whilealsoreducingcomponentandfinishedgoodsinventory,ensuringon-handavailability,increasingourresponsivenesstocustomerdemandandimprovingsupplychaincontinuity.

Forourgolfgearbusinesses,wesourcethefinishedproductsfromselectthird-partyvendorsthathavethenecessaryqualitycapabilities.

FootJoyoperatesanapparelandaccessorycommercialofficeinHongKongthatisstaffedwitheightassociates.Theseindividualsarehighlytrainedinallaspectsofappareldesignanddevelopment,production,andqualitycontrolfunctions,directingallcommercialsourcingactivitiesamongcontractfactoriesthroughouttheregion.InadditiontotheeightassociatesinHongKong,FootJoyalsoemploystwoqualitycontrolinspectorsinChinaandoneinVietnamforcarefulmonitoringofallFootJoyapparelproduction.

SalesandDistribution

Ouraccountsconsistofpremiumgolfshops,whichincludeon-coursegolfshopsandgolfspecialtyretailers,aswellasotherqualifiedretailersthatsellgolfproductstoconsumersworldwide.Wehaveaselectivesalesanddistributionstrategy,differentiatedbyproductlineandgeography,whichfocusesoneffectivelyservingthoseaccountsthatprovidebestaccesstoourdedicatedgolfertargetmarketineachgeographicmarket.

Weoperate,andhaveourownfieldsalesrepresentation,inthosecountriesthatrepresentthesubstantialmajorityofgolfequipmentandwearablesales,includingtheUnitedStates,Japan,Korea,theUnitedKingdom,Canada,Germany,Sweden,France,GreaterChina,Australia,NewZealand,Thailand,SingaporeandMalaysia.Inothercountriesinwhichwesellourproducts,werelyonselectdistributorsinordertodeepenourreachintothosemarkets.Eachcountryadministersitsownin-countrychannelofdistributionstrategygiventheuniquecharacteristicsofeachmarket.

Asweseeourretailpartnersasacriticalconnectiontodedicatedgolfers,weplacegreatemphasisonbuildingstrongrelationshipsandtrustwiththem.Asaresult,oursalesanddistributiontakesa"categorymanagement"approachthatencompassesallaspectsofcustomerserviceandfulfillment,includingproductselection;spaceanddisplayplanning;salesstafftraining;andinventorycontrolandreplenishment.Eachsalesrepresentativeisseenasatrustedpartnerandskilledconsultant,includingontopicssuchasshoplayout,merchandisedisplaytechniquesandeffectiveuseofsignageandproductinformationandmethodsofimprovinginventoryturnsandsalesconversionsthroughmerchandising.Oursalesforcehasbeenrecognizedworldwideforitsprofessionalismandserviceexcellence.

TableofContents

Weemployover350salesrepresentativesworldwide,whoarecompensatedthroughacombinationofsalaryandaperformancebonus.IntheUnitedStates,membersofourTitleistandFootJoysalesteamaveragealmost20yearsofexperience.Wecurrentlyservicemorethan31,000directaccountsworldwide.Inbothourdirectsalesanddistributormarkets,ourtradepartnersaresubjecttoourredistributionpolicy.

Titleisthasdevelopedaglobaldistributionnetworkinwhichmostofthemajorgolfregionshavelocaldistributionoperationsthatmaintaininventoriesforexceptionalserviceandfulfillmentofstockproducts.Localcustomoperations,forbothgolfballsandgolfclubs,provideefficientturnaroundtimeoncustomimprintedorcustomfittedproducts.Inaddition,Titleistpromotesitspartnersastheequipmentandfittingexpertsandencouragesgolferstoseektheirexpertiseandadvice.Together,Titleistanditspartnersenrichthegolferexperiencewithbetterproducts,education,equipmentfittingandservice.

FootJoy'stradepartnersineveryregionareprovidedwithregulareducationalseminarsinproductfeaturesandbenefits;inventorycontrolmethods;propermerchandisinganddisplaytechniques;andeventraininginshoeandglovefitting.Theseminarsaresupplementedbyonlinetrainingmodulesthatextendthecontenttoamuchwideraudienceoffloorsalesassociatesinallaccounts.

SupplementingourcorefieldsalespartnershipsarecertainInternet-basedinitiatives.WealsolaunchedaU.S.eCommercewebsiteforFootJoyinearly2016,launchedtheMyProV1.comonlinegolfshopin2016,andplantolaunchaU.S.eCommercewebsiteforTitleistgolfgearinthesecondhalfof2017.

Marketing

Throughoutourhistory,acommitmenttomarketinghashelpedfurtherelevateourbrandsandstrengthenourreputationforproductperformanceandquality,withaparticularfocusontheperceptionofdedicatedgolfers.Ourstrategybeginswithdeliveringequipmentthatissuperiorinperformanceandquality,validatedbythepyramidofinfluence.Itisbest-in-classperformanceandqualityproductsthatearnandmaintaindedicatedgolfers'loyaltyandtrust.Ourmarketingstrategy,developedandrefinedovermanyyears,helpsreinforcethisloyaltyandtrust,drivingconnectivitywithourbrands.

Thekeycornerstonestobuildandstrengthengolferconnectionswithourbrandsare:pyramidofinfluencevalidation;merchandising;advertising;andeducationandfitting.WebelievethatamoreeducatedgolferismorelikelytobeaTitleistandFootJoygolfer.Oureffortscontributetoconsistent,responsiveandrapidsell-throughofTitleistequipmentandFootJoywearforourtradepartners.

Pyramid of Influence Validation

Broadusageandacceptancebythegame'sbestplayers,includingtourplayers,clubprofessionalsandcompetitiveamateurs,isfundamentaltoourmissionandpurpose.Wehaveagloballeadershipteamdedicatedtoservicingandsupportingthesegolfersthroughoutthepyramidofinfluence.Atprofessionalandamateurevents,theleadershipteamprovidestechnicalfittingexpertise,productsupportandservicetoeffectivelyrepresent,exhibit,recommendandcommunicateourpremiumperformanceandqualitystory.Ourassociatesaretrainedproductexperts,manyofwhomareproductcategory-specific,whosegoalistoarmplayerswiththeequipmentthatwillenablethemtoperformattheirhighestlevel.

CommunicatingthestrengthanddepthofTitleist'sandFootJoy'spyramidofinfluenceusagetothededicatedgolferisanotheressentialpartofourleadershipstrategy.Withinouradvertising,merchandising,websitesandotherdigitalmediacontent,wesharetheequipmentcounts,specificproductsandspecificationsandtheresultsofourplayers.Ourproductsenjoybroadusageand

TableofContents

acceptancethroughoutthepyramidofinfluence.Dedicatedgolfersareinterestedinwhatproductsmostoftheworld'sbestplayerstrust.

Merchandising

Excellenceinmerchandising,theretailformatinwhichourproductsarepresentedtotheconsumer,isanothersell-throughcompetency.Theroleofmerchandisingvariesbyproductcategory.WebelieveTitleististhegolfballleaderinitsin-shopmerchandising,andthatTitleistgolfballsmakethefirstimpression,bestimpressionandlongestlastingimpressioninpremiumgolfshops.Wealsobelievethatthesepremiumgolfshopsarewhereourdedicatedgolfertargetaudienceismostlikelytoshopfortheirgolfequipmentneeds.Wehaveplacedover20,000golfballdisplaysgloballyinordertoeffectivelymerchandiseTitleistandPinnaclegolfballs.

Titleistgolfclubs,wedgesandputtersalsomaintainapremiummerchandisingpresenceingolfshops.Giventhatourcorestrategyisfocusedonsellingcustomfitgolfclubsandwedges,weutilizedisplaystopromotetheproductofferingandofferdemotrialsets,inmanycasesnotinanattempttogenerateanimmediatesalebutratherwiththeultimategoalofencouraginggolferstoscheduleafittingsession.

WearecommittedtoensuringthatTitleistgolfgearisprominentlymerchandised.Wecontinuetoinvestinbothdisplaysandtrainingforeachofthegolfbag,headwear,glove,travelandheadcoverproductcategories.

FootJoydevotesconsiderableresourcestotheappearanceofitsproductsanddisplaysatpointofsale.Thisincludesanextensiveofferingoffixedandtemporaryproductdisplays,brandandproductsigningandgraphicsandawidevarietyofvisualtoolstocreatea"shopinshop"environmentthatconveysthebrand'smarketleadershipimage.

Advertising

Wedrivebrandandproductawarenesswithacommunicationstrategythattargetsdedicatedgolfersinallformsofmedia,includingtelevision,print,andawidevarietyofdigitalandsocialmediaforums.Ouradvertisingstrategyisfocusedoncommunicatingthelaunchofnewproductstogenerateawarenessandhighlightourproductperformanceandqualitycompetitiveadvantage.Ouradvertising

TableofContents

servesasanothereducationaltooltoconveythetechnologyandinnovationbehindourproductsandtheresultingperformancebenefitsforgolfers.

Wehavedevelopedstrongrelationshipswithourmediapartnersinordertosecureprominentandeffectivepositioning.Weusebroaderreachgolfmediavehiclesforgolfball,golfshoeandgolfgloveadvertisingandamoretargetedapproachforgolfclubs,wedgesandputtersandapparel.

Titleist.comandFootJoy.comarevitalpartsofourcommunicationstrategywithrichproduct,technologyandfittingcontent.Oursitesalsoprovidelocatorsforgolfshops,advancedfittingcentersandcertifiedcustomclubfitters.Wedevelopasignificantamountofdigitaleducationalcontent,featuringtourplayers,clubprofessionalsandourR&Dassociates,thatisdistributedtodedicatedgolfersviaoursocialmediaplatforms.OverthelastseveralyearswehavecultivatedalargeandgrowingfollowingonsocialmediaplatformsincludingFacebook,TwitterandInstagramasaresultofthiscontent.In2016,TitleistlaunchedtheMyProV1.comonlinegolfshoptodevelopastrongerlinkwithdedicatedTitleistbrandfans.Thismicrositeallowsgolferstocreateandpurchasetheirownunique,customimprintedProV1orProV1xgolfballswithspecialplaynumbers,logosorpersonalization.WebelievethistoolwillincreasethelikelihoodofrepurchaseandloyaltytoTitleistgolfballs.

TeamTitleistisagrowingonlinecommunityofavidgolfersandTitleistfansthathasbeeninstrumentalinestablishingthedirectcommunicationlinkbetweenusandourmostloyalcustomers.MembersofTeamTitleistaregivenexclusiveaccesstointeractwithTitleistassociatesaswellasotherTeamTitleistmembersbothinpersonandonline.TeamTitleistalsoprovidesustheplatformfordirectlycommunicatingnewproductinformation,tournews,customfittingeducationandreferralsandeventschedules.

TheFJCommunityisanonlinegroupofavidgolferswhoshareapassionforthegameofgolfandFootJoygolfwear.Whatbegan10yearsagoasamethodofreachinggolfersonadirectbasishasevolvedintoanopencommunityof50,000committedgolferswhoconnectwiththebrandandoneanother.Asengagementlevelsincrease,membersearnaccesstonewproductintroductionsandopportunitiestoparticipateinuniquepromotionsandevents.

Education and Fitting

Oneofourcorestrategiesandcompetenciesisgolfballandgolfclubeducationandfitting.Wealsohaveinplaceseveralgolfshoefittinginitiativesaimedateducatinggolfersontheimportanceofpropershoefitting.Wearecommittedtoeducatingourtradepartnersanddedicatedgolfersonourproductperformanceandtechnology.Playingwithproperlyfitequipmenthelpsgolfersshootlowerscores.Whengolfersplaybetter,theywanttoplaymore.

GolfBallEducationandFitting

Webelieveperformanceandqualitydifferencesbetweengolfballbrandsandmodelsaregamechanging.Inorderforgolferstoshoottheirlowestscores,itisimportantthattheyfindthebestballsuitedtotheirgame,asitistheonlypieceofequipmentthattheywilluseoneveryshot.Asthegolfballcategoryleaderandagloballeaderingolfballfittingandeducation,wearecommittedtohelpgolfersunderstandandappreciatethedifferentiatinganddefiningcharacteristicsofTitleistgolfballs,aswellasthedifferencesbetweenthevariousTitleistgolfballproducts.

Titleistgolfballeducationandfittingisperformance-basedandfocusesonimprovingscores.Ourmethodologyisgreen-to-teewithanemphasisnotonshotshitoffoftheteebutratheronshotshitintothegreenasthatiswherethevastmajorityofshotsperroundaremade.Prioritizingshortgamespinperformancehelpsgolfershitmoreshotsclosertothepintoenablethemtoconvertmoreputts.

TableofContents

Oureducationprogramalsoreinforcestheimportanceofgolfballtogolfballconsistency.GolferstrustthataTitleistgolfballwillperformexactlythewaytheyexpectittoiftheyhittheirshotproperly.

OurapproachtogolfballeducationandfittingisholisticandincludesbroadcommunicationmessaginginTitleistgolfballadvertising,in-shopmerchandising,websiteandotherdigitalmedia,tradepartnergolfballcertificationandin-fieldgolfereducation.In-fieldgolfereducationisconductedbydedicatedmobilegolfballfittingteamsorTitleisttechreps,supplementedbytheTitleistsalesteam.Forexample,in2015,weprovidedover100,000golfballrecommendationsbyconnectinginpersonwithgolfersatgolfcoursesandgolfshops.Over500,000additionalgolfersviewedourballfittingandeducationmaterialsatTitleist.com.

CustomClubFittingandTrial

Webelievethatfundamentaltoachievingmaximumperformancefromanygolfclubistheneedtocustomfittheclubtotheplayer'sindividualneedsandpreferences.Augmentingexcellentdesignandconstructionwithcustomizedspecificationsandcomponentssuchaslieangle,shafttype,lengthandflex,aswellasgriptypeandsize,providestheplayerwiththeabilitytomaximizetheperformancepotentialoftheclub.

Tothisend,providinggolferswiththeabilitytotryandbeexpertlyfitfortheirclubsisacorego-to-marketstrategyforTitleistclubs.Overthepast20yearswehavedevelopedandimprovedourcomprehensivefittingsystemandwedeploythatsystemthroughaglobal"Good,Better,Best"networkofcarefullyselected,trained,outfittedandcertifiedcustomclubfitters.

TheglobalTitleistclubfittingnetworkincludesover4,000tradepartners.EachisoutfittedwithaSureFitinterchangeablematrixofclubsinpopularshafttypes,lengthsandflexes,alongwithabroadselectionofVokeyDesignwedges,thusprovidingthemwiththenecessarytoolstoconducthighlevelfittings.Combinedwithannualtrainingandcertification,thesepartnersareskilledandequippedtocustomfitdedicatedgolfers.

Forgolferswhowantahigherlevelfittingexperience,wehavealsodevelopedaglobalnetworkofapproximately180advancedfittingpartners.Thesefittingspecialistsareoutfittedwithalargermatrixoffittingtools.TheyreceivepriorityreferralswhengolfersconductanonlinesearchforaTitleistfittinglocationorcontactusdirectlyforreferrals.Inadditiontoourglobalnetworkoffittingpartners,wealsodeployaglobalassociateteamofapproximately250Titleistfittingtechnicianswhoconductadvancedlevelfittingsdirectlywithgolfersatfittingandtrialevents.Collectively,weexpecttheywillconductanestimated100,000fittingsatover10,000eventsin2016.

Finally,atthepeakoftheTitleistfittingservicesnetwork,istheTitleistPerformanceInstituteinOceanside,California.ThemissionoftheTitleistPerformanceInstituteistobetheworld'smostcomprehensiveandadvancedgolfperformancecenter.Builtin1997,thisapproximately30acrepropertycomprisesthreefairwayswithtourqualitygreensandbunkers,astateoftheartfitnessfacilityanda3-dimensionalmotioncapturestudio.Thefacilityservesasheadquartersforourtourfittingefforts,conductedbyateamofelitefitters,andisalsoourprimaryclubdevelopmentaltestingsite.

TableofContents

Golfconsumerswhowanttheultimate,tour-levelcustomfittingexperiencecanvisittheTitleistPerformanceInstituteforafeeandbyappointmentonly.

GolfShoeFitting

Webelievethataproperlyfitgolfshoeisthemostimportantelementtooptimizingcomfortandproductdurability.Asagloballeaderingolfshoefitting,weholdeventsandseminarsinkeymarketsthroughoutNorthAmerica,EuropeandAsia.GolfereducationishandledbydedicatedfittingspecialistsandmembersoftheFootJoysalesteam.

Whileashoethatfitsagolfer'sfootisessentialforcomfort,webelievethatfindingashoethatfitsagolfer'sswingcanleadtoincreasedperformanceandwebelievethereisacorrelationbetweenindividualswingbiomechanicsandgolferperformance.WeexpecttodeploytheFootJoyPerformanceFittingSysteminthethirdquarterof2016.TheFootJoyPerformanceFittingSystemisdesignedtocapturethecenter-of-pressuremovementduringagolfer'sswingandhelprecommendthepropershoeconstructiontypethatcandeliveradditionalclubheadspeed.TheFootJoyPerformanceFittingSystemaimstoeliminatetheneedforvisual,anecdotalevidencetodeterminewhetherornotagolferwouldbenefitfromashoeconstructedwithmoreflexibilityversusmorerigidityorstructureandinsteadrelies

TableofContents

uponascientificsolution.Itisexpectedtobeavailableineverymajorgolfmarketasaperformancesupplementtoshoefittingforsizeandwidth.

Seasonality

Weatherconditionsinmostpartsoftheworld,includingourprimarygeographicmarkets,generallyrestrictgolffrombeingplayedyear-round,withmanyofouron-coursecustomersclosedduringthecoldweathermonths.Ingeneral,duringthefirstquarter,webeginsellingourproductsintothegolfretailchannelforthenewgolfseason.Thisinitialsell-ingenerallycontinuesintothesecondquarter.Oursecond-quartersalesaresignificantlyaffectedbytheamountofsell-through,inparticulartheamountofhighervaluediscretionarypurchasesmadebycustomers,whichdrivesthelevelofreordersoftheproductssoldduringthefirstquarter.Ourthird-quartersalesaregenerallydependentonreorderbusiness,andaregenerallylowerthanthesecondquarterasmanyretailersbegindecreasingtheirinventorylevelsinanticipationoftheendofthegolfseason.Ourfourth-quartersalesaregenerallylessthantheotherquartersduetotheendofthegolfseasoninmanyofourkeymarkets,butcanalsobeaffectedbykeyproductlaunches,particularlygolfclubs.Thisseasonality,andthereforequartertoquarterfluctuations,canbeaffectedbymanyfactors,includingthetimingofnewproductintroductionsasdiscussedaboveunder"—OurProducts—ProductLaunchCycles,"aswellasweatherconditions.Thisseasonalityaffectssalesineachofourreportablesegmentsdifferently.Ingeneral,however,becauseofthisseasonality,amajorityofoursalesandmostofourprofitabilitygenerallyoccursduringthefirsthalfoftheyear.

ResearchandProductDevelopment

Innovatingwithinahighlyregulatedenvironmentpresentsuniquechallengesandopportunitiesthatrequireasignificantinvestmentinpeople,facilitiesandfinancialresources.WehavesixR&Dfacilitiesand/ortestcenterssupportedbyover150scientists,chemists,engineersandtechniciansinaggregate.WearecommittedtocontinuousimprovementandeachR&Dteamistaskedtodeveloptechnologythatwilldeliverbetterqualityandperformanceproductsineachgeneration.

FortheyearsendedDecember31,2013,2014and2015,weinvested$42.2million,$44.2millionand$46.0million,respectively,inR&D.

TableofContents

WehaveseparatededicatedR&Dteamsforeachproductcategory.

Titleist Golf Balls

TitleistgolfballR&Dhasadisciplinedproductdevelopmentprocess.TheR&Dteamconsistsofapproximately80scientists,chemists,engineersandtechnicians.Theirroleistoinnovateinallareasofgolfballdesign,materialsandconstructionsbyincorporatingnewtechnologiestowidenourperformanceandqualitycompetitiveadvantage.Adedicatedteamalsoworksspecificallyonnewprocesstechnologiesforourgolfballmanufacturingoperations.Theyworkcloselywithrawmaterialsupplierstocreatestandardsandspecifications.Theyestablishqualitysystems,protocolsandanalysisandsupportTitleistballoperationsinnewproductimplementation.

ThegolfballR&Dteamisresponsiblefor:

TitleisthasthreegolfballdedicatedresearchfacilitiesinthegreaterNewBedford,Massachusettsareathatdesign,test,implementandsupportnewproductdevelopmentandimplementation:

• theTitleistgolfballR&DteamisbasedinourFairhaven,Massachusettsheadquartersfacility;

• TitleistEngineeringandTechnologyCenterinNorthDartmouth,Massachusettshousesouradvancedengineeringassociatesaswellasprecisiongolfballcavitymanufacturing;and

• TitleistManchesterLaneinAcushnet,Massachusettsisastate-of-the-arttestingfacilityforR&Dtoconductextensiverobotandplayertesting.

Inaddition,weconductadditionalgolfballproducttestingatourOceanside,Californiatestfacility.WehavededicatedR&Dassociateswhoworkcloselythroughoutthepyramidofinfluence,fromPGATourplayersallthewaytoamateurTeamTitleistmembers,togatherfeedbackonproductperformanceexpectations,conductprototypetestingandvalidatenewproductspriortomarketlaunch.Thisisacontinuousiterativeandcollaborativeprocessthatimpactsnextgenerationgolfballsaswellaslong-termresearchandproductdirection.

Titleist Golf Clubs, Wedges and Putters

OurgolfclubR&Dteamandprocessesarestructuredinamannerthataimstocreateproductswhichareinnovativeindesignandsuperiorinperformance.Theperformanceandqualityofourproductsareadirectresultofthecommitmenttogolfclubs,wedgesandputtersR&D.SignificantinvestmentinR&Dhasledtoateamsizewhichhasmorethandoubledsince2007.Thedepartment'stechnicaldisciplinesincludecomputer-aideddesignengineers,industrialdesigners,productdevelopmentengineers,researchengineers,labtechniciansandtestingstaff.Wehave67associatesdedicatedtoclubsandwedgesR&D.

Wehavedistinctteamsworkingontheconceptcreationanddevelopmentfordrivers,fairways,hybrids,irons,wedgesandputters.Theseproductsareinitiallytestedandvalidatedatourstate-of-the-arttestingfacilityinOceanside,California.

ScottyCameronworksfromthePutterStudioinSanMarcos,Californiawhichallowshimtomaximizehiscreativityanddevelopdesignswhicharerichincraftsmanshipaswellasperformance.

• playerresearch • dataanalytics• productandprocessresearch • productdevelopmentandimplementation• aerodynamics • analyticalandcompetitiveresearch• testing • intellectualproperty• testequipment • centralquality

TableofContents

Thisstructureisnecessarygiventhereareuniqueexpertiseandperformancerequirementsforeachoftheproductcategories.

Theproductcategoryteamsallworkwiththefollowingsupportteams:advancedresearch,shaftdevelopment,industrialdesign,labanalysisandmechanicaltesting,playertestingandanAsia-basedsupportteamworkingwithourkeysuppliers.

FootJoy

Wehaveapproximately10productdesignersanddevelopmentengineersinthegolfshoeteamlocatedinBrockton,Massachusetts,withanadditionalthreeproductdevelopmentspecialistslocatedinourTaichung,Taiwanoffice.WehavetwogolfappareldesignerslocatedinFairhaven,Massachusetts.

Patents,TrademarksandLicenses

Weconsiderourpatentsandtrademarkstobeamongourmostvaluableassets.WearededicatedtoprotectingtheinnovationscreatedbyourR&Dteamsbydevelopingbroadanddeeppatentandtrademarkportfoliosacrossallproductcategories.

Asaresult,wehavestrongpatentpositionsacrossourproductcategoriesandinnovationspacesthatweoperatein,andhavebecometheleaderinobtaininggolfballandgolfclubpatentsworldwide.Inaddition,webelievewehavemorecombinedgolfshoeandgolfgloveutilitypatentsthanallcompetitorscombined.Wehavecloseto1,200activeU.S.utilitypatentsingolfballs,over300activeU.S.utilitypatentsingolfclubs,wedgesandputtersand284activepatents(includingex-U.S.anddesignpatents)ingolfshoesandgloves.

Thefollowingchartsshowourpercentageofgolfballandgolfclubpatentsobtainedinthelast5yearscomparedtoourpeers.

Weownorlicensealargeportfoliooftrademarks,includingforTitleist,ProV1,ProV1x,Pinnacle,AP1,AP2,VokeyDesign,ScottyCameron,FootJoy,FJ,DryJoys,StaSofandProDry.Weprotectourtrademarksbyobtainingregistrationswhereappropriateandopposingorcancellingmaterialinfringements.Wealsohaverightsinseveralcommonlawmarks.

Competition

Thereareuniqueaspectstothecompetitivedynamicineachofourproductcategories.

TableofContents

Thegolfballbusinessishighlycompetitive.Thereareanumberofwell-establishedandwell-financedcompetitors,includingCallaway,SRISportsLimited(DunlopandSrixonbrands)andBridgestone(BridgestoneandPreceptbrands).

Thegolfclub,wedgeandputtersmarketsinwhichwecompetearealsohighlycompetitiveandareservedbyanumberofwell-establishedandwell-financedcompanieswithrecognizedbrandnames,includingCallaway,TaylorMadeandPing.

Forgolfballsandgolfclubs,wedgesandputters,wegenerallycompeteonthebasisoftechnology,quality,performanceandcustomerservice.

Inthegolfgearmarket,therearenumerouscompetitorsineachproductcategoryandgeographicalmarket.Titleistgolfgeargenerallycompetesonthebasisofquality,performance,stylingandcustomerservice.

FootJoy'ssignificantworldwidecompetitorsingolfshoesincludeNike,AdidasandEcco.FootJoy'sprimaryworldwidecompetitorsingolfglovesincludeCallaway,NikeandTaylorMade/Adidasandasignificantnumberofsmallercompanieswithregionalofferingsandspecializedgolfgloveproducts.Inthegolfapparelcategory,FootJoyhasnumerouscompetitorsineachgeographicalmarket,includingNike,AdidasandUnderArmour.FootJoyproductsgenerallycompeteonthebasisofquality,performance,stylingandprice.

Regulation

The Rules of Golf

TheRulesofGolfsetforththerulesofplayandtherulesforequipmentusedinthegameofgolf.Thefirstdocumentedrulesofgolfdateto1744andthemodernRulesofGolfhavebeeninplaceforover100years.DedicatedgolfersrespectthetraditionsofthegameandplaybytheRulesofGolf.Asaresult,premium-positionedproductsaredesignedandmanufacturedtoconformtotheRulesofGolf.

TheUnitedStatesGolfAssociation,ortheUSGA,isthegoverningbodyforgolfintheUnitedStatesandMexico.TheUSGA,inconjunctionwiththeRoyalandAncient,orR&A,inSt.Andrews,Scotland,writes,interpretsandmaintainstheRulesofGolf.TheR&AisthegoverningbodyforgolfinalljurisdictionsoutsideoftheUnitedStatesandMexico.TheR&Ajointlywrites,interpretsandmaintainstheRulesofGolfwiththeUSGA.

Inadditiontotheirroleasrulemakers,boththeUSGAandR&Aconductnationalchampionshipsandareinvolvedinothereffortstomaintainthehistoryofgolfandpromotethehealthofthegame.

TheRulesofGolfsetthestandardsandestablishlimitationsforthedesignandperformanceofallballsandclubs.Manynewregulationsongolfballsandgolfclubshavebeenintroducedinthepast10to15years,whichwebelievewasoneofthemostactiveperiodsforgolfequipmentregulationinthehistoryofgolf.

Golf Balls

Historically,theUSGAandR&Ahaveregulatedthesize,weight,sphericalsymmetry,initialvelocityandoveralldistanceperformanceofgolfballs.Theoveralldistancestandardwasthenrevisedin2004.

TableofContents

Golf Clubs

TheUSGAandR&Ahavealsofocusedongolfclubregulations.In1998,alimitationwasplacedonthespring-likeeffectofdriverfaces.In2003,limitswereplacedonclubheaddimensionsandvolume,aswellasshaftlength.In2007,clubheadmomentofinertiawaslimited.ArulechangetoallowgreateradjustabilityingolfclubswentintoeffectJanuary1,2008.InAugust2008,theUSGAandR&Aadoptedarulechangefurtherrestrictinggolfclubgroovesbyreducingthegroovevolumeandlimitingthegrooveedgeangleallowableonironsandwedges.ThisrulechangewillnotapplytomostgolfersuntilJanuary1,2024.Itwasimplementedonprofessionaltoursbeginningin2010andwasimplementedineliteamateurcompetitionsbeginningin2014.AllproductsmanufacturedafterDecember31,2010mustcomplywiththenewgroovespecifications.

Our Position

Inresponsetothisregulatorydynamic,ourseniormanagementandR&DteamsspendsignificanttimeandeffortindevelopingandmaintainingrelationshipswiththeUSGAandR&A.Weareanactiveparticipantindiscussionswiththerulingbodiesregardingpotentialnewrulesandtherulemakingprocess.Moreimportantly,ourR&DteamsaredriventoinnovateandcontinuouslyimproveproducttechnologyandperformancewithintheRulesofGolf.Thedevelopmentandprotectionoftheseinnovationsthroughaggressivepatentingareessentialtocompetinginthecurrentmarket.Asalong-timeindustryparticipantandmarketleader,wearewell-positionedtocontinuetooutperformthemarketinarulesconstrainedenvironment.

EnvironmentalMatters

Ouroperationsaresubjecttofederal,stateandlocalenvironmentallawsandregulationsthatimposelimitationsonthedischargeofpollutantsintotheenvironmentandestablishstandardsforthehandling,generation,emission,release,discharge,treatment,storageanddisposalofcertainmaterials,substancesandwastesandtheremediationofenvironmentalcontaminants.Intheordinarycourseofourmanufacturingprocesses,weusepaints,chemicalsolventsandothermaterials,andgeneratewasteby-productsthataresubjecttotheseenvironmentallaws.

Weestimateincurringfuturecostsforpastandcurrentenvironmentalissuesrelatingtoongoingclosureactivitiesatthefollowingsites:(i)ourformerTitleistBallPlant1inAcushnet,Massachusetts,whichissubjecttoongoingremediationofpastcontaminationundertheoversightofthefederalEnvironmentalProtectionAgencyandtheMassachusettsDepartmentofEnvironmentalProtection;(ii)ourBallPlantCinNewBedford,Massachusetts,whichissubjecttoanongoinginvestigationrelatedtocontaminationthatisevidentlymigratingfromanadjacentthird-partyfacility;and(iii)investigationsandcleanupsatfourthird-partydisposalfacilities.Wedonotexpectthatanyofthefutureanticipatedexpendituresatthesesiteswillhaveamaterialadverseeffectonourbusiness.

Wehavealsoincurredexpensesinconnectionwithenvironmentalcompliance.Historically,thecostsofenvironmentalcompliancehavenothadamaterialadverseeffectuponourbusiness.Webelievethatouroperationsareinsubstantialcompliancewithallapplicableenvironmentallaws.

Employees

AsofJune30,2016,weemployed5,228associatesworldwide(5,195fulltimeand33parttime).Thegeographicconcentrationofassociatesisasfollows:2,449intheAmericas,434inEMEA,and2,345employedinAsiaPacific.Associateswithovertenyearsofemploymentwithusaccountforapproximately50%ofourtotalassociatecountintheUnitedStates.Theemploymentofallassociatesisatwillandnoneofourassociatesarerepresentedbyaunion.Webelievethatrelationswithourassociatesarepositive.

TableofContents

Facilities

Ourfacilitiesarelocatedworldwideasshowninthetablebelow.

Location Type FacilitySize(1) Leased/OwnedFairhaven,Massachusetts HeadquartersandGolfBallR&D 222,720 Owned

Golf Balls

NorthDartmouth,Massachusetts

Golfballmanufacturing 179,602 Owned

NewBedford,Massachusetts

AmphurPluakdaengRayong,Thailand

NewBedford,Massachusetts

Golfballcustomizationanddistributioncenter 438,007 Owned

Fairhaven,Massachusetts Golfballpackaging 49,580 OwnedNewBedford,Massachusetts

Golfballadvancedengineeringandballcavitymanufacturing

34,000 Leased

Golf Clubs, Wedges and Putters

Carlsbad,California GolfclubassemblyandR&D 161,310 LeasedSanMarcos,California Putterresearch 19,200 LeasedEncinitas,California Putterfittingandsales 3,754 LeasedTochigi,Japan Golfclubassembly 20,376 Leased

FootJoy

Fujian,China(40%ownedjointventure)

Golfshoemanufacturinganddistributioncenter 525,031 BuildingOwned/LandLeased

Brockton,Massachusetts GolfshoeR&D,customgloveassembly,apparelembroideryanddistributioncenter

146,000 Owned

SrirachaChonburi,Thailand

Golfglovemanufacturing 112,847 BuildingOwned/LandLeased

Sales Offices and Distribution Centers (used by multiple reportable segments)

Fairhaven,Massachusetts EastCoastdistributioncenter 185,370 OwnedVista,California WestCoastdistributioncenterandgolfbagembroidery 102,319 LeasedCambridgeshire,UnitedKingdom

Salesofficeanddistributioncenter,aswellasgolfclubassemblyandgolfballcustomization

156,326 Owned

Helmond,TheNetherlands

Salesofficeanddistributioncenter 69,965 Leased

Victoria,Australia Salesofficeanddistributioncenter,aswellasgolfclubassembly

37,027 Leased

TableofContents

WehaveadditionalsalesofficesandfacilitiesinHawaii,NewZealand,Malaysia,Singapore,HongKong,Taiwan,Japan,Korea,Thailand,Sweden,France,GermanyandSwitzerland.

LegalProceedings

Wearedefendantsinlawsuitsassociatedwiththenormalconductofourbusinessesandoperations.Itisnotpossibletopredicttheoutcomeofthependingactions,and,aswithanylitigation,itispossiblethatsomeoftheseactionscouldbedecidedunfavorably.Webelievethattherearemeritoriousdefensestotheseactionsandthattheseactionswillnothaveamaterialadverseeffectuponourresultsofoperations,cashflows,orfinancialcondition.Theseactionsarebeingvigorouslycontested.

Location Type FacilitySize(1) Leased/OwnedOntario,Canada Salesofficeanddistributioncenter,aswellasgolf

ballcustomization 102,057 Leased

Shenzhen,China Distributioncenterandgolfballcustomization 73,194 LeasedRandburg,SouthAfrica

Salesofficeanddistributioncenter,aswellasgolfclubassembly

25,060 Leased

Icheon-si,Korea Distributioncenter,golfballcustomizationandgolfclubassembly

155,151 Leased

Product Testing and Fitting Centers (Golf Balls and Golf Clubs)

Acushnet,Massachusetts

EastCoastproducttestingandfittingforgolfballsandgolfclubs

22acrestotal,including7,662squarefootbuilding

Oceanside,California

WestCoastproducttestingandfittingforgolfballsandgolfclubs(TitleistPerformanceInstitute)

30acrestotal,including20,539squarefootbuilding

(1) Facilitysizerepresentssquarefootageofthebuilding,unlessotherwisenoted.

TableofContents

MANAGEMENT

ExecutiveOfficersandDirectors

Thefollowingtablesetsforthourexecutiveofficersanddirectorswhowillbeinplaceimmediatelyfollowingthepricingofthisoffering,aswellastheiragesasofJune30,2016.

Walter (Wally) Uihlein, 67,joinedthecompanyin1976andwasappointedPresidentandChiefExecutiveOfficerofAcushnetCompanyin1995andwasappointedPresidentandChiefExecutiveOfficerofAcushnetHoldingsCorp.inMay2016.Mr.UihleinhasservedasamemberoftheboardofdirectorsofAcushnetCompany,ouroperatingsubsidiary,since1984,andwillbecomeamemberofourboardofdirectorsimmediatelyfollowingthepricingofthisoffering.In2005,Mr.UihleinreceivedthePGAofAmerica'sDistinguishedServiceAward,theorganization'shighesthonor.Mr.UihleinwasselectedtoserveasadirectorbecauseheisourPresidentandChiefExecutiveOfficerandhasextensiveexperienceasanexecutiveinthegolfindustry,aswellasduetohisexperienceasadirectorofAcushnetCompanysince2011.

David Maher ,48,joinedthecompanyin1991andwasappointedChiefOperatingOfficerinJune2016.Priortothat,Mr.MaherwasSeniorVicePresident,TitleistWorldwideSalesandGlobalOperationsfromFebruary2016toJune2016andVicePresident,TitleistU.S.Salesfrom2001to2015.

Mary Lou Bohn, 55,joinedthecompanyin1987andwasappointedPresident,TitleistGolfBallsinJune2016.Priortothat,Ms.BohnwasExecutiveVicePresident,TitleistGolfBallsandTitleistCommunicationsfromFebruary2016toJune2016,VicePresident,GolfBallMarketingandTitleistCommunicationsfrom2010to2015andVicePresident,AdvertisingandCommunicationsfrom2000to2010.

Steven Pelisek, 55,joinedthecompanyin1993andwasappointedPresident,TitleistGolfClubsinMarch2016.From2008toMarch2016,hewasGeneralManager,TitleistGolfClubs.Priortothat,Mr.PelisekservedasVicePresident,ClubSalesforboththeTitleistandCobraClubbrands.

John (Jay) Duke, Jr., 47,joinedthecompanyin2014andwasappointedPresident,TitleistGolfGearin2014.Priortothat,Mr.DukeworkedatHasbro,Inc.from2012to2014wherehewasVicePresidentandGlobalFranchiseLeaderforTransformersGlobalBrand.PriortoHasbro,Mr.Dukewas

Name Age PositionWalter(Wally)Uihlein 67 PresidentandChiefExecutiveOfficerandDirectorNomineeDavidMaher 48 ChiefOperatingOfficerMaryLouBohn 55 President,TitleistGolfBallsStevenPelisek 55 President,TitleistGolfClubsJohn(Jay)Duke,Jr. 47 President,TitleistGolfGearChristopherLindner 47 President,FootJoyWilliamBurke 57 ExecutiveVicePresident,ChiefFinancialOfficerandTreasurerDennisDoherty 59 ExecutiveVicePresident,ChiefHumanResourcesOfficerJosephNauman 63 ExecutiveVicePresident,ChiefLegalandAdministrativeOfficerandSecretaryYoonSoo(Gene)Yoon 70 ChairmanJenniferEstabrook 55 DirectorNomineeGregoryHewett 47 DirectorNomineeChristopherMetz 51 DirectorNomineeSeanSullivan 49 DirectorNomineeStevenTishman 59 DirectorNomineeDavidValcourt 64 DirectorNomineeNormanWesley 66 DirectorNominee

TableofContents

PresidentofKarhuHoldingsBVfrom2008to2012andpriortothatheheldvariousgeneralmanagementpositionswithConverseInc.(asubsidiaryofNike).Mr.DukealsospenttimeearlierinhiscareerworkingforMorganStanleyandReebok.

Christopher Lindner, 47,joinedthecompanyinAugust2016asPresidentofFootJoy.Priortothat,Mr.LindnerworkedatWolverineWorldWideInc.from2010toAugust2016wherehewasPresidentofKedsfrom2014toAugust2016,ChiefMarketingOfficerandSeniorVicePresidentofBusinessDevelopmentforSperryin2014andChiefMarketingOfficerandSeniorVicePresidentofNorthAmericaSalesforSauconyfrom2010to2014.Priorto2010,Mr.LindnerheldvariouspositionswithNIKE,Inc.,includingasVicePresidentofGlobalMarketingforConverseandVicePresidentofGlobalMarketingforBauerHockey(bothNIKEsubsidiaries),andleadershiproleswith800.com,ElectronicArtsandRollerblade.

William Burke, 57,joinedthecompanyin1997andwasappointedExecutiveVicePresident,ChiefFinancialOfficerandTreasurerinApril2016afterservingasSeniorVicePresidentandChiefFinancialOfficerofAcushnetCompanysince2003.Priortothat,heservedasVicePresidentandControllerofAcushnetCompany.Beforejoiningthecompany,Mr.BurkeheldvariousfinancepositionsatpredecessorparentcompaniesFortuneBrandsInc.andAmericanBrandsInc.

Dennis Doherty, 59,joinedthecompanyin1994andwasappointedExecutiveVicePresident,ChiefHumanResourcesOfficerinJune2016afterservingasSeniorVicePresident,HumanResourcessince2000.BeforejoiningAcushnetCompany,Mr.DohertyheldhumanresourcepositionsatAmericanBrandsInc.andRevlonHealthCareGroup.

Joseph Nauman, 63,joinedthecompanyin2000andwasappointedExecutiveVicePresident,ChiefLegalandAdministrativeOfficerandSecretaryinJune2016.Priortothat,Mr.NaumanwasExecutiveVicePresident,CorporateandLegalfrom2005toJune2016.Priorto2000,Mr.NaumanheldlegalpositionsatFortuneBrandsInc.andChadbourne&ParkeLLP.

Yoon Soo (Gene) Yoon, 70,hasbeentheChiefExecutiveOfficerofFilaKoreasince1991andtheChairmanofFilaKoreasince1994.FilaKoreaisapubliccompanylistedontheKoreaExchange.Mr.YoonhasservedasthechairmanofourboardofdirectorsandasthechairmanoftheboardofdirectorsofAcushnetCompany,ouroperatingsubsidiary,since2011andservedasthePresidentofAcushnetHoldingsCorp.from2011untilMay2016.Mr.YoonwasselectedtoserveasadirectorbecauseofhisaffiliationwithFila,hisknowledgeandexperienceinconsumerproductsandhisexperienceasthechairmanofAcushnetHoldingsCorp.andAcushnetCompanysince2011.

Jennifer Estabrook , 55,hasbeentheChiefOperatingOfficerofFilaNorthAmericasinceDecember2015andwastheExecutiveVicePresident,BusinessOperationsofFilaUSA,Inc.fromSeptember2010untilDecember2015.Ms.EstabrookhasalsobeentheHeadofGlobalLicensingforFilaLuxembourgS.à.r.l.since2014andamemberoftheBoardofManagersofFilaLuxembourgS.à.r.l.since2007andhasheldseveralotherpositionsatFilaUSA,Inc.anditsaffiliatessince2005.FilaUSA,Inc.andFilaLuxembourgS.à.r.l.arewholly-ownedsubsidiariesofFilaKorea,apubliccompanylistedontheKoreaExchange.Ms.EstabrookhasservedasamemberoftheboardofdirectorsofAcushnetCompany,ouroperatingsubsidiary,since2011.Ms.Estabrookiscurrentlyadirectornomineeandwillbecomeamemberofourboardofdirectorsimmediatelyfollowingthepricingofthisoffering.Ms.EstabrookwasselectedtoserveasadirectorbecauseofheraffiliationwithFila,herknowledgeandexperienceinconsumerproductsandherexperienceasadirectorofAcushnetCompanysince2011.

Gregory Hewett ,47,istheprincipalofGHConsultingLLC,aprivateconsultancyforbusinessesandinstitutionalinvestorsthathefoundedinMarch2015.Previously,Mr.HewettservedatTheBlackstoneGroupL.P.fromAugust2005throughFebruary2015invariouscapacities,includingmostrecentlyasaSeniorManagingDirector.PriortojoiningBlackstone,Mr.HewettservedasaDirectorin

TableofContents

theInvestmentBankingDivisionofCreditSuisseFirstBoston,whichhejoinedin2000whenitacquiredDonaldson,Lufkin&Jenrette,wherehewasanAssociateintheInvestmentBankingDivision.PriortojoiningDLJ,Mr.HewettpracticedlawatBryanCaveLLP.Mr.Hewettiscurrentlyadirectornomineeandwillbecomeamemberofourboardofdirectorsimmediatelyfollowingthepricingofthisoffering.Mr.Hewettwasselectedtoserveasadirectorbecauseofhissignificantexperienceinfinance.

Christopher Metz ,51,isthePresidentandChiefExecutiveOfficerofArcticCatInc.,apositionhehasheldsinceDecember2014.Mr.MetzalsoservesasadirectorofArcticCat,Inc.Mr.MetzwasaManagingDirectorofSunCapitalPartners,Inc.,aprivateequityfirm,from2005to2014.PriortojoiningSunCapital,Mr.MetzheldvariousseniorleadershippositionsatBlack&Decker,includingPresidentofitsHardwareandHomeImprovementGroupfrom1999to2005andGeneralManagerofitsDeWALTEuropeanPowerToolsbusinessbasedinFrankfurt,Germanyfrom1996to1999.Mr.MetzpreviouslyservedasadirectorofVinceHoldingCorp.Mr.Metziscurrentlyadirectornomineeandwillbecomeamemberofourboardofdirectorsimmediatelyfollowingthepricingofthisoffering.Mr.Metzwasselectedtoserveasadirectorbecauseofhisextensiveglobaloperatingandleadershipexperienceintheconsumeranddurablegoodsindustriesandhisexperienceservingonotherpubliccompanyboards.

Sean Sullivan ,49,istheExecutiveVicePresidentandChiefFinancialOfficerofAMCNetworksInc.,apositionhehasheldsince2011.Mr.SullivanservedasChiefCorporateOfficerofRMHfrom2010to2011.PriortojoiningAMCNetworksInc.,Mr.SullivanservedasChiefFinancialOfficerofHiTEntertainmentfrom2009to2010andChiefFinancialOfficerandPresidentofCommercialPrintandPackagingdivisionofCenveo,Inc.from2005to2008.Mr.Sullivaniscurrentlyadirectornomineeandwillbecomeamemberofourboardofdirectorsimmediatelyfollowingthepricingofthisoffering.Mr.Sullivanwasselectedtoserveasadirectorbecauseofhissignificantexperienceinfinanceandoperations.

Steven Tishman ,59,isaManagingDirectorandGlobalHeadoftheMergersandAcquisitionsGroupatHoulihanLokey,whereheisalsoamemberoftheFirm'sManagementCommittee,Co-HeadoftheFirm'sM&ACommitmentCommitteeandamemberoftheFirm'sCorporateFinanceBoardofDirectors.Mr.TishmanjoinedHoulihanLokeyinJanuary2012.Previously,Mr.TishmanwasaManagingDirectoratRothschildInc.,whereheservedfrom2002to2012.PriortojoiningRothschild,Mr.TishmanwasaManagingDirectorofRobertsonStephensInc.from1999to2002,andwasaSeniorManagingDirectorofBear,Stearns&Co.Inc.from1993to1999.Mr.TishmaniscurrentlyatrusteeofGoodHavenFundsTrustandwaspreviouslyadirectorofCedarFairL.P.,NauticaEnterprises,Inc.,Claire'sStores,Inc.andOdimo,Inc.Mr.Tishmaniscurrentlyadirectornomineeandwillbecomeamemberofourboardofdirectorsimmediatelyfollowingthepricingofthisoffering.Mr.Tishmanwasselectedtoserveasadirectorbecauseofhisextensiveexperienceinfinanceandmanagementandservingonotherpubliccompanyboards.

David Valcourt ,64,servedasSeniorMentorandKorea-U.SAllianceMilitaryExerciseFacilitatorforUSforcesKoreafrom2011-2016.HeassumedthispositionfollowinghisretirementfromtheArmyin2010asLieutenantGeneralafter37yearsofactivedutyservice.Lt.Gen.ValcourtalsojoinedWILLInteractive,adeveloperofinteractivevideo-basedsimulationsdesignedtomodifybehaviorandenhanceperformanceuponretirementfromtheArmy;hetransitionedtotheroleofSpecialAdvisorinJanuary2016.Lt.Gen.Valcourtiscurrentlyadirectornomineeandwillbecomeamemberofourboardofdirectorsimmediatelyfollowingthepricingofthisoffering.Lt.Gen.Valcourtwasselectedtoserveasadirectorbecauseofhisextensiveleadershipandmanagementexperience.

Norman Wesley ,66,istheformerChiefExecutiveOfficerandChairmanofFortuneBrands,Inc.Mr.WesleyjoinedFortuneBrandsin1984andbecamePresidentandChiefOperatingOfficerofFortuneBrandsinJanuary1999,andChairmanandChiefExecutiveOfficerofFortuneBrandsin

TableofContents

December1999.HeservedasChiefExecutiveOfficerthroughDecember2007andasChairmanuntilSeptember2008.Previously,Mr.WesleyheldvariousmanagementpositionsatCrownZellerbachCorporation.Mr.WesleycurrentlyservesasadirectorofAcuityBrands,Inc.andFortuneBrandsHome&Security,Inc.Mr.WesleywaspreviouslyadirectorofKeurigGreenMountain,Inc.,PactivCorporation,andR.R.Donnelly&Sons.Mr.Wesleyiscurrentlyadirectornomineeandwillbecomeamemberofourboardofdirectorsimmediatelyfollowingthepricingofthisoffering.Mr.Wesleywasselectedtoserveasadirectorbecauseofhisextensiveexperienceintheconsumerproductsindustry,hispriorleadershipexperience,andhisexperienceservingonotherpubliccompanyboards.

Therearenofamilyrelationshipsamonganyofourexecutiveofficersordirectorswhowillbeinplaceimmediatelyfollowingthepricingofthisoffering.

BoardLeadershipStructureandtheBoard'sRoleinRiskOversight

Controlled Company Exemption

UnderthecorporategovernancestandardsoftheNYSE,acompanyofwhichmorethan50%ofthevotingpowerisheldbyanindividual,group,oranothercompanyisa"controlledcompany."UpontheclosingofthisofferingandaftergivingeffecttotheShareholderTransaction,Magnus,whichiswholly-ownedbyFilaKorea,willcontrolamajorityofthevotingpowerofalloutstandingsharesofourcommonstockandasaresult,wewillqualifyasa"controlledcompany"withinthemeaningofthecorporategovernancestandardsoftheNYSE.

Asacontrolledcompany,wemayelectnottocomplywithcertaincorporategovernancestandards,including:

• therequirementthatamajorityofourboardofdirectorsconsistof"independentdirectors"asdefinedundertherulesoftheNYSE;

• therequirementthatwehaveacompensationcommitteethatiscomposedentirelyofindependentdirectorswithawrittencharteraddressingthecommittee'spurposeandresponsibilities;

• therequirementthatwehaveanominatingandcorporategovernancecommitteethatiscomposedentirelyofindependentdirectorswithawrittencharteraddressingthecommittee'spurposeandresponsibilities;and

• therequirementforanannualperformanceevaluationofthecompensationandnominatingandcorporategovernancecommittees.

Althoughwedonotcurrentlyexpecttoavailourselvesoftheseexemptions,wemayinthefutureutilizeoneormoreoftheseexemptions.Accordingly,youmaynothavethesameprotectionsaffordedtoshareholdersofcompaniesthataresubjecttoallofthesecorporategovernancerequirements.Intheeventthatweceasetobea"controlledcompany"andoursharescontinuetobelistedontheNYSE,wewillberequiredtocomplywiththeseprovisionswithintheapplicabletransitionperiod.

Composition of our Board of Directors Immediately Following the Pricing of this Offering

Ourbusinessandaffairsaremanagedunderthedirectionofourboardofdirectors.Inconnectionwiththisoffering,weareamendingandrestatingourcertificateofincorporationtoprovideforaclassifiedBoardofDirectors,withthreedirectorsinClassI(DavidValcourt,NormanWesleyandGeneYoon),threedirectorsinClassII(ChristopherMetz,StevenTishmanandWallyUihlein)andthreedirectorsinClassIII(JenniferEstabrook,GregoryHewettandSeanSullivan).See"DescriptionofCapitalStock."Webelieveourboardofdirectorsshouldbecomposedofindividualswithsophisticationandexperienceinmanysubstantiveareasthatimpactourbusiness.Webelieveexperience,qualificationsorskillsinthefollowingareasaremostimportant:priorCEOexperience;strategic

TableofContents

matters;financialmanagement;operationsmanagement;humanresourcesandexecutivecompensation;riskmanagement;externalrelations;consumerbrands;andglobalbusinessexperience.

Otherthanourchairman,themembersofourboardofdirectorsinplaceimmediatelypriortothepricingofthisofferingwilleachresignfromourboardofdirectorscontingentupon,andeffectiveimmediatelyfollowing,thepricingofthisoffering.Asofthetimeimmediatelyfollowingthepricingofthisoffering,ourboardofdirectorswillconsistofninedirectors,includingourPresidentandChiefExecutiveOfficer.Ouramendedandrestatedcertificateofincorporationandamendedandrestatedbylawsthatwillbecomeeffectiveimmediatelypriortotheclosingofthisofferingwillprovidethatourboardofdirectorsshallconsistofsuchnumberofdirectorsasdeterminedfromtimetotimebyresolutionadoptedbyamajorityofthetotalnumberofauthorizeddirectors,whetherornotthereexistanyvacanciesinpreviouslyauthorizeddirectorships.Anyadditionaldirectorshipsresultingfromanincreaseinthenumberofdirectorsmayonlybefilledbythedirectorstheninofficeunlessotherwiserequiredbylaworbyaresolutionpassedbyourboardofdirectors.Thetermofofficeforeachdirectorwillbeuntilhisorhersuccessoriselectedatourannualmeetingorhisorherdeath,resignationorremoval,whicheverisearliesttooccur.

Committees of our Board of Directors

Asofthetimeimmediatelyfollowingthepricingofthisoffering,thestandingcommitteesofourboardofdirectorswillconsistofanauditcommittee,acompensationcommitteeandanominatingandcorporategovernancecommittee.Ourboardofdirectorsmayalsoestablishfromtimetotimeanyothercommitteesthatitdeemsnecessaryordesirable.

OurPresidentandChiefExecutiveOfficerandotherexecutiveofficerswillregularlyreporttothenon-executivedirectorsandtheauditcommittee,thecompensationcommitteeandthenominatingandcorporategovernancecommitteetoensureeffectiveandefficientoversightofouractivitiesandtoassistinproperriskmanagementandtheongoingevaluationofmanagementcontrols.Webelievethattheleadershipstructureofourboardofdirectorsprovidesappropriateriskoversightofouractivities.

Audit Committee

Asofthetimeimmediatelyfollowingthepricingofthisoffering,ourauditcommitteewillconsistofGregoryHewett,StevenTishmanandSeanSullivan,whowillserveaschair.UnderNYSElistingstandardsandapplicableSECrules,wearerequiredtohavethreemembersoftheauditcommittee.Subjecttophase-inrules,theNYSEandRule10A-3oftheExchangeActrequirethattheauditcommitteeofalistedcompanybecomprisedsolelyofindependentdirectors.GregoryHewett,StevenTishmanandSeanSullivanqualifyasindependentdirectorsunderNYSElistingstandardsandtheindependencerequirementsofRule10A-3oftheExchangeAct.Inaddition,ourboardofdirectorshasdeterminedthateachofGregoryHewett,StevenTishmanandSeanSullivanisanauditcommitteefinancialexpertwithinthemeaningofItem407(d)ofRegulationS-KundertheSecuritiesAct.

ThepurposeoftheauditcommitteewillbetopreparetheauditcommitteereportrequiredbytheSECtobeincludedinourproxystatementandtoassistourboardofdirectorsinoverseeing:

• thequalityandintegrityofourfinancialstatements;

• ourcompliancewithlegalandregulatoryrequirements;

• ourindependentregisteredpublicaccountingfirm'squalifications,performanceandindependence;and

• theperformanceofourinternalauditfunction.

Ourboardofdirectorswilladoptawrittencharterfortheauditcommittee,whichwillbeavailableonourwebsiteupontheclosingofthisoffering.

TableofContents

Compensation Committee

Asofthetimeimmediatelyfollowingthepricingofthisoffering,ourcompensationcommitteewillconsistofGregoryHewett,ChristopherMetzandJenniferEstabrook,whowillserveaschair.EachmemberofourcompensationcommitteemeetstherequirementsforindependenceunderNYSElistingstandardsandSECrulesandregulations.EachofGregoryHewettandChristopherMetzisanon-employeedirector,asdefinedpursuanttoRule16b-3promulgatedundertheExchangeActandeachmemberofourcompensationcommitteeisanoutsidedirector,asdefinedpursuanttoSection162(m)oftheCode.

Thepurposeofthecompensationcommitteeistoassistourboardofdirectorsindischargingitsresponsibilitiesrelatingto:

• settingcompensationofourexecutiveofficersanddirectors;

• monitoringourincentiveandequity-basedcompensationplans;and

• preparingthecompensationcommitteereportrequiredtobeincludedinourproxystatementundertherulesandregulationsoftheSEC.

Thecompensationcommitteeshallbedirectlyresponsiblefortheappointment,compensationandoversightofanycompensationconsultant,legaladvisororotheradvisorretainedbythecompensationcommittee.Ourboardofdirectorswilladoptawrittencharterforthecompensationcommittee,whichwillbeavailableonourwebsiteupontheclosingofthisoffering.

Nominating and Corporate Governance Committee

Asofthetimeimmediatelyfollowingthepricingofthisoffering,ournominatingandcorporategovernancecommitteewillconsistofJenniferEstabrook,NormanWesleyandDavidValcourt,whowillserveaschair.EachmemberofournominatingandcorporategovernancecommitteemeetstherequirementsforindependenceunderNYSElistingstandardsandSECrulesandregulations.

Thepurposeofthenominatingandcorporategovernancecommitteeisto,amongotherthings:

• identifyindividualsqualifiedtobecomedirectors,consistentwiththecriteriaapprovedbyourboardofdirectorsandselect,orrecommendthatourboardofdirectorsselect,thedirectornomineesforthenextannualmeetingofshareholdersortofillvacanciesornewlycreateddirectorshipsthatmayoccurbetweensuchmeetings;

• developandrecommendtoourboardofdirectorsasetofcorporategovernanceprinciplesapplicabletous;

• overseetheevaluationofourboardofdirectorsandmanagement;

• recommendmembersofourboardofdirectorstoserveoncommitteesofourboardofdirectorsandevaluatetheoperationsandperformanceofsuchcommittees;

• overseeandapprovethemanagementcontinuityplanningprocess;and

• otherwisetakealeadershiproleinshapingourcorporategovernance.

Ourboardofdirectorswilladoptawrittencharterforthenominatingandcorporategovernancecommittee,whichwillbeavailableonourwebsiteupontheclosingofthisoffering.

DirectorIndependence

Ourboardofdirectorshasdeterminedthat,underNYSElistingstandardsandtakingintoaccountanyapplicablecommitteestandardsandrulesundertheExchangeAct,JenniferEstabrook,Gregory

TableofContents

Hewett,ChristopherMetz,SeanSullivan,StevenTishman,DavidValcourtandNormanWesleyareindependentdirectors.

CodeofBusinessConductandEthics

Wewilladoptanewcodeofbusinessconductandethicsthatappliestoallofourdirectors,officersandemployees,includingourprincipalexecutiveofficer,ourprincipalfinancialofficerandourprincipalaccountingofficer.Ourcodeofethicsandbusinessconductwillbeavailableonourwebsiteupontheclosingofthisoffering.Ourcodeofethicsandbusinessconductisa"codeofethics,"asdefinedinItem406(b)ofRegulationS-K.Wewillmakeanylegallyrequireddisclosuresregardingamendmentsto,orwaiversof,provisionsofourcodeofethicsonourwebsite.

IndemnificationofOfficersandDirectors

OuramendedandrestatedcertificateofincorporationandamendedandrestatedbylawsprovidethatwewillindemnifyourdirectorsandofficerstothefullestextentpermittedbytheDelawareGeneralCorporationLaw,ortheDGCL.Wehaveestablisheddirectors'andofficers'liabilityinsurancethatinsuressuchpersonsagainstthecostsofdefense,settlementorpaymentofajudgmentundercertaincircumstances.

Ouramendedandrestatedcertificateofincorporationprovidesthatourdirectorswillnotbeliableformonetarydamagesforbreachoffiduciaryduty,exceptforliabilityrelatingtoanybreachofthedirector'sdutyofloyalty,actsoromissionsnotingoodfaithorwhichinvolveintentionalmisconductoraknowingviolationoflaw,violationsunderSection174oftheDGCLoranytransactionfromwhichthedirectorderivedanimproperpersonalbenefit.

TableofContents

EXECUTIVECOMPENSATION

Unless we state otherwise or the context otherwise requires, in this Executive Compensation section the terms "Acushnet," "we," "us," "our" and the"Company" refer to Acushnet Company, a direct and wholly-owned subsidiary of Acushnet Holdings Corp., for the period up to this offering, and for all periodsfollowing this offering, to Acushnet Holdings Corp.

CompensationDiscussionandAnalysis

Introduction

ThisCompensationDiscussionandAnalysisisdesignedtoexplainourcompensationphilosophyanddescribethedecisionsmadewithrespecttothefiscal2015compensationforeachofourPresidentandChiefExecutiveOfficer,ourExecutiveVicePresident,ChiefFinancialOfficerandTreasurerandthethreeothermosthighlycompensatedexecutiveofficerswhowereservingassuchasofDecember31,2015.Thesefiveexecutivesarereferredtoasournamedexecutiveofficers:

Mr.BurkewaspromotedfromSeniorVicePresident,ChiefFinancialOfficerandTreasurertoExecutiveVicePresident,ChiefFinancialOfficerandTreasureronApril29,2016.Mr.BellisretiredfromtheCompanyeffectiveFebruary29,2016.Mr.ConnorisexpectedtoretireeffectiveDecember31,2016.Mr.YoonservedasPresidentofAcushnetHoldingsCorp.untilMay11,2016whenMr.Uihlein,thePresidentandChiefExecutiveOfficerofAcushnetCompany,wasappointedPresidentandChiefExecutiveOfficerofAcushnetHoldingsCorp.

Executive Compensation Governance Practices and Principles

Ourexecutivecompensationprogram,similartoournon-executivecompensationprograms,isalignedwithourbusinessstrategyandculture.Thekeyprioritiesofourexecutivecompensationprogramaretoattract,motivateandretainworldclasstalenttodrivethesuccessofourCompanyandsupportandstewardtwoofthemostreveredbrandsingolf,TitleistandFootJoy.Wehavedesignedourexecutivecompensationprogramtoalignthecompensationactuallyearnedbyournamedexecutiveofficerswithourperformancebycompetitivelyrewardinggoodperformanceandmoreaggressivelyrewardingoutperformance.

Ourobjectiveistoprovideanopportunityfortotaldirectcompensation(consistingofbasesalary,annualincentivecompensationandlong-termincentivecompensation)that:

• alignstheinterestsofmanagementwiththoseofourshareholders;

• attracts,retainsandmotivatesexecutivetalentbyprovidingcompetitivelevelsofsalaryandtotaldirectcompensation;

• providesincentivecompensationthatpromotesdesiredbehaviorwithoutencouragingunnecessaryandexcessiverisk;and

• motivatesandrewardsexecutivesforoutperformancewhencomparedtothemarket.

Name TitleWalter(Wally)Uihlein PresidentandChiefExecutiveOfficerWilliamBurke ExecutiveVicePresident,ChiefFinancialOfficerandTreasurerGeraldBellis President,TitleistGolfBallsJamesConnor President,FootJoyYoonSoo(Gene)Yoon ChairmanoftheboardofdirectorsofAcushnetCompany

ChairmanoftheboardofdirectorsofAcushnetHoldingsCorp.PresidentofAcushnetHoldingsCorp.

TableofContents

Indevelopingappropriateexecutivecompensationprograms,wearegenerallyguidedbythefollowingprinciples:

• Compensationlevelsshouldbesufficientlycompetitivetoattractandretaintheexecutivetalentneeded.

TheCompany'soverallcompensationlevelsaretargetedtoattractthemanagementtalentneededtoachieveandmaintainaleadershippositioninthemarketswheretheCompanycompetes.TheCompanydoesnotformulaicallytargetorpositionexecutivecompensationataspecificpercentilerelativetomarketdatabutseekstosetcompensationatacompetitivelevelwithintheindustry.

• AsignificantportionoftotalcompensationshouldberelatedtoCompanyperformance.

TheCompany'sannualincentiveandlong-termincentivecompensationelementsrepresentasignificantpercentageofeachofthenamedexecutiveofficer'scompensationandaretieddirectlytocorporateperformance.UndertheCompany'splans,performanceabovetargetedgoalsgenerallyresultsincompensationabovetargetedlevels,andperformancebelowtargetedgoalsgenerallyresultsincompensationbelowtargetedlevels.

• Compensationshouldreflectpositionandresponsibility,andincentivecompensationshouldbeagreaterproportionoftotalcompensationformoreseniorpositions.

Totalcompensationshouldgenerallyincreasewithpositionandresponsibility.Atthesametime,agreaterpercentageoftotalcompensationshouldbetiedtocorporateperformance,andthereforeatrisk,aspositionandresponsibilityincreases.Accordingly,individualswithgreaterrolesandresponsibilityforachievingtheCompany'sperformancegoalsbearagreaterproportionoftheriskthatthosegoalsarenotachievedandreceiveagreaterproportionoftherewardifthosegoalsaremetorsurpassed.

• Incentivecompensationshouldstrikeabalancebetweenshort-termandlong-termperformance.

TheCompany'scompensationplansfocusmanagementonachievingstrongannualperformanceinamannerthatsupportstheCompany'slong-termsuccessandprofitability.Accordingly,theCompanyusesbothannualincentivesandlong-termincentives.Inaddition,theCompany'scompensationplansaredesignedtorewardexecutivesbasedontheachievementofcorporate-widegoalsratherthanindividualbusinessunitperformancetoencouragedecisionmakingbasedonwhatisinthebestinterestsoftheCompanyasawholeratherthananyparticularbusinessunit.

Role of the Board and Compensation Committee in Compensation Decisions

HistoricallytheboardofdirectorsofAcushnetCompany,afterreceivinginputfromtheCompany'sPresidentandChiefExecutiveOfficerandExecutiveVicePresident,ChiefHumanResourcesOfficer,hasapprovedthelevelofbasesalariesandshort-termandlong-termincentives,includingstock-basedawards,forthenamedexecutiveofficersaswellasanyothercompensationprograms,arrangementsandagreementsapplicabletothenamedexecutiveofficers.BeginninginJuly2014,acompensationcommitteeoftheboardofdirectorsofAcushnetCompany(the"CompensationCommittee")wasformedtoconsidercertaincompensationmatterswithinputfromtheCompany'sPresidentandChiefExecutiveOfficerandExecutiveVicePresident,ChiefHumanResourcesOfficer.

Followingthisoffering,itisexpectedthattheboardofdirectorsofAcushnetHoldingsCorp.willestablishacompensationcommittee(the"HoldingsCompensationCommittee")andwilldelegatetotheHoldingsCompensationCommitteesimilarresponsibilitiesandoversightwithrespecttotheCompany'scompensationprograms.ItisanticipatedthattheHoldingsCompensationCommitteewillestablishasimilarexecutivecompensationphilosophywithrespecttoournamedexecutiveofficersand

TableofContents

implementcompensationprogramsthatreflectanoverarchingbusinessrationaleandaredesignedtobereasonable,fair,fullydisclosed,andconsistentlyalignedwithlong-termvaluecreation.

Additionalinformationconcerningtheseresponsibilitiesissetforthin"Management—BoardLeadershipStructureandtheBoard'sRoleinRiskOversight—CompensationCommittee."

Resources Guiding Compensation Decisions

Executiveofficercompensationfor2015wassetusingthefollowingreferences:

Somereferencesweregivenmoreweightthanothersdependingonthenatureofthedecisionbeingmade.

MostoftheCompany'smajorcompetitorsarenotstand-alonepublicgolfcompanies;rather,theyarepartoflargercorporateconglomeratesand/orareprivatelyowned.Thus,itisdifficulttoobtainmeaningfulspecificcomparativedataontheirgolfbusinesses.Inaddition,theCompanyoftencompetesforexecutivetalentwithcorporationsoutsidethegolfindustry.Accordingly,withrespecttocompensationdecisionsfor2015,generallyavailableinformationregardingexecutivecompensationlevelsforexecutivesinsimilarpositionsinotherindustrieswasalsoconsidered.

Beginningwithcompensationdecisionsfor2016,theCompensationCommitteehasengagedPearlMeyerasitsindependentoutsidecompensationconsultanttoprovideadviceaboutwhethertheCompany'sexecutivecompensationprogramsaregenerallyconsistentwiththeCompany'sguidingprinciplesandcontinuetobealignedwithshareholderinterestsandwithevolvingbestpractices.PearlMeyerrepresentativesreportdirectlytotheCompensationCommitteeandhaveassistedtheCompensationCommitteeinanassessmentofcomparativemarketdataandcompensationtrendsrelevanttothesettingoftheCompany'scompensationlevelsfor2016andbeyond.PartofthisassessmentincludedcomparingthetotaltargeteddirectcompensationoftheCompany'snamedexecutiveofficerstomarketreferenceinformation,including,whenappropriate,broadindustrysurveydata,andthedevelopmentofacompensationcomparisongroup.Thecompensationcomparisongroupiscomprisedof15companiesandwasrecommendedbyPearlMeyer.Thecorporationsthatcomprisethecompensationcomparisongroupareasfollows:

Itisexpectedthatthecompensationcomparisongroupwillbereviewedperiodicallyaswarrantedandrevisedasappropriatetoensurethatthecorporationsinthegroupcontinuetobeareasonablecomparisonforcompensationpurposes.

Components of the 2015 Executive Compensation Program

The2015executivecompensationprogramconsistsofdirectcompensationcomprisedoffollowingelements:basesalary,annualandlong-termcashincentivesandanequityappreciationrights("EARs")plan(asamendedfromtimetotime,the"EARPlan").Eachelement,whichisfurtherdiscussedbelow,isintendedtorewardandmotivateexecutivesindifferentwaysconsistentwiththeCompany's

InternalReferences ExternalReferences• Historicalcompanyperformance • Directcompetitorpaydata• Businessstrategyandoutlook • Industry/broadermarketpaydata• Positioncriticalityanddemand • Performancecomparedtocompetitors/market • Compensationpracticesofoutperformanceinother

industries

CallawayGolfCompany HelenofTroy Quiksilver,Inc. Crocs,Inc. KateSpade&Co SkechersUSA,Inc. ColumbiaSportswearCompanies La-Z-Boy SteveMadden DeckersOutdoorCorporation LululemonAthletica TempurSealyInternational G-IIIApparelGroup PerformanceSportsGroupLtd. WolverineWorldwide

TableofContents

overallguidingprinciplesforcompensation(asdescribedabove).Theamountoftotaldirectcompensationintendedtocomefromeachelementvarieswithpositionandlevelofresponsibility,reflectingtheprinciplesthattotalcompensationshouldincreasewithpositionandresponsibilityandagreaterpercentageofanexecutive'scompensationshouldbetiedtocorporateperformance,andthereforebeatrisk,aspositionandresponsibilityincrease.

ElementofPay Summary PurposeBaseSalary üFixedcompensationprovidedto

employeesforserviceinrole üProvideasecureformofincomeforemployees

AnnualCashIncentiveüPlanAdjustedEBITDA(1)basedincentiveplan

üIncentivizeachievementoftheannualoperatingplan

LongTermCashIncentivePlan("LTIP")üOne-year,cashbasedlong-termincentiveplanforeachofMr.UihleinandMr.YoonbasedonPlanAdjustedEBITDAperformanceversusgoals

üTwo-year,cashbasedlong-termincentiveplanforMessrs.Burke,BellisandConnorbasedonPlanAdjustedEBITDAperformanceversusgoals

üPromoteconsistentPlanAdjustedEBITDAperformanceoverperformanceperiod

EARsüTime-and-performancevestingequity-basedawards

üAlignmanagementwithinvestorinterests

üRepresentsarighttoshareintheappreciationinthevalueoftheCompanyfromthedateofgrantuntilpayoutdate

üParticipantEARpayoutvaluespredicatedonincreaseinthevalueoftheCompany,aswellasmulti-yearPlanAdjustedEBITDAgoalsand,forcertainEARawards,investorinternalrateofreturn("IRR")levels.

OtherüTheCompanyprovideslimitedperquisiteswhichmayincludeannuallifeinsurancepremiums,thereimbursementofcountryclubdues,financialplanning,a401(k)Planparticipantmatchandsportingequipmentandapparel.

üTheCompanyprovidesataxgross-upforMr.UihleinwithregardtoCompanycontributionstofundhissupplementalretirementplan.

üEnhanceproductivityandencouragework/lifebalance.

(1) "PlanAdjustedEBITDA"representsincomefromoperationsofAcushnetCompanyanditssubsidiariesplusdepreciationandamortization,expensesrelatingtoourEARPlan,share-basedcompensationexpenses,restructuringcharges,certaintransactionfees,andcertainforeigncurrencyadjustments,lessnetincomerelatingtoanoncontrollinginterestinoneofAcushnetCompany'sconsolidatedentities.PlanAdjustedEBITDAisutilizedastheperformancemetricfortheannualcashincentiveawardsandLTIPawardstothenamedexecutiveofficersandasoneoftheperformancemetricsfortheEARsasitservestoaligntheinterestsoftheCompany'snamedexecutiveofficerswiththeinterestsofitsshareholdersandincentivizethenamedexecutiveofficerstoachievecorporategoalsinthecontextoftheCompany'soverallcorporatestrategy.PlanAdjustedEBITDAisnotameasureoffinancial

TableofContents

ThefollowingtableprovidesareconciliationofincomefromoperationsofAcushnetCompanytoPlanAdjustedEBITDAfortheyearendedDecember31,2015.TheinformationpresentedbelowisderivedfromtheauditedconsolidatedfinancialstatementsofAcushnetCompanythatarenotincludedinthisprospectus.

ConsistentwiththeCompany'scompensationphilosophy,the2015executivecompensationprogramincorporatedabalancebetweenguaranteedandat-riskcompensation.Setforthbelowisananalysisofeachoftheelementsofthe2015executivecompensationprogram.Moredetailedinformationconcerningthecompensationpaidtothenamedexecutiveofficersfor2015issetforthinthecompensationtablesandrelatedfootnotesandnarrativedisclosurefollowingthisCompensationDiscussionandAnalysis.

Analysis of Base Salary

Basesalariesserveastheguaranteedcashportionofexecutivecompensation.Basesalaryisintendedtocompensateeachnamedexecutiveofficerforperforminghisjobresponsibilitiesonaday-to-daybasis.Eachnamedexecutiveofficer'sbasesalarywasinitiallyestablishedwhenhebecameanexecutiveofficerandissetatacompetitivelevelbaseduponthenamedexecutiveofficer's

performanceunderGAAP.ItshouldnotbeconsideredanalternativetoincomefromoperationsofAcushnetCompany,asameasureofoperatingperformanceoranyothermeasureofperformancederivedinaccordancewithGAAP.

Yearended

December31,2015 (inthousands) Incomefromoperations $ 117,583Depreciationandamortization 41,702EARPlan(a) 45,814Share-basedcompensation(b) 5,789Restructuringcharges(c) 1,643Transactionfees(d) 2,141Foreigncurrencyreclassification 859Netincomeattributabletononcontrollinginterests(e) (5,122)

PlanAdjustedEBITDA $ 210,409

(a) ReflectsexpensesrelatedtotheanticipatedfullvestingofEARsgrantedunderourEARPlanandtheremeasurementtotheirintrinsicvalueateachreportingperiodbasedonthethen-currentprojectionofourcommonstockequivalentvalue.TheEARPlanexpiresonDecember31,2016andamountsearnedundertheEARPlanmustbepaidwithintwoandahalfmonthsaftertheexpirationdate.

(b) ReflectscompensationexpenseassociatedwiththeexerciseofsubstitutestockoptionsbyanexecutivewhichweregrantedinconnectionwiththeAcquisition.Allsuchstockoptionshavebeenexercised.

(c) Reflectsrestructuringchargesincurredinconnectionwiththereorganizationofcertainofouroperations.

(d) Reflectslegalfeesincurredin2015relatingtoadisputearisingfromtheindemnificationobligationsowedtousbyBeaminconnectionwiththeAcquisitionaswellascertainfeesandexpensesweincurredinconnectionwiththisoffering.

(e) ReflectsthenetincomeattributabletotheinterestthatwedonotowninourFootJoygolfshoejointventure.

TableofContents

experience,position,andresponsibility.Insettingthebasesalary,thecomplexityofthejobrequirementsandperformanceexpectationsandthegeneralmarketdatadescribedareconsideredaswellaseachnamedexecutiveofficer'sbasesalaryrelativetotheotherexecutiveofficers.Followingthisoffering,itisexpectedthatHoldingsCompensationCommitteewillreviewbasesalariesannuallyandmakeadjustmentsasappropriateinlightofindividualperformanceaswellasanychangesinnatureorscopeofanamedexecutiveofficer'sdutiesand/orthecompetitivemarketplace.

Thebasesalaryforeachofthenamedexecutiveofficersduring2015wasasfollows:

In2015,eachofthenamedexecutiveofficerslistedabovereceivedabasesalaryincreaseofthreepercentfromtheprioryear.Thesemeritincreasesweremadeafterareviewofindividualperformanceandrelevantmarketdataandasareflectionofthenamedexecutiveofficer'sindividualperformance.

Analysis of Annual Cash Incentives

Inadditiontoabasesalary,theCompany'sexecutivecompensationprogramincludestheopportunitytoearnanannualcashincentive.Theannualcashincentiveservesastheshort-termincentivecompensationelementoftheexecutivecompensationprogram.Asnotedabove,theannualcashincentivepaymentisbasedupontheCompany'sPlanAdjustedEBITDAachievedforthefiscalyearandisintendedtoprovideanincentiveforanamedexecutiveofficertodriveahighlevelofcorporateperformancewithoutexcessiverisk-taking.

Annual Cash Incentive Opportunity. For2015,thetargetincentiveforeachofthenamedexecutiveofficersrepresentedapercentageofthenamedexecutiveofficer'sbasesalary(the"incentivetarget")whichthenamedexecutiveofficercouldearnbasedontheamountofPlanAdjustedEBITDAearnedbytheCompanyfor2015.Incentivepayoutsforeachnamedexecutiveofficerundertheprogramwouldvaryfrom0%oftheincentivetarget,iftheCompanyearnedPlanAdjustedEBITDAof$183millionorlessin2015,toamaximumof200%oftheincentivetarget,iftheCompanyearnedPlanAdjustedEBITDAof$215millionormorein2015.InsettingthelevelofthePlanAdjustedEBITDAperformancegoalfor2015,theCompany'sperformancein2014,theCompany's2015operationalgoalsandthecompetitiveclimateinthemarketplacewereeachtakenintoaccount.Thetargetedincentiveamountswerebasedoneachnamedexecutiveofficer'spositionandweresettobegenerallyconsistentwiththerangeoftotaldirectcompensationtargetedforeachofthenamedexecutiveofficers.

Incentivetargetsfor2015foreachofthenamedexecutiveofficerswereasfollows:

Name 2015

BaseSalary WallyUihlein $ 995,200WilliamBurke $ 401,100GeraldBellis $ 537,700JamesConnor $ 487,100GeneYoon $ 1,092,900

Targeted%of

BaseSalary BaseSalary IncentiveTarget

WallyUihlein 75%$ 995,200 $ 746,400WilliamBurke 50%$ 401,100 $ 200,550GeraldBellis 50%$ 537,700 $ 268,850JamesConnor 50%$ 487,100 $ 243,550GeneYoon 75%$ 1,092,900 $ 819,675

TableofContents

Actual 2015 Annual Cash Incentive Payout. For2015theCompanyachievedPlanAdjustedEBITDAof$210millionwhichresultedinanachievementlevelof170%oftheincentivetargetforeachofthenamedexecutiveofficers.

Analysis of Long-Term Incentives (LTIP and EAR)

ConsistentwiththephilosophyofaligningexecutivecompensationwiththeCompany'slong-termperformance(asdiscussedabove),inadditiontotheannualcashincentiveopportunity,wehavegrantedperformance-basedawardstoeachofthenamedexecutiveofficersunderourLTIP.Inaddition,inconnectionwiththe2011saleoftheCompanybyBeam,weadoptedtheEARPlanwhichexpiresonDecember31,2016.Theselong-termincentiveswereselectedtomotivatethenamedexecutiveofficertoremainwiththeCompany,increaseshareholdervaluethroughtheachievementoftargetedlong-termoperatingperformanceandaligntheinterestsoftheCompany'snamedexecutiveofficerswiththeinterestsoftheCompany'sshareholders.

2014-2015 and 2015-2016 LTIP Awards. The2014-2015long-termincentiveplan("2014-2015LTIP")andthe2015-2016long-termincentiveplan("2015-2016LTIP"),inwhichMessrs.Burke,BellisandConnorparticipate,providecashpaymentsupontheachievementofspecifiedPlanAdjustedEBITDAgoalsovertwo-yearperformanceperiodsendingDecember31,2015andDecember31,2016,respectively.PlanAdjustedEBITDAiscalculatedas,andwasselectedforthereasons,describedaboveunder"Componentsofthe2015ExecutiveCompensationProgram."Atwo-yearperformanceperiodwasselectedbecauseitisconsistentwiththeCompany'stwo-yearproductintroductioncycle.See"Business—ProductLifeCycles."

Undereachofthe2014-2015LTIPand2015-2016LTIP,atthebeginningofeachperformanceperiod,participantsareawardedperformanceunits.TheactualvalueofeachperformanceunitisdeterminedattheendoftheperformanceperiodbasedontheCompany'sfinancialperformancecomparedtothePlanAdjustedEBITDAperformancegoals.Forthe2014-2015LTIP,theperformanceunitswouldhavenovalue($0perunit)unlesscumulativetwo-yearPlanAdjustedEBITDAwasatleast$366millionandwouldachievemaximumvalue($1,000perunit)iftwo-yearcumulativePlanAdjustedEBITDAwasatleast$415million.Forthe2015-2016LTIP,theperformanceunitswouldhavenovalue($0perunit)unlesscumulativetwo-yearPlanAdjustedEBITDAwasatleast$370millionandwouldachievemaximumvalue($1,000perunit)iftwo-yearcumulativePlanAdjustedEBITDAwasatleast$435million.

Indeterminingthenumberofunitstoawardtoeachoftheparticipants,thevalueoftheanticipatedLTIPawardsrelativetoapplicablebroadmarketcompensationdatawasconsidered.ConsiderationwasalsogiventotheeffecttheLTIPawardwouldhaveupontheexecutive'stotaldirectcompensationandthenamedexecutiveofficer'spositionandresponsibility.LTIPawardsarepaidfromtheCompany'sgeneralassetsassoonaspracticableaftertheendoftheperformanceperiodandaftertheverificationofachievementoftheperformancegoals.

Name IncentiveTarget

AchievementLevel

IncentivePayout(1)

WallyUihlein $ 746,400 170%$ 1,268,900WilliamBurke $ 200,550 170%$ 341,000GeraldBellis $ 268,850 170%$ 457,100JamesConnor $ 243,550 170%$ 414,100GeneYoon $ 819,675 170%$ 1,393,500

(1) Awardsareroundeduptothenearesthundred.

TableofContents

Messrs.Burke,BellisandConnorreceivedthefollowingnumberofperformanceunits(withthecorrespondingmaximumvaluesbasedonamaximumvalueof$1,000perunit)foreachofthe2014-2015LTIPandthe2015-2016LTIP:

TheCompanyearnedcumulativetwo-yearPlanAdjustedEBITDAof$410millionfor2014-2015LTIPperformanceperiod.Actualpayoutunderthe2014-2015LTIPwasthereforeat90.6%ofthemaximumvalue,or$906perperformanceunit.Thepayoutunderthe2015-2016LTIPwillbedeterminedfollowingtheconclusionoftheperformanceperiodasofDecember31,2016.

2015 Special LTIP Award. In2015,eachofMr.UihleinandMr.YoonparticipatedinamodifiedLTIPplan(the"2015SpecialLTIP")whichoperatessimilarlytothe2015-2016LTIPfortheothernamedexecutiveofficersbuthadaone-yearperformanceperiodendingonDecember31,2015.Underthe2015SpecialLTIPeachofMr.UihleinandMr.Yoonwasawarded(1)2,800performanceunitswithafixedpayoutvalueof$400perunitand(2)750performanceunitswhichwouldhavenovalue($0perunit)unlesstheCompanyearnedPlanAdjustedEBITDAfor2015ofatleast$183millionandwouldachievemaximumvalue($1,000perunit)iftheCompanyearnedPlanAdjustedEBITDAfor2015ofatleast$215million.

TheCompanyearnedPlanAdjustedEBITDAof$210millionin2015whichresultedinapayouttoeachofMr.UihleinandMr.Yoonof(1)2,800performanceunitsat$400perunit($1,120,000)and(2)750performanceunitsat$850perperformanceunit($637,500)or85%ofmaximumvalue.NoLTIPisexpectedtobeawardedtoMr.UihleinorMr.Yoonwithrespectto2016.

EARs. InadditiontotheLTIPawards,in2011theCompanygrantedthenamedexecutiveofficersEARswhichconsistofcommonstockequivalentsundertheEARPlan.TheEARPlanisdesignedtoallowkeyemployeestoparticipateinthefuturesuccessandgrowthoftheCompany,asEARsareintendedtorepresenttheappreciationinthevalueofashareofAcushnetHoldingsCorp.commonstockmeasuredfromthegrantdatethroughtheapplicablepayoutevent(asdescribedbelow).

Vesting of the EARs. ExceptforMr.Uihlein'sandMr.Yoon'ssecondgrantofEARsasdescribedbelow,theEARsaredividedintothreeseparatetrancheswhichgenerallyvestedoverafour-yearperiodbasedoneither(1)thepassageoftime,(2)PlanAdjustedEBITDAperformanceor(3)aspecifiedIRR(asdefinedandcalculatedinaccordancewiththeEARPlanandtheapplicableawardagreement),ineachcasegenerallysubjecttothenamedexecutiveofficer'scontinuedemploymentwiththeCompanyontherelevantvestingdate,asfollows:

• fortypercent(40%)oftheEARstimevestedinfourequalinstallmentsoneachofDecember31,2012,December31,2013,December31,2014andDecember31,2015;

• thirtypercent(30%)oftheEARsvestedinfourequalinstallmentsoneachofDecember31,2012,December31,2013,December31,2014andDecember31,2015basedontheachievementofanannualPlanAdjustedEBITDAperformancegoalfortheapplicablevestingperiod,whichwasachievedforeachvestingperiod;

• thirtypercent(30%)oftheEARsvestedbasedonachievementofspecifiedIRRthresholdsfortheperiodbeginningJuly29,2011andendingonDecember31,2015,whichwasachievedatthemaximumvestinglevel.

Inaddition,eachofMr.UihleinandMr.YoonreceivedasecondgrantofEARswhichvestedinfourequalinstallmentsoneachofDecember31,2012,December31,2013,December31,2014and

Name LTIPUnits

LTIPAward

MaximumValue WilliamBurke 300 $ 300,000GeraldBellis 400 $ 400,000JamesConnor 350 $ 350,000

TableofContents

December31,2015basedontheachievementofanannualPlanAdjustedEBITDAperformancegoalfortheapplicablevestingperiod,whichwasachievedforeachvestingperiod.

Payout of the EARs. Shortlyaftertheoccurrenceofaspecified"payoutevent,"theCompanywillpaythenamedexecutiveofficerthepayoutvalueoftheEARsasdescribedbelow.Generally,a"payoutevent"isdefinedasthefirsttooccurof(1)anamedexecutiveofficer's"separationfromservice"(underSection409AoftheCode)otherthanforcause(a"qualifyingtermination"),(2)thesaleoftheCompanyor(3)theexpirationoftheEARPlanonDecember31,2016(the"expirationdate").ThepayoutvalueforeachEARwillbethepositiveexcess(ifany)ofthevalueofthevestedEARsasofthedateofpayouteventlessthevalueoftheEARonthedateofgrant(whichis$11.12perEAR,asadjustedfollowingthestocksplit).ThevalueofeachEARasofthedateofthepayouteventisdeterminedasfollows:

• Iftheapplicablepayouteventisaqualifyingtermination,(x)priortoanIPO,thevalueofeachEARisdeterminedbydividing(1)anenterprisevalue(asdefinedintheEARPlan)generallybasedontheCompany'sPlanAdjustedEBITDAfortheapplicablefiscalyearby(2)thenumberofsharesofAcushnetHoldingsCorp.commonstockoutstanding,onafullydilutedbasis,asofthedateofthequalifyingtermination;and(y)afteranIPO,thevalueofeachEARisthegreaterof(1)theaveragepershareclosingpriceofthepubliclytradedcommonstockforthefirstfullthreetradingdaysfollowingthepricingofthecommonstockintheIPOor(2)thevalueobtainedbydividing(x)anenterprisevalue(asdefinedintheEARPlan)generallybasedontheCompany'sPlanAdjustedEBITDAfortheapplicablefiscalyearby(y)thenumberofsharesofAcushnetHoldingsCorp.commonstockoutstanding,onafullydilutedbasis,asofthedateofthequalifyingtermination.

• IftheapplicablepayouteventisasaleoftheCompany,thevalueofeachEARisthegreaterof(1)anamountdeterminedbyourboardofdirectorsingoodfaithbasedonthetransactionconsiderationand(2)thevalueobtainedbydividing(x)anenterprisevalue(asdefinedintheEARPlan)generallybasedontheCompany'sPlanAdjustedEBITDAfortheprecedingtwelvemonthsby(y)thenumberofsharesofAcushnetHoldingsCorp.commonstockoutstanding,onafullydilutedbasis,asofthedateofthesaletransaction.

• Iftheapplicablepayouteventistheexpirationdate,thevalueofeachEARisthegreatestof(1)anenterprisevalue(asdefinedintheEARPlan)generallybasedontheCompany'sPlanAdjustedEBITDAforfiscal2015dividedbythenumberofsharesofAcushnetHoldingsCorp.commonstockoutstanding,onafullydilutedbasis,asofDecember31,2015;(2)anenterprisevalue(asdefinedintheEARPlan)generallybasedontheCompany'sPlanAdjustedEBITDAforfiscal2016dividedbythenumberofsharesofAcushnetHoldingsCorp.commonstockoutstanding,onafullydilutedbasis,asofDecember31,2016;and(3)ifanIPOhasoccurredpriortotheexpirationdate,avaluebasedontheaveragepershareclosingpriceofthepubliclytradedcommonstockforthefirstfullthreetradingdaysfollowingthepricingofcommonstockintheIPO.

TheamountsduetothenamedexecutiveofficerfortheEARswillbepaidtotheexecutiveincash,or,iftheapplicablepayouteventfollowsanIPO,theCompanymay,initssolediscretion,payupto50%ofthepayoutamountinthepubliclytradedequitysecuritieswiththeremainderincash.

See"OutstandingEquityAwardsasofDecember31,2015"forinformationaboutthenumberofEARsheldbyeachofthenamedexecutiveofficersasofDecember31,2015and"PotentialPaymentsUponTerminationorChangeinControl"forthepayoutvalueoftheEARsasofDecember31,2015.See"EquityCompensationPlans—SummaryofourEARPlan"foradditionaldetailregardingtheEARPlanandtheEARs.

TableofContents

Benefits and Perquisites

Thenamedexecutiveofficersreceivevariousbenefitsinordertoenhancetheirproductivity,provideforhealthcareneedsandencouragework/lifebalance.TheCompany'sprimarybenefitsforthenamedexecutiveofficersincludetheCompany'shealth,dentalandvisionplans,andvariousinsuranceplans,includinglife,long-termdisability,andaccidentaldeathanddismembermentinsurance,aswellaspaidtimeoff.TheCompanycoversthecostsoftaxandestateplanningfees,and,consistentwiththeCompany'spositionasaleaderinthegolfindustry,thenamedexecutiveofficersotherthanMr.Yoonreceivesubsidizedcountryclubmemberships.EachofthenamedexecutiveofficersalsoreceivesalimitedamountoftheCompany'sgolfequipment,gearandwear.

Inaddition,theCompanyprovidesMr.Uihleinwithatax-grossuptocoverthetaxesduebyMr.UihleinwithrespecttotheCompany'scontributiontohissupplementalretirementplantrust.

TheCompanyfromtimetotimeprovidesotherbenefitstoemployeesorofficersasagrouportoanindividualofficeraswarranted.Seethe"SummaryCompensationTable"andrelatedfootnotesbelowforadditionalinformationaboutthevalueofbenefitsandperquisitesprovidedtoournamedexecutiveofficersin2015.

Retirement Plans

TheCompanyhasaqualifieddefinedbenefitpensionplan,anonqualifieddefinedbenefitpensionplan,aqualifieddefinedcontributionplanandpost-employmentwelfareplanswhichprovideforpaymentofretirementbenefitstoparticipantsmainlycommencingbetweentheagesof50and65,andforpaymentofcertaindisabilitybenefits.Aftermeetingcertainqualifications,anemployeeacquiresavestedrighttofuturebenefits.Thebenefitspayableunderthedefinedbenefitpensionplansaregenerallydeterminedonthebasisofanemployee'slengthofserviceand/orearnings.

Pension Plan. TheCompanyhashistoricallyprovidedretirementplanbenefitstoitsemployeesundertheAcushnetCompanyPensionPlan,whichwerefertoasthe"PensionPlan."ThePensionPlanisaqualifieddefinedbenefitpensionplanthatprovidesretirementbenefitscommencingontheparticipant'snormalretirementdate,whichisthefirstdayofthecalendarmonthcoincidentwithornextfollowingaparticipant's65thbirthday,basedonparticipantearnings.EachofournamedexecutiveofficersotherthanMr.YoonisaparticipantinthePensionPlanandisfullyvestedinhisbenefitsunderthePensionPlan.Payoutsunderthepensionplanarenormallymadeintheformofalifeannuity,unlessanotherpaymentoptioniselected.EffectiveDecember31,2015,thePensionPlanwasclosedtonewparticipantsandbenefitaccrualswereceasedformembers(1)whohavenotattained50yearsofageandcompletedatleasttenyearsofserviceor(2)whodonothaveacombinedageandyearsofserviceof70ormore.

SERP. TheCompanymaintainsasupplementalexecutiveretirementplan,whichwerefertoasthe"SERP,"whichisanunfundedexcessbenefitplanthatsupplementsthebenefitspayableunderthePensionPlan.EachofournamedexecutiveofficersotherthanMr.YoonisaparticipantintheSERPandisfullyvestedinhisbenefitsundertheSERP.BenefitspayableundertheSERParepaidtoparticipantsinalumpsumduringthesixty-dayperiodfollowingtheparticipant'sretirementdate.EffectiveDecember31,2015,theSERPwasamendedtoceasebenefitaccrualsforparticipants(1)whohavenotattained50yearsofageandcompletedatleasttenyearsofserviceor(2)whodonothaveacombinedageandyearsofserviceof70ormore.Fromtimetotime,theCompanymaymakecontributionstoarabbitrusttofundthebenefitsundertheSERP.Inaddition,theCompanymaintainsaseparatetrust,pursuanttowhichitmakesannualcontributionstofundaportionofMr.Uihlein'sSERPbenefit,andprovidesatax-grossuptoMr.Uihleinforincomeattributabletosuchtrustcontributions.

Defined Contribution Plan. TheAcushnetCompany401(k)Plan(the"401(k)Plan")allowsparticipantstocontributeaportionoftheircompensationintothe401(k)PlanwiththeCompany

TableofContents

providingamatchingcontributionupto3.5%oftheparticipant'scompensation.EachofournamedexecutiveofficersotherthanMr.Yoonparticipatesinthe401(k)Plan.

Retiree Health Benefits

TheCompanymaintainsaretireemedicalhealthplan,whichprovidesmedicalcoveragetoemployeeswhoretiredirectlyfromtheCompany,haveachievedtheageof55,havecompleted10ormoreyearsofserviceandwerehiredpriortoJanuary1,2004.ThecostsundertheplanaresharedbetweentheCompanyandtheretireewiththesplitcostsbasedonyearsofserviceanddateofretirement.Thissplitisspecifictoeachretireeanddoesnotchangeovertime.Undertheplan,retireesandtheirspousesunderage65areeligibleforthesamemedicalanddentalplansavailabletoactiveemployeesandretireesage65andoverareeligibleforretiree-specificplans.

Deferred Compensation

TheCompanyestablishedadeferredcompensationplanin2005forthepurposeofprovidingdeferredcompensationforaselectgroupofmanagementorhighlycompensatedemployees,includingthenamedexecutiveofficersotherthanMr.Yoon.AsofJuly29,2011,inconnectionwiththesaleoftheCompanybyBeam,allCompanymatchingcontributionsandemployeecontributionstotheplanwerefrozenandemployeesalaryandincentivedeferralaccountsweredistributed.Allthatremainsintheplanistheportionofparticipants'accountsattributabletopriorCompanymatchingcreditstotheplanpriortoJuly29,2011.See"—NonqualifiedDeferredCompensationfor2015"belowforinformationrelatingtotheExcessDeferralPlanaccountsofournamedexecutiveofficers.

Severance and Change in Control Arrangements

Executive Severance Plan

TheCompanymaintainstheAcushnetExecutiveSeverancePlan(the"ExecutiveSeverancePlan")underwhichMessrs.Burke,BellisandConnorareeligibletoreceiveseverancebenefitsuponaterminationofemploymentexceptterminationsduetothenamedexecutiveofficer'sresignation(otherthanavoluntarilyterminationbecausethenamedexecutive'sjoblocationhasbeenrelocatedmorethan35milesfromtheparticipant'sformerjoblocation,forwhichseverancebenefitsarepayable),retirement,death,disabilityorcause.See"—PotentialPaymentsUponTerminationorChangeinControl"belowforinformationrelatingtotheseverancepayabletoournamedexecutiveofficersundertheExecutiveSeverancePlan.

Mr. Uihlein's Severance and Change in Control Agreement

Mr.Uihleinispartytobothaseveranceagreementandachangeincontrolagreementthatprovideforbenefitsintheeventofcertainqualifyingterminationsasfurtherdescribedunder"PotentialPaymentsUponTerminationorChangeinControl."

OtherthantheseveranceandchangeincontrolagreementsbetweentheCompanyandMr.Uihleindescribedabove,theCompanyhasnotenteredintoanemploymentagreementwithanyofitsnamedexecutiveofficers.

Excise Taxes

Mr.Uihlein'schangeincontrolagreementprovidesthattotheextentthatanyorallofthechangeincontrolpaymentsandbenefitsprovidedtoMr.Uihleinunderthechangeincontrolagreementoranyotherplan,arrangementoragreementconstitute"parachutepayments"withinthemeaningofSection280GoftheCodeandwouldotherwisebesubjecttotheexcisetaximposedbySection4999oftheCode,theCompanywillpayMr.UihleinanadditionalamountsuchthatthenetamountretainedbyMr.Uihleinafterthedeductionofanyexcise,federal,stateandlocalincometaxwillbeequaltothepaymentsheisentitledtounderthechangeincontrolagreement.However,ifthevalueofthe

TableofContents

paymentsMr.Uihleinisentitledtodonotexceed330%ofthebaseamount(asdefinedintheCode),nogross-uppaymentwillbemadeandanychangeincontrolrelatedpaymentsandbenefitswouldbereducedtoequalonedollarlessthantheamountwhichwouldresultinsuchpaymentsandbenefitsbeingsubjecttosuchexcisetax,butonlyifthevalueofthereductionisequaltoorlessthan30%ofMr.Uihlein'sbasesalary.

CompensationCommitteeInterlocksandInsiderParticipation

FromJanuarythroughMay2015,theCompensationCommitteewascomprisedofthefollowingdirectors:Mr.Uihlein,Mr.Yoon,Mr.ThomasPark,Mr.PrakashMelwaniandMs.JenniferEstabrook.BeginninginJune2015,theCompensationCommitteewascomprisedofMs.Estabrook,Mr.JonathanEpstein,Mr.ParkandMr.Melwani.Mr.MelwaniresignedfromtheboardofdirectorsofAcushnetCompanyandtheCompensationCommitteeinDecember2015.Mr.RandallLeewasappointedtotheCommitteeinApril2016.

Mr.Yoon,ChairmanofAcushnetCompanyandChairmanofAcushnetHoldingsCorp.,whoalsoservedasPresidentofAcushnetHoldingsCorp.untilMay11,2016,isalsoChairmanofFilaUSA,Inc.Ms.Estabrook,adirectorandmemberoftheCompensationCommitteeofAcushnetCompany,isanexecutiveofficerofFilaUSA,Inc.

KeyCompensationActionsin2016

2015 Incentive Plan

OnJanuary22,2016,theAcushnetHoldingsCorp.boardofdirectorsadopted,anditsstockholdersapproved,the2015IncentivePlan.See"EquityCompensationPlans—Summaryofour2015IncentivePlan."

Bonus to Mr. Uihlein

PursuanttoaletteragreementdatedFebruary26,2016,Mr.Uihleinwasawardedacashbonusintheamountof$7.5millionasconsiderationforpastperformanceastheCompany'sPresidentandChiefExecutiveOfficer.OnethirdofthecashbonuswaspaidinalumpsumuponexecutionoftheagreementandanotherthirdofthecashbonusispayableinalumpsumonDecember31,2016.Thelastthirdispayableupontheearliesttooccurof(1)theclosingofthisoffering,(2)achangeincontrol(asdefinedintheCompany's2015IncentivePlan)and(3)December31,2016.

Compensation Increases

OnApril29,2016,followingtheCompensationCommittee'sconsiderationofPearlMeyer'sassessmentofthenamedexecutiveofficers'compensationasdiscussedaboveunder"ResourcesGuidingCompensationDecisions,"Mr.Uihlein'sbasesalarywasincreasedto$1,086,000,Mr.Burke'sbasesalarywasincreasedto$482,000andMr.Connor'sbasesalarywasincreasedto$502,000.Inaddition,Mr.Uihlein'stargetedannualcashincentivefor2016wasincreasedto125%ofhisbasesalaryandMr.Burke'stargetedannualcashincentivefor2016wasincreasedto65%ofhisbasesalary.TheseincreasesinbasesalaryandtargetedannualcashincentiveamountsareeffectiveasofJanuary1,2016.

Equity Grants Under Omnibus Equity Plan

Inordertocontinuetopromotethealignmentofexecutivecompensationandlong-termshareholdervaluecreation,ourboardofdirectorshasadoptedanewapproachtoourlong-termequityincentivecompensationprogramfor2016.Aspreviouslydiscussed,theCompanyhaspreviouslygrantedEARs,aportionofwhichvestedbasedontheachievementofspecifiedfinancialperformancemeasures(i.e.,PlanAdjustedEBITDAandIRR).CommencingwiththeCompany'sgrantofequitycompensationin2016,theCompany'sapproachtolong-termequityincentivecompensationhasshifted

TableofContents

frommulti-yearappreciationawardstomulti-yearfullvalueawards,whichourboardofdirectorsbelievesmorecloselyaligns,onagoing-forwardbasis,theinterestsofexecutiveofficerswiththoseoftheCompany'sshareholders.

OnJune15,2016,ourboardofdirectorsapprovedagrantofmulti-yearrestrictedstockunits(the"Multi-YearRSUs")andperformancestockunits(the"Multi-YearPSUs")tocertainkeymembersofmanagement,includingMessrs.Uihlein,BurkeandConnor.Thegrantsweremade50%inMulti-YearRSUsand50%inMulti-YearPSUs.TheMulti-YearRSUsandMulti-YearPSUsareintendedtorepresentthreeyearsofequitycompensationand,assuch,Messrs.UihleinandBurkearenotexpectedtoreceivegrantsofRSUsorPSUsin2017or2018.Mr.ConnorisnotexpectedtoreceiveanyfuturegrantsofRSUsorPSUsasheisexpectedtoretireeffectiveDecember31,2016.OurboardofdirectorsbelievesthatthegrantoftheMulti-YearRSUsandMulti-YearPSUstoMessrs.Uihlein,BurkeandConnor,aswellascertainotherkeymembersofmanagement,willincentivizethemtoeffectivelyexecutetheCompany'sthree-yearstrategicplanandcreateadditionalvalueenhancingcorporatedevelopmentinitiativesduringthisthree-yearperiod.

One-thirdoftheMulti-YearRSUsvestoneachofJanuary1of2017,2018and2019.TheMulti-YearPSUscliff-vestonDecember31,2018,subjecttotheexecutive'scontinuedemploymentwiththeCompanyandtheCompany'slevelofachievementoftheapplicablecumulativeAdjustedEBITDAperformancemetrics(asdefinedintheapplicableawardagreements)measuredoverthethree-yearperformanceperiod.EachMulti-YearPSUreflectstherighttoreceivebetween0%and200%ofthetargetnumberofsharesbasedonactualthreeyearcumulativeAdjustedEBITDA.ForMr.Connor,thevestingofhisMulti-YearPSUsisexpectedtobeproratabasedonhisretirementdate.

IndeterminingthetargetvalueoftheMulti-YearRSUsandMulti-YearPSUs,ourboardofdirectorsandtheCompensationCommitteeconsideredexecutiveofficerperformance,potentialfuturecontributionsandpeergroupanalyses.Basedontheseconsiderations,ourboardofdirectorsandtheCompensationCommitteedeterminedtheappropriateannualtargetvalueofthelong-termincentivegrantsandthenmultipliedtheannualtargetvaluebythreebecausethegrantsareintendedtoreflectanticipatedcompensationforthethreeyearperiodfrom2016to2018andtheexecutivesarenotexpectedtoreceiveanyadditionalRSUorPSUgrantsin2017or2018.ThetargetnumberofsharesunderlyingtheMulti-YearRSUandMulti-YearPSUawardswasdeterminedbyreferencetothefairvalueofourcommonstockasofthedateourboardofdirectorsapprovedthegrants,whichfairvaluewasbasedoncalculationspreparedbyanindependentthirdpartyvaluationcompany.

InformationregardingtheMulti-YearRSUsandMulti-YearPSUsforMessrs.Uihlein,BurkeandConnorisincludedbelow.Ontheleft,thegrantdatefairvalueoftheMulti-YearRSUsandMulti-YearPSUshasbeenincluded.Ontheright,thegrantdatefairvalueoftheRSUsandPSUshasbeenpresentedonanannualizedbasistoreflectthatawardsareintendedtoreflectanticipatedcompensationforthethree-yearperiodfrom2016to2018andournamedexecutiveofficersarenotexpectedtoreceiveadditionalgrantsofRSUsorPSUsin2017or2018—i.e.,theRSUsandPSUshavebeendividedbythreetoillustratetheannualvalueoftheawardforoneofthethreeannualperiodswithinthethree-yearvestingperiod.

Name GrantDateFairValue

GrantDateFairValueonanAnnualizedBasis

RSUs PSUs RSUs PSUs WallyUihlein $ 4,425,000 $ 4,425,000 $ 1,475,000 $ 1,475,000WilliamBurke $ 1,500,000 $ 1,500,000 $ 500,000 $ 500,000JamesConnor $ 1,200,000 $ 1,200,000 $ 400,000 $ 400,000

TableofContents

CodeSection162(m)Policy

Subjecttothetransitionperioddescribedbelow,onceweareapubliccompanyCodeSection162(m)willlimitourdeductionforfederalincometaxpurposestonomorethan$1millionofcompensationpaidtocertainexecutiveofficersinataxableyear.However,compensationabove$1millionmaybedeductedifitis"performance-basedcompensation"withinthemeaningoftheCode.Followingthisoffering,weexpecttobeabletoclaimthebenefitofaspecialexemptionthatappliestocompensationpaidduringaspecifiedtransitionperiodunderSection162(m).Thistransitionperiodmayextenduntilthefirstannualshareholdersmeetingthatoccursaftertheendofthethirdcalendaryearfollowingthecalendaryearinwhichthisofferingoccurs,unlessthetransitionperiodisterminatedearlierundertheSection162(m)post-offeringtransitionrules.AtsuchtimeaswearesubjecttothedeductionlimitationsofSection162(m),weexpectthattheHoldingsCompensationCommitteewilltakethedeductibilitylimitationsofSection162(m)intoaccountinitscompensationdecisions;however,theHoldingsCompensationCommitteemay,initsjudgment,authorizecompensationpaymentsthatarenotexemptunderSection162(m)whenitbelievesthatsuchpaymentsareappropriatetoattractorretaintalent.

2015SummaryCompensationTable

ThefollowingtablesummarizesthecompensationpaidtoorearnedbytheCompany'snamedexecutiveofficers.ForadescriptionofthecomponentsoftheCompany's2015executivecompensationprogram,see"CompensationDiscussionandAnalysis—Componentsofthe2015ExecutiveCompensationProgram."

NameandPrincipalPosition Year BaseSalary Bonus

OptionAwards

StockAwards

Non-EquityIncentivePlanCompensation(1)

ChangeinPensionValueand

Non-qualifiedDeferred

CompensationEarnings(2)

AllOtherCompensation Total

WallyUihlein 2015 $ 995,200 $ 1,120,000(3) — — $ 1,906,400 $ 449,346 $ 957,038(4)$ 5,427,984PresidentandChief ExecutiveOfficer

WilliamBurke 2015 $ 401,100 — — — $ 612,800 $ 185,036 $ 61,606(5)$ 1,260,542ExecutiveVicePresident, ChiefFinancialOfficer andTreasurer

GeraldBellis 2015 $ 537,700 — — — $ 819,500 $ 221,365 $ 47,478(6)$ 1,626,043President,TitleistGolfBalls

JamesConnor 2015 $ 487,100 — — — $ 731,200 $ 108,562 $ 62,410(7)$ 1,389,272President,FootJoy

GeneYoon 2015 $ 1,092,900 $ 1,120,000(3) — — $ 2,031,000 — $ 10,000(8)$ 4,253,900ChairmanofAcushnet Company,Chairmanand PresidentofAcushnet HoldingsCorp.

(1) Representstheactualamountsearnedfor2015undertheCompany'sannualcashincentiveplanandLTIP.ForeachofMr.UihleinandMr.Yoon,thisamountincludesthe750unitsgrantedunderthe2015SpecialLTIPwhosevalueof$850perunitwasbasedonPlanAdjustedEBITDAfor2015andexcludesthe2,800unitsgrantedunderthe2015SpecialLTIPthatweresubjecttoafixedpayout,asdescribedinfootnote(3)below.ForeachofMessrs.Burke,BellisandConnor,thisrepresentsthepayoutamountforhis2014-2015LTIPaward.Foradditionalinformationregardingtheseprograms,see"CompensationDiscussionandAnalysis—Componentsofthe2015ExecutiveCompensationProgram—AnalysisofAnnualCashIncentives"and"CompensationDiscussionandAnalysis—Componentsofthe2015ExecutiveCompensationProgram—AnalysisofLong-TermIncentives(LTIPandEARs)."

(2) Thevaluesthatappearinthetablearethechangeinthepresentvalueoftheretirementbenefitsin2015.Thechangeisimpactedbyadditionalserviceandpay,aswellaschangesinanyofthevaluationassumptionsthatareusedtopreparetheCompany'sconsolidatedfinancialstatements.Becauseofchangingactuarialassumptions,thesevaluescanvarysignificantlyfromyeartoyear.

(3) RepresentstheportionofeachofMr.Uihlein'sandMr.Yoon's2015SpecialLTIPawardthatissubjecttoafixedpayoutvalueof2,800unitsat$400perunit.See"CompensationDiscussionandAnalysis—Componentsofthe2015ExecutiveCompensationProgram—AnalysisofLong-TermIncentives(LTIPandEARs)—2015SpecialLTIPAward."

TableofContents

GrantsofPlan-BasedAwardsin2015

ThefollowingtablesetsforthcertaininformationwithrespecttograntsofawardstothenamedexecutiveofficersundertheCompany'snon-equityincentiveplansduring2015.Foradditionalinformationconcerningtheannualandlong-termnon-equityincentiveprograms,see"CompensationDiscussionandAnalysis—Componentsofthe2015ExecutiveCompensationProgram."

(4) Includesataxgross-uppaymentof$859,539madebytheCompanyrelatedtotheCompany'scontributiontoMr.Uihlein'sSERPtrust,Companymatchingcontributionunderthe401(k)Plan,anautomobileallowance,annualexecutivelifeinsurancepremiumspaidbytheCompanyintheamountof$49,705,annualreimbursementforcountryclubduesandCompanygolfequipment,gearandwear.

(5) IncludesaCompanymatchingcontributionunderthe401(k)Plan,annualexecutivelifeinsurancepremiumspaidbytheCompanyintheamountof$26,656,annualreimbursementforcountryclubdues,paymentsforfinancialplanningservicesandCompanygolfequipment,gearandwear.

(6) IncludesaCompanymatchingcontributionunderthe401(k)Plan,annualexecutivelifeinsurancepremiumspaidbytheCompanyintheamountof$17,923,annualreimbursementforcountryclubduesandpaymentsforfinancialplanningservicesandCompanygolfequipment,gearandwear.

(7) IncludesaCompanymatchingcontributionunderthe401(k)Plan,annualexecutivelifeinsurancepremiumspaidbytheCompanyintheamountof$33,910,annualreimbursementforcountryclubduesandCompanygolfequipment,gearandwear.

(8) RepresentsCompanygolfequipment,gearandwear.Followingtheclosingofthisoffering,Mr.Yoonwillnolongerreceiveofficercompensation.

EstimatedPayoutsUnderNon-EquityIncentivePlanAwards

GrantDate

Name Units Threshold Target Maximum WallyUihlein 3/6/2015(1) — — $ 746,400 $ 1,492,800

3/6/2015(2) 750 — — (4) $ 750,000

WilliamBurke 3/6/2015(1) — — $ 200,550 $ 401,100

3/6/2015(3) 300 — — (4) $ 300,000

GeraldBellis 3/6/2015(1) — — $ 268,850 $ 537,700

3/6/2015(3) 400 — — (4) $ 400,000

JamesConnor 3/6/2015(1) — — $ 243,550 $ 487,100

3/6/2015(3) 350 — — (4) $ 350,000

GeneYoon 3/6/2015(1) — — $ 819,675 $ 1,639,350

3/6/2015(2) 750 — — (4) $ 750,000

(1) Representstheexecutive'sannualcashincentiveaward.See"CompensationDiscussionandAnalysis—Componentsofthe2015ExecutiveCompensationProgram—AnalysisofAnnualCashIncentives."

(2) Representstheportionofthe2015SpecialLTIPawardthatisnotsubjecttoafixedpayoutvalue.See"CompensationDiscussionandAnalysis—Componentsofthe2015ExecutiveCompensationProgram—AnalysisofLong-TermIncentives(LTIPandEARs)—2015SpecialLTIPAward."

(3) Representsthenamedexecutiveofficer's2015-2016LTIPaward.See"CompensationDiscussionandAnalysis—Componentsofthe2015ExecutiveCompensationProgram—AnalysisofLong-termIncentives(LTIPandEARs)—2014-2015and2015-2016LTIPAwards."

(4) Theportionofthe2015SpecialLTIPthatisnotsubjecttoafixedpayoutvalueandthe2015-2016LTIPdonothaveatargetvalue.

TableofContents

OutstandingEquityAwardsasofDecember31,2015

OptionExercisesin2015

Thefollowingtablesetsforthinformationregardingtheexerciseofstockoptionawardsduring2015forthenamedexecutiveofficers.NoneofthenamedexecutiveofficersotherthanMr.Uihleinexercisedoptionsin2015.

Name GrantDate

NumberofSecuritiesUnderlyingUnexercisedOptions

Exercisable(1)

OptionExercisePrice(2)

OptionExpirationDate(3)

WallyUihlein 8/30/2011 900,000 $ 11.12 12/31/2016WilliamBurke 8/30/2011 432,000 $ 11.12 12/31/2016GeraldBellis 8/30/2011 432,000 $ 11.12 12/31/2016JamesConnor 8/30/2011 432,000 $ 11.12 12/31/2016GeneYoon 8/30/2011 2,520,000 $ 11.12 12/31/2016

(1) RepresentstheEARsgrantedtothenamedexecutiveofficersundertheEARPlan.TheEARsbecomepayableuponthefirsttooccurof(a)anamedexecutiveofficer's"separationfromservice"(underSection409AoftheCode)otherthanforcause,(b)thesaleoftheCompanyor(c)December31,2016.AstheEARswouldpayoutifanamedexecutiveofficervoluntarilyseparatedfromserviceonDecember31,2015,theyareclassifiedasexercisableforpurposesofthistable.See"CompensationDiscussionandAnalysis—Componentsofthe2015ExecutiveCompensationProgram—AnalysisofLong-TermIncentives(LTIPandEARs)—EARs"

(2) RepresentsthegrantdatevaluefortheEARundertheapplicableEARawardagreement.

(3) TheEARPlanexpiresonDecember31,2016andanyvestedEARsmustbepaidoutwithintwoandahalfmonthsthereafter.

OptionAwards

NumberofSharesAcquired

onExercise ValueRealizedonExercise

WallyUihlein 450,081 $ 8,341,020

(1) Inconnectionwiththe2011saleoftheCompanybyBeam,Mr.Uihlein'soptionstopurchaseBeamstockconvertedtooptionstopurchasesharesofAcushnetHoldingsCorp.commonstock.OnJuly31,2015,Mr.Uihleinexercisedalloftheseremainingoptionsandtenderedaportionofthesharesunderlyingtheoptionsforthepaymentoftheexercisepriceandwithholdingtaxes.

TableofContents

PensionBenefitsfor2015

Thefollowingtableshows,asofDecember31,2015,eachnamedexecutiveofficer'syearsofcreditedservice,presentvalueofaccumulatedbenefitandbenefitsreceived,ifany,undertheCompany'sPensionPlanandtheSERP.

Pension Plan. ThePensionPlanisataxqualifieddefinedbenefitpensionplanandtheSERPisanonqualifieddefinedbenefitpensionplan.Eachplanprovidesforpaymentofretirementbenefitstoaplanparticipantcommencingbetweentheagesof50and65,aswellasforpaymentofcertaindisabilitypensionbenefits.Afterattainingage50orcompletingfiveyearsofvestingserviceaplanparticipantacquiresavestedrighttofuturebenefits.Thebenefitspayableundereachoftheplansaregenerallydeterminedonthebasisofanemployee'slengthofserviceand/orearningsandarenormallypaidasanannuityunlessalumpsumelectionismade.

Eachoftheplansgenerallyprovidesunreducedretirementbenefitscommencingontheparticipant'snormalretirementdate,whichisthefirstdayofthecalendarmonthcoincidentwithornextfollowingaparticipant's65thbirthday,butaparticipantcanreceivereducedpensionbenefitsasearlyasage50.ThePensionPlanprovidesbenefitspayableaseitheranannuityoralumpsum.EachofthenamedexecutiveofficersotherthanMr.YoonparticipatesinthePensionPlan,isfullyvestedinhisbenefitsunderthePensionPlanandcancommencehispensionbenefitsimmediatelyuponterminationofemployment.

Uponretirement,asalariedparticipantinthePensionPlan,suchasthenamedexecutiveofficers,isentitledtoabenefitequaltothesumof(a)0.9%ofhisaveragemonthlyrateofearningsmultipliedbyhisyearsofcreditedserviceand(b)0.55%ofthatportionofhisaveragemonthlyrateofearnings

Name PlanName

NumberofYearsCreditedService

PresentValueofAccumulated

Benefit(3)

PaymentsDuringLastFiscalYear

WallyUihlein AcushnetCompanyPensionPlan 38.92 $ 1,579,871 — AcushnetCompanySupplementalRetirementPlan 38.92 $ 11,929,668 —

WilliamBurke(1) AcushnetCompanyPensionPlan

31.58$ 866,037

AcushnetSupplementalExecutiveRetirementPlan 31.58 $ 1,845,753 —

GeraldBellis AcushnetCompanyPensionPlan

32.58$ 848,473

JamesConnor AcushnetCompanyPensionPlan

28.42$ 1,239,016

GeneYoon AcushnetCompanyPensionPlan

AcushnetSupplementalExecutiveRetirementPlan — — —

(1) Mr.Burke'sbenefitreflectsfullcontrolledgroupbenefitservicewithanoffsetforabenefitaccruedandpayableunderaformercontrolledgroupcompanypensionplan.

(2) Numberofyearsofcreditedservicerepresentsactualyearsofservice.

(3) Presentvalueofaccumulatedbenefitiscalculatedbyusingadiscountrateof4.45%forthePensionPlanand3.90%fortheSERP.

TableofContents

thatisinexcessofhiscoveredcompensation,multipliedbythelesserof(1)35and(2)hisyearsofcreditedserviceasasalariedemployee.AveragemonthlycompensationforthiscalculationislimitedinaccordancewiththeIRScompensationlimitregulationsunderCodesection401(a)(17).Planparticipants,includingMr.Burke,whotransferreddirectlytotheCompanyfromanothercompanyintheCompany'spriorcontrolledgroup(priortoJuly2011),receiveabenefitreflectingallserviceinthecontrolledgroupdeterminedusingtheplanformula,withanoffsetforthebenefitpayablefromthepensionplanoftheformercontrolledgroupcompany.AtDecember31,2015,thePensionPlanwasamendedtofreezebenefitaccrualsforcertainparticipantsandlimitongoingbenefitaccrualsforotherparticipants,basedonageandserviceatthatdate.ForparticipantswhoatDecember31,2015hadattainedageof50andhadcompletedatleasttenyearsofserviceorhadacombinedageandyearsofserviceof70ormore,themonthlybenefitamountpayableunderthePensionPlanwillequalthesumof(a)theparticipant'sfrozenaccruedpensionbenefitatDecember31,2015,plus(b)benefitaccrualsafterthattimereflectingonlyserviceandpayearnedin2016andthebenefitformuladescribedabove,butwithfinalaveragemonthlycompensationlimitedto$150,000.

Ifaplanparticipantdiesafterage50andbeforebenefitscommenceunderthePensionPlan,hisspousewillgenerallybeentitledtomonthlypensionbenefitscommencingonthefirstdayofthemonthfollowingthenamedexecutiveofficer'sdeathequalto50%ofthenamedexecutiveofficer'sassumedretirementpension,whichisthemonthlyamountofpensionbenefitsthathewouldhavereceivedhadheretiredimmediatelypriortohisdeathwhilethejointandsurvivorannuitywasineffectwithaprovisionforcontinuanceof50%ofhisreducedamountofretirementbenefittohisspouse.Thespousemayinsteadelecttoreceivealumpdistributionequaltoanamountthatwouldbeactuariallyequivalenttothemonthlybenefitotherwisepayable.Iftheplanparticipanthasnospouse,hisbeneficiarywillbeeligibletoreceivealumpsumdistributionoftheabove.See"—PensionBenefitsfor2015"aboveforinformationrelatingtotheaccumulatedbenefitsofournamedexecutiveofficers.

SERP. TheSERPisanonqualified,unfundedexcessbenefitplanthatsupplementsthebenefitspayableunderthePensionPlan.Uponaparticipant'sretirement,theparticipantwillbeentitledtoabenefitundertheSERPequaltothedifferencebetween(a)and(b),where(a)isthesumof(A)0.9%ofhisaveragemonthlyrateofearningsmultipliedbyhisyearsofcreditedserviceand(B)0.55%ofthatportionofhisaveragemonthlyrateofearningsthatisinexcessofhiscoveredcompensation,multipliedbythelesserof(1)35and(2)hisyearsofcreditedserviceasasalariedemployee,and(b)isthebenefitpayableunderthePensionPlan.Monthlyaveragecompensationforitems(A)and(B)immediatelyaboveisnotlimited.BenefitspayableundertheSERParegenerallypaidtoparticipantsinalumpsumduringthe60-dayperiodfollowingtheparticipant'sretirementdate.

EachofMr.UihleinandMr.ConnoriseligibletoreceivefullretirementbenefitsunderthePensionPlanandSERP.EachofMr.BurkeandMr.BellisiseligibletoreceiveearlyretirementbenefitsunderthePensionPlanandSERP.Mr.YoondoesnotparticipateinthePensionPlanorSERP.Ifaparticipantretiresearly,hewillbeentitledtoelect(1)amonthlyretirementbenefitascalculatedabovethatcommencesonhisnormalretirementdateor(2)areducedbenefitpayableathisearlyretirementdate.Theearlyretirementbenefitisequaltothe0.9%portionofhispensionbenefitreducedbythenumberofmonthsbywhichhisannuitystartingdateprecedeshisearlyretirementage(definedasage64forMr.BurkeandMr.Bellis)multipliedby0.003and(b)0.55%oftheportionofhisbenefitreducedby0.5%foreachofthefirst60monthsthathisannuitystartingdateprecedestheearlyretirementageor(y)0.3%foreachmonthinexcessof60thattheannuitystartingdateprecedestheearlyretirementage.Mr.BellisretiredfromtheCompanyeffectiveFebruary29,2016.BecauseMr.Bellisretiredpriortohisregularretirementdate,heiseligibletoreceiveearlyretirementbenefitsasdescribedabove.

Additionally,theCompanyhasestablishedandpartiallyfundedarabbitrusttoprovideasourceoffundsforbenefitspayablefromtheSERP.ForMr.Uihlein,theCompanymakesannualcontributionstoatrustownedbyMr.UihleintofundaportionofMr.Uihlein'sSERPbenefit.UponMr.Uihlein's

TableofContents

terminationofemployment,afinalcontributionwillbemadetohistrustinanamountwhichwhenaddedtotheexistingbalancewillequalthepresentvalueoftheafter-taxsinglesumequivalentofhissupplementalretirementbenefittobepaidwithin60daysfollowinghisterminationordeath,orinthecaseofaterminationfordisability,within60daysofhisbecomingdisabled.

NonqualifiedDeferredCompensationfor2015

Thefollowingtableprovidesasummaryofthenamedexecutiveofficers'accountsthatremainoutstandingintheCompany'snonqualifiedexecutivedeferralplan("EDP")for2015.AsofJuly29,2011,inconnectionwiththesaleoftheCompanybyBeamallCompanymatchingcontributionsandemployeecontributionstotheplanwerefrozenandemployeesalaryandincentivedeferralaccountsweredistributed,Allthatremainsintheplanistheportionofparticipants'accountsattributabletoCompanymatchingcreditstotheplanpriortoJuly29,2011.See"CompensationDiscussionandAnalysis—Componentsofthe2015ExecutiveCompensationProgram—DeferredCompensation"above.

EachofthenamedexecutiveofficersotherthanMr.YoonparticipatesintheEDPandisfullyvestedinhisaccountbalance.Mr.YoondoesnotparticipateintheEDP.UponaseparationfromtheCompany,thesenamedexecutiveofficersareentitledtothevalueoftheiraccountsinalumpsumnolaterthan(1)December31stoftheyearinwhichtheseparationoccursor(2)90daysfollowingthedateoftermination.

AccountbalancesareinvestedinavarietyofmutualfundsselectedbytheplanparticipantsfromalistoffundinvestmentoptionssimilartotheinvestmentoptionsavailableundertheCompany'sdefinedcontributionplan.Participantsearnannualmarketratereturnsbasedonthefund'sperformance.

PotentialPaymentsUponTerminationorChangeinControl

Thetablebelowquantifiesthepotentialpaymentsandbenefitsthatwouldbeprovidedtoeachnamedexecutiveofficerundereachoftheterminationorchangeincontrolcircumstanceslisted.TheamountsshownarebasedontheassumptionthatthetriggeringeventtookplaceonDecember31,2015,whichwasthelastbusinessdayof2015.

Theamountsshowninthetablebelowdonotinclude:

• paymentsandbenefitstotheextenttheyareprovidedgenerallytoallsalariedemployeesuponterminationofemploymentorothercircumstanceanddonotdiscriminateinscope,termsoroperationinfavorofthenamedexecutiveofficers;

• regularpensionbenefitsunderourPensionPlanortheSERP.See"—PensionBenefitsfor2015"above;or

• distributionsofplanbalancesunderour401(k)PlanortheEDP.See"—NonqualifiedDeferredCompensationforFiscal2015"aboveforinformationrelatingtothedistributionsoftheEDPaccountbalancesofournamedexecutiveofficers.

ExecutiveContributionsLastFiscal

CompanyContributionsLastFiscal

AggregateEarningsinLastFiscal

AggregateWithdrawals/Distributions

AggregateBalance

LastFiscalYear

WallyUihlein — — $ (10,654) — $ 281,278WilliamBurke — — $ (2,141) — $ 90,160GeraldBellis — — $ 5,122 — $ 139,950JamesConnor — — $ (11,458) — $ 138,865GeneYoon — — — — —

TableofContents

PotentialPaymentsUponTerminationorChangeinControl

Retirement

InvoluntaryTermination

withoutCauseorVoluntaryTermination

withGoodReason TerminationForCause

DeathorDisability

ChangeinControlfollowedbyInvoluntaryTerminationwithoutCauseorVoluntaryTerminationwithGoodReason

WallyUihlein Annualincentiveaward(2) $ 1,268,900 $ 1,268,900 — $ 1,268,900 $ 1,268,900LTIPawards(3) $ 1,757,500 $ 1,757,500 — $ 1,757,500 $ 1,757,500PayoutofEARs(4) $ 15,283,000 $ 15,283,000 — $ 15,283,000 $ 15,283,000Cashseverancepayment(5) — $ 4,192,379 — — $ 6,270,878Lifeinsurance — — — $ 5,623,400 —Healthandwelfarebenefits(6) — $ 128,556 — — $ 192,834Accruedandunpaidvacation $ 114,830 $ 114,830 $ 114,830 $ 114,830 $ 114,830Total $ 18,424,230 $ 22,745,165 $ 114,830 $ 24,047,630 $ 24,887,942

WilliamBurke Annualincentiveaward(2) $ 341,000 $ 341,000 — $ 341,000 $ 341,000LTIPawards(3) $ 387,600 $ 387,600 — $ 387,600 $ 387,600PayoutofEARs(4) $ 7,335,840 $ 7,335,840 — $ 7,335,840 $ 7,335,840Cashseverancepayment(5) — $ 601,650 — — $ 802,200Lifeinsurance — — — $ 2,395,500 —Healthandwelfarebenefits — — — — —Accruedandunpaidvacation $ 46,281 $ 46,281 $ 46,281 $ 46,281 $ 46,281Total $ 8,110,721 $ 8,712,371 $ 46,281 $ 10,506,221 $ 8,912,921

GeraldBellis Annualincentiveaward(2) $ 457,100 $ 457,100 — $ 457,100 $ 457,100LTIPawards(3) $ 516,800 $ 516,800 — $ 516,800 $ 516,800PayoutofEARs(4) $ 7,335,840 $ 7,335,840 — $ 7,335,840 $ 7,335,840Cashseverancepayment(5) — $ 806,550 — — $ 1,075,400Lifeinsurance — — — $ 3,210,500 —Healthandwelfarebenefits — — — — —Accruedandunpaidvacation $ 62,042 $ 62,042 $ 62,042 $ 62,042 $ 62,042Total $ 8,371,782 $ 9,178,332 $ 62,042 $ 11,582,282 $ 9,447,182

JamesConnor Annualincentiveaward(2) $ 414,100 $ 414,100 — $ 414,100 $ 414,100LTIPawards(3) $ 452,200 $ 452,200 — $ 452,200 $ 452,200PayoutofEARs(4) $ 7,335,840 $ 7,335,840 — $ 7,335,840 $ 7,335,840Cashseverancepayment(5) — $ 730,650 — — $ 974,200Lifeinsurance — — — $ 2,908,500 —Healthandwelfarebenefits — — — — —Accruedandunpaidvacation $ 46,837 $ 46,837 $ 46,837 $ 46,837 $ 46,837Total $ 8,248,977 $ 8,979,627 $ 46,837 $ 11,157,477 $ 9,223,177

GeneYoon Annualincentiveawards(2) $ 1,393,500 $ 1,393,500 — $ 1,393,500 $ 1,393,500LTIPawards(3) $ 1,757,500 $ 1,757,500 — $ 1,757,500 $ 1,757,500PayoutofEARs(4) $ 42,792,400 $ 42,792,400 — $ 42,792,400 $ 42,792,400Cashseverancepayment(5) — — — — —Lifeinsurance — — — — —Healthandwelfarebenefits — — — — —Accruedandunpaidvacation — — — — —Total $ 45,943,400 $ 45,943,400 — $ 45,943,400 $ 45,943,400

(1) Eachofthenamedexecutiveofficersisretirementeligibleundertheawardsand/orplansapplicabletohimasofDecember31,2015andthereforeanyvoluntaryterminationbythenamedexecutiveofficer,otherthanaterminationforgoodreason,hasbeentreatedasaretirementforpurposesofthistable.

TableofContents

Severance and Change in Control Arrangements

Executive Severance Plan

IfaSeverancePlanparticipant'semploymentisterminated(1)bytheCompanyotherthanforcauseor(2)bytheparticipantbecausetheparticipant'sjoblocationhasbeenrelocatedmorethan35milesfromtheparticipant'sformerjoblocation,theparticipantwillreceive(a)18monthsofbasesalaryplus(b)oneyearofbonus(basedonthetargetbonusfortheyearoftermination)offsetbyanybonusamountactuallypaidunderthetermsoftheCompany'sannualbonusplanfortheyearoftermination,payableininstallments.

UndertheSeverancePlan,"cause"includesbutisnotlimitedtomisconduct,negligence,dishonesty,criminalact,excessiveabsenteeism,andwillfulfailuretoperformjobresponsibilitiesandotherconductdeterminedundertheCompany'scodeofconductorotherpoliciestobe"cause".

Ifachangeincontroloccursand,within18monthsofthechangeofcontrol(1)theCompanyterminatestheparticipantotherthanforcause,(2)theparticipantvoluntaryterminatesemploymentbecausehisjoblocationhasbeenrelocatedmorethan35milesfromhisformerjoblocation,or(3)theparticipantvoluntarilyterminateshisemploymentdueto(a)amaterialdiminutionintheduties,authorityorresponsibilitiesor(b)amaterialnegativechangeintheparticipant'scompensation,theparticipantwillreceive:(x)24monthsofbasesalaryplus(y)oneyearofannualcashincentive(basedonthegreaterof(a)targetbonusfortheyearofterminationor(b)theannualcashincentivethatwouldhavebeenpaidusingtheCompany'smostrecentfinancialperformanceoutlookreportthatisavailableasoftheemployee'sterminationdate),ineachcaseoffsetbyanyannualcashincentive

(2) Representsvalueoftheannualcashincentiveawardearnedfor2015asincludedintheSummaryCompensationTable.OtherthaninthecaseofaterminationbytheCompanyforcause,thenamedexecutiveofficerwouldreceivetheannualcashincentiveawardearnedfor2015evenifhisemploymentterminatedpriortotheactualcashpayoutdatein2016.See"CompensationDiscussionandAnalysis—Componentsofthe2015ExecutiveCompensationProgram—AnalysisofAnnualCashIncentives."

(3) ForeachofMr.UihleinandMr.Yoon,representsthevalueofthe2015SpecialLTIPaward.ForMessrs.Burke,BellisandConnor,representsthevalueofthe2014-2015LTIPawardplus,inthecircumstancesspecifiedbelow,anestimatedpro-rataportionofthe2015-2016LTIPaward.OtherthaninthecaseofaterminationbytheCompanyforcause,thenamedexecutiveofficerwouldreceivethe2015SpecialLTIPawardor2014-2015LTIPaward,asapplicable,earnedthroughDecember31,2015evenifhisemploymentterminatedpriortotheactualcashpayoutdatein2016.Uponaterminationotherthanforcause,Messrs.Burke,BellisandConnorwouldbeeligibletoreceiveapro-ratedawardunderthe2015-2016LTIP,tobepaidin2017followingtheendoftheperformanceperiod,basedontheactualresultsfortheperformanceperiodandthenamedexecutiveofficer'sserviceduringtheperformanceperiod.

(4) UponaterminationotherthanforcauseonDecember31,2015,eachnamedexecutiveofficerwouldbeentitledtoapayoutofhisEARs.See"CompensationDiscussionandAnalysis—Componentsofthe2015ExecutiveCompensationProgram—AnalysisofLong-TermIncentives(LTIPandEARs)—EARs—PayoutoftheEARs."

(5) ForMr.Uihleinrepresentstheamountspayableunderhisseveranceandchangeincontrolagreementsasdescribedbelow.

ForMessrs.Burke,BellisandConnor,thecashseveranceamountrepresentstheamountspayabletothenamedexecutiveofficerundertheExecutiveSeverancePlanasdescribedbelow.ConsistentwiththetermsoftheExecutiveSeverancePlan,indeterminingtheamountofseverancebenefitsforeachofthenamedexecutiveofficers,theamountoftheannualcashincentivetobepaidaspartoftheseverancebenefitswasoffsetbytheannualincentiveawardearnedbythenamedexecutiveofficerfor2015(asprovidedintableaboveanddenotedbyfootnote(2)above)whichresultedinthepaymentof$0annualcashincentiveaspartoftheseverancebenefits.

Mr.YoondoesnotparticipateintheExecutiveSeverancePlanorhaveanyotherseveranceorchangeincontrolagreementwiththeCompany.

(6) ForMr.Uihlein,representstheannualpremiumamountsformedical,dental,lifeanddisabilityinsuranceinaccordancewiththeprovisionsofhisseveranceandchangeincontrolagreementsasdescribedbelow.

TableofContents

amountactuallypaidunderthetermsoftheCompany'sannualcashincentiveplanfortheyearoftermination,payableininstallments.

PaymentsundertheSeverancePlanaresubjecttoexecutionofareleaseofclaims.Foraperiodoftwelvemonthsafterseparationfromemployment,aparticipantmaynot,personallyoronbehalfofanotherparty,whetherdirectlyorindirectlysolicitforemploymentanypersonemployedbytheCompanyinasalariedpositionduringtheyearbeforeseparationfromemployment.

Mr. Uihlein's Severance and Change in Control Agreements

Underhisseveranceagreement,ifMr.UihleinisterminatedbytheCompanyotherthanforcauseorifheresignsforgoodreason,hewillbeentitledto:

• twotimesthesumof(1)hisbasesalary;(2)histargetannualincentivecompensationundertheannualcashincentiveplanand(3)theamountthatwouldhavebeenrequiredtobeallocatedtohisaccountunderthe401(k)PlanandCompanycontributionsundertheSERP,paidratablyovera12monthperiod(unlesspayablewithintwoyearsfollowingachangeincontrol,inwhichcasethepaymentsaremadeinalumpsumsixmonthsfollowingtheterminationdate);

• continuedhealthandwelfarebenefitsfortwoyearsfollowinghistermination(withMr.Uihleinpayingtheactiveemployeerate);

• anamountequaltotheexcessof(1)thesumoftheaggregatemonthlyamountsofpaymentshewouldhavebeenentitledtounderthetermsofeachoftheCompany'spensionplansifheremainedafullyvestedactiveparticipantandaccumulatedtwoadditionalyearsofservicethereunderover(2)thesumoftheaggregatemonthlyamountsofpaymentshewouldbeentitledtoundereachoftheCompany'spensionplans,payableatthetimepaymentsaremadeundertheSERP;and

• the(1)unpaidportionofhisannualincentivecompensationundertheannualcashincentiveplanforthecalendaryearimmediatelyprecedingtheyearinwhichtheterminationoccursand(2)annualcashincentivecompensationundertheannualcashincentiveplanforthecalendaryearinwhichtheterminationoccurs,payableatthetimetheannualincentiveawardsforthatyeararenormallypaid,inanamountequaltoMr.Uihlein'stargetpercentageproratedfortheportionoftheyearthroughtheterminationdate.

UnderMr.Uihlein'sseveranceagreement,"cause"generallyincludes(1)anactoractsofdishonestyonMr.Uihlein'spartthatresultsinMr.Uihleinbeingindictedforafelony,or(2)Mr.Uihlein'swillfulandcontinuedfailuresubstantiallytoperformhisdutiesandresponsibilitiesasanofficeroftheCompany(otherthananysuchfailureresultingfromhisincapacityduetophysicalormentalillness)afterademandforsubstantialperformanceisdeliveredtoMr.UihleinbyourboardofdirectorswhichspecificallyidentifiesthemannerinwhichourboardofdirectorsbelievesthatMr.UihleinhasnotsubstantiallyperformedhisdutiesandMr.Uihleinisgivenareasonabletimeaftersuchdemandsubstantiallytoperformhisduties.

Undertheseveranceagreement,Mr.Uihleinhas"goodreason"toresignifhevoluntarilyterminateshisemploymentdueto(1)amaterialchangeinhisduties,withouthisexpresswrittenconsent,exceptinconnectionwiththeterminationofhisemploymentasaresultofhisdeathorbytheCompanyfordisabilityorcauseorbyMr.Uihleinotherthanforgoodreason;(2)areductionbytheCompanyinMr.Uihlein'sthencurrentbasesalary;(3)thefailureoftheCompanytosubstantiallymaintainandtocontinueMr.Uihlein'sparticipationintheCompany'sbenefitplansunlessparticipationinsuchplansceasesforsimilarlysituatedseniorexecutives;(4)therelocationoftheofficesatwhichMr.Uihleinisemployedtoalocationmorethan35milesfromhislocationatthetimetheseveranceagreementwasenteredintoorrequiringMr.UihleintorelocatetoanyofficeotherthantheCompany'sprincipalexecutiveoffices,exceptforrequiredtravelontheCompany'sbusiness;

TableofContents

(5)anyreductioninthenumberofvacationdaysprovidedtoMr.Uihlein,unlesssuchreductionisapplicabletoofficersoftheCompanygenerally;(6)anyfailureoftheCompanytorequireanysuccessortoassumeandagreetoperformhisseveranceagreement;or(7)anypurportedterminationofMr.Uihlein'semploymentwhichisnoteffectedpursuanttoanoticeofterminationsatisfyingtherequirementsofhisagreement.Mr.UihleinmustprovidewrittennoticetotheCompanyoftheexistenceofgoodreasonnolaterthan90daysafteritsinitialexistenceandtheCompanywillhave30daystocuresuchgoodreasoncondition.

SeverancebenefitsaresubjecttoMr.Uihlein'ssigningofareleaseofclaims.Undertheseveranceagreement,Mr.Uihleinissubjectto12-monthconfidentiality,non-competeandnon-solicitationcovenantsunderwhichMr.Uihleinshallholdallconfidentialtradesecretsinconfidence,andshallnot(1)engageinnorbecompetitivelyemployedbyorrenderanyservicesforanybusinessintheUnitedStates,Canada,Asia,MexicoorEuropewhichisdirectlycompetitivewithanysignificantbusinessinwhichtheCompanyoranyofitsaffiliateswasengagedduringthetwo-yearperiodprecedingMr.Uihlein'stermination,and(2)solicitbusinessfromnorcauseotherstosolicitbusinessthatcompeteswiththeCompany'soranyaffiliate'slineofproductsfromanyentitieswhichwerecustomersoftheCompanyduringMr.Uihlein'semploymentorwhichweretargetedaspotentialcustomersduringhisemployment.

IfachangeincontroloccursandMr.Uihleinissubsequentlyterminatedwithoutcause(asdefinedabovefortheseveranceagreement)orresignsforgoodreasonwithinthreeyearsofachangeincontrol,hewillbeentitledto:

• 2.99timesthesumof(1)hisbasesalary;(2)histargetannualincentivecompensationundertheannualcashincentiveplanand(3)theamountthatwouldhavebeenrequiredtobeallocatedtohisaccountunderthe401(k)Plan,payableinalumpsumontheeighthdayfollowingtheterminationdate;

• continuedhealthandwelfarebenefitsforthreeyearsfollowinghistermination(withMr.UihleinpayingtheapplicableCOBRArate);

• anamountequaltotheexcessof(1)thesumoftheaggregatemonthlyamountsofpensionpaymentshewouldhavebeenentitledtounderthetermsoftheCompany'spensionplansifheremainedafullyvestedactiveparticipantandaccumulatedthreeadditionalyearsofageandservicethereunderover(2)thesumoftheaggregatemonthlyamountsofpensionpaymentshewouldbeentitledtoundersuchpensionplansuponhistermination;and

• the(1)unpaidportionofhisincentivecompensationundertheannualcashincentiveplanforthecalendaryearimmediatelyprecedingtheyearinwhichtheterminationoccursand(2)incentivecompensationundertheannualcashincentiveplanforthecalendaryearinwhichtheterminationoccurs,payableatthetimetheannualincentiveawardsforthatyeararenormallypaidbasedontheCompany'sactualperformance.

AnybenefitspaidunderthechangeincontrolagreementwillbeoffsetbythebenefitspayableaboveunderMr.Uihlein'sseveranceagreement.BenefitsunderthechangeincontrolagreementaresubjecttoMr.Uihleinsigningareleaseofclaims.

Inaddition,Mr.Uihlein'schangeincontrolagreementprovidesthattotheextentthatanyorallofthechangeincontrolpaymentsandbenefitsprovidedtoMr.Uihleinunderthechangeincontrolagreementconstitute"parachutepayments"withinthemeaningofSection280GoftheCodeandwouldotherwisebesubjecttotheexcisetaximposedbySection4999oftheCode,theCompanywillpayMr.UihleinanadditionalamountsuchthatthenetamountretainedbyMr.Uihleinafterthedeductionofanyexcise,federal,stateandlocalincometaxwillbeequaltothepaymentsheisentitledtounderthechangeincontrolagreement.However,ifthevalueofthepaymentsMr.Uihleinisentitledtodonotexceed330%ofthebaseamount,nogross-uppaymentwillbemadeandany

TableofContents

paymentsandbenefitswouldbereducedbytheminimumamountsnecessarytoequalonedollarlessthantheamountwhichwouldresultinsuchpaymentsandbenefitsbeingsubjecttosuchexcisetax,butonlyifthevalueofthereductionisequaltoorlessthan30%ofMr.Uihlein'sbasesalary.ForpurposesofthequantificationofpossiblepaymentsduetoMr.Uihleinineachofthescenariossetforthinthetableundertheheading"PotentialPaymentsUponTerminationorChangeinControl"above,itisassumedthatnoexcisetaxeswouldbeimposed.Assuch,theamountsinthetabledonotreflectagross-uppaymentwithrespecttoanyexcisetaximposedbySection4999oftheCode.

Underthechangeincontrolagreement,Mr.Uihleinhas"goodreason"toresignifhevoluntarilyterminateshisemploymentdueto(1)withoutMr.Uihlein'sexpresswrittenconsent,theassignmenttoMr.Uihleinofanydutiesinconsistentwithhispositions,duties,responsibilitiesandstatuswiththeCompanyatthetimeofachangeincontrol,orachangeinhisreportingresponsibilities,titlesorofficesasineffectatthetimeofachangeincontrol,oranyremovalofhimfrom,oranyfailuretore-electhimto,anyofsuchpositions,exceptinconnectionwiththeterminationofhisemploymentasaresultofhisdeathorbytheCompanyfordisabilityorcauseorbyMr.Uihleinotherthanforgoodreason;(2)areductionbytheCompanyinMr.Uihlein'sthencurrentbasesalary;(3)thefailureoftheCompanytosubstantiallymaintainandtocontinueMr.Uihlein'sparticipationintheCompany'sbenefitplansasineffectatthetimeofachangeincontrolandwithallsubsequentimprovements(otherthanthoseplansorimprovementsthathaveexpiredinaccordancewiththeiroriginalterms),orthetakingofanyactionwhichwouldmateriallyreduceMr.Uihlein'sbenefitsunderanyofsuchplansordepriveMr.Uihleinofanymaterialfringebenefitenjoyedbyhimatthetimeofachangeincontrol;(4)thetargetbonusawardedtoMr.UihleinundertheincentivecompensationplanoftheCompanysubsequenttoachangeincontrolbeinglessthansuchamountlastawardedtohimpriortoachangeincontrol;(5)thesumofMr.Uihlein'sbasesalaryandamountpaidtohimasincentivecompensationundertheincentivecompensationplanoftheCompanyforthecalendaryearinwhichthechangeincontroloccursoranysubsequentyearbeinglessthanthesumofhisbasesalaryandtheamountawarded(whetherornotfullypaid)tohimasincentivecompensationundertheincentivecompensationplanoftheCompanyforthecalendaryearpriortothechangeincontroloranysubsequentcalendaryearinwhichthesumofsuchamountswasgreater;(6)therelocationoftheofficesatwhichMr.Uihleinisemployedtoalocationmorethan35milesfromhislocationatthetimeofachangeincontrolortheCompanyrequiringMr.Uihleintobebasedanywhereotherthanatsuchoffices,exceptforrequiredtravelontheCompany'sbusinesstoanextentsubstantiallyconsistentwithUihlein'sbusinesstravelobligationsatthetimeofachangeincontrol;(7)thefailureoftheCompanytoprovideMr.Uihleinwithanumberofpaidvacationdaysatleastequaltothenumberofpaidvacationdaystowhichheisentitledatthetimeofchangeincontrol;(8)anypurportedterminationofMr.Uihlein'semploymentwhichisnoteffectedpursuanttoanoticeofterminationsatisfyingtherequirementsofhisagreement;or(9)Mr.Uihlein'sgoodfaithdeterminationthatduetoachangeincontrolheisnotableeffectivelytodischargehisduties.

Retirement, death or disability. Ifaparticipantretires,diesorbecomesdisabledduringaperformanceperiod,theparticipantwillbeeligibleforaproratedawardbasedonservicewhileanactiveparticipant(measuredinmonthswithapartialmonthroundedup)duringtheperformanceperiod,withpaymentoftheawardmadefollowingtheendoftheperformanceperiod.ForpurposesoftheLTIP,"retire"meanstoterminateemploymentonorafterattainingage55andcompletingatleasttenyearsofservicewiththeCompanyanditsaffiliates,and"disabled"meansdisabledasdefinedintheCompany'slongtermdisabilityplan.Ifaparticipant'semploymentwiththeCompanyandallofitsthen-currentaffiliatesisterminatedforcausepriortotheendofaperformanceperiod,noawardsforthatperiodwillbepaidundertheLTIP.

Change in control. Intheeventofachangeincontrol,alloutstandingawardsundertheLTIPwillbepaidoutassoonaspracticablefollowingsuchchangeincontrol(1)asifallperformanceperiods

TableofContents

havebeencompletedandbasedonactualperformancedatatotheextentavailableandtheCompany'sforecastintheperformanceoutlookreportfortheremainderoftheapplicableperformanceperiod,but(2)prorated(measuredinmonthswithapartialmonthroundedup)fortheportionofanyrelevantperformanceperiodendingonthedateofsuchchangeincontrol.UndertheLTIP,theterm"changeincontrol"hasthesamemeaningascribedtosuchtermintheSeverancePlan.

EAR Plan

UponaterminationotherthanforcauseonDecember31,2015,eachEARwillentitlethenamedexecutiveofficertoapaymentfromtheCompanywithrespecttosuchawardinanamountequaltothepositiveexcess(ifany)ofthevalueoftheEARonthedateoftheterminationlessthevalueofsuchEARonthedateofgrant(whichis$11.12perEAR,asadjustedfollowingthestocksplit).See"CompensationDiscussionandAnalysis—Componentsofthe2015ExecutiveCompensationProgram—AnalysisofLong-TermIncentives(LTIPandEARs)—EARs."

DirectorCompensation

For2015,wedidnotprovidedirectorcompensationtoournon-executivedirectors.Allofourdirectorsarereimbursedfortheirreasonableout-of-pocketexpensesrelatedtotheirservicesasamemberoftheboardofdirectorsofAcushnetHoldingsCorp.orAcushnetCompany.

TheboardofdirectorsofAcushnetHoldingsCorp.hasapprovedthefollowingannualcompensationforitsdirectorsimmediatelyfollowingthisoffering:

• Thechairpersonoftheboardofdirectorswillreceivea$110,000annualcashretainerpaidquarterlyinarrearsandanannualgrantofrestrictedstockunitswithafairmarketvalueatthetimeofgrantof$140,000.Suchrestrictedstockunitswillvestontheearlieroftheoneyearanniversaryofthegrantorthenextannualshareholders'meeting.

• Non-executiveboardmembers,otherthanthechairperson,willreceivea$70,000annualcashretainerpaidquarterlyinarrearsandanannualgrantofrestrictedstockunitswithafairmarketvalueofatthetimeofgrantof$100,000.Suchrestrictedstockunitswillvestontheearlieroftheoneyearanniversaryofthegrantorthenextannualshareholders'meeting.

• Theauditcommitteechairpersonwillreceiveanadditional$25,000annualcashretainer;thecompensationcommitteechairpersonwillreceiveanadditional$20,000annualcashretainerandthenominatingandcorporategovernancecommitteechairpersonwillreceiveanadditional$10,000annualcashretainer;ineachcasepaidquarterlyinarrears.

• Auditcommitteemembers,otherthantheauditcommitteechairperson,willreceiveanadditional$12,500annualcashretainer;compensationcommitteemembers,otherthanthecompensationcommitteechairperson,willreceiveanadditional$10,000annualcashretainerandnominatingandcorporategovernancecommitteemembers,otherthanthenominatingandcorporategovernancecommitteechairperson,willreceiveanadditional$5,000annualcashretainer;ineachcasepaidquarterlyinarrears.

OurboardofdirectorswilladopttheAcushnetHoldingsCorp.IndependentDirectorsDeferralPlan,whichgenerallypermitsnon-executivedirectorstheopportunitytodeferdeliveryofcommonstock(andassociatedincometaxes)followingthevestingofrestrictedstockunits.

EquityCompensationPlans.

Summary of our EAR Plan

AcushnetsponsorstheEARPlan,whichwaseffectiveasofAugust31,2011andamendedOctober17,2014andJune9,2015.NofurtherawardswillbegrantedundertheEARPlan.

TableofContents

Purpose. ThepurposeoftheEARPlanistoprovideameansthroughwhichcertainexecutiveofficersandotherkeyemployeesofAcushnetanditssubsidiariescanparticipateinthefuturesuccessandgrowthofAcushnetCompanyanditssubsidiaries.

Administration. TheEARPlanisadministeredbytheboardofdirectorsofAcushnetCompany.TheboardofdirectorsofAcushnetCompanymaymakeorrefrainfrommakingawards,establishrulesandregulationsfortheadministrationoftheEARPlan,andestablishthewrittenformstobeusedtoevidencesuchawards.TheboardofdirectorsofAcushnetCompanyhasfullauthoritytoconstrueandinterpretthetermsandprovisionsoftheEARPlanandanyawardshereunder,toadopt,alter,waiveandrepealsuchadministrativerules,guidelinesandpracticesgoverningtheEARPlanandtoperformallacts,includingthedelegationofitsadministrativeresponsibilitiesasitshall,fromtimetotime,deemadvisable,andtootherwisesupervisetheadministrationoftheEARPlan.Allsuchrules,regulationsandinterpretationsrelatingtotheEARPlanwhichareadoptedbytheboardofdirectorsofAcushnetCompanyshallbeconclusiveandbindingonallparties.TheboardofdirectorsofAcushnetCompanymaycorrectanydefect,supplyanyomissionorreconcileanyinconsistencyintheEARPlanorinanyawardgrantedhereunder,inthemannerandtotheextentitshalldeemnecessarytocarrytheEARPlanintoeffect.

Awards Granted Under the EAR Plan. AwardsundertheEARPlanconsistofcommonstockequivalents,whichrepresenttheappreciationinthevalueofashareofAcushnetHoldingsCorp.commonstockmeasuredfromtheapplicablegrantdatethroughthefirsttooccurofa(1)qualifyingtermination,(2)saleofAcushnetor(3)theexpirationdateoftheaward,whichisDecember31,2016(eacha"PayoutEvent").OnceaPayoutEventoccurswithrespecttoaparticipant'sEARs,suchEARswillbeconvertedintotherighttoreceiveanamountincaseequalto(1)thepositiveexcess(ifany)ofthevalueoftheEARdeterminedbasedontheapplicablePayoutEventlessthevalueoftheEARonthedateofgrant,multipliedby(2)thenumberofEARsthatarevestedandsubjecttosuchPayoutEvent;provideduponaPayoutEventresultingfromaqualifyingterminationorexpirationdateoccurringfollowinganinitialpublicoffering,theCompanymayelecttopayuptofiftypercentofthetotalpaymentinequitysecuritiesofthepubliclytradedentity.SuchpaymentistobepaidinalumpsumnolaterthanninetydaysfollowingtheeffectivetimeoftheapplicablePayoutEvent,butinnoeventmorethantwoandahalfmonthsfollowingtheendofthecalendaryearinwhichtheapplicablePayoutEventoccurred.Anynon-vestedEARsthatareheldbyaparticipantupontheoccurrenceoftheparticipant'sPayoutEventresultingfromaqualifyingterminationwillbeimmediatelyforfeitedbytheparticipantfornoconsideration.UpontheoccurrenceofaPayoutEventresultingfromthesaleofAcushnetCompany,100%oftheEARsawardedundertheEARPlanwillbeconsideredvestedattheeffectivetimeofsuchsaleofAcushnet.

Payout Value. ThevalueofanEARuponaPayoutEventisdeterminedasfollows:

• IftheapplicablepayouteventisasaleoftheCompany,thefinalvalueisthegreaterof(i)theamountdeterminedbytheCompany'sboardofdirectorsingoodfaithbasedonthetransactionconsiderationand(ii)theamountobtainedbydividing(x)10.8timesCompanyEBITDA(basedonthe12monthspriortothesale),withsuchmultipledecreasedbyCompanyindebtednessandincreasedbyCompanycash(andcashequivalents)andthecumulativeinterest,dividendsandfeespaidonorinrespectofConvertiblePreferredStock,ConvertibleNotesand7.5%bondsdue2021andanyotherinterest,dividends,distributionsorfeespaidtotheCompany'sstockholdersoveraspecifiedperiodendingatthedateofthesaleby(y)thenumberofsharesofAcushnetHoldingsCorp.commonstock,onafullydilutedbasis,asofthedateofthesaletransaction.

• Iftheapplicablepayouteventisaqualifyingtermination,thefinalvalueisgenerallytheamountobtainedbydividing(i)theEnterpriseValueforthefiscalyearendingimmediatelypriortothequalifyingterminationby(ii)thenumberofsharesofAcushnetHoldingsCorp.commonstock,onafullydilutedbasis,asofthedateofthequalifyingtermination;providedthatfollowingan

TableofContents

IPO,thefinalvalueisthegreaterof(x)suchamountand(y)avaluebasedontheaveragepershareclosingpriceofthepubliclytradedcommonstockforthefirstfullthreetradingdaysfollowingthepricingofthecommonstockintheIPO.

• Iftheapplicablepayouteventistheexpirationdate,thefinalvalueisthegreatestof:

• theEnterpriseValuebasedonEBITDAfor2015dividedbythenumberofsharesofAcushnetHoldingsCorp.commonstock,onafullydilutedbasis,asofDecember31,2015;

• theEnterpriseValuebasedonEBITDAfor2016dividedbythenumberofsharesofAcushnetHoldingsCorp.commonstock,onafullydilutedbasis,asofDecember31,2016;and

• ifanIPOhasoccurredpriortotheexpirationdate,avaluebasedontheaveragepershareclosingpriceofthepubliclytradedcommonstockforthefirstfullthreetradingdaysfollowingthepricingofthecommonstockintheIPO.

"EnterpriseValue"meansa10.8multipleofCompanyEBITDAfortherelevantfiscalyear,withsuchmultipledecreasedbyCompanyindebtednessandincreasedbyCompanycash(andcashequivalents)asofthelastdayoftherelevantfiscalyearandthecumulativeinterest,dividendsandfeespaidonorinrespectofConvertiblePreferredStock,ConvertibleNotesand7.5%bondsdue2021andanyotherinterest,dividends,distributionsorfeespaidtotheAcushnetHoldingCorp.stockholdersovertheperiodbeginningonMarch31,2011andendingonthelastdayoftherelevantfiscalyear.

Effect of Certain Events on EAR Plan and Awards. IntheeventofanychangeinthecapitalstructureoftheCompanyorAcushnetCompany(suchasbystockdividend,stocksplit,combination,orsimilartransaction),oranysaleofassets,merger,consolidation,combinationorothercorporatereorganizationorrestructuringoftheCompanyorAcushnetCompanynotresultinginthesaleoftheCompany,AcushnetCompany'sboardofdirectorsmustmakesuchreasonableandappropriateadjustmentsinthenumberofEARS,thevalueoftheawardonthedateofgrant,andthemannerinwhichthevalueoftheEARonthedateofthePayoutEventwillbesubsequentlydetermined,sothattheaggregateamountpotentiallypayablewithrespecttoeachoutstandingawardundertheEARPlanasofthetimeofsuchtransactionwillnotbechangedasaresultthereof.AnysuchadjustmentsdeterminedbytheAcushnetCompanyboardofdirectorsshallbebindingandconclusiveoneachparticipantandsuchparticipant'ssuccessors,assigns,heirsandlegalrepresentativesforallpurposes.

Nontransferability of Awards. RightsorinterestsinanyawardgrantedundertheEARPlanorinanyawardthereunderarenotassignableortransferablebyanyparticipantotherthantoadesignatedbeneficiaryintheeventofaparticipant'sdeath,andnorightsorinterestsoftheparticipantmaybepledgedormadesubjecttoanylien,claim,encumbrance,obligationorliabilityofaparticipantwithouttheCompany'spriorconsent.

Tax Withholding. AnypaymentstobemadeundertheEARPlanwillbenetofanytaxesrequiredbylawortobewithheldwithrespecttosuchpayment.IfAcushnetisrequiredtowithholdanytaxesinconnectionwithanyEARsawardedtoaparticipantpriortothedateonwhichthepaymentsareotherwisetobemadetoaparticipantundertheEARPlan,theparticipantagreesthatAcushnetwillhavetherighttowithholdsuchtaxesfromtheparticipant'sbasesalaryorotheravailablecashcompensation,ortootherwiserequiretheparticipanttoprovideAcushnetwithapaymentintheamountofsuchrequiredwithholdingtaxes.

Amendment and Termination. AcushnetCompany'sboardofdirectorsmayamendtheEARPlaninanyrespect,subjecttoanyrequirementofstockholderapprovalrequiredbyapplicablelaw,regulation,oragreement,ormayterminatetheEARPlan.However,noamendmentmayadverselyaffectaparticipant'srightswithrespecttoanyEARswithouttheconsentoftheparticipant.

TableofContents

Summary of our 2015 Incentive Plan

OnJanuary22,2016,theCompany'sboardofdirectorsadoptedandstockholdersapproved,theAcushnetHoldingsCorp.2015IncentivePlan,whichwerefertoasour2015IncentivePlan.

Purpose. Thepurposeofthe2015IncentivePlanistoprovideameansthroughwhichtoattractandretainkeypersonnelandtoprovideameanswherebyourdirectors,officers,employees,consultantsandadvisors(andprospectivedirectors,officers,employees,consultantsandadvisors)canacquireandmaintainanequityinterestinus,orbepaidincentivecompensation,includingincentivecompensationmeasuredbyreferencetothevalueofourcommonstock,therebystrengtheningtheircommitmenttoourwelfareandaligningtheirinterestswiththoseofourstockholders.

Administration. Our2015IncentivePlanisadministeredbytheCompany'sboardofdirectorsandtheCompany'scompensationcommittee(each,asapplicable,the"Administrator").TheAdministratorhasthesoleandplenaryauthoritytoestablishthetermsandconditionsofanyaward,consistentwiththeprovisionsofour2015IncentivePlan.TheAdministratorisauthorizedtointerpret,administer,reconcileanyinconsistencyin,correctanydefectinand/orsupplyanyomissioninour2015IncentivePlanandanyinstrumentoragreementrelatingto,oranyawardgrantedunder,our2015IncentivePlan;establish,amend,suspend,orwaiveanyrulesandregulationsandappointsuchagentsastheAdministratordeemsappropriatefortheproperadministrationofour2015IncentivePlan;andtomakeanyotherdeterminationandtakeanyotheractionthattheAdministratordeemsnecessaryordesirablefortheadministrationofour2015IncentivePlan.Excepttotheextentprohibitedbyapplicablelawortheapplicablerulesandregulationsofanysecuritiesexchangeorinter-dealerquotationsystemonwhichoursecuritiesarelistedortraded,theAdministratormayallocatealloranyportionofitsresponsibilitiesandpowerstoanyoneormoreofitsmembersandmaydelegatealloranypartofitsresponsibilitiesandpowerstoanypersonorpersonsselectedbyitinaccordancewiththetermsofour2015IncentivePlan.AnysuchallocationordelegationmayberevokedbytheAdministratoratanytime.Unlessotherwiseexpresslyprovidedinour2015IncentivePlan,alldesignations,determinations,interpretations,andotherdecisionsunderorwithrespecttoour2015IncentivePlanoranyawardoranydocumentsevidencingawardsgrantedpursuanttoour2015IncentivePlanarewithinthesolediscretionoftheAdministrator,maybemadeatanytimeandarefinal,conclusiveandbindinguponallpersonsorentities,including,withoutlimitation,us,anyparticipant,anyholderorbeneficiaryofanyaward,andanyofourstockholders.

Shares Subject to our 2015 Incentive Plan. Our2015IncentivePlanprovidesthatthetotalnumberofsharesofcommonstockthatmaybeissuedunderour2015IncentivePlanis8,190,000.Ofthisamount,themaximumnumberofsharesforwhichincentivestockoptionsmaybegrantedis8,190,000;themaximumnumberofsharesforwhichoptionsorstockappreciationrightsmaybegrantedtoanyindividualparticipantduringanysinglefiscalyearis1,485,000;themaximumnumberofsharesforwhichperformancecompensationawardsdenominatedinsharesmaybegrantedtoanyindividualparticipantinrespectofasinglefiscalyearis1,485,000(orifanysuchawardsaresettledincash,themaximumamountmaynotexceedthefairmarketvalueofsuchsharesonthelastdayoftheperformanceperiodtowhichsuchawardrelates);themaximumnumberofsharesofcommonstockgrantedduringasinglefiscalyeartoanynon-employeedirector,takentogetherwithanycashfeespaidtosuchnon-employeedirectorduringthefiscalyear,willnotexceed$1,000,000intotalvalue;andthemaximumamountthatmaybepaidtoanyindividualparticipantforasinglefiscalyearunderaperformancecompensationawarddenominatedincashis$10,000,000.Exceptforsubstituteawards(asdescribedbelow),intheeventanyawardexpiresoriscanceled,forfeited,terminated,lapses,orotherwisesettleswithoutthedeliveryofthefullnumberofsharessubjecttosuchaward,includingasaresultofnetsettlementoftheawardorasaresultoftheawardbeingsettledincash,theundeliveredsharesmaybegrantedagainunderour2015IncentivePlan,unlessthesharesaresurrenderedaftertheterminationofour2015IncentivePlan,andonlyifstockholderapprovalisnotrequiredunderthethen-applicablerulesoftheexchangeonwhichthesharesofcommonstockarelisted.Priortothis

TableofContents

offering,theAdministratoralsohadthediscretiontorequireaparticipantinour2015IncentivePlantobecomeapartytotheCompany'sStockholders'Agreementasaconditiontothegrant,vestingand/orexerciseofanawardunderthis2015IncentivePlan.Awardsmay,inthesolediscretionoftheAdministrator,begrantedinassumptionof,orinsubstitutionfor,outstandingawardspreviouslygrantedbyanentitydirectlyorindirectlyacquiredbyusorwithwhichwecombine(referredtoas"substituteawards"),andsuchsubstituteawardswillnotbecountedagainstthetotalnumberofsharesthatmaybeissuedunderour2015IncentivePlan,exceptthatsubstituteawardsintendedtoqualifyas"incentivestockoptions"willcountagainstthelimitonincentivestockoptionsdescribedabove.Noawardmaybegrantedunderour2015IncentivePlanafterthetenthanniversaryoftheeffectivedateoftheplan,butawardstheretoforegrantedmayextendbeyondthatdate.

Options. TheAdministratormaygrantnon-qualifiedstockoptionsandincentivestockoptions,underour2015IncentivePlan,withtermsandconditionsdeterminedbytheAdministratorthatarenotinconsistentwithour2015IncentivePlan;provided ,thatallstockoptionsgrantedunderour2015IncentivePlanarerequiredtohaveapershareexercisepricethatisnotlessthan100%ofthefairmarketvalueofourcommonstockunderlyingsuchstockoptionsonthedatesuchstockoptionsaregranted(otherthaninthecaseofoptionsthataresubstituteawards),andallstockoptionsthatareintendedtoqualifyasincentivestockoptionsmustbegrantedpursuanttoanawardagreementexpresslystatingthattheoptionsareintendedtoqualifyasincentivestockoptions,andwillbesubjecttothetermsandconditionsthatcomplywiththerulesasmaybeprescribedbySection422oftheCode.Themaximumtermforstockoptionsgrantedunderour2015IncentivePlanwillbetenyearsfromtheinitialdateofgrant,orwithrespecttoanystockoptionsintendedtoqualifyasincentivestockoptions,suchshorterperiodasprescribedbySection422oftheCode.However,ifanon-qualifiedstockoptionwouldexpireatatimewhentradingofsharesofcommonstockisprohibitedbyourinsidertradingpolicy(or"blackoutperiod"imposedbyus),thetermwillautomaticallybeextendedtothe30thdayfollowingtheendofsuchperiod.Thepurchasepriceforthesharesastowhichastockoptionisexercisedmaybepaidtous,totheextentpermittedbylaw,(i)incashoritsequivalentatthetimethestockoptionisexercised;(ii)inshareshavingafairmarketvalueequaltotheaggregateexercisepriceforthesharesbeingpurchasedandsatisfyinganyrequirementsthatmaybeimposedbytheAdministrator;or(iii)bysuchothermethodastheAdministratormaypermitinitssolediscretion,including,withoutlimitation,(A)inotherpropertyhavingafairmarketvalueonthedateofexerciseequaltotheexerciseprice,(B)ifthereisapublicmarketforthesharesatsuchtime,throughthedeliveryofirrevocableinstructionstoabrokertosellthesharesbeingacquiredupontheexerciseofthestockoptionandtodelivertoustheamountoftheproceedsofsuchsaleequaltotheaggregateexercisepriceforthesharesbeingpurchasedor(C)througha"netexercise"procedureeffectedbywithholdingtheminimumnumberofsharesneededtopaytheexerciseprice.Anyfractionalsharesofcommonstockwillbesettledincash.

Stock Appreciation Rights. TheAdministratormaygrantstockappreciationrights,withtermsandconditionsdeterminedbytheAdministratorthatarenotinconsistentwithour2015IncentivePlan.Generally,eachstockappreciationrightwillentitletheparticipantuponexercisetoanamount(incash,sharesoracombinationofcashandshares,asdeterminedbytheAdministrator)equaltotheproductof(i)theexcessof(A)thefairmarketvalueontheexercisedateofoneshareofcommonstock,over(B)thestrikepricepershare,times(ii)thenumberofsharesofcommonstockcoveredbythestockappreciationright.ThestrikepricepershareofastockappreciationrightwillbedeterminedbytheAdministratoratthetimeofgrantbutinnoeventmaysuchamountbelessthanthefairmarketvalueofashareofcommonstockonthedatethestockappreciationrightisgranted(otherthaninthecaseofstockappreciationrightsgrantedinsubstitutionofpreviouslygrantedawards).

Restricted Shares and Restricted Stock Units. TheAdministratormaygrantrestrictedsharesofourcommonstockorrestrictedstockunits,representingtherighttoreceive,upontheexpirationoftheapplicablerestrictedperiod,oneshareofcommonstockforeachrestrictedstockunit,or,inthesole

TableofContents

discretionoftheAdministrator,thecashvaluethereof(oranycombinationthereof).Astorestrictedsharesofourcommonstock,subjecttotheotherprovisionsofour2015IncentivePlan,theholderwillgenerallyhavetherightsandprivilegesofastockholderastosuchrestrictedsharesofcommonstock,including,withoutlimitation,therighttovotesuchrestrictedsharesofcommonstock(except,thatifthelapsingofrestrictionswithrespecttosuchrestrictedsharesofcommonstockiscontingentonsatisfactionofperformanceconditionsotherthan,orinadditionto,thepassageoftime,anydividendspayableonsuchrestrictedsharesofcommonstockwillberetained,anddeliveredwithoutinteresttotheholderofsuchshareswhentherestrictionsonsuchshareslapse).Totheextentprovidedintheapplicableawardagreement,theholderofoutstandingrestrictedstockunitswillbeentitledtobecreditedwithdividendequivalentpayments(uponthepaymentbyusofdividendsonsharesofcommonstock)eitherincashor,atthesolediscretionoftheAdministrator,insharesofcommonstockhavingavalueequaltotheamountofsuchdividends(andinterestmay,atthesolediscretionoftheAdministrator,becreditedontheamountofcashdividendequivalentsatarateandsubjecttosuchtermsasdeterminedbytheAdministrator),whichwillbepayableatthesametimeastheunderlyingrestrictedstockunitsaresettledfollowingthereleaseofrestrictionsonsuchrestrictedstockunits.

Other Stock-Based and Cash-Based Awards. TheAdministratormayissueunrestrictedcommonstock,rightstoreceivegrantsofawardsatafuturedate,awardsthatarenotstockappreciationrightsorrestrictedstockunitsorotherawardsdenominatedinsharesofcommonstock(including,withoutlimitation,performancesharesorperformanceunits)underour2015IncentivePlan,includingperformance-basedawards,withtermsandconditionsdeterminedbytheAdministratorthatarenotinconsistentwithour2015IncentivePlan.

Performance Compensation Awards. Followingthisoffering,theAdministratormayalsodesignateanyawardasa"performancecompensationaward"intendedtoqualifyas"performance-basedcompensation"underSection162(m)oftheCode.TheAdministratoralsohastheauthoritytomakeanawardofacashincentivetoanyparticipantanddesignatesuchawardasaperformancecompensationawardunderour2015IncentivePlan.TheAdministratorhasthesolediscretiontoselectthelengthofanyapplicableperformanceperiods,thetypesofperformancecompensationawardstobeissued,theapplicableperformancecriteriaandperformancegoals,andthekindsand/orlevelsofperformancegoalsthataretoapply.Theperformancecriteriathatwillbeusedtoestablishtheperformancegoalsmaybebasedontheattainmentofspecificlevelsofourperformance(and/oroneormoreaffiliates,divisionsoroperationaland/orbusinessunits,productlines,brands,businesssegments,administrativedepartments,oranycombinationoftheforegoing)andarelimitedtothefollowing:(i)netearnings,netincome(beforeoraftertaxes)orconsolidatednetincome;(ii)basicordilutedearningspershare(beforeoraftertaxes);(iii)netrevenueornetrevenuegrowth;(iv)grossrevenueorgrossrevenuegrowth,grossprofitorgrossprofitgrowth;(v)netoperatingprofit(beforeoraftertaxes);(vi)returnmeasures(including,butnotlimitedto,returnoninvestment,assets,capital,employedcapital,investedcapital,equity,orsales);(vii)cashflowmeasures(including,butnotlimitedto,operatingcashflows,freecashflows,orcashflowsreturnoncapital),whichmaybutarenotrequiredtobemeasuredonapersharebasis;(viii)actualoradjustedearningsbeforeorafterinterest,taxes,depreciationand/oramortization(includingEBITandEBITDA);(ix)grossornetoperatingmargins;(x)productivityratios;(xi)shareprice(including,butnotlimitedto,growthmeasuresandtotalstockholderreturn);(xii)expensetargetsorcostreductiongoals,generalandadministrativeexpensesavings;(xiii)operatingefficiency;(xiv)objectivemeasuresofcustomer/clientsatisfaction;(xv)workingcapitaltargets;(xvi)measuresofeconomicvalueaddedorother'valuecreation'metrics;(xvii)enterprisevalue;(xviii)sales;(xix)stockholderreturn;(xx)customer/clientretention;(xxi)competitivemarketmetrics;(xxii)employeeretention;(xxiii)objectivemeasuresofpersonaltargets,goalsorcompletionofprojects(includingbutnotlimitedtosuccessionandhiringprojects,completionofspecificacquisitions,dispositions,reorganizationsorothercorporatetransactionsorcapital-raisingtransactions,expansionsofspecificbusinessoperationsandmeetingdivisionalorprojectbudgets);(xxiv)comparisonsofcontinuingoperationstootheroperations;(xxv)marketshare;

TableofContents

(xxvi)costofcapital,debtleverageyear-endcashpositionorbookvalue;(xxvii)strategicobjectives;(xxviii)freecashflowbeforedebtservice;(xxix)workingcapitalefficiencyor(xxx)anycombinationoftheforegoing.Anyoneormoreoftheperformancecriteriamaybestatedasapercentageofanotherperformancecriteria,orusedonanabsoluteorrelativebasistomeasureourperformanceasawholeoranyofourdivisionsoroperationaland/orbusinessunits,productlines,brands,businesssegments,administrativedepartmentsoranycombinationthereofastheAdministratormaydeemappropriate,oranyoftheaboveperformancecriteriamaybecomparedtotheperformanceofaselectedgroupofcomparisoncompaniesorapublishedorspecialindexthattheAdministrator,initssolediscretion,deemsappropriate,orascomparedtovariousstockmarketindices.UnlessotherwisedeterminedbytheAdministratoratthetimeaperformancecompensationawardisgranted,theAdministratorwill,duringthefirst90daysofaperformanceperiod(or,withinanyothermaximumperiodallowedunderSection162(m)oftheCode)oratanytimethereaftertotheextenttheexerciseofsuchauthorityatsuchtimewouldnotcausetheperformancecompensationawardsgrantedtoanyparticipantforsuchperformanceperiodtofailtoqualifyas"performance-basedcompensation"underSection162(m)oftheCode,specifyadjustmentsormodificationstobemadetothecalculationofaperformancegoalforsuchperformanceperiod,basedonandtoappropriatelyreflectthefollowingevents:(1)assetwrite-downs;(2)litigationorclaimjudgmentsorsettlements;(3)theeffectofchangesintaxlaws,accountingprinciples,orotherlawsorregulatoryrulesaffectingreportedresults;(4)anyreorganizationandrestructuringprograms;(5)extraordinarynonrecurringitemsasdescribedinAccountingStandardsCodificationTopic225-20(oranysuccessorpronouncementthereto)and/orinmanagement'sdiscussionandanalysisoffinancialconditionandresultsofoperationsappearinginourannualreporttostockholdersfortheapplicableyear;(6)acquisitionsordivestitures;(7)anyotherspecific,unusualornonrecurringevents,orobjectivelydeterminablecategorythereof;(8)foreignexchangegainsandlosses;(9)discontinuedoperationsandnonrecurringcharges;and(10)achangeinourfiscalyear.

Followingthecompletionofaperformanceperiod,theAdministratorwillreviewandcertifyinwritingwhether,andtowhatextent,theperformancegoalsfortheperformanceperiodhavebeenachievedand,ifso,calculateandcertifyinwritingthatamountoftheperformancecompensationawardsearnedfortheperiodbasedupontheperformanceformula.Indeterminingtheactualamountofanindividualparticipant'sperformancecompensationawardforaperformanceperiod,theAdministratorhasthediscretiontoreduceoreliminatetheamountoftheperformancecompensationawardconsistentwithSection162(m)oftheCode.Unlessotherwiseprovidedintheapplicableawardagreement,theAdministratordoesnothavethediscretionto(A)grantorprovidepaymentinrespectofperformancecompensationawardsforaperformanceperiodiftheperformancegoalsforsuchperformanceperiodhavenotbeenattained;or(B)increaseaperformancecompensationawardabovetheapplicablelimitationssetforthinthe2015IncentivePlan.

Effect of Certain Events on 2015 Incentive Plan and Awards. Intheeventof(a)anydividend(otherthanregularcashdividends)orotherdistribution(whetherintheformofcash,sharesofcommonstock,othersecuritiesorotherproperty),recapitalization,stocksplit,reversestocksplit,reorganization,merger,consolidation,split-up,split-off,spin-off,combination,repurchaseorexchangeofoursharesofcommonstockorothersecurities,issuanceofwarrantsorotherrightstoacquireoursharesofcommonstockorothersecurities,orothersimilarcorporatetransactionorevent(including,withoutlimitation,achangeincontrol,asdefinedinour2015IncentivePlan)thataffectsthesharesofcommonstock,or(b)unusualornonrecurringevents(including,withoutlimitation,achangeincontrol)affectingus,anyaffiliate,orthefinancialstatementsofusoranyaffiliate,orchangesinapplicablerules,rulings,regulationsorotherrequirementsofanygovernmentalbodyorsecuritiesexchangeorinter-dealerquotationsystem,accountingprinciplesorlaw,suchthat,ineithercase,anadjustmentisdeterminedbytheAdministratorinitssolediscretiontobenecessaryorappropriate,thentheAdministratormustmakeanysuchadjustmentsinsuchmannerasitmaydeemequitable,including,withoutlimitation,anyorallof:(i)adjustinganyorallof(A)thesharelimitsapplicableunderour2015IncentivePlanwithrespecttothenumberofawardswhichmaybegrantedthereunder;

TableofContents

(B)thenumberofoursharesofcommonstockorothersecuritieswhichmaybeissuedinrespectofawardsorwithrespecttowhichawardsmaybegrantedunderour2015IncentivePlanand(C)thetermsofanyoutstandingaward,including,withoutlimitation,(1)thenumberofsharesofcommonstockorothersecuritiessubjecttooutstandingawardsortowhichoutstandingawardsrelate(withanyincreaserequiringtheapprovalofourboardofdirectors),(2)theexercisepriceorstrikepricewithrespecttoanyawardor(3)anyapplicableperformancemeasures;(ii)providingforasubstitutionorassumptionofawards,acceleratingtheexercisabilityof,lapseofrestrictionson,orterminationof,awardsorprovidingforaperiodoftimeforparticipantstoexerciseoutstandingawardspriortotheoccurrenceofsuchevent;and(iii)cancellinganyoneormoreoutstandingawardsandcausingtobepaidtotheholdersholdingvestedawards(includinganyawardsthatwouldvestasaresultoftheoccurrenceofsucheventbutforsuchcancellation)thevalueofsuchawards,ifany,asdeterminedbytheAdministrator(whichifapplicablemaybebaseduponthepricepershareofcommonstockreceivedortobereceivedbyotherstockholdersinsuchevent),including,withoutlimitation,inthecaseofoptionsandstockappreciationrights,acashpaymentequaltotheexcess,ifany,ofthefairmarketvalueofthesharesofcommonstocksubjecttotheoptionorstockappreciationrightovertheaggregateexercisepriceorstrikepricethereof.Fortheavoidanceofdoubt,theAdministratormaycancelanystockoptionorstockappreciationrightfornoconsiderationifthefairmarketvalueofthesharessubjecttosuchoptionorstockappreciationrightislessthanorequaltotheaggregateexercisepriceorstrikepriceofsuchstockoptionorstockappreciationright.

Nontransferability of Awards. Anawardwillnotbetransferableorassignablebyaparticipantotherthanbywillorbythelawsofdescentanddistributionandanysuchpurportedassignment,alienation,pledge,attachment,sale,transferorencumbrancewillbevoidandunenforceableagainstusoranyaffiliate.However,theAdministratormay,initssolediscretion,permitawards(otherthanincentivestockoptions)tobetransferred,includingtransferstoaparticipant'sfamilymembers,anytrustestablishedsolelyforthebenefitofaparticipantorsuchparticipant'sfamilymembers,anypartnershiporlimitedliabilitycompanyofwhichaparticipantorsuchparticipantandsuchparticipant'sfamilymembers,arethesolemember(s),andabeneficiarytowhomdonationsareeligibletobetreatedas"charitablecontributions"fortaxpurposes.

Amendment and Termination. Ourboardofdirectorsmayamend,alter,suspend,discontinue,orterminateour2015IncentivePlanoranyportionthereofatanytime;provided ,thatnosuchamendment,alteration,suspension,discontinuationorterminationmaybemadewithoutstockholderapprovalif(i)suchapprovalisnecessarytocomplywithanyregulatoryrequirementapplicabletoour2015IncentivePlanorforchangesinGAAPtonewaccountingstandards;(ii)itwouldmateriallyincreasethenumberofsecuritieswhichmaybeissuedunderour2015IncentivePlan(exceptforadjustmentsinconnectionwithcertaincorporateevents)or(iii)itwouldmateriallymodifytherequirementsforparticipationinour2015IncentivePlan;provided ,further ,thatanysuchamendment,alteration,suspension,discontinuanceorterminationthatwouldmateriallyandadverselyaffecttherightsofanyparticipantoranyholderorbeneficiaryofanyawardwillnot,tothatextent,beeffectivewithoutsuchindividual'sconsent.

TheAdministratormayalso,totheextentconsistentwiththetermsofanyapplicableawardagreement,waiveanyconditionsorrightsunder,amendanytermsof,oralter,suspend,discontinue,cancelorterminate,anyawardgrantedortheassociatedawardagreement,prospectivelyorretroactively,subjecttotheconsentoftheaffectedparticipantifanysuchwaiver,amendment,alteration,suspension,discontinuance,cancellationorterminationwouldmateriallyandadverselyaffecttherightsofanyparticipantwithrespecttosuchaward;provided ,thatwithoutstockholderapproval,exceptasotherwisepermittedinour2015IncentivePlan,(i)noamendmentormodificationmayreducetheexercisepriceofanyoptionorthestrikepriceofanystockappreciationright;(ii)theAdministratormaynotcancelanyoutstandingoptionorstockappreciationrightandreplaceitwithanewoptionorstockappreciationright(withalowerexercisepriceorstrikeprice,asthecasemaybe)

TableofContents

orotherawardorcashpaymentthatisgreaterthantheintrinsicvalue(ifany)ofthecancelledoptionorstockappreciationrightand(iii)theAdministratormaynottakeanyotheractionwhichisconsidereda"repricing"forpurposesofthestockholderapprovalrulesofanysecuritiesexchangeorinter-dealerquotationsystemonwhichoursecuritiesarelistedorquoted.

Dividends and Dividend Equivalents. TheAdministrator,initssolediscretion,mayprovidepartofanawardwithdividendsordividendequivalents,onsuchtermsandconditionsasmaybedeterminedbytheAdministratorinitssolediscretion;provided ,thatnodividendsordividendequivalentswillbepayableinrespectofoutstanding(i)optionsorstockappreciationrightsor(ii)unearnedperformancecompensationawardsorotherunearnedawardssubjecttoperformanceconditions(otherthanorinadditiontothepassageoftime)(althoughdividendsordividendequivalentsmaybeaccumulatedinrespectofunearnedawardsandpaidwithin15daysaftersuchawardsareearnedandbecomepayableordistributable).

Call Rights and Put Rights. Priortothisoffering,anawardagreementcouldprovideforcallrightsand/orputrightsinamountsandtermsasdeterminedbytheAdministratorinitssolediscretion.

Clawback/Forfeiture. AnawardagreementmayprovidethattheAdministratormay,initssolediscretion,cancelsuchawardiftheparticipant,whileemployedbyorprovidingservicestousoranyaffiliateorafterterminationofsuchemploymentorservice,violatesanon-competition,non-solicitationornon-disclosurecovenantoragreementorotherwisehasengagedinorengagesinotherdetrimentalactivitythatisinconflictwithoradversetoourinterestsortheinterestsofanyaffiliate,includingfraudorconductcontributingtoanyfinancialrestatementsorirregularities,asdeterminedbytheAdministratorinitssolediscretion.TheAdministratormayalsoprovideinanawardagreementthatiftheparticipantotherwisehasengagedinorengagesinanyactivityreferredtointheprecedingsentence,suchparticipantwillforfeitanygainrealizedonthevestingorexerciseofsuchaward,andmustrepaythegaintotheCompany.Withoutlimitingtheforegoing,allawardswillbesubjecttoreduction,cancellation,forfeitureorrecoupmenttotheextentnecessarytocomplywithapplicablelaw.

Federal Income Tax Consequences Relating to Awards Granted Pursuant to the EAR Plan and 2015 Incentive Plan

ThefollowingsummarybrieflydescribescurrentU.S.federalincometaxconsequencestoaparticipantwhoisacitizenorresidentoftheUnitedStatesundertheEARPlanandthe2015IncentivePlan.ThisdiscussionisbasedontheCode,itslegislativehistory,regulationsthereunderandadministrativeandjudicialinterpretationsthereof,asofthedatehereof.WehavenotobtainedataxrulingorotherconfirmationfromtheU.S.InternalRevenueService(the"IRS")withregardtothisinformation,anditispossiblethattheIRSmaytakeadifferentposition.ThesummaryisnotadetailedorcompletedescriptionofallU.S.federaltaxlawsorregulationsthatmayapplyanddoesnotaddressanylocal,stateorothercountrylaws.Therefore,nooneshouldrelyonthissummaryforindividualtaxcompliance,planningordecisions.ParticipantsintheEARPlanand2015IncentivePlanareencouragedtoconsultwiththeirownprofessionaltaxadvisorsconcerningtaxaspectsofrightsundertheEARPlanand2015IncentivePlanandshouldbeawarethattaxlawsmaychangeatanytime.

Stock Options

AparticipanttowhomanincentivestockoptionthatqualifiesunderSection422oftheCodeisgrantedgenerallywillnotrecognizeincomeatthetimeofgrantorexerciseofsuchoption(althoughspecialalternativeminimumtaxrulesmayapplytotheparticipantuponoptionexercise).NofederalincometaxdeductionwillbeallowabletotheCompanyuponthegrantorexerciseofsuchincentivestockoption.

TableofContents

Whentheparticipantsellssharesacquiredthroughtheexerciseofanincentivestockoptionmorethanoneyearafterthedateoftransferofsuchsharesandmorethantwoyearsafterthedateofgrantofsuchincentivestockoption,theparticipantwillnormallyrecognizealong-termcapitalgainorlossequaltothedifference,ifany,betweenthesalepricesofsuchsharesandtheoptionprice,forwhichtheCompanyisnotentitledtoafederalincometaxdeduction.Iftheparticipantdoesnotholdsuchsharesforthisperiod,whentheparticipantsellssuchshares,theparticipantwillrecognizeordinarycompensationincomeandpossiblycapitalgainorlossinsuchamountsasareprescribedbytheCodeandregulationsthereunder,andtheCompanywillgenerallybeentitledtoafederalincometaxdeductionintheamountofsuchordinarycompensationincome.

Aparticipanttowhomanoptionthatisnotanincentivestockoption(a"non-qualifiedoption")isgrantedwillnotrecognizeincomeatthetimeofgrantofsuchoption.Whensuchparticipantexercisesanon-qualifiedoption,theparticipantwillrecognizeordinarycompensationincomeequaltotheexcess,ifany,ofthefairmarketvalueasofthedateofanon-qualifiedoptionexerciseofthesharestheparticipantreceives,overtheoptionexerciseprice.Thetaxbasisofsuchshareswillbeequaltotheexercisepricepaidplustheamountincludableintheparticipant'sgrossincome,andtheparticipant'sholdingperiodforsuchshareswillcommenceonthedayafterwhichtheparticipantrecognizedtaxableincomeinrespectofsuchshares.SubjecttoapplicableprovisionsoftheCodeandregulationsthereunder,theCompanywillgenerallybeentitledtoafederalincometaxdeductioninrespectoftheexerciseofnon-qualifiedoptionsinanamountequaltotheordinarycompensationincomerecognizedbytheparticipant.AnygainorlossrecognizeduponasubsequentsaleorexchangeofthesharesistreatedascapitalgainorlossforwhichtheCompanyisnotentitledtoadeduction.Anysuchcompensationincludableinthegrossincomeofaparticipantinrespectofanon-qualifiedoptionwillbesubjecttoappropriatefederal,state,localandforeignincomeandemploymenttaxes.

Stock Appreciation Rights and Equity Appreciation Rights

Nofederalincometaxliabilitywillberealizedbyaholderuponthegrantofastockappreciationrightorequityappreciationright.Upontheexerciseofastockappreciationrightorpaymentinrespectofanequityappreciationright,theholderwillrecognizeordinaryincomeinanamountequaltothefairmarketvalueofthesharesofstockorcashpaymentreceivedinrespectofthestockappreciationrightorequityappreciationright.Wewillbeabletodeductthissameamountforfederalincometaxpurposes,butsuchdeductionmaybelimitedunderSections280Gand162(m)oftheCodeforcompensationpaidtocertainexecutivesdesignatedinthoseSectionsoftheCode.Anygainorlossrecognizeduponasubsequentsaleorexchangeofthesharesistreatedascapitalgainorloss,asapplicable,forwhichwearenotentitledtoadeduction.

Restricted Stock

UnlessanelectionismadebytheparticipantunderSection83(b)oftheCode,thegrantofanawardofrestrictedstockwillhavenoimmediatetaxconsequencestotheparticipant,andtheCompanywillnotbeallowedataxdeductionatthetimetherestrictedstockaregranted.Generally,uponthelapseofrestrictions(asdeterminedbytheapplicablerestrictedstockagreementbetweentheparticipantandtheCompany),aparticipantwillrecognizeordinaryincomeinanamountequaltotheproductof(1)thefairmarketvalueofashareoftheCompanyonthedateonwhichtherestrictionslapse,lessanyamountpaidwithrespecttotheawardofrestrictedstock,multipliedby(2)thenumberofrestrictedstockwithrespecttowhichrestrictionslapseonsuchdate.Theparticipant'staxbasiswillbeequaltothesumoftheamountofordinaryincomerecognizeduponthelapseofrestrictionsandanyamountpaidforsuchrestrictedstock.Theparticipant'sholdingperiodfortaxpurposeswillcommenceonthedateonwhichtherestrictionslapse.

AparticipantmaymakeanelectionunderSection83(b)oftheCodewithin30daysafterthedateofgrantofanawardofrestrictedstocktorecognizeordinaryincomeonthedateofawardbasedonthefairmarketvalueofordinarysharesoftheCompanyonsuchdate,lessanyamounttheparticipant

TableofContents

paidforthecommonstock,andtheCompanywillbeallowedacorrespondingtaxdeductionatthattime.Aparticipantmakingsuchanelectionwillhaveataxbasisintherestrictedstockequaltothesumoftheamounttheparticipantrecognizesasordinaryincomeandanyamountpaidforsuchrestrictedstock,andtheparticipant'sholdingperiodforsuchrestrictedstockfortaxpurposeswillcommenceonthedateaftersuchdate.Anyfutureappreciationinthecommonstockwillbetaxabletotheparticipantatcapitalgainsrates.However,iftherestrictedstockawardislaterforfeited,theparticipantwillnotbeabletorecoverthetaxpreviouslypaidpursuanttotheparticipant'sSection83(b)election.

Withrespecttorestrictedstockuponwhichrestrictionshavelapsed,whentheparticipantsellssuchshares,theparticipantwillrecognizecapitalgainorlossconsistentwiththetreatmentofthesaleofsharesreceivedupontheexerciseofnon-qualifiedoptions,asdescribedabove.

Restricted Stock Units

Aparticipanttowhomarestrictedstockunitisgrantedgenerallywillnotrecognizeincomeatthetimeofgrant(althoughtheparticipantmaybecomesubjecttoemploymenttaxeswhentherighttoreceivesharesbecomes"vested"duetoretirementeligibilityorotherwise).UpondeliveryofordinarysharesoftheCompanyorcashinrespectofarestrictedstockunit,aparticipantwillrecognizeordinaryincomeinanamountequaltotheamountofcashortheproductof(1)thefairmarketvalueofashareoftheCompanyonthedateonwhichtheordinarysharesoftheCompanyaredelivered,multipliedby(2)thenumberofordinarysharesoftheCompanydelivered.Anygainorlossrecognizeduponasubsequentsaleorexchangeofthestock(ifsettledinstock)istreatedascapitalgainorlossforwhichtheCompanyisnotentitledtoadeduction.

Performance Compensation Awards

Performancecompensationawardsgrantedintheformofstockoptions,restrictedstockorrestrictedstockunitswillbetaxableinthesamemannerasdescribedabovewithrespecttoanyparticularformofaward.Generally,whenaperformancecompensationawarddenominatedincashisgranted,therearenoincometaxconsequencestotheparticipant.Uponpaymentofcashinrespectofsuchaward,theparticipantwillrecognizecompensationequaltotheamountofcashreceived.

Taxableincomeaparticipantrecognizesfromtheparticipant'sperformancecompensationawardissubjecttofederalincometaxwithholding,aswellasanyapplicablestateandlocalincometaxwithholding.FICAtaxes,whichconsistofSocialSecurityandMedicaretaxes,mustbewithheldbasedontheamountofcashreceived.

Other Stock-Based and Cash-Based Awards

Withrespecttootherstock-basedawardspaidincashorordinaryshares,participantswillgenerallyrecognizeincomeequaltothefairmarketvalueoftheordinarysharesortheamountofcashpaidonthedateonwhichdeliveryofsharesorpaymentincashismadetotheparticipant.

Code Section 409A

Section409AoftheCodegenerallyprovidesrulesthatmustbefollowedwithrespecttocovereddeferredcompensationarrangementsinordertoavoidtheimpositionofanadditional20%tax(plusinterest)upontheserviceproviderwhoisentitledtoreceivethedeferredcompensation.Certainawardsthatmaybegrantedunderthe2015IncentivePlanmayconstitute"deferredcompensation"withinthemeaningofandsubjecttoSection409A.WhiletheCommitteeintendstoadministerandoperatethe2015IncentivePlanandestablishtermswithrespecttoawardssubjecttoSection409AinamannerthatwillavoidtheimpositionofadditionaltaxationunderSection409Auponaparticipant,theCompanycannotassureaparticipantthatadditionaltaxationunderSection409Awillbeavoidedinallcases.IntheeventtheCompanyisrequiredtodelaydeliveryofsharesoranyotherpaymentunderanawardinordertoavoidtheimpositionofanadditionaltaxunderSection409A,theCompanywilldeliversuchshares(ormakesuchpayment)onthefirstdaythatwouldnotresultintheparticipantincurringanytaxliabilityunderSection409A.

TableofContents

THESHAREHOLDERTRANSACTION

ImmediatelypriortotheclosingoftheShareholderTransactionandaftergivingeffectto(i)theconversionofallofouroutstandingConvertibleNotes,(ii)theconversionofallofouroutstandingConvertiblePreferredStockand(iii)theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrants,whichoccurredinJuly2016,FilaKoreawillownapproximately33.1%ofouroutstandingcommonstockthroughitswholly-ownedsubsidiaryMagnus,theMiraeFundswillownapproximately50.2%ofouroutstandingcommonstock,theWoori-BlackstoneFundwillownapproximately12.0%ofouroutstandingcommonstock,andtheNeopluxFundwillownapproximately4.1%ofouroutstandingcommonstock.TheFinancialInvestorsarethesellingshareholdersinthisofferingandaresellingtheirsharesonaproratabasis.

MagnushasagreedtopurchasefromtheFinancialInvestorsonaproratabasis14,818,720sharesofourcommonstock,whichwillbeapproximately20.0%ofouroutstandingcommonstock,inaseparatetransaction.ThepricepershareofourcommonstocktobepaidbyMagnustotheFinancialInvestorswillbeequalto1.05timestheinitialpublicofferingpricesetforthonthecoverpageofthisprospectus.Wewillnotreceiveanyproceedswithrespecttothesharesofourcommonstockthataresoldinthistransaction.Magnus'spurchaseofthesesharesfromtheFinancialInvestorsisexpectedtocloseonthebusinessdayfollowingthedateofpricingofthisoffering.

UpontheclosingofthisofferingandaftergivingeffecttotheShareholderTransaction:

• Magnuswillownapproximately53.1%ofouroutstandingcommonstockandthesharesofourcommonstockownedbyMagnuswillbeitsonlyassets;

• theFinancialInvestorswillcollectivelyownapproximately20.3%ofouroutstandingcommonstock(orapproximately16.4%ofouroutstandingcommonstockiftheunderwriters'optiontopurchaseadditionalsharesfromthesellingshareholdersisexercisedinfull);and

• thenewinvestorspurchasingsharesofourcommonstockinthisofferingwillownapproximately26.1%ofouroutstandingcommonstock(orapproximately30.0%ofouroutstandingcommonstockiftheunderwriters'optiontopurchaseadditionalsharesfromthesellingshareholdersisexercisedinfull).

AsaresultoftheShareholderTransaction,Magnus,whichiswholly-ownedbyFilaKorea,willcontrolamajorityofthevotingpowerofalloutstandingsharesofourcommonstock,andwewillqualifyasa"controlledcompany"withinthemeaningofthecorporategovernancestandardsoftheNYSE.

TheMagnusTermLoan

Magnuswillfinanceitspurchaseof14,818,720sharesofourcommonstockfromtheFinancialInvestorsintheShareholderTransactionbyenteringintotheMagnusTermLoanwiththeMagnusLenderstoborrowKoreanWon395billion(equivalenttoapproximately$360.3million,usingtheexchangerateof$1.00=KoreanWon1,096.30asofSeptember30,2016)(assumingapurchasepriceof$23.625pershare,basedonaninitialpublicofferingpriceof$22.50pershare,whichisthemidpointoftheestimatedinitialpublicofferingpricerangesetforthonthecoverpageofthisprospectusplusanadditional$3.1millionthatmaybenecessaryforMagnustomakethefirstinterestpaymentontheMagnusTermLoan).A$1.00increaseordecreaseintheassumedinitialpublicofferingpriceof$22.50persharewouldincreaseordecrease,asapplicable,theaggregateprincipalamountoftheMagnusTermLoanby$14.8million.

Interest. TheMagnusTermLoanwillbearinterestatarateof3.5%perannum,payablequarterlyinarrearsincash.IfMagnusisunabletopayinterestontheMagnusTermLoanonaninterestpaymentdate,theprincipalandaccruedinterestontheMagnusTermLoanbecomesautomaticallydue

TableofContents

andpayable.ItisexpectedthataportionoftheinterestontheMagnusTermLoanwillbefundedbyMagnususingproceedsfromdividends,ifany,receivedonourcommonstock.See"DividendPolicy."

Maturity. Unlessrepaidpriortomaturity,theMagnusTermLoanwillmatureon,2017(thefirstanniversaryofthedayfollowingthepricingofthisoffering).

Collateral. TheMagnusTermLoanwillbesecuredbyapledgeonallofourcommonstockownedbyMagnus,exceptfor5%ofouroutstandingcommonstockownedbyMagnusthatissubjecttoanegativepledgeunderFilaKorea'screditfacility,whichwillequal48.1%ofouroutstandingcommonstock.IfMagnusfailstopaytheamountdueontheMagnusTermLoanatmaturityoruponacceleration,theMagnusLenderscanforecloseonthepledgedsharesofourcommonstock,whichforeclosuremaybeundertakeninaccordancewithKoreanlawandmayresult,undercircumstances,inthesaleof48.1%ofourcommonstock,whichequalsallofthesharespledgedbyMagnustotheMagnusLenders.See"RisksRelatedtotheShareholderTransactionandtheMagnusTermLoan—FilaKoreaandMagnuswillhaveobligationsundertheMagnusTermLoan,andFilaKoreaand/orMagnusmayhaveobligationsunderanyequityordebtusedtorefinancetheMagnusTermLoan,thatmaybesatisfiedbyasale,foreclosure,liquidationorothertransferofourcommonstock,whichcouldmateriallydecreasethemarketvalueofourcommonstockandmayresultinachangeofcontrolofourcompany"and"FilaKoreahaspledgedthecommonstockofMagnustothelendersunderitscreditfacilitywhichpledgeisexpectedtocontinueinpartaftertheclosingofthisoffering.Inaddition,FilaKoreamaypledgeorborrowagainstadditionalsharesofthecommonstockofMagnus."IntheeventofaforeclosureonthepledgedsharesofourcommonstockundertheMagnusTermLoan,if,inthereasonableopinionoftheMagnusLenders,foreclosureof35%ofouroutstandingcommonstocklessoneshareofourcommonstock,ortheForeclosureThresholdAmount,willbesufficienttofullysatisfytheprincipalandinterestoftheMagnusLoan,onlytheForeclosureThresholdAmountwillbepermittedforsuchforeclosure.IftheForeclosureThresholdAmountisinsufficienttofullysatisfytheprincipalandinterestoftheMagnusLoan,therewillbenolimitationontheamountofourpledgedsharesofcommonstockthatmaybeforeclosed.Iftheentireamountofourpledgedcommonstockpledgedisbeingforeclosed,atag-alongrightmaybeexercisedbyMagnussuchthatMagnuswillbepermittedtosell,undercertaincircumstances,5.0%ofourcommonstockheldbyMagnus.

Events of Default and Remedies. Ifaneventofdefaultoccurs(otherthan(i)failuretopayanyamountpayableundertheMagnusTermLoanwhendueand(ii)uponabankruptcyorotherinsolvencyorliquidationeventwithrespecttous,MagnusorFilaKorea),theMagnusLenderswillhavearighttoacceleratethematurityoftheMagnusTermLoans.IfMagnusfailstopayanyamountpayableundertheMagnusTermLoanwhendue,includinginterest,orifwe,MagnusorFilaKoreabecomesubjecttoabankruptcyorotherinsolvencyorliquidationevent,theprincipalandaccruedinterestontheMagnusTermLoanbecomesautomaticallydueandpayable.

Transferability of Common Stock. ThetransferoftheMagnussharesorthesharesofourcommonstockheldbyMagnuswillberestrictedtotheextentanysuchsharesarepledged.

Governing Law. ThetermsoftheMagnusTermLoanwillbegovernedbythelawsoftheRepublicofKorea.

TheclosingoftheShareholderTransactionisconditionedonthepricingofthisofferingandtheclosingofthisofferingofourcommonstockisconditionedontheclosingoftheShareholderTransaction.

See"RiskFactors—RisksRelatedtotheShareholderTransactionandtheMagnusTermLoan,""Management—BoardLeadershipStructureandtheBoard'sRoleinRiskOversight—ControlledCompany,""TheShareholderTransaction"and"PrincipalandSellingShareholders."

TableofContents

OrganizationalStructure

Thefollowingdiagramillustratesourcorporatestructureandownershipofourcommonstockaftergivingeffectto:

• theconversionofallofouroutstandingConvertibleNotes;

• theconversionofallofouroutstandingConvertiblePreferredStock;

• theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrants,whichoccurredinJuly2016;

• theShareholderTransaction;and

• thisoffering.

(1) FilaKoreahasgrantedasecurityinterestinallofthecommonstockofMagnustothelendersunderitsexistingcreditfacility.Aftergivingeffecttotheclosingofthisoffering,thelendersunderFilaKorea'sexistingcreditfacilityareexpectedtoreleasetheirsecurityinterestsinapproximately85.6%ofthecommonstockofMagnusandretainasecurityinterestinapproximately14.4%ofthecommonstockofMagnus.ThesharesofourcommonstockownedbyMagnusareMagnus'onlyassets.

(2) InconnectionwiththeMagnusTermLoan,MagnuswillgrantasecurityinterestinallofourcommonstockownedbyMagnustotheMagnusLenders,exceptfor5%ofouroutstandingcommonstockownedbyMagnusthatissubjecttoanegativepledgeunderFilaKorea'sexistingcreditfacility,whichwillequal48.1%ofouroutstandingcommonstock.ThesharesofourcommonstockownedbyMagnusareMagnus'onlyassets.

TableofContents

PRINCIPALANDSELLINGSHAREHOLDERS

Thefollowingtableandaccompanyingfootnotessetforthinformationwithrespecttothebeneficialownershipofourcommonstock,asofJune30,2016:

• priortothisofferingandtheShareholderTransactionbutaftergivingeffectto(i)theautomaticconversionofallofouroutstandingConvertibleNotesintoanaggregateof32,624,820sharesofourcommonstock,andtheautomaticconversionofallofouroutstandingConvertiblePreferredStockintoanaggregateof16,542,243sharesofourcommonstock,eachofwhichwilloccurpriortotheclosingofthisofferingand(ii)theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrantsintoanaggregateof3,105,279sharesofourcommonstock,whichoccurredinJuly2016;and

• asadjustedtoreflectthesaleofthesharesofcommonstockinthisofferingandtheShareholderTransaction,

• eachperson,orgroupofpersons,knownbyustoownbeneficiallymorethan5%ofouroutstandingsharesofcommonstockorwhoissellingsharesofcommonstockinthisoffering;

• eachofournamedexecutiveofficersfor2015;

• eachofourdirectorsanddirectornominees;and

• allofourexecutiveofficers,directorsanddirectornomineesasagroup.

BeneficialownershipandpercentageownershiparedeterminedinaccordancewiththerulesandregulationsoftheSECandincludevotingorinvestmentpowerwithrespecttosharesofstock.Thisinformationdoesnotnecessarilyindicatebeneficialownershipforanyotherpurpose.Incomputingthenumberofsharesbeneficiallyownedbyapersonandthepercentageownershipofthatperson,sharesofcommonstocksubjecttorestrictions,optionsorwarrantsheldbythatpersonthatarecurrentlyexercisableorexercisablewithin60daysofthedateofthisprospectusaredeemedoutstanding.Suchshares,however,arenotdeemedoutstandingforthepurposesofcomputingthepercentageownershipofanyotherperson.Exceptasindicatedinthefootnotestothefollowingtableorpursuanttoapplicablecommunitypropertylaws,webelieve,basedoninformationfurnishedtous,thateachshareholdernamedinthetablehassolevotingandinvestmentpowerwithrespecttothesharessetforthoppositesuchshareholder'sname.

Forfurtherinformationregardingmaterialtransactionsbetweenusandtheprincipalshareholders,see"CertainRelationshipsandRelatedPartyTransactions."

TableofContents

Exceptasotherwiseindicatedinthefootnotesbelow,theaddressofeachbeneficialownerisc/oAcushnetHoldingsCorp.,333BridgeStreet,Fairhaven,Massachusetts02719.

Sharesofcommonstockbeneficiallyownedaftertheoffering

andtheShareholderTransaction

SharesofcommonstockbeneficiallyownedpriortotheofferingandtheShareholder

Transaction

Assumingtheunderwriters'optiontopurchaseadditionalsharesisnotexercised

Assumingtheunderwriters'optiontopurchaseadditional

sharesisexercisedinfull Nameofbeneficialowner Number Percentage Number Percentage Number Percentage Shareholders: FilaKorea(1) 24,526,431 33.1% 39,345,151 53.1% 39,345,151 53.1%MiraeFunds(2) 37,197,063 50.2% 11,359,521 15.3% 9,165,542 12.4%Woori-BlackstoneKoreaOpportunityPrivateEquityFund1(3) 8,910,000 12.0% 2,721,003 3.7% 2,195,469 3.0%

NeopluxCo.Ltd.(4) 3,060,000 4.1% 934,486 1.3% 754,000 1.0%Named Executive Officers, Directors and Director

Nominees: Walter(Wally)Uihlein(5)(6) 400,104 * 400,104 * 400,104 *WilliamBurke(5)(7) — — — — — —GeraldBellis(5)(8) — — — — — —JamesConnor(5)(9) — — — — — —YoonSoo(Gene)Yoon(1)(5) 24,526,431 33.1% 39,345,151 53.1% 39,345,151 53.1%SungWooAhn(10) — — — — — —HughLee(11) — — — — — —Jung-HunRyu(12) — — — — — —YongKyuShin(13) — — — — — —KeunChangYoon(14) — — — — — —JenniferEstabrook(15) — — — — — —GregoryHewett — — — — — —ChristopherMetz — — — — — —SeanSullivan — — — — — —StevenTishman — — — — — —DavidValcourt — — — — — —NormanWesley — — — — — —Allexecutiveofficers(16),directorsanddirectornomineesasagroup(24persons) 24,926,535 33.6% 39,745,255 53.6% 39,745,255 53.6%

* Lessthanonepercent.

(1) InconnectionwiththeMagnusTermLoan,MagnuswillgrantasecurityinterestinallofourcommonstockownedbyMagnustotheMagnusLenders,exceptfor5%ofouroutstandingcommonstockownedbyMagnusthatissubjecttoanegativepledgeunderFilaKorea'sexistingcreditfacility,whichwillequal48.1%ofouroutstandingcommonstock.ThesharesofourcommonstockownedbyMagnusareMagnus'onlyassets.IfMagnusdefaultsontheMagnusTermLoan,theMagnusLendersmayforecloseonthepledgedsharesofourcommonstock.See"RiskFactors—RisksRelatedtotheShareholderTransactionandtheMagnusTermLoan—FilaKoreaandMagnuswillhaveobligationsundertheMagnusTermLoan,andFilaKoreaand/orMagnusmayhaveobligationsunderanyequityordebtusedtorefinancetheMagnusTermLoan,thatmaybesatisfiedbyasale,foreclosure,liquidationorothertransferofourcommonstock,whichcouldmateriallydecreasethemarketvalueofourcommonstockandmayresultinachangeofcontrolofourcompany."

Inaddition,itispossiblethatinthefutureMagnusmaypledgesharesofourcommonstock,whethertoraisetheproceedsnecessarytopayamountsdueontheMagnusTermLoanorotherwiseorforotherpurposes.

FilaKoreahasgrantedasecurityinterestinallofthecommonstockofMagnustothelendersunderitscreditfacility.Aftergivingeffecttotheclosingofthisoffering,thelendersunderFilaKorea'screditfacilityareexpectedtoreleasetheirsecurityinterestsinapproximately85.6%ofthecommonstockofMagnusandretainasecurityinterestinapproximately14.4%ofthecommonstockofMagnus.ThesharesofourcommonstockownedbyMagnusareMagnus'onlyassets.IfFilaKoreadefaultsunderitsexistingcreditfacilityandthesecuredpartiesforecloseonthepledgedsharesofMagnuscommonstock,theymayseektosellthepledgedsharesofMagnuscommonstock,orseektoacquireandtosellaportionofourcommonstockownedbyMagnus.See"RiskFactors—RisksRelatedtotheShareholderTransactionandtheMagnusTermLoan—FilaKoreahaspledgedthecommonstockofMagnustothelendersunderitsexistingcreditfacilitywhich

TableofContents

pledgeisexpectedtocontinueinpartaftertheclosingofthisoffering.Inaddition,FilaKoreamaypledgeorborrowagainstadditionalsharesofthecommonstockofMagnus."

Inaddition,itispossiblethatFilaKoreamayinthefuturepledgeadditionalsharesofthecommonstockofMagnus,whethertoraisetheproceedsnecessarytopayamountsdueontheMagnusTermLoanorotherwiseorforotherpurposes.

GeneYoonistheChairmanandChiefExecutiveOfficerofFilaKoreaLtd.andmaybedeemedtobethebeneficialownerandhavevotinganddispositivepowerwithrespecttothesharesofourcommonstockheldbyFilaKorea.TheaddressofFilaKoreaandMr.Yoonis6Myeongdal-Ro,Seocho-GuSeoul,Korea.

(2) RepresentssharesofourcommonstockownedbyOdin3,LLCandOdin4,LLC.TheMiraeFundsareeachwhollyownedbyMiraeAssetPartnersPrivateEquityFundVIIwhosegeneralpartnersareMiraeAssetGlobalInvestmentsCo.Ltd.andMiraeAssetSecuritiesCo.Ltd.VotingandinvestmentdecisionsoverthesharesofourcommonstockheldbytheMiraeFundsaremadebyaninvestmentcommitteeofMiraeAssetGlobalInvestmentsCo.Ltd.,themembersofwhomareSungWooAhnandJung-HunRyu,bothofwhomaremembersofourboardofdirectors,andsixothermembers.EachofthemembersofthecommitteemaybedeemedtosharevotingandinvestmentpowerwithrespecttothesharesownedbytheMiraeFunds.TheaddressfortheMiraeentitiesis26F,EastTower,26,Eulji-ro5-gil,Jung-gu,Seoul,Korea.

AsofOctober14,2016,theMiraeFundshavepledged,hypothecatedorgrantedsecurityinterestsinallofouroutstandingConvertibleNotesandallofouroutstandingConvertiblePreferredStockbeneficiallyownedbythem,aswellasalloftheunderlyingsharesofourcommonstockthatareissuablethereunder,ascollateralforaforeigncurrencyhedge.TheMiraeFundsexpecttoenterintoanagreementorarrangementwiththesecuredpartyforthereleaseofthesesecurityinterestspriortotheclosingofthisoffering.

(3) RepresentssharesofourcommonstockownedbyWBAtlasLLC,aninvestmentvehicleofWoori-BlackstoneKoreaOpportunityPrivateEquityFund1.VotingandinvestmentdecisionsoverthesharesofourcommonstockheldbyWBAtlasLLCaremadebytheinvestmentcommitteesofWoori-BlackstoneKoreaOpportunityPrivateEquityFund1,whichisjointlymanagedbyWooriPrivateEquityCo.,Ltd.andBlackstoneKoreaAdvisorsLimitedasgeneralpartners.TheaddressforWBAtlasLLCis6thFl.,SeoulFinanceCenter,136,Sejong-daero,Jung-gu,Seoul,100-76,Korea.

AsofOctober14,2016,WBAtlasLLChaspledged,hypothecatedorgrantedsecurityinterestsinallofouroutstandingConvertibleNotesandallofouroutstandingConvertiblePreferredStockbeneficiallyownedbythem,aswellasalloftheunderlyingsharesofourcommonstockthatareissuablethereunder,ascollateralforaforeigncurrencyhedge.WBAtlasLLCexpectstoenterintoanagreementorarrangementwiththesecuredpartyforthereleaseofthesesecurityinterestspriortotheclosingofthisoffering.

(4) RepresentssharesofourcommonstockownedbyNeopluxNo.1PrivateEquity,anaffiliateofNeopluxCo.Ltd.VotingandinvestmentdecisionsoverthesharesofourcommonstockheldbyNeopluxNo.1PrivateEquityaremadebytheInvestmentCommitteeofNeopluxNo.1PrivateEquity.TheInvestmentCommitteeofNeopluxNo.1PrivateEquityconsistsoffourmembers:Mr.Lee,Sangha,Mr.Kim,Donghwan,Mr.Min,KyungminandMs.Park,Jiyoung.TheseindividualsmaybedeemedtobeneficiallyownthesharesofourcommonstockthatareownedbyNeopluxNo.1PrivateEquity.Suchpersonsdisclaimbeneficialownershipofsuchsharesofourcommonstock.TheaddressforNeopluxNo.1PrivateEquityis18F,GlassTowerBldg.,534Teheran-ro,Gangnam-gu,Seoul,Korea.

AsofOctober14,2016,NeopluxNo.1PrivateEquityhaspledged,hypothecatedorgrantedsecurityinterestsinallofouroutstandingConvertibleNotesandallofouroutstandingConvertiblePreferredStockbeneficiallyownedbythem,aswellasalloftheunderlyingsharesofourcommonstockthatareissuablethereunder,ascollateralforaforeigncurrencyhedge.NeopluxNo.1PrivateEquityexpectstoenterintoanagreementorarrangementwiththesecuredpartyforthereleaseofthesesecurityinterestspriortotheclosingofthisoffering.

(5) DoesnotreflectanysharesthatmaybeissueduponsettlementofoutstandingEARs.

(6) DoesnotreflectanysharesthatmaybeissueduponsettlementofoutstandingRSUsorPSUs.InJune2016,Mr.Uihleinwasgranted232,092RSUs,whichwillvestinequalinstallmentsonDecember31,2016,2017and2018,and232,092PSUs,whichwillvestonDecember31,2018basedupontheachievementofcertainperformancemetrics.

(7) DoesnotreflectanysharesthatmaybeissueduponsettlementofoutstandingRSUsorPSUs.InJune2016,Mr.Burkewasgranted78,678RSUs,whichwillvestinequalinstallmentsonDecember31,2016,2017and2018,and78,678PSUs,whichwillvestonDecember31,2018basedupontheachievementofcertainperformancemetrics.

(8) Mr.BellisretiredeffectiveFebruary29,2016.

(9) DoesnotreflectanysharesthatmaybeissueduponsettlementofoutstandingRSUsorPSUs.InJune2016,Mr.Connorwasgranted62,937RSUs,whichwillvestinequalinstallmentsonDecember31,2016,2017and2018,and62,937PSUs,whichwillvestonDecember31,2018basedupontheachievementofcertainperformancemetrics.Mr.ConnorisexpectedtoretireeffectiveasofDecember31,2016.

TableofContents

(10) SungWooAhnisanExecutiveDirectoratMiraeAssetGlobalInvestments'PEFBusinessUnit.Mr.AhndisclaimsbeneficialownershipofanysharesofourcommonstockownedbyMiraeAssetGlobalInvestments.TheaddressforMr.Ahnis26F,EastTower,26,Eulji-ro5-gil,Jung-gu,Seoul,Korea.Mr.Ahnwillresignfromtheboardofdirectorscontingentupon,andeffectiveimmediatelyfollowing,thepricingofthisoffering.

(11) HughLee,whoistheson-in-lawofthechairmanofourboardofdirectors,isPresidentofAcushnetKoreaCo.,Ltd.TheaddressforMr.Leeis8F,509,Teheran-ro,Gangnam-gu,Seoul,Korea.Mr.Leewillresignfromtheboardofdirectorscontingentupon,andeffectiveimmediatelyfollowing,thepricingofthisoffering.

(12) Jung-HunRyuisaPresidentatMiraeAssetGlobalInvestments'PEFBusinessUnit.Mr.RyudisclaimsbeneficialownershipofanysharesofourcommonstockownedbyMiraeAssetGlobalInvestments.TheaddressforMr.Ryuis26F,EastTower,26,Eulji-ro5-gil,Jung-gu,Seoul,Korea.Mr.Ryuwillresignfromtheboardofdirectorscontingentupon,andeffectiveimmediatelyfollowing,thepricingofthisoffering.

(13) Yong-KyuShinisadirectoratBlackstoneKoreaAdvisors,oneofthegeneralpartnersforWoori-BlackstoneKoreaOpportunityPrivateEquityFund1.Mr.ShindisclaimsbeneficialownershipofanysharesofourcommonstockownedbyWoori-BlackstoneKoreaOpportunityPrivateEquityFund1.TheaddressforMr.ShinisC-5302,57,Eonju-ro30-gil,Gangnam-guSeoul,Korea.Mr.Shinwillresignfromtheboardofdirectorscontingentupon,andeffectiveimmediatelyfollowing,thepricingofthisoffering.

(14) KeunChangYoon,whoisthesonofthechairmanofourboardofdirectors,isaVicePresidentatFilaKorea,ChiefFinancialOfficerofFilaUSA,Inc.andChiefOperatingOfficerofFilaSportHongKong.Mr.YoondisclaimsbeneficialownershipofanysharesofourcommonstockownedbyFilaKorea.TheaddressforMr.Yoonis6Myeongdal-Ro,Seocho-GuSeoul,Korea.Mr.Yoonwillresignfromtheboardofdirectorscontingentupon,andeffectiveimmediatelyfollowing,thepricingofthisoffering.

(15) Ms.EstabrookdisclaimsbeneficialownershipofanysharesofourcommonstockownedbyFilaKorea.TheaddressofMs.Estabrookisc/oFilaNorthAmerica,1411Broadway,NewYork,NewYork10018.

(16) IncludescurrentexecutiveofficersasofAugust1,2016aswellasournamedexecutiveofficerswhoarenolongerexecutiveofficers.

TableofContents

CERTAINRELATIONSHIPSANDRELATEDPARTYTRANSACTIONS

ConvertiblePreferredStock

In2013,wepaiddividendsintheamountof(i)$10.5milliononConvertiblePreferredStockheldbytheMiraeFundsand(ii)$2.5milliononConvertiblePreferredStockheldbyanentityaffiliatedwithWoori-BlackstoneKoreaOpportunityPrivateEquityFund1.

OnJuly29,2016,wepaiddividendsintheamountof(i)$10.5milliononConvertiblePreferredStockheldbytheMiraeFundsand(ii)$2.5milliononConvertiblePreferredStockheldbyanentityaffiliatedwithWoori-BlackstoneKoreaOpportunityPrivateEquityFund1.

Priortotheclosingofthisoffering,(i)theMiraeFundswillreceive12,492,243sharesofourcommonstockandapproximately$2.6millionofaccruedandunpaiddividendsuponconversionof1,388,027sharesofoutstandingConvertiblePreferredStockheldbysuchentitiesand(ii)anentityaffiliatedwithWoori-BlackstoneKoreaOpportunityPrivateEquityFund1willreceive2,970,000sharesofourcommonstockandapproximately$0.6millionofaccruedandunpaiddividendsuponconversionof330,000sharesofoutstandingConvertiblePreferredStockheldbysuchentity.

EachoftheMiraeFundsandWoori-BlackstoneKoreaOpportunityPrivateEquityFund1wererelatedpersonsatthetimeofthetransactionsdescribedaboveduetotheirbeneficialownershipofmorethan5%ofouroutstandingsharesofourcommonstock.

ConvertibleNotes

During2013,wepaidinterestintheamountof(i)$20.6milliononConvertibleNotesheldbytheMiraeFundsand(ii)$5.0milliononConvertibleNotesheldbyanentityaffiliatedwithWoori-BlackstoneKoreaOpportunityPrivateEquityFund1.

OnJuly29,2016,wepaidinterestintheamountof(i)$20.7milliononConvertibleNotesheldbytheMiraeFundsand(ii)$5.0milliononConvertibleNotesheldbyanentityaffiliatedwithWoori-BlackstoneKoreaOpportunityPrivateEquityFund1.

Priortotheclosingofthisoffering,(i)theMiraeFundswillreceive24,704,820sharesofourcommonstockandapproximately$5.2millionofaccruedandunpaidinterestuponconversionof$274.5millionofoutstandingConvertibleNotesheldbysuchentitiesand(ii)anentityaffiliatedwithWoori-BlackstoneKoreaOpportunityPrivateEquityFund1willreceive5,940,000sharesofourcommonstockandapproximately$1.2millionofaccruedandunpaidinterestuponconversionof$66.0millionofoutstandingConvertibleNotesheldbysuchentity.

TableofContents

EachoftheMiraeFundsandWoori-BlackstoneKoreaOpportunityPrivateEquityFund1wererelatedpersonsatthetimeofthetransactionsdescribedaboveduetotheirbeneficialownershipofmorethan5%ofouroutstandingsharesofourcommonstock.

7.5%Bondsdue2021withCommonStockWarrants

InJuly2013,FilaKoreaexerciseditscalloptiononwarrantsheldbycertainexistingsecurityholderstopurchase3,105,288sharesofcommonstock.OnAugust7,2013,FilaKoreaconvertedthewarrantsintocommonstockattheconversionpriceof$11.11pershare,or$34.5millionintheaggregate.Weusedtheproceedsreceivedfromthiswarrantexercisetoredeemaproratashareofouroutstanding7.5%bondsdue2021,resultinginpaymentsof(i)$26.1milliontotheMiraeFundsand(ii)$6.2milliontoanentityaffiliatedwithWoori-BlackstoneKoreaOpportunityPrivateEquityFund1.

InJuly2014,FilaKoreaexerciseditscalloptiononwarrantsheldbycertainexistingsecurityholderstopurchase3,105,288sharesofcommonstock.OnJuly29,2014,FilaKoreaconvertedthewarrantsintocommonstockattheconversionpriceof$11.11pershare,or$34.5millionintheaggregate.Weusedtheproceedsreceivedfromthiswarrantexercisetoredeemaproratashareofouroutstanding7.5%bondsdue2021,resultinginpaymentsof(i)$26.1milliontotheMiraeFundsand(ii)$6.2milliontoanentityaffiliatedwithWoori-BlackstoneKoreaOpportunityPrivateEquityFund1.

InJuly2015,FilaKoreaexerciseditscalloptiononwarrantsheldbycertainexistingsecurityholderstopurchase3,105,288sharesofcommonstock.OnJuly28,2015,FilaKoreaconvertedthewarrantsintocommonstockattheconversionpriceof$11.11pershare,or$34.5millionintheaggregate.Weusedtheproceedsreceivedfromthiswarrantexercisetoredeemaproratashareofouroutstanding7.5%bondsdue2021,resultinginpaymentsof(i)$26.1milliontotheMiraeFundsand(ii)$6.2milliontoanentityaffiliatedwithWoori-BlackstoneKoreaOpportunityPrivateEquityFund1.

InJuly2016,FilaKoreaexerciseditscalloptiononwarrantsheldbycertainexistingsecurityholderstopurchase3,105,279sharesofcommonstock.Suchwarrantsconvertintocommonstockattheconversionpriceof$11.11pershare,or$34.5millionintheaggregate.Weusedtheproceedsreceivedfromthiswarrantexercisetoredeemtheremainingportionofouroutstanding7.5%bondsdue2021,resultinginpaymentsof(i)$26.1milliontotheMiraeFundsand(ii)$6.2milliontoanentityaffiliatedwithWoori-BlackstoneKoreaOpportunityPrivateEquityFund1.

EachofFilaKorea,theMiraeFundsandWoori-BlackstoneKoreaOpportunityPrivateEquityFund1wererelatedpersonsatthetimeofthetransactionsdescribedaboveduetotheirbeneficialownershipofmorethan5%ofouroutstandingsharesofourcommonstock.

SubsidiariesofFilaKoreagrantedasecondlienpledgeoversharesincertainofFilaKorea'ssubsidiariesandenteredintosecondlienaccountpledgeagreements,ineachcase,infavorofKoreaDevelopmentBank,assecurityagent,tosecureobligationsofAcushnetCompanyunderourformerseniorrevolvingcreditagreementwithKoreaDevelopmentBankandoursecuredfloatingratenotes.Thesesecurityinterestswerereleasedinconnectionwiththeinitialfundingunderthenewcreditagreement.

WeenteredintoanendorsementarrangementwithPeterUihlein,thesonofourPresidentandChiefExecutiveOfficer,in2012.PeterUihleinisaprofessionalgolferandanexemptmemberoftheEuropeanPGATour.PeterUihleinreceivedaggregatepaymentsof$275,115,$361,600and$314,000pursuanttothisendorsementarrangementin2013,2014and2015,respectively,andisexpectedtoreceivebaseretainerpaymentsof$300,000in2016.

TableofContents

HughLee,whoistheson-in-lawofthechairmanofourboardofdirectorsandcurrentlyamemberofourboardofdirectorswhowillresignfromourboardofdirectorscontingentupon,andeffectiveimmediatelyfollowing,thepricingofthisoffering,becamethefinancialcontrollerofourwholly-ownedsubsidiary,AcushnetKoreaCo.,Ltd.,onSeptember30,2015,andwasappointedPresidentofAcushnetKoreaCo.,Ltd.onApril1,2016.ForhisservicestoAcushnetKoreaCo.,Ltd.in2015,Mr.Leereceived$76,748insalaryandallowancesandanannualcashincentivepaymentof$86,652whichwaspaidinFebruary2016.Mr.Leeisexpectedtoreceiveasalaryof$328,390in2016andiseligibleforanadditionalannualcashincentivepayment.

RegistrationRightsAgreement

Inconnectionwiththisoffering,weintendtoenterintoaregistrationrightsagreementthatwillprovideMagnusandtheFinancialInvestors"demand"registrationsandcustomary"piggyback"registrationrightsandthatwillrequireustofileashelfregistrationstatementonFormS-3coveringallsharessubjecttosuchregistrationrightsagreementonceweareeligibletodoso.TheregistrationrightsagreementwillalsoprovidethatwewillpaycertainexpensesrelatingtosuchregistrationsandindemnifytheregistrationrightsholdersagainstcertainliabilitiesthatmayariseundertheSecuritiesActortocontributetopaymentstheregistrationrightsholdersmayberequiredtomakeinrespectofthoseliabilities.

Indemnification

See"DescriptionofCapitalStock"foradescriptionofindemnificationofourdirectorsandexecutiveofficers.

OurPolicyRegardingRelatedPartyTransactions

Priortothecompletionofthisoffering,ourboardofdirectorswilladoptawrittenstatementofpolicyregardingtransactionswithrelatedpersons,whichwerefertoasour"relatedpersonpolicy."Ourrelatedpersonpolicyrequiresthata"relatedperson"(asdefinedinparagraph(a)ofItem404ofRegulationS-K)mustpromptlydisclosetotheexecutivevicepresident,chieflegalandadministrativeofficerandsecretaryany"relatedpersontransaction"(definedasanytransactionthatweanticipatewouldbereportablebyusunderItem404(a)ofRegulationS-Kinwhichwewereoraretobeaparticipantandtheamountinvolvedexceeds$120,000andinwhichanyrelatedpersonhadorwillhaveadirectorindirectmaterialinterest)andallmaterialfactswithrespectthereto.Theexecutivevicepresident,chieflegalandadministrativeofficerandsecretarywillthenpromptlycommunicatethatinformationtoourboardofdirectors.Norelatedpersontransactionwillbeexecutedwithouttheapprovalorratificationofourboardofdirectorsoradulyauthorizedcommitteeofourboardofdirectors.Itisourpolicythatdirectorsinterestedinarelatedpersontransactionwillrecusethemselvesfromanyvoteonarelatedpersontransactioninwhichtheyhaveaninterest.

TableofContents

DESCRIPTIONOFINDEBTEDNESS

SeniorSecuredCreditFacilities

Overview

OnApril27,2016,AcushnetHoldingsCorp.,AcushnetCompany,ortheU.S.Borrower,AcushnetCanadaInc.,ortheCanadianBorrower,andAcushnetEuropeLimited,ortheUKBorrower,enteredintothenewcreditagreementwithWellsFargoBank,NationalAssociation,astheadministrativeagent,L/Cissuerandswinglinelenderandeachlenderfromtimetotimepartythereto,whichprovidesfor(i)anew$275.0millionmulti-currencyrevolvingcreditfacility,includinga$20.0millionletterofcreditsub-facility,aswinglinesublimitof$25.0million,aC$25.0millionsub-facilityforborrowingsbytheCanadianBorrower,a£20.0millionsub-facilityforborrowingsbytheUKBorrowerandanalternativecurrencysublimitof$100.0millionforborrowingsinCanadiandollars,euros,poundssterlingandJapaneseyen,(ii)anew$375.0milliontermloanAfacilityand(iii)anew$100.0milliondelayeddrawtermloanAfacility,eachofwhichmaturesonJuly28,2021.

ThenewcreditagreementwassignedandbecameeffectiveonApril27,2016andtheinitialfundingunderthenewcreditagreementoccurredonJuly28,2016.OnJuly28,2016,weusedtheproceedsofthenew$375.0milliontermloanAfacility,borrowingsofC$4.0million(equivalenttoapproximately$3.0million)underthenewrevolvingcreditfacilityandcashonhandof$23.6millionto(i)repayallamountsoutstandingunder,andterminate,oursecuredfloatingratenotesandcertainofourformerworkingcreditfacilities,(ii)terminateourformerseniorrevolvingcreditfacilityand(iii)payfeesandexpensesrelatedtotheforegoing.ThenewcreditagreementcontainsconditionsprecedenttotheU.S.Borrower'sabilitytoreceivetheproceedsofthenewdelayeddrawtermloanAfacility,includingthatthereshallnothaveoccurredamaterialadverseeffectwithrespecttotheU.S.Borrower.UntilJuly28,2017,thecommitmentsunderthenewdelayeddrawtermloanAfacilitywillbeavailabletomakepaymentsinconnectionwiththefinalpayoutoftheoutstandingEARsundertheEARPlan.

Inaddition,thenewcreditagreementallowsfortheincurrenceofadditionaltermloansorincreasestoournewrevolvingcreditfacilityinanaggregateprincipalamountnottoexceed(i)$200.0million,plus(ii)anunlimitedamountsolongastheNetAverageSecuredLeverageratio(definedastheratioofaverageConsolidatedSecuredFundedDebt(asdefinedinthenewcreditagreement)toAdjustedEBITDAfortheapplicabletestperiodinthenewcreditagreement)doesnotexceed2.00:1.00onaproformabasisand,subject,ineachcase,tocertainconditionsandreceiptofcommitmentsbyexistingoradditionalfinancialinstitutionsorinstitutionallenders.

Interest Rate and Fees

Borrowings(otherthanswinglineloans)underthenewcreditagreementbearinterestatarateperannumequaltoanapplicablemargin(whichisdeterminedbasedontheNetAverageSecuredLeverageRatio)plus,atouroption,either(1)solelyforborrowingsinU.S.dollars,abaseratedeterminedbyreferencetothehighestof(a)theFederalFundsrateplus0.50%,(b)theprimerateofWellsFargoBank,NationalAssociationand(c)theEurodollarratedeterminedbyreferencetothecostoffundsforU.S.dollardepositsforaninterestperiodofonemonthadjustedforcertainadditionalcosts,plus1.00%or(2)aEurodollarratedeterminedbyreferencetothecostsoffundsfordepositsinthecurrencyoftheapplicableborrowingfortheinterestperiodrelevanttosuchborrowingadjustedforcertainadditionalcosts.Swinglineloansbearinterestatthebaserateplustheapplicablemargin.TheapplicablemarginforEurodollarborrowingsunderthenewcreditagreementisinitially1.75%andrangesfrom1.25%to2.00%,andisinitially0.75%andrangesfrom0.25%to1.00%forbase-rateborrowings,andineachcasevariesbaseduponaleverage-basedpricinggrid.

Interestonborrowingsunderthenewcreditagreementispayable(1)onthelastdayofanyinterestperiodwithrespecttoEurodollarborrowingswithanapplicableinterestperiodofthreemonthsorless,(2)everythreemonthswithrespecttoEurodollarborrowingswithaninterestperiodof

TableofContents

greaterthanthreemonthsor(3)onthelastbusinessdayofeachMarch,June,SeptemberandDecemberwithrespecttobaserateborrowingsandswinglineborrowings.Inaddition,beginningonJuly28,2016,wearerequiredtopayacommitmentfeeonanyunutilizedcommitmentsunderthenewrevolvingcreditfacilityandthenewdelayeddrawtermloanAfacility.Theinitialcommitmentfeerateis0.30%perannumandrangesfrom0.20%to0.35%baseduponaleverage-basedpricinggrid.Wearealsorequiredtopaycustomaryletterofcreditfees.

Prepayments

Thenewcreditagreementrequiresustoprepayoutstandingtermloans,subjecttocertainexceptions,with:

• 100%ofthenetcashproceedsofallnon-ordinarycourseassetsalesorotherdispositionsofpropertybytheU.S.Borroweranditsrestrictedsubsidiaries(includinginsuranceandcondemnationproceeds,subjecttodeminimisthresholds),(1)ifwedonotreinvestthosenetcashproceedsinassetstobeusedinourbusinessortomakecertainotherpermittedinvestments,within12monthsofthereceiptofsuchnetcashproceedsor(2)ifwecommittoreinvestsuchnetcashproceedswithin12monthsofthereceiptthereof,butdonotreinvestsuchnetcashproceedswithin18monthsofthereceiptthereof;and

• 100%ofthenetproceedsofanyissuanceorincurrenceofdebtbytheU.S.Borroweroranyofitsrestrictedsubsidiaries,otherthandebtpermittedunderthenewcreditagreement.

Theforegoingmandatoryprepaymentsareusedtoreducetheinstallmentsofprincipalinsuchorder:first,toprepayoutstandingloansunderthenewtermloanAfacility,thenewdelayeddrawtermloanAfacilityandanyincrementaltermloansonaproratabasisindirectorderofmaturityandsecond,toprepayoutstandingloansunderthenewrevolvingcreditfacility.

Wemayvoluntarilyrepayoutstandingloansunderthenewcreditagreementatanytimewithoutpremiumorpenalty,otherthancustomary"breakage"costswithrespecttoEurodollarloans.AnyoptionalprepaymentoftermloanswillbeappliedasdirectedbytheU.S.Borrower.

Amortization

Wewillberequiredtomakeprincipalpaymentsontheloansunderthetermloanfacilitiesinquarterlyinstallmentsinaggregateannualamountsequalto(i)5.00%oftheoriginalprincipalamountforthefirstandsecondyearafterJuly28,2016,(ii)7.50%oftheoriginalprincipalamountforthethirdandfourthyearafterJuly28,2016and(iii)10.0%oftheoriginalprincipalamountforthefifthyearafterJuly28,2016.TheremainingoutstandingamountispayableonJuly28,2021,thematuritydateforthetermloanfacilities.PrincipalamountsoutstandingunderthenewrevolvingcreditfacilitywillbedueandpayableinfullonJuly28,2021,thematuritydateforthenewrevolvingcreditfacility.

Guarantee and Security

AllobligationsunderthenewcreditagreementareunconditionallyguaranteedbyAcushnetHoldingsCorp.,thedirectparentoftheU.S.Borrower,theU.S.Borrowerand,subjecttocertainexceptions,eachofourmaterialcurrentandfuturedomesticwholly-ownedrestrictedsubsidiaries,ortheU.S.guarantors.Allobligationsunderthenewcreditagreement,andtheguaranteesofthoseobligations,aresecuredbysubstantiallyallofthefollowingassetsoftheU.S.BorrowerandeachU.S.guarantor,subjecttocertainexceptions,including:

• apledgeof100%ofthecapitalstockoftheU.S.Borrowerand100%oftheequityinterestsdirectlyheldbytheU.S.BorrowerandeachU.S.guarantorinanywholly-ownedsubsidiaryoftheU.S.BorroweroranyU.S.guarantor(whichpledge,inthecaseofanysubsidiary(i)thatisa"controlledforeigncorporation"forUnitedStatesfederalincometaxpurposes,or(ii)substantiallyalloftheassetsofwhichconsistofequityinterestsinoneormore"controlled

TableofContents

foreigncorporations"(includingAcushnetInternationalInc.),willnotincludemorethan65%ofthevotingstockofsuchsubsidiary),subjecttocertainexceptions;and

• asecurityinterestin,andmortgageson,substantiallyalltangibleandintangibleassetsoftheU.S.BorrowerandeachU.S.guarantor,subjecttocertainexceptions.

Inaddition,allobligationsunderthenewcreditagreementoftheUKBorrowerandtheCanadianBorrowerareunconditionallyguaranteedbyAcushnetInternationalInc.,thedirectparentoftheUKBorrowerandtheCanadianBorrower,andaresecuredbyapledgeoftheequityinterestsoftheUKBorrowerandtheCanadianBorrowerandalienonsubstantiallyallassetsoftheUKBorrowerandtheCanadianBorrower.

Certain Covenants and Events of Default

ThenewcreditagreementcontainsanumberofcovenantsthatatanytimeafterJuly28,2016,amongotherthings,restricttheabilityoftheU.S.Borroweranditsrestrictedsubsidiariesto(subjecttocertainexceptions):

• incur,assume,orpermittoexistadditionalindebtednessorguarantees;

• incurliens;

• makeinvestmentsandloans;

• paydividends,makepayments,orredeemorrepurchasecapitalstockormakeprepayments,repurchasesorredemptionsofcertainindebtedness;

• engageinmergers,liquidations,dissolutions,assetsales,andotherdispositions(includingsaleleasebacktransactions);

• amendorotherwisealtertermsofcertainindebtednessorcertainotheragreements;

• enterintoagreementslimitingsubsidiarydistributionsorcontainingnegativepledgeclauses;

• engageincertaintransactionswithaffiliates;

• alterthenatureofthebusinessthatweconduct;or

• changeourfiscalyearoraccountingpractices.

CertainexceptionstothesecovenantsaredeterminedbasedonratiosthatarecalculatedinpartbasedonthecalculationofAdjustedEBITDA.

ThenewcreditagreementcovenantsalsorestricttheabilityofAcushnetHoldingsCorp.toengageincertainmergersorconsolidationsorengageinanyactivitiesotherthanpermittedactivities.Thenewcreditagreementalsocontainscertaincustomaryaffirmativecovenantsandeventsofdefault(includingchangeofcontrol).Ifaneventofdefaultoccursandiscontinuing,theadministrativeagent,onbehalfofthelenders,mayacceleratetheamountsandterminateallcommitmentsoutstandingunderthenewcreditagreementandmayexerciseremediesinrespectofthecollateral.Inaddition,thenewcreditagreementincludesmaintenancecovenantsthatonandafterJuly28,2016requirecompliancebyAcushnetCompanywithcertainratios.Thesemaintenancecovenantsincludetherequirementtomaintain(i)aConsolidatedInterestCoverageRatio(definedastheratioofAdjustedEBITDAtoConsolidatedInterestExpense(asdefinedinthenewcreditagreement)fortheapplicableperiod)of4.00:1.00orgreaterasoftheendofeachfiscalquarterand(ii)aNetAverageTotalLeverageRatio(definedastheratioofaverageConsolidatedFundedDebt(asdefinedinthenewcreditagreement)toAdjustedEBITDAfortheapplicableperiod)of3.50:1.00orlessasoftheendofthefiscalquartersendedMarch31,2017andJune30,2017and3.25:1.00orlessasoftheendofeachotherfiscalquarter.

ThecovenantsinthenewcreditagreementaresubjecttocertainexceptionsandbasketswhichpermittheU.S.Borrower,amongotherthings,tomakepaymentsinconnectionwiththefinalpayoutoftheoutstandingEARsundertheEARPlaninanamountofupto$200.0millionandtomake

TableofContents

certaininvestmentsinanamountofupto$50.0million.TheU.S.BorrowerisalsopermittedtopaydividendsandmakesimilarpaymentstoAcushnetHoldingsCorp.inanamountnottoexceed$125.0millionplusanyunusedamountsavailableunderthebasketsforEARPlanpaymentsandinvestmentsdescribedintheforegoingsentencesoaslongastheaggregateamountofsuchdividendsandotherpaymentsdoesnotexceed$50.0millioninanyfiscalyear(withanyunusedamountsinanyfiscalyearbeingcarriedovertosucceedingfiscalyears,subjecttoamaximumof$100.0millionforanyfiscalyear).Theavailabilityofcertainbasketsandtheabilitytoenterintocertaintransactions(includingtheabilityoftheU.S.BorrowertopaydividendstoAcushnetHoldingsCorp.)mayalsobesubjecttotheabsenceofdefaultand/orcompliancewithfinancialleverageratios.

TableofContents

DESCRIPTIONOFCAPITALSTOCK

Thefollowingdescriptionssummarizethetermsofourcapitalstock,ouramendedandrestatedcertificateofincorporationandouramendedandrestatedbylaws,eachofwhichwillbeineffectpriortotheclosingofthisoffering.Asitisonlyasummary,itdoesnotcontainalltheinformationthatmaybeimportanttoyou.Foracompletedescription,youshouldrefertoouramendedandrestatedcertificateofincorporationandamendedandrestatedbylaws,theformsofwhicharefiledasexhibitstotheregistrationstatementofwhichthisprospectusisapart.

OurpurposeistoengageinanylawfulactoractivityforwhichcorporationsmaynoworhereafterbeorganizedundertheDGCL.Upontheclosingofthisoffering,ourauthorizedcapitalstockwillconsistof500,000,000sharesofcommonstock,parvalue$0.001pershare,and100,000,000sharesofpreferredstock,parvalue$0.001pershare.AsofJune30,2016,therewere74,093,598sharesofcommonstockoutstandingheldofrecordbysixshareholders(aftergivingeffectto(i)theautomaticconversionofallofouroutstandingConvertibleNotesintoanaggregateof32,624,820sharesofourcommonstockandtheautomaticconversionofallofouroutstandingConvertiblePreferredStockintoanaggregateof16,542,243sharesofourcommonstock,eachofwhichwilloccurpriortotheclosingofthisofferingand(ii)theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrantsintoanaggregateof3,105,279sharesofourcommonstockwhichoccurredinJuly2016,andwithoutgivingeffectto(i)anysharesofourcommonstockthatareissuablefollowingvestinginsettlementofoutstandingRSUsandPSUs,whichwereissuedunderour2015IncentivePlan,and(ii)anysharesofourcommonstockthatareissuableinrespectofthesettlementofupto50%oftheoutstandingEARs,whichwereissuedundertheEARPlan).

Nosharesofpreferredstockwillbeissuedoroutstandingimmediatelyafterthisoffering.

We,ourexecutiveofficers,directors,directornomineesandallourexistingshareholders,includingthesellingshareholders,willenterintolock-upagreementswiththeunderwritersthatwill,subjecttocertaincustomaryexceptions,restrictthesaleofthesharesofourcommonstockandcertainothersecuritiesheldbythemfor180daysfollowingthedateofthisprospectus.J.P.MorganSecuritiesLLCandMorganStanley&Co.LLCmay,intheirsolediscretionandatanytimewithoutnotice,releasealloranyportionofthesharesorsecuritiessubjecttoanysuchlock-upagreements.See"Underwriting"foradescriptionoftheselock-upagreements.

CommonStock

Holdersofourcommonstockareentitledtoonevoteforeachshareheldofrecordonallmattersonwhichshareholdersareentitledtovotegenerally,includingtheelectionorremovalofdirectors.Theholdersofourcommonstockdonothavecumulativevotingrightsintheelectionofdirectors.

Uponourliquidation,dissolutionorwindingupandafterpaymentinfullofallamountsrequiredtobepaidtocreditorsandtotheholdersofpreferredstockhavingliquidationpreferences,ifany,theholdersofourcommonstockwillbeentitledtoreceiveprorataourremainingassetsavailablefordistribution.Holdersofourcommonstockdonothavepreemptive,subscription,redemptionorconversionrights.Thecommonstockwillnotbesubjecttofurthercallsorassessmentbyus.Therewillbenoredemptionorsinkingfundprovisionsapplicabletothecommonstock.Allsharesofourcommonstockthatwillbeoutstandingatthetimeoftheclosingoftheofferingwillbefullypaidandnon-assessable.Therights,powers,preferencesandprivilegesofholdersofourcommonstockwillbesubjecttothoseoftheholdersofanysharesofourpreferredstockwemayauthorizeandissueinthefuture.

TableofContents

PreferredStock

Ouramendedandrestatedcertificateofincorporationauthorizesourboardofdirectorstoestablishoneormoreseriesofpreferredstock(includingconvertiblepreferredstock).UnlessrequiredbylaworbytheNYSE,theauthorizedsharesofpreferredstockwillbeavailableforissuancewithoutfurtheractionbyyou.Ourboardofdirectorsisabletodetermine,withrespecttoanyseriesofpreferredstock,thepowers(includingvotingpowers),preferencesandrelativeparticipations,optionalorotherspecialrights,andthequalifications,limitationsorrestrictionsthereof,including,withoutlimitation:

• thedesignationoftheseries;

• thenumberofsharesoftheseries,whichourboardofdirectorsmay,exceptwhereotherwiseprovidedinthepreferredstockdesignation,increase(butnotabovethetotalnumberofauthorizedsharesoftheclass)ordecrease(butnotbelowthenumberofsharesthenoutstanding);

• whetherdividends,ifany,willbecumulativeornon-cumulativeandthedividendrateoftheseries;

• thedatesatwhichdividends,ifany,willbepayable;

• theredemptionrightsandpriceorprices,ifany,forsharesoftheseries;

• thetermsandamountsofanysinkingfundprovidedforthepurchaseorredemptionofsharesoftheseries;

• theamountspayableonsharesoftheseriesintheeventofanyvoluntaryorinvoluntaryliquidation,dissolutionorwinding-upoftheaffairsoftheCompany;

• whetherthesharesoftheserieswillbeconvertibleintosharesofanyotherclassorseries,oranyothersecurity,oftheCompanyoranyothercorporation,and,ifso,thespecificationoftheotherclassorseriesorothersecurity,theconversionpriceorpricesorrateorrates,anyrateadjustments,thedateordatesasofwhichtheshareswillbeconvertibleandallothertermsandconditionsuponwhichtheconversionmaybemade;

• restrictionsontheissuanceofsharesofthesameseriesorofanyotherclassorseries;and

• thevotingrights,ifany,oftheholdersoftheseries.

Wewillbeabletoissueaseriesofpreferredstockthatcould,dependingonthetermsoftheseries,impedeordiscourageanacquisitionattemptorothertransactionthatsome,oramajority,oftheholdersofourcommonstockmightbelievetobeintheirbestinterestsorinwhichtheholdersofourcommonstockmightreceiveapremiumforyourcommonstockoverthemarketpriceofthecommonstock.Inaddition,theissuanceofpreferredstockmayadverselyaffecttheholdersofourcommonstockbyrestrictingdividendsonthecommonstock,dilutingthevotingpowerofthecommonstockorsubordinatingtheliquidationrightsofthecommonstock.Asaresultoftheseorotherfactors,theissuanceofpreferredstockcouldhaveanadverseimpactonthemarketpriceofourcommonstock.

Dividends

TheDGCLpermitsacorporationtodeclareandpaydividendsoutof"surplus"or,ifthereisno"surplus,"outofitsnetprofitsforthefiscalyearinwhichthedividendisdeclaredand/ortheprecedingfiscalyear."Surplus"isdefinedastheexcessofthenetassetsofthecorporationovertheamountdeterminedtobethecapitalofthecorporationbytheboardofdirectors.Thecapitalofthecorporationistypicallycalculatedtobe(andcannotbelessthan)theaggregateparvalueofallissued

TableofContents

sharesofcapitalstock.Netassetsequalsthefairvalueofthetotalassetsminustotalliabilities.TheDGCLalsoprovidesthatdividendsmaynotbepaidoutofnetprofitsif,afterthepaymentofthedividend,remainingcapitalwouldbelessthanthecapitalrepresentedbytheoutstandingstockofallclasseshavingapreferenceuponthedistributionofassets.

Declarationandpaymentofanydividendwillbesubjecttothediscretionofourboardofdirectors.Thetimeandamountofdividendswillbedependentuponourfinancialcondition,operations,cashrequirementsandavailability,debtrepaymentobligations,capitalexpenditureneedsandrestrictionsinourdebtinstruments,industrytrends,theprovisionsofDelawarelawaffectingthepaymentofdistributionstoshareholdersandanyotherfactorsourboardofdirectorsmayconsiderrelevant.

See"DividendPolicy,""Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations—Indebtedness"and"DescriptionofIndebtedness."

AnnualShareholderMeetings

Ouramendedandrestatedbylawsprovidethatannualshareholdermeetingswillbeheldatadate,timeandplace,ifany,asexclusivelyselectedbyourboardofdirectors.Totheextentpermittedunderapplicablelaw,wemayconductmeetingsbyremotecommunications,includingbywebcast.

Anti-TakeoverEffectsofOurAmendedandRestatedCertificateofIncorporationandAmendedandRestatedBylawsandCertainProvisionsofDelawareLaw

OuramendedandrestatedcertificateofincorporationandamendedandrestatedbylawswillcontainandtheDGCLcontainsprovisions,whicharesummarizedinthefollowingparagraphs,thatareintendedtoenhancethelikelihoodofcontinuityandstabilityinthecompositionofourboardofdirectors.Theseprovisionsareintendedtoavoidcostlytakeoverbattles,reduceourvulnerabilitytoahostilechangeofcontrolandenhancetheabilityofourboardofdirectorstomaximizeshareholdervalueinconnectionwithanyunsolicitedoffertoacquireus.However,theseprovisionsmayhaveananti-takeovereffectandmaydelay,deterorpreventamergeroracquisitionoftheCompanybymeansofatenderoffer,aproxycontestorothertakeoverattemptthatashareholdermightconsiderinitsbestinterest,includingthoseattemptsthatmightresultinapremiumovertheprevailingmarketpriceforthesharesofcommonstockheldbyshareholders.

Authorized but Unissued Capital Stock

Delawarelawdoesnotrequireshareholderapprovalforanyissuanceofauthorizedshares.However,thelistingrequirementsoftheNYSE,whichwouldapplyifandsolongasourcommonstockremainslistedontheNYSE,requireshareholderapprovalofcertainissuancesequaltoorexceeding20%ofthethenoutstandingvotingpowerorthenoutstandingnumberofsharesofcommonstockandcertainothercircumstances.Additionalsharesthatmaybeissuedinthefuturemaybeusedforavarietyofcorporatepurposes,includingfuturepublicofferings,toraiseadditionalcapitalortofacilitateacquisitions.

Ourboardofdirectorsmaygenerallyissuepreferredsharesontermscalculatedtodiscourage,delayorpreventachangeofcontroloftheCompanyortheremovalofourmanagement.Moreover,ourauthorizedbutunissuedsharesofpreferredstockwillbeavailableforfutureissuanceswithoutshareholderapprovalandcouldbeutilizedforavarietyofcorporatepurposes,includingfutureofferingstoraiseadditionalcapital,tofacilitateacquisitionsandemployeebenefitplans.

Oneoftheeffectsoftheexistenceofunissuedandunreservedcommonstockorpreferredstockmaybetoenableourboardofdirectorstoissuesharestopersonsfriendlytocurrentmanagement,whichissuancecouldrendermoredifficultordiscourageanattempttoobtaincontroloftheCompany

TableofContents

bymeansofamerger,tenderoffer,proxycontestorotherwise,andtherebyprotectthecontinuityofourmanagementandpossiblydepriveourshareholdersofopportunitiestoselltheirsharesofcommonstockatpriceshigherthanprevailingmarketprices.

Classified Board of Directors

Ouramendedandrestatedcertificateofincorporationwillprovidethatourboardofdirectorswillbedividedintothreeclassesofdirectors,withtheclassestobeasnearlyequalinnumberaspossible,andwiththedirectorsservingthree-yearterms.Asaresult,approximatelyone-thirdofourboardofdirectorswillbeelectedeachyear.See"Management."Theclassificationofdirectorswillhavetheeffectofmakingitmoredifficultforstockholderstochangethecompositionofourboardofdirectors.Ouramendedandrestatedcertificateofincorporationandamendedandrestatedbylawswillprovidethat,subjecttoanyrightsofholdersofpreferredstocktoelectadditionaldirectorsunderspecifiedcircumstances,thenumberofdirectorswillbefixedfromtimetotimeexclusivelypursuanttoaresolutionadoptedbyourboardofdirectors.

Removal of Directors; Vacancies

UndertheDGCL,unlessotherwiseprovidedinouramendedandrestatedcertificateofincorporation,directorsservingonaclassifiedboardmayberemovedbythestockholdersonlyforcause.Ouramendedandrestatedcertificateofincorporationwillprovidethatdirectorsmayberemovedwithorwithoutcauseupontheaffirmativevoteofamajorityinvotingpowerofalloutstandingsharesofstockentitledtovotegenerallyintheelectionofdirectors,votingtogetherasasingleclass;provided,however,atanytimewhenMagnusanditsaffiliatesbeneficiallyown,intheaggregate,lessthan50%invotingpowerofourstockentitledtovotegenerallyintheelectionofdirectors,directorsmayonlyberemovedforcause,andonlybytheaffirmativevoteofholdersofatleast662/3%invotingpowerofallthethen-outstandingsharesofourstockentitledtovotethereon,votingtogetherasasingleclass.Inaddition,ouramendedandrestatedcertificateofincorporationwillalsoprovidethat,subjecttotherightsgrantedtooneormoreseriesofpreferredstockthenoutstanding,anyvacancyoccurringinourboardofdirectorsmayonlybefilledbyamajorityofthedirectorstheninoffice,althoughlessthanaquorum,orbyasoleremainingdirector(andnotbythestockholders).

Delaware Law

WewillbegovernedbytheprovisionsofSection203oftheDelawareGeneralCorporationLaw.Ingeneral,Section203prohibitsapublicDelawarecorporationfromengagingina"businesscombination"withan"interestedstockholder"foraperiodofthreeyearsafterthedateofthetransactioninwhichthepersonbecameaninterestedstockholder,unlessthebusinesscombinationisapprovedinaprescribedmanner.A"businesscombination"includesmergers,assetsales,orothertransactionsresultinginafinancialbenefittothestockholder.An"interestedstockholder"isapersonwho,togetherwithaffiliatesandassociates,owns,orwithinthreeyearsdidown,15%ormoreofthecorporation'soutstandingvotingstock.Theseprovisionsmayhavetheeffectofdelaying,deferring,orpreventingachangeinourcontrol.

No Cumulative Voting

UnderDelawarelaw,therighttovotecumulativelydoesnotexistunlessthecertificateofincorporationspecificallyauthorizescumulativevoting.Ouramendedandrestatedcertificateofincorporationwillnotauthorizecumulativevoting.Therefore,shareholdersholdingamajorityinvotingpowerofthesharesofourstockentitledtovotegenerallyintheelectionofdirectorswillbeabletoelectallourdirectors.

TableofContents

Special Stockholder Meetings

Ouramendedandrestatedcertificateofincorporationwillprovidethatspecialmeetingsofourstockholdersmaybecalledatanytimeonlybyoratthedirectionofourboardofdirectorsorthechairmanofourboardofdirectors;provided,however,atanytimewhenMagnusanditsaffiliatesbeneficiallyown,intheaggregate,atleast50%invotingpowerofourstockentitledtovotegenerallyintheelectionofdirectors,specialmeetingsofourstockholdersshallalsobecalledbyourboardofdirectorsorthechairmanofourboardofdirectorsattherequestofMagnusanditsaffiliates.Ouramendedandrestatedbylawswillprohibittheconductofanybusinessataspecialmeetingotherthanasspecifiedinthenoticeforsuchmeeting.Theseprovisionsmayhavetheeffectofdeferring,delayingordiscouraginghostiletakeovers,orchangesincontrolormanagementoftheCompany.

Requirements for Advance Notification of Director Nominations and Shareholder Proposals

Ouramendedandrestatedbylawsestablishadvancenoticeprocedureswithrespecttoshareholderproposalsandthenominationofcandidatesforelectionasdirectors,otherthannominationsmadebyoratthedirectionoftheboardofdirectorsoracommitteeoftheboardofdirectors.Inorderforanymattertobe"properlybrought"beforeameeting,ashareholderwillhavetocomplywithadvancenoticerequirementsandprovideuswithcertaininformation.Generally,tobetimely,ashareholder'snoticemustbereceivedatourprincipalexecutiveofficesnotlessthan90daysnormorethan120dayspriortothefirstanniversarydateoftheimmediatelyprecedingannualmeetingofshareholders.Ouramendedandrestatedbylawsalsospecifyrequirementsastotheformandcontentofashareholder'snotice.Ouramendedandrestatedbylawsallowthechairmanofthemeetingatameetingoftheshareholderstoadoptrulesandregulationsfortheconductofmeetingswhichmayhavetheeffectofprecludingtheconductofcertainbusinessatameetingiftherulesandregulationsarenotfollowed.Theseprovisionsmayalsodefer,delayordiscourageapotentialacquirerfromconductingasolicitationofproxiestoelecttheacquirer'sownslateofdirectorsorotherwiseattemptingtoinfluenceorobtaincontroloftheCompany.

No Stockholder Action by Written Consent

Ouramendedandrestatedcertificateofincorporationwillprecludestockholderactionbywrittenconsent.

Supermajority Provisions

Ouramendedandrestatedcertificateofincorporationandouramendedandrestatedbylawswillprovidethatourboardofdirectorsisexpresslyauthorizedtomake,alter,amend,change,addto,rescindorrepeal,inwholeorinpart,ourbylawswithoutastockholdervoteinanymatternotinconsistentwiththelawsoftheStateofDelawareandouramendedandrestatedcertificateofincorporation.ForaslongasMagnusanditsaffiliatesbeneficiallyown,intheaggregate,atleast50%invotingpowerofourstockentitledtovotegenerallyintheelectionofdirectors,anyamendment,alteration,rescissionorrepealofourbylawsbyourstockholderswillrequiretheaffirmativevoteofamajorityinvotingpoweroftheoutstandingsharesofourstockpresentinpersonorrepresentedbyproxyatthemeetingofstockholdersandentitledtovoteonsuchamendment,alteration,rescissionorrepeal.AtanytimewhenMagnusanditsaffiliatesbeneficiallyown,intheaggregate,lessthan50%invotingpowerofalloutstandingsharesofourstockentitledtovotegenerallyintheelectionofdirectors,anyamendment,alteration,rescissionorrepealofourbylawsbyourstockholderswillrequiretheaffirmativevoteoftheholdersofatleast662/3%invotingpowerofallthethen-outstandingsharesofourstockentitledtovotethereon,votingtogetherasasingleclass.

TableofContents

TheDGCLprovidesgenerallythattheaffirmativevoteofamajorityoftheoutstandingsharesentitledtovotethereon,votingtogetherasasingleclass,isrequiredtoamendacorporation'scertificateofincorporation,unlessthecertificateofincorporationrequiresagreaterpercentage.

OuramendedandrestatedcertificateofincorporationwillprovidethatatanytimewhenMagnusanditsaffiliatesbeneficiallyown,intheaggregate,lessthan50%invotingpowerofourstockentitledtovotegenerallyintheelectionofdirectors,thefollowingprovisionsinouramendedandrestatedcertificateofincorporationmaybeamended,altered,repealedorrescindedonlybytheaffirmativevoteoftheholdersofatleast662/3%invotingpowerofallthethen-outstandingsharesofourstockentitledtovotethereon,votingtogetherasasingleclass:

• theprovisionrequiringa662/3%supermajorityvoteforstockholderstoamendouramendedandrestatedbylaws;

• theprovisionsprovidingforaclassifiedboardofdirectors(theelectionandtermofourdirectors);

• theprovisionsregardingresignationandremovalofdirectors;

• theprovisionsregardingstockholderactionbywrittenconsent;

• theprovisionsregardingcallingspecialmeetingsofstockholders;

• theprovisionsregardingfillingvacanciesonourboardofdirectorsandnewlycreateddirectorships;

• theprovisionseliminatingmonetarydamagesforbreachesoffiduciarydutybyadirector;

• theprovisionregardingexclusiveforum;and

• theamendmentprovisionrequiringthattheaboveprovisionsbeamendedonlywitha662/3%supermajorityvote.

Thecombinationoftheclassificationofourboardofdirectors,thelackofcumulativevotingandthesupermajorityvotingrequirementswillmakeitmoredifficultforourexistingstockholderstoreplaceourboardofdirectorsaswellasforanotherpartytoobtaincontrolofusbyreplacingourboardofdirectors.Becauseourboardofdirectorshasthepowertoretainanddischargeourofficers,theseprovisionscouldalsomakeitmoredifficultforexistingstockholdersoranotherpartytoeffectachangeinmanagement.

TheseprovisionsmayhavetheeffectofdeterringhostiletakeoversordelayingorpreventingchangesincontrolofourmanagementortheCompany,suchasamerger,reorganizationortenderoffer.TheseprovisionsareintendedtoenhancethelikelihoodofcontinuedstabilityinthecompositionofourboardofdirectorsanditspoliciesandtodiscouragecertaintypesoftransactionsthatmayinvolveanactualorthreatenedacquisitionoftheCompany.Theseprovisionsaredesignedtoreduceourvulnerabilitytoanunsolicitedacquisitionproposal.Theprovisionsarealsointendedtodiscouragecertaintacticsthatmaybeusedinproxyfights.However,suchprovisionscouldhavetheeffectofdiscouragingothersfrommakingtenderoffersforoursharesand,asaconsequence,theyalsomayinhibitfluctuationsinthemarketpriceofoursharesthatcouldresultfromactualorrumoredtakeoverattempts.Suchprovisionsmayalsohavetheeffectofpreventingchangesinmanagement.

Dissenters'RightsofAppraisalandPayment

UndertheDGCL,withcertainexceptions,ourshareholderswillhaveappraisalrightsinconnectionwithamergerorconsolidationofus.PursuanttotheDGCL,shareholderswhoproperlyrequestandperfectappraisalrightsinconnectionwithsuchmergerorconsolidationwillhavetherighttoreceivepaymentofthefairvalueoftheirsharesasdeterminedbytheDelawareCourtofChancery.

TableofContents

Shareholders'DerivativeActions

UndertheDGCL,anyofourshareholdersmaybringanactioninournametoprocureajudgmentinourfavor,alsoknownasaderivativeaction,providedthattheshareholderbringingtheactionisaholderofoursharesatthetimeofthetransactiontowhichtheactionrelatesorsuchshareholder'sstockthereafterdevolvedbyoperationoflaw.

ExclusiveForum

Ouramendedandrestatedcertificateofincorporationwillprovidethatunlessweconsenttotheselectionofanalternativeforum,theCourtofChanceryoftheStateofDelawareshall,tothefullestextentpermittedbylaw,bethesoleandexclusiveforumforany:

• derivativeactionorproceedingbroughtonbehalfoftheCompany;

• actionassertingaclaimofbreachofafiduciarydutyowedbyanydirectororofficeroftheCompanytotheCompanyortheCompany'sshareholders,creditorsorotherconstituents;

• actionassertingaclaimagainsttheCompanyoranydirectororofficeroftheCompanyarisingpursuanttoanyprovisionoftheDGCLorouramendedandrestatedcertificateofincorporationorouramendedandrestatedbylaws;or

• actionassertingaclaimagainsttheCompanyoranydirectororofficeroftheCompanygovernedbytheinternalaffairsdoctrine.

AnypersonorentitypurchasingorotherwiseacquiringanyinterestinsharesofcapitalstockoftheCompanyshallbedeemedtohavenoticeofandconsentedtotheforumprovisionsinouramendedandrestatedcertificateofincorporation.However,theenforceabilityofsimilarforumprovisionsinothercompanies'certificatesofincorporationhasbeenchallengedinlegalproceedings,anditispossiblethatacourtcouldfindthesetypesofprovisionstobeunenforceable.

LimitationsonLiabilityandIndemnificationofOfficersandDirectors

TheDGCLauthorizescorporationstolimitoreliminatethepersonalliabilityofdirectorstocorporationsandtheirshareholdersformonetarydamagesforbreachesofdirectors'fiduciaryduties,subjecttocertainexceptions.Ouramendedandrestatedcertificateofincorporationincludesaprovisionthateliminatesthepersonalliabilityofdirectorsformonetarydamagesforanybreachoffiduciarydutyasadirector,excepttotheextentsuchexemptionfromliabilityorlimitationthereofisnotpermittedundertheDGCL.Theeffectoftheseprovisionsistoeliminatetherightsofusandourshareholders,throughshareholders'derivativesuitsonourbehalf,torecovermonetarydamagesfromadirectorforbreachoffiduciarydutyasadirector,includingbreachesresultingfromgrosslynegligentbehavior.However,exculpationdoesnotapplytoanydirectorifthedirectorhasactedinbadfaith,knowinglyorintentionallyviolatedthelaw,authorizedillegaldividendsorredemptionsorderivedanimproperbenefitfromhisorheractionsasadirector.

OuramendedandrestatedcertificateofincorporationandouramendedandrestatedbylawsprovidethatwemustindemnifyandadvanceexpensestoourdirectorsandofficerstothefullestextentauthorizedbytheDGCL.Wealsoareexpresslyauthorizedtocarrydirectors'andofficers'liabilityinsuranceprovidingindemnificationforourdirectors,officersandcertainemployeesforsomeliabilities.Webelievethattheseindemnificationandadvancementprovisionsandinsuranceareusefultoattractandretainqualifieddirectorsandexecutiveofficers.

Thelimitationofliability,indemnificationandadvancementprovisionsinouramendedandrestatedcertificateofincorporationandamendedandrestatedbylawsmaydiscourageshareholdersfrombringingalawsuitagainstdirectorsforbreachoftheirfiduciaryduty.Theseprovisionsalsomayhavetheeffectofreducingthelikelihoodofderivativelitigationagainstdirectorsandofficers,even

TableofContents

thoughsuchanaction,ifsuccessful,mightotherwisebenefitusandourshareholders.Inaddition,yourinvestmentmaybeadverselyaffectedtotheextentwepaythecostsofsettlementanddamageawardsagainstdirectorsandofficerspursuanttotheseindemnificationprovisions.

Thereiscurrentlynopendingmateriallitigationorproceedinginvolvinganyofourdirectors,officersoremployeesforwhichindemnificationissought.

Listing

OurcommonstockhasbeenapprovedforlistingontheNYSEunderthesymbol"GOLF."

TransferAgentandRegistrar

ThetransferagentandregistrarforourcommonstockwillbeComputershareTrustCompany,N.A.

TableofContents

SHARESELIGIBLEFORFUTURESALE

General

Priortothisoffering,therehasnotbeenapublicmarketforsharesofourcommonstock.Wecannotpredictwhateffect,ifany,futuresalesofsharesofcommonstock,ortheavailabilityforfuturesalesofsharesofcommonstockwillhaveonthemarketpriceofourcommonstockprevailingfromtimetotime.Nevertheless,salesofsubstantialamountsofcommonstock,includingsharesissuedupontheexerciseofoutstandingoptions,inthepublicmarket,ortheperceptionthatsuchsalescouldoccur,couldmateriallyandadverselyaffectthemarketpriceofourcommonstockandcouldimpairourfutureabilitytoraisecapitalthroughthesaleofourequityorequity-relatedsecuritiesatatimeandpricethatwedeemappropriate.See"RiskFactors—RisksRelatedtothisOfferingandOwnershipofOurCommonStock—Futuresales,ortheperceptionoffuturesales,byusorourexistingshareholdersinthepublicmarketfollowingthisofferingcouldcausethemarketpriceforourcommonstocktodecline."

Upontheclosingofthisoffering,wewillhave74,093,598sharesofcommonstockoutstanding,aftergivingeffectto(i)theautomaticconversionofallofouroutstandingConvertibleNotesintoanaggregateof32,624,820sharesofourcommonstockandtheautomaticconversionofallofouroutstandingConvertiblePreferredStockintoanaggregateof16,542,243sharesofourcommonstock,eachofwhichwilloccurpriortotheclosingofthisofferingand(ii)theexercisebyFilaKoreaofallofouroutstandingcommonstockwarrantsintoanaggregateof3,105,279sharesofourcommonstockwhichoccurredinJuly2016.AllsharessoldinthisofferingwillbefreelytradablewithoutregistrationundertheSecuritiesActandwithoutrestrictionbypersonsotherthanour"affiliates"(asdefinedunderRule144).The54,760,265sharesofcommonstockheldbycertainexistinginvestorsandcertainofourdirectorsandexecutiveofficersafterthisofferingwillbe"restricted"securitiesunderthemeaningofRule144andmaynotbesoldintheabsenceofregistrationundertheSecuritiesAct,unlessanexemptionfromregistrationisavailable,includingtheexemptionspursuanttoRule144undertheSecuritiesAct.TherestrictedsecuritiesheldbyouraffiliateswillbeavailableforsaleinthepublicmarketatvarioustimesafterthedateofthisprospectuspursuanttoRule144followingtheexpirationoftheapplicablelock-upperiod.

Anaggregateof8,190,000sharesofourcommonstockhavebeenreservedforissuanceunderour2015IncentivePlan(subjecttoadjustmentsforstocksplits,stockdividendsandsimilarevents).Inaddition,sharesofourcommonstockareissuableinrespectofthesettlementofupto50%oftheoutstandingEARs,whichwereissuedundertheEARPlan.

WeintendtofileoneormoreregistrationstatementsonFormS-8undertheSecuritiesActtoregistersharesofourcommonstockissuedorreservedforissuanceunderthe2015IncentivePlan.AnysuchFormS-8registrationstatementwillautomaticallybecomeeffectiveuponfiling.Accordingly,sharesregisteredundersuchregistrationstatementswillbeavailableforsaleintheopenmarket,unlesssuchsharesaresubjecttovestingrestrictionsorthelock-uprestrictionsdescribedbelow.WeexpectthattheinitialregistrationstatementonFormS-8willcover8,190,000sharesofourcommonstockissuablepursuanttoour2015IncentivePlan.WemayalsofileanadditionaloramendedregistrationstatementonFormS-8priortothesettlementofourEARswhichwillcoversharesofourcommonstockissuablepursuanttoourEARs.

Rule144

Ingeneral,underRule144,ascurrentlyineffect,aperson(orpersonswhosesharesareaggregated)whoisnotdeemedtobeorhavebeenoneofouraffiliatesforpurposesofRule144atanytimeduring90daysprecedingasaleandwhohasbeneficiallyownedthesharesproposedtobesoldforatleastsixmonths,includingtheholdingperiodofanypriorownerotherthananaffiliate,isentitledtosellsuchshareswithoutregistration,subjecttocompliancewiththepublicinformation

TableofContents

requirementsofRule144.Ifsuchapersonhasbeneficiallyownedthesharesproposedtobesoldforatleastoneyear,includingtheholdingperiodofapriorownerotherthananaffiliate,thensuchpersonisentitledtosellsuchshareswithoutcomplyingwithanyoftherequirementsofRule144.

Ingeneral,underRule144,ascurrentlyineffect,ouraffiliatesorpersonssellingsharesonbehalfofouraffiliates,whohavemetthesixmonthholdingperiodforbeneficialownershipof"restrictedshares"ofourcommonstock,areentitledtosellwithinanythree-monthperiod,anumberofsharesthatdoesnotexceedthegreaterof:

• 1%ofthenumberofsharesofourcommonstockthenoutstanding,whichwillequalapproximately740,936sharesimmediatelyafterthisoffering;or

• theaveragereportedweeklytradingvolumeofourcommonstockontheNYSEduringthefourcalendarweeksprecedingthefilingofanoticeonForm144withrespecttosuchsale.

SalesunderRule144byouraffiliatesorpersonssellingsharesonbehalfofouraffiliatesarealsosubjecttocertainmannerofsaleprovisionsandnoticerequirementsandtotheavailabilityofcurrentpublicinformationaboutus.Thesaleoftheseshares,ortheperceptionthatsaleswillbemade,couldadverselyaffectthepriceofourcommonstockafterthisofferingbecauseagreatsupplyofshareswouldbe,orwouldbeperceivedtobe,availableforsaleinthepublicmarket.

WeareunabletoestimatethenumberofsharesthatwillbesoldunderRule144sincethiswilldependonthemarketpriceforourcommonstock,thepersonalcircumstancesoftheshareholderandotherfactors.

Lock-UpAgreements

Afterthisoffering,therewillbe54,760,265sharesofcommonstock(or51,860,266sharesiftheunderwritersexercisetheiroptiontopurchaseadditionalsharesinfull)heldbyexecutiveofficers,directors,directornomineesandallofourexistingshareholders,includingthesellingshareholders,whoaresubjecttolock-upagreementsforaperiodof180daysafterthedateofthisprospectus,underwhichtheyhaveagreednottosellorotherwisedisposeoftheirsharesofcommonstock,subjecttocertainexceptions.J.P.MorganSecuritiesLLCandMorganStanley&Co.LLCmay,intheirsolediscretionandatanytimewithoutnotice,releasealloranyportionofthesharessubjecttoanysuchlock-upagreements.See"Underwriting"foradescriptionoftheselock-upagreements.

Followingthelockupperiodsdescribedabove,allofthesharesofourcommonstockthatarerestrictedsecuritiesorareheldbyouraffiliatesasofthedateofthisprospectuswillbeeligibleforsaleinthepublicmarketincompliancewithRule144undertheSecuritiesAct.

Rule701

Ingeneral,underRule701,ascurrentlyineffect,anyofouremployees,directors,officers,consultantsoradvisorswhopurchaseorreceivesharesfromusinconnectionwithacompensatorystockoroptionplanorotherwrittenagreementbeforetheeffectivedateofthisofferingisentitledtoresellsuchshares90daysaftertheeffectivedateofthisofferinginrelianceonRule144.

SecuritiesissuedinrelianceonRule701arerestrictedsecuritiesand,subjecttothecontractualrestrictionsdescribedabove,beginning90daysafterthedateofthisprospectus,maybesoldbypersonsotherthan"affiliates,"asdefinedinRule144,subjectonlytothemannerofsaleprovisionsofRule144andby"affiliates"underRule144withoutcompliancewithitsone-yearminimumholdingperiodrequirement.

TableofContents

TheShareholderTransaction

ForinformationregardingthearrangementsrelatingtoownershipofourcommonstockbyFilaKorea,see"TheShareholderTransaction."

InconnectionwiththeclosingoftheShareholderTransaction,FilaKorea,MagnusandtheFinancialInvestorswillenterintoanagreementpursuanttowhichFilaKoreaandMagnuswillagreenottotransfertheirsharesofourcommonstockuntiltheFinancialInvestorshavesoldorotherwisetransferredaminimumpercentageofourcommonstockthattheywillcontinuetoownaftertheclosingofthisoffering.

RegistrationRightsAgreement

Inconnectionwiththisoffering,weintendtoenterintoaregistrationrightsagreementthatwillprovideMagnusandtheFinancialInvestors"demand"registrationsandcustomary"piggyback"registrationrightsandthatwillrequireustofileashelfregistrationstatementonFormS-3coveringallsharessubjecttosuchregistrationrightsagreementonceweareeligibletodoso.TheMagnusLenderswillassumeMagnus'rightsundertheregistrationrightsagreementintheeventofaforeclosureorothertransferofthepledgedsharesofourcommonstockpursuanttotheMagnusTermLoan.TheregistrationrightsagreementwillalsoprovidethatwewillpaycertainexpensesrelatingtosuchregistrationsandindemnifytheregistrationrightsholdersagainstcertainliabilitiesthatmayariseundertheSecuritiesActortocontributetopaymentstheregistrationrightsholdersmayberequiredtomakeinrespectofthoseliabilities.

TableofContents

CERTAINUNITEDSTATESFEDERALINCOMEANDESTATETAXCONSEQUENCESTONON-U.S.HOLDERS

ThefollowingisasummaryofcertainUnitedStatesfederalincomeandestatetaxconsequencestoanon-U.S.holder(asdefinedbelow)ofthepurchase,ownershipanddispositionofourcommonstockasofthedatehereof.Exceptwherenoted,thissummarydealsonlywithcommonstockthatisheldasacapitalasset.

A"non-U.S.holder"meansaperson(otherthananentitytreatedasapartnershipforUnitedStatesfederalincometaxpurposes)thatisnotforUnitedStatesfederalincometaxpurposesanyofthefollowing:

• anindividualwhoisacitizenorresidentoftheUnitedStates;

• acorporation(oranyotherentitytreatedasacorporationforUnitedStatesfederalincometaxpurposes)createdororganizedinorunderthelawsoftheUnitedStates,anystatethereofortheDistrictofColumbia;

• anestatetheincomeofwhichissubjecttoUnitedStatesfederalincometaxationregardlessofitssource;or

• atrustifit(1)issubjecttotheprimarysupervisionofacourtwithintheUnitedStatesandoneormoreUnitedStatespersonshavetheauthoritytocontrolallsubstantialdecisionsofthetrustor(2)hasavalidelectionineffectunderapplicableUnitedStatesTreasuryregulationstobetreatedasaUnitedStatesperson.

ThissummaryisbaseduponprovisionsoftheInternalRevenueCodeof1986,asamended,andTreasuryregulationsthereunder,publishedrulingsandadministrativeannouncementsoftheInternalRevenueServiceandjudicialdecisions,ineachcaseasofthedatehereof.Thoseauthoritiesmaybechanged,perhapsretroactively,soastoresultinUnitedStatesfederalincomeandestatetaxconsequencesdifferentfromthosesummarizedbelow.ThissummarydoesnotaddressallaspectsofUnitedStatesfederalincomeandestatetaxesanddoesnotdealwithotherfederaltaxlawssuchasgifttaxlaws,foreign,state,localorothertaxconsiderationsthatmayberelevanttonon-U.S.holdersinlightoftheirparticularcircumstances.Inaddition,itdoesnotrepresentadetaileddescriptionoftheUnitedStatesfederalincometaxconsequencesapplicabletoyouifyouaresubjecttospecialtreatmentundertheUnitedStatesfederalincometaxlaws(includingifyouareaUnitedStatesexpatriate,"controlledforeigncorporation,""passiveforeigninvestmentcompany"orapartnershiporotherpass-throughentityforUnitedStatesfederalincometaxpurposes).WecannotassureyouthatachangeinlawwillnotaltersignificantlythetaxconsiderationsthatwedescribeinthissummaryorthattheInternalRevenueServiceoracourtwillnottakeacontrarypositiontothosewedescribeinthissummary.

IfanentitytreatedasapartnershipforUnitedStatesfederalincometaxpurposesholdsourcommonstock,thetaxtreatmentofapartnerwillgenerallydependuponthestatusofthepartnerandtheactivitiesofthepartnership.Ifyouareapartnerofapartnershipholdingourcommonstock,youshouldconsultyourtaxadvisors.

Thisdiscussionisforinformationalpurposesonlyandisnottaxadvice.Ifyouareconsideringthepurchaseofourcommonstock,youshouldconsultyourowntaxadvisorsconcerningtheparticularUnitedStatesfederalincomeandestatetaxconsequencestoyouoftheownershipofthecommonstock,aswellastheconsequencestoyouarisingunderotherfederaltaxlawsorthelawsofanyothertaxingjurisdiction.

DividendsandOtherDistributions

DistributionsofcashorpropertyonourcommonstockwillconstitutedividendsforUnitedStatesfederalincometaxpurposestotheextentpaidfromourcurrentoraccumulatedearningsandprofits,

TableofContents

asdeterminedunderUnitedStatesfederalincometaxprinciples.AmountsnottreatedasdividendsforUnitedStatesfederalincometaxpurposeswillconstituteareturnofcapitalandfirstbeappliedagainstandreduceanon-U.S.holder'sadjustedtaxbasisinitscommonstock,butnotbelowzero.Anyexcesswillbetreatedascapitalgainandwillbetreatedasdescribedbelowunder"—GainonTaxableDispositionofCommonStock."

Dividendspaidtoanon-U.S.holderofourcommonstockgenerallywillbesubjecttowithholdingofUnitedStatesfederalincometaxata30%rateofthegrossamountofthedividends(orsuchlowerrateasmaybespecifiedbyanapplicableincometaxtreaty).However,dividendsthatareeffectivelyconnectedwiththeconductofatradeorbusinessbythenon-U.S.holderwithintheUnitedStates(and,ifrequiredbyanapplicableincometaxtreaty,areattributabletoaUnitedStatespermanentestablishment)arenotsubjecttothewithholdingtax,providedcertaincertificationanddisclosurerequirementsaresatisfied.Instead,suchdividendsaresubjecttoUnitedStatesfederalincometaxonanetincomebasisattheregulargraduatedratesapplicabletoaUnitedStatespersonasdefinedundertheCode.Anysucheffectivelyconnecteddividendsreceivedbyaforeigncorporationmaybesubjecttoanadditional"branchprofitstax"ata30%rateorsuchlowerrateasmaybespecifiedbyanapplicableincometaxtreaty.Non-U.S.holdersshouldconsulttheirtaxadvisorsregardinganyapplicabletaxtreatiesthatmayprovidefordifferentrules.

Anon-U.S.holderofourcommonstockwhowishestoclaimthebenefitofanapplicabletreatyrateandavoidbackupwithholding,asdiscussedbelow,fordividendswillberequired(a)tocompletetheapplicableInternalRevenueServiceFormW-8andcertifyunderpenaltyofperjurythatsuchholderisnotaUnitedStatespersonasdefinedundertheCodeandiseligiblefortreatybenefitsandfurnishittotheapplicablewithholdingagentor(b)ifourcommonstockisheldthroughcertainforeignintermediaries,tosatisfytherelevantcertificationrequirementsofapplicableUnitedStatesTreasuryregulations.Specialcertificationandotherrequirementsapplytocertainnon-U.S.holdersthatarepass-throughentitiesratherthancorporationsorindividuals.

Anon-U.S.holderofourcommonstockeligibleforareducedrateofUnitedStateswithholdingtaxpursuanttoanincometaxtreatymayobtainarefundofanyexcessamountswithheldbytimelyfilinganappropriateclaimforrefundwiththeInternalRevenueService.

GainonTaxableDispositionofCommonStock

AnygainrealizedonthetaxabledispositionofourcommonstockgenerallywillnotbesubjecttoUnitedStatesfederalincometaxunless:

• thegainiseffectivelyconnectedwiththeconductofatradeorbusinessofthenon-U.S.holderintheUnitedStates(and,ifrequiredbyanapplicableincometaxtreaty,isattributabletoaUnitedStatespermanentestablishmentofthenon-U.S.holder);

• thenon-U.S.holderisanindividualwhoispresentintheUnitedStatesfor183daysormoreinthetaxableyearofthatdisposition,andcertainotherconditionsaremet;or

• weareorhavebeena"UnitedStatesrealpropertyholdingcorporation"forUnitedStatesfederalincometaxpurposes.

Anon-U.S.holderdescribedinthefirstbulletpointimmediatelyabovewillbesubjecttotaxonthenetgainderivedfromthedispositionunderregulargraduatedUnitedStatesfederalincometaxratesapplicabletoaUnitedStatespersonasdefinedundertheCode.Anindividualnon-U.S.holderdescribedinthesecondbulletpointimmediatelyabovewillbesubjecttoaflat30%taxonthegainderivedfromthedisposition,whichmaybeoffsetbyUnitedStatessourcecapitallosses,eventhoughtheindividualisnotconsideredaresidentoftheUnitedStates.Ifanon-U.S.holderthatisaforeigncorporationfallsunderthefirstbulletpointimmediatelyabove,itmayalsobesubjecttothebranchprofitstaxequalto30%(orsuchlowerrateasmaybespecifiedbyanapplicableincometaxtreaty)of

TableofContents

itseffectivelyconnectedearningsandprofits(whichcouldbeincreasedbysuchgain),subjecttoadjustments.

Webelievewearenotanddonotanticipatebecominga"UnitedStatesrealpropertyholdingcorporation"forUnitedStatesfederalincometaxpurposes.

FederalEstateTax

Commonstockheldbyanindividualnon-U.S.holderatthetimeofdeathwillbeincludedinsuchholder'sgrossestateforUnitedStatesfederalestatetaxpurposes,unlessanapplicableestatetaxtreatyprovidesotherwise.

InformationReportingandBackupWithholding

We(ortheapplicablepayingagent)mustreportannuallytotheInternalRevenueServiceandtoeachnon-U.S.holdertheamountofdividendspaidtosuchholderandthetaxwithheldwithrespecttosuchdividends,regardlessofwhetherwithholdingwasrequired.Copiesoftheinformationreturnsreportingsuchdividendsandwithholdingmayalsobemadeavailabletothetaxauthoritiesinthecountryinwhichthenon-U.S.holderresidesundertheprovisionsofanapplicableincometaxtreaty.

Anon-U.S.holderwillbesubjecttobackupwithholdingfordividendspaidtosuchholderunlesssuchholdercertifiesunderpenaltyofperjurythatitisanon-U.S.holder(andtheapplicablewithholdingagentdoesnothaveactualknowledgeorreasontoknowthatsuchholderisaUnitedStatespersonasdefinedundertheCode),orsuchholderotherwiseestablishesanexemption.

Informationreportingand,dependingonthecircumstances,backupwithholdingwillapplytotheproceedsofasaleofourcommonstockwithintheUnitedStatesorconductedthroughcertainUnitedStates-relatedfinancialintermediaries,unlessthebeneficialownercertifiesunderpenaltyofperjurythatitisanon-U.S.holder(andtheapplicablewithholdingagentdoesnothaveactualknowledgeorreasontoknowthatthebeneficialownerisaUnitedStatespersonasdefinedundertheCode),orsuchownerotherwiseestablishesanexemption.Proceedsofadispositionofourcommonstockconductedthroughanon-UnitedStatesofficeofanon-UnitedStatesbrokergenerallywillnotbesubjecttobackupwithholdingorinformationreporting.

Backupwithholdingisnotanadditionaltax.Anyamountswithheldunderthebackupwithholdingrulesmaybeallowedasarefundoracreditagainstanon-U.S.holder'sUnitedStatesfederalincometaxliabilityprovidedtherequiredinformationistimelyfurnishedtotheInternalRevenueService.

AdditionalWithholdingRequirements

UnderSections1471through1474oftheCode(suchSectionscommonlyreferredtoasFATCA),a30%UnitedStatesfederalwithholdingtaxmayapplytoanydividendspaidonourcommonstockand,foradispositionofourcommonstockoccurringafterDecember31,2018,thegrossproceedsfromsuchdisposition,ineachcasepaidto(i)a"foreignfinancialinstitution"(asspecificallydefinedintheCode)whichdoesnotprovidesufficientdocumentation,typicallyonIRSFormW-8BEN-E,evidencingeither(x)anexemptionfromFATCA,or(y)itscompliance(ordeemedcompliance)withFATCA(whichmayalternativelybeintheformofcompliancewithanintergovernmentalagreementwiththeUnitedStates)inamannerwhichavoidswithholding,or(ii)a"non-financialforeignentity"(asspecificallydefinedintheCode)whichdoesnotprovidesufficientdocumentation,typicallyonIRSFormW-8BEN-E,evidencingeither(x)anexemptionfromFATCA,or(y)adequateinformationregardingcertainsubstantialUnitedStatesbeneficialownersofsuchentity(ifany).IfadividendpaymentisbothsubjecttowithholdingunderFATCAandsubjecttothewithholdingtaxdiscussedaboveunder"—DividendsandOtherDistributions,"thewithholdingunderFATCAmaybecreditedagainst,andthereforereduce,suchotherwithholdingtax.Youshouldconsultyourowntaxadvisorregardingtheserequirementsandwhethertheymayberelevanttoyourownershipanddispositionofourcommonstock.

TableofContents

UNDERWRITING

Thesellingshareholdersareofferingthesharesofcommonstockdescribedinthisprospectusthroughanumberofunderwriters.J.P.MorganSecuritiesLLCandMorganStanley&Co.LLCareactingasjointbook-runningmanagersoftheofferingandasrepresentativesoftheseveralunderwriters.Weandthesellingshareholdershaveenteredintoanunderwritingagreementwiththeunderwriters.Subjecttothetermsandconditionsoftheunderwritingagreement,thesellingshareholdershaveagreedtoselltotheunderwriters,andeachunderwriterhasseverallyagreedtopurchase,atthepublicofferingpricelesstheunderwritingdiscountsetforthonthecoverpageofthisprospectus,thenumberofsharesofcommonstocklistednexttoitsnameinthefollowingtable:

Theunderwritersarecommittedtopurchaseallthesharesofcommonstockofferedbythesellingshareholdersiftheypurchaseanysharesofcommonstock.Theunderwritingagreementalsoprovidesthatifanunderwriterdefaults,thepurchasecommitmentsofnon-defaultingunderwritersmayalsobeincreasedortheofferingmaybeterminated.

Theunderwritersproposetoofferthesharesofcommonstockbeingsoldbythesellingshareholdersdirectlytothepublicattheinitialpublicofferingpricesetforthonthecoverpageofthisprospectusandtocertaindealersatthatpricelessaconcessionnotinexcessof$pershare.Aftertheinitialpublicofferingoftheshares,theofferingpriceandothersellingtermsmaybechangedbytheunderwriters.Certainoftheunderwritersmaysellsharestothepublicthroughoneormoreoftheiraffiliates,including,assellingagents.

Weandthesellingshareholdershaveagreedtoindemnifytheunderwritersagainstcertainliabilities,includingliabilitiesundertheSecuritiesAct,ortocontributetopaymentstheunderwritersmayberequiredtomakeinrespectofthoseliabilities.

OptiontoPurchaseAdditionalShares

Theunderwritershaveanoptiontopurchaseupto2,899,999additionalsharesofcommonstockfromthesellingshareholders.Theunderwritershave30daysfollowingthedateofthisprospectustoexercisethisoption.Anysharespurchasedbytheunderwriterswillbeallocatedamongthesellingshareholdersonaproratabasisbasedonthenumberofsharessuchsellingshareholderhasagreedtosellpursuanttothisoption.Ifanysharesarepurchasedwiththisoption,theunderwriterswillpurchasesharesinapproximatelythesameproportionasshowninthetableabove.Ifanyadditionalsharesofcommonstockarepurchased,theunderwriterswilloffertheadditionalsharesonthesametermsasthoseonwhichthesharesarebeingoffered.

Name NumberofShares

J.P.MorganSecuritiesLLC MorganStanley&Co.LLC NomuraSecuritiesInternational,Inc. UBSSecuritiesLLC CreditSuisseSecurities(USA)LLC DaiwaCapitalMarketsAmericaInc. DeutscheBankSecuritiesInc. JefferiesLLC WellsFargoSecurities,LLC D.A.Davidson&Co. KeyBancCapitalMarketsInc. RaymondJames&Associates,Inc. SunTrustRobinsonHumphrey,Inc.

Total 19,333,333

TableofContents

UnderwritingDiscountandExpenses

Theunderwritingfeeisequaltothepublicofferingpricepershareofcommonstocklesstheamountpaidbytheunderwriterstothesellingshareholderspershareofcommonstocksoldbythesellingshareholders.Theunderwritingfeeis$pershareofcommonstocksoldbythesellingshareholders.Thefollowingtableshowsthepershareandtotalunderwritingdiscounttobepaidtotheunderwritersassumingbothnoexerciseandfullexerciseoftheunderwriters'over-allotmentoptiontopurchaseadditionalshares.

Weestimatethatthetotalexpensesofthisoffering,includingregistration,filingandlistingfees,printingfeesandlegalandaccountingexpenses,butexcludingtheunderwritingdiscount,willbeapproximately$9.3million.WehavealsoagreedtoreimbursetheunderwritersforcertainoftheirexpensesrelatedtothefilingandclearanceoftheofferingbyFINRAassetforthintheunderwritingagreement.

Aprospectusinelectronicformatmaybemadeavailableonthewebsitesmaintainedbyoneormoreunderwriters,orsellinggroupmembers,ifany,participatingintheoffering.Theunderwritersmayagreetoallocateanumberofsharestounderwritersandsellinggroupmembersforsaletotheironlinebrokerageaccountholders.InternetdistributionswillbeallocatedbytherepresentativestounderwritersandsellinggroupmembersthatmaymakeInternetdistributionsonthesamebasisasotherallocations.

DirectedShareProgram

Atourrequest,theunderwritershavereservedforsale,attheinitialpublicofferingprice,upto2.0%ofthecommonstockofferedbythisprospectusforsaletoourdirectornominees,officersandcertainofouremployeesandotherpersonsassociatedwithus.Pursuanttotheunderwritingagreement,thesaleswillbemadebyJ.P.MorganSecuritiesLLC,anunderwriterofthisoffering,throughaDirectedShareProgram.Ifthesepersonspurchasereservedcommonstock,itwillreducethenumberofsharesofcommonstockavailableforsaletothegeneralpublic.Anyreservedsharesofcommonstockthatarenotsopurchasedwillbeofferedbytheunderwriterstothegeneralpubliconthesametermsastheothersharesofcommonstockofferedbythisprospectus.

Lock-upAgreements

Wewillagreethatwewillnot,subjecttocertainexceptions,(1)offer,pledge,announcetheintentiontosell,sell,contracttosell,sellanyoptionorcontracttopurchase,purchaseanyoptionorcontracttosell,grantanyoption,rightorwarranttopurchase,orotherwisetransferordisposeof,directlyorindirectly,orfilewiththeSECaregistrationstatementundertheSecuritiesActrelatingto,anysharesofourcommonstockorsecuritiesconvertibleintoorexchangeableorexercisableforanysharesofourcommonstock,orpubliclydisclosetheintentiontomakeanyoffer,sale,pledge,dispositionorfiling,or(2)enterintoanyswaporotherarrangementthattransfersalloraportionoftheeconomicconsequencesassociatedwiththeownershipofanysharesofcommonstockoranysuchothersecurities(regardlessofwhetheranyofthesetransactionsaretobesettledbythedeliveryofsharesofcommonstockorsuchothersecurities,incashorotherwise),ineachcasewithoutthepriorwrittenconsentofJ.P.MorganSecuritiesLLCandMorganStanley&Co.LLCforaperiodof180daysafterthedateofthisprospectusotherthanthesharesofourcommonstocktobesoldorissuedhereunderandsubjecttootherlimitedexceptions.

Paidbythesellingshareholders

Withoutover-allotment

exercise

Withover-allotment

exercisePershare $ $Total $ $

TableofContents

Ourexecutiveofficers,directors,directornomineesandallofourexistingshareholders,includingthesellingshareholders,haveenteredintolock-upagreementswiththeunderwriterspursuanttowhicheachofthesepersonsorentities,foraperiodof180daysafterthedateofthisprospectus,maynotwithoutthepriorwrittenconsentofJ.P.MorganSecuritiesLLCandMorganStanley&Co.LLC,subjecttocertainexceptions,(1)offer,pledge,announcetheintentiontosell,sell,contracttosell,sellanyoptionorcontracttopurchase,purchaseanyoptionorcontracttosell,grantanyoption,rightorwarranttopurchaseorotherwisetransferordisposeof,directlyorindirectly,anysharesofourcommonstockoranysecuritiesconvertibleintoorexercisableorexchangeableforourcommonstock(including,withoutlimitation,commonstockorsuchothersecuritieswhichmaybedeemedtobebeneficiallyownedbysuchdirectors,executiveofficers,managersandmembersinaccordancewiththerulesandregulationsoftheSECandsecuritieswhichmaybeissueduponexerciseofastockoptionorwarrant),(2)enterintoanyswaporotheragreementthattransfers,inwholeorinpart,anyoftheeconomicconsequencesofownershipofthecommonstockorsuchothersecurities,whetheranysuchtransactiondescribedinclause(1)or(2)aboveistobesettledbydeliveryofcommonstockorsuchothersecurities,incashorotherwise,or(3)makeanydemandfororexerciseanyrightwithrespecttotheregistrationofanysharesofourcommonstockoranysecurityconvertibleintoorexercisableorexchangeableforourcommonstock,otherthanthesharesofourcommonstocktobesoldorissuedhereunderandsubjecttootherlimitedexceptions.

Listing

OurcommonstockhasbeenapprovedforlistingontheNYSEunderthesymbol"GOLF."

PriceStabilizationandShortPositions

Inconnectionwiththisoffering,theunderwritersmayengageinstabilizingtransactions,whichinvolvesmakingbidsfor,purchasingandsellingsharesofcommonstockintheopenmarketforthepurposeofpreventingorretardingadeclineinthemarketpriceofthecommonstockwhilethisofferingisinprogress.Thesestabilizingtransactionsmayincludemakingshortsalesofthecommonstock,whichinvolvesthesalebytheunderwritersofagreaternumberofsharesofcommonstockthantheyarerequiredtopurchaseinthisoffering,andpurchasingsharesofcommonstockontheopenmarkettocoverpositionscreatedbyshortsales.Shortsalesmaybe"covered"shorts,whichareshortpositionsinanamountnotgreaterthantheunderwriters'over-allotmentoptionreferredtoabove,ormaybe"naked"shorts,whichareshortpositionsinexcessofthatamount.Theunderwritersmaycloseoutanycoveredshortpositioneitherbyexercisingtheirover-allotmentoption,inwholeorinpart,orbypurchasingsharesintheopenmarket.Inmakingthisdetermination,theunderwriterswillconsider,amongotherthings,thepriceofsharesavailableforpurchaseintheopenmarketcomparedtothepriceatwhichtheunderwritersmaypurchasesharesthroughtheover-allotmentoption.Anakedshortpositionismorelikelytobecreatediftheunderwritersareconcernedthattheremaybedownwardpressureonthepriceofthecommonstockintheopenmarketthatcouldadverselyaffectinvestorswhopurchaseinthisoffering.Totheextentthattheunderwriterscreateanakedshortposition,theywillpurchasesharesintheopenmarkettocovertheposition.

Theunderwritershaveadvisedusthat,pursuanttoRegulationMoftheSecuritiesAct,theymayalsoengageinotheractivitiesthatstabilize,maintainorotherwiseaffectthepriceofthecommonstock,includingtheimpositionofpenaltybids.Thismeansthatiftherepresentativesoftheunderwriterspurchasecommonstockintheopenmarketinstabilizingtransactionsortocovershortsales,therepresentativescanrequiretheunderwritersthatsoldthosesharesaspartofthisofferingtorepaytheunderwritingdiscountreceivedbythem.

Theseactivitiesmayhavetheeffectofraisingormaintainingthemarketpriceofthecommonstockorpreventingorretardingadeclineinthemarketpriceofthecommonstockand,asaresult,thepriceofthecommonstockmaybehigherthanthepricethatotherwisemightexistintheopenmarket.

TableofContents

Iftheunderwriterscommencetheseactivities,theymaydiscontinuethematanytime.TheunderwritersmaycarryoutthesetransactionsontheNYSE,intheover-the-countermarketorotherwise.

NewIssueofSecurities

Priortothisoffering,therehasbeennopublicmarketforourcommonstock.Theinitialpublicofferingpricewillbedeterminedbynegotiationsbetweenthesellingshareholdersandtherepresentativesoftheunderwriters.Indeterminingtheinitialpublicofferingprice,thesellingshareholdersandtherepresentativesoftheunderwritersexpecttoconsideranumberoffactorsincluding:

• theinformationsetforthinthisprospectusandotherwiseavailabletotherepresentatives;

• ourprospectsandthehistoryandprospectsfortheindustryinwhichwecompete;

• anassessmentofourmanagement;

• ourprospectsforfutureearnings;

• thegeneralconditionofthesecuritiesmarketsatthetimeofthisoffering;

• therecentmarketpricesof,anddemandfor,publiclytradedcommonstockofgenerallycomparablecompanies;and

• otherfactorsdeemedrelevantbytheunderwritersandthesellingshareholders.

Neitherwe,thesellingshareholdersnortheunderwriterscanassureinvestorsthatanactivetradingmarketwilldevelopforourcommonstockorthattheshareswilltradeinthepublicmarketatorabovetheinitialpublicofferingprice.

OtherthanintheUnitedStates,noactionhasbeentakenbyusortheunderwritersthatwouldpermitapublicofferingofthesecuritiesofferedbythisprospectusinanyjurisdictionwhereactionforthatpurposeisrequired.Thesecuritiesofferedbythisprospectusmaynotbeofferedorsold,directlyorindirectly,normaythisprospectusoranyotherofferingmaterialoradvertisementsinconnectionwiththeofferandsaleofanysuchsecuritiesbedistributedorpublishedinanyjurisdiction,exceptundercircumstancesthatwillresultincompliancewiththeapplicablerulesandregulationsofthatjurisdiction.Personsintowhosepossessionthisprospectuscomesareadvisedtoinformthemselvesaboutandtoobserveanyrestrictionsrelatingtotheofferingandthedistributionofthisprospectus.Thisprospectusdoesnotconstituteanoffertosellorasolicitationofanoffertobuyanysecuritiesofferedbythisprospectusinanyjurisdictioninwhichsuchanofferorasolicitationisunlawful.

NoticetoProspectiveInvestorsinCanada

Thesharesmaybesoldonlytopurchaserspurchasing,ordeemedtobepurchasing,asprincipalthatareaccreditedinvestors,asdefinedinNationalInstrument45-106ProspectusExemptionsorsubsection73.3(1)oftheSecuritiesAct(Ontario),andarepermittedclients,asdefinedinNationalInstrument31-103RegistrationRequirements,ExemptionsandOngoingRegistrantObligations.Anyresaleofthesharesmustbemadeinaccordancewithanexemptionfrom,orinatransactionnotsubjectto,theprospectusrequirementsofapplicablesecuritieslaws.

SecuritieslegislationincertainprovincesorterritoriesofCanadamayprovideapurchaserwithremediesforrescissionordamagesifthisprospectus(includinganyamendmentthereto)containsamisrepresentation,providedthattheremediesforrescissionordamagesareexercisedbythepurchaserwithinthetimelimitprescribedbytheSecuritieslegislationofthepurchaser'sprovinceorterritory.ThepurchasershouldrefertoanyapplicableprovisionsoftheSecuritieslegislationofthepurchaser'sprovinceorterritoryforparticularsoftheserightsorconsultwithalegaladvisor.

TableofContents

Pursuanttosection3A.3ofNationalInstrument33-105UnderwritingConflicts(NI33-105),theunderwritersarenotrequiredtocomplywiththedisclosurerequirementsofNI33-105regardingunderwriterconflictsofinterestinconnectionwiththisoffering.

NoticetoProspectiveInvestorsintheEuropeanEconomicArea

InrelationtoeachMemberStateoftheEuropeanEconomicAreawhichhasimplementedtheProspectusDirective(each,aRelevantMemberState),fromandincludingthedateonwhichtheEuropeanUnionProspectusDirective,ortheEUProspectusDirective,wasimplementedinthatRelevantMemberState,ortheRelevantImplementationDate,anofferofsecuritiesdescribedinthisprospectusmaynotbemadetothepublicinthatRelevantMemberStatepriortothepublicationofaprospectusinrelationtotheshareswhichhasbeenapprovedbythecompetentauthorityinthatRelevantMemberStateor,whereappropriate,approvedinanotherRelevantMemberStateandnotifiedtothecompetentauthorityinthatRelevantMemberState,allinaccordancewiththeEUProspectusDirective,exceptthat,witheffectfromandincludingtheRelevantImplementationDate,anofferofsecuritiesdescribedinthisprospectusmaybemadetothepublicinthatRelevantMemberStateatanytime:

• toanylegalentitywhichisaqualifiedinvestorasdefinedundertheEUProspectusDirective;

• tofewerthan100or,iftheRelevantMemberStatehasimplementedtherelevantprovisionofthe2010PDAmendingDirective,150naturalorlegalpersons(otherthanqualifiedinvestorsasdefinedintheEUProspectusDirective);or

• inanyothercircumstancesfallingwithinArticle3(2)oftheEUProspectusDirective,providedthatnosuchofferofsecuritiesdescribedinthisprospectusshallresultinarequirementforthepublicationbyusofaprospectuspursuanttoArticle3oftheEUProspectusDirective.

Forthepurposesofthisprovision,theexpressionan"offerofsecuritiestothepublic"inrelationtoanysecuritiesinanyRelevantMemberStatemeansthecommunicationinanyformandbyanymeansofsufficientinformationonthetermsoftheofferandthesecuritiestobeofferedsoastoenableaninvestortodecidetopurchaseorsubscribeforthesecurities,asthesamemaybevariedinthatMemberStatebyanymeasureimplementingtheEUProspectusDirectiveinthatMemberState.Theexpression"EUProspectusDirective"meansDirective2003/71/EC(andanyamendmentsthereto,includingthe2010PDAmendingDirective,totheextentimplementedintheRelevantMemberState)andincludesanyrelevantimplementingmeasureineachRelevantMemberState,andtheexpression"2010PDAmendingDirective"meansDirective2010/73/EU.

NoticetoProspectiveInvestorsintheUnitedKingdom

Thisdocumentisonlybeingdistributedtoandisonlydirectedat(1)personswhoareoutsidetheUnitedKingdom,(2)toinvestmentprofessionalsfallingwithinArticle19(5)oftheFinancialServicesandMarketsAct2000(FinancialPromotion)Order2005,orOrder,or(3)highnetworthentities,andotherpersonstowhomitmaylawfullybecommunicated,fallingwithinArticle49(2)(a)to(d)oftheOrder(allsuchpersonstogetherbeingreferredtoasrelevantpersons).Thesecuritiesareonlyavailableto,andanyinvitation,offeroragreementtosubscribe,purchaseorotherwiseacquiresuchsecuritieswillbeengagedinonlywith,relevantpersons.Anypersonwhoisnotarelevantpersonshouldnotactorrelyonthisdocumentoranyofitscontents.

NoticetoProspectiveInvestorsinFrance

NeitherthisprospectusnoranyotherofferingmaterialrelatingtothesharesdescribedinthisprospectushasbeensubmittedtotheclearanceproceduresoftheAutorité des Marchés Financiers orofthecompetentauthorityofanothermemberstateoftheEuropeanEconomicAreaandnotifiedtotheAutorité des MarchésFinanciers. Theshareshavenotbeenofferedorsoldandwillnotbeofferedor

TableofContents

sold,directlyorindirectly,tothepublicinFrance.Neitherthisprospectusnoranyotherofferingmaterialrelatingtotheshareshasbeenorwillbe(i)released,issued,distributedorcausedtobereleased,issuedordistributedtothepublicinFrance;or(ii)usedinconnectionwithanyofferforsubscriptionorsaleofthesharestothepublicinFrance.

Suchoffers,salesanddistributionswillbemadeinFranceonly:

• toqualifiedinvestors(investisseurs qualifiés )and/ortoarestrictedcircleofinvestors(cercle restreint d'investisseurs ),ineachcaseinvestingfortheirownaccount,allasdefinedin,andinaccordancewith,articlesL.411-2,D.411-1,D.411-2,D.734-1,D.744-1,D.754-1andD.764-1oftheFrenchCode monétaire et financier ;

• toinvestmentservicesprovidersauthorizedtoengageinportfoliomanagementonbehalfofthirdparties;or

• inatransactionthat,inaccordancewitharticleL.411-2-II-1°-or-2°-or3°oftheFrenchCode monétaire et financier andarticle211-2oftheGeneralRegulations(Règlement Général )oftheAutorité des Marchés Financiers ,doesnotconstituteapublicoffer(appel public à l'épargne).

Thesharesmayberesolddirectlyorindirectly,onlyincompliancewitharticlesL.411-1,L.411-2,L412-1andL.621-8throughL.621-8-3oftheFrenchCodemonétaire et financier .

NoticetoProspectiveInvestorsinHongKong

ThesharesmaynotbeofferedorsoldinHongKongbymeansofanydocumentotherthan(i)incircumstanceswhichdonotconstituteanoffertothepublicwithinthemeaningoftheCompaniesOrdinance(Cap.32,LawsofHongKong),(ii)to"professionalinvestors"withinthemeaningoftheSecuritiesandFuturesOrdinance(Cap.571,LawsofHongKong)andanyrulesmadethereunderor(iii)inothercircumstanceswhichdonotresultinthedocumentbeinga"prospectus"withinthemeaningoftheCompaniesOrdinance(Cap.32,LawsofHongKong)andnoadvertisement,invitationordocumentrelatingtothesharesmaybeissuedormaybeinthepossessionofanypersonforthepurposeofissue(ineachcasewhetherinHongKongorelsewhere),whichisdirectedat,orthecontentsofwhicharelikelytobeaccessedorreadby,thepublicinHongKong(exceptifpermittedtodosounderthelawsofHongKong)otherthanwithrespecttoshareswhichareorareintendedtobedisposedofonlytopersonsoutsideHongKongoronlyto"professionalinvestors"withinthemeaningoftheSecuritiesandFuturesOrdinance(Cap.571,LawsofHongKong)andanyrulesmadethereunder.

NoticetoProspectiveInvestorsinJapan

TheshareshavenotbeenandwillnotberegisteredundertheFinancialInstrumentsandExchangeAct.Accordingly,thesecuritiesmaynotbeofferedorsold,directlyorindirectly,inJapanorto,orforthebenefitof,anyresidentofJapan(whichtermasusedhereinmeansanypersonresidentinJapan,includinganycorporationorotherentityorganizedunderthelawsofJapan,ortoothersforre-offeringorresale,directlyorindirectly,inJapanortoorforthebenefitofaresidentofJapan,exceptpursuanttoanexemptionfromtheregistrationrequirementsof,andotherwiseincompliancewith,theFinancialInstrumentsandExchangeActandanyotherapplicablelaws,regulationsandministerialguidelinesofJapan.

NoticetoProspectiveInvestorsinSingapore

ThisprospectushasnotbeenregisteredasaprospectuswiththeMonetaryAuthorityofSingapore.Accordingly,thisprospectusandanyotherdocumentormaterialinconnectionwiththeofferorsale,orinvitationforsubscriptionorpurchase,ofthesharesmaynotbecirculatedordistributed,normaythesharesbeofferedorsold,orbemadethesubjectofaninvitationforsubscriptionorpurchase,whetherdirectlyorindirectly,topersonsinSingaporeotherthan(i)toaninstitutionalinvestorunder

TableofContents

Section274oftheSecuritiesandFuturesAct,Chapter289ofSingapore,ortheSFA,(ii)toarelevantpersonpursuanttoSection275(1),oranypersonpursuanttoSection275(1A),andinaccordancewiththeconditionsspecifiedinSection275oftheSFAor(iii)otherwisepursuantto,andinaccordancewiththeconditionsof,anyotherapplicableprovisionoftheSFA,ineachcasesubjecttocompliancewiththeconditionssetforthintheSFA.

WherethesharesaresubscribedorpurchasedunderSection275oftheSFAbyarelevantpersonwhichis:(a)acorporation(whichisnotanaccreditedinvestor(asdefinedinSection4AoftheSFA))thesolebusinessofwhichistoholdinvestmentsandtheentiresharecapitalofwhichisownedbyoneormoreindividuals,eachofwhomisanaccreditedinvestor;or(b)atrust(wherethetrusteeisnotanaccreditedinvestor)whosesolepurposeistoholdinvestmentsandeachbeneficiaryofthetrustisanindividualwhoisanaccreditedinvestor,shares,debenturesandunitsofsharesanddebenturesofthatcorporationorthebeneficiaries'rightsandinterest(howsoeverdescribed)inthattrustshallnotbetransferredwithinsixmonthsafterthatcorporationorthattrusthasacquiredthesharespursuanttoanoffermadeunderSection275oftheSFAexcept:(i)toaninstitutionalinvestor(forcorporations,underSection274oftheSFA)ortoarelevantpersondefinedinSection275(2)oftheSFA,ortoanypersonpursuanttoanofferthatismadeontermsthatsuchshares,debenturesandunitsofsharesanddebenturesofthatcorporationorsuchrightsandinterestinthattrustareacquiredataconsiderationofnotlessthanS$200,000(oritsequivalentinaforeigncurrency)foreachtransaction,whethersuchamountistobepaidforincashorbyexchangeofsecuritiesorotherassets,andfurtherforcorporations,inaccordancewiththeconditionsspecifiedinSection275oftheSFA;(ii)wherenoconsiderationisorwillbegivenforthetransfer;or(iii)wherethetransferisbyoperationoflaw.

NoticetoProspectiveInvestorsinAustralia

Noprospectusorotherdisclosuredocument(asdefinedintheCorporationsAct2001(Cth)ofAustralia,orCorporationsAct)inrelationtothecommonstockhasbeenorwillbelodgedwiththeAustralianSecurities&InvestmentsCommission,orASIC.ThisdocumenthasnotbeenlodgedwithASICandisonlydirectedtocertaincategoriesofexemptpersons.Accordingly,ifyoureceivethisdocumentinAustralia:(a)youconfirmandwarrantthatyouareeither:(i)a"sophisticatedinvestor"undersection708(8)(a)or(b)oftheCorporationsAct;(ii)a"sophisticatedinvestor"undersection708(8)(c)or(d)oftheCorporationsActandthatyouhaveprovidedanaccountant'scertificatetouswhichcomplieswiththerequirementsofsection708(8)(c)(i)or(ii)oftheCorporationsActandrelatedregulationsbeforetheofferhasbeenmade;(iii)apersonassociatedwiththecompanyundersection708(12)oftheCorporationsAct;or(iv)a"professionalinvestor"withinthemeaningofsection708(11)(a)or(b)oftheCorporationsAct,andtotheextentthatyouareunabletoconfirmorwarrantthatyouareanexemptsophisticatedinvestor,associatedpersonorprofessionalinvestorundertheCorporationsActanyoffermadetoyouunderthisdocumentisvoidandincapableofacceptance;and(b)youwarrantandagreethatyouwillnotofferanyofthecommonstockforresaleinAustraliawithin12monthsofthatcommonstockbeingissuedunlessanysuchresaleofferisexemptfromtherequirementtoissueadisclosuredocumentundersection708oftheCorporationsAct.

NoticetoProspectiveInvestorsintheDubaiInternationalFinancialCentre,orDIFC

ThisprospectusrelatestoanExemptOfferinaccordancewiththeMarketRules2012oftheDubaiFinancialServicesAuthority,orDFSA.ThisprospectusisintendedfordistributiononlytopersonsofatypespecifiedintheMarketRules2012oftheDFSA.Itmustnotbedeliveredto,orreliedonby,anyotherperson.TheDFSAhasnoresponsibilityforreviewingorverifyinganydocumentsinconnectionwithExemptOffers.TheDFSAhasnotapprovedthisprospectusnortakenstepstoverifytheinformationsetforthhereinandhasnoresponsibilityforthisprospectus.Thesharestowhichthisprospectusrelatesmaybeilliquidand/orsubjecttorestrictionsontheirresale.Prospectivepurchasersofthesharesofferedshouldconducttheirownduediligenceontheshares.Ifyoudonotunderstandthecontentsofthisprospectusyoushouldconsultanauthorizedfinancialadvisor.

TableofContents

InrelationtoitsuseintheDIFC,thisprospectusisstrictlyprivateandconfidentialandisbeingdistributedtoalimitednumberofinvestorsandmustnotbeprovidedtoanypersonotherthantheoriginalrecipient,andmaynotbereproducedorusedforanyotherpurpose.TheinterestsinthesecuritiesmaynotbeofferedorsolddirectlyorindirectlytothepublicintheDIFC.

NoticetoProspectiveInvestorsinChina

Thisprospectusdoesnotconstituteapublicofferofthesharesofferedbythisprospectus,whetherbysaleorsubscription,inthePeople'sRepublicofChina,orthePRC.ThesharesarenotbeingofferedorsolddirectlyorindirectlyinthePRCtoorforthebenefitof,legalornaturalpersonsofthePRC.

Further,nolegalornaturalpersonsofthePRCmaydirectlyorindirectlypurchaseanyoftheshareswithoutobtainingallpriorPRC'sgovernmentalapprovalsthatarerequired,whetherstatutorilyorotherwise.Personswhocomeintopossessionofthisprospectusarerequiredbytheissueranditsrepresentativestoobservetheserestrictions.

NoticetoProspectiveInvestorsinSwitzerland

Thisprospectusisnotintendedtoconstituteanofferorsolicitationtopurchaseorinvestinthesharesdescribedherein.Thesharesmaynotbepubliclyoffered,soldoradvertised,directlyorindirectly,in,intoorfromSwitzerlandandwillnotbelistedontheSIXSwissExchangeoronanyotherexchangeorregulatedtradingfacilityinSwitzerland.Neitherthisprospectusnoranyotherofferingormarketingmaterialrelatingtothesharesconstitutesaprospectusassuchtermisunderstoodpursuanttoarticle652aorarticle1156oftheSwissCodeofObligationsandneitherthisprospectusnoranyotherofferingormarketingmaterialrelatingtothesharesmaybepubliclydistributedorotherwisemadepubliclyavailableinSwitzerland.

OtherRelationships

Theunderwritersandtheiraffiliatesarefull-servicefinancialinstitutionsengagedinvariousactivities,whichmayincludesecuritiestrading,commercialandinvestmentbanking,financialadvisory,investmentmanagement,investmentresearch,principalinvestment,hedging,financingandbrokerageactivities.Certainoftheunderwritersandtheiraffiliateshaveprovidedinthepasttousandouraffiliatesandmayprovidefromtimetotimeinthefuturecertaincommercialbanking,financialadvisory,investmentbankingandotherservicesforusandsuchaffiliatesintheordinarycourseoftheirbusiness,forwhichtheyhavereceivedandmaycontinuetoreceivecustomaryfeesandcommissions.Forinstance,anaffiliateofWellsFargoSecurities,LLC,anunderwriterinthisoffering,actsastheadministrativeagentunderthenewcreditagreementandcertainoftheotherunderwritersortheiraffiliatesactaslenders,andinsomecasesagentsormanagers,underourformercreditfacilities.Inaddition,fromtimetotime,certainoftheunderwritersandtheiraffiliatesmayaffecttransactionsfortheirownaccountortheaccountofcustomers,andholdonbehalfofthemselvesortheircustomers,longorshortpositionsinourdebtorequitysecuritiesorloans,andmaydosointhefuture.

TableofContents

LEGALMATTERS

ThevalidityofthesharesofcommonstockofferedbythisprospectuswillbepasseduponforusbySimpsonThacher&BartlettLLP,NewYork,NewYork.CertainlegalmattersrelatingtothisofferingwillbepasseduponfortheunderwritersbyLatham&WatkinsLLP,NewYork,NewYork.

EXPERTS

ThefinancialstatementsasofDecember31,2014andDecember31,2015andforeachofthethreeyearsintheperiodendedDecember31,2015includedinthisprospectushavebeensoincludedinrelianceonthereportofPricewaterhouseCoopersLLP,anindependentregisteredpublicaccountingfirm,givenontheauthorityofsaidfirmasexpertsinauditingandaccounting.

WHERECANYOUFINDMOREINFORMATION

WehavefiledwiththeSECaregistrationstatementonFormS-1undertheSecuritiesActwithrespecttothecommonstockofferedbythisprospectus.Thisprospectusisapartoftheregistrationstatementanddoesnotcontainalloftheinformationsetforthintheregistrationstatementanditsexhibitsandschedules,portionsofwhichhavebeenomittedaspermittedbytherulesandregulationsoftheSEC.Forfurtherinformationaboutusandourcommonstock,youshouldrefertotheregistrationstatementanditsexhibitsandschedules.Statementscontainedinthisprospectusaboutthecontentsofanycontractoranyotherdocumentfiledasanexhibitarenotcompleteandineachinstancewereferyoutothecopyofthecontractorotherdocumentfiledasanexhibittotheregistrationstatement.Eachofthesestatementsisqualifiedinallrespectsbythisreference.Theagreementsandotherdocumentsfiledasexhibitstothisregistrationstatementarenotintendedtoprovidefactualinformationorotherdisclosureotherthanwithrespecttothetermsoftheagreementsorotherdocumentsthemselves,andyoushouldnotrelyonthemforthatpurpose.Inparticular,anyrepresentationsandwarrantiesmadebytheregistrantintheseagreementsorotherdocumentsweremadesolelywithinthespecificcontextoftherelevantagreementordocumentandmaynotdescribetheactualstateofaffairsasofthedatetheyweremadeoratanyothertime.

OurregistrationstatementonFormS-1ofwhichthisprospectusisapartisavailabletothepublicontheSEC'swebsiteathttp://www.sec.gov.Youmayalsoreadandcopy,atSECprescribedrates,anydocumentwefilewiththeSEC,includingtheregistrationstatement(anditsexhibits)ofwhichthisprospectusisapart,attheSEC'sPublicReferenceRoomlocatedat100FStreet,N.E.,WashingtonD.C.20549.YoucancalltheSECat1-800-SEC-0330toobtaininformationontheoperationofthePublicReferenceRoom.

Upontheclosingofthisoffering,wewillbecomesubjecttothefullinformationalandperiodicreportingrequirementsundertheExchangeAct.Wewillfulfillourobligationswithrespecttosuchrequirementsbyfilingannual,quarterlyandcurrentreportsandotherinformationwiththeSEC.InadditiontotheSECwebsitedescribedabove,thosefilingswillalsobeavailabletothepublicon,oraccessiblethrough,ourwebsiteundertheheading"InvestorRelations"atwww.acushnetcompany.com.TheinformationwefilewiththeSECorcontainedonoraccessiblethroughourcorporatewebsiteoranyotherwebsitethatwemaymaintainisnotpartofthisprospectusortheregistrationstatementofwhichthisprospectusisapart.Weintendtomakeavailabletoourcommonshareholdersannualreportscontainingconsolidatedfinancialstatementsauditedbyanindependentregisteredpublicaccountingfirm.

TableofContents

INDEXTOCONSOLIDATEDFINANCIALSTATEMENTS

Page(s)

AuditedConsolidatedFinancialStatements

ReportofIndependentRegisteredPublicAccountingFirm F-2

ConsolidatedBalanceSheets F-3

ConsolidatedStatementsofOperations F-4

ConsolidatedStatementsofComprehensiveIncome(Loss) F-5

ConsolidatedStatementsofCashFlows F-6

ConsolidatedStatementsofRedeemableConvertiblePreferredStockandEquity F-7

NotestoConsolidatedFinancialStatements F-8

UnauditedConsolidatedFinancialStatements

ConsolidatedBalanceSheets(unaudited) F-57

ConsolidatedStatementsofOperations(unaudited) F-58

ConsolidatedStatementsofComprehensiveIncome(unaudited) F-59

ConsolidatedStatementsofCashFlows(unaudited) F-60

ConsolidatedStatementsofRedeemableConvertiblePreferredStockandEquity(unaudited) F-61

NotestoUnauditedConsolidatedFinancialStatements F-62

TableofContents

REPORTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

TotheBoardofDirectorsandShareholdersofAcushnetHoldingsCorp.:

Inouropinion,theaccompanyingconsolidatedbalancesheetsandtherelatedconsolidatedstatementsofoperations,comprehensiveincome(loss),cashflowsandredeemableconvertiblepreferredstockandequitypresentfairly,inallmaterialrespects,thefinancialpositionofAcushnetHoldingsCorp.anditssubsidiariesatDecember31,2015andDecember31,2014,andtheresultsoftheiroperationsandtheircashflowsforeachofthethreeyearsintheperiodendedDecember31,2015inconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.ThesefinancialstatementsaretheresponsibilityoftheCompany'smanagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudits.WeconductedourauditsofthesestatementsinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements,assessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,andevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditsprovideareasonablebasisforouropinion.

/s/PricewaterhouseCoopersLLP

Boston,MassachusettsJune17,2016,exceptfortheeffectsofthestocksplitasdiscussedinNote23totheconsolidatedfinancialstatements,astowhichthedateisOctober14,2016

TableofContents

ACUSHNETHOLDINGSCORP.

CONSOLIDATEDBALANCESHEETS

Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.

December31, (inthousands,exceptshareandpershareamounts) 2014 2015 Assets Currentassets Cash($7,704and$10,029attributabletothevariableinterestentity("VIE")) $ 47,667 $ 54,409Restrictedcash 6,100 4,725Accountsreceivable,net 197,677 192,384Inventories($15,335and$15,755attributabletotheVIE) 291,141 326,359Otherassets($1,582and$15attributabletotheVIE) 94,206 93,646Totalcurrentassets 636,791 671,523

Property,plantandequipment,net($11,788and$11,147attributabletotheVIE) 266,592 254,894Goodwill($32,312and$32,312attributabletotheVIE) 187,580 181,179Identifiableintangibleassets,net 509,412 499,494Deferredincometaxes 131,112 132,265Otherassets($2,867and$2,738attributabletotheVIE) 31,216 19,618

Totalassets $1,762,703 $1,758,973LiabilitiesandEquity Currentliabilities Short-termdebt $ 81,162 $ 441,704Accountspayable($9,273and$10,250attributabletotheVIE) 94,028 89,869Payablestorelatedparties 13,566 12,570Accruedtaxes 31,435 29,432Accruedcompensationandbenefits($822and$1,035attributabletotheVIE) 78,245 111,390Accruedexpensesandotherliabilities($4,480and$4,516attributabletotheVIE) 48,417 70,626Totalcurrentliabilities 346,853 755,591

Long-termdebtandcapitalleaseobligations 824,179 394,511Deferredincometaxes 6,761 7,112Accruedpensionandotherpostretirementbenefits($2,312and$2,303attributabletotheVIE) 132,879 119,549Accruedequityappreciationrights 122,013 145,384Othernoncurrentliabilities($2,777and$2,841attributabletotheVIE) 10,062 12,284

Totalliabilities 1,442,747 1,434,431Commitmentsandcontingencies(Note22) SeriesAredeemableconvertiblepreferredstock,$.001parvalue,1,838,027sharesauthorizedatDecember31,2014and2015,respectively;1,838,027sharesissuedandoutstandingatDecember31,2014and2015,respectively;liquidationpreferenceof$197,714,421atDecember31,2015 131,036 131,036

Equity Commonstock,$.001parvalue,78,193,494sharesauthorizedatDecember31,2014and2015;18,551,790and21,821,256sharesissuedandoutstandingatDecember31,2014and2015,respectively 18 22

Additionalpaid-incapital 264,561 309,110Accumulatedothercomprehensiveloss,netoftax (41,058) (67,234)Retaineddeficit (66,934) (81,647)TotalequityattributabletoAcushnetHoldingsCorp. 156,587 160,251

Noncontrollinginterests 32,333 33,255Totalequity 188,920 193,506Totalliabilitiesandequity $1,762,703 $1,758,973

TableofContents

CONSOLIDATEDSTATEMENTSOFOPERATIONS

YearendedDecember31, (inthousands,exceptshareandpershareamounts) 2013 2014 2015 Netsales $ 1,477,219 $ 1,537,610 $ 1,502,958Costofgoodssold 744,090 779,678 727,120Grossprofit 733,129 757,932 775,838

Operatingexpenses: Selling,generalandadministrative 568,421 602,755 604,018Researchanddevelopment 42,152 44,243 45,977Intangibleamortization 6,704 6,687 6,617Restructuringcharges 955 — 1,643Incomefromoperations 114,897 104,247 117,583

Interestexpense,net 68,149 63,529 60,294Other(income)expense,net 5,285 (1,348) 25,139Incomebeforeincometaxes 41,463 42,066 32,150

Incometaxexpense 17,150 16,700 27,994Netincome 24,313 25,366 4,156

Less:Netincomeattributabletononcontrollinginterests (4,677) (3,809) (5,122)Netincome(loss)attributabletoAcushnetHoldingsCorp. 19,636 21,557 (966)

Dividendspaidtopreferredshareholders (8,045) (8,045) (8,045)Accruingofcumulativedividends (5,740) (5,740) (5,740)Allocationofundistributedearningstopreferredshareholders (3,225) (3,866) —Netincome(loss)attributabletocommonshareholders $ 2,626 $ 3,906 $ (14,751)Netincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.—basicanddiluted $ 0.19 $ 0.23 $ (0.74)

Weightedaveragenumberofcommonshares—basicanddiluted 13,471,308 16,716,825 19,939,293

ProformanetincomepercommonshareattributabletoAcushnetHoldingsCorp.(unaudited)—basicanddiluted $ 0.24

Proformaweightedaveragenumberofcommonshares(unaudited): Basic 69,106,356Diluted 69,107,445

TableofContents

CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVEINCOME(LOSS)

YearendedDecember31, (inthousands) 2013 2014 2015 Netincome $ 24,313 $ 25,366 $ 4,156Othercomprehensiveincome(loss) Foreigncurrencytranslationadjustments (14,886) (23,106) (19,042)Foreignexchangederivativeinstruments Unrealizedholdinggainsarisingduringperiod 13,439 20,619 14,964Reclassificationadjustmentsincludedinnetincome (10,671) (9,916) (26,805)Taxbenefit(expense) 653 (1,610) 3,836Foreignexchangederivativeinstruments,net 3,421 9,093 (8,005)

Available-for-salesecurities Unrealizedholdinggains(losses)arisingduringperiod 1,726 703 (673)Taxbenefit(expense) (653) (248) 160Available-for-salesecurities,net 1,073 455 (513)

Pensionandotherpostretirementbenefitsadjustments Netgain(loss)arisingduringperiod 40,113 (23,769) 3,068Taxbenefit(expense) (14,532) 7,583 (1,684)Pensionandotherpostretirementbenefitsadjustments,net 25,581 (16,186) 1,384Totalothercomprehensiveincome(loss) 15,189 (29,744) (26,176)

Comprehensiveincome(loss) 39,502 (4,378) (22,020)Less:Comprehensiveincomeattributabletononcontrollinginterests (4,693) (3,774) (5,017)

Comprehensiveincome(loss)attributabletoAcushnetHoldingsCorp. $ 34,809 $ (8,152) $ (27,037)

TableofContents

CONSOLIDATEDSTATEMENTSOFCASHFLOWS

YearendedDecember31, (inthousands) 2013 2014 2015 Cashflowsfromoperatingactivities Netincome $ 24,313 $ 25,366 $ 4,156Adjustmentstoreconcilenetincometocashprovidedbyoperatingactivities Depreciationandamortization 39,423 43,159 41,702Unrealizedforeignexchange(gain)loss (1,306) 133 2,933Amortizationofdebtissuancecosts 5,613 3,752 5,157Amortizationofdiscountonbondspayable 3,773 4,093 4,142Changeinfairvalueofcommonstockwarrants (976) (1,887) 28,364Share-basedcompensation 1,138 632 2,033Lossondisposalsofproperty,plantandequipment 353 690 401Deferredincometaxes (15,861) (11,293) 2,188Changesinoperatingassetsandliabilities Accountsreceivable (15,514) (35,594) (174)Inventories (16,320) (16,192) (45,415)Accountspayable 15,947 (2,585) (1,998)Accruedtaxes (11,527) (881) 540Accruedexpensesandotherliabilities (1,723) 3,442 35,364Otherassets 18,736 (11,376) 1,165Othernoncurrentliabilities 33,810 53,739 12,278Interestduetorelatedparties (1,084) (1,085) (1,006)Cashflowsprovidedbyoperatingactivities 78,795 54,113 91,830

Cashflowsfrominvestingactivities Additionstoproperty,plantandequipment (46,459) (23,527) (23,201)Changeinrestrictedcash 99 363 1,362

Cashflowsusedininvestingactivities (46,360) (23,164) (21,839)Cashflowsfromfinancingactivities Increaseinshort-termborrowings 18,284 8,177 7,890Proceedsfromseniortermloanfacility — 30,000 —Repaymentofsecuredfloatingratenotes (25,000) (50,000) (50,000)Proceedsfromexerciseofstockoptions 100 100 —Proceedsfromexerciseofcommonstockwarrants 34,504 34,503 34,503Repaymentofbonds (34,504) (34,503) (34,503)Debtissuancecosts (3,469) (1,045) —DividendspaidonSeriesAredeemableconvertiblepreferredstock (13,894) (13,786) (13,747)Dividendspaidtononcontrollinginterests (4,200) (3,600) (4,200)

Cashflowsusedinfinancingactivities (28,179) (30,154) (60,057)Effectofforeignexchangeratechangesoncash (606) (2,385) (3,192)

Netincrease(decrease)incash 3,650 (1,590) 6,742Cash,beginningofyear 45,607 49,257 47,667Cash,endofyear $ 49,257 $ 47,667 $ 54,409Supplementalinformation Cashpaidforinteresttorelatedparties $ 37,538 $ 34,951 $ 32,274Cashpaidforinteresttothirdparties 22,803 21,656 20,571Cashpaidforincometaxes 35,483 27,987 19,724Non-cashadditionstoproperty,plantandequipment 2,686 2,577 1,913Non-cashconversionofcommonstockwarrants — — 7,298Non-cashexerciseofstockoptions 1,795 793 2,752

TableofContents

CONSOLIDATEDSTATEMENTSOFREDEEMABLECONVERTIBLEPREFERREDSTOCKANDEQUITY

TotalStockholders'

EquityAttributabletoAcushnet

HoldingsCorp.

RedeemableConvertible

PreferredStock

CommonStock

AccumulatedOther

ComprehensiveLoss

AdditionalPaid-inCapital

RetainedDeficit

NoncontrollingInterest

TotalEquity

(inthousands) Shares Amount Shares Amount BalancesatDecember31,2012 1,838 $ 131,036 12,116 $ 12 $ 192,772 $ (26,503)$ (80,447)$ 85,834 $ 31,647 $ 117,481

Netincome — — — — — — 19,636 19,636 4,677 24,313Othercomprehensiveincome — — — — — 15,189 — 15,189 — 15,189

Issuanceofcommonstock — — 3,105 3 34,501 — — 34,504 — 34,504

Exerciseofstockoptions — — 139 — 1,895 — — 1,895 — 1,895

DividendspaidonSeriesAredeemableconvertiblepreferredstock — — — — — — (13,894) (13,894) — (13,894)

Dividendspaidtononcontrollinginterests — — — — — — — — (4,200) (4,200)

BalancesatDecember31,2013 1,838 131,036 15,360 15 229,168 (11,314) (74,705) 143,164 32,124 175,288

Netincome — — — — — — 21,557 21,557 3,809 25,366Othercomprehensiveloss — — — — — (29,744) — (29,744) — (29,744)

Exerciseofstockoptions — — 87 — 893 — — 893 — 893

BalancesatDecember31,2014 1,838 131,036 18,552 18 264,561 (41,058) (66,934) 156,587 32,333 188,920

Netincome(loss) — — — — — — (966) (966) 5,122 4,156

Othercomprehensiveloss — — — — — (26,176) — (26,176) — (26,176)

Exerciseofstockoptions — — 164 1 2,751 — — 2,752 — 2,752

Dividendspaidtononcontrolling

interests — — — — — — — — (4,200) (4,200)BalancesatDecember31,2015 1,838 $ 131,036 21,821 $ 22 $ 309,110 $ (67,234)$ (81,647)$ 160,251 $ 33,255 $ 193,506

TableofContents

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS

1.DescriptionofBusiness

AlexandriaHoldingsCorp.wasincorporatedonMay9,2011.EffectiveMarch31,2016,AlexandriaHoldingsCorp.'snamewaschangedtoAcushnetHoldingsCorp.(AcushnetortheCompany).OnJuly29,2011,theCompanyissued9,000,000sharesofcommonstocktoFilaKoreaLtd.andissuedanaggregate1,790,000sharesofSeriesAredeemableconvertiblepreferredstocktoOdin3,LLC;WBAtlas,LLC;andNeopluxNo.1PrivateEquity.Inaddition,theCompanyissuedconvertiblenotes(aggregateprincipalamountof$353.0million)andbonds(aggregateprincipalamountof$168.0million)withwarrantstopurchaseitscommonstocktoOdin3,LLC;WBAtlas,LLC;andNeopluxNo.1PrivateEquity.OnJanuary20,2012,theCompanyissued48,027sharesofSeriesAredeemableconvertiblepreferredstocktoOdin4,LLC.Inaddition,theCompanyissuedconvertiblenotes(principalamountof$9.5million)andbonds(principalamountof$4.5million)withwarrantstopurchaseitscommonstocktoOdin4,LLC.

OnDecember24,2015,FilaKoreaLtd.,theownerof21,421,152sharesofcommonstockoftheCompany,transferreditssharestoMagnusHoldingsCo.,Ltd.,awhollyownedsubsidiaryofFilaKoreaLtd.

Acushnet,headquarteredinFairhaven,Massachusetts,isthegloballeaderinthedesign,development,manufactureanddistributionofperformance-drivengolfproducts.TheCompanyhasestablishedpositionsacrossallmajorgolfequipmentandgolfwearcategoriesunderitsrecognizedbrandsofTitleist,FootJoy,VokeyDesignwedgesandScottyCameronputters.Acushnetproductsaresoldprimarilytoon-coursegolfproshopsandselectedoff-coursegolfspecialtystores,sportinggoodsstoresandotherqualifiedretailers.AcushnetsellsproductsprimarilyintheUnitedStates,Europe(primarilytheUnitedKingdom,Germany,FranceandSweden),Asia(primarilyJapan,Korea,ChinaandSingapore),CanadaandAustralia.AcushnetmanufacturesandsourcesitsproductsprincipallyintheUnitedStates,China,Thailand,theUnitedKingdom,JapanandAustralia.

2.SummaryofSignificantAccountingPolicies

BasisofPresentation

TheaccompanyingconsolidatedfinancialstatementshavebeenpreparedinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStates(U.S.GAAP)andincludetheaccountsoftheCompany,itswhollyownedsubsidiariesandaVIEinwhichtheCompanyistheprimarybeneficiary.Allsignificantintercompanybalancesandtransactionshavebeeneliminatedinconsolidation.

UseofEstimates

ThepreparationoftheCompany'sconsolidatedfinancialstatementsinaccordancewithU.S.GAAPrequiresmanagementtomakeestimatesandjudgmentsthataffectreportedamountsofassets,liabilities,stockholders'equity,netsalesandexpenses,andthedisclosureofcontingentassetsandliabilitiesinitsconsolidatedfinancialstatements.Significantestimatesrelieduponinpreparingtheseconsolidatedfinancialstatementsinclude,butarenotlimitedto,revenuerecognition,includingallowanceforsalesreturnsandsales-basedincentiveprograms,allowancefordoubtfulaccounts,inventoryreserves,impairmentofgoodwill,indefinite-livedintangibleassetsandlong-livedassets,pensionandotherpostretirementbenefitplans,productwarranty,valuationallowancesfordeferredtaxassetsanduncertaintaxpositions,valuationofcommonstockwarrantsandshare-basedcompensation.Actualresultscoulddifferfromthoseestimates.

TableofContents

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

2.SummaryofSignificantAccountingPolicies(Continued)

VariableInterestEntities

VIEsareentitiesthat,bydesign,either(i)lacksufficientequitytopermittheentitytofinanceitsactivitiesindependently,or(ii)haveequityholdersthatdonothavethepowertodirecttheactivitiesoftheentitythatmostsignificantlyimpactitseconomicperformance,theobligationtoabsorbtheentity'sexpectedlosses,ortherighttoreceivetheentity'sexpectedresidualreturns.TheCompanyconsolidatesaVIEwhenitistheprimarybeneficiary,whichisthepartythathasboth(i)thepowertodirecttheactivitiesthatmostsignificantlyimpacttheVIE'seconomicperformanceand(ii)throughitsinterestsintheVIE,theobligationtoabsorbexpectedlossesortherighttoreceiveexpectedbenefitsfromtheVIEthatcouldpotentiallybesignificanttotheVIE.

TheCompanyconsolidatestheaccountsofAcushnetLionscoreLimited,aVIEwhichis40%ownedbytheCompany.ThesolepurposeoftheVIEistomanufacturetheCompany'sgolfshoesandassuch,theCompanyisdeemedtobetheprimarybeneficiaryasdefinedbyAccountingStandardsCodification("ASC")810.TheCompanyhaspresentedseparatelyonitsconsolidatedbalancesheets,totheextentmaterial,theassetsofitsconsolidatedVIEthatcanonlybeusedtosettlespecificobligationsofitsconsolidatedVIEandtheliabilitiesofitsconsolidatedVIEforwhichcreditorsdonothaverecoursetoitsgeneralcredit.ThegeneralcreditorsoftheVIEdonothaverecoursetotheCompany.CertaindirectorsofthenoncontrollingentitieshaveguaranteedthecreditlinesoftheVIE,forwhichtherewerenooutstandingborrowingsasofDecember31,2014and2015.Inaddition,pursuanttothetermsoftheagreementgoverningtheVIE,theCompanyisnotrequiredtoprovidefinancialsupporttotheVIE.

CashandRestrictedCash

CashheldinCompanycheckingaccountsisincludedincash.Bookoverdraftsnotsubjecttooffsetwithotheraccountswiththesamefinancialinstitutionareclassifiedasaccountspayable.AsofDecember31,2014and2015,bookoverdraftsintheamountof$11.5millionand$1.7million,respectively,wererecordedinaccountspayable.TheCompanyclassifiesasrestrictedcertaincashthatisnotavailableforuseinitsoperations.Restrictedcashisprimarilyrelatedtoastandbyletterofcreditusedforinsurancepurposes.

AccountsReceivable

Accountsreceivablearepresentednetofanallowancefordoubtfulaccounts.TheallowancefordoubtfulaccountsisassessedeachreportingperiodbytheCompanyforestimatedlossesresultingfromtheinabilityorunwillingnessofitscustomerstomakerequiredpayments.Theallowanceisbasedonvariousfactors,includingcreditriskassessments,lengthoftimethereceivablesarepastdue,historicalexperience,customerspecificinformationavailabletotheCompanyandexistingeconomicconditions.

AllowanceforSalesReturns

Asalesreturnsallowanceisrecordedforanticipatedreturnsthroughareductionofsalesandcostofgoodssoldintheperiodthattherelatedsalesarerecorded.Salesreturnsareestimatedbaseduponhistoricalratesofproductreturns,currenteconomictrendsandchangesincustomerdemandsaswellasspecificidentificationofoutstandingreturns.Inaccordancewiththispolicy,theallowanceforsalesreturnswas$6.4millionand$5.2millionasofDecember31,2014and2015,respectively.

TableofContents

ConcentrationofCreditRiskandofSignificantCustomers

FinancialinstrumentsthatpotentiallyexposetheCompanytoconcentrationofcreditriskarecashandaccountsreceivable.SubstantiallyalloftheCompany'scashdepositsaremaintainedatlarge,creditworthyfinancialinstitutions.TheCompany'sdeposits,attimes,mayexceedfederallyinsuredlimits.TheCompanydoesnotbelievethatitissubjecttounusualcreditriskbeyondthenormalcreditriskassociatedwithcommercialbankingrelationships.Aspartofitsongoingprocedures,theCompanymonitorsitsconcentrationofdepositswithvariousfinancialinstitutionsinordertoavoidanyundueexposure.AsofDecember31,2014and2015,theCompanyhad$45.8millionand$54.1million,respectively,inbankslocatedoutsidetheUnitedStates.TheriskwithrespecttotheCompany'saccountsreceivableismanagedbytheCompanythroughitspolicyofmonitoringthecreditworthinessofitscustomerstowhichitgrantscredittermsinthenormalcourseofbusiness.

Inventories

Inventoriesarevaluedatthelowerofcostandnetrealizablevalue.Costisdeterminedusingthefirst-in,first-outinventorymethod.Theinventorybalance,whichincludesmaterial,laborandmanufacturingoverheadcosts,isrecordednetofanallowanceforobsoleteorslowmovinginventory.TheCompany'sallowanceforobsoleteorslowmovinginventorycontainsuncertainties.EstimatesrequiretheCompanytomakeassumptionsandtoapplyjudgmentregardinganumberoffactors,includingmarketconditions,sellingenvironment,historicalresultsandcurrentinventorytrends.

Property,PlantandEquipment

Property,plantandequipmentarerecordedatcostlessaccumulateddepreciationandamortization.Depreciationisprovidedonastraight-linebasisovertheestimatedusefullivesoftheassets.Gainsorlossesresultingfromdisposalsareincludedinincomefromoperations.Bettermentsandrenewals,whichimproveandextendthelifeofanasset,arecapitalized.Maintenanceandrepaircostsareexpensedasincurred.

Estimatedusefullivesofproperty,plantandequipmentassetcategorieswereasfollows:

Leaseholdandtenantimprovementsareamortizedovertheshorteroftheleasetermortheestimatedusefullivesoftheassets.

CertaincostsincurredinconnectionwiththedevelopmentoftheCompany'sinternal-usesoftwarearecapitalized.SoftwaredevelopmentcostsareprimarilyrelatedtotheCompany'senterpriseresourceplanningsystem.Costsincurredinthepreliminarystagesofdevelopmentareexpensedasincurred.Internalandexternalcostsincurredintheapplicationdevelopmentphase,ifdirectandincremental,arecapitalizeduntilthesoftwareissubstantiallycompleteandreadyforitsintendeduse.Capitalizationceasesuponcompletionofallsubstantialtestingperformedtoensuretheproductisreadyforitsintendeduse.Costssuchasmaintenanceandtrainingareexpensedasincurred.Thecapitalizedinternal-usesoftwarecostsareincludedinproperty,plantandequipmentandoncethesoftwareisplacedintoserviceareamortizedovertheestimatedusefullifewhichrangesfromthreetotenyears.

Buildingsandimprovements 15-40yearsMachineryandequipment 3-10yearsFurniture,computersandotherequipment 3-7years

TableofContents

Long-LivedAssets

Along-livedasset(includingamortizableidentifiableintangibleassets)orassetgroupistestedforrecoverabilitywhenevereventsorchangesincircumstancesindicatethatitscarryingamountmaynotberecoverable.Whensucheventsoccur,theCompanycomparesthesumoftheundiscountedcashflowsexpectedtoresultfromtheuseandeventualdispositionoftheassetorassetgrouptothecarryingamountofthelong-livedassetorassetgroup.Thecashflowsarebasedonthebestestimateoffuturecashflowsderivedfromthemostrecentbusinessprojections.Ifthecarryingvalueexceedsthesumoftheundiscountedcashflows,animpairmentlossisrecognizedbasedontheexcessoftheasset'sorassetgroup'scarryingvalueoveritsfairvalue.Fairvalueisdeterminedbasedondiscountedexpectedfuturecashflowsonamarketparticipantbasis.Anyimpairmentchargewouldberecognizedwithinoperatingexpensesasaselling,generalandadministrativeexpense.

GoodwillandIndefinite-LivedIntangibleAssets

Goodwillandindefinite-livedintangibleassetsarenotamortizedbutinsteadaremeasuredforimpairmentatleastannually,ormorefrequentlywheneventsorchangesincircumstancesindicatethatthecarryingamountoftheassetmaybeimpaired.

Goodwillisassignedtoreportingunitsforpurposesofimpairmenttesting.Areportingunitmaybethesameasanoperatingsegmentoronelevelbelowanoperatingsegment.Forpurposesofassessingpotentialimpairment,theCompanyperformsatwo-stepimpairmenttestongoodwill.Inthefirststep,theCompanycomparesthefairvalueofthereportingunittoitscarryingvalue.Ifthefairvalueofthereportingunitexceedsthecarryingvalueofthenetassetsassignedtothatunit,goodwillisconsiderednotimpairedandtheCompanyisnotrequiredtoperformfurthertesting.Ifthecarryingvalueofthenetassetsassignedtothereportingunitexceedsthefairvalueofthereportingunit,thentheCompanymustperformthesecondstepoftheimpairmenttestinordertodeterminetheimpliedfairvalueofthereportingunit'sgoodwill.Ifthecarryingvalueofareportingunit'sgoodwillexceedsitsimpliedfairvalue,thentheCompanywouldrecordanimpairmentlossequaltothedifference.Thefairvalueofthereportingunitsisdeterminedusingtheincomeapproach.Theincomeapproachusesadiscountedcashflowanalysiswhichinvolvesapplyingappropriatediscountratestoestimatedfuturecashflowsbasedonforecastsofsales,costsandcapitalrequirements.

Purchasedintangibleassetsotherthangoodwillareamortizedovertheirusefullivesunlessthoselivesaredeterminedtobeindefinite.TheCompany'strademarkshavebeenassignedanindefinitelifeastheCompanycurrentlyanticipatesthatthesetrademarkswillcontributetoitscashflowsindefinitely.Trademarksarereviewedforimpairmentannuallyandmaybereviewedmorefrequentlyifindicatorsofimpairmentarepresent.Impairmentlossesarerecordedtotheextentthatthecarryingvalueoftheindefinite-livedintangibleassetexceedsitsfairvalue.TheCompanymeasuresthefairvalueofitstrademarksusingtherelief-from-royaltymethod,whichestimatesthepresentvalueofroyaltyincomethatcouldbehypotheticallyearnedbylicensingthebrandnametoathirdpartyovertheremainingusefullife.

DeferredFinancingCosts

TheCompanydeferscostsdirectlyassociatedwithacquiringthird-partyfinancing.Thesedeferredcostsareamortizedasinterestexpenseoverthetermoftherelatedindebtedness.Deferredfinancingcostsassociatedwiththerevolvingcreditfacilitiesareincludedinothercurrentandnoncurrentassets

TableofContents

anddeferredfinancingcostsassociatedwithallotherindebtednessarenettedagainstdebtontheconsolidatedbalancesheets.

FairValueMeasurements

CertainassetsandliabilitiesarecarriedatfairvalueunderU.S.GAAP.Fairvalueisdefinedastheexchangepricethatwouldbereceivedforanassetorpaidtotransferaliability(anexitprice)intheprincipalormostadvantageousmarketfortheassetorliabilityinanorderlytransactionbetweenmarketparticipantsonthemeasurementdate.Valuationtechniquesusedtomeasurefairvaluemustmaximizetheuseofobservableinputsandminimizetheuseofunobservableinputs.Financialassetsandliabilitiescarriedatfairvaluearetobeclassifiedanddisclosedinoneofthefollowingthreelevelsofthefairvaluehierarchy,ofwhichthefirsttwoareconsideredobservableandthelastisconsideredunobservable:

• Level1—Quotedpricesinactivemarketsforidenticalassetsorliabilities.

• Level2—Observableinputs(otherthanLevel1quotedprices),suchasquotedpricesinactivemarketsforsimilarassetsorliabilities,quotedpricesinmarketsthatarenotactiveforidenticalorsimilarassetsorliabilities,orotherinputsthatareobservableorcanbecorroboratedbyobservablemarketdata.

• Level3—Unobservableinputsthataresupportedbylittleornomarketactivityandthataresignificanttodeterminingthefairvalueoftheassetsorliabilities,includingpricingmodels,discountedcashflowmethodologiesandsimilartechniques.

TheCompany'scommonstockwarrantsliabilityanditsforeignexchangederivativeassetsandliabilitiesarecarriedatfairvaluedeterminedaccordingtothefairvaluehierarchydescribedabove(Note11).Thecarryingvalueofaccountsreceivable,accountspayableandaccruedexpensesapproximatesfairvalueduetotheshort-termnatureoftheseassetsandliabilities.AspermittedunderASC820,theCompanyadoptedthefairvaluemeasurementdisclosuresfornonfinancialassetsandliabilities,suchasgoodwillandindefinite-livedintangibleassets.

Insomeinstanceswhereamarketpriceisavailable,buttheinstrumentisinaninactiveorover-the-countermarket,theCompanyconsistentlyappliesthedealer(marketmaker)pricingestimateandusesamidpointapproachonbidandaskpricesfromfinancialinstitutionstodeterminethereasonablenessoftheseestimates.AssetsandliabilitiessubjecttothisfairvaluevaluationapproacharetypicallyclassifiedasLevel2.

PensionandOtherPostretirementBenefitPlans

TheCompanyprovidesU.S.andforeigndefinedbenefitanddefinedcontributionplanstoeligibleemployeesandpostretirementbenefitstocertainretirees,includingpensions,postretirementhealthcarebenefitsandotherpostretirementbenefits.

Planassetsandobligationsaremeasuredusingvariousactuarialassumptions,suchasdiscountrates,rateofcompensationincrease,mortalityrates,turnoverratesandhealthcarecosttrendrates,asdeterminedateachyearendmeasurementdate.Themeasurementofnetperiodicbenefitcostisbasedonvariousactuarialassumptions,includingdiscountrates,expectedreturnonplanassetsandrateofcompensationincrease,whicharedeterminedasoftheprioryearmeasurementdate.Thedeterminationofthediscountrateisgenerallybasedonanindexcreatedfromahypotheticalbondportfolioconsistingofhigh-qualityfixedincomesecuritieswithdurationsthatmatchthetimingof

TableofContents

expectedbenefitpayments.Theexpectedreturnonplanassetsisdeterminedbasedonseveralfactors,includingadjustedhistoricalreturns,historicalriskpremiumsforvariousassetclassesandtargetassetallocationswithintheportfolio.Adjustmentsmadetothehistoricalreturnsarebasedonrecentreturnexperienceintheequityandfixedincomemarketsandthebeliefthatdeviationsfromhistoricalreturnsarelikelyovertherelevantinvestmenthorizon.Actualcostisalsodependentonvariousotherfactorsrelatedtotheemployeescoveredbytheseplans.Theeffectsofactuarialdeviationsfromassumptionsaregenerallyaccumulatedand,ifoveraspecifiedcorridor,amortizedovertheremainingserviceperiodoftheemployees.Thecostorbenefitofplanchanges,suchasincreasingordecreasingbenefitsforprioremployeeservice(priorservicecost),isdeferredandincludedinexpenseonastraight-linebasisovertheaverageremainingserviceperiodoftherelatedemployees.TheCompany'sactuarialassumptionsarereviewedonanannualbasisandmodifiedwhenappropriate.

IncomeTaxes

TheCompanyaccountsforincometaxesusingtheassetandliabilitymethod,whichrequirestherecognitionofdeferredtaxassetsandliabilitiesfortheexpectedfuturetaxconsequencesoftemporarydifferencesbetweenconsolidatedfinancialstatementcarryingamountandtaxbasisandusingenactedtaxratesexpectedtobeineffectwhenthetemporarydifferencesreverse.Avaluationallowanceisrecordedtoreducedeferredincometaxassetswhenitismore-likely-than-notthatsuchassetswillnotberealized.Potentialforrecoveryofdeferredtaxassetsisevaluatedbyestimatingthefuturetaxableprofitsexpectedandconsideringprudentandfeasibletaxplanningstrategies.

TheCompanyprovidesdeferredincometaxesonundistributedearningsofforeignsubsidiariesthatitdoesnotexpecttopermanentlyreinvest.

TheCompanyrecordsliabilitiesforuncertainincometaxpositionsbasedonthetwostepprocess.Thefirststepisrecognition,whereanindividualtaxpositionisevaluatedastowhetherithasalikelihoodofgreaterthan50%ofbeingsustaineduponexaminationbasedonthetechnicalmeritsoftheposition,includingresolutionofanyrelatedappealsorlitigationprocesses.Fortaxpositionsthatarecurrentlyestimatedtohavealessthan50%likelihoodofbeingsustained,notaxbenefitisrecorded.Fortaxpositionsthathavemettherecognitionthresholdinthefirststep,theCompanyperformsthesecondstepofmeasuringthebenefittoberecorded.Theamountofthebenefitthatmayberecognizedisthelargestamountthathasagreaterthan50%likelihoodofbeingrealizedonultimatesettlement.Theactualbenefitsultimatelyrealizedmaydifferfromtheestimates.Infutureperiods,changesinfacts,circumstances,andnewinformationmayrequiretheCompanytochangetherecognitionandmeasurementestimateswithregardtoindividualtaxpositions.Changesinrecognitionandmeasurementestimatesarerecordedinincometaxexpenseandliabilityintheperiodinwhichsuchchangesoccur.

BeamSuntory,Inc.(formerlyknownasFortuneBrands,Inc.)(Beam)hasindemnifiedcertaintaxobligationsthatrelatetoperiodsduringwhichFortuneBrands,Inc.ownedAcushnetCompany(Note13).Thesetaxobligationsarerecordedinaccruedtaxesandothernoncurrentliabilities,andtherelatedindemnificationreceivableisrecordedinothercurrentandnoncurrentassetsontheconsolidatedbalancesheet.Anychangesinthevalueofthesespecificallyidentifiedtaxobligationsarerecordedinincometaxexpenseandtherelatedchangeintheindemnificationassetisrecordedinother(income)expense,netontheconsolidatedstatementofoperations.

TableofContents

RevenueRecognition

Revenueisrecognizeduponshipmentoruponreceiptbythecustomerdependingonthecountryofthesaleandtheagreementwiththecustomer,netofanallowancefordiscounts,salesreturns,customersalesincentivesandcooperativeadvertising.Thecriteriaforrecognitionofrevenueismetwhenpersuasiveevidencethatanarrangementexists,bothtitleandriskoflosshavepassedtothecustomer,thepriceisfixedordeterminableandcollectabilityisreasonablyassured.Incircumstanceswhereeithertitleorriskoflosspassuponreceiptbythecustomer,revenueisdeferreduntilsucheventoccursbasedonanestimateoftheshippingtimefromtheCompany'sdistributioncenterstothecustomerusinghistoricalandexpecteddeliverytimesbygeographiclocation.Amountsbilledtocustomersforshippingandhandlingareincludedinnetsales.

CustomerSalesIncentives

TheCompanyofferscustomersalesincentives,includingoff-invoicediscountsandsales-basedrebateprograms,toitscustomerswhichareaccountedforasareductioninsalesatthetimetherevenueisrecognized.Sales-basedrebatesareestimatedusingassumptionsrelatedtothepercentageofcustomerswhowillachievequalifyingpurchasegoalsandthelevelofachievement.Theseassumptionsarebasedonhistoricalexperience,currentyearprogramdesign,currentmarketplaceconditionsandsalesforecasts,includingconsiderationsofproductlifecycles.

CostofGoodsSold

Costofgoodssoldincludesallcoststomakeproductssaleable,suchasinboundfreight,purchasingandreceivingcosts,inspectioncostsandtransfercosts.Inaddition,alldepreciationexpenseassociatedwithassetsusedtomanufactureproductsandmakethemsaleableisincludedincostofgoodssold.

ProductWarranty

TheCompanyhasdefinedwarrantiesrangingfromonetotwoyears.ProductscoveredbythedefinedwarrantypoliciesincludeallTitleistgolfproducts,FootJoygolfshoes,andFootJoygolfouterwear.TheseproductwarrantiesgenerallyobligatetheCompanytopayforthecostofreplacementproducts,includingthecostofshippingreplacementproductstoitscustomers.Theestimatedcostofsatisfyingfuturewarrantyclaimsisaccruedatthetimethesaleisrecorded.Inestimatingfuturewarrantyobligations,theCompanyconsidersvariousfactors,includingitswarrantypoliciesandpractices,thehistoricalfrequencyofclaims,andthecosttoreplaceorrepairproductsunderwarranty.

AdvertisingandPromotion

Advertisingandpromotionalcostsareincludedinselling,generalandadministrativeexpenseontheconsolidatedstatementofoperationsandincludeproductendorsementarrangementswithmembersofthevariousprofessionalgolftours,mediaplacementandproductioncosts(television,printandinternet),toursupportexpensesandpoint-of-salematerials.Advertisingproductioncostsareexpensedasincurred.Mediaplacementcostsareexpensedinthemonththeadvertisingappears.Productendorsementarrangementsareexpensedbaseduponthespecificprovisionsofplayercontracts.Advertisingandpromotionalexpensewas$203.7million,$201.6millionand$203.3millionfortheyearsendedDecember31,2013,2014and2015,respectively.

TableofContents

Selling

Sellingexpensesincludingfieldsales,salesadministrationandshippingandhandlingcostsareincludedinselling,generalandadministrativeexpenseontheconsolidatedstatementofoperations.Shippingandhandlingcostsincludedinsellingexpenseswere$28.1million,$30.5millionand$32.6millionfortheyearsendedDecember31,2013,2014and2015,respectively.

ResearchandDevelopment

Researchanddevelopmentexpensesincludeproductdevelopment,productimprovement,productengineering,andprocessimprovementcostsandareexpensedasincurred.

ForeignCurrencyTranslationandTransactions

AssetsandliabilitiesdenominatedinforeigncurrencyaretranslatedintoU.S.dollarsattheactualratesofexchangeatthebalancesheetdate.Revenuesandexpensesaretranslatedattheaverageratesofexchangeforthereportingperiod.Therelatedtranslationadjustmentsarerecordedasacomponentofaccumulatedothercomprehensiveincome(loss).Transactionsdenominatedinacurrencyotherthanthefunctionalcurrencyaretranslatedintofunctionalcurrencywithresultingtransactiongainsorlossesrecordedasselling,generalandadministrativeexpenseontheconsolidatedstatementofoperations.

DerivativeFinancialInstruments

Allderivativesarerecognizedaseitherassetsorliabilitiesontheconsolidatedbalancesheetandmeasurementoftheseinstrumentsisatfairvalue.Ifthederivativeisdesignatedasafairvaluehedge,thechangesinthefairvalueofthederivativeandofthehedgeditemattributabletothehedgedriskarerecognizedinearningsinthesameperiod.Ifthederivativeisdesignatedasacashflowhedge,theeffectiveportionsofchangesinthefairvalueofthederivativearerecordedasacomponentofaccumulatedothercomprehensiveincome(loss)andarerecognizedintheconsolidatedstatementofoperationswhenthehedgeditemaffectsearnings.Anyportionofthechangeinfairvaluethatisdeterminedtobeineffectiveisimmediatelyrecognizedinearningsascostofgoodssold.Derivativegainsorlossesincludedinaccumulatedothercomprehensiveincome(loss)arereclassifiedintoearningsatthetimethehedgedtransactionoccurs.

ValuationofCommonStockWarrants

TheCompanyclassifieswarrantstopurchasecommonstockasaliabilityonitsconsolidatedbalancesheetasthewarrantsarefree-standingfinancialinstrumentsthatmayresultintheissuanceofavariablenumberoftheCompany'scommonshares.Thewarrantswereinitiallyrecordedatfairvalueonthedateofgrant,andaresubsequentlyre-measuredtofairvalueateachreportingdate.Thechangeinthefairvalueofthecommonstockwarrantsisrecognizedasacomponentofother(income)expense,netontheconsolidatedstatementofoperations.TheCompanywillcontinuetoadjusttheliabilityuntiltheearlierofexerciseofthewarrantsorexpirationofthewarrantsoccurs.

TheCompanyperformsatwo-stepprocesstodeterminethefairvalueofthewarrantstopurchasecommonstock.ThefirststepistoestimatetheaggregatefairvalueoftheCompany(BusinessEnterpriseValue,orBEV),whichisthenallocatedtoeachelementoftheCompany'scapitalstructureunderthecontingentclaimsmethodology.IndeterminingthefairvalueofitsBEV,theCompanyusesacombinationoftheincomeapproachandthemarketapproachtoestimateitsaggregateBEVateachreportingdate.Theincomeapproachusesadiscountedcashflowanalysis,whichinvolvesapplyingappropriatediscount

TableofContents

ratestoestimatedfuturecashflowsbasedonforecastsofsales,costsandcapitalrequirements.Themarketapproachemploystheguidelinepubliccompanymethod,whichusesthefairvalueofapeergroupofpublicly-tradedcompanies.Inthesecondstep,theCompany'sestimatedaggregatefairvalueisallocatedtosharesofcommonstock,sharesofredeemableconvertiblepreferredstock,convertiblenotes,bonds,employeestockoptionsandwarrantstopurchasecommonstockusingthecontingentclaimsmethodology.Underthismodel,eachcomponentoftheCompany'scapitalstructureistreatedasacalloptionwithuniqueclaimontheCompany'sassetsasdeterminedbythecharacteristicsofeachsecurity'sclass.Theresultingoptionclaimsarethenvaluedusinganoptionpricingmodel.

TheCompanyhistoricallyhasbeenaprivatecompanyandlackscompany-specifichistoricalandimpliedvolatilityinformationofitsstock.Therefore,itestimatesitsexpectedstockvolatilitybasedonthehistoricalvolatilityofpublicly-tradedpeercompaniesforatermequaltotheremainingcontractualtermofthewarrants.Therisk-freeinterestrateisdeterminedbyreferencetotheU.S.Treasuryyieldcurvefortimeperiodsapproximatelyequaltotheremainingtimetopurchaseforeachofthetranchesofwarrants.

Share-basedCompensation

Share-basedawardsgrantedundertheCompany'sEquityAppreciationRights("EAR")planareaccountedforasliability-classifiedawardsbecauseitisacashsettledplan.TheCompanyelectedtheintrinsicvaluemethodtomeasureitsliability-classifiedawardsandamortizesshare-basedcompensationexpenseforthoseawardsexpectedtovestonastraight-linebasisovertherequisiteserviceperiod.TheCompanyre-measurestheintrinsicvalueoftheawardsattheendofeachreportingperiod.

ComprehensiveIncome(Loss)

Comprehensiveincome(loss)consistsofnetincomeandothercomprehensiveincome(loss).Othercomprehensiveincome(loss)consistsofforeigncurrencytranslationadjustments,unrealizedgainsandlossesfromderivativeinstrumentsdesignatedascashflowhedges,unrealizedgainsandlossesfromavailable-for-salesecuritiesandpensionandotherpostretirementadjustments.

NetIncome(Loss)PerCommonShare

TheCompanyappliesthetwo-classmethodtocalculateitsbasicanddilutednetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.,asitsredeemableconvertiblepreferredsharesareparticipatingsecurities.Thetwo-classmethodisanearningsallocationformulathattreatsaparticipatingsecurityashavingrightstoearningsthatotherwisewouldhavebeenavailabletocommonstockholders.Netincome(loss)percommonshareavailabletoAcushnetHoldingsCorp.isdeterminedbyallocatingundistributedearningsbetweenholdersofcommonsharesandredeemableconvertiblepreferredshares,basedontheparticipationrightsofthepreferredshares.Basicnetincome(loss)pershareattributabletoAcushnetHoldingsCorp.iscomputedbydividingthenetincome(loss)availabletoAcushnetHoldingsCorp.bytheweighted-averagenumberofcommonsharesoutstandingduringtheperiod.Dilutednetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.iscomputedbydividingthenetincome(loss)availabletoAcushnetHoldingsCorp.aftergivingeffecttothedilutedsecuritiesbytheweighted-averagenumberofdilutivesharesoutstandingduringtheperiod.

Dilutednetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.reflectsthepotentialdilutionthatwouldoccurifcommonstockwarrants,convertiblenotes,redeemableconvertiblepreferredstock,stockoptionsoranyotherdilutiveequityinstrumentswereexercisedorconvertedinto

TableofContents

commonshares.Thecommonstockwarrantsandstockoptionsareincludedaspotentialdilutivesecuritiestotheextenttheyaredilutiveunderthetreasurystockmethodfortheapplicableperiods.Theconvertiblenotesandredeemableconvertiblepreferredstockareincludedaspotentialdilutivesecuritiestotheextenttheyaredilutiveundertheif-convertedmethodfortheapplicableperiods.

UnauditedProFormaFinancialInformation

Intheaccompanyingconsolidatedstatementsofoperations,unauditedproformabasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.fortheyearendedDecember31,2015hasbeenpreparedtogiveeffect,priortoaqualifiedinitialpublicoffering,totheautomaticconversionofalltheoutstandingconvertiblenotesintosharesofcommonstockandtheautomaticconversionofalltheoutstandingsharesofSeriesAredeemableconvertiblepreferredstockintosharesofcommonstockasifthequalifiedinitialpublicofferinghadoccurredonthelaterofJanuary1,2015ortheissuancedate.

RecentlyAdoptedAccountingStandards

Income Taxes: Balance Sheet Classification of Deferred Taxes

InNovember2015,theFinancialAccountingStandardsBoard("FASB")issuedAccountingStandardsUpdate("ASU")2015-17,"Income Taxes: BalanceSheet Classification of Deferred Taxes "whichrequiresdeferredtaxliabilitiesandassetstobeclassifiedasnon-currentinaclassifiedstatementoffinancialposition.TheguidanceiseffectiveforfinancialstatementsissuedforannualperiodsbeginningafterDecember15,2016,includinginterimperiodswithinthosefiscalyears.Earlieradoptionispermittedforallentitiesasofthebeginningofaninterimorannualreportingperiod.Thisamendmentmaybeappliedeitherprospectivelyorretrospectivelytoallperiodspresented.TheCompanyadoptedtheprovisionsofthisstandardin2015andretrospectivelyadjustedthepriorperiods.Theretrospectiveadoptionofthisstandardresultedinthereclassificationof$38.1millionofdeferredincometaxes-currenttodeferredincometaxes-longtermasofDecember31,2014.

Inventory: Simplifying the Measurement of Inventory

InJuly2015,theFASBissuedASU2015-11,"Inventory: Simplifying the Measurement of Inventory ."ASU2015-11changesthemeasurementprincipleforinventoryfromthelowerofcostormarkettothelowerofcostandnetrealizablevalue.ASU2015-11definesnetrealizablevalueastheestimatedsellingpricesintheordinarycourseofbusiness,lessreasonablypredictablecostsofcompletion,disposalandtransportation.ASU2015-11iseffectiveforfiscalyearsbeginningafterDecember15,2016,includinginterimperiodswithinthosefiscalyears.Theamendmentsshouldbeappliedprospectivelywithearlierapplicationpermittedasofthebeginningofaninterimorannualreportingperiod.TheCompanyearlyadoptedtheprovisionsofthisstandardduringtheyearendedDecember31,2015.Theadoptionofthisstandarddidnothaveasignificantimpactontheconsolidatedfinancialstatements.

Interest—Imputation of Interest

InApril2015,theFASBissuedASU2015-03,"Interest—Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs ."ASU2015-03requiresthatdebtissuancecostsrelatedtoarecognizeddebtliabilitybepresentedinthebalancesheetasadirectdeductionfromthecarryingamountofthatdebtliability,consistentwithdebtdiscounts.InAugust2015,theFASBissuedASU2015-15,"Interest—Imputation of Interest ."ASU2015-15addsparagraphsaboutthepresentation

TableofContents

andsubsequentmeasurementofdebtissuancecostsassociatedwithline-of-creditarrangements.TherecognitionandmeasurementguidancefordebtissuancecostsarenotaffectedbytheamendmentsintheseASUs.ASU2015-03andASU2015-15areeffectiveforfinancialstatementsissuedforfiscalyearsbeginningafterDecember15,2015,includinginterimperiodswithinthosefiscalyears.Earlyadoptionoftheamendmentispermittedforfinancialstatementsthathavenotbeenpreviouslyissued.TheCompanyadoptedtheprovisionsofthisstandardin2015andretrospectivelyadjustedthepriorperiod.Theretrospectiveadoptionofthisstandardresultedinthereclassificationof$5.9millionofdebtissuancecostsfromothernoncurrentassets,ofwhich$0.6millionwasreclassifiedtoshort-termdebtand$5.3millionwasreclassifiedtolong-termdebtandcapitalleaseobligations.

RecentlyIssuedAccountingStandards

Revenue from Contracts with Customers

InMay2016,theFASBissuedASU2016-12,"Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients."ASU2016-12addressesnarrow-scopeimprovementstotheguidanceoncollectability,noncashconsiderationandcompletedcontractsattransitionandprovidesapracticalexpedientforcontractmodificationsandanaccountingpolicyelectionrelatedtothepresentationofsalestaxesandothersimilartaxescollectedfromcustomers.InMarch2016,theFASBissuedASU2016-08,"Revenue from Contracts with Customers: Principal versus Agent Considerations "clarifyingtheimplementationguidanceonprincipalversusagentconsiderations.InAugust2015,theFASBissuedASU2015-14,"Revenue from Contracts with Customers:Deferral of the Effective Date ."deferringtheadoptionofpreviouslyissuedguidancepublishedinMay2014,ASU2014-09,"Revenue from Contracts withCustomers." ASU2014-09amendsrevenuerecognitionguidanceandrequiresmoredetaileddisclosurestoenableusersoffinancialstatementstounderstandthenature,amount,timinganduncertaintyofrevenueandcashflowsarisingfromcontractswithcustomers.ASU2016-08and2015-14areeffectiveforreportingperiodsbeginningafterDecember15,2017,includinginterimperiodswithinthosefiscalyears.Thenewstandardpermitstheuseofeithertheretrospectiveormodifiedretrospectiveapproachonadoption.TheCompanyiscurrentlyevaluatingthisstandardtodeterminetheimpactofitsadoptionontheconsolidatedfinancialstatements.

Compensation—Stock Compensation

InMarch2016,theFASBissuedASU2016-09,"Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting" tosimplifyaccountingforemployeeshare-basedpaymenttransactions,includingtheincometaxconsequences,classificationofawardsaseitherequityorliabilitiesandclassificationonthestatementofcashflows.TheguidanceiseffectiveforfinancialstatementsissuedforannualperiodsbeginningafterDecember15,2016,includinginterimperiodswithinthosefiscalyears.TheCompanyiscurrentlyevaluatingthisstandardtodeterminetheimpactofitsadoptionontheconsolidatedfinancialstatements.

Leases

InFebruary2016,theFASBissuedASU2016-02,"Leases",whichwillrequirelesseestorecognizeright-of-useassetsandleaseliabilitiesforleaseswhichwereformerlyclassifiedasoperatingleases.TheguidanceiseffectiveforfinancialstatementsissuedforannualperiodsbeginningafterDecember15,2018,includinginterimperiodswithinthosefiscalyears.TheCompanyiscurrentlyevaluatingthisstandardtodeterminetheimpactofitsadoptionontheconsolidatedfinancialstatements.

TableofContents

Fair Value Measurement

InMay2015,theFASBissuedASU2015-07,"Fair Value Measurement: Disclosures for Investments in Certain Entities that Calculate Net Asset Value perShare (or Its Equivalent) ."UnderASU2015-07investmentsforwhichfairvalueismeasuredatnetassetvaluepershare(oritsequivalent)usingthepracticalexpedientshouldnotbecategorizedinthefairvaluehierarchy.ASU2015-07iseffectiveforfiscalyearsbeginningafterDecember15,2015,includinginterimperiodswithinthosefiscalyears.TheCompanyiscurrentlyevaluatingthisstandardtodeterminetheimpactofitsadoptionontheconsolidatedfinancialstatements.

Intangibles—Goodwill and Other—Internal-Use Software

InApril2015,theFASBissuedASU2015-05,"Intangibles—Goodwill and Other—Internal-Use Software: Customer's Accounting for Fees Paid in a CloudComputing Arrangement ."ASU2015-05providesguidancetocustomersaboutwhetheracloudcomputingarrangementincludesasoftwarelicense.Ifacloudcomputingarrangementincludesasoftwarelicense,thenthecustomershouldaccountforthesoftwarelicenseelementofthearrangementconsistentwiththeacquisitionofothersoftwarelicenses.Ifacloudcomputingarrangementdoesnotincludeasoftwarelicense,thecustomershouldaccountforthearrangementasaservicecontract.ASU2015-05willbeeffectiveforannualperiodsbeginningafterDecember15,2015,includinginterimperiodswithinthosefiscalyears.Theadoptionofthisstandardisnotexpectedtohaveasignificantimpactontheconsolidatedfinancialstatements.

Consolidation: Amendments to the Consolidation Analysis

InFebruary2015,theFASBissuedASU2015-02,"Consolidation: Amendments to Consolidation Analysis ."ASU2015-02placesmoreemphasisonriskoflosswhendeterminingcontrollinginterest,reducesthefrequencyoftheapplicationofrelated-partyguidancewhendeterminingcontrollingfinancialinterestinaVIEandchangesconsolidationconclusionsforcompaniesinseveralindustries.ASU2015-02iseffectiveforreportingperiodsbeginningafterDecember15,2015,withearlyadoptionpermitted.TheCompanyiscurrentlyevaluatingthisstandardtodeterminetheimpactofitsadoptionontheconsolidatedfinancialstatements.

Presentation of Financial Statements—Going Concern

InAugust2014,theFASBissuedASU2014-15,"Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity'sAbility to Continue as a Going Concern. "ASU2014-15requiresmanagementtoevaluatewhetherthereissubstantialdoubtaboutacompany'sabilitytocontinueasagoingconcernwithinoneyearfromthedatethefinancialstatementsareissuedandtoproviderelatedfootnotedisclosuresasappropriate.ASU2014-15iseffectiveforannualperiodsendingafterDecember15,2016,andinterimperiodswithinannualperiodsbeginningafterDecember15,2016.Earlyapplicationispermittedforannualorinterimreportingperiodsforwhichthefinancialstatementshavenotpreviouslybeenissued.Theadoptionofthisstandardisnotexpectedtohaveasignificantimpactontheconsolidatedfinancialstatements.

TableofContents

3.AllowanceforDoubtfulAccounts

Thechangetotheallowancefordoubtfulaccountswasasfollows:

4.Inventories

Thecomponentsofinventorieswereasfollows:

Thechangetotheinventoryreservewasasfollows:

5.Property,PlantandEquipment,Net

Thecomponentsofproperty,plantandequipment,netwereasfollows:

YearendedDecember31, (inthousands) 2013 2014 2015 Balanceatbeginningofyear $ 9,712 $ 8,876 $ 8,528Baddebtexpense 5,558 2,545 4,771Amountofreceivableswrittenoff (6,190) (2,485) (634)Foreigncurrencytranslation (204) (408) (302)Balanceatendofyear $ 8,876 $ 8,528 $ 12,363

December31, (inthousands) 2014 2015 Rawmaterialsandsupplies $ 54,591 $ 63,119Work-in-process 16,601 18,210Finishedgoods 219,949 245,030Inventories $ 291,141 $ 326,359

YearendedDecember31, (inthousands) 2013 2014 2015 Balanceatbeginningofyear $ (12,332) $ (9,038) $ (8,291)Chargedtocostsandexpenses (3,497) (6,718) (5,269)Deductionsfromreserves 6,665 7,121 2,753Foreigncurrencytranslation 126 344 387Balanceatendofyear $ (9,038) $ (8,291) $ (10,420)

December31, (inthousands) 2014 2015 Land $ 15,293 $ 14,804Buildingsandimprovements 131,215 131,231Machineryandequipment 133,060 140,042Furniture,computersandequipment 20,380 24,489Computersoftware 10,478 51,042Constructioninprogress 52,963 17,554Property,plantandequipment,gross 363,389 379,162

Accumulateddepreciation (96,797) (124,268)Property,plantandequipment,net $ 266,592 $ 254,894

TableofContents

5.Property,PlantandEquipment,Net(Continued)

DuringtheyearsendedDecember31,2013,2014and2015,softwaredevelopmentcostsof$12.8million,$9.4millionand$43.0millionwerecapitalized,consistingofsoftwareplacedintoserviceof$1.3million,$0.8millionand$40.6millionandamountsrecordedinconstructioninprogressof$11.5million,$8.6millionand$2.4million,respectively.Amortizationexpensewas$2.1million,$2.8millionand$5.5millionfortheyearsendedDecember31,2013,2014and2015,respectively.

TheCompanycapitalizesthecostofinterestforlong-termproperty,plantandequipmentprojectsbasedontheCompany'sweightedaverageborrowingratesinplacewhiletheprojectsareinprogress.Capitalizedinterestwas$0.5millionand$0.8millionfortheyearsendedDecember31,2013and2014,respectively.TheCompanydidnotcapitalizeinterestfortheyearendedDecember31,2015.

Totaldepreciationandamortizationexpenserelatedtoproperty,plantandequipmentwas$30.5million,$33.2millionand$32.5millionfortheyearsendedDecember31,2013,2014and2015,respectively.

6.GoodwillandIdentifiableIntangibleAssets,Net

Thechangeinthenetcarryingvalueofgoodwillwasasfollows:

GoodwillallocatedtotheCompany'sreportablesegmentsandchangesinthecarryingamountofgoodwillwereasfollows:

Thechangeinthenetcarryingvaluebyclassofidentifiableintangibleassetswasasfollows:

December31, (inthousands) 2014 2015 Balancesatbeginningofyear $ 194,063 $ 187,580Foreigncurrencytranslation (6,483) (6,401)Balancesatendofyear $ 187,580 $ 181,179

(inthousands) TitleistGolfBalls

TitleistGolfClubs

TitleistGolfGear

FootJoyGolfWear Other Total

BalancesatDecember31,2013 $ 113,647 $ 56,340 $ 13,656 $ 1,693 $ 8,727 $ 194,063Foreigncurrencytranslation (3,726) (2,021) (488) 67 (315) (6,483)BalancesatDecember31,2014 109,921 54,319 13,168 1,760 8,412 187,580Foreigncurrencytranslation (3,360) (2,566) (619) 543 (399) (6,401)BalancesatDecember31,2015 $ 106,561 $ 51,753 $ 12,549 $ 2,303 $ 8,013 $ 181,179

December31,2014 December31,2015

WeightedAverageUseful

Life(Years)

(inthousands) Gross AccumulatedAmortization

NetBookValue Gross

AccumulatedAmortization

NetBookValue

Indefinite-lived: Trademarks N/A $ 428,100 $ — $ 428,100 $ 428,100 $ — $ 428,100

Amortizing: CompletedTechnology 13 73,900 (18,895) 55,005 73,900 (24,426) 49,474CustomerRelationships 20 19,926 (3,404) 16,522 19,253 (4,252) 15,001LicensingFeesandOther 7 32,717 (22,932) 9,785 32,352 (25,433) 6,919

Totalintangibleassets $ 554,643 $ (45,231) $ 509,412 $ 553,605 $ (54,111) $ 499,494

TableofContents

6.GoodwillandIdentifiableIntangibleAssets,Net(Continued)

DuringtheyearsendedDecember31,2013and2015,noimpairmentchargeswererecordedtogoodwillorindefinite-livedintangibleassets.DuringtheyearendedDecember31,2014,theCompanyrecordedanimpairmentchargeof$0.8millionrelatedtoitsPinnacletrademarks.TheCompanydidnotrecordanimpairmentchargetogoodwillduringtheyearendedDecember31,2014.

Amortizationexpensewas$9.4million,$9.4millionand$9.3millionfortheyearsendedDecember31,2013,2014and2015,respectively,ofwhich$2.7millionassociatedwithcertainlicensingfeeswasincludedincostofgoodssoldineachyear.

AmortizationexpenserelatedtointangibleassetsasofDecember31,2015foreachofthenextfivefiscalyearsandbeyondisexpectedtobeasfollows:

7.ProductWarranty

Theactivityrelatedtothewarrantyobligationwasasfollows:

8.RelatedPartyTransactions

TheCompanyhashistoricallyincurredinterestexpensepayabletorelatedpartiesonitsoutstandingconvertiblenotesandbondswithcommonstockwarrants(Note9).Relatedpartyinterestexpensetotaled$40.3million,$38.0millionand$35.4millionfortheyearsendedDecember31,2013,2014and2015,respectively.

(inthousands) YearendingDecember31, 2016 $ 9,3212017 9,2202018 7,8572019 6,2482020 5,905Thereafter 32,843Total $ 71,394

YearendedDecember31, (inthousands) 2013 2014 2015 Balanceatbeginningofyear $ 2,953 $ 2,924 $ 2,989Provision 4,432 4,959 5,399Claimspaid/costsincurred (4,505) (4,700) (4,929)Foreigncurrencytranslation 44 (194) (114)Balanceatendofyear $ 2,924 $ 2,989 $ 3,345

TableofContents

9.DebtandFinancingArrangements

TheCompany'sdebtandcapitalleaseobligationswereasfollows:

Thesecuredfloatingratenotesarenetofdebtissuancecostsof$5.4millionand$2.2millionasofDecember31,2014and2015,respectively.Theseniortermloanfacilityisnetofdebtissuancecostsof$0.5millionand$0.2millionasofDecember31,2014and2015,respectively.

ConvertibleNotes

In2011and2012,theCompanyissuedconvertiblenoteswithanaggregateprincipalamountof$362.5milliontoshareholders.Theconvertiblenotesbearinterestatarateof7.5%perannum,whichispayableincashsemi-annuallyinarrearsonFebruary1andAugust1.ThenotesmatureupontheearlierofJuly29,2021ortheelectionoftheholderuponachangeincontrol,asdefinedinthesecuritiespurchaseagreementsgoverningthenotes.Amountsdueundertheconvertiblenotescanonlyberepaiduponmaturityoruponachangeincontrol.

OnMarch11,2013,theCompanyreceivedapprovalfromtheholdersoftheconvertiblenotestodeferanyinterestpaymentsdueafterAugust1,2013andpriortoFebruary1,2016pursuanttothecovenantsimposedbythesecuredfloatingratenotesandtheseniorrevolvingandtermloanfacilities.

ThenotesareconvertibleattheoptionoftheholderatanytimepriortomaturityintoanumberofsharesoftheCompany'scommonstockdeterminedbydividingtheaggregateoutstandingunpaidprincipalamountofthenotebytheconversionpriceof$11.11pershare.Theconversionpriceissubjecttoadjustmentifadditionalsharesofcommonstockaresoldsubsequenttotheissuanceoftheconvertiblenotesatapricepercommonsharethatislowerthan$11.11pershareoruponasubdivisionoftheoutstandingsharesoftheCompany'scommonstock.Transferofthenotestoanyparty,includinganaffiliateofthenoteholder,requirespriorwrittenconsentoftheothernoteholdersandFilaKoreaLtd.

TheCompanyrecordedinterestexpenserelatedtotheconvertiblenotesof$27.2millionduringeachoftheyearsendedDecember31,2013,2014and2015.

December31, (inthousands) 2014 2015 Securedfloatingratenotes $ 419,583 $ 372,804Convertiblenotes 362,490 362,490Bondswithcommonstockwarrants 60,901 30,540Seniortermloanfacility 29,490 29,836Revolvingcreditfacility 5,000 24,000Othershort-termborrowings 26,799 15,064Capitalleaseobligations 1,078 1,481Total 905,341 836,215Less:Short-termdebt 81,162 441,704Totallong-termdebtandcapitalleaseobligations $ 824,179 $ 394,511

TableofContents

9.DebtandFinancingArrangements(Continued)

BondswithCommonStockWarrants

In2011and2012,theCompanyissuedbondswithanaggregateprincipalamountof$172.5milliontoshareholders.Thebondsbearinterestatarateof7.5%perannum,whichispayableincashsemi-annuallyinarrearsonFebruary1andAugust1.ThebondsmatureupontheearlierofJuly29,2021ortheelectionoftheholderuponachangeofcontrol,asdefinedinthesecuritiespurchaseagreementgoverningthebonds.Amountsdueunderthebondscanonlyberepaiduponmaturity,achangeofcontrol,aholderelectingtoexercisecommonstockwarrantsbynetsettlingtheirbondsoranexerciseofcommonstockwarrantsbyFilaKoreaLtd.

Inconnectionwiththeissuanceofthesebonds,theCompanyissuedcommonstockwarrantsforthepurchaseof15,526,431sharesoftheCompany'scommonstock,atanexercisepriceof$11.11pershare.Theexercisepriceissubjecttoadjustmentifadditionalsharesofcommonstockaresoldsubsequenttotheissuanceofthebondsatapricepercommonsharethatislowerthan$11.11pershareoruponasubdivisionoftheoutstandingsharesoftheCompany'scommonstock.Thecommonstockwarrantexercisepricecanbesettledwithcashorthroughtenderofanaggregateoutstandingprincipalamountofthebondsandaccruedbutunpaidinterestequaltotheexercisepriceofthecommonstockwarrants.

Adiscountof$19.9millionrelatingtotheissuance-datefairvalueofthecommonstockwarrantswasrecordedontheissuancedateofthebondsandisbeingaccretedtointerestexpenseuntilthematuritydateofthebonds.Theunamortizeddiscountwas$8.1millionand$4.0millionasofDecember31,2014and2015,respectively.

OnMarch11,2013,theCompanyreceivedapprovalfromtheholdersofthebondstodeferanyinterestpaymentsdueafterAugust1,2013andpriortoFebruary1,2016pursuanttothecovenantsimposedbythesecuredfloatingratenotesandtheseniorrevolvingandtermloanfacilities.

ThecommonstockwarrantsaredetachableandtransferrablebytheholdersonlytoFilaKoreaLtd.oritsdesigneeatapriceequaltotheinterestaccruedontheunderlyingbondsattherateof4.0%perannumcalculatedonanannualcompoundedbasis.FilaKoreaLtd.hasacalloptiontopurchasealloftheoutstandingcommonstockwarrantsheldbyholdersofthebondsinannualinstallmentsof3,105,288commonstockwarrantsoverafive-yearperiodbeginningJuly29,2012.FilaKoreaLtd.mustexercisethecommonstockwarrantswithin10daysofexercisingthecalloption.TheexerciseofthecommonstockwarrantsbyFilaKoreaLtd.triggerstheCompanytoredeemaproratashareofthebondspayablebyusingtheproceedsreceivedfromtheexerciseofthecommonstockwarrantsbyFilaKoreaLtd.

InJuly2013,2014and2015,FilaKorea,Ltd.exerciseditsannualcalloptiontopurchase3,105,288commonstockwarrantsheldbytheholdersofthebondsandexercisedsuchwarrantsattheexercisepriceof$11.11pershare.ThisresultedinproceedstotheCompanyof$34.5millionduringeachoftheyearsendedDecember31,2013,2014and2015.TheCompanyusedtheseproceedstorepayoutstandingindebtednessunderthebondsof$34.5millionduringeachoftheyearsendedDecember31,2013,2014and2015.

TheCompanyrecordedinterestexpenserelatedtothebonds,includingtheamortizationofthediscount,of$13.1million,$10.8millionand$8.2millionduringtheyearsendedDecember31,2013,2014and2015,respectively.

TableofContents

SecuredFloatingRateNotes

InOctober2011,theCompanyenteredintoanagreementwithKoreaDevelopmentBanktoissuesecuredfloatingratenotesinanaggregateprincipalamountof$500.0million,whichmatureonJuly29,2016.Thenotesbearinterestatarateequaltothree-monthLIBORplusamarginof3.75%,whichisrequiredtobepaidquarterlyinarrearsonJanuary31,April30,July31andOctober31.ThenoteswereissuedinseparateclasseswithmaturitydatesrangingfromOctober2013toJuly2016.PursuanttoanamendedandrestatedpledgeandsecurityagreementdatedOctober31,2011,thesecuredfloatingratenotesaresecuredbycertainassets,includinginventory,accountsreceivable,fixedassetsandintangibleassetsoftheCompany,andasecondprioritysecurityinterestinthesharesofcertainFilaKoreaLtd.entities,trademarksandbankaccounts.

InOctober2013,theCompanyenteredintoanagreementwithKoreaDevelopmentBanktoissuesecuredfloatingratenotesinanaggregateprincipalamountof$125.0million,whichmatureonJuly29,2016.Proceedsfromtheissuanceofthenoteswereused,alongwithexistingcashonhand,torepay$150.0millionofthesecuredfloatingratenotesissuedinOctober2011.Thenotesbearinterestatarateequaltothree-monthLIBORplusamarginof3.75%,whichisrequiredtobepaidquarterlyinarrearsonJanuary31,April30,July31andOctober31.PursuanttoanamendedandrestatedpledgeandsecurityagreementdatedOctober31,2013,thesecuredfloatingratenotesaresecuredbycertainassets,includinginventory,accountsreceivable,fixedassetsandintangibleassetsoftheCompany,andasecondprioritysecurityinterestinthesharesofcertainFilaKoreaLtd.entities,trademarksandbankaccounts.

Thesecuredfloatingratenotesagreementscontaincustomarynegativecovenants,subjecttocertainexceptions,includinglimitationson:liens;financialindebtedness;mergers,acquisitionsandjointventures;assetsales,dividendsanddistributionsandrepurchaseoftheCompany'scapitalsecurities;transactionswithaffiliates;andchangesintheCompany'slinesofbusiness.Theagreementalsocontainsasubjectiveaccelerationclause.ThesecuredfloatingratenotesagreementsrequiretheCompanytocomplyonanannualbasiswithaconsolidatedleverageratio.Inaddition,thesecuredfloatingratenotesagreementscontaincertaincustomaryeventsofdefault.AsofDecember31,2015,theCompanywasincompliancewithallcovenants.

TheCompanyincurred$13.2millionofissuancecostsinconnectionwiththeoriginalissuanceof$500.0millionsecuredfloatingratenotes.Inaddition,theCompanyincurred$3.3millionofissuancecostsinconnectionwiththeissuanceof$125.0millionsecuredfloatingratenotesduringtheyearendedDecember31,2013.Ofthe$3.3million,$1.0millionwasimmediatelyrecordedasinterestexpenseand$2.3millionwascapitalizedasdebtissuancecosts.

Therewereoutstandingborrowingsunderthesecuredfloatingratenotesof$425.0millionand$375.0millionasofDecember31,2014and2015,respectively.AsofDecember31,2014and2015,theinterestrateapplicabletotheoutstandingborrowingsunderthesecuredfloatingratenoteswas3.98%and4.07%,respectively.TheCompanyrecordedinterestexpenserelatedtothesecuredfloatingratenotes,includingtheamortizationofdebtissuancecosts,of$25.1million,$22.4millionand$20.8millionduringtheyearsendedDecember31,2013,2014and2015,respectively.

SeniorRevolvingandTermLoanFacilities

InJuly2011,theCompanyenteredintoaseniorrevolvingfacilityagreementwithKoreaDevelopmentBank("SeniorFacilityAgreement"),whichprovidedforborrowingsunderarevolving

TableofContents

creditfacilityofupto$50.0milliontobeusedforgeneralcorporatepurposes("SeniorRevolvingFacility").TheapplicableinterestrateforborrowingsundertheSeniorRevolvingFacilityisLIBORplusamarginof3.25%.TheSeniorFacilityAgreementrequiresacommitmentfeeof0.3%basedontheaveragedailyunusedportionofthefacility.OnFebruary12,2014,theCompanyamendeditsSeniorFacilityAgreementandsimultaneouslyexecutedajoinderagreementwithWellsFargoN.A.toincreasetheborrowingcapacityundertheSeniorRevolvingFacilityto$75.0million.

OnDecember24,2014,theCompanyfurtheramendedtheSeniorFacilityAgreementtoincreasetheborrowingcapacityundertheSeniorRevolvingFacilityto$95.0million,whichmaturesonJuly29,2016.ThisamendmentalsoprovidedforborrowingsunderanewseniortermloanagreementwithKoreaDevelopmentBankof$30.0million("SeniorTermLoan"),whichmaturesonJuly29,2016.TheapplicableinterestrateforborrowingsundertheSeniorTermLoanisthree-monthLIBORplusamarginof2.63%,andisincreasedforanyrequiredwithholdingtaxes.TheSeniorFacilityAgreementrequiresacommitmentfeeof0.3%basedontheaveragedailyunusedportionofthetermloan.Uponentryintotheamendment,theCompanyimmediatelyborrowedtheentire$30.0millionundertheSeniorTermLoan.

CollateralizationofborrowingsundertheSeniorFacilityAgreementisgovernedbythetermsofanamendedandrestatedpledgeandsecurityagreement.Pursuanttotheagreement,borrowingsundertheSeniorFacilityAgreementaresecuredbycertainassets,includinginventory,accountsreceivable,fixedassetsandintangibleassetsoftheCompany,andbyasecondprioritysecurityinterestinthesharesofcertainFilaKoreaLtd.entities,trademarksandbankaccounts.

TheSeniorFacilityAgreementcontainscustomarynegativecovenants,subjecttocertainexceptions,includinglimitationson:liens;financialindebtedness;mergers,acquisitionsandjointventures;assetsales,dividendsanddistributionsandrepurchaseoftheCompany'scapitalsecurities;transactionswithaffiliates;andchangesintheCompany'slinesofbusiness.Theagreementalsocontainsasubjectiveaccelerationclause.TheSeniorFacilityAgreementrequirestheCompanytocomplyonanannualbasiswithaconsolidatedleverageratio,asdefinedintheagreement.Inaddition,theSeniorFacilityAgreementcontainscertaincustomaryeventsofdefault.AsofDecember31,2015,theCompanywasincompliancewithallcovenants.

TherewerenooutstandingborrowingsundertheSeniorRevolvingFacilityasofDecember31,2014and2015.TheCompanyrecordedinterestexpenserelatedtotheSeniorRevolvingFacility,includingunusedcommitmentfees,of$0.9million,$0.9millionand$0.8millionduringtheyearsendedDecember31,2013,2014and2015,respectively.

TherewereoutstandingborrowingsundertheSeniorTermLoanof$30.0millionasofDecember31,2014and2015.AsofDecember31,2014and2015,theinterestrateapplicabletotheoutstandingborrowingsundertheSeniorTermLoanfacilitywas3.24%and3.26%,respectively.TheCompanyrecordedinterestexpenserelatedtotheSeniorTermLoanof$1.3millionduringtheyearendedDecember31,2015.

RevolvingCreditFacility

InFebruary2012,theCompanyenteredintoarevolvingcreditfacilityagreementwithKoreaDevelopmentBank,which,asamended,providedforworkingcapitalborrowingcapacityinanamountupto$50.0million,subjecttocertainlimitations.AsofDecember31,2014and2015,$30.0millionhadbeenmadeavailabletotheCompany.TherevolvingcreditfacilitymaturedonFebruary6,2016.The

TableofContents

applicableinterestrateforborrowingsunderthefacilityisLIBORplusamarginof2.9%.Inaddition,acommitmentfeeof0.6%ontheaveragedailyunusedportionofthefacilityispayableinarrearsontheJanuary1,April1,July1andOctober1.

TherevolvingcreditfacilityissecuredbytheCompany'sintra-groupintellectualpropertylicenseagreementsandrelateddepositaccount.TherevolvingcreditfacilityagreementrequirestheCompanytocomplywithcertainfinancialcovenantsandcontainscustomarynegativecovenants,subjecttocertainexceptions,includinglimitationson:liens;financialindebtedness;mergers,acquisitionsandjointventures;assetsales,dividends,distributionsandrepurchaseoftheCompany'scapitalsecurities;transactionswithaffiliates;andchangesintheCompany'slinesofbusiness.Inaddition,therevolvingcreditfacilityagreementcontainscertaincustomaryeventsofdefault.AsofDecember31,2015,theCompanywasincompliancewithallcovenants.

Therewereoutstandingborrowingsundertherevolvingcreditfacilityof$5.0millionand$24.0millionasofDecember31,2014and2015,respectively.TheCompany'sadditionalborrowingcapacityundertherevolvingcreditfacilitywas$25.0millionand$6.0millionasofDecember31,2014and2015,respectively.AsofDecember31,2014and2015,theweightedaverageinterestrateapplicabletotheoutstandingborrowingsundertherevolvingcreditfacilitywas3.07%and3.27%,respectively.TheCompanyrecordedinterestexpenserelatedtotherevolvingcreditfacility,includingunusedcommitmentfees,of$0.5million,$0.9millionand$0.6millionduringtheyearsendedDecember31,2013,2014and2015,respectively.

WorkingCreditFacility(Canada)

InFebruary2013,theCompanyenteredintoaworkingcreditfacilityagreementarrangedbyWellsFargoN.A.,CanadianBranch,whichprovidesforborrowingsofuptothelesserof(a)C$25millionor(b)thesumof80%ofeligibleaccountsreceivableand60%ofeligibleinventory.Theworkingcreditfacility,asamended,maturedonFebruary1,2016.TheapplicableinterestrateforborrowingsunderthefacilityforCanadiandollarborrowingsisCDORplusamarginof2.0%orCanadianPrimeRateandforU.S.dollarborrowingsisLIBORplusamarginof2.0%orU.S.PrimeRate.Thefacilityrequiresacommitmentfeeequalto0.25%oftheuncancelledandunutilizedportionofthefacilityasoftheprecedingfiscalquarter.

Theworkingcreditfacilityissecuredbytheaccountsreceivable,inventoryandcashcollectionsofAcushnetCanada,awhollyownedsubsidiaryoftheCompany.TheworkingcreditfacilityagreementrequirestheCompanytocomplywithcertainfinancialcovenantsandcontainscustomarynegativecovenants,subjecttocertainexceptions,includinglimitationsandrestrictionsondispositions,liens,dividends,debt,mergers,transactionswithaffiliatesandchangesintheCompany'slinesofbusiness.Inaddition,theworkingcreditfacilityagreementcontainscertaincustomaryeventsofdefault.AsofDecember31,2015,theCompanywasincompliancewithallcovenants.

TherewerenooutstandingborrowingsasofDecember31,2014and2015.TheCompanyrecordedinterestexpenserelatedtotheworkingcreditfacility(Canada),includingunusedcommitmentfees,of$0.3millionforeachoftheyearsendedDecember31,2013,2014and2015,respectively.

WorkingCreditFacility(Europe)

InApril2012,theCompanyenteredintoaworkingcreditfacilityagreementarrangedbyWellsFargoCapitalFinance(UK)Limited,whichprovidesforborrowingsofuptothelesserof

TableofContents

(a)£30.0millionor(b)thesumof85%ofeligibleaccountsreceivableand65%ofeligibleinventory,ofwhich£5.0millioncanbeusedforlettersofcredit.TheworkingcreditfacilitymaturesonApril4,2017.TheapplicableinterestrateforborrowingsunderthefacilityisLIBORplusamarginof3.0%.Thefacilityincludesacommitmentfeeof0.375%ontheaveragedailyunusedportionofthefacility.Theworkingcreditfacilityissecuredbytheaccountsreceivable,inventoryandcashcollectionsofAcushnetEuropeLimited,awhollyownedsubsidiaryoftheCompany.

TheworkingcreditfacilityagreementrequirestheCompanytocomplywithcertainfinancialcovenantsandcontainscustomarynegativecovenants,subjecttocertainexceptions,includinglimitationson:liens;financialindebtedness;mergersandacquisitions;assetsales,dividendsanddistributions:transactionswithaffiliates;andchangesintheCompany'slinesofbusiness.Inaddition,theworkingcreditfacilityagreementcontainscertaincustomaryeventsofdefault.AsofDecember31,2015,theCompanywasincompliancewithallcovenants.

TherewerenooutstandingborrowingsasofDecember31,2014and2015.TheCompanyrecordedinterestexpenserelatedtotheworkingcreditfacility(Europe),includingunusedcommitmentfees,of$0.8million,$0.7millionand$0.6millionduringtheyearsendedDecember31,2013,2014and2015,respectively.

LettersofCredit

AsofDecember31,2014and2015,therewereoutstandinglettersofcredittotaling$14.1millionand$14.4million,respectively,ofwhich$5.1millionand$4.0millionwassecured,respectively,relatedtoagreementswhichprovidedamaximumcommitmentforlettersofcreditof$24.2million.

AvailableBorrowings

AsofDecember31,2015,theCompanyhadavailableborrowingsunderitsrevolvingcreditfacilities,includingtherevolvingcreditfacility,SeniorRevolvingFacilityandCanadianandEuropeanworkingcreditfacilities,of$207.5million.

PaymentsofDebtObligationsduebyPeriod

AsofDecember31,2015,principalpaymentsonoutstandinglong-termdebtobligationswereasfollows:

(inthousands) YearendingDecember31, 2016 $ 444,0642017 —2018 —2019 —2020 —Thereafter 393,030Total $ 837,094

TableofContents

10.DerivativeFinancialInstruments

CommonStockWarrants

OnJuly29,2011,theCompanyissuedbondsintheaggregateprincipalamountof$168.0millionandcommonstockwarrantstopurchaseanaggregateof15,120,000sharesoftheCompany'scommonstock(Note9).OnJanuary20,2012,theCompanyissued$4.5millionofadditionalbondsandcommonstockwarrantstopurchase406,431sharesoftheCompany'scommonstock(Note9).

InJuly2013,FilaKoreaLtd.exerciseditscalloptiontopurchasethesecondannualinstallmentof3,105,288commonstockwarrantsheldbytheholdersofthebonds.OnAugust7,2013,FilaKoreaLtd.convertedthewarrantsintocommonstockattheconversionpriceof$11.11pershare,or$34.5millionintheaggregate.TheCompanyusedtheproceedsreceivedfromFilaKoreaLtd.'sexerciseofcommonstockwarrantstoredeemaproratashareoftheoutstandingbondspayable.

InJuly2014,FilaKoreaLtd.exerciseditscalloptiontopurchasethethirdannualinstallmentof3,105,288commonstockwarrantsheldbytheholdersofthebonds.OnJuly29,2014,FilaKoreaLtd.convertedthewarrantsintocommonstockattheconversionpriceof$11.11pershare,or$34.5millionintheaggregate.TheCompanyusedtheproceedsreceivedfromFilaKoreaLtd.'sexerciseofcommonstockwarrantstoredeemaproratashareoftheoutstandingbondspayable.

InJuly2015,FilaKoreaLtd.exerciseditscalloptiontopurchasethefourthannualinstallmentof3,105,288commonstockwarrantsheldbytheholdersofthebonds.OnJuly28,2015,FilaKoreaLtd.convertedthewarrantsintocommonstockattheconversionpriceof$11.11pershare,or$34.5millionintheaggregate.TheCompanyusedtheproceedsreceivedfromFilaKoreaLtd.'sexerciseofcommonstockwarrantstoredeemaproratashareoftheoutstandingbondspayable.AsofDecember31,2015,3,105,279commonstockwarrantswithanexercisepriceof$11.11persharewereoutstandingandareexercisable.

Thecommonstockwarrantsarerecordedatfairvalue(Note11)andincludedinaccruedexpensesandotherliabilitiesontheconsolidatedbalancesheet.Changesinthefairvalueofthecommonstockwarrantsarerecognizedasother(income)expense,netontheconsolidatedstatementofoperations.

ForeignExchangeDerivativeInstruments

TheCompanyprincipallyusesfinancialinstrumentstoreducetheimpactofchangesinforeigncurrencyexchangerates.TheprincipalderivativefinancialinstrumentstheCompanyentersintoonaroutinebasisareforeignexchangeforwardcontracts.TheCompanydoesnotenterintoforeignexchangeforwardcontractsfortradingorspeculativepurposes.

Foreignexchangecontractsareprimarilyusedtohedgepurchasesdenominatedinselectforeigncurrencies,therebylimitingcurrencyriskthatwouldotherwiseresultfromchangesinexchangerates.Theperiodsoftheforeignexchangecontractscorrespondtotheperiodsoftheforecastedtransactions,whichdonotexceed24monthssubsequenttothelatestbalancesheetdate.Theeffectiveportionsofcashflowhedgesarereportedinaccumulatedothercomprehensiveincome(loss)andrecognizedintheconsolidatedstatementofoperationswhenthehedgeditemaffectsearnings.Changesinfairvalueofalleconomichedgetransactionsareimmediatelyrecognizedincurrentperiodearnings.TheprimaryforeigncurrencyhedgecontractspertaintotheU.S.dollar,theJapaneseyen,theBritishpoundsterling,theCanadiandollar,theKoreanwonandtheEuro.ThegrossU.S.dollarequivalentnotionalamountofallforeigncurrencyderivativehedgesoutstandingasofDecember31,2015was$378.8million.

TableofContents

10.DerivativeFinancialInstruments(Continued)

Thecounterpartiestoderivativecontractsaremajorfinancialinstitutions.TheCompanyassessescreditriskofthecounterpartiesonanongoingbasis.

Thefairvaluesofforeignexchangederivativeinstrumentsontheconsolidatedbalancesheetswereasfollows:

Theeffectofforeignexchangederivativeinstrumentsonaccumulatedothercomprehensiveincome(loss)andtheconsolidatedstatementsofoperationswasasfollows:

Basedonthecurrentvaluation,theCompanyexpectstoreclassifynetgainsof$12.3millionfromaccumulatedothercomprehensiveincome(loss)intocostofgoodssoldduringthenext12months.

December31, (inthousands) BalanceSheetLocation 2014 2015 Assetderivatives Othercurrentassets $ 22,057 $ 13,824

Othernoncurrentassets 3,389 790Liabilityderivatives Othercurrentliabilities 365 1,265

Othernoncurrentliabilities 14 331

Gain(Loss)RecognizedinOCI YearendedDecember31, (inthousands) 2013 2014 2015 Typeofhedge Cashflow $ 13,439 $ 20,619 $ 14,964

$ 13,439 $ 20,619 $ 14,964

Gain(Loss)RecognizedinStatementofOperations

YearendedDecember31, (inthousands) 2013 2014 2015 Locationofgain(loss)instatementofoperations Costofgoodssold $ 10,671 $ 9,916 $ 26,805Selling,generalandadministrativeexpense 3,713 3,271 3,841

$ 14,384 $ 13,187 $ 30,646

TableofContents

11.FairValueMeasurements

Assetsandliabilitiesmeasuredatfairvalueonarecurringbasiswereasfollows:

DuringtheyearsendedDecember31,2014and2015,therewerenotransfersbetweenLevel1,Level2andLevel3.

RabbitrustassetsareusedtofundcertainretirementobligationsoftheCompany.TheassetsunderlyingtheRabbitrustareequityandfixedincomeexchange-tradedfunds.

Deferredcompensationprogramassetsandliabilitiesrepresentaprogramwhereselectemployeescandefercompensationuntilterminationofemployment.EffectiveJuly29,2011,thisprogramwas

FairValueMeasurementsasof

December31,2014using: (inthousands) Level1 Level2 Level3 BalanceSheetLocationAssets Rabbitrust $ 2,812 $ — $ — OthercurrentassetsForeignexchangederivativeinstruments — 22,057 — OthercurrentassetsRabbitrust 12,178 — — OthernoncurrentassetsDeferredcompensationprogramassets 2,170 — — OthernoncurrentassetsForeignexchangederivativeinstruments — 3,389 — OthernoncurrentassetsTotalassets $ 17,160 $ 25,446 $ —

Liabilities Foreignexchangederivativeinstruments $ — $ 365 $ — OthercurrentliabilitiesCommonstockwarrants — — 1,818 OthercurrentliabilitiesDeferredcompensationprogramliabilities 2,170 — — OthernoncurrentliabilitiesForeignexchangederivativeinstruments — 14 — OthernoncurrentliabilitiesTotalliabilities $ 2,170 $ 379 $ 1,818

December31,2015using: (inthousands) Level1 Level2 Level3 BalanceSheetLocationAssets Rabbitrust $ 13,111 $ — $ — OthercurrentassetsForeignexchangederivativeinstruments — 13,824 — OthercurrentassetsRabbitrust 1,442 — — OthernoncurrentassetsDeferredcompensationprogramassets 2,129 — — OthernoncurrentassetsForeignexchangederivativeinstruments — 790 — OthernoncurrentassetsTotalassets $ 16,682 $ 14,614 $ —

Liabilities Foreignexchangederivativeinstruments $ — $ 1,265 $ — OthercurrentliabilitiesCommonstockwarrants — — 22,884 OthercurrentliabilitiesDeferredcompensationprogramliabilities 2,129 — — OthernoncurrentliabilitiesForeignexchangederivativeinstruments — 331 — OthernoncurrentliabilitiesTotalliabilities $ 2,129 $ 1,596 $ 22,884

TableofContents

11.FairValueMeasurements(Continued)

amendedtoceaseallemployeecompensationdeferralsandprovidedforthedistributionofallpreviouslydeferredemployeecompensation.TheprogramremainsineffectwithrespecttothevalueattributabletotheemployermatchcontributedpriortoJuly29,2011.

Foreignexchangederivativeinstrumentsareforwardcontractsusedtohedgecurrencyfluctuationsfortransactionsdenominatedinaforeigncurrency.TheCompanyusesthemid-priceofforeignexchangeforwardratesasofthecloseofbusinessonthevaluationdatetovalueeachforeignexchangeforwardcontractateachreportingperiod.

TheCompanycategorizesthecommonstockwarrantsderivativeliabilityasLevel3astherearesignificantunobservableinputsusedintheunderlyingvaluations.Thecommonstockwarrantsarevaluedusingthecontingentclaimsmethodology.

ThechangeinLevel3fairvaluemeasurementswasasfollows:

12.PensionandOtherPostretirementBenefits

TheCompanyhasvariouspensionandpost-employmentplanswhichprovideforpaymentofretirementbenefits,mainlycommencingbetweentheagesof50and65,andforpaymentofcertaindisabilitybenefits.Aftermeetingcertainqualifications,anemployeeacquiresavestedrighttofuturebenefits.Thebenefitspayableundertheplansaregenerallydeterminedonthebasisofanemployee'slengthofserviceand/orearnings.Employercontributionstotheplansaremade,asnecessary,toensurelegalfundingrequirementsaresatisfied.TheCompanymaymakecontributionsinexcessofthelegalfundingrequirements.

TheCompanyprovidespostretirementhealthcarebenefitstocertainretirees.ManyemployeesandretireesoutsideoftheUnitedStatesarecoveredbygovernmentsponsoredhealthcareprograms.

OnNovember13,2015,theCompanyamendedtheUSpensionplanandsupplementalexecutiveretirementplan("SERP")byclosingtheplanstonewly-hiredfull-timeemployeeswhohadnotyetsatisfiedtheoneyearservicerequirementasofJanuary1,2016,freezingtheaccrualofadditionalbenefitsonparticipantswhohavenotattainedage50withatleast10yearsofvestingservice,orwhoseageplusvestingserviceislessthan70,andshiftingbenefitsforparticipantswhohavecontinuedtoaccruebenefitsfromthepensionplantotheSERPonceacapof$150,000hasbeenreached.Theplanswerere-measuredinaccordancewithASC715resultinginacurtailmentgainof$2.4millionduringtheyearendedDecember31,2015.

(inthousands) 2014 2015 Balanceatbeginningofyear $ 3,705 $ 1,818Commonstockwarrantexercise — (7,298)Total(gains)/lossesincludedinearnings (1,887) 28,364Balanceatendofyear $ 1,818 $ 22,884

TableofContents

12.PensionandOtherPostretirementBenefits(Continued)

Thefollowingtablespresentthechangeinbenefitobligation,changeinplanassets,andfundedstatusfortheCompany'sdefinedbenefitandpostretirementbenefitplansfortheyearsendedDecember31,2014and2015:

(inthousands)

PensionBenefits

(Underfunded)

PensionBenefits

(Overfunded) Postretirement

Benefits Changeinprojectedbenefitobligation(PBO) BenefitobligationatDecember31,2013 $ 229,918 $ 33,346 $ 24,312Servicecost 12,869 467 1,246Interestcost 10,427 1,546 1,090Actuarial(gain)loss 36,419 2,957 (2,484)Planamendments — — (1,713)Participants'contributions — 186 1,182Benefitpayments (13,644) (721) (2,544)Foreigncurrencytranslation (967) (1,783) —ProjectedbenefitobligationatDecember31,2014 275,022 35,998 21,089

Accumulatedbenefitobligation(ABO)atDecember31,2014 220,263 33,657 21,089Changeinplanassets FairvalueofplanassetsatDecember31,2013 136,731 41,432 —Returnonplanassets 21,826 1,021 —Employercontributions 14,602 2,427 1,362Participants'contributions — 186 1,182Benefitpayments (13,644) (721) (2,544)Foreigncurrencytranslation (206) (2,076) —FairvalueofplanassetsatDecember31,2014 159,309 42,269 —Fundedstatus(fairvalueofplanassetslessPBO) $ (115,713) $ 6,271 $ (21,089)

TableofContents

Amountsrecognizedontheconsolidatedbalancesheetswereasfollows:

(inthousands)

PensionBenefits

(Underfunded)

PensionBenefits

(Overfunded) Postretirement

Benefits Changeinprojectedbenefitobligation(PBO) BenefitobligationatDecember31,2014 $ 275,022 $ 35,998 $ 21,089Servicecost 15,515 168 1,060Interestcost 10,962 1,376 787Actuarial(gain)loss 199 2,920 (2,228)Curtailments (21,567) — —Planamendments 1,331 — —Participants'contributions — 55 1,068Benefitpayments (9,203) (575) (1,697)Foreigncurrencytranslation (797) (1,655) —ProjectedbenefitobligationatDecember31,2015 271,462 38,287 20,079

Accumulatedbenefitobligation(ABO)atDecember31,2015 228,830 36,004 20,079Changeinplanassets FairvalueofplanassetsatDecember31,2014 159,309 42,269 —Returnonplanassets (5,182) 1,838 —Employercontributions 12,827 2,095 629Participants'contributions — 55 1,068Benefitpayments (9,203) (575) (1,697)Foreigncurrencytranslation (22) (1,914) —

FairvalueofplanassetsatDecember31,2015 157,729 43,768 —Fundedstatus(fairvalueofplanassetslessPBO) $ (113,733) $ 5,481 $ (20,079)

PensionBenefits PostretirementBenefits December31, December31, (inthousands) 2014 2015 2014 2015 Prepaidbenefitcost $ 6,271 $ 5,481 $ — $ —Currentbenefitliability (2,964) (13,419) (959) (844)Noncurrentbenefitliability (112,749) (100,314) (20,130) (19,235)Netamountrecognized $ (109,442) $ (108,252) $ (21,089) $ (20,079)

TableofContents

Theamountsinaccumulatedothercomprehensiveincome(loss)ontheconsolidatedbalancesheetsthathavenotyetbeenrecognizedascomponentsofnetperiodicbenefitcostwereasfollows:

Theexpectedpriorservicecost(credit)thatwillbeamortizedfromaccumulatedothercomprehensiveincome(loss)intonetperiodicbenefitcostinthenextfiscalyearisacostof$0.2millionforthepensionplansandacreditof$0.2millionforthepostretirementplans.Theexpectedactuarial(gain)lossthatwillbeamortizedfromaccumulatedothercomprehensiveincome(loss)intonetperiodicbenefitcostinthenextfiscalyearisalossof$0.5millionforthepensionplansandagainof$0.7millionforthepostretirementplans.

Componentsofnetperiodicbenefitcostwereasfollows:

PensionBenefits PostretirementBenefits YearendedDecember31, YearendedDecember31, (inthousands) 2013 2014 2015 2013 2014 2015 Netactuarial(gain)lossatbeginningofyear $ 28,401 $ (7,892) $ 19,878 $ 551 $ (3,269) $ (7,270)Currentyearactuarial(gain)loss (35,487) 28,116 17,835 (3,820) (2,484) (2,228)Amortizationofactuarial(gain)loss (606) (34) (1,152) — 195 490Curtailmentimpact — — (19,146) — — —Priorservicecost(credit) — — 1,331 — (1,712) —Amortizationofpriorservicecost(credit) — — (22) — — 168Foreigncurrencytranslation (200) (312) (350) — — —Netactuarial(gain)lossatendofyear $ (7,892) $ 19,878 $ 18,374 $ (3,269) $ (7,270) $ (8,840)

PensionBenefits PostretirementBenefits YearendedDecember31, YearendedDecember31, (inthousands) 2013 2014 2015 2013 2014 2015 Componentsofnetperiodicbenefitcost Servicecost $ 14,786 $ 13,336 $ 15,683 $ 1,389 $ 1,246 $ 1,060Interestcost 10,899 11,973 12,338 971 1,090 787Expectedreturnonplanassets (10,215) (11,587) (11,372) — — —Curtailmentgain — — (2,421) — — —Amortizationofnet(gain)loss 606 34 1,152 — (195) (490)Amortizationofpriorservicecost(credit) — — 22 — — (168)Netperiodicbenefitcost $ 16,076 $ 13,756 $ 15,402 $ 2,360 $ 2,141 $ 1,189

TableofContents

Theweightedaverageassumptionsusedtodeterminefuturebenefitobligationsbenefitcostwereasfollows:

Theweightedaverageassumptionsusedtodeterminenetperiodicbenefitcostwereasfollows:

TheassumedhealthcarecosttrendratesusedtodeterminebenefitobligationsasofDecember31andnetcostfortheyearendedDecember31wereasfollows:

Assumedhealthcarecosttrendrateshaveasignificanteffectontheamountsreportedforthehealthcareplans.Aone-percentage-pointchangeinassumedhealthcarecosttrendrateswouldhavethefollowingeffects:

PensionBenefits

PostretirementBenefits

2014 2015 2014 2015 Weighted-averageassumptionsusedtodeterminebenefitobligationsasofDecember31,

Discountrate 3.92% 4.16% 3.90% 4.30%Rateofcompensationincrease 4.04% 4.07% N/A N/A

PensionBenefits Postretirement

Benefits 2013 2014 2015 2013 2014 2015 Weighted-averageassumptionsusedtodeterminenetcostfortheyearendedDecember31,

Discountrate 4.01% 4.73% 3.92% 3.90% 4.80% 3.90%Expectedlong-termrateofreturnonplanassets 6.72% 6.72% 6.15% N/A N/A N/ARateofcompensationincrease 3.99% 4.05% 4.05% N/A N/A N/A

PostretirementBenefitsMedicalandPrescription

Drug 2013 2014 2015 Healthcarecosttrendrateassumedfornextyear 8.50% 8.00% 5.75/10.00%Ratethatthecosttrendrateisassumedtodecline(theultimatetrendrate) 5.00% 5.00% 4.50%Yearthattheratereachestheultimatetrendrate 2021 2021 2024

2014 2015

(inthousands) One-PercentagePointIncrease

One-PercentagePointDecrease

One-PercentagePointIncrease

One-PercentagePointDecrease

Effectontotalofserviceandinterestcost $ 150 $ (131) $ 125 $ (110)Effectonpostretirementbenefitobligation 1,268 (1,127) 1,054 (941)

TableofContents

PlanAssets

PensionassetsbymajorcategoryofplanassetsandthetypeoffairvaluemeasurementasofDecember31,2014wereasfollows:

PensionassetsbymajorcategoryofplanassetsandthetypeoffairvaluemeasurementasofDecember31,2015wereasfollows:

Pensionassetsincludefixedincomesecuritiesandcommingledfunds.Fixedincomesecuritiesarevaluedatdailyclosingpricesorinstitutionalmid-evaluationpricesprovidedbyindependentindustry-recognizedpricingsources.Commingledfundsarenottradedinactivemarketswithquotedpricesandasaresult,arevaluedusingthenetassetvaluesprovidedbytheadministratorofthefund.Theinvestmentsunderlyingthenetassetvaluesarebasedonquotedpricestradedinactivemarkets.InaccordancewithASU2015-07,"Fair Value Measurement: Disclosures for Investments in Certain Entities that Calculate Net Asset Value perShare (or Its Equivalent) ",theCompanyhasexcludedtheseinvestmentsfromthefairvaluehierarchy.

TheCompany'sinvestmentstrategyistooptimizeinvestmentreturnsthroughadiversifiedportfolioofinvestments,takingintoconsiderationunderlyingplanliabilitiesandassetvolatility.Assetallocationsarebasedontheunderlyingliabilitystructureandlocalregulations.Allretirementassetallocationsarereviewedperiodicallytoensuretheallocationmeetstheneedsoftheliabilitystructure.

MastertrustswereestablishedtoholdtheassetsoftheCompany'sU.S.definedbenefitplans.DuringtheyearendedDecember31,2014,theU.S.definedbenefitplanassetallocationofthesetrusts

PensionBenefits—PlanAssets

(dollarsinthousands) Total

QuotedPricesinActiveMarketsforIdenticalAssets

(Level1)

SignificantObservableInputs(Level2)

SignificantUnobservable

Inputs(Level3)

Assetcategory Individualsecurities Fixedincome $ 1,351 $ — $ 1,351 $ —

Commingledfunds Measuredatnetassetvalue 200,228 — — —

$ 201,579 $ — $ 1,351 $ —

PensionBenefits—PlanAssets

(dollarsinthousands) Total

QuotedPricesinActiveMarketsfor

IdenticalAssets(Level1)

SignificantObservableInputs(Level2)

SignificantUnobservable

Inputs(Level3)

Assetcategory Individualsecurities Fixedincome $ 1,520 $ — $ 1,520 $ —

Commingledfunds Measuredatnetassetvalue 199,977 — — —

$ 201,497 $ — $ 1,520 $ —

TableofContents

targetedareturn-seekinginvestmentallocationof60%to76%andaliability-hedginginvestmentallocationof24%to40%.DuringtheyearendedDecember31,2015,theU.S.definedbenefitplanassetallocationofthesetruststargetedareturn-seekinginvestmentallocationof64%to76%andaliability-hedginginvestmentallocationof24%to36%.Return-seekinginvestmentsincludeequities,realestate,highyieldbondsandotherinstruments.Liability-hedginginvestmentsincludeassetssuchascorporateandgovernmentfixedincomesecurities.

TheCompany'sfutureexpectedblendedlong-termrateofreturnonplanassetsof6.23%isdeterminedbasedonlong-termhistoricalperformanceofplanassets,currentassetallocation,andprojectedlong-termratesofreturn.

EstimatedContributions

TheCompanyexpectstomakepensioncontributionsofapproximately$26.5millionduring2016basedoncurrentassumptionsasofDecember31,2015.

EstimatedFutureRetirementBenefitPayments

Thefollowingretirementbenefitpayments,whichreflectexpectedfutureservice,areexpectedtobepaidasfollows:

Theestimatedfutureretirementbenefitpaymentsnotedaboveareestimatesandcouldchangesignificantlybasedondifferencesbetweenactuarialassumptionsandactualeventsanddecisionsrelatedtolumpsumdistributionoptionsthatareavailabletoparticipantsincertainplans.

InternationalPlans

PensioncoverageforemployeesoftheCompany'sinternationalsubsidiariesisprovided,totheextentdeemedappropriate,throughseparatedefinedbenefitplans.Theinternationalpensionplansareincludedinthetablesabove.AsofDecember31,2014and2015,thedefinedbenefitplanshadtotalprojectedbenefitobligationsof$50.4millionand$53.5million,respectively,andfairvaluesofplanassetsof$43.7millionand$45.4million,respectively.Themajorityoftheplanassetsareinvestedinequitysecuritiesandcorporatebonds.Thepensionexpenserelatedtotheseplanswas$1.6million,$1.2millionand$0.9millionfortheyearsendedDecember31,2013,2014and2015,respectively.Theexpectedactuariallossthatwillbeamortizedfromaccumulatedothercomprehensiveincome(loss)intonetperiodicbenefitcostinthenextfiscalyearis$0.1million.

(inthousands) PensionBenefits

PostretirementBenefits

YearendingDecember31, 2016 $ 26,779 $ 8442017 15,453 9692018 19,332 1,1662019 18,803 1,3192020 20,186 1,487Thereafter 122,915 9,543

Total $ 223,468 $ 15,328

TableofContents

DefinedContributionPlans

TheCompanysponsorsanumberofdefinedcontributionplans.Contributionsaredeterminedundervariousformulas.Cashcontributionsrelatedtotheseplansamountedto$8.4million,$8.8millionand$9.4millionfortheyearsendedDecember31,2013,2014and2015,respectively.

13.IncomeTaxes

Thecomponentsofincomebeforeincometaxeswereasfollows:

Thefollowingtablerepresentsareconciliationofincometaxesatthe35%federalstatutoryincometaxratetoincometaxexpenseasreported:

YearEndedDecember31, (inthousands) 2013 2014 2015 Domesticoperations $ 15,023 $ 2,814 $ 4,784Foreignoperations 26,440 39,252 27,366Incomebeforeincometaxes $ 41,463 $ 42,066 $ 32,150

YearendedDecember31, (inthousands) 2013 2014 2015 Incometaxexpensecomputedatfederalstatutoryincometaxrate $ 14,512 $ 14,723 $ 11,252Foreigntaxes,netofcredits (7,014) 2,835 418Netadjustmentsforuncertaintaxpositions 27 525 4,731Stateandlocaltaxes (550) (1,659) (1,108)Equityappreciationrights — — 693Indemnifiedtaxes — — (1,106)Fairvalueadjustmentforcommonstockwarrants 721 268 10,853Statevaluationallowance 10,510 2,476 7,872Deferredcharge 1,925 (1,491) 807Taxcredits (1,813) (2,176) (7,003)Miscellaneousother,net (1,168) 1,199 585Incometaxexpenseasreported $ 17,150 $ 16,700 $ 27,994

Effectiveincometaxrate 41.4% 39.7% 87.1%

TableofContents

13.IncomeTaxes(Continued)

TheCompany'sunrecognizedtaxbenefitsrepresenttaxpositionsforwhichreserveshavebeenestablished.Thefollowingtablerepresentsareconciliationoftheactivityrelatedtotheunrecognizedtaxbenefits,excludingaccruedinterestandpenalties:

FortheyearsendedDecember31,2013,2014and2015,theunrecognizedtaxbenefitsof$4.5million,$8.8millionand$13.1million,respectively,wouldaffecttheCompany'seffectivetaxrateifrecognized.TheCompanydoesnotanticipateamaterialchangeinunrecognizedtaxbenefitswithinthenext12months.

AsofDecember31,2013,2014and2015,theCompanyhadunrecognizedtaxbenefitsincludedintheamountsaboveof$4.0million,$3.7millionand$4.2million,respectively,relatedtoperiodspriortotheCompany'sacquisitionofAcushnetCompanyandassuch,areindemnifiedbyBeam.

FortheyearsendedDecember31,2013,2014and2015,theCompanyrecognizedaliabilityof$1.3million,$1.5millionand$1.9million,respectivelyforinterestandpenalties,ofwhich$1.2million,$1.4millionand$1.6millionisindemnifiedbyBeam.

PriortotheCompany'sacquisitionofAcushnetCompany,AcushnetCompanyoritssubsidiariesfiledcertaincombinedtaxreturnswithBeam.Thoseandothersubsidiaries'incometaxreturnsareperiodicallyexaminedbyvarioustaxauthorities.BeamisresponsibleformanagingUnitedStatestaxauditsrelatedtoperiodspriortoJuly29,2011.AcushnetCompanyisobligatedtosupporttheseauditsandisresponsibleformanagingallnon-U.S.audits.AsofDecember31,2015,theU.S.InternalRevenueServicecontinuedtoperformitsexaminationofthe2010andJuly29,2011AcushnetCompanyfederalincometaxreturnsthatwerefiledaspartoftheBeamconsolidatedfederalincometaxreturns.

TheCompanyandcertainsubsidiarieshavetaxyearsthatremainopenandaresubjecttoexaminationbytaxauthoritiesinthefollowingmajortaxingjurisdictions:UnitedStatesforyearsafterJuly31,2011,Canadaforyearsafter2010,Japanforyearsafter2011,Koreaforyearsafter2008,andtheUnitedKingdomforyearsafter2010.TheCompanyfilesincometaxreturnsonacombined,unitary,orstand-alonebasisinmultiplestateandlocaljurisdictions,whichgenerallyhavestatuteoflimitationsfromthreetofouryears.Variousstatesandlocalincometaxreturnsarecurrentlyintheprocessofexamination.TheseexaminationsareunlikelytoresultinanysignificantchangestotheamountsofunrecognizedtaxbenefitsontheconsolidatedbalancesheetasofDecember31,2015.

TheCompany'sincometaxexpenseincludesataxbenefitof$3.7millionand$0.3millionfortheyearsendedDecember31,2013and2014,respectivelyandtaxexpenseof$3.0millionfortheyearendedDecember31,2015relatedtothetaxobligationsindemnifiedbyBeam.Thereisanoffsetting

YearendedDecember31, (inthousands) 2013 2014 2015 Unrecognizedtaxbenefitsatbeginningofyear $ 4,415 $ 4,451 $ 8,845Grossadditions—prioryeartaxpositions 665 — 3,045Grossadditions—currentyeartaxpositions — 4,798 1,605Grossreductions—prioryeartaxpositions (648) (357) (333)Impactofchangeinforeignexchangerates 19 (47) (42)Unrecognizedtaxbenefitsatendofyear $ 4,451 $ 8,845 $ 13,120

TableofContents

amountincludedinother(income)expense,netfortherelatedadjustmenttotheBeamindemnificationasset,resultinginnoeffectonnetincome.

Incometaxexpensewasasfollows:

YearendedDecember31, (inthousands) 2013 2014 2015 Currentexpense UnitedStates $ 756 $ (1,125) $ 5,455Foreign 32,255 29,118 20,351Currentincometaxexpense(benefit) 33,011 27,993 25,806

Deferredexpense UnitedStates (11,329) (10,425) (152)Foreign (4,532) (868) 2,340Deferredincometaxexpense(benefit) (15,861) (11,293) 2,188Totalincometaxexpense $ 17,150 $ 16,700 $ 27,994

TableofContents

Thecomponentsofnetdeferredtaxassets(liabilities)wereasfollows:

AsofDecember31,2014and2015,theCompanyhadstatenetoperatingloss(NOL)carryforwardsof$83.0millionand$103.0million,respectively.TheseNOLcarryfowardsexpirebetween2017and2035.AsofDecember31,2014and2015,theCompanyhadforeigntaxcreditcarryforwardsof$41.9millionand$37.9million,respectively.Theseforeigntaxcreditswillbegintoexpirein2022.

Changesinthevaluationallowancefordeferredtaxassetswereasfollows:

ThechangesinthevaluationallowancewereprimarilyrelatedtotheincreaseinthestatetaxdeferredtaxassetsthattheCompanyhasdeterminedarenotmore-likely-than-notrealizable.Indeterminingtherealizabilityoftheseassets,theCompanyconsiderednumerousfactorsincluding

December31, (inthousands) 2014 2015 Deferredtaxassets Compensationandbenefits $ 23,586 $ 24,736Equityappreciationrights 45,603 62,679Pensionandotherpostretirementbenefits 40,291 39,268Inventories 6,904 7,011Accountsreceivable 2,828 3,790Customersalesincentives 2,843 2,761Transactioncosts 4,126 3,601Otherreserves 6,663 6,056Interest 9,786 5,852Miscellaneous 636 160Netoperatinglossandothertaxcarryforwards 47,429 47,557Grossdeferredtaxassets 190,695 203,471

Valuationallowance (13,850) (20,771)Totaldeferredtaxassets 176,845 182,700

Deferredtaxliabilities Property,plantandequipment (10,237) (15,043)Identifiableintangibleassets (34,487) (38,075)Foreignexchangederivativeinstruments (6,603) (3,600)Miscellaneous (1,167) (829)

Totaldeferredtaxliabilities (52,494) (57,547)Netdeferredtaxasset $ 124,351 $ 125,153

YearendedDecember31, (inthousands) 2013 2014 2015 Valuationallowanceatbeginningofyear $ — $ 10,510 $ 13,850Increasesrecordedtoincometaxprovision 10,510 3,340 6,921Valuationallowanceatendofyear $ 10,510 $ 13,850 $ 20,771

TableofContents

historicalprofitability,thecharacterandestimatedfuturetaxableincome,prudentandfeasibletaxplanningstrategies,andtheindustryinwhichitoperates.TheutilizationoftheCompany'snetU.S.statedeferredtaxassetsisdependentonfutureU.S.statetaxableearnings,whichcannotbeprojectedwithcertaintyatthistime.

InconnectionwiththeacquisitionofAcushnetCompany,theCompanyhasdeterminedthatitsundistributedearningsformostofitsforeignsubsidiariesarenotpermanentlyreinvestedandhasprovideddeferredincometaxesinconnectionwiththeanticipatedrepatriation.

14.InterestExpenseandOther(Income)Expense,Net

Thecomponentsofinterestexpense,netwereasfollows:

Thecomponentsofother(income)expense,netwereasfollows:

15.RedeemableConvertiblePreferredStock

TheCompanyhasissuedSeriesAredeemableconvertiblepreferredstock("SeriesApreferredstock").AsofDecember31,2014and2015,theCompany'scertificateofincorporation,asamendedandrestated,authorizedtheCompanytoissue1,838,027sharesof$0.001parvaluepreferredstock.GiventhatcertainredemptionfeaturesofthepreferredstockarenotsolelywithinthecontroloftheCompany,theSeriesApreferredstockisclassifiedoutsideofstockholders'equity.TheSeriesApreferredstockisonlyredeemableuponachangeincontrol.

In2011and2012theCompanyissued1,838,027sharesofSeriesApreferredstockwithanaggregatefairvalueof$131.0millionuponissuance.

VotingRights

TheholdersoftheSeriesApreferredstockareentitledtovote,togetherwiththeholdersofcommonstock,onallmatterssubmittedtostockholdersforavote.HoldersofallSeriesApreferredstockhavetherighttocastthenumberofvotesequaltothenumberofsharesofcommonstockinto

YearendedDecember31, (inthousands) 2013 2014 2015 Interestexpense—relatedparty $ 40,276 $ 37,960 $ 35,420Interestexpense—thirdparty 28,443 26,493 26,567Interestincome—thirdparty (570) (924) (1,693)Totalinterestexpense,net $ 68,149 $ 63,529 $ 60,294

YearendedDecember31, (inthousands) 2013 2014 2015 (Gain)lossonfairvalueofcommonstockwarrants $ (976) $ (1,887) $ 28,364Indemnification(gains)losses 6,345 1,386 (3,007)Othergains (84) (847) (218)Totalother(income)expense,net $ 5,285 $ (1,348) $ 25,139

TableofContents

15.RedeemableConvertiblePreferredStock(Continued)

whichtheSeriesApreferredstockcouldconvertontherecorddatefordeterminationofstockholdersentitledtovote.

Additionally,thevoteorconsentofholdersofatleast90%oftheSeriesApreferredstock,votingtogetherasasingleclass,isrequiredforanyamendmentofthecertificateofincorporationiftheamendmentadverselyaffectstheseholders.

Dividends

TheholdersoftheSeriesApreferredstockareentitledtoreceivecumulativedividendsatarateof7.5%peryearoftheOriginalIssuePrice(asdefinedbelow)when,asandifdeclaredbytheboardofdirectors.Thedividendsaccrueonadailybasisandarepayablesemi-annually.Allunpaiddividendscompoundannuallyatarateof7.5%peryear.Thesedividendsshallbeinpreferencetodividendstotheholdersofcommonstock.TheOriginalIssuePriceis$100pershareofSeriesApreferredstock.

TheholdersofSeriesApreferredstockarealsoentitledtoreceive,onanas-convertedbasis,aprorataportionofanyadditionaldividendsdeclaredorpaid.

TheCompanydeclaredandpaiddividendstotheholdersoftheSeriesApreferredstockof$13.9million,$13.8millionand$13.7millionduringtheyearsendedDecember31,2013,2014and2015,respectively.CumulativeundeclareddividendsasofDecember31,2014and2015were$5.8millionineachyear.

LiquidationPreference

Intheeventofanyliquidation,voluntaryorinvoluntary,dissolutionorwindingupoftheCompany,theholdersofSeriesApreferredstockareentitledtoreceive,priorandinpreferencetoanydistributiontotheholdersofthecommonstock,anamountequaltothegreateroftheOriginalIssuePriceplusanyaccruedbutunpaiddividendsthereonorsuchamountpersharethatwouldbepayableifallsharesofSeriesApreferredstockconvertedintocommonstock.Intheeventthatproceedsarenotsufficienttopermitpaymentinfulltotheseholders,theproceedswillberatablydistributedamongtheholdersoftheSeriesApreferredstock.

AsofDecember31,2014and2015,theSeriesApreferredstockhadaliquidationpreferenceof$212.5millionand$197.7million,respectively.

Conversion

EachshareofSeriesApreferredstockisconvertibleintocommonstockattheoptionofthestockholderatanytimeafterthedateofissuanceanduntilJuly29,2021.EachshareofSeriesApreferredstockwillbeconvertedintosharesofcommonstockattheapplicableSeriesApreferredstockconversionratio.

TheconversionratioofSeriesApreferredstockisdeterminedbydividingtheOriginalIssuePricebytheconversionprice.Theconversionpriceis$11.11pershareofSeriesApreferredstockandissubjecttoadjustmentintheeventofanydeemedissuanceofadditionalsharesofcommonstockfornoconsiderationorforconsiderationpersharelessthantheSeriesApreferredstockconversionprice,stockdividend,stocksplit,combinationorothersimilarrecapitalizationwithrespecttotheSeriesApreferredstock.

TableofContents

15.RedeemableConvertiblePreferredStock(Continued)

Reissuance

SharesofSeriesApreferredstockthatareredeemedorconvertedwillbecanceledandretiredandcannotbereissuedbytheCompany.

16.CommonStock

AsofDecember31,2014and2015,theCompany'scertificateofincorporation,asamendedandrestated,authorizedtheCompanytoissue78,193,494sharesof$0.001parvaluecommonstock.Thevoting,dividendandliquidationrightsoftheholdersoftheCompany'scommonstockaresubjecttoandqualifiedbyrights,powersandpreferencesoftheholdersoftheSeriesApreferredstocksetforthinNote15.

EachshareofcommonstockentitlestheholdertoonevoteonallmatterssubmittedtoavoteoftheCompany'sshareholders.Commonshareholdersareentitledtoreceivedividendswheneverfundsarelegallyavailableandwhendeclaredbytheboardofdirectors,subjecttothepriorrightsofholdersofallclassesofstockoutstanding.Whendividendsaredeclaredonsharesofcommonstock,theCompanymustdeclareatthesametimeadividendpayabletotheholdersofSeriesApreferredstockequivalenttothedividendamounttheywouldreceiveifeachpreferredsharewereconvertedintocommonstock.TheCompanymaynotpaydividendstocommonshareholdersuntilalldividendsaccruedordeclaredbutunpaidontheSeriesApreferredstockhavebeenpaidinfull.Nodividendshavebeendeclaredtodate.

AsofDecember31,2014and2015,theCompanyhadreserved32,382,900sharesand28,827,531shares,respectively,ofcommonstockfortheconversionofoutstandingsharesofSeriesApreferredstock(Note15),theexerciseofoutstandingstockoptionsandnumberofsharesremainingavailableforgrantundertheCompany's2011EquityIncentivePlan(Note17)andtheexerciseofcommonstockwarrants(Note9).

17.EquityIncentivePlans

TheCompany's2011EquityIncentivePlan,asamended,(the"2011Plan")providesfortheCompanytosellorissuerestrictedcommonstock,ortograntstockoptions,equityappreciationrights,restrictedstockunitsorperformanceawards,toemployees,membersoftheboardofdirectorsandconsultantsoftheCompany.The2011Planisadministeredbytheboardofdirectorsor,atthediscretionoftheboardofdirectors,byacommitteeoftheboard.Theexerciseprices,vestingandotherrestrictionsaredeterminedatthediscretionoftheboardofdirectors,ortheircommitteeifsodelegated,exceptthattheexercisepricepershareofstockoptionsmaynotbelessthan100%ofthefairmarketvalueoftheshareofcommonstockonthedateofgrantandthetermofthestockoptionmaynotbegreaterthantenyears.

TableofContents

17.EquityIncentivePlans(Continued)

StockOptions

Thetotalnumberofsharesofcommonstockthatmaybeissuedunderthe2011Planwas1,328,148sharesasofDecember31,2015.Priorto2013,theCompanyissuedoptionstopurchase1,328,148sharesofcommonstockwithaweighted-averageexercisepriceof$9.90persharetoanexecutiveofficerasreplacementawardsinconnectionwithabusinesscombination.Theseawardswerefullyvestedatthetimeofissuance.

ThefollowingtablesummarizestheCompany'sstockoptionactivitysinceDecember31,2013:

DuringtheyearsendedDecember31,2013,2014and2015theCompanydidnotissueanyrestrictedstockanddidnotgrantanystockoptions,restrictedstockunitsorperformanceawards.Asaresultofamodificationofthestockoptions,theCompanyrecordedshare-basedcompensationexpenseof$3.4million,$2.0millionand$5.8millionrelatedtooutstandingstockoptionsduringtheyearsendedDecember31,2013,2014and2015,respectively.

EquityAppreciationRights

EffectiveJanuary1,2012,theCompany'sboardofdirectorsadoptedtheequityappreciationrightsplan("EARPlan")inordertocompensatecertainkeyemployees.Awardsundertheplanvest,subjecttocontinuedservicebytheawardrecipient,asfollows:40%ofawardbasedontherecipient'scontinuedservicewiththeCompanythroughDecember31,2015,30%oftheawardbasedontheCompany'sachievementofaspecifiedtargetEBITDA,and30%oftheawardbasedontheCompany'sachievementofspecifiedinternalratesofreturn.Priortothecompletionofaqualifiedpublicoffering,vestedawardsundertheEARPlanarepayableincashuponthefirsttooccurof(i)aqualifyingtermination,(ii)asaleoftheCompanyor(iii)theexpirationdateoftheaward.IntheeventthattheCompanycompletesaqualifiedinitialpublicoffering,theCompanymaydetermineatitsdiscretiontosettleupto50%oftheamountpayableundereachawardinsharesoftheCompany'scommonstock.

During2012,theCompanygrantedanaggregateof8,901,000EARswithaweighted-averagestrikepriceof$11.12tocertainkeyemployees.Therewasnointrinsicvalueatthedateofgrant.EachEARvestsoverafouryearperiodasfollows:40%ofawardbasedontherecipient'scontinuedservicewiththeCompanythroughDecember31,2015,30%oftheawardbasedontheCompany'sachievementofaspecifiedtargetEBITDAand30%oftheawardbasedontheCompany'sachievementofspecifiedinternalratesofreturn.

During2015,theCompanygrantedanaggregateof279,000EARswithaweighted-averagestrikepriceof$20.53tocertainkeyemployees.Therewasnointrinsicvalueatthedateofgrant.EachEAR

Numberof

Shares

Weighted-AverageExercisePrice

Weighted-AverageRemaining

ContractualTerm

AggregateIntrinsicValue

OutstandingatDecember31,2013 799,452 $ 9.39 1.9years $ (1,616)Exercised (349,371) 10.98 (1,001)

OutstandingatDecember31,2014 450,081 8.34 1.9years (4)Exercised (450,081) 8.34 2,301

OutstandingatDecember31,2015 —

TableofContents

vestsretroactivelybasedontheeffectivedateofJanuary1,2012andovertheremainingtermasfollows:40%ofawardbasedontherecipient'scontinuedservicewiththeCompanythroughDecember31,2015,30%oftheawardbasedontheCompany'sachievementofaspecifiedtargetEBITDAand30%oftheawardbasedontheCompany'sachievementofspecifiedinternalratesofreturn.

ThefollowingtablesummarizestheCompany'sEARactivitysinceDecember31,2013:

TheEARawardsarere-measuredusingtheintrinsicvaluemethodateachreportingperiodbasedonaprojectionoftheCompany'sfuturecommonstockequivalentvalue.ThecommonstockequivalentvalueisbasedonanestimateoftheCompany'sEBITDAmultipliedbyadefinedmultiple,anddividedbytheexpectednumberofcommonsharesoutstanding.Theintrinsicvalueisthecalculatedcommonstockequivalentvaluepersharecomparedtothepershareexerciseprice.EffectiveOctober17,2014,theCompanyamendedtheEARPlansuchthat(i)paymentsforvestedawardsresultingfromaqualifiedterminationoftheawardrecipientaredeterminedbasedontheCompany'sEBITDAforthefiscalyearpriortosuchterminationand(ii)paymentsforvestedawardsresultingfromanexpirationoftheawardaredeterminedbasedonthegreateroftheCompany'sEBITDAfortheyearendedDecember31,2015,theCompany'sEBITDAfortheyearendingDecember31,2016,orinthecaseofaqualifiedinitialpublicofferingpriortoDecember31,2016,thevalueoftheCompany'spublicly-tradedcommonstock.

FortheyearsendedDecember31,2013,2014and2015,theCompanyrecordedshare-basedcompensationexpenseof$28.3million,$50.7millionand$45.8million,respectively,relatedtooutstandingEARs.TheliabilityrelatedtotheEARPlanwas$122.0millionasofDecember31,2014andwasrecordedwithinothernoncurrentliabilitiesontheconsolidatedbalancesheet.TheliabilityrelatedtotheEARPlanwas$169.6millionasofDecember31,2015,ofwhich$24.2millionwasrecordedwithinaccruedcompensationandbenefitsand$145.4millionwasrecordedwithinothernoncurrentliabilitiesontheconsolidatedbalancesheet.

Numberof

Awards

Weighted-AverageExercisePrice

Weighted-AverageRemaining

ContractualTerm

AggregateIntrinsicValue

OutstandingatDecember31,2013 8,901,000 $ 11.12 3years $ 146,714Granted — — —

OutstandingatDecember31,2014 8,901,000 $ 11.12 2years 166,795Granted 279,000 20.53 —

OutstandingatDecember31,2015 9,180,000 $ 11.40 1year 171,712

VestedatDecember31,2015 9,180,000 $ 11.40 1year 171,712AwardsexercisableatDecember31,2015 9,180,000 $ 11.40 1year 171,712

TableofContents

Theallocationofshare-basedcompensationexpenseattributedtoEARsandstockoptionsintheconsolidatedstatementofoperationswasasfollows:

18.AccumulatedOtherComprehensiveIncome(Loss),NetofTax

Accumulatedothercomprehensiveincome(loss),netoftaxconsistsofforeigncurrencytranslationadjustments,unrealizedgainsandlossesfromforeignexchangederivativeinstrumentsdesignatedascashflowhedges,unrealizedgainsandlossesfromavailable-for-salesecuritiesandpensionandotherpostretirementadjustments.

Thecomponentsofandchangesinaccumulatedothercomprehensiveincome(loss),netoftax,wereasfollows:

YearendedDecember31, (inthousands) 2013 2014 2015 Costofgoodssold $ 437 $ 765 $ 670Selling,generalandadministrativeexpense 29,969 49,631 48,377Researchanddevelopment 1,313 2,294 2,556Incomebeforeincometaxes $ 31,719 $ 52,690 $ 51,603

(inthousands)

ForeignCurrencyTranslationAdjustments

GainsonForeignExchangeDerivativeInstruments

GainsonAvailable-for-SaleSecurities

PensionandOther

PostretirementAdjustments

AccumulatedOther

ComprehensiveIncome(Loss)

BalancesatDecember31,2013 $ (27,871) $ 8,078 $ 1,562 $ 6,917 $ (11,314)Othercomprehensiveincome(loss)beforereclassifications (23,106) 19,009 455 (16,025) (19,667)

Amountsreclassifiedfromaccumulatedothercomprehensiveloss — (9,916) — (161) (10,077)

BalancesatDecember31,2014 (50,977) 17,171 2,017 (9,269) (41,058)Othercomprehensiveincome(loss)beforereclassifications (19,042) 18,800 (513) 868 113

Amountsreclassifiedfromaccumulatedothercomprehensiveloss — (26,805) — 516 (26,289)

BalancesatDecember31,2015 $ (70,019) $ 9,166 $ 1,504 $ (7,885) $ (67,234)

TableofContents

19.NetIncome(loss)perCommonShare

Thefollowingisacomputationofbasicanddilutednetincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.underthetwo-classmethod:

TheCompany'spotentialdilutivesecuritiesfortheyearsendedDecember31,2013,2014and2015includeredeemableconvertiblepreferredstock,stockoptions,warrantstopurchasecommonstockandconvertiblenotes.DilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.isthesameasbasicnetincomepercommonshareattributabletoAcushnetHoldingsCorp.fortheyearsendedDecember31,2013and2014becausetheeffectofthepotentialdilutivesecuritieswasdeterminedtobeanti-dilutive.FortheyearendedDecember31,2015,thedilutednetlosspercommonshareattributabletoAcushnetHoldingsCorp.isthesameasbasicnetlosspercommonshareattributabletoAcushnetHoldingsCorp.astheimpactofthepotentialdilutivesecuritieswasdeterminedtobeanti-dilutiveduetotheCompanybeinginanetlossposition.

Thefollowingsecuritieshavebeenexcludedfromthecalculationofdilutedweighted-averagecommonsharesoutstandingastheirimpactwasdeterminedtobeanti-dilutive:

20.UnauditedProFormaNetIncomeperCommonShare

TheunauditedproformabasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.fortheyearendedDecember31,2015giveseffecttotheautomaticconversion,arisingpriortoaqualifiedinitialpublicoffering,ofallsharesofSeriesApreferredstockandtheprincipaloftheconvertiblenotesthatareoutstandingasofDecember31,2015.ThecalculationofunauditedproformanetincomepercommonshareattributabletoAcushnetHoldingsCorp.hasbeenpreparedtogiveeffecttotheconversionasiftheproposedinitialpublicofferingoccurredonJanuary1,2015.

TheunauditedproformanetincomeattributabletoAcushnetHoldingsCorp.usedinthecalculationofunauditedbasicanddilutedproformanetincomepercommonshareattributableto

YearendedDecember31, (inthousands,exceptshareandpershareamounts) 2013 2014 2015 Netincome(loss)attributabletoAcushnetHoldingsCorp. $ 19,636 $ 21,557 $ (966)Less:dividendspaidtopreferredshareholders (8,045) (8,045) (8,045)Less:accruingofcumulativedividends (5,740) (5,740) (5,740)Less:allocationofundistributedearningstopreferredshareholders (3,225) (3,866) —

Netincome(loss)attributabletocommonstockholders $ 2,626 $ 3,906 $ (14,751)Netincome(loss)percommonshareattributabletoAcushnetHoldingsCorp.—basicanddiluted $ 0.19 $ 0.23 $ (0.74)

Weightedaveragenumberofcommonshares—basicanddiluted 13,471,308 16,716,825 19,939,293

YearendedDecember31, 2013 2014 2015 SeriesApreferredstock 16,542,243 16,542,243 16,542,243Stockoptions — — 1,089Warrantstopurchasecommonstock — — 4,891,887Convertiblenotes 32,624,820 32,624,820 32,624,820

TableofContents

20.UnauditedProFormaNetIncomeperCommonShare(Continued)

AcushnetHoldingsCorp.fortheyearendedDecember31,2015doesnotincludetheeffectsofthepaymentorcumulativedividendsontheSeriesApreferredstockorinterestexpenserelatedtotheconvertiblenotesfortheyearendedDecember31,2015.

TheunauditedproformabasicanddilutedweightedaveragecommonsharesoutstandingusedinthecalculationofunauditedproformabasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.fortheyearendedDecember31,2015includes49,167,063sharesofcommonstockresultingfromtheautomaticconversion.

TheunauditedproformadilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.fortheyearendedDecember31,2015alsogiveseffecttoanypotentiallydilutivesecurities.

UnauditedproformabasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.wascalculatedasfollows:

21.SegmentInformation

TheCompany'soperatingsegmentsarebasedonhowtheChiefOperatingDecisionMaker("CODM")makesdecisionsaboutassessingperformanceandallocatingresources.TheCompanyhasfourreportablesegmentsthatareorganizedonthebasisofproductcategories.ThesesegmentsincludeTitleistgolfballs,Titleistgolfclubs,TitleistgolfgearandFootJoygolfwear.

(inthousands,exceptshareandpershareamounts) Proforma

2015 NetlossattributabletoAcushnetHoldingsCorp. $ (966)Proformaadjustmenttoaddinterestonconvertiblenotes,netoftax 17,672

NetincomeusedtocomputeproformanetincomepercommonshareattributabletoAcushnetHoldingsCorp. $ 16,706

Weightedaveragenumberofcommonshares: Basic 19,939,293Proformaadjustmenttoreflectconversionofpreferredshares 16,542,243Proformaadjustmenttoreflectconversionofconvertiblenotes 32,624,820

UsedincalculatingbasicproformanetincomepercommonshareattributabletoAcushnetHoldingsCorp. 69,106,356

Diluted 19,939,293Proformaadjustmenttoreflectconversionofpreferredshares 16,542,243Proformaadjustmenttoreflectconversionofconvertiblenotes 32,624,820Proformaadjustmenttoreflectdilutiveeffectofstockoptions 1,089

UsedincalculatingdilutedproformanetincomepercommonshareattributabletoAcushnetHoldingsCorp. 69,107,445

ProformanetincomepercommonshareattributabletoAcushnetHoldingsCorp.: Basic $ 0.24Diluted $ 0.24

TableofContents

21.SegmentInformation(Continued)

TheCODMprimarilyevaluatesperformanceusingsegmentoperatingincome.Segmentoperatingincomeincludesdirectlyattributableexpensesandcertainsharedcostsofcorporateadministrationthatareallocatedtothereportablesegments,butexcludesinterestexpense,net;EARexpense;gainsandlossesonthefairvalueofcommonstockwarrants;andothernon-operatinggainsandlossesastheCompanydoesnotallocatethesetothereportablesegments.TheCODMdoesnotevaluateameasureofassetswhenassessingperformance.

Resultsshownforfiscalyears2013,2014and2015arenotnecessarilythosewhichwouldbeachievedifeachsegmentwasanunaffiliatedbusinessenterprise.Therearenointersegmenttransactions.

Informationbyreportablesegmentandareconciliationtoreportedamountsareasfollows:

YearendedDecember31, (inthousands) 2013 2014 2015 Netsales Titleistgolfballs $ 551,741 $ 543,843 $ 535,465Titleistgolfclubs 395,704 422,383 388,304Titleistgolfgear 117,015 127,875 129,408FootJoygolfwear 395,846 421,632 418,852Other 16,913 21,877 30,929

Totalnetsales $ 1,477,219 $ 1,537,610 $ 1,502,958Segmentoperatingincome Titleistgolfballs $ 69,878 $ 68,489 $ 92,507Titleistgolfclubs 40,792 45,845 33,593Titleistgolfgear 14,922 16,485 12,170FootJoygolfwear 23,109 28,639 26,056Other (3,123) (1,759) 4,056Totalsegmentoperatingincome 145,578 157,699 168,382

Reconcilingitems: Interestexpense,net (68,149) (63,529) (60,294)EARexpense (28,258) (50,713) (45,814)Gain(loss)onfairvalueofcommonstockwarrants 976 1,887 (28,364)Other (8,684) (3,278) (1,760)Totalincome(loss)beforeincometax $ 41,463 $ 42,066 $ 32,150

Depreciationandamortization Titleistgolfballs $ 24,853 $ 27,726 $ 26,962Titleistgolfclubs 6,767 7,172 7,060Titleistgolfgear 1,374 1,446 1,368FootJoygolfwear 5,787 5,948 5,540Other 642 867 772

Totaldepreciationandamortization $ 39,423 $ 43,159 $ 41,702

TableofContents

InformationastotheCompany'soperationsindifferentgeographicalareasispresentedbelow.Netsalesarecategorizedbasedonthelocationinwhichthesaleoriginates.Long-livedassets(property,plantandequipment)arecategorizedbasedontheirlocationofdomicile.

22.CommitmentsandContingencies

PurchaseObligations

Duringthenormalcourseofitsbusiness,theCompanyentersintoagreementstopurchasegoodsandservices,includingpurchasecommitmentsforproductionmaterials,finishedgoodsinventory,capitalexpendituresandendorsementarrangementswithprofessionalgolfers.ThereportedamountsexcludethoseliabilitiesincludedinaccountspayableoraccruedliabilitiesontheconsolidatedbalancesheetasofDecember31,2015.

PurchaseobligationsbytheCompanyasofDecember31,2015wereasfollows:

YearendedDecember31, (inthousands) 2013 2014 2015 Netsales UnitedStates $ 769,480 $ 793,328 $ 805,470EMEA(1) 195,291 216,531 201,106Japan 196,957 195,762 182,163Korea 118,957 141,168 144,956Restofworld 196,534 190,821 169,263Totalnetsales $ 1,477,219 $ 1,537,610 $ 1,502,958

December31, (inthousands) 2013 2014 2015 Long-livedassets UnitedStates $ 177,608 $ 172,709 $ 168,459EMEA 10,480 9,725 9,423Japan 1,674 1,143 767Korea 3,426 3,058 1,726Restofworld(2) 84,479 79,957 74,519Totallong-livedassets $ 277,667 $ 266,592 $ 254,894

(1) Europe,theMiddleEastandAfrica("EMEA")

(2) IncludesmanufacturingfacilitiesinThailandwithlonglivedassetsof$67.2million,$64.6millionand$60.5millionasofDecember31,2013,2014and2015,respectively.

PaymentsDuebyPeriod (inthousands) 2016 2017 2018 2019 2020 Thereafter Purchaseobligations $ 126,032 $ 19,504 $ 8,422 $ 1,448 $ 1,435 $ 4,749

TableofContents

22.CommitmentsandContingencies(Continued)

LeaseCommitments

TheCompanyleasescertainwarehouses,distributionandofficefacilities,vehiclesandofficeequipmentunderoperatingleases.

TheCompanyhasanoperatingleaseforcertainvehiclesthatprovidesforaresidualvalueguarantee.Theleasehasanoncancelableleasetermofoneyearandmayberenewedannuallyoverthesubsequentfiveyears.TheCompanyhastheoptiontoterminatetheleaseattheannualrenewaldate.Terminationoftheleaseresultsinthesaleofthevehiclesandthedeterminationoftheresidualvalue.Theresidualvalueiscalculatedbycomparingthenetproceedsofthevehiclessoldtothedepreciatedvalueattheendoftherenewalperiod.TheCompanyisnotresponsibleforanydeficiencyresultingfromthenetproceedsbeinglessthan20%oftheoriginalcostinthefirstyearand20%ofthedepreciatedvalueforallsubsequentyears.TheCompanybelievesthatthisguaranteewillnothaveasignificantimpactontheconsolidatedfinancialstatements.

FutureminimumrentalpaymentsundernoncancelableoperatingleasesasofDecember31,2015wereasfollows:

Totalrentalexpenseforalloperatingleasesamountedto$14.5million,$16.1millionand$15.8millionfortheyearsendedDecember31,2013,2014and2015,respectively.

Contingencies

InconnectionwiththeCompany'sacquisitionofAcushnetCompany,BeamindemnifiedtheCompanyforcertaintaxrelatedobligationsthatrelatetoperiodsduringwhichFortuneBrands,Inc.ownedAcushnetCompany.AsofDecember31,2015,theCompany'sestimateofitsreceivablefortheseindemnificationsis$9.8million,ofwhich$3.8millionisrecordedinothercurrentassetsand$6.0millionisrecordedinothernoncurrentassetsontheconsolidatedbalancesheet.

Litigation

Nassau Precision

OnSeptember10,2010,NassauPrecisionCastingCo.,Inc.filedapatentinfringementactionagainstAcushnetCompany,CobraGolfCompanyandPumaNorthAmericaintheFederalDistrictCourtfortheEasternDistrictofNewYork,seekingunspecifieddamages.ThelawsuitclaimedthatcertainCobraproductsinfringeclaims1and2ofapatentownedbyNassauPrecision.AcushnetCompanyhadanobligationtodefendandindemnifyCobraandPumainthisactionpursuanttoa

(inthousands) YearendingDecember31, 2016 $ 13,1442017 8,4022018 6,3872019 3,2482020 1,091Thereafter 747Totalminimumrentalpayments $ 33,019

TableofContents

PurchaseAgreementbetweenthoseparties.OnApril17,2013,theDistrictCourtgrantedAcushnetCompany'sMotionforSummaryJudgmentonthegroundsofnoninfringement.NassauPrecisionappealedthedecisiontotheCourtofAppealsfortheFederalCircuit.TheCourtofAppealsupheldtheSummaryJudgmentdecisioninAcushnetCompany'sfavorwithrespecttoclaim2,butreversedtheDistrictCourt'sdecisionwithrespecttoclaim1andremandedthecasetotheDistrictCourtwithfurtherinstructions.OnApril2,2015,theDistrictCourtgrantedAcushnetCompany'sMotionforSummaryJudgmentwithrespecttoclaim1onthegroundsofnon-infringement,whichendedthelitigation.

AdisputehasarisenbetweenAcushnetCompanyandBeamwithrespecttoapproximately$16.6millionofvalue-addedtax("VAT")tradereceivables.ThesereceivableswerereflectedonAcushnetCompany'sconsolidatedbalancesheetatthetimeoftheCompany'sacquisitionofAcushnetCompany.AcushnetCompanybelievesthattheseVATtradereceivablesareassetsoftheCompany;BeamclaimsthatthesearetaxcreditsorrefundsfromtheperiodpriortotheacquisitionofAcushnetCompanywhicharepayabletoBeam,pursuanttothetermsoftheStockPurchaseAgreementthatcoversthesaleofthestockofAcushnetCompany.BeamhaswithheldpaymentsinthisamountwhichtheCompanybelievesarepayabletoAcushnetCompanyinreimbursementofcertainothertaxliabilitieswhichexistedpriortotheacquisitionofAcushnetCompany.OnMarch27,2012,AcushnetCompanyfiledacomplaintseekingreimbursementofthesefundsintheCommonwealthofMassachusettsSuperiorCourtDepartment,BusinessLitigationSectionandthislitigationcontinues.EachpartyfiledMotionsforSummaryJudgment,whichmotionsweredeniedbytheCourtonJuly29,2015.TrialinthismattercommencedonMay31,2016.

Other Litigation

Inadditiontothelawsuitsdescribedabove,theCompanyanditssubsidiariesaredefendantsinlawsuitsassociatedwiththenormalconductoftheirbusinessesandoperations.Itisnotpossibletopredicttheoutcomeofthependingactions,and,aswithanylitigation,itispossiblethatsomeoftheseactionscouldbedecidedunfavorably.Consequently,theCompanyisunabletoestimatetheultimateaggregateamountofmonetaryloss,amountscoveredbyinsuranceorthefinancialimpactthatwillresultfromsuchmattersandhasnotrecordedaliabilityrelatedtopotentiallosses.TheCompanybelievesthattherearemeritoriousdefensestotheseactionsandthattheseactionswillnothaveamaterialadverseeffectontheconsolidatedfinancialstatements.

23.SubsequentEvents

OnJanuary22,2016,theCompany'sboardofdirectorsadoptedtheAcushnetHoldingsCorp.2015OmnibusIncentivePlan("2015Plan")whichprovidesfortheCompanytograntstockoptions,stockappreciationrights,restrictedsharesofcommonstock,restrictedstockunits,andotherstock-basedandcash-basedawardstomembersoftheboardofdirectors,officers,employees,consultantsandadvisorsoftheCompany.The2015PlanisadministeredbytheCompany'sboardofdirectorspriortoaninitialpublicofferingandthecompensationcommitteefollowinganinitialpublicoffering(theboardorcompensationcommittee,asapplicable,the"Administrator").TheAdministratorhastheauthoritytoestablishthetermsandconditionsofanyawardissuedorgrantedunderthe2015Plan.Theexercisepricepershareofstockoptionsmaynotbelessthan100%ofthefairmarketvalueoftheshareof

TableofContents

23.SubsequentEvents(Continued)

commonstockonthedateofthegranttermofthestockoptionmaynotbegreaterthantenyears(exceptforanincentivestockoptionsgrantedtoa10%stockholder,whichshallhaveanexercisepricenolessthan110%ofthefairmarketvalueoftheshareofcommonstockonthedateofthegrantandatermnotgreaterthanfiveyears).Atotalof6,525,000authorizedsharesoftheCompany'scommonstockarereservedforissuanceunderthe2015Plan.OnJune15,2016,theCompany'sboardofdirectorsapprovedagrantofmulti-yearrestrictedstockunits("RSU")andperformancestockunits("PSU")tocertainkeymembersofmanagement.Thegrantsweremade50%inRSUsand50%inPSUs,andrepresentthreeyearsofequitycompensation.One-thirdoftheRSUsvestoneachJanuary1of2017,2018and2019,andthePSUscliff-vestonDecember31,2018,subjecttotheparticipant'scontinuedemploymentwiththeCompanyandtheCompany'slevelofachievementoftheapplicablecumulativeAdjustedEBITDAperformancemetric(asdefinedintheawardagreement)measuredoverthethree-yearperformanceperiod.EachPSUreflectstherighttoreceivebetween0%and200%ofthetargetnumberofsharesbasedontheactualthree-yearcumulativeAdjustedEBITDA.Thedeterminationofthetargetvaluegaveconsiderationtoexecutiveperformance,potentialfuturecontributionsandpeergroupanalysis.Theinitialfairvalueofthegrantwasestimatedat$45.0million.

OnJanuary29,2016,theCompanyreceivedapprovalfromtheholdersofitsoutstandingconvertiblenotesandbondswithcommonstockwarrantstodeferinterestdueonFebruary1,2016intheamountof$15.1millionuntilAugust1,2016andapprovaltowaivethecompoundingofsuchinterest.Inaddition,theCompanyreceivedapprovalfromtheholdersofitsSeriesApreferredstocktowaivethecompoundingofinterestrelatedtoundeclaredandunpaiddividendsuntilAugust1,2016.

OnJanuary29,2016,theCompanyamendeditsworkingcreditfacilityagreement(Canada)arrangedbyWellsFargo,N.A.,CanadianBranchtoextendthematuritydatetoJuly29,2016.

OnFebruary5,2016,theCompanyenteredintoaworkingcapitalfacilityagreementarrangedbyWellsFargoBank,NationalAssociationwhichprovidesforborrowingsupto$30.0million.Theapplicableinterestrateforborrowingsunderthefacilityisdailyone-monthLIBOR.TheworkingcapitalfacilitymaturesonMay31,2016.OnMay18,2016,theCompanyamendeditsworkingcapitalfacilityagreementtoextendthematuritydatetoJuly29,2016.

OnApril27,2016,theCompanyenteredintoanewseniorsecuredcreditfacilitiesagreementarrangedbyWellsFargo,NationalAssociation,whichprovidesfor(i)a$275.0millionmulti-currencyrevolvingcreditfacility,includinga$20.0millionletterofcreditsub-facility,aC$25.0millionsub-facilityforAcushnetCanadaInc.,a£20.0millionsub-facilityforAcushnetEuropeLimitedandanalternativecurrencysublimitof100.0millionforborrowingsinCanadianDollars,Euros,PoundsSterlingandJapaneseYen,(ii)a$375.0milliontermloanAfacility,and(iii)a$100.0milliondelayeddrawtermloanAfacility.Eachcreditfacilitymaturesonthefifthanniversaryoftheinitialfundingunderthecreditfacility.Thecreditagreementallowsfortheincurrenceofadditionaltermloansorincreasestotherevolvingcreditfacilityinanaggregateprincipalamountnottoexceed(i)$200.0millionplus(ii)anunlimitedamountsolongasthenetAverageSecuredLeverageratio(asdefinedinthenewcreditagreement)doesnotexceed2.00:1.00onaproformabasis.Thecreditagreementcontainscustomaryaffirmativeandrestrictivecovenants,including,amongothers,financialcovenantsbasedontheCompany'sleverageandinterestcoverageratios.Thecreditagreementincludescustomaryeventsofdefault,theoccurrenceofwhich,followinganyapplicablecureperiod,wouldpermittheadministrativeagent,onbehalfofthelendersto,amongotherthings,declaretheprincipal,accruedinterestandotherobligationstobeimmediatelydueandpayable.

TableofContents

23.SubsequentEvents(Continued)

ThecreditagreementwassignedandbecameeffectiveonApril27,2016andtheCompanyexpectsinitialfundingunderthecreditagreementtooccuronoraroundJuly29,2016.TheCompanyexpectstousetheproceedsofthetermloanAfacilityandaborrowingundertherevolvingcreditfacilitytorepayamountsoutstandingunderitssecuredfloatingratenotes,itsexistingsecuredrevolvingandtermloanfacility,andcertainothersecuredworkingcapitalcreditfacilitiesandtopayfeesandexpensesrelatedtotheforegoing.ThedelayeddrawtermloanAfacilitywillbeavailableuntilthedatethatisoneyearaftertheinitialfundingdatetomakepaymentsundertheCompany'sEARPlan,asamended.ThecreditagreementcontainsconditionsprecedenttotheCompany'sabilitytoreceivetheproceedsofthetermloanAfacilityandthedelayeddrawtermloanAfacility,includingthatthereshallnothaveoccurredamaterialadverseeffectwithrespecttotheCompany.

OnMay6,2016,theCompanyandeachoftheholdersoftheconvertiblenotesandSeriesApreferredstockenteredintoanagreementrequiringthemandatoryconversionoftheconvertiblenotesandthesharesoftheSeriesApreferredstockintofullypaidandnonassessablesharesoftheCompany'scommonstock.Thisautomaticconversionwilloccurpriortotheclosingofaqualifiedinitialpublicoffering.Uponconversion,anycalculatedfractionalsharesoftheCompany'scommonstockwillbepaidincashtoeachoftheholdersoftheconvertiblenotesandthesharesoftheSeriesApreferredstock.Inaddition,allaccruedbutunpaidinterestontheprincipaloftheconvertiblenotesthroughthelaterofAugust1,2016andtheclosingofaqualifiedinitialpublicofferingwillbepaidtoeachholderoftheconvertiblenotesandallaccruedbutunpaiddividendsonthesharesoftheSeriesApreferredstockthroughthelaterofAugust1,2016andtheclosingofaqualifiedinitialpublicofferingwillbepaidtoeachholderofthesharesoftheSeriesApreferredstock.

OnOctober14,2016,theCompanyeffectedanine-for-onestocksplitofitsissuedandoutstandingsharesofcommonstockandaproportionaladjustmenttotheexistingconversionratiosfortheconvertiblenotes,redeemableconvertiblepreferredstock,andtheexercisepriceforthecommonstockwarrantsandthestrikepriceofstock-basedcompensation.Accordingly,allshareandpershareamountsforallperiodspresentedintheaccompanyingfinancialstatementsandnotestheretohavebeenadjustedretroactively,whereapplicable,toreflectthisstocksplitandadjustmentofthecommonstockwarrantexerciseprice,andconvertiblenotesandredeemableconvertiblepreferredstockconversionratios.

TheCompanyhasevaluatedsubsequenteventsfromthebalancesheetdatethroughJune17,2016,thedateatwhichtheconsolidatedfinancialstatementswereavailabletobeissued,andwithrespecttothestocksplitdescribedabove,throughOctober14,2016,anddeterminedthattherearenoothermaterialitemstodisclose.

TableofContents

CONSOLIDATEDBALANCESHEETS(UNAUDITED)

Theaccompanyingnotesareanintegralpartoftheseunauditedconsolidatedfinancialstatements.

(inthousands,exceptshareandpershareamounts) December31,

2015 June30,2016

ProformaJune30,2016

Assets Currentassets Cash($10,029and$15,064attributabletothevariableinterestentity("VIE")) $ 54,409 $ 75,779 $ 50,752Restrictedcash 4,725 4,920 4,920Accountsreceivable,net 192,384 303,885 303,885Inventories($15,755and$7,258attributabletotheVIE) 326,359 275,043 275,043Otherassets 93,646 87,742 87,742Totalcurrentassets 671,523 747,369 722,342

Property,plantandequipment,net($11,147and$10,857attributabletotheVIE) 254,894 245,416 245,416Goodwill($32,312and$32,312attributabletotheVIE) 181,179 184,419 184,419Identifiableintangibleassets,net 499,494 495,099 495,099Deferredincometaxes 132,265 112,929 112,929Otherassets($2,738and$2,728attributabletotheVIE) 19,618 21,903 21,903

Totalassets $ 1,758,973 $1,807,135 $1,782,108LiabilitiesandEquity Currentliabilities Short-termdebt $ 441,704 $ 422,328 $ 422,328Accountspayable($10,250and$5,890attributabletotheVIE) 89,869 84,521 84,521Payablestorelatedparties 12,570 27,416 2,389Accruedtaxes 29,432 29,639 29,639Accruedcompensationandbenefits($1,035and$615attributabletotheVIE) 111,390 224,147 224,147Accruedexpensesandotherliabilities($4,516and$3,075attributabletotheVIE) 70,626 108,805 108,805Totalcurrentliabilities 755,591 896,856 871,829

Long-termdebtandcapitalleaseobligations 394,511 394,632 32,142Deferredincometaxes 7,112 6,295 6,295Accruedpensionandotherpostretirementbenefits($2,303and$1,787attributabletotheVIE) 119,549 118,693 118,693

Accruedequityappreciationrights 145,384 — —Othernoncurrentliabilities($2,841and$2,884attributabletotheVIE) 12,284 21,247 21,247

Totalliabilities 1,434,431 1,437,723 1,050,206Commitmentsandcontingencies(Note16) SeriesAredeemableconvertiblepreferredstock,$.001parvalue,1,838,027sharesauthorizedatDecember31,2015andJune30,2016;1,838,027sharesissuedandoutstandingatDecember31,2015andJune30,2016actual;liquidationpreferenceof$199,967,266atJune30,2016;nosharesissuedoroutstanding,proformaasofJune30,2016 131,036 131,036 —

Equity Commonstock,$.001parvalue,78,193,494sharesauthorizedatDecember31,2015andJune30,2016;21,821,256sharesissuedandoutstandingatDecember31,2015andJune30,2016actual;70,988,319sharesissuedandoutstanding,proformaasofJune30,2016 22 22 71

Additionalpaid-incapital 309,110 310,074 803,551Accumulatedothercomprehensiveloss,netoftax (67,234) (74,350) (74,350)Retaineddeficit (81,647) (29,578) (29,578)TotalequityattributabletoAcushnetHoldingsCorp. 160,251 206,168 699,694

Noncontrollinginterests 33,255 32,208 32,208Totalequity 193,506 238,376 731,902Totalliabilitiesandequity $ 1,758,973 $1,807,135 $1,782,108

TableofContents

CONSOLIDATEDSTATEMENTSOFOPERATIONS(UNAUDITED)

SixMonthsEndedJune30, (inthousands,exceptshareandpershareamounts) 2015 2016 Netsales $ 862,874 $ 902,995Costofgoodssold 409,929 443,754Grossprofit 452,945 459,241

Operatingexpenses Selling,generalandadministrative 313,007 306,771Researchanddevelopment 22,628 22,823Intangibleamortization 3,313 3,303Restructuringcharges — 642Incomefromoperations 113,997 125,702

Interestexpense,net 30,530 28,404Other(income)expense,net 9,934 3,838Incomebeforeincometaxes 73,533 93,460

Incometaxexpense 36,919 39,438Netincome 36,614 54,022

Less:Netincomeattributabletononcontrollinginterests (3,158) (1,953)NetincomeattributabletoAcushnetHoldingsCorp. 33,456 52,069Accruingofcumulativedividends (6,836) (6,855)Allocationofundistributedearningstopreferredshareholders (12,548) (19,496)Netincomeattributabletocommonshareholders—basic 14,072 25,718Adjustmentstonetincomefordilutivesecurities 12,679 15,700Netincomeattributabletocommonshareholders—diluted $ 26,751 $ 41,418NetincomepercommonshareattributabletoAcushnetHoldingsCorp.: Basic $ 0.76 $ 1.18Diluted $ 0.52 $ 0.76

Weightedaveragenumberofcommonshares: Basic 18,551,790 21,821,256Diluted 51,265,755 54,449,955

ProformanetincomepercommonshareattributabletoAcushnetHoldingsCorp.—basicanddiluted $ 0.86

Proformaweightedaveragenumberofcommonshares: Basic 70,988,319Diluted 70,992,198

TableofContents

CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVEINCOME(UNAUDITED)

SixMonthsEndedJune30, (inthousands) 2015 2016 Netincome $ 36,614 $ 54,022Othercomprehensiveincome(loss) Foreigncurrencytranslationadjustments (6,331) 12,181Foreignexchangederivativeinstruments Unrealizedholdinggains(losses)arisingduringperiod 6,444 (23,625)Reclassificationadjustmentsincludedinnetincome (17,319) (7,757)Taxbenefit 3,008 11,130Foreignexchangederivativeinstruments,net (7,867) (20,252)

Available-for-salesecurities Unrealizedholdinglossesarisingduringperiod (182) (148)Taxbenefit 66 56Available-for-salesecurities,net (116) (92)

Pensionandotherpostretirementbenefitsadjustments Netgain(loss)arisingduringperiod (1,487) 1,173Taxbenefit(expense) 510 (126)Pensionandotherpostretirementbenefitsadjustments,net (977) 1,047Totalothercomprehensiveloss (15,291) (7,116)

Comprehensiveincome 21,323 46,906Less:Comprehensiveincomeattributabletononcontrollinginterests (3,158) (1,953)

ComprehensiveincomeattributabletoAcushnetHoldingsCorp. $ 18,165 $ 44,953

TableofContents

CONSOLIDATEDSTATEMENTSOFCASHFLOWS(UNAUDITED)

SixMonthsEnded

June30, (inthousands) 2015 2016 Cashflowsfromoperatingactivities Netincome $ 36,614 $ 54,022Adjustmentstoreconcilenetincometocashusedinoperatingactivities Depreciationandamortization 21,270 20,550Unrealizedforeignexchangegain(loss) 591 (733)Amortizationofdebtissuancecosts 2,830 2,512Amortizationofdiscountonbondspayable 471 282Changeinfairvalueofcommonstockwarrants 14,778 6,112Share-basedcompensation 1,914 964Lossondisposalsofproperty,plantandequipment 74 66Deferredincometaxes 19,532 29,816Changesinoperatingassetsandliabilities Accountsreceivable (112,857) (102,464)Inventories 21,826 55,875Accountspayable (15,068) (5,598)Accruedtaxes 6,824 (1,816)Accruedexpensesandotherliabilities 2,817 130,873Otherassets (12,360) (3,993)Othernoncurrentliabilities 30,818 (145,828)Interestduetorelatedparties 15,996 14,847Cashflowsprovidedbyoperatingactivities 36,070 55,487

Cashflowsfrominvestingactivities Additionstoproperty,plantandequipment (10,409) (8,116)Changeinrestrictedcash 1,338 (40)

Cashflowsusedininvestingactivities (9,071) (8,156)Cashflowsfromfinancingactivities Increase(decrease)inshort-termborrowings,net (3,076) 5,867Repaymentofseniortermloanfacility (30,000)Debtissuancecosts — (663)Dividendspaidtononcontrollinginterests (1,800) (3,000)

Cashflowsusedinfinancingactivities (4,876) (27,796)Effectofforeignexchangeratechangesoncash (1,144) 1,835

Netincrease(decrease)incash 20,979 21,370Cash,beginningofyear 47,667 54,409Cash,endofperiod $ 68,646 $ 75,779Supplementalinformation Non-cashadditionstoproperty,plantandequipment $ 131 $ 690

TableofContents

CONSOLIDATEDSTATEMENTSOFREDEEMABLECONVERTIBLEPREFERREDSTOCKANDEQUITY(UNAUDITED)

TotalStockholders'

EquityAttributabletoAcushnet

HoldingsCorp.

RedeemableConvertible

PreferredStock

CommonStock

AccumulatedOther

ComprehensiveLoss

AdditionalPaid-inCapital

RetainedDeficit

NoncontrollingInterest

TotalEquity

(inthousands) Shares Amount Shares Amount BalancesatDecember31,2015 1,838$131,036 21,821 $ 22 $ 309,110 $ (67,234)$ (81,647)$ 160,251 $ 33,255 $ 193,506

Netincome — — — — — — 52,069 52,069 1,953 54,022Othercomprehensiveloss — — — — — (7,116) — (7,116) — (7,116)

Stock-basedcompensationexpense — — — — 964 — — 964 — 964

BalancesatJune30,2016 1,838$131,036 21,821 $ 22 $ 310,074 $ (74,350)$ (29,578)$ 206,168 $ 32,208 $ 238,376

TableofContents

NOTESTOUNAUDITEDCONSOLIDATEDFINANCIALSTATEMENTS

1.SummaryofSignificantAccountingPolicies

BasisofPresentation

TheaccompanyingconsolidatedfinancialstatementshavebeenpreparedinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStates(U.S.GAAP)andincludetheaccountsofAcushnetHoldingsCorp.(theCompany),itswhollyownedsubsidiariesandaVIEinwhichtheCompanyistheprimarybeneficiary.Allsignificantintercompanybalancesandtransactionshavebeeneliminatedinconsolidation.

CertaininformationinfootnotedisclosuresnormallyincludedinannualfinancialstatementshasbeencondensedoromittedfortheinterimperiodspresentedinaccordancewiththerulesandregulationsoftheSecuritiesandExchangeCommissionandU.S.GAAP.Intheopinionofmanagement,thefinancialstatementscontainallnormalandrecurringadjustmentsnecessarytostatefairlythefinancialpositionandresultsofoperationsoftheCompany.TheconsolidatedbalancesheetasofDecember31,2015isderivedfromtheauditedconsolidatedbalancesheetfortheyearthenended.TheresultsofoperationsforthesixmonthsendedJune30,2016arenotnecessarilyindicativeofresultstobeexpectedforthefullyearendedDecember31,2016,norwerethoseofthecomparable2015periodrepresentativeofthoseactuallyexperiencedforthefullyearendedDecember31,2015.TheseinterimconsolidatedfinancialstatementsshouldbereadinconjunctionwiththeconsolidatedfinancialstatementsfortheyearendedDecember31,2015andtherelatednotestheretoincludedelsewhereinthisprospectus.

UseofEstimates

ThepreparationoftheCompany'sconsolidatedfinancialstatementsinaccordancewithU.S.GAAPrequiresmanagementtomakeestimatesandjudgmentsthataffectreportedamountsofassets,liabilities,stockholders'equity,netsalesandexpenses,andthedisclosureofcontingentassetsandliabilitiesinitsconsolidatedfinancialstatements.Actualresultscoulddifferfromthoseestimates.

VariableInterestEntities

VIEsareentitiesthat,bydesign,either(i)lacksufficientequitytopermittheentitytofinanceitsactivitiesindependently,or(ii)haveequityholdersthatdonothavethepowertodirecttheactivitiesoftheentitythatmostsignificantlyimpactitseconomicperformance,theobligationtoabsorbtheentity'sexpectedlosses,ortherighttoreceivetheentity'sexpectedresidualreturns.TheCompanyconsolidatesaVIEwhenitistheprimarybeneficiary,whichisthepartythathasboth(i)thepowertodirecttheactivitiesthatmostsignificantlyimpacttheVIE'seconomicperformanceand(ii)throughitsinterestsintheVIE,theobligationtoabsorbexpectedlossesortherighttoreceiveexpectedbenefitsfromtheVIEthatcouldpotentiallybesignificanttotheVIE.

TheCompanyconsolidatestheaccountsofAcushnetLionscoreLimited,aVIEwhichis40%ownedbytheCompany.ThesolepurposeoftheVIEistomanufacturetheCompany'sgolffootwearandassuch,theCompanyisdeemedtobetheprimarybeneficiaryasdefinedbyAccountingStandardsCodification("ASC")810.TheCompanyhaspresentedseparatelyonitsconsolidatedbalancesheets,totheextentmaterial,theassetsofitsconsolidatedVIEthatcanonlybeusedtosettlespecificobligationsofitsconsolidatedVIEandtheliabilitiesofitsconsolidatedVIEforwhichcreditorsdonothaverecoursetoitsgeneralcredit.ThegeneralcreditorsoftheVIEdonothaverecoursetotheCompany.CertaindirectorsofthenoncontrollingentitieshaveguaranteedthecreditlinesoftheVIE,forwhichtherewerenooutstandingborrowingsasofDecember31,2015andJune30,2016.In

TableofContents

NOTESTOUNAUDITEDCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

addition,pursuanttothetermsoftheagreementgoverningtheVIE,theCompanyisnotrequiredtoprovidefinancialsupporttotheVIE.

UnauditedProFormaFinancialInformation

TheaccompanyingunauditedproformaconsolidatedbalancesheetasofJune30,2016hasbeenpreparedtogiveeffect,priortotheclosingofaqualifiedinitialpublicoffering,totheautomaticconversionofalloftheoutstandingconvertiblenotesintoanaggregateof32,624,820sharesofcommonstock,thepaymentincashofaccruedandunpaidinterestof$25.0millionontheconvertiblenotesandtheautomaticconversionofalloftheoutstandingsharesoftheSeriesAredeemableconvertiblepreferredstockintoanaggregateof16,542,243sharesofcommonstockasiftheproposedinitialpublicofferinghadoccurredonJune30,2016.

Intheaccompanyingconsolidatedstatementsofoperations,unauditedproformabasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.forthesixmonthsendedJune30,2016hasbeenpreparedtogiveeffect,priortotheclosingofaqualifiedinitialpublicoffering,totheautomaticconversionofalltheoutstandingconvertiblenotesintosharesofcommonstockandtheautomaticconversionofalltheoutstandingsharesofSeriesAredeemableconvertiblepreferredstockintosharesofcommonstockasiftheproposedinitialpublicofferinghadoccurredonthelaterofJanuary1,2015ortheissuancedate.

AccountsReceivable

AsofDecember31,2015andJune30,2016,theallowancefordoubtfulaccountswas$12.4millionand$13.8million,respectively.

RecentlyAdoptedAccountingStandards

Fair Value Measurement

InMay2015,theFASBissuedASU2015-07,"Fair Value Measurement: Disclosures for Investments in Certain Entities that Calculate Net Asset Value perShare (or Its Equivalent) ."UnderASU2015-07investmentsforwhichfairvalueismeasuredatnetassetvaluepershare(oritsequivalent)usingthepracticalexpedientshouldnotbecategorizedinthefairvaluehierarchy.ASU2015-07iseffectiveforfiscalyearsbeginningafterDecember15,2015,includinginterimperiodswithinthosefiscalyears.TheCompanyadoptedtheprovisionsofthisstandardduringthesixmonthsendedJune30,2016.Theretrospectiveadoptionofthisstandarddidnothaveasignificantimpactontheconsolidatedfinancialstatements.

Intangibles—Goodwill and Other—Internal-Use Software

InApril2015,theFASBissuedASU2015-05,"Intangibles—Goodwill and Other—Internal-Use Software: Customer's Accounting for Fees Paid in a CloudComputing Arrangement ."ASU2015-05providesguidancetocustomersaboutwhetheracloudcomputingarrangementincludesasoftwarelicense.Ifacloudcomputingarrangementincludesasoftwarelicense,thenthecustomershouldaccountforthesoftwarelicenseelementofthearrangementconsistentwiththeacquisitionofothersoftwarelicenses.Ifacloudcomputingarrangementdoesnotincludeasoftwarelicense,thecustomershouldaccountforthearrangementasaservicecontract.ASU2015-05iseffectiveforannualperiodsbeginningafterDecember15,2015,includinginterimperiodswithinthosefiscalyears.TheCompany

TableofContents

prospectivelyadoptedtheprovisionsofthisstandardduringthesixmonthsendedJune30,2016.Theadoptionofthisstandarddidnothaveasignificantimpactontheconsolidatedfinancialstatements.

Consolidation: Amendments to the Consolidation Analysis

InFebruary2015,theFASBissuedASU2015-02,"Consolidation: Amendments to Consolidation Analysis ."ASU2015-02placesmoreemphasisonriskoflosswhendeterminingcontrollinginterest,reducesthefrequencyoftheapplicationofrelated-partyguidancewhendeterminingcontrollingfinancialinterestinaVIEandchangesconsolidationconclusionsforcompaniesinseveralindustries.ASU2015-02iseffectiveforreportingperiodsbeginningafterDecember15,2015,withearlyadoptionpermitted.TheCompanyretrospectivelyadoptedtheprovisionsofthisstandardduringthesixmonthsendedJune30,2016.Theretrospectiveadoptionofthisstandarddidnothaveasignificantimpactontheconsolidatedfinancialstatements.

RecentlyIssuedAccountingStandards

Statement of Cash Flows

InAugust2016,theFASBissuedASU2016-15,"Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments "toaddressdiversityinpracticeinhowcertaincashreceiptsandcashpaymentsarepresentedandclassifiedinthestatementofcashflows.TheguidanceiseffectiveforfinancialstatementsissuedforannualperiodsbeginningafterDecember15,2017,includinginterimperiodswithinthosefiscalyears.TheCompanyiscurrentlyevaluatingthisstandardtodeterminetheimpactofitsadoptionontheconsolidatedfinancialstatements.

Revenue from Contracts with Customers

InMay2016,theFASBissuedASU2016-12,"Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients." ASU2016-12addressesnarrow-scopeimprovementstotheguidanceoncollectability,noncashconsiderationandcompletedcontractsattransitionandprovidesapracticalexpedientforcontractmodificationsandanaccountingpolicyelectionrelatedtothepresentationofsalestaxesandothersimilartaxescollectedfromcustomers.InMarch2016,theFASBissuedASU2016-08,"Revenue from Contracts with Customers: Principal versus Agent Considerations "clarifyingtheimplementationguidanceonprincipalversusagentconsiderations.InAugust2015,theFASBissuedASU2015-14,"Revenue from Contracts with Customers:Deferral of the Effective Date ."deferringtheadoptionofpreviouslyissuedguidancepublishedinMay2014,ASU2014-09,"Revenue from Contracts withCustomers." ASU2014-09amendsrevenuerecognitionguidanceandrequiresmoredetaileddisclosurestoenableusersoffinancialstatementstounderstandthenature,amount,timinganduncertaintyofrevenueandcashflowsarisingfromcontractswithcustomers.ASU2016-08and2015-14areeffectiveforreportingperiodsbeginningafterDecember15,2017,includinginterimperiodswithinthosefiscalyears.Thenewstandardpermitstheuseofeithertheretrospectiveormodifiedretrospectiveapproachonadoption.TheCompanyiscurrentlyevaluatingthisstandardtodeterminetheimpactofitsadoptionontheconsolidatedfinancialstatements.

Compensation—Stock Compensation

InMarch2016,theFASBissuedASU2016-09,"Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting" tosimplifyaccountingforemployeeshare-basedpaymenttransactions,includingtheincometaxconsequences,classificationofawardsaseither

TableofContents

equityorliabilitiesandclassificationonthestatementofcashflows.TheguidanceiseffectiveforfinancialstatementsissuedforannualperiodsbeginningafterDecember15,2016,includinginterimperiodswithinthosefiscalyears.TheCompanyiscurrentlyevaluatingthisstandardtodeterminetheimpactofitsadoptionontheconsolidatedfinancialstatements.

Leases

InFebruary2016,theFASBissuedASU2016-02,"Leases",whichwillrequirelesseestorecognizeright-of-useassetsandleaseliabilitiesforleaseswhichwereformerlyclassifiedasoperatingleases.TheguidanceiseffectiveforfinancialstatementsissuedforannualperiodsbeginningafterDecember15,2018,includinginterimperiodswithinthosefiscalyears.TheCompanyiscurrentlyevaluatingthisstandardtodeterminetheimpactofitsadoptionontheconsolidatedfinancialstatements.

Presentation of Financial Statements—Going Concern

InAugust2014,theFASBissuedASU2014-15,"Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity'sAbility to Continue as a Going Concern. "ASU2014-15requiresmanagementtoevaluatewhetherthereissubstantialdoubtaboutacompany'sabilitytocontinueasagoingconcernwithinoneyearfromthedatethefinancialstatementsareissuedandtoproviderelatedfootnotedisclosuresasappropriate.ASU2014-15iseffectiveforannualperiodsendingafterDecember15,2016,andinterimperiodswithinannualperiodsbeginningafterDecember15,2016.Earlyapplicationispermittedforannualorinterimreportingperiodsforwhichthefinancialstatementshavenotpreviouslybeenissued.Theadoptionofthisstandardisnotexpectedtohaveasignificantimpactontheconsolidatedfinancialstatements.

2.Inventories

Inventoriesarevaluedatthelowerofcostandnetrealizablevalue.Costisdeterminedusingthefirst-in,first-outinventorymethod.Theinventorybalance,whichincludesmaterial,laborandmanufacturingoverheadcosts,isrecordednetofanestimatedallowanceforobsoleteorslowmovinginventory.

Thecomponentsofinventorieswereasfollows:

3.ProductWarranty

TheCompanyhasdefinedwarrantiesrangingfromonetotwoyears.ProductscoveredbythedefinedwarrantypoliciesincludeallTitleistgolfproducts,FootJoygolfshoes,andFootJoygolfouterwear.Theestimatedcostofsatisfyingfuturewarrantyclaimsisaccruedatthetimethesaleisrecorded.Inestimatingfuturewarrantyobligations,theCompanyconsidersvariousfactors,includingits

(inthousands) December31,

2015 June30,2016

Rawmaterialsandsupplies $ 63,119 $ 53,044Work-in-process 18,210 16,688Finishedgoods 245,030 205,311Inventories $ 326,359 $ 275,043

TableofContents

3.ProductWarranty(Continued)

warrantypoliciesandpractices,thehistoricalfrequencyofclaims,andthecosttoreplaceorrepairproductsunderwarranty.

TheactivityrelatedtotheCompany'swarrantyobligationforaccruedwarrantyexpensewasasfollows:

4.RelatedPartyTransactions

TheCompanyhashistoricallyincurredinterestexpensepayabletorelatedpartiesonitsoutstandingconvertiblenotesandbondswithcommonstockwarrants(Note5).Relatedpartyinterestexpensetotaled$16.5millionand$15.1millionforthesixmonthsendedJune30,2015and2016,respectively.

5.DebtandFinancingArrangements

TheCompany'sdebtandcapitalleaseobligationswereasfollows:

Thesecuredfloatingratenotesarenetofdebtissuancecostsof$2.2millionand$0.4millionasofDecember31,2015andJune30,2016,respectively.

SeniorSecuredCreditFacility

OnApril27,2016,theCompanyenteredintoanewseniorsecuredcreditfacilitiesagreementarrangedbyWellsFargo,NationalAssociationwhichprovidesfor(i)a$275.0millionmulti-currency

SixMonthsEnded

June30, (inthousands) 2015 2016 Balanceatbeginningofperiod $ 2,989 $ 3,345Provision 2,624 2,798Claimspaid/costsincurred (2,017) (2,374)Foreigncurrencytranslation (20) 15Balanceatendofperiod $ 3,576 $ 3,784

2015 June30,2016

Securedfloatingratenotes $ 372,804 $ 374,582Convertiblenotes 362,490 362,490Bondswithcommonstockwarrants 30,540 30,822Seniortermloanfacility 29,836 —Revolvingcreditfacility 24,000 —Lineofcreditfacility — 20,000Othershort-termborrowings 15,064 27,745Capitalleaseobligations 1,481 1,321Total 836,215 816,960Less:Short-termdebt 441,704 422,328Totallong-termdebtandcapitalleaseobligations $ 394,511 $ 394,632

TableofContents

revolvingcreditfacility,includinga$20.0millionletterofcreditsub-facility,aC$25.0millionsub-facilityforAcushnetCanada,Inc.,a£20.0millionsub-facilityforAcushnetEuropeLimitedandanalternativecurrencysublimitof100.0millionforborrowingsinCanadianDollars,Euros,PoundsSterlingandJapaneseYen,(ii)a$375.0milliontermloanAfacility,and(iii)a$100.0milliondelayeddrawtermloanAfacility.EachcreditfacilitymaturesonJuly28,2021.Thecreditagreementallowsfortheincurrenceofadditionaltermloansorincreasesintherevolvingcreditfacilityinanaggregateprincipalamountnottoexceed(i)$200.0millionplus(ii)anunlimitedamountsolongasthenetaveragesecuredleverageratio(asdefinedinthecreditagreement)doesnotexceed2.00:1.00onaproformabasis.TheapplicableinterestrateforborrowingsundertheseniorsecuredcreditfacilitiesisLIBORplusamarginrangingfrom1.25%to2.00%dependingontheNetAverageTotalLeverageRatioasdefinedinthecreditagreement.

Thecreditagreementcontainscustomaryaffirmativeandrestrictivecovenants,including,amongothers,financialcovenantsbasedontheCompany'sleverageandinterestcoverageratios.Thecreditagreementincludescustomaryeventsofdefault,theoccurrenceofwhich,followinganyapplicablecureperiod,wouldpermitthelendersto,amongotherthings,declaretheprincipal,accruedinterestandotherobligationstobeimmediatelydueandpayable.

ThecreditagreementwassignedandbecameeffectiveonApril27,2016andinitialfundingunderthecreditagreementoccurredonJuly28,2016.Theproceedsofthe$375.0milliontermloanAfacility,borrowingsofC$4.0million(equivalenttoapproximately$3.0million)underthenewrevolvingcreditfacilityandcashonhandof$23.6millionwereusedtorepayallamountsoutstandingunderthesecuredfloatingratenotesandcertainformerworkingcreditfacilities.Thesecuredfloatingratenotes,certainformerworkingcreditfacilitiesandtheformerseniorrevolvingcreditfacilitywereterminated.ThedelayeddrawtermloanAfacilitywillbeavailableuntilthedatethatisoneyearaftertheclosingdatetomakepaymentsundertheCompany'sEARPlan,asamended.

ConvertibleNotes

In2011and2012,theCompanyissuedconvertiblenoteswithanaggregateprincipalamountof$362.5milliontoshareholders.Theconvertiblenotesbearinterestatarateof7.5%perannum,whichispayableincashsemi-annuallyinarrearsonFebruary1andAugust1.ThenotesmatureupontheearlierofJuly29,2021ortheelectionoftheholderuponachangeincontrol,asdefinedinthesecuritiespurchaseagreementsgoverningthenotes.Amountsdueundertheconvertiblenotescanonlyberepaiduponmaturityoruponachangeincontrol.

OnMarch11,2013,theCompanyreceivedapprovalfromtheholdersoftheconvertiblenotestodeferanyinterestpaymentsdueafterAugust1,2013andpriortoFebruary1,2016pursuanttothecovenantsimposedbythesecuredfloatingratenotesandtheseniorrevolvingandtermloanfacilities.

ThenotesareconvertibleattheoptionoftheholderatanytimepriortomaturityintoanumberofsharesoftheCompany'scommonstockdeterminedbydividingtheaggregateoutstandingunpaidprincipalamountofthenotebytheconversionpriceof$11.11pershare.Theconversionpriceissubjecttoadjustmentifadditionalsharesofcommonstockaresoldsubsequenttotheissuanceoftheconvertiblenotesatapricepercommonsharethatislowerthan$11.11pershareoruponasubdivisionoftheoutstandingsharesoftheCompany'scommonstock.Transferofthenotestoanyparty,includinganaffiliateofthenoteholder,requirespriorwrittenconsentoftheothernoteholdersandFilaKoreaLtd.pertheShareholderAgreement.

TableofContents

OnMay6,2016,theCompanyandeachoftheholdersoftheconvertiblenotesenteredintoanagreementrequiringthemandatoryconversionoftheconvertiblenotesintofullypaidandnonassessablesharesoftheCompany'scommonstock.Thisautomaticconversionwilloccurpriortotheclosingofaqualifiedinitialpublicoffering.Uponconversion,anycalculatedfractionalsharesoftheCompany'scommonstockwillbepaidincashtoeachoftheholdersoftheconvertiblenotes.Inaddition,allaccruedbutunpaidinterestontheprincipaloftheconvertiblenoteswillbepaidtoeachholderoftheconvertiblenotes.

TheCompanyrecordedinterestexpenserelatedtotheconvertiblenotesof$13.5millionduringthesixmonthsendedJune30,2015and2016,respectively.

BondswithCommonStockWarrants

In2011and2012,theCompanyissuedbondswithanaggregateprincipalamountof$172.5milliontoshareholders.Thebondsbearinterestatarateof7.5%perannum,whichispayableincashsemi-annuallyinarrearsonFebruary1andAugust1.ThebondsmatureupontheearlierofJuly29,2021ortheelectionoftheholderuponachangeofcontrol,asdefinedinthesecuritiespurchaseagreementgoverningthebonds.Amountsdueunderthebondscanonlyberepaiduponmaturity,achangeofcontrol,aholderelectingtoexercisecommonstockwarrantsbynetsettlingtheirbondsoranexerciseofcommonstockwarrantsbyFilaKoreaLtd.

Inconnectionwiththeissuanceofthesebonds,theCompanyissuedcommonstockwarrantsforthepurchaseof15,526,431sharesoftheCompany'scommonstock,atanexercisepriceof$11.11pershare.Theexercisepriceissubjecttoadjustmentifadditionalsharesofcommonstockaresoldsubsequenttotheissuanceofthebondsatapricepercommonsharethatislowerthan$11.11pershareoruponasubdivisionoftheoutstandingsharesoftheCompany'scommonstock.Thecommonstockwarrantexercisepricecanbesettledwithcashorthroughtenderofanaggregateoutstandingprincipalamountofthebondsandaccruedbutunpaidinterestequaltotheexercisepriceofthecommonstockwarrants.

Adiscountof$19.9millionrelatingtotheissuance-datefairvalueofthecommonstockwarrantswasrecordedontheissuancedateofthebondsandisbeingaccretedtointerestexpenseuntilthematuritydateofthebonds.Theunamortizeddiscountwas$4.0millionand$3.7millionasofDecember31,2015andJune30,2016,respectively.

OnMarch11,2013,theCompanyreceivedapprovalfromtheholdersofthebondstodeferanyinterestpaymentsdueafterAugust1,2013andpriortoFebruary1,2016pursuanttothecovenantsimposedbythesecuredfloatingratenotesandtheseniorrevolvingandtermloanfacilities.

ThecommonstockwarrantsaredetachableandtransferrablebytheholdersonlytoFilaKoreaLtd.oritsdesigneeatapriceequaltotheinterestaccruedontheunderlyingbondsattherateof4.0%perannumcalculatedonanannualcompoundedbasis.TheshareholdersagreementprovidesFilaKoreaLtd.withacalloptiontopurchasealloftheoutstandingcommonstockwarrantsheldbyholdersofthebondsinannualinstallmentsof3,105,288commonstockwarrantsoverafive-yearperiodbeginningJuly29,2012.FilaKoreaLtd.mustexercisethecommonstockwarrantswithin10daysofthetransfer.TheexerciseofthecommonstockwarrantsbyFilaKoreaLtd.triggerstheCompanytoredeemaproratashareofthebondspayablebyusingtheproceedsreceivedfromtheexerciseofthecommonstockwarrantsbyFilaKoreaLtd.

TableofContents

DuringthesixmonthsendedJune30,2015and2016,nowarrantstopurchasetheCompany'scommonstockwereexercised.InJuly2016,FilaKoreaLtd.exerciseditsannualcalloptiontopurchase3,105,279commonstockwarrantsheldbytheholdersofthebondsandexercisedsuchwarrantsattheexercisepriceof$11.11pershare.ThisresultedinproceedstotheCompanyof$34.5millionwhichtheCompanyusedtorepaytheoutstandingindebtednessunderthebondsof$34.5million.

TheCompanyrecordedinterestexpenserelatedtothebonds,includingtheamortizationofthediscount,of$3.0millionand$1.6millionduringthesixmonthsendedJune30,2015and2016,respectively.

SecuredFloatingRateNotes

InOctober2011,theCompanyissuedsecuredfloatingratenoteswithKoreaDevelopmentBankinanaggregateprincipalamountof$500.0million,whichmatureonJuly29,2016.Thenotesbearinterestatarateequaltothree-monthLIBORplusamarginof3.75%,whichisrequiredtobepaidquarterlyinarrearsonJanuary31,April30,July31andOctober31.ThenoteswereissuedinseparateclasseswithmaturitydatesrangingfromOctober2013toJuly2016.PursuanttoanamendedandrestatedpledgeandsecurityagreementdatedOctober31,2011,thesecuredfloatingratenotesaresecuredbycertainassets,includinginventory,accountsreceivable,fixedassetsandintangibleassetsoftheCompany,andasecondprioritysecurityinterestinthesharesofcertainFilaKoreaLtd.entities,trademarksandbankaccounts.

InOctober2013,theCompanyissuedsecuredfloatingratenoteswithKoreaDevelopmentBankinanaggregateprincipalamountof$125.0million,whichmatureonJuly29,2016.Proceedsfromtheissuanceofthenoteswereused,alongwithexistingcashonhand,torepay$150.0millionofthesecuredfloatingratenotesissuedinOctober2011.Thenotesbearinterestatarateequaltothree-monthLIBORplusamarginof3.75%,whichisrequiredtobepaidquarterlyinarrearsonJanuary31,April30,July31andOctober31.PursuanttoanamendedandrestatedpledgeandsecurityagreementdatedOctober31,2013,thesecuredfloatingratenotesaresecuredbycertainassets,includinginventory,accountsreceivable,fixedassetsandintangibleassetsoftheCompany,andasecondprioritysecurityinterestinthesharesofcertainFilaKoreaLtd.entities,trademarksandbankaccounts.

Thesecuredfloatingratenotesagreementscontaincustomarynegativecovenants,subjecttocertainexceptions,includinglimitationson:liens;financialindebtedness;mergers,acquisitionsandjointventures;assetsales,dividendsanddistributionsandrepurchaseoftheCompany'scapitalsecurities;transactionswithaffiliates;andchangesintheCompany'slinesofbusiness.Theagreementalsocontainsasubjectiveaccelerationclause.ThesecuredfloatingratenotesagreementsrequiretheCompanytocomplyonanannualbasiswithaconsolidatedleverageratio.Inaddition,thesecuredfloatingratenotesagreementscontaincertaincustomaryeventsofdefault.AsofJune30,2016,theCompanywasincompliancewithallcovenants.

TheCompanyincurred$13.2millionofissuancecostsinconnectionwiththeoriginalissuanceof$500.0millionsecuredfloatingratenotes.Inaddition,theCompanyincurred$3.3millionofissuancecostsinconnectionwiththeissuanceof$125.0millionsecuredfloatingratenotesduringtheyearendedDecember31,2013.Ofthe$3.3million,$1.0millionwasimmediatelyrecordedasinterestexpenseand$2.3millionwascapitalizedasdebtissuancecosts.

Therewereoutstandingborrowingsunderthesecuredfloatingratenotesof$375.0millionasofDecember31,2015andJune30,2016.OnJuly28,2016,theoutstandingborrowingsunderthesecured

TableofContents

floatingratenoteswererepaidinfullusingtheproceedsfromtheseniorsecuredcreditfacilityandthesecuredfloatingratenoteswereterminated.

AsofDecember31,2015andJune30,2016,theinterestrateapplicabletotheoutstandingborrowingsunderthesecuredfloatingratenoteswas4.07%and4.39%,respectively.TheCompanyrecordedinterestexpenserelatedtothesecuredfloatingratenotes,includingtheamortizationofdebtissuancecosts,of$10.4millionand$10.2millionduringthesixmonthsendedJune30,2015and2016,respectively.

SeniorRevolvingandTermLoanFacilities

InJuly2011,theCompanyenteredintoaseniorrevolvingfacilitiesagreementwithKoreaDevelopmentBank("SeniorFacilityAgreement"),whichprovidedforborrowingsunderarevolvingcreditfacilityofupto$50.0milliontobeusedforgeneralcorporatepurposes("SeniorRevolvingFacility").TheapplicableinterestrateforborrowingsundertheSeniorRevolvingFacilityisLIBORplusamarginof3.25%.TheSeniorFacilityAgreementrequiresacommitmentfeeof0.3%basedontheaveragedailyunusedportionofthefacility.OnFebruary12,2014,theCompanyamendeditsSeniorFacilityAgreementandsimultaneouslyexecutedajoinderagreementwithWellsFargoN.A.toincreasetheborrowingcapacityundertheSeniorRevolvingFacilityto$75.0million.

OnDecember24,2014,theCompanyfurtheramendedtheSeniorFacilityAgreementtoincreasetheborrowingcapacityundertheSeniorRevolvingFacilityto$95.0million,whichmaturedonJuly29,2016.ThisamendmentalsoprovidedforborrowingsunderanewseniortermloanagreementwithKoreaDevelopmentBankof$30.0million("SeniorTermLoan"),whichmaturedonJuly29,2016.TheapplicableinterestrateforborrowingsundertheSeniorTermLoanisthree-monthLIBORplusamarginof2.63%,andisincreasedforanyrequiredwithholdingtaxes.TheSeniorFacilityAgreementrequiresacommitmentfeeof0.3%basedontheaveragedailyunusedportionofthetermloan.Uponentryintotheamendment,theCompanyimmediatelyborrowedtheentire$30.0millionundertheSeniorTermLoan.

CollateralizationofborrowingsundertheSeniorFacilityAgreementisgovernedbythetermsofanamendedandrestatedpledgeandsecurityagreement.Pursuanttotheagreement,borrowingsundertheSeniorFacilityAgreementaresecuredbycertainassets,includinginventory,accountsreceivable,fixedassetsandintangibleassetsoftheCompany,andbyasecondprioritysecurityinterestinthesharesofcertainFilaKoreaLtd.entities,trademarksandbankaccounts.

TheSeniorFacilityAgreementcontainscustomarynegativecovenants,subjecttocertainexceptions,includinglimitationson:liens;financialindebtedness;mergers,acquisitionsandjointventures;assetsales,dividendsanddistributionsandrepurchaseoftheCompany'scapitalsecurities;transactionswithaffiliates;andchangesintheCompany'slinesofbusiness.Theagreementalsocontainsasubjectiveaccelerationclause.TheSeniorFacilityAgreementrequirestheCompanytocomplyonanannualbasiswithaconsolidatedleverageratio,asdefinedintheagreement.Inaddition,theSeniorFacilityAgreementcontainscertaincustomaryeventsofdefault.AsofJune30,2016,theCompanywasincompliancewithallcovenants.

TherewerenooutstandingborrowingsundertheSeniorRevolvingFacilityasofDecember31,2015orJune30,2016.TheCompanyrecordedinterestexpenserelatedtotheSeniorRevolvingFacility,includingunusedcommitmentfees,of$0.6millionand$0.7millionduringthesixmonthsendedJune30,2015and2016,respectively.

TableofContents

TherewereoutstandingborrowingsundertheSeniorTermLoanof$30.0millionasofDecember31,2015.OnJune30,2016,theCompanyrepaidallamountsoutstandingundertheSeniorTermLoanfacilityandthefacilitywasterminated.AsofDecember31,2015,theinterestrateapplicabletotheoutstandingborrowingsundertheSeniorTermLoanfacilitywas3.26%.TheCompanyrecordedinterestexpenserelatedtotheSeniorTermLoanof$0.7millionduringthesixmonthsendedJune30,2015and2016,respectively.

LineofCreditFacility

OnFebruary5,2016,theCompanyenteredintoaworkingcapitalfacilityagreementarrangedbyWellsFargoBank,NationalAssociationwhichprovidesforborrowingsupto$30.0million.Theapplicableinterestrateforborrowingsunderthefacilityisdailyone-monthLIBOR.Thefacilityrequiresacommitmentfeeequalto0.35%oftheunusedportionofthefacilityasoftheprecedingfiscalquarter.

TheworkingcapitalfacilityhadanoriginalmaturitydateofMay31,2016,butwasamendedonMay18,2016toextendthematuritydatetoJuly29,2016.Therewereoutstandingborrowingsundertheworkingcapitalfacilityof$20.0millionasofJune30,2016andtheinterestrateapplicabletotheoutstandingborrowingswas2.94%.

WorkingCreditFacility(Canada)

InFebruary2013,theCompanyenteredintoaworkingcreditfacilityagreementarrangedbyWellsFargoN.A.,CanadianBranch,whichprovidesforborrowingsofuptothelesserof(a)C$25millionor(b)thesumof80%ofeligibleaccountsreceivableand60%ofeligibleinventory.Theworkingcreditfacility,asamended,maturedonJuly29,2016.TheapplicableinterestrateforborrowingsunderthefacilityforCanadiandollarborrowingsisCDORplusamarginof2.0%orCanadianPrimeRateandforU.S.dollarborrowingsisLIBORplusamarginof2.0%orU.S.PrimeRate.Thefacilityrequiresacommitmentfeeequalto0.25%oftheuncancelledandunutilizedportionofthefacilityasoftheprecedingfiscalquarter.

Theworkingcreditfacilityissecuredbytheaccountsreceivable,inventoryandcashcollectionsofAcushnetCanada,awhollyownedsubsidiaryoftheCompany.TheworkingcreditfacilityagreementrequirestheCompanytocomplywithcertainfinancialcovenantsandcontainscustomarynegativecovenants,subjecttocertainexceptions,includinglimitationsandrestrictionsondispositions,liens,dividends,debt,mergers,transactionswithaffiliatesandchangesintheCompany'slinesofbusiness.Inaddition,theworkingcreditfacilityagreementcontainscertaincustomaryeventsofdefault.AsofJune30,2016,theCompanywasincompliancewithallcovenants.

Therewerenooutstandingborrowingsundertheworkingcreditfacility(Canada)asofDecember31,2015andoutstandingborrowingsof$7.8millionasofJune30,2016.OnJuly28,2016,theoutstandingborrowingswererepaidusingtheproceedsfromtheseniorsecuredcreditfacilityandcashonhandandtheworkingcreditfacility(Canada)wasterminated.

TheCompanyrecordedinterestexpenserelatedtotheworkingcreditfacility(Canada),includingunusedcommitmentfees,of$0.2millionduringthesixmonthsendedJune30,2015and2016,respectively.

TableofContents

WorkingCreditFacility(Europe)

InApril2012,theCompanyenteredintoaworkingcreditfacilityagreementarrangedbyWellsFargoCapitalFinance(UK)Limited,whichprovidesforborrowingsofuptothelesserof(a)£30.0millionor(b)thesumof85%ofeligibleaccountsreceivableand65%ofeligibleinventory,ofwhich£5.0millioncanbeusedforlettersofcredit.TheworkingcreditfacilitymaturesonApril4,2017.TheapplicableinterestrateforborrowingsunderthefacilityisLIBORplusamarginof3.0%.Thefacilityincludesacommitmentfeeof0.375%ontheaveragedailyunusedportionofthefacility.Theworkingcreditfacilityissecuredbytheaccountsreceivable,inventoryandcashcollectionsofAcushnetEuropeLimited,awhollyownedsubsidiaryoftheCompany.

TheworkingcreditfacilityagreementrequirestheCompanytocomplywithcertainfinancialcovenantsandcontainscustomarynegativecovenants,subjecttocertainexceptions,includinglimitationson:liens;financialindebtedness;mergersandacquisitions;assetsales,dividendsanddistributions:transactionswithaffiliates;andchangesintheCompany'slinesofbusiness.Inaddition,theworkingcreditfacilityagreementcontainscertaincustomaryeventsofdefault.AsofJune30,2016,theCompanywasincompliancewithallcovenants.

Therewerenooutstandingborrowingsundertheworkingcreditfacility(Europe)asofDecember31,2015andoutstandingborrowingsof$12.3millionasofJune30,2016.OnJuly28,2016,theoutstandingborrowingswererepaidusingcashonhandandtheworkingcreditfacility(Europe)wasterminated.

TheCompanyrecordedinterestexpenserelatedtotheworkingcreditfacility(Europe),includingunusedcommitmentfees,of$0.4millionand$0.5millionduringthesixmonthsendedJune30,2015and2016,respectively.

6.DerivativeFinancialInstruments

CommonStockWarrants

TheCompanyclassifieswarrantstopurchasecommonstockasaliabilityonitsconsolidatedbalancesheetasthewarrantsarefree-standingfinancialinstrumentsthatmayresultintheissuanceofavariablenumberoftheCompany'scommonshares.Thewarrantswereinitiallyrecordedatfairvalueongrantdate,andaresubsequentlyre-measuredtofairvalueateachreportingdate.TheCompanywillcontinuetoadjusttheliabilityuntiltheearlierofexerciseofthewarrantsorexpirationofthewarrantsoccurs.Commonstockwarrantsarerecordedatfairvalue(Note7)andincludedinaccruedexpensesandotherliabilitiesontheconsolidatedbalancesheet.Changesinthefairvalueofthecommonstockwarrantsarerecognizedasother(income)expense,netontheconsolidatedstatementofoperations.

OnJuly29,2011,theCompanyissuedbondsintheaggregateprincipalamountof$168.0millionandcommonstockwarrantstopurchaseanaggregateof15,120,000sharesoftheCompany'scommonstock.OnJanuary20,2012,theCompanyissued$4.5millionofadditionalbondsandcommonstockwarrantstopurchase406,431sharesoftheCompany'scommonstock(Note5).AsofJune30,2016,3,105,279commonstockwarrantswithanexercisepriceof$11.11persharewereoutstandingandareexercisable.

TableofContents

InJuly2016,FilaKoreaLtd.exerciseditsfinalannualcalloptiontopurchase3,105,279commonstockwarrantsheldbytheholdersofthebondsandexercisedsuchwarrantsattheexercisepriceof$11.11pershare,or$34.5millionintheaggregate.TheCompanyusedtheproceedsreceivedfromFilaKoreaLtd.'sexerciseofthecommonstockwarrantstoredeemtheoutstandingbondspayable.

TheCompanyprincipallyusesfinancialinstrumentstoreducetheimpactofchangesinforeigncurrencyexchangerates.TheprincipalderivativefinancialinstrumentstheCompanyentersintoonaroutinebasisareforeignexchangeforwardcontracts.TheCompanydoesnotenterintoforeignexchangeforwardcontractsfortradingorspeculativepurposes.

Foreignexchangecontractsareprimarilyusedtohedgepurchasesdenominatedinselectforeigncurrencies,therebylimitingcurrencyriskthatwouldotherwiseresultfromchangesinexchangerates.Theperiodsoftheforeignexchangecontractscorrespondtotheperiodsoftheforecastedtransactions,whichdonotexceed24monthssubsequenttothelatestbalancesheetdate.Theeffectiveportionsofcashflowhedgesarereportedinaccumulatedothercomprehensiveincome(loss)andrecognizedintheconsolidatedstatementofoperationswhenthehedgeditemaffectsearnings.Changesinfairvalueofalleconomichedgetransactionsareimmediatelyrecognizedincurrentperiodearnings.TheprimaryforeigncurrencyhedgecontractspertaintotheU.S.dollar,theJapaneseyen,theBritishpoundsterling,theCanadiandollar,theKoreanwonandtheEuro.ThegrossU.S.dollarequivalentnotionalamountofallforeigncurrencyderivativehedgesoutstandingasofJune30,2016was$373.2million.

Thecounterpartiestoderivativecontractsaremajorfinancialinstitutions.TheCompanyassessescreditriskofthecounterpartiesonanongoingbasis.

Thefairvaluesofforeignexchangederivativeinstrumentsontheconsolidatedbalancesheetswereasfollows:

Theeffectofforeignexchangederivativeinstrumentsonaccumulatedothercomprehensiveincome(loss)andtheconsolidatedstatementsofoperationswasasfollows:

(inthousands) BalanceSheetLocation December31,

2015 June30,2016

Assetderivatives Othercurrentassets $ 13,824 $ 4,846 Othernoncurrentassets 790 78

Liabilityderivatives Othercurrentliabilities 1,265 14,628 Othernoncurrentliabilities 331 8,925

Gain(Loss)Recognizedin

SixMonthsEnded

June30, (inthousands) 2015 2016 Typeofhedge Cashflow $ 6,444 $ (23,625)

$ 6,444 $ (23,625)

TableofContents

Basedonthecurrentvaluation,theCompanyexpectstoreclassifyanetlossof$9.8millionfromaccumulatedothercomprehensiveincome(loss)intocostofgoodssoldduringthenext12months.

7.FairValueMeasurements

CertainassetsandliabilitiesarecarriedatfairvalueunderU.S.GAAP.Fairvalueisdefinedastheexchangepricethatwouldbereceivedforanassetorpaidtotransferaliability(anexitprice)intheprincipalormostadvantageousmarketfortheassetorliabilityinanorderlytransactionbetweenmarketparticipantsonthemeasurementdate.Valuationtechniquesusedtomeasurefairvaluemustmaximizetheuseofobservableinputsandminimizetheuseofunobservableinputs.

Assetsandliabilitiesmeasuredatfairvalueonarecurringbasiswereasfollows:

Gain(Loss)RecognizedinStatementofOperations

SixMonthsEnded

June30, (inthousands) 2015 2016 Locationofgain(loss)instatementofoperations Costofgoodssold $ 17,319 $ 7,757Selling,generalandadministrativeexpense 1,826 (2,669)

$ 19,145 $ 5,088

December31,2015using: (inthousands) Level1 Level2 Level3 BalanceSheetLocationAssets Rabbitrust $ 13,111 $ — $ — OthercurrentassetsForeignexchangederivativeinstruments — 13,824 — OthercurrentassetsRabbitrust 1,442 — — OthernoncurrentassetsDeferredcompensationprogramassets 2,129 — — OthernoncurrentassetsForeignexchangederivativeinstruments — 790 — OthernoncurrentassetsTotalassets $ 16,682 $ 14,614 $ —

Liabilities Foreignexchangederivativeinstruments $ — $ 1,265 $ — OthercurrentliabilitiesCommonstockwarrants — — 22,884 OthercurrentliabilitiesDeferredcompensationprogramliabilities 2,129 — — OthernoncurrentliabilitiesForeignexchangederivativeinstruments — 331 — OthernoncurrentliabilitiesTotalliabilities $ 2,129 $ 1,596 $ 22,884

TableofContents

7.FairValueMeasurements(Continued)

DuringtheyearendedDecember31,2015andthesixmonthsendedJune30,2016,therewerenotransfersbetweenLevel1,Level2andLevel3.

RabbitrustassetsareusedtofundcertainretirementobligationsoftheCompany.TheassetsunderlyingtheRabbitrustareequityandfixedincomeexchange-tradedfunds.

Deferredcompensationprogramassetsandliabilitiesrepresentaprogramwhereselectemployeescandefercompensationuntilterminationofemployment.EffectiveJuly29,2011,thisprogramwasamendedtoceaseallemployeecompensationdeferralsandprovidedforthedistributionofallpreviouslydeferredemployeecompensation.TheprogramremainsineffectwithrespecttothevalueattributabletotheemployermatchcontributedpriortoJuly29,2011.

Foreignexchangederivativeinstrumentsareforwardcontractsusedtohedgecurrencyfluctuationsfortransactionsdenominatedinaforeigncurrency.TheCompanyusesthemid-priceofforeignexchangeforwardratesasofthecloseofbusinessonthevaluationdatetovalueeachforeignexchangeforwardcontractateachreportingperiod.

TheCompanycategorizesthecommonstockwarrantsderivativeliabilityasLevel3astherearesignificantunobservableinputsusedintheunderlyingvaluations.Thecommonstockwarrantsarevaluedusingthecontingentclaimsmethodology.

ThechangeinLevel3fairvaluemeasurementswasasfollows:

FairValueMeasurementsasofJune30,

2016using: (inthousands) Level1 Level2 Level3 BalanceSheetLocationAssets Rabbitrust $ 9,194 $ — $ — OthercurrentassetsForeignexchangederivativeinstruments — 4,846 — OthercurrentassetsRabbitrust 4,470 — — OthernoncurrentassetsDeferredcompensationprogramassets 1,827 — — OthernoncurrentassetsForeignexchangederivativeinstruments — 78 — OthernoncurrentassetsTotalassets $ 15,491 $ 4,924 $ —

Liabilities Foreignexchangederivativeinstruments $ — $ 14,628 $ — OthercurrentliabilitiesCommonstockwarrants — — 28,996 OthercurrentliabilitiesDeferredcompensationprogramliabilities 1,827 — — OthernoncurrentliabilitiesForeignexchangederivativeinstruments — 8,925 — OthernoncurrentliabilitiesTotalliabilities $ 1,827 $ 23,553 $ 28,996

2015 June30,2016

Balanceatbeginningofperiod $ 1,818 $ 22,884Commonstockwarrantexercise (7,298) —Totallossesincludedinearnings 28,364 6,112Balanceatendofperiod $ 22,884 $ 28,996

TableofContents

8.PensionandOtherPostretirementBenefits

Componentsofnetperiodicbenefitcostwereasfollows:

9.IncomeTaxes

Theeffectiveratesforincometaxeswere50.2%and42.2%forthesixmonthsendedJune30,2015and2016,respectively.ReflectedineachquarterarediscreteitemsthatpertaintotaxobligationsrelatedtoperiodspriortotheCompany'sacquisitionofAcushnetCompanywhichareindemnifiedbyBeamSuntory,Inc.(formerlyknownasFortuneBrands,Inc.)(Beam)intheamountsof$4.1millionand$0.5millionforthesixmonthsendedJune30,2015and2016,respectively.Thedecreaseintheeffectivetaxratewasfurtherimpactedbyareductioninnon-cashfairvaluelossesoncommonstockwarrantswhicharenottaxeffected,offset,inpart,byanincreaseinnon-deductibletransactionfeesandchangestothegeographicmixinearnings.

10.RedeemableConvertiblePreferredStock

TheCompanyhasissuedSeriesAredeemableconvertiblepreferredstock("SeriesApreferredstock").AsofDecember31,2015andJune30,2016,theCompany'scertificateofincorporation,asamendedandrestated,authorizedtheCompanytoissue1,838,027sharesof$0.001parvaluepreferredstock.GiventhatcertainredemptionfeaturesofthepreferredstockarenotsolelywithinthecontroloftheCompany,theSeriesApreferredstockisclassifiedoutsideofstockholders'equity.TheSeriesApreferredstockisonlyredeemableuponachangeofcontrolorthecompletionofaqualifiedinitialpublicoffering.

OnMay6,2016,theCompanyandeachoftheholdersoftheSeriesApreferredstockenteredintoanagreementrequiringthemandatoryconversionofthesharesoftheSeriesApreferredstockintofullypaidandnonassessablesharesoftheCompany'scommonstock.Thisautomaticconversionwilloccurpriortotheclosingofaqualifiedinitialpublicoffering.Uponconversion,anycalculatedfractionalsharesoftheCompany'scommonstockwillbepaidincashtoeachoftheholdersofthesharesoftheSeriesApreferredstock.Inaddition,allaccruedbutunpaiddividendsonthesharesoftheSeriesApreferredstockwillbepaidtoeachholderofthesharesoftheSeriesApreferredstock.

PensionBenefits Postretirement

Benefits SixmonthsendedJune30, (inthousands) 2015 2016 2015 2016 Componentsofnetperiodicbenefitcost Servicecost $ 8,055 $ 4,909 $ 530 $ 500Interestcost 5,998 6,293 394 423Expectedreturnonplanassets (5,322) (6,206) — —Amortizationofnet(gain)loss 634 247 (248) (348)Amortizationofpriorservicecost(credit) — 87 (85) (84)Netperiodicbenefitcost $ 9,365 $ 5,330 $ 591 $ 491

TableofContents

11.EquityIncentivePlans

TheCompanymeasuresstock-basedawardsgrantedtoemployeesbasedonthefairvalueonthedateofthegrantandrecognizesthecorrespondingcompensationexpenseofthoseawards,netofestimatedforfeitures,overtherequisiteserviceperiod,whichisgenerallythevestingperiodoftherespectiveaward.TheCompanyissuesstock-basedawardstoemployeeswithservice-basedvestingconditionsandperformance-basedvestingconditions.Compensationexpenseforawardswithonlyservice-basedvestingconditionsisrecordedusingthestraight-linemethod.Compensationexpenseforawardswithservice-basedandperformance-basedvestingconditionsisrecordedonastraight-linemethodoncetheCompanyhasdeterminedthatthelikelihoodofmeetingtheperformanceconditionsisprobable,whichrequiresmanagementjudgment.

TheCompanyrecognizescompensationexpenseforonlytheportionofawardsthatareexpectedtovest.Indevelopingaforfeiturerateestimate,theCompanyhasconsidereditshistoricalexperiencetoestimatepre-vestingforfeituresforservice-basedandperformance-basedawards.Theimpactofaforfeiturerateadjustmentwillberecognizedinfullintheperiodofadjustment,andiftheactualforfeiturerateismateriallydifferentfromtheCompany'sestimate,theCompanymayberequiredtorecordadjustmentstostock-basedcompensationexpenseinfutureperiods.

OnJanuary22,2016,theCompany'sboardofdirectorsadoptedtheAcushnetHoldingsCorp.2015OmnibusIncentivePlan("2015Plan")whichprovidesfortheCompanytograntstockoptions,stockappreciationrights,restrictedsharesofcommonstock,restrictedstockunits,andotherstock-basedandcash-basedawardstomembersoftheboardofdirectors,officers,employees,consultantsandadvisorsoftheCompany.The2015PlanisadministeredbytheCompany'sboardofdirectorspriortoaninitialpublicofferingandthecompensationcommitteefollowinganinitialpublicoffering(theboardorcompensationcommittee,asapplicable,the"Administrator").TheAdministratorhastheauthoritytoestablishthetermsandconditionsofanyawardissuedorgrantedunderthe2015Plan.Theexercisepricepershareofstockoptionsmaynotbelessthan100%ofthefairmarketvalueofashareofcommonstockonthedateofthegrantandthetermofthestockoptionmaynotbegreaterthantenyears(exceptforanincentivestockoptionsgrantedtoa10%stockholder,whichshallhaveanexercisepricenolessthan110%ofthefairmarketvalueoftheshareofcommonstockonthedateofthegrantandatermnotgreaterthanfiveyears).Atotalof6,525,000authorizedsharesoftheCompany'scommonstockarereservedforissuanceunderthe2015Plan.

OnJune15,2016,theCompany'sboardofdirectors,inaccordancewiththe2015Plan,approvedagrantofmulti-yearrestrictedstockunits("RSUs")andperformancestockunits("PSUs")tocertainkeymembersofmanagement.Thegrantsweremade50%inRSUsand50%inPSUs.One-thirdoftheRSUsvestoneachofJanuary1of2017,2018and2019,subjecttotheemployee'scontinuedemploymentwiththeCompany,andthePSUscliff-vestonDecember31,2018,subjecttotheemployee'scontinuedemploymentwiththeCompanyandtheCompany'slevelofachievementoftheapplicablecumulativeAdjustedEBITDAperformancemetrics(asdefinedintheapplicableawardagreements)measuredoverthethree-yearperformanceperiod.EachPSUreflectstherighttoreceivebetween0%and200%ofthetargetnumberofsharesbasedontheactualthree-yearcumulativeAdjustedEBITDA.Thedeterminationofthetargetvaluegaveconsiderationtoexecutiveperformance,potentialfuturecontributionsandpeergroupanalysis.Theinitialfairvalueofthegrantwasestimatedat$45.8million.

TheRSUsandPSUscontaintheright,butnottheobligation,fortheCompanytorepurchaseupto100%ofthecommonstockthatwasissuedinsettlementofvestedRSUsandPSUs,following

TableofContents

terminationoftheawardholder.TherepurchaserightisatthesolediscretionoftheCompanyandcanbeexercisedduringthe60dayperiodfollowingthefirstandsecondanniversaryofanytermination,asdefinedinthe2015Plan,providedthat(i)nosharesofcommonstockmaybesubjecttorepurchaseunlesstheyhavebeenheldbytheawardholderforatleastsixmonthsand(ii)norepurchaserightmaybeexerciseduponorfollowingtheCompany'sinitialpublicoffering.AnysharesofcommonstockthatarerepurchasedmustbedoneatthefairvalueoftheCompany'scommonstockasdeterminedonthedatetheCompanyelectstoexerciseitsrepurchaseoption.

Todate,theCompanyhasnotrepurchasedanysharesofrestrictedstockunitsorperformancestockunits.AsofJune30,2016,noRSUsorPSUshadvested.Remainingunrecognizedcompensationexpensefornon-vestedRSUsandnon-vestedPSUsgrantedwas$22.3millionand$22.5million,respectively,asofJune30,2016andisexpectedtoberecognizedovertherelatedweightedaverageperiodof2.5years.

TheCompanydeemedtheachievementofthe100%targetthree-yearcumulativeAdjustedEBITDAperformancemetrictobeprobableasofJune30,2016.TheCompanywillreassesstheprobabilityofachievingthethree-yearcumulativeAdjustedEBITDAtargetattheendofeachreportingperiod.TheCompanyrecordedcompensationexpensefortheRSUsandPSUsof$0.6millionand$0.4million,respectively,duringthesixmonthsendedJune30,2016,themajorityofwhichwasincludedinselling,generalandadministrativeexpenses.

12.AccumulatedOtherComprehensiveIncome(Loss),NetofTax

Accumulatedothercomprehensiveincome(loss),netoftaxconsistsofforeigncurrencytranslationadjustments,unrealizedgainsandlossesfromforeignexchangederivativeinstrumentsdesignatedascashflowhedges,unrealizedgainsandlossesfromavailable-for-salesecuritiesandpensionandotherpostretirementadjustments.

Thecomponentsofandchangesinaccumulatedothercomprehensiveincome(loss),netoftax,wereasfollows:

(inthousands)

ForeignCurrencyTranslationAdjustments

Gains(Losses)on

GainsonAvailable-for-SaleSecurities

PensionandOther

PostretirementAdjustments

AccumulatedOther

ComprehensiveLoss

BalancesatDecember31,2015 $ (70,019) $ 9,166 $ 1,504 $ (7,885) $ (67,234)Othercomprehensiveincome(loss)beforereclassifications 12,181 (12,495) (92) 1,145 739

Amountsreclassifiedfromaccumulatedothercomprehensiveloss — (7,757) — (98) (7,855)

BalancesatJune30,2016 $ (57,838) $ (11,086) $ 1,412 $ (6,838) $ (74,350)

TableofContents

13.NetIncomeperCommonShare

ThefollowingisacomputationofbasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.underthetwo-classmethod:

TheCompany'spotentialdilutivesecuritiesforthesixmonthsendedJune30,2015includeSeriesApreferredstock,stockoptions,warrantstopurchasecommonstockandconvertiblenotes.ForthesixmonthsendedJune30,2016,theCompany'spotentialdilutivesecuritiesincludeSeriesApreferredstock,RSUs,PSUs,warrantstopurchasecommonstockandconvertiblenotes.

Thefollowingsecuritieshavebeenexcludedfromthecalculationofdilutedweighted-averagecommonsharesoutstandingastheirimpactwasdeterminedtobeanti-dilutive:

14.UnauditedProFormaNetIncomeperCommonShare

TheproformabasicanddilutednetincomepershareattributabletoAcushnetHoldingsCorp.forthesixmonthsendedJune30,2016giveseffecttotheautomaticconversion,arisingpriortoaqualifiedinitialpublicoffering,ofallsharesofSeriesApreferredstockandtheprincipaloftheconvertiblenotesthatareoutstandingasofJune30,2016.ThecalculationofunauditedproformanetincomepercommonshareattributabletoAcushnetHoldingsCorp.hasbeenpreparedtogiveeffecttotheconversionasiftheproposedinitialpublicofferingoccurredonthelaterofJanuary1,2015ortheissuancedate.

TheunauditedproformanetincomeattributabletoAcushnetHoldingsCorp.usedinthecalculationofunauditedbasicanddilutedproformanetincomepercommonshareattributableto

SixMonthsEndedJune30, (inthousands,exceptshareandpershareamounts) 2015 2016 NetincomeattributabletoAcushnetHoldingsCorp. $ 33,456 $ 52,069Less:accruingofcumulativedividends (6,836) (6,855)Less:allocationofundistributedearningstopreferredshareholders (12,548) (19,496)

Netincomeattributabletocommonstockholders—basic 14,072 25,718Adjustmentstonetincomefordilutivesecurities 12,679 15,700

Netincomeattributabletocommonstockholders—diluted $ 26,751 $ 41,418Weightedaveragenumberofcommonshares: Basic 18,551,790 21,821,256Diluted 51,265,755 54,449,955

NetincomepercommonshareattributabletoAcushnetHoldingsCorp.: Basic $ 0.76 $ 1.18Diluted $ 0.52 $ 0.76

SixMonthsEndedJune30, 2015 2016 SeriesApreferredstock 16,542,243 16,542,243Warrantstopurchasecommonstock 6,210,567 3,105,279

TableofContents

14.UnauditedProFormaNetIncomeperCommonShare(Continued)

AcushnetHoldingsCorp.forthesixmonthsendedJune30,2016doesnotincludetheeffectsofthepaymentorcumulativedividendsontheSeriesApreferredstockorinterestexpenserelatedtotheconvertiblenotesforthesixmonthsendedJune30,2016.

TheunauditedproformabasicanddilutedweightedaveragecommonsharesoutstandingusedinthecalculationofunauditedproformabasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.forthesixmonthsendedJune30,2016includes49,167,063sharesofcommonstockresultingfromtheautomaticconversion.

TheunauditedproformadilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.forthesixmonthsendedJune30,2016alsogiveseffecttoanypotentiallydilutivesecurities.

UnauditedproformabasicanddilutednetincomepercommonshareattributabletoAcushnetHoldingsCorp.wascalculatedasfollows:

15.SegmentInformation

TheCompany'soperatingsegmentsarebasedonhowtheChiefOperatingDecisionMaker("CODM")makesdecisionsaboutassessingperformanceandallocatingresources.TheCompanyhasfourreportablesegmentsthatareorganizedonthebasisofproductcategories.ThesesegmentsincludeTitleistgolfballs,Titleistgolfclubs,TitleistgolfgearandFootJoygolfwear.

TheCODMprimarilyevaluatesperformanceusingsegmentoperatingincome.Segmentoperatingincomeincludesdirectlyattributableexpensesandcertainsharedcostsofcorporateadministrationthatareallocatedtothereportablesegments,butexcludesinterestexpense,net;EARexpense;gainsandlossesonthefairvalueofcommonstockwarrantsandothernon-operatinggainsandlossesasthe

(inthousands,exceptshareandpershareamounts) Proforma

June30,2016 NetincomeattributabletoAcushnetHoldingsCorp. $ 52,069Proformaadjustmenttoaddinterestonconvertiblenotes,netoftax 8,788

NetincomeusedtocomputeproformanetincomepercommonshareattributabletoAcushnetHoldingsCorp. $ 60,857

Weightedaveragenumberofcommonshares: Basic 21,821,256Proformaadjustmenttoreflectconversionofpreferredshares 16,542,243Proformaadjustmenttoreflectconversionofconvertiblenotes 32,624,820

UsedincalculatingbasicproformanetincomepercommonshareattributabletoAcushnetHoldingsCorp. 70,988,319

Diluted 54,449,955Proformaadjustmenttoreflectconversionofpreferredshares 16,542,243

UsedincalculatingdilutedproformanetincomepercommonshareattributabletoAcushnetHoldingsCorp. 70,992,198

ProformanetincomepercommonshareattributabletoAcushnetHoldingsCorp.—basicanddiluted $ 0.86

TableofContents

Companydoesnotallocatethesetothereportablesegments.TheCODMdoesnotevaluateameasureofassetswhenassessingperformance.

ResultsshownforthesixmonthsendedJune30,2016arenotnecessarilythosewhichwouldbeachievedifeachsegmentwasanunaffiliatedbusinessenterprise.Therearenointersegmenttransactions.

Informationbyreportablesegmentandareconciliationtoreportedamountsareasfollows:

16.CommitmentsandContingencies

PurchaseObligations

Duringthenormalcourseofitsbusiness,theCompanyentersintoagreementstopurchasegoodsandservices,includingpurchasecommitmentsforproductionmaterials,finishedgoodsinventory,capitalexpendituresandendorsementarrangementswithprofessionalgolfers.ThereportedamountsexcludethoseliabilitiesincludedinaccountspayableoraccruedliabilitiesontheconsolidatedbalancesheetasofJune30,2016.

SixMonthsEndedJune30, (inthousands) 2015 2016 Netsales Titleistgolfballs $ 304,665 $ 296,249Titleistgolfclubs 220,531 240,296Titleistgolfgear 76,185 84,334FootJoygolfwear 249,160 264,030Other 12,333 18,086

Totalnetsales $ 862,874 $ 902,995Segmentoperatingincome Titleistgolfballs $ 59,351 $ 52,353Titleistgolfclubs 33,329 37,489Titleistgolfgear 11,818 14,616FootJoygolfwear 31,860 25,766Other 1,037 3,849Totalsegmentoperatingincome 137,395 134,073

Reconcilingitems: Interestexpense,net (30,530) (28,404)EARexpense (22,665) —Lossonfairvalueofcommonstockwarrants (14,778) (6,112)Other 4,111 (6,097)Totalincomebeforeincometax $ 73,533 $ 93,460

TableofContents

PurchaseobligationsbytheCompanyasofJune30,2016wereasfollows:

LeaseCommitments

TheCompanyleasescertainwarehouses,distributionandofficefacilities,vehiclesandofficeequipmentunderoperatingleases.

TheCompanyhasanoperatingleaseforcertainvehiclesthatprovidesforaresidualvalueguarantee.Theleasehasanoncancelableleasetermofoneyearandmayberenewedannuallyoverthesubsequentfiveyears.TheCompanyhastheoptiontoterminatetheleaseattheannualrenewaldate.Terminationoftheleaseresultsinthesaleofthevehiclesandthedeterminationoftheresidualvalue.Theresidualvalueiscalculatedbycomparingthenetproceedsofthevehiclessoldtothedepreciatedvalueattheendoftherenewalperiod.TheCompanyisnotresponsibleforanydeficiencyresultingfromthenetproceedsbeinglessthan20%oftheoriginalcostinthefirstyearand20%ofthedepreciatedvalueforallsubsequentyears.TheCompanybelievesthatthisguaranteewillnothaveasignificantimpactontheconsolidatedfinancialstatements.

Contingencies

InconnectionwiththeCompany'sacquisitionofAcushnetCompany,BeamindemnifiedtheCompanyforcertaintaxrelatedobligationsthatrelatetoperiodsduringwhichFortuneBrands,Inc.ownedAcushnetCompany.AsofJune30,2016,theCompany'sestimateofitsreceivablefortheseindemnificationsis$8.4million,ofwhich$1.9millionisrecordedinothercurrentassetsand$6.5millionisrecordedinothernoncurrentassetsontheconsolidatedbalancesheet.

Litigation

AdisputehasarisenbetweenAcushnetCompanyandBeamwithrespecttoapproximately$16.6millionofvalue-addedtax("VAT")tradereceivables.ThesereceivableswerereflectedonAcushnetCompany'sconsolidatedbalancesheetatthetimeoftheCompany'sacquisitionofAcushnetCompany.AcushnetCompanybelievesthattheseVATtradereceivablesareassetsoftheCompany;BeamclaimsthatthesearetaxcreditsorrefundsfromtheperiodpriortotheacquisitionofAcushnetCompanywhicharepayabletoBeam,pursuanttothetermsoftheStockPurchaseAgreementthatcoversthesaleofthestockofAcushnetCompany.BeamhaswithheldpaymentsinthisamountwhichtheCompanybelievesarepayabletoAcushnetCompanyinreimbursementofcertainothertaxliabilitieswhichexistedpriortotheacquisitionofAcushnetCompany.OnMarch27,2012,AcushnetCompanyfiledacomplaintseekingreimbursementofthesefundsintheCommonwealthofMassachusettsSuperiorCourtDepartment,BusinessLitigationSection.EachpartyfiledMotionsforSummaryJudgment,whichmotionsweredeniedbytheCourtonJuly29,2015.TrialwasconductedinearlyJune,2016.OnJune21,2016,theCourtruledthatBeamhadacontractualrighttotheVATtradereceivablesactuallycollectedfromAcushnetCompany'scustomerspriortotheclosingofthe

PaymentsDuebyPeriod

(inthousands) Remainderof

2016 2017 2018 2019 2020 Thereafter Purchaseobligations $ 133,173 $ 33,692 $ 13,033 $ 1,573 $ 1,427 $ 4,744

TableofContents

Company'sacquisitionofAcushnetCompany,butthatBeamshouldpay$972,288pluspre-judgmentinterestof$494,859totheCompanytocompensateforamountsBeamwithheld,butwhichwerenotcollectedfromAcushnetCompany'scustomers.TheCompanyrecordedthetotalvalueasother(income)expense,netontheconsolidatedstatementofoperationsforthesixmonthsendedJune30,2016.AcushnetbelievesthattheCourterredinitsrulingandfiledaNoticeofAppealonJuly20,2016.

Other Litigation

Inadditiontothelawsuitdescribedabove,theCompanyanditssubsidiariesaredefendantsinlawsuitsassociatedwiththenormalconductoftheirbusinessesandoperations.Itisnotpossibletopredicttheoutcomeofthependingactions,and,aswithanylitigation,itispossiblethatsomeoftheseactionscouldbedecidedunfavorably.Consequently,theCompanyisunabletoestimatetheultimateaggregateamountofmonetaryloss,amountscoveredbyinsuranceorthefinancialimpactthatwillresultfromsuchmattersandhasnotrecordedaliabilityrelatedtopotentiallosses.TheCompanybelievesthattherearemeritoriousdefensestotheseactionsandthattheseactionswillnothaveamaterialadverseeffectontheconsolidatedfinancialstatements.

17.SubsequentEvents

OnOctober14,2016,theCompanyeffectedanine-for-onestocksplitofitsissuedandoutstandingsharesofcommonstockandaproportionaladjustmenttotheexistingconversionratiosforthecommonstockwarrants,convertiblenotes,redeemableconvertiblepreferredstock,andtheexercisepriceofthecommonstockwarrantsandthestrikepriceofstock-basedcompensation.Accordingly,allshareandpershareamountsforallperiodspresentedintheaccompanyingfinancialstatementsandnotestheretohavebeenadjustedretroactively,whereapplicable,toreflectthisstocksplitandadjustmentofthecommonstockwarrantexercisepriceandtheconvertiblenotesandredeemableconvertiblepreferredstockconversionratios.

TheCompanyhasevaluatedsubsequenteventsfromthebalancesheetdatethroughSeptember2,2016,thedateatwhichtheunauditedconsolidatedfinancialstatementswereavailabletobeissued,andwithrespecttothestocksplitdescribedabove,throughOctober14,2016anddeterminedthattherearenoothermaterialitemstodisclose.

TableofContents

PARTII

INFORMATIONNOTREQUIREDINPROSPECTUS

Item13.OtherExpensesofIssuanceandDistribution

ThefollowingtablesetsforththeexpensespayablebytheRegistrantexpectedtobeincurredinconnectionwiththeissuanceanddistributionofcommonstockbeingregisteredhereby(otherthanunderwritingdiscountsandcommissions).Allofsuchexpensesareestimates,exceptfortheSecuritiesandExchangeCommission,orSEC,registrationfee,theFinancialIndustryRegulatoryAuthorityInc.,orFINRA,filingfeeandNYSElistingfee.

Item14.IndemnificationofDirectorsandOfficers

Section102(b)(7)oftheDelawareGeneralCorporationLaw,orDGCL,allowsacorporationtoprovideinitscertificateofincorporationthatadirectorofthecorporationwillnotbepersonallyliabletothecorporationoritsshareholdersformonetarydamagesforbreachoffiduciarydutyasadirector,exceptwherethedirectorbreachedthedutyofloyalty,failedtoactingoodfaith,engagedinintentionalmisconductorknowinglyviolatedalaw,authorizedthepaymentofadividendorapprovedastockrepurchaseinviolationofDelawarecorporatelaworobtainedanimproperpersonalbenefit.Ouramendedandrestatedcertificateofincorporationwillprovideforthislimitationofliability.

Section145oftheDGCL,orSection145,provides,amongotherthings,thataDelawarecorporationmayindemnifyanypersonwhowas,isoristhreatenedtobemade,partytoanythreatened,pendingorcompletedaction,suitorproceeding,whethercivil,criminal,administrativeorinvestigative(otherthananactionbyorintherightofsuchcorporation),byreasonofthefactthatsuchpersonisorwasanofficer,director,employeeoragentofsuchcorporationorisorwasservingattherequestofsuchcorporationasadirector,officer,employeeoragentofanothercorporationorenterprise.Theindemnitymayincludeexpenses(includingattorneys'fees),judgments,finesandamountspaidinsettlementactuallyandreasonablyincurredbysuchpersoninconnectionwithsuchaction,suitorproceeding,providedsuchpersonactedingoodfaithandinamannerheorshereasonablybelievedtobeinornotopposedtothecorporation'sbestinterestsand,withrespecttoanycriminalactionorproceeding,hadnoreasonablecausetobelievethathisorherconductwasunlawful.ADelawarecorporationmayindemnifyanypersonswhowereorareapartytoanythreatened,pendingorcompletedactionorsuitbyorintherightofthecorporationbyreasonofthefactthatsuchpersonisorwasadirector,officer,employeeoragentofanothercorporationorenterprise.Theindemnitymayincludeexpenses(includingattorneys'fees)actuallyandreasonablyincurredbysuchpersoninconnectionwiththedefenseorsettlementofsuchactionorsuit,providedsuchpersonactedingoodfaithandinamannerheorshereasonablybelievedtobeinornotopposedtothecorporation'sbestinterests,providedfurtherthatnoindemnificationispermittedwithoutjudicialapprovaliftheofficer,director,employeeoragentisadjudgedtobeliabletothecorporation.Whereanofficerordirectorissuccessfulonthemeritsorotherwiseinthedefenseofanyactionreferredto

SECregistrationfee $ 61,844FINRAfilingfee 80,540NYSElistingfee 250,000Printingfeesandexpenses 1,080,000Legalfeesandexpenses 5,640,000Accountingfeesandexpenses 1,970,000Transferagentandregistrarfeesandexpenses 3,500Miscellaneous 250,000

Total $ 9,335,884

above,thecorporationmustindemnifyhimorheragainsttheexpenses(includingattorneys'fees)whichsuchofficerordirectorhasactuallyandreasonablyincurred.

Section145furtherauthorizesacorporationtopurchaseandmaintaininsuranceonbehalfofanypersonwhoisorwasadirector,officer,employeeoragentofthecorporationorisorwasservingattherequestofthecorporationasadirector,officer,employeeoragentofanothercorporationorenterprise,againstanyliabilityassertedagainstsuchpersonandincurredbysuchpersoninanysuchcapacity,orarisingoutofhisorherstatusassuch,whetherornotthecorporationwouldotherwisehavethepowertoindemnifysuchpersonunderSection145.

OuramendedandrestatedcertificateofincorporationandouramendedandrestatedbylawswillprovidethatwemustindemnifyandadvanceexpensestoourdirectorsandofficerstothefullextentauthorizedbytheDGCL.

Theindemnificationrightssetforthaboveshallnotbeexclusiveofanyotherrightwhichanindemnifiedpersonmayhaveorhereafteracquireunderanystatute,anyprovisionofouramendedandrestatedcertificateofincorporation,ouramendedandrestatedbylaws,agreement,voteofshareholdersordisinteresteddirectorsorotherwise.Notwithstandingtheforegoing,weshallnotbeobligatedtoindemnifyadirectororofficerinrespectofaproceeding(orpartthereof)institutedbysuchdirectororofficer,unlesssuchproceeding(orpartthereof)hasbeenauthorizedbytheboardofdirectorspursuanttotheapplicableprocedureoutlinedintheamendedandrestatedbylaws.

Section174oftheDGCLprovides,amongotherthings,thatadirector,whowillfullyornegligentlyapprovesofanunlawfulpaymentofdividendsoranunlawfulstockpurchaseorredemption,maybeheldjointlyandseverallyliableforsuchactions.Adirectorwhowaseitherabsentwhentheunlawfulactionswereapprovedordissentedatthetimemayavoidliabilitybycausinghisorherdissenttosuchactionstobeenteredinthebookscontainingtheminutesofthemeetingsoftheboardofdirectorsatthetimesuchactionoccurredorimmediatelyaftersuchabsentdirectorreceivesnoticeoftheunlawfulacts.

Weexpecttomaintainstandardpoliciesofinsurancethatprovidecoverage(1)toourdirectorsandofficersagainstlossrisingfromclaimsmadebyreasonofbreachofdutyorotherwrongfulactand(2)touswithrespecttoindemnificationpaymentsthatwemaymaketosuchdirectorsandofficers.

Theunderwritingagreementprovidesforindemnificationbytheunderwritersofusandourofficersanddirectorsandthesellingshareholders,andbyusandthesellingshareholdersoftheunderwriters,forcertainliabilitiesarisingundertheSecuritiesActorotherwiseinconnectionwiththisoffering.

Item15.RecentSalesofUnregisteredSecurities

InJuly2013,FilaKoreaexerciseditscalloptiononwarrantsheldbycertainexistingsecurityholderstopurchase3,105,288sharesofcommonstock.OnAugust7,2013,FilaKoreaconvertedthewarrantsintocommonstockattheconversionpriceof$11.11pershare,or$34.5millionintheaggregate.Weusedtheproceedsreceivedfromthiswarrantexercisetoredeemaproratashareofouroutstanding7.5%bondsdue2021.

InSeptember2013,weissued137,898sharesofourcommonstocktoWalterUihlein,ourPresidentandChiefExecutiveOfficer,uponexerciseofoutstandingstockoptions.

InJuly2014,FilaKoreaexerciseditscalloptiononwarrantsheldbycertainexistingsecurityholderstopurchase3,105,288sharesofcommonstock.OnJuly29,2014,FilaKoreaconvertedthewarrantsintocommonstockattheconversionpriceof$11.11pershare,or$34.5millionintheaggregate.Weusedtheproceedsreceivedfromthiswarrantexercisetoredeemaproratashareofouroutstanding7.5%bondsdue2021.

InJuly2014,weissued86,949sharesofourcommonstocktoWalterUihlein,ourPresidentandChiefExecutiveOfficer,uponexerciseofoutstandingstockoptions.

InJuly2015,FilaKoreaexerciseditscalloptiononwarrantsheldbycertainexistingsecurityholderstopurchase3,105,288sharesofcommonstock.OnJuly28,2015,FilaKoreaconvertedthewarrantsintocommonstockattheconversionpriceof$11.11pershare,or$34.5millionintheaggregate.Weusedtheproceedsreceivedfromthiswarrantexercisetoredeemaproratashareofouroutstanding7.5%bondsdue2021.

InJuly2015,weissued164,178sharesofourcommonstocktoWalterUihlein,ourPresidentandChiefExecutiveOfficer,uponexerciseofoutstandingstockoptions.

During2015,wegrantedanaggregateof279,000EARswithaweighted-averagestrikepriceof$20.53persharetocertainkeyemployees.

InJune2016,wegrantedanaggregateof1,121,131restrictedstockunitsandanaggregateof1,121,131performancestockunitstocertainofouremployeesunderour2015IncentivePlan.

InJuly2016,FilaKoreaexerciseditscalloptiononwarrantsheldbycertainexistingsecurityholderstopurchase3,105,279sharesofcommonstock.Suchwarrantsconvertintocommonstockattheconversionpriceof$11.11pershare,or$34.5millionintheaggregate.Weusedtheproceedsreceivedfromthiswarrantexercisetoredeemtheremainingportionofouroutstanding7.5%bondsdue2021.

InAugust2016,wegrantedanaggregateof91,294restrictedstockunitsandanaggregateof91,294performancestockunitstocertainemployeesunderour2015IncentivePlan.

Ourboardofdirectorshasapprovedagrantofrestrictedstockunitsandperformancestockunitstoanemployeeunderour2015IncentivePlanwithanaggregatefairmarketvalueof$583,333,withthenumberofRSUsandPSUstobedeterminedbasedontheinitialpublicofferingprice.

ThesalesoftheabovesecuritiesweredeemedtobeexemptfromregistrationundertheSecuritiesActinrelianceuponSection4(a)(2)oftheSecuritiesActorRegulationDpromulgatedthereunder,orRule701promulgatedunderSection3(b)oftheSecuritiesActastransactionsbyanissuernotinvolvinganypublicoffering.

Item16.ExhibitsandFinancialStatementSchedules

(a) Exhibits. SeetheExhibitsIndeximmediatelyfollowingthesignaturepagehereto,whichisincorporatedbyreferenceasiffullysetforthherein.

(b) Financial Statement Schedules. Allschedulesareomittedbecausetherequiredinformationiseithernotpresent,notpresentinmaterialamountsorpresentedwithinourauditedconsolidatedfinancialstatementsincludedelsewhereinthisprospectusandareincorporatedhereinbyreference.

Item17.Undertakings.

(1)InsofarasindemnificationforliabilitiesarisingundertheSecuritiesActof1933maybepermittedtodirectors,officersandcontrollingpersonsoftheregistrantpursuanttotheforegoingprovisions,orotherwise,theregistranthasbeenadvisedthatintheopinionoftheSecuritiesandExchangeCommissionsuchindemnificationisagainstpublicpolicyasexpressedintheSecuritiesActof1933andis,therefore,unenforceable.Intheeventthataclaimforindemnificationagainstsuchliabilities(otherthanthepaymentbytheregistrantofexpensesincurredorpaidbyadirector,officerorcontrollingpersonoftheregistrantinthesuccessfuldefenseofanyaction,suitorproceeding)isassertedbysuchdirector,officerorcontrollingpersoninconnectionwiththesecuritiesbeingregistered,theregistrantwill,unlessintheopinionofitscounselthematterhasbeensettledby

controllingprecedent,submittoacourtofappropriatejurisdictionthequestionofwhethersuchindemnificationbyitisagainstpublicpolicyasexpressedintheSecuritiesActof1933andwillbegovernedbythefinaladjudicationofsuchissue.

(2)TheundersignedRegistrantherebyundertakesthat:

(A)ForpurposesofdetermininganyliabilityundertheSecuritiesActof1933,theinformationomittedfromtheformofprospectusfiledaspartofthisregistrationstatementinrelianceuponRule430AandcontainedinaformofprospectusfiledbytheregistrantpursuanttoRule424(b)(1)or(4)or497(h)undertheSecuritiesActshallbedeemedtobepartofthisregistrationstatementasofthetimeitwasdeclaredeffective.

(B)ForthepurposeofdetermininganyliabilityundertheSecuritiesActof1933,eachpost-effectiveamendmentthatcontainsaformofprospectusshallbedeemedtobeanewregistrationstatementrelatingtothesecuritiesofferedtherein,andtheofferingofsuchsecuritiesatthattimeshallbedeemedtobetheinitialbonafideofferingthereof.

(3)TheundersignedRegistrantherebyundertakestoprovidetotheunderwritersattheclosingspecifiedintheunderwritingagreementcertificatesinsuchdenominationsandregisteredinsuchnamesasrequiredbytheunderwriterstopermitpromptdeliverytoeachpurchaser.

SIGNATURES

PursuanttotherequirementsoftheSecuritiesActof1933,asamended,theregistranthasdulycausedthisregistrationstatementtobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized,intheCityofFairhaven,CommonwealthofMassachusetts,onOctober17,2016.

PursuanttotherequirementsoftheSecuritiesActof1933,thisRegistrationStatementoramendmenthasbeensignedbythefollowingpersonsinthecapacitiesindicatedonOctober17,2016.

By: /s/WALTERUIHLEIN

Name: WalterUihlein Title: President and Chief Executive Officer

Signature Capacity

WalterUihlein

PresidentandChiefExecutiveOfficer(PrincipalExecutiveOfficer)

WilliamBurke

ExecutiveVicePresident,ChiefFinancialOfficerandTreasurer(PrincipalFinancialOfficerandPrincipalAccountingOfficer)

GeneYoon

Chairman

SungWooAhn

Director

HughLee

Director

Jung-HunRyu

Director

YongKyuShin

Director

Signature Capacity

KeunChangYoon

Director

*By: /s/JOSEPHNAUMAN

Name: JosephNauman Title: Attorney In Fact

EXHIBITSINDEX

ExhibitNumber Description 1.1 FormofUnderwritingAgreement. 3.1 FormofAmendedandRestatedCertificateofIncorporationofAcushnetHoldingsCorp. 3.2 FormofAmendedandRestatedBylawsofAcushnetHoldingsCorp. 5.1 OpinionofSimpsonThacher&BartlettLLP. 10.1**† AcushnetCompanyEquityAppreciationRightsPlandatedasofAugust30,2011,asamendedNovember24,

2014,June9,2015andMay18,2016. 10.2**† FormofEquityAppreciationRightsAwardAgreement,asamended. 10.3**† EquityAppreciationRightsAgreementbetweenAcushnetCompanyandYoonSoo(Gene)Yoon,datedasof

August30,2011,asamended. 10.4**† EquityAppreciationRightsAgreementbetweenAcushnetCompanyandWalterR.Uihlein,datedasofAugust30,

2011,asamended. 10.5**† AcushnetCompanyLong-TermIncentivePlan(effectiveJanuary1,2009). 10.6**† AcushnetHoldingsCorp.2015OmnibusIncentivePlan. 10.7**† FormofRestrictedStockUnitGrantNoticeandRestrictedStockUnitAgreementundertheAcushnetHoldings

Corp.2015OmnibusIncentivePlan. 10.8**† FormofPerformanceStockUnitGrantNoticeandPerformanceStockUnitAgreementundertheAcushnet

HoldingsCorp.2015OmnibusIncentivePlan. 10.9**† AcushnetExecutiveSeverancePlan(asamendedandrestatedeffectiveApril29,2016). 10.10**† AcushnetCompanySupplementalRetirementPlan(asamendedandrestatedeffectiveDecember31,2015). 10.11**† AcushnetCompanyRestatedTrustAgreement,datedasofAugust31,2016. 10.12**† AmendedandRestatedChangeinControlAgreementbetweenAcushnetCompanyandWalterR.Uihlein,datedas

ofJuly19,2013,asamendedApril29,2016. 10.13**† AmendedandRestatedSeveranceAgreementbetweenAcushnetCompanyandWalterR.Uihlein,datedasof

July19,2013,asamendedApril29,2016. 10.14**† AcushnetCompanyWalterR.UihleinTrustAgreementdatedasofJanuary1,2003. 10.15**† CashBonusAgreementbetweenAcushnetCompanyandWalterR.Uihlein,datedasofFebruary25,2016. 10.16**† AmendedandRestatedAcushnetCompanyExcessDeferralPlanII(effectiveJuly29,2011). 10.17** SeniorSecuredCreditAgreementdatedasofApril27,2016amongAcushnetHoldingsCorp.,Acushnet

Company,AcushnetCanadaInc.,AcushnetEuropeLimited,certainothersubsidiariespartythereto,WellsFargoBank,NationalAssociationastheadministrativeagent,swinglinelenderandissuingbank,WellsFargoSecurities,LLC,WellsFargoSecurities,LLCandPNCCapitalMarketsLLCasjointleadarrangersandjointbookrunners,PNCCapitalMarketsLLCassyndicationagents,andthelendersfromtimetotimepartythereto.

10.18** JointVentureAgreementbetweenAcushnetCaymanLimitedandMyreOverseasCorporation,datedasofJune1,

1995. 10.19 FormofRegistrationRightsAgreementamongtheCompanyandtheholderssignatorythereto. 10.20† FormofRestrictedStockUnitGrantNoticeandRestrictedStockUnitAgreementforDirectorsunderthe

AcushnetHoldingsCorp.2015OmnibusIncentivePlan.

ExhibitNumber Description 10.21† AcushnetHoldingsCorp.IndependentDirectorsDeferralPlan. 21.1** ListofSubsidiaries. 23.1 ConsentofPricewaterhouseCoopersLLP. 23.2 ConsentofSimpsonThacher&BartlettLLP(includedinexhibit5.1) 23.3** ConsentofJenniferO.Estabrook. 23.4** ConsentofGregoryA.Hewett. 23.5** ConsentofChristopherT.Metz. 23.6** ConsentofSeanS.Sullivan. 23.7** ConsentofStevenH.Tishman. 23.8** ConsentofDavidP.Valcourt. 23.9** ConsentofNormanH.Wesley. 24.1** PowerofAttorney(includedinthesignaturepagetothisRegistrationStatement)

** Previouslyfiled.

† Identifiesexhibitsthatconsistofamanagementcontractorcompensatoryplanorarrangement.

Exhibit1.1

[·]SharesofCommonStock,parvalue$[·]pershare

UnderwritingAgreement

[·]J.P.MorganSecuritiesLLCMorganStanley&Co.LLCAsRepresentativesoftheseveralUnderwriterslistedinSchedule1heretoc/oJ.P.MorganSecuritiesLLC383MadisonAvenueNewYork,NewYork10179c/oMorganStanley&Co.LLC1585BroadwayNewYork,NewYork10036LadiesandGentlemen:

CertainstockholdersnamedinSchedule2hereto(the“SellingStockholders”)ofAcushnetHoldingsCorp.,aDelawarecorporation(the“Company”),proposetoselltotheseveralUnderwriterslistedinSchedule1hereto(the“Underwriters”),forwhomyouareactingasrepresentatives(the“Representatives”),anaggregateof[·]sharesofcommonstock,parvalue$[·]pershare(the“CommonStock”),oftheCompany(the“UnderwrittenShares”)and,attheoptionoftheUnderwriters,uptoanadditional[·]sharesofCommonStockoftheCompany(the“OptionShares”).TheUnderwrittenSharesandtheOptionSharesarehereinreferredtoasthe“Shares.”ThesharesofCommonStockoftheCompanytobeoutstandingaftergivingeffecttothesaleoftheSharesarereferredtohereinasthe“Stock.”

J.P.MorganSecuritiesLLC(the“DirectedShareUnderwriter”)hasagreedtoreserveaportionoftheUnderwrittenSharestobepurchasedbyitunderthisAgreement,uptoShares,forsaletocertainoftheCompany’sdirectors,officers,andemployees(collectively,“Participants”),assetforthintheProspectus(ashereinafterdefined)undertheheading“Underwriting”(the“DirectedShareProgram”).TheSharestobesoldbytheDirectedShareUnderwriteranditsaffiliatespursuanttotheDirectedShareProgramarereferredtohereinafterasthe“DirectedShares”.AnyDirectedSharesnotorallyconfirmedforpurchasebyanyParticipantby[][A/P].M.,NewYorkCitytimeonthebusinessdayonwhichthis

AgreementisexecutedwillbeofferedtothepublicbytheUnderwritersassetforthintheProspectus.

TheCompanyandtheSellingStockholdersherebyconfirmtheiragreementwithrespecttothesaleoftheSharestotheseveralUnderwritersinaccordancewiththetermsandconditionsofthisAgreement.

1.RegistrationStatement.TheCompanyhaspreparedandfiledwiththeSecuritiesandExchangeCommission(the“Commission”)undertheSecuritiesActof1933,asamended,andtherulesandregulationsoftheCommissionthereunder(collectively,the“SecuritiesAct”),aregistrationstatement(FileNo.333-212116),includingaprospectus,relatingtotheShares.Suchregistrationstatement,asamendedatthetimeitbecameeffective,includingtheinformation,ifany,deemedpursuanttoRule430A,430Bor430CundertheSecuritiesActtobepartoftheregistrationstatementatthetimeofitseffectiveness(“Rule430Information”),isreferredtohereinasthe“RegistrationStatement”;andasusedherein,theterm“PreliminaryProspectus”meanseachprospectusincludedinsuchregistrationstatement(andanyamendmentsthereto)beforeeffectiveness,anyprospectusfiledwiththeCommissionpursuanttoRule424(a)undertheSecuritiesActandtheprospectusincludedintheRegistrationStatementatthetimeofitseffectivenessthatomitsRule430Information,andtheterm“Prospectus”meanstheprospectusintheformfirstused(ormadeavailableuponrequestofpurchaserspursuanttoRule173undertheSecuritiesAct)inconnectionwithconfirmationofsalesoftheShares.IftheCompanyhasfiledanabbreviatedregistrationstatementpursuanttoRule462(b)undertheSecuritiesAct(the“Rule462RegistrationStatement”),thenanyreferencehereintotheterm“RegistrationStatement”shallbedeemedtoincludesuchRule462RegistrationStatement.CapitalizedtermsusedbutnotdefinedhereinshallhavethemeaningsgiventosuchtermsintheRegistrationStatementandtheProspectus.

AtorpriortotheApplicableTime(asdefinedbelow),theCompanyhadpreparedthefollowinginformation(collectivelywiththepricinginformationsetforthinAnnexA,the“PricingDisclosurePackage”):aPreliminaryProspectusdated[·],2016andeach“free-writingprospectus”(asdefinedpursuanttoRule405undertheSecuritiesAct)listedonAnnexAhereto.

“ApplicableTime”means[·][A.M./P.M.],NewYorkCitytime,on[·],2016.

2.PurchaseoftheSharesbytheUnderwriters.(a)EachoftheSellingStockholdersagrees,severallyandnotjointly,toselltheUnderwrittenSharesofsuchSellingStockholdertotheseveralUnderwritersasprovidedinthisunderwritingagreement(this“Agreement”),andeachUnderwriter,onthebasisoftherepresentations,warrantiesandagreementssetforthhereinandsubjecttotheconditionssetforthherein,agrees,severallyandnotjointly,topurchasefromeachoftheSellingStockholdersatapurchasepricepershareof$[·](the“PurchasePrice”)thenumberofUnderwrittenShares(tobeadjustedbytheRepresentativesintheirsolediscretionsoastoeliminateanyfractionalShares)determinedbymultiplyingtheaggregatenumberofUnderwrittenSharestobesoldbyeachoftheSellingStockholdersassetforthoppositetheirrespectivenamesinSchedule2heretobyafraction,thenumeratorofwhichistheaggregatenumberofUnderwrittenSharestobepurchasedbysuchUnderwriterassetforthoppositethenameofsuchUnderwriterinSchedule1hereto(orsuchnumberincreasedassetforthinSection

12hereof)andthedenominatorofwhichistheaggregatenumberofUnderwrittenSharestobepurchasedbyalltheUnderwritersfromalloftheSellingStockholdershereunder.

Inaddition,eachoftheSellingStockholders,agrees,severallyandnotjointly,asandtotheextentindicatedinSchedule2hereto,toselltheOptionSharesofsuchSellingStockholdertotheseveralUnderwritersasprovidedinthisAgreement,andtheUnderwriters,onthebasisoftherepresentations,warrantiesandagreementssetforthhereinandsubjecttotheconditionssetforthherein,shallhavetheoptiontopurchase,severallyandnotjointly,fromeachoftheSellingStockholderstheOptionSharesofsuchSellingStockholderatthePurchasePricelessanamountpershareequaltoanydividendsordistributionsdeclaredbytheCompanyandpayableontheUnderwrittenSharesbutnotpayableontheOptionShares.

IfanyOptionSharesaretobepurchased,thenumberofOptionSharestobepurchasedbyeachUnderwritershallbethenumberofOptionShares(tobeadjustedbytheRepresentativesintheirsolediscretionsoastoeliminateanyfractionalShares)determinedbymultiplyingtheaggregatenumberofOptionSharestobesoldbyeachoftheSellingStockholdersassetforthoppositetheirrespectivenamesinSchedule2heretobyafraction,thenumeratorofwhichistheaggregatenumberofUnderwrittenSharestobepurchasedbysuchUnderwriterassetforthoppositethenameofsuchUnderwriterinSchedule1hereto(orsuchnumberincreasedassetforthinSection12hereof)andthedenominatorofwhichistheaggregatenumberofUnderwrittenSharestobepurchasedbyalltheUnderwritersfromalloftheSellingStockholdershereunder.NoOptionSharesshallbesoldanddeliveredunlesstheUnderwrittenSharespreviouslyhavebeen,orsimultaneouslyare,soldanddelivered.

TheUnderwritersmayexercisetheoptiontopurchaseOptionSharesatanytimeinwhole,orfromtimetotimeinpart,onorbeforethethirtiethdayfollowingthedateoftheProspectus,bywrittennoticefromtheRepresentativestotheCompanyandtheSellingStockholders(ineachcase,inaccordancewithSection17(a)hereof).SuchnoticeshallsetforththeaggregatenumberofOptionSharesastowhichtheoptionisbeingexercisedandthedateandtimewhentheOptionSharesaretobedeliveredandpaidfor,whichmaybethesamedateandtimeastheClosingDate(ashereinafterdefined)butshallnotbeearlierthantheClosingDateorlaterthanthetenthfullbusinessday(ashereinafterdefined)afterthedateofsuchnotice(unlesssuchtimeanddatearepostponedinaccordancewiththeprovisionsofSection12hereof).AnysuchnoticeshallbegivenatleastthreebusinessdayspriortotheClosingDate(ashereinafterdefined)(iftheAdditionalClosingDate(ashereinafterdefined)isthesameastheClosingDate)andatleastthreebusinessdayspriortotheAdditionalClosingDate(iftheAdditionalClosingDateisaftertheClosingDate)orasotherwiseagreedamongtheCompany,theSellingStockholdersandtheRepresentatives.

(b)TheCompanyandtheSellingStockholdersunderstandthattheUnderwritersintendtomakeapublicofferingoftheSharesassoonaftertheeffectivenessofthisAgreementasinthejudgmentoftheRepresentativesisadvisable,andinitiallytooffertheSharesonthetermssetforthintheProspectus.TheCompanyandtheSellingStockholdersacknowledgeandagreethattheUnderwritersmayofferandsellSharestoorthroughanyaffiliateofanUnderwriter;providedthatsuchUnderwriterwillberesponsibleforanybreachthereofbyits

affiliateandnothinghereinshallreleasetheUnderwritersfromanyoftheirrespectiveobligationsorliabilitiesunderthisAgreement.

(c)PaymentfortheSharesshallbemadebywiretransferinimmediatelyavailablefundstotheaccountsspecifiedby[],totheRepresentatives,inthecaseoftheUnderwrittenShares,attheofficesofLatham&WatkinsLLP,885ThirdAvenue,NewYork,NY10022at10:00A.M.,NewYorkCitytime,on[·],oratsuchothertimeorplaceonthesameorsuchotherdate,notlaterthanthefifthbusinessdaythereafter,astheRepresentatives,theCompanyand[·]mayagreeuponinwritingor,inthecaseoftheOptionShares,onthedateandatthetimeandplacespecifiedbytheRepresentativesinthewrittennoticeoftheUnderwriters’electiontopurchasesuchOptionShares.ThetimeanddateofsuchpaymentfortheUnderwrittenSharesisreferredtohereinasthe“ClosingDate”andthetimeanddateforsuchpaymentfortheOptionShares,ifotherthantheClosingDate,ishereinreferredtoasthe“AdditionalClosingDate.”

PaymentfortheSharestobepurchasedontheClosingDateortheAdditionalClosingDate,asthecasemaybe,shallbemadeagainstdeliverytotheRepresentativesfortherespectiveaccountsoftheseveralUnderwritersoftheSharestobepurchasedonsuchdatewithanytransfertaxespayableinconnectionwiththesaleofsuchSharesdulypaidbytheSellingStockholders.DeliveryoftheSharesshallbemadethroughthefacilitiesofTheDepositoryTrustCompany(“DTC”)unlesstheRepresentativesshallotherwiseinstruct.Thecertificates,ifCommonStockisincertificatedform,fortheShareswillbemadeavailableforinspectionandpackagingbytheRepresentativesattheofficeofDTCoritsdesignatedcustodiannotlaterthan1:00P.M.,NewYorkCitytime,onthebusinessdaypriortotheClosingDateortheAdditionalClosingDate,asthecasemaybe.

(d)TheCompanyandeachSellingStockholderacknowledgesandagreesthattheUnderwritersareactingsolelyinthecapacityofanarm’slengthcontractualcounterpartytotheCompanyandtheSellingStockholderswithrespecttotheofferingofSharescontemplatedhereby(includinginconnectionwithdeterminingthetermsoftheoffering)andnotasafinancialadvisororafiduciaryto,oranagentof,theCompany,theSellingStockholdersoranyotherperson.Additionally,neithertheRepresentativesnoranyotherUnderwriterisadvisingtheCompany,theSellingStockholdersoranyotherpersonastoanylegal,tax,investment,accountingorregulatorymattersinanyjurisdictionwithrespecttothetransactionscontemplatedunderthisAgreement.TheCompanyandtheSellingStockholdersshallconsultwiththeirownadvisorsconcerningsuchmattersandshallberesponsibleformakingtheirownindependentinvestigationandappraisalofthetransactionscontemplatedhereby,andtheUnderwritersshallhavenoresponsibilityorliabilitytotheCompanyortheSellingStockholderswithrespectthereto.AnyreviewbytheUnderwritersoftheCompany,thetransactionscontemplatedherebyorothermattersrelatingtosuchtransactionswillbeperformedsolelyforthebenefitoftheUnderwritersandshallnotbeonbehalfoftheCompanyortheSellingStockholders.TheCompanyandeachSellingStockholderagreesthatitwillnotclaimthattheUnderwriters,oranyofthem,hasrenderedadvisoryservicesofanynatureorrespect,orowesafiduciaryorsimilardutytotheCompanyoranySellingStockholder,inconnectionwithsuchtransactionortheprocessleadingthereto.

3.RepresentationsandWarrantiesoftheCompany.TheCompanyrepresentsandwarrantstoeachUnderwriterthat:

(a)PreliminaryProspectus.NoorderpreventingorsuspendingtheuseofanyPreliminaryProspectushasbeenissuedbytheCommission,and

eachPreliminaryProspectusincludedinthePricingDisclosurePackage,atthetimeoffilingthereof,compliedinallmaterialrespectswiththeSecuritiesAct.

(b)PricingDisclosurePackage.ThePricingDisclosurePackageasoftheApplicableTimedidnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessaryinordertomakethestatementstherein,inthelightofthecircumstancesunderwhichtheyweremade,notmisleading;providedthattheCompanymakesnorepresentationandwarrantywithrespecttoanystatementsoromissionsmadeinrelianceuponandinconformitywith(i)informationrelatingtoanyUnderwriterfurnishedtotheCompanyinwritingbysuchUnderwriterthroughtheRepresentativesexpresslyforuseinsuchPricingDisclosurePackage,itbeingunderstoodandagreedthattheonlysuchinformationfurnishedbyanyUnderwriterconsistsoftheinformationdescribedassuchinSection9(c)hereofor(ii)informationrelatingtoanySellingStockholderfurnishedtotheCompanyinwritingbyandonbehalfofsuchSellingStockholderexpresslyforuseinthePricingDisclosurePackage,itbeingunderstoodandagreedthattheonlysuchinformationfurnishedbyanySellingStockholderconsistsoftheSellingStockholderInformation(assuchtermisdefinedinSection4(f)hereof).

(c)IssuerFreeWritingProspectus.OtherthantheRegistrationStatement,thePreliminaryProspectusandtheProspectus,theCompany(includingitsagentsandrepresentatives,otherthantheUnderwritersintheircapacityassuch)hasnotprepared,used,authorized,approvedorreferredtoandwillnotprepare,use,authorize,approveorrefertoany“writtencommunication”(asdefinedinRule405undertheSecuritiesAct)thatconstitutesanoffertosellorsolicitationofanoffertobuytheShares(eachsuchcommunicationbytheCompanyoritsagentsandrepresentatives(otherthanacommunicationreferredtoinclause(i)below)an“IssuerFreeWritingProspectus”)otherthan(i)anydocumentnotconstitutingaprospectuspursuanttoSection2(a)(10)(a)oftheSecuritiesActorRule134undertheSecuritiesActor(ii)thedocumentslistedonAnnexAhereto,eachelectronicroadshowandanyotherwrittencommunicationsapprovedinwritinginadvancebytheRepresentatives.EachsuchIssuerFreeWritingProspectuscompliedinallmaterialrespectswiththeSecuritiesAct,hasbeenorwillbe(withinthetimeperiodspecifiedinRule433)filedinaccordancewiththeSecuritiesAct(totheextentrequiredthereby)and,whentakentogetherwiththePreliminaryProspectusaccompanying,ordeliveredpriortodeliveryof,suchIssuerFreeWritingProspectusdidnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessaryinordertomakethestatementstherein,inthelightofthecircumstancesunderwhichtheyweremade,notmisleading;providedthattheCompanymakesnorepresentationandwarrantywithrespecttoanystatementsoromissionsmadeineachsuchIssuerFreeWritingProspectusorPreliminaryProspectusinrelianceuponandinconformitywith(i)informationrelatingtoanyUnderwriterfurnishedtotheCompanyinwritingbysuchUnderwriterthroughtheRepresentativesexpresslyforuseinsuchIssuerFreeWritingProspectusorPreliminaryProspectus,itbeingunderstoodandagreedthattheonlysuchinformationfurnishedbyanyUnderwriterconsistsoftheinformationdescribedassuchinSection9(c)hereofor(ii)informationrelatingtoanySellingStockholderfurnishedtotheCompanyinwritingbyandonbehalfofsuchSellingStockholderexpresslyforuseinsuchIssuerFreeWritingProspectusorPreliminaryProspectus,itbeing

understoodandagreedthattheonlysuchinformationfurnishedbyanySellingStockholderconsistsoftheSellingStockholderInformation.

(d)RegistrationStatementandProspectus.TheRegistrationStatementhasbeendeclaredeffectivebytheCommission.NoordersuspendingtheeffectivenessoftheRegistrationStatementhasbeenissuedbytheCommission,andnoproceedingforthatpurposeorpursuanttoSection8AoftheSecuritiesActagainsttheCompanyorrelatedtotheofferingoftheShareshasbeeninitiatedor,totheCompany’sknowledge,threatenedbytheCommission;asoftheapplicableeffectivedateoftheRegistrationStatementandanypost-effectiveamendmentthereto,theRegistrationStatementandanysuchpost-effectiveamendmentcompliedandwillcomplyinallmaterialrespectswiththeSecuritiesAct,anddidnotandwillnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactrequiredtobestatedthereinornecessaryinordertomakethestatementsthereinnotmisleading;andasofthedateoftheProspectusandanyamendmentorsupplementtheretoandasoftheClosingDateandasoftheAdditionalClosingDate,asthecasemaybe,theProspectuswillnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessaryinordertomakethestatementstherein,inthelightofthecircumstancesunderwhichtheyweremade,notmisleading;providedthattheCompanymakesnorepresentationandwarrantywithrespecttoanystatementsoromissionsmadeinrelianceuponandinconformitywith(i)informationrelatingtoanyUnderwriterfurnishedtotheCompanyinwritingbysuchUnderwriterthroughtheRepresentativesexpresslyforuseintheRegistrationStatementandtheProspectusandanyamendmentorsupplementthereto,itbeingunderstoodandagreedthattheonlysuchinformationfurnishedbyanyUnderwriterconsistsoftheinformationdescribedassuchinSection9(c)hereofor(ii)informationrelatingtoanySellingStockholderfurnishedtotheCompanyinwritingbyandonbehalfofsuchSellingStockholderexpresslyforuseintheRegistrationStatementandProspectusandanyamendmentorsupplementthereto,itbeingunderstoodandagreedthattheonlysuchinformationfurnishedbyanySellingStockholderconsistsoftheSellingStockholderInformation.

(e)FinancialStatements.Thefinancialstatements(includingtherelatednotesthereto)oftheCompanyanditsconsolidatedsubsidiariesincludedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectuscomplyinallmaterialrespectswiththeapplicablerequirementsoftheSecuritiesActandpresentfairlyinallmaterialrespectsthefinancialpositionoftheCompanyanditsconsolidatedsubsidiariesasofandforthedatesindicatedandtheresultsoftheiroperationsandthechangesintheircashflowsfortheperiodsspecified;suchfinancialstatementshavebeenpreparedinconformitywithgenerallyacceptedaccountingprinciplesintheUnitedStatesappliedonaconsistentbasisthroughouttheperiodscoveredthereby;andtheotherfinancialinformationincludedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectushasbeenderivedfromtheaccountingrecordsoftheCompanyanditsconsolidatedsubsidiariesandpresentsfairlyinallmaterialrespectstheinformationshownthereby.

(f)NoMaterialAdverseChange.SincetherespectivedatesasofwhichinformationisgivenintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,(i)therehasnotbeenanychangeinthecapitalstock(otherthantheissuanceofsharesofCommonStockuponexerciseofstockoptionsandwarrantsdescribedasoutstandingin,andthegrantofoptionsandequity-basedawardsundertheequity-basedcompensationplansoftheCompanyand

itssubsidiariesorotherequitycompensationarrangements,ineachcaseasdescribedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus),anymaterialchangeinshort-termdebtorlong-termdebtoftheCompanyoranyofitssubsidiaries(exceptasdisclosedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus),oranydividendordistributionofanykinddeclared,setasideforpayment,paidormadebytheCompanyonanyclassofcapitalstock(exceptasdisclosedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus),oranymaterialadversechange,oranydevelopmentinvolvingaprospectivematerialadversechange,inoraffectingthebusiness,properties,financialposition,stockholders’equityorresultsofoperationsoftheCompanyanditssubsidiariestakenasawhole;(ii)neithertheCompanynoranyofitssubsidiarieshasenteredintoanytransaction(whetherornotintheordinarycourseofbusiness)thatismaterialtotheCompanyanditssubsidiariestakenasawholeorincurredanyliabilityorobligation,directorcontingent,thatismaterialtotheCompanyanditssubsidiariestakenasawhole;and(iii)neithertheCompanynoranyofitssubsidiarieshassustainedanylossorinterferencewithitsbusinessthatismaterialtotheCompanyanditssubsidiariestakenasawholeandthatiseitherfromfire,explosion,floodorothercalamity,whetherornotcoveredbyinsurance,orfromanylabordisturbanceordisputeoranyaction,orderordecreeofanycourtorarbitratororgovernmentalorregulatoryauthority,exceptineachcaseasotherwisedisclosedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus.

(g)OrganizationandGoodStanding.TheCompanyandeachofitssubsidiarieshavebeendulyorganizedandarevalidlyexistingandingoodstandingunderthelawsoftheirrespectivejurisdictionsoforganization,aredulyqualifiedtodobusinessandareingoodstandingineachjurisdictioninwhichtheirrespectiveownershiporleaseofpropertyortheconductoftheirrespectivebusinessesrequiressuchqualification,andhaveallpowerandauthoritynecessarytoownorleasetheirrespectivepropertiesandtoconductthebusinessesinwhichtheyareengaged,exceptwherethefailuretobesoorganizedorexistingorqualifiedoringoodstandingorhavesuchpowerorauthoritywouldnot,individuallyorintheaggregate,reasonablybeexpectedtohaveamaterialadverseeffectonthebusiness,properties,financialposition,stockholders’equityorresultsofoperationsoftheCompanyanditssubsidiariestakenasawholeorontheperformancebytheCompanyofitsobligationsunderthisAgreement(a“MaterialAdverseEffect”).TheCompanydoesnotownorcontrol,directlyorindirectly,anycorporation,associationorotherentityotherthanthesubsidiarieslistedinExhibit21.1totheRegistrationStatement.

(h)Capitalization.TheCompanyonaconsolidatedbasishasanauthorizedcapitalizationassetforthintheRegistrationStatement,thePricingDisclosurePackageandtheProspectusundertheheading“Capitalization”;exceptasdescribedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,alltheoutstandingsharesofcapitalstockoftheCompany(includingtheSharestobesoldbytheSellingStockholders)havebeendulyandvalidlyauthorizedandissuedandarefullypaidandnon-assessableandarenotsubjecttoanypre-emptiveorsimilarrights;exceptasdescribedinorexpresslycontemplatedbytheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,therearenooutstandingrights(including,withoutlimitation,pre-emptiverights),warrantsoroptionstoacquire,orinstrumentsconvertibleintoorexchangeablefor,anysharesofcapitalstockorotherequityinterestintheCompanyoranyofitssubsidiaries,oranycontract,commitment,

agreement,understandingorarrangementofanykindrelatingtotheissuanceofanycapitalstockoftheCompanyoranysuchsubsidiary,anysuchconvertibleorexchangeablesecuritiesoranysuchrights,warrantsoroptions;thecapitalstockoftheCompanyconformsinallmaterialrespectstothedescriptionthereofcontainedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus;andalltheoutstandingsharesofcapitalstockorotherequityinterestsofeachsubsidiaryareowned,directlyorindirectly,bytheCompany(except,inthecaseofanyforeignsubsidiary,fordirectors’qualifyingshares),freeandclearofanylien,charge,encumbrance,securityinterest,restrictiononvotingortransferoranyotherclaimofanythirdparty(otherthanasdescribedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,includingliens,encumbrancesandrestrictionsimposedinconnectionwithorpermittedunderthedebtinstrumentsdescribedundertheheading“DescriptionofCertainIndebtedness”).

(i)DueAuthorization.TheCompanyhasfullright,powerandauthoritytoexecuteanddeliverthisAgreementandtoperformitsobligationshereunder;andallactionrequiredtobetakenbytheCompanyforthedueandproperauthorization,executionanddeliveryofthisAgreementbyitandtheconsummationbyitofthetransactionscontemplatedherebyhasbeendulyandvalidlytaken.

(j)UnderwritingAgreement.ThisAgreementhasbeendulyauthorized,executedanddeliveredbytheCompany.

(k)Shares.TheSharestobesoldbytheSellingStockholdershavebeenvalidlyissuedbytheCompany.

(l)NoViolationorDefault.NeithertheCompanynoranyofitssubsidiariesis(i)inviolationofitscharterorbylawsorsimilarorganizationaldocuments;(ii)indefault,andtotheknowledgeoftheCompany,noeventhasoccurredthat,withnoticeorlapseoftimeorboth,wouldconstitutesuchadefault,inthedueperformanceorobservanceofanyterm,covenantorconditioncontainedinanyindenture,mortgage,deedoftrust,loanagreementorotheragreementorinstrumenttowhichtheCompanyoranyofitssubsidiariesisapartyorbywhichtheCompanyoranyofitssubsidiariesisboundortowhichanyofthepropertyorassetsoftheCompanyoranyofitssubsidiariesissubject;or(iii)inviolationofanylaworstatuteoranyjudgment,order,ruleorregulationofanycourtorarbitratorofgovernmentalorregulatoryauthorityhavingjurisdictionovertheCompanyoranyofitsassets,except,inthecaseofclauses(ii)and(iii)above,foranysuchdefaultorviolation,thatwouldnot,individuallyorintheaggregate,reasonablybeexpectedtohaveaMaterialAdverseEffect.

(m)NoConflicts.Theexecution,deliveryandperformancebytheCompanyofthisAgreementandtheconsummationofthetransactionscontemplatedbythisAgreementand,withrespecttoclauses(i)and(ii)only,theconsummationoftheShareholderTransactionasdefinedinthePricingDisclosurePackageandtheProspectuswillnot(i)conflictwithorresultinabreachorviolationofanyofthetermsorprovisionsof,orconstituteadefaultunder,orresultinthecreationorimpositionofanylien,chargeorencumbranceuponanypropertyorassetsoftheCompanyoranyofitssubsidiariespursuantto,anyindenture,mortgage,deedoftrust,loanagreementorotheragreementorinstrumenttowhichtheCompanyoranyofitssubsidiariesisapartyorbywhichtheCompanyoranyofitssubsidiariesisboundortowhichanyofthe

propertyorassetsoftheCompanyoranyofitssubsidiariesissubject,(ii)resultinanyviolationoftheprovisionsofthecharterorby-lawsorsimilarorganizationaldocumentsoftheCompanyoranyofitssubsidiariesor(iii)resultintheviolationofanylaworstatuteoranyjudgment,order,ruleorregulationofanycourtorarbitratororgovernmentalorregulatoryauthorityhavingjurisdictionovertheCompanyoranyofitsproperties,except,inthecaseofclauses(i)and(iii)above,foranysuchconflict,breach,violationordefaultthatwouldnot,individuallyorintheaggregate,reasonablybeexpectedtohaveaMaterialAdverseEffect.

(n)NoConsentsRequired.Noconsent,approval,authorization,order,license,registrationorqualificationoforwithanycourtorarbitratororgovernmentalorregulatoryauthorityisrequiredfortheexecution,deliveryandperformancebytheCompanyofthisAgreementandtheconsummationofthetransactionscontemplatedbythisAgreement,exceptfor(i)theregistrationoftheSharesundertheSecuritiesActandsuchconsents,approvals,authorizations,ordersandregistrationsorqualificationsasmayberequiredbytheFinancialIndustryRegulatoryAuthority,Inc.(“FINRA”),theNewYorkStockExchangeandunderapplicablestateorforeignsecuritieslawsinconnectionwiththepurchaseanddistributionoftheSharesbytheUnderwriters,(ii)suchconsents,approvals,authorizations,orders,licenses,registrationsorqualificationsasshallhavebeenobtainedormadepriortotheClosingDateor(iii)suchconsents,approvals,authorizations,orders,licenses,registrationsorqualificationsthefailureofwhichtoobtainwouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect(collectively,the“Consents”).

(o)LegalProceedings.ExceptasdescribedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,therearenolegal,governmentalorregulatoryinvestigations,actions,suitsorproceedingspendingor,totheknowledgeoftheCompany,threatened,towhichtheCompanyoranyofitssubsidiariesisapartyortowhichanypropertyoftheCompanyoranyofitssubsidiariesisthesubjectthat,individuallyorintheaggregate,ifdeterminedadverselytotheCompanyoranyofitssubsidiaries,wouldreasonablybeexpectedtohaveaMaterialAdverseEffect;and(i)therearenocurrentorpendinglegal,governmentalorregulatoryactions,suitsorproceedingsthatarerequiredundertheSecuritiesActtobedescribedintheRegistrationStatement,thePricingDisclosurePackageortheProspectusthatarenotsodescribedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectusand(ii)therearenocontractsorotherdocumentsthatarerequiredundertheSecuritiesActtobefiledasexhibitstotheRegistrationStatementordescribedintheRegistrationStatement,thePricingDisclosurePackageortheProspectusthatarenotsofiledasexhibitstotheRegistrationStatementordescribedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus.

(p)IndependentAccountants.PricewaterhouseCoopersLLP,whohaveauditedcertainconsolidatedfinancialstatementsoftheCompanyanditssubsidiaries,isanindependentregisteredpublicaccountingfirmwithrespecttotheCompanyanditssubsidiarieswithintheapplicablerulesandregulationsadoptedbytheCommissionandthePublicCompanyAccountingOversightBoard(UnitedStates)andasrequiredbytheSecuritiesAct.

(q)TitletoRealandPersonalProperty.Exceptineachcaseas(i)wouldnotreasonablybeexpected,individuallyorintheaggregate,tohaveaMaterialAdverseEffector(ii)otherwisedisclosedintheRegistrationStatement,thePricingDisclosurePackageandthe

Prospectus,theCompanyanditssubsidiarieshavegoodandmarketabletitleinfeesimple(inthecaseofrealproperty)to,orhavevalidrightstoleaseorotherwiseuse,allitemsofrealandpersonalpropertythatarematerialtothebusinessoftheCompanyanditssubsidiaries,takenasawhole,ineachcasefreeandclearofallliens,encumbrances,claims,defectsandimperfectionsoftitleexceptthosethatdonotmateriallyinterferewiththeusemadeandproposedtobemadeofsuchpropertybytheCompanyanditssubsidiaries.

(r)TitletoIntellectualProperty.Exceptineachcaseas(i)wouldnotreasonablybeexpected,individuallyorintheaggregate,tohaveaMaterialAdverseEffector(ii)otherwisedisclosedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,theCompanyanditssubsidiariesownorhaveadequaterightstouseallpatents,patentapplications,trademarks,servicemarks,tradenames,trademarkregistrations,servicemarkregistrations,copyrights,licensesandknow-how(includingtradesecretsandotherunpatentedand/orunpatentableproprietaryorconfidentialinformation,systemsorprocedures)necessaryfortheconductoftheirrespectivebusinessesasdescribedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,andtheconductoftheirrespectivebusinesseswillnotconflictinanymaterialrespectwithanysuchrightsofothers.Exceptineachcaseas(i)wouldnotreasonablybeexpected,individuallyorintheaggregate,tohaveaMaterialAdverseEffector(ii)otherwisedisclosedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,theCompanyanditssubsidiarieshavenotreceivedanynoticeofanyclaimofinfringement,misappropriationorconflictwithanysuchrightsofothersinconnectionwithitspatents,patentrights,licenses,inventions,trademarks,servicemarks,tradenames,copyrightsandknow-how.

(s)NoUndisclosedRelationships.Norelationship,directorindirect,existsbetweenoramongtheCompanyoranyofitssubsidiaries,ontheonehand,andthedirectors,officersorstockholdersoftheCompanyoranyofitssubsidiaries,ontheother,thatisrequiredbytheSecuritiesActtobedescribedintheRegistrationStatementandtheProspectusandthatisnotsodescribedinsuchdocumentsandinthePricingDisclosurePackage.

(t)InvestmentCompanyAct.TheCompanyisnotrequiredtoregisterasan“investmentcompany”withinthemeaningoftheInvestmentCompanyActof1940,asamended,andtherulesandregulationsoftheCommissionthereunder(collectively,the“InvestmentCompanyAct”).

(u)Taxes.TheCompanyanditssubsidiarieshavepaidallfederal,state,localandforeigntaxesandfiledalltaxreturnsrequiredtobepaidorfiledthroughthedatehereof,excepttotheextentthefailuretopayorfile(asapplicable)doesnotandwouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect,andexceptforanytaxeswhichtheCompanyoranyofitssubsidiariesiscontestingingoodfaithandwithrespecttowhichadequatereserveshavebeenmade;andexceptasotherwisedisclosedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,thereisnotaxdeficiencythathasbeen,orcouldreasonablybeexpectedtobe,assertedagainsttheCompanyoranyofitssubsidiariesoranyoftheirrespectivepropertiesorassets,exceptforanydeficiencieswhichwouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect.

(v)LicensesandPermits;CompliancewithLaws.Exceptineachcaseas(i)wouldnotreasonablybeexpected,individuallyorintheaggregate,to

haveaMaterialAdverseEffector(ii)otherwisedisclosedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,theCompanyanditssubsidiaries(A)possess,andareoperatingincomplianceinallmaterialrespectswith,alllicenses,certificates,permitsandotherauthorizations,registrations,approvalsandclearancesissuedbytheappropriateU.S.federal,stateornon-U.S.regulatoryauthoritiesnecessarytoconducttheirrespectivebusinesses,(B)noneoftheCompanyoritssubsidiarieshasreceivedanynoticeofproceedingsrelatingtotherevocationormodificationofanysuchcertificate,authorizationorpermit,(C)isincompliancewithallapplicablefederal,state,localandforeignlaws,regulations,ordersanddecreesand(D)hasnotreceivedanycommunicationsfromanyfederal,state,localorprovincialgovernmentalauthoritieshavingjurisdictionovertheCompany,itssubsidiariesoranyoftheirproductsorbusinessoperationsassertingnoncompliancewithanysuchlaws,regulations,ordersordecreesapplicabletothedesign,manufacture,assembly,storage,labeling,sale,marketingortransportationoftheCompanyoritssubsidiaries’products.

(w)NoLaborDisputes.(i)NolabordisturbancebyordisputewiththeemployeesoftheCompanyoranyofitssubsidiariesexistsor,totheknowledgeoftheCompany,isthreatened,and(ii)theCompanyisnotawareofanyexistingorimminentlabordisturbanceby,ordisputewith,itoranyofitssubsidiaries’employees,exceptforeachofclauses(i)and(ii),aswouldnot,individuallyorintheaggregate,reasonablybeexpectedtohaveaMaterialAdverseEffect.

(x)CompliancewithandLiabilityunderEnvironmentalLaws.(A)TheCompanyanditssubsidiaries(i)areincompliancewithanyandallapplicableforeignandU.S.federal,stateandlocallaws,regulations,requirements,decisionsandordersrelatingtopollution,protectionoftheEnvironment,andprotectionofhumanhealthandsafety(assuchisaffectedbyexposuretoHazardousMaterialsincludingthoserelatingtotheReleaseorthreatofReleaseofHazardousMaterials)(“EnvironmentalLaws”);(ii)havereceivedandareincompliancewithallpermits,licensesorotherapprovalsrequiredofthemunderapplicableEnvironmentalLawstoconducttheirrespectivebusinessesandownandoperatetheirproperties;(iii)havenotreceivednoticeofanyactualorpotentialliabilityunder,oractualorallegedviolationof,anyEnvironmentalLaw,includingforinvestigationorremediationofanydisposalorreleaseofHazardousMaterials,andhavenoknowledgeofanyeventorconditionthatwouldreasonablybeexpectedtoresultinanysuchnotice,exceptineachcasewheresuchnon-compliancewithEnvironmentalLaws,failuretoreceiveorcomplywithrequiredpermits,licensesorotherapprovals,liabilityorviolation,wouldnotreasonablybeexpectedto,individuallyorintheaggregate,haveaMaterialAdverseEffect;and(B)exceptassetforthintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,(i)therearenoproceedingsthatarepending,orthatareknownbytheCompanytobethreatenedbyagovernmentalentity,againsttheCompanyoranyofitssubsidiariesunderEnvironmentalLawsinwhichagovernmentalentityisalsoaparty,otherthansuchproceedingsregardingwhichtheCompanyreasonablybelievesnomonetarysanctionsof$100,000ormorewillbeimposedonitoritssubsidiaries,and(ii)noneoftheCompanyanditssubsidiarieshasestimatesofanymaterialcapitalexpendituresthatitwillincurtocomplywithanyEnvironmentalLaws.ForpurposesofthisAgreement,“Environment”meansambientair,surfacewater,groundwater,soil,surfaceandsubsurfacestrata,andnaturalresourcessuchaswetlands,floraandfauna.“HazardousMaterials”

meansanysubstance,material,pollutant,contaminant,chemical,waste,compound,orconstituent,inanyform,includingwithoutlimitation,petroleumandpetroleumproducts,subjecttoregulationorwhichcangiverisetoliabilityunderanyEnvironmentalLaw.“Release”meansanyrelease,spill,emission,discharge,deposit,disposal,leaking,pumping,pouring,dumping,emptying,injectionorleachingintotheEnvironment,orinto,fromorthroughanybuilding,structureorfacility.

(y)CompliancewithERISA.(i)TheminimumfundingstandardunderSections412and430oftheInternalRevenueCodeof1986,asamended(the“Code”)andSections302and303oftheEmployeeRetirementIncomeSecurityActof1974,asamended,andtheregulationsandpublishedinterpretationsthereunder(“ERISA”),hasbeensatisfiedwithrespecttoeachpensionplan(asdefinedinSection3(2)ofERISA)subjecttoTitleIVofERISA(each,a“TitleIVPlan”)thathasbeenestablishedormaintainedbytheCompanyanditssubsidiaries;(ii)eachoftheCompanyanditssubsidiarieshasfulfilleditsobligations,ifany,underSection515ofERISA;(iii)eachpensionplanandwelfareplan(asdefinedinSection3(1)ofERISA)establishedormaintainedbytheCompanyanditssubsidiariesisincompliancewiththecurrentlyapplicableprovisionsofERISA;(iv)noprohibitedtransaction,withinthemeaningofSection406ofERISAorSection4975oftheCode,hasoccurredwithrespecttoanypensionplanexcludingtransactionseffectedpursuanttoastatutoryoradministrativeexemption;and(v)noneoftheCompanyanditssubsidiarieshasincurredor,exceptassetforthorcontemplatedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,wouldreasonablybeexpectedtoincuranywithdrawalliabilityunderSection4201ofERISA,anyliabilityunderSection4062,4063,or4064ofERISA,oranyotherliabilityunderTitleIVofERISA(otherthancontributionstopensionplansorpremiumstothePensionBenefitGuarantyCorporation,intheordinarycourseandwithoutdefault),except,ineachcasewithrespecttoclauses(i)through(v)hereof,aswouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect.

(z)DisclosureControls.TheCompanyanditssubsidiariesmaintainaneffectivesystemof“disclosurecontrolsandprocedures”(asdefinedinRule13a-15(e)oftheSecuritiesExchangeActof1934,asamended,the“ExchangeAct”)andsuchcontrolsandproceduresareeffectiveinensuringthatmaterialinformationrelatingtotheCompany,includingitssubsidiaries,isaccumulatedandcommunicatedtotheprincipalexecutiveofficerandtheprincipalfinancialofficer.

(aa)AccountingControls.TheCompanyanditssubsidiariesmaintainsystemsof“internalcontroloverfinancialreporting”(asdefinedinRule13a-15(f)oftheExchangeAct)sufficienttoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithU.S.generallyacceptedaccountingprinciples,including,butnotlimitedto,internalaccountingcontrolssufficienttoprovidereasonableassurancethat(i)transactionsareexecutedinaccordancewithmanagement’sgeneralorspecificauthorizations;(ii)transactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinconformitywithU.S.generallyacceptedaccountingprinciplesandtomaintainassetaccountability;(iii)accesstoassetsispermittedonlyinaccordancewithmanagement’sgeneralorspecificauthorization;and(iv)therecordedaccountabilityforassetsiscomparedwiththeexistingassetsatreasonableintervalsandappropriateactionistakenwithrespecttoanydifferences.ExceptasdisclosedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,noneofthe

Company,itsboardofdirectorsandauditcommitteehasknowledgeofanymaterialweaknessesintheCompany’sinternalcontrolsoverfinancialreporting.

(bb)Insurance.ExceptaswouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect,theCompanyanditssubsidiaries,takenasawhole,areinsuredagainstsuchlossesandrisksandinsuchamountsasareprudentandcustomaryinthebusinessesinwhichtheyareengagedorasrequiredbylaw.

(cc)NoUnlawfulPayments.NeithertheCompanynoranyofitssubsidiaries,nortotheknowledgeoftheCompany,anydirector,officer,employee,agentoraffiliateoftheCompanyoranyofitssubsidiariesorotherpersonassociatedwithoractingonbehalfoftheCompanyoranyofitssubsidiarieshas(i)usedanycorporatefundsforanyunlawfulcontribution,giftorentertainmentorotherunlawfulexpenserelatingtopoliticalactivity;(ii)madeortakenanactinfurtheranceofanoffer,promiseorauthorizationofanydirectorindirectunlawfulpaymentorunlawfulbenefittoanyforeignordomesticgovernmentofficialoremployee,includingofanygovernment-ownedorcontrolledentityorofapublicinternationalorganization,oranypersonactinginanofficialcapacityfororonbehalfofanyoftheforegoing,oranypoliticalpartyorpartyofficialorcandidateforpoliticaloffice;(iii)violated,isinviolationofanyprovisionoftheForeignCorruptPracticesActof1977,asamended,oranyapplicablelaworregulationimplementingtheOECDConventiononCombatingBriberyofForeignPublicOfficialsinInternationalBusinessTransactions,orcommittedanoffenceundertheBriberyAct2010oftheUnitedKingdom,oranyotherapplicableanti-briberyoranti-corruptionlaw;or(iv)made,offered,agreed,requestedortakenanact,infurtheranceofanyunlawfulbribeorotherunlawfulbenefit,including,withoutlimitation,anyunlawfulrebate,payoff,influencepayment,kickbackorotherunlawfulpaymentorunlawfulbenefit.TheCompanyanditssubsidiarieshaveconductedtheirbusinessesincompliancewithanti-corruptionlawsapplicabletotheCompanyoranyofitssubsidiariesandhaveinstituted,maintainandenforcepoliciesandproceduresdesignedtopromoteandensurecontinuedcompliancewithallanti-briberyandanti-corruptionlawsapplicabletotheCompanyoranyofitssubsidiaries.

(dd)CompliancewithAnti-MoneyLaunderingLaws.TheoperationsoftheCompanyanditssubsidiariesareandhavebeenconductedatalltimesduringthepastfiveyearsincompliancewithapplicablefinancialrecordkeepingandreportingrequirements,includingthoseoftheCurrencyandForeignTransactionsReportingActof1970,asamended,theapplicableanti-moneylaunderingstatutesofalljurisdictionswheretheCompanyoranyofitssubsidiariesconductsbusiness,therulesandregulationsthereunderandanyrelatedorsimilarrules,regulationsorguidelines,issued,administeredorenforcedbyanygovernmentalagency(collectively,the“Anti-MoneyLaunderingLaws”),andnoaction,suitorproceedingbyorbeforeanycourtorgovernmentalagency,authorityorbodyoranyarbitratorinvolvingtheCompanyoranyofitssubsidiarieswithrespecttotheAnti-MoneyLaunderingLawsispendingor,totheknowledgeoftheCompany,threatened.

(ee)NoConflictswithSanctionsLaws.NeithertheCompanynoranyofitssubsidiaries,nortotheknowledgeoftheCompany,anydirector,officer,agent,employeeorcontrolledaffiliateorotherpersonassociatedwithoractingonbehalfoftheCompanyoranyofitssubsidiariesis,orisownedorcontrolledbyaPersonthatis,(i)currentlythesubjectorthetargetofanysanctionsadministeredorenforcedbytheU.S.government(including,without

limitation,theOfficeofForeignAssetsControloftheU.S.DepartmentoftheTreasury(“OFAC”)ortheU.S.DepartmentofStateandincluding,withoutlimitation,thedesignationasa“speciallydesignatednational”or“blockedperson”),theUnitedNationsSecurityCouncil,theEuropeanUnionorHerMajesty’sTreasury(collectively,“Sanctions”),nor(ii)currentlylocated,organizedorresidentinacountryorterritorythatisthesubjectortargetofSanctions,including,withoutlimitation,Cuba,Iran,NorthKorea,Sudan,SyriaandCrimea(each,a“SanctionedCountry”).Forthepastfiveyears,theCompanyanditssubsidiarieshavenotknowinglyengagedinandarenotnowknowinglyengagedinanydealingsortransactionswithanypersonthatatthetimeofthedealingortransactionisorwasthesubjectorthetargetofSanctionsorwithanySanctionedCountry.

(ff)NoRestrictionsonSubsidiaries.ExceptasdescribedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,nosubsidiaryoftheCompanyiscurrentlyprohibited,directlyorindirectly,underanyagreementorotherinstrumenttowhichitisapartyorissubject,frompayinganydividendstotheCompany,frommakinganyotherdistributiononsuchsubsidiary’scapitalstock,fromrepayingtotheCompanyanyloansoradvancestosuchsubsidiaryfromtheCompanyorfromtransferringanyofsuchsubsidiary’spropertiesorassetstotheCompanyoranyothersubsidiaryoftheCompany.

(gg)NoBroker’sFees.NeithertheCompanynoranyofitssubsidiariesisapartytoanycontract,agreementorunderstandingwithanyperson(otherthanthisAgreement)thatwouldgiverisetoavalidclaimagainsttheCompanyoranyofitssubsidiariesoranyUnderwriterforabrokeragecommission,finder’sfeeorlikepaymentinconnectionwiththeofferingandsaleoftheShares.

(hh)NoRegistrationRights.ExceptasdescribedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,nopersonhastherighttorequiretheCompanyoranyofitssubsidiariestoregisteranysecuritiesforsaleundertheSecuritiesActbyreasonofthefilingoftheRegistrationStatementwiththeCommissionor,totheknowledgeoftheCompany,thesaleoftheSharestobesoldbytheSellingStockholdershereunder.

(ii)NoStabilization.TheCompanyhasnottaken,directlyorindirectly,anyactiondesignedtoorthatcouldreasonablybeexpectedtocauseorresultinanystabilizationormanipulationofthepriceoftheShares.

(jj)Forward-LookingStatements.Noforward-lookingstatement(withinthemeaningofSection27AoftheSecuritiesActandSection21EoftheExchangeAct)containedintheRegistrationStatement,thePricingDisclosurePackageortheProspectushasbeenmadeorreaffirmedwithoutareasonablebasisorhasbeendisclosedotherthaningoodfaith.

(kk)StatisticalandMarketData.NothinghascometotheattentionoftheCompanythathascausedtheCompanytobelievethatthestatisticalandmarket-relateddataincludedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectusisnotbasedonorderivedfromsourcesthatarereliableandaccurateinallmaterialrespects.

(ll)Sarbanes-OxleyAct.TheCompanyhastakenallnecessaryactionssuchthat,upontheeffectivenessoftheRegistrationStatement,itwillbeinmaterialcompliancewithall

provisionsoftheSarbanes-OxleyActof2002,asamended,andtherulesandregulationspromulgatedinconnectiontherewith(the“Sarbanes-OxleyAct”)withwhichtheCompanyisrequiredtocomplyasofsuchtime.

(mm)StatusundertheSecuritiesAct.AtthetimeoffilingtheRegistrationStatementandanypost-effectiveamendmentthereto,attheearliesttimethereafterthattheCompanyoranyofferingparticipantmadeabonafideoffer(withinthemeaningofRule164(h)(2)undertheSecuritiesAct)oftheSharesandatthedatehereof,theCompanywasnotandisnotan“ineligibleissuer,”asdefinedinRule405undertheSecuritiesAct.

(nn)DirectedShareProgram.TheCompanyhasnotoffered,orcausedtheUnderwriterstooffer,SharestoanypersonpursuanttotheDirectedShareProgramwiththespecificintenttounlawfullyinfluence(i)acustomerorsupplieroftheCompanytoalterthecustomerorsupplier’slevelortypeofbusinesswiththeCompany,or(ii)atradejournalistorpublicationtowriteorpublishfavorableinformationabouttheCompanyoritsproducts.

4.RepresentationsandWarrantiesoftheSellingStockholders.EachoftheSellingStockholdersseverally,andnotjointly,representsandwarrantstoeachUnderwriterandtheCompanythat:

(a)RequiredConsents;Authority.ExceptfortheConsents,allconsents,approvals,authorizationsandordersnecessaryfortheexecutionanddeliverybysuchSellingStockholderofthisAgreement,andforthesaleanddeliveryoftheSharestobesoldbysuchSellingStockholderhereunder,havebeenobtained;andsuchSellingStockholderhasfullright,powerandauthoritytoenterintothisAgreement,andtosell,assign,transferanddelivertheSharestobesoldbysuchSellingStockholderhereunder;thisAgreementhasbeendulyauthorized,executedanddeliveredbyoronbehalfofsuchSellingStockholder.

(b)NoConflicts.Noneoftheexecution,deliveryandperformanceofthisAgreementbyoronbehalfofsuchSellingStockholder,thesaleofthe

SharestobesoldbysuchSellingStockholderortheconsummationofanyotherofthetransactionscontemplatedbythisAgreementorthefulfillmentofthetermshereoforthereofandtheconsummationoftheShareholderTransactionasdefinedinthePricingDisclosurePackageandtheProspectuswillconflictwith,resultinabreachorviolationofanyofthetermsorprovisionsof,orconstituteadefaultunder,orresultinthecreationorimpositionofanylien,chargeorencumbranceuponanypropertyorassetsofsuchSellingStockholderpursuantto(i)thetermsofanyindenture,contract,lease,mortgage,deedoftrust,noteagreement,loanagreementorotheragreement,obligation,condition,covenantorinstrumenttowhichsuchSellingStockholderisapartyorboundortowhichitspropertyissubject;(ii)theprovisionsofthecharterorby-lawsorsimilarorganizationaldocumentsofsuchSellingStockholder;or(iii)anystatute,law,rule,regulation,judgment,orderordecreeofanycourt,regulatorybody,administrativeagency,governmentalbody,arbitratororotherauthorityhavingjurisdictionoversuchSellingStockholderoranyofitsproperties,otherthaninthecasesofclauses(i)and(iii),suchbreaches,violations,conflicts,defaults,liens,chargesorencumbrancesthatwouldnot,individuallyorintheaggregate,reasonablybeexpectedtomateriallyimpairtheabilityofsuchSellingStockholdertoconsummatethetransactionscontemplatedhereby.

(c)NoConflictswithSanctionsLaws.SuchSellingStockholderwillnotdirectlyorindirectlyusetheproceedsoftheofferingoftheShares

hereunder,orlend,contributeorotherwisemakeavailablesuchproceedstoanysubsidiary,jointventurepartnerorotherpersonorentity(i)tofundorfacilitateanyactivitiesoforbusinesswithanypersonthat,atthetimeofsuchfundingorfacilitation,isthesubjectortargetofSanctions,(ii)tofundorfacilitateanyactivitiesoforbusinessinanySanctionedCountryor(iii)inanyothermannerthatwillresultinaviolationbyanyperson(includinganypersonparticipatinginthetransaction,whetherasunderwriter,advisor,investororotherwise)ofSanctions.

(d)TitletoShares.SuchSellingStockholderhasgoodandvalidtitleoravalid“securityentitlement”(withinthemeaningSection8-102(a)(17)of

theNewYorkUniformCommercialCode(the“UCC”))totheSharestobesoldattheClosingDateortheAdditionalClosingDate,asthecasemaybe,bysuchSellingStockholderhereunder,freeandclearofallliens,encumbrances,equitiesoradverseclaims;suchSellingStockholderwillhave,immediatelypriortotheClosingDateortheAdditionalClosingDate,asthecasemaybe,goodandvalidtitleoravalid“securityentitlement”(withinthemeaningSection8-102(a)(17)oftheUCC)totheSharestobesoldattheClosingDateortheAdditionalClosingDate,asthecasemaybe,bysuchSellingStockholder,freeandclearofallliens,encumbrances,equitiesoradverseclaims;and,assumingthateachUnderwriterandDTCorothersecuritiesintermediaryacquiresitsinterestintheSharesithaspurchasedfromsuchSellingStockholderwithoutnoticeofanyadverseclaim(withinthemeaningofSection8-105oftheUCC),eachUnderwriterthathaspurchasedsuchSharesdeliveredontheClosingDateortheAdditionalClosingDate,asthecasemaybe,toDTCorothersecuritiesintermediarybymakingpaymentthereforasprovidedherein,andthathashadsuchSecuritiescreditedtothesecuritiesaccountoraccounts(withinthemeaningofSection8-501oftheUCC)ofsuchUnderwritersmaintainedwithDTCorsuchothersecuritiesintermediarywillhaveacquiredasecurityentitlement(withinthemeaningofSection8-102(a)(17)oftheUCC)tosuchSharespurchasedbysuchUnderwriter,andnoactionbasedonanadverseclaim(withinthemeaningofSection8-102(a)(1)oftheUCC)maybeassertedagainstsuchUnderwriterwithrespecttosuchShares;forpurposesofthisrepresentation,suchSellingStockholdermayassumethatwhensuchpayment,delivery(withinthemeaningofSection8-301oftheUCC)andcreditingoccur,(x)suchShareswillhavebeenregisteredinthenameofCede&Co.oranothernomineedesignatedbyDTC,ineachcaseontheCompany’sshareregistryinaccordancewithitscharter,by-lawsandapplicablelaw,(y)DTCwillberegisteredasa“clearingcorporation”(withinthemeaningofSection8-102oftheUCC)and(z)appropriateentriestothesecuritiesaccounts(withinthemeaningofSection8-501oftheUCC)oftheseveralUnderwritersontherecordsofDTCwillhavebeenmadepursuanttotheUCC.

(e)NoStabilization.SuchSellingStockholderhasnottakenandwillnottake,directlyorindirectly,anyactiondesignedtoorthatwould

reasonablybeexpectedtocauseorresultinanystabilizationormanipulationofthepriceoftheShares.

(f)PricingDisclosurePackage.ThePricingDisclosurePackage,attheApplicableTime,didnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessaryinordertomakethestatementstherein,inthelightofthecircumstancesunderwhichtheyweremade,notmisleading;providedthatsuchrepresentationsandwarrantiessetforthinthisparagraph(f)applyonlytostatementsoromissionsmadeinrelianceuponandin

conformitywithinformationrelatingtosuchSellingStockholderfurnishedtotheCompanyinwritingbyoronbehalfofsuchSellingStockholderexpresslyforuseintheRegistrationStatement,thePricingDisclosurePackageandtheProspectusandanyamendmentorsupplementthereto,itbeingunderstoodandagreedthattheonlysuchinformationfurnishedbyoronbehalfofanySellingStockholderconsistsonlyof(i)thelegalname,addressandthenumberofsharesofCommonStockownedbysuchSellingStockholder,beforeandaftertheoffering,and(ii)theotherinformation(excludingpercentages)withrespecttosuchSellingStockholderwhichappearsinthetable(andcorrespondingfootnotes)underthecaption“PrincipalandSellingStockholders”ineachcase,intheRegistrationStatement,anyPreliminaryProspectus,theProspectusoranyIssuerFreeWritingProspectus(withrespecttoeachSellingStockholder,the“SellingStockholderInformation”).

(g)IssuerFreeWritingProspectus.OtherthantheRegistrationStatement,thePreliminaryProspectusandtheProspectus,suchSelling

Stockholderhasnotprepared,used,authorized,approvedorreferredtoandwillnotprepare,use,authorize,approveorrefertoany“writtencommunication”(asdefinedinRule405undertheSecuritiesAct)thatconstitutesanoffertosellorsolicitationofanoffertobuytheShares(eachsuchcommunicationbytheCompanyoritsagentsandrepresentatives(otherthanacommunicationreferredtoinclause(i)below)an“IssuerFreeWritingProspectus”)otherthan(i)anydocumentnotconstitutingaprospectuspursuanttoSection2(a)(10)(a)oftheSecuritiesActorRule134undertheSecuritiesActor(ii)thedocumentslistedonAnnexAhereto,eachelectronicroadshowandanyotherwrittencommunicationsapprovedinwritinginadvancebytheRepresentatives.

(h)RegistrationStatementandProspectus.AsoftheapplicableeffectivedateoftheRegistrationStatementandanypost-effectiveamendment

thereto,theRegistrationStatementandanysuchpost-effectiveamendment,didnotandwillnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactrequiredtobestatedthereinornecessaryinordertomakethestatementsthereinnotmisleading;andasofthedateoftheProspectusandanyamendmentorsupplementtheretoandasoftheClosingDateandasoftheAdditionalClosingDate,asthecasemaybe,theProspectuswillnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessaryinordertomakethestatementstherein,inthelightofthecircumstancesunderwhichtheyweremade,notmisleading;providedthatsuchrepresentationsandwarrantiessetforthinthisparagraph(h)applyonlytostatementsoromissionsmadeinrelianceuponandinconformitywithinformationrelatingtosuchSellingStockholderfurnishedinwritingbyoronbehalfofsuchSellingStockholderexpresslyforuseintheRegistrationStatement,anypost-effectiveamendmenttheretoandtheProspectusandanyamendmentorsupplementthereto,itbeingunderstoodandagreedthattheonlysuchinformationfurnishedbyoronbehalfofanySellingStockholderconsistsoftheSellingStockholderInformationofsuchSellingStockholder.

(i)TaxIndemnity.EachSellingStockholder,severallyandnotjointly,agreestoindemnifyandholdharmlesstheUnderwritersagainstany

documentary,stamp,registrationorsimilarissuancetax,includinganyinterestandpenalties,onthesaleoftheSharesbytheSellingStockholderstotheUnderwritersandontheexecutionanddeliveryofthisAgreement.AllindemnitypaymentstobemadebytheSellingStockholdershereunderinrespectofthisSection4(j)shallbemadewithoutwithholdingordeductionfororonaccountofanypresentorfutureRepublicofKoreataxes,dutiesorgovernmentalshareswhatsoeverunlesssuchSelling

Stockholderiscompelledbylawtodeductorwithholdsuchtaxes,dutiesorcharges.Inthatevent,exceptforanynetincome,capitalgainsorfranchisetaxesimposedontheUnderwritersbytheRepublicofKoreaoranypoliticalsubdivisionortaxingauthoritythereoforthereinasaresultofanypresentorformerconnection(otherthananyconnectionresultingfromthetransactionscontemplatedbythisAgreement)betweentheUnderwritersandthejurisdictionimposingsuchwithholdingordeductions,suchSellingStockholdershallpaysuchadditionalamountsasmaybenecessaryinordertoensurethatthenetamountsreceivedaftersuchwithholdingordeductionsshallequaltheamountsthatwouldhavebeenreceivedifnowithholdingordeductionhasbeenmade.Itisunderstood,however,thattheUnderwriterswillpayanydocumentary,stamp,registrationorsimilarissuancetaxespayableonresaleofanyoftheSharesbythem.

5.FurtherAgreementsoftheCompany.TheCompanycovenantsandagreeswitheachUnderwriterthat:

(a)RequiredFilings.TheCompanywillfilethefinalProspectuswiththeCommissionwithinthetimeperiodsspecifiedbyRule424(b)and

Rule430A,430Bor430CundertheSecuritiesAct,willfileanyIssuerFreeWritingProspectustotheextentrequiredbyRule433undertheSecuritiesAct,andwillfurnishcopiesoftheProspectusandeachIssuerFreeWritingProspectus(totheextentnotpreviouslydelivered)totheUnderwritersinNewYorkCitypriorto10:00A.M.,NewYorkCitytime,onthesecondbusinessdaynextsucceedingthedateofthisAgreementinsuchquantitiesastheRepresentativesmayreasonablyrequest.

(b)DeliveryofCopies.TheCompanywilldeliver,uponwrittenrequestandwithoutcharge,(i)totheRepresentatives,threesignedcopiesoftheRegistrationStatementasoriginallyfiledandeachamendmentthereto,ineachcaseincludingallexhibitsandconsentsfiledtherewith;and(ii)(A)toeachUnderwriteraconformedcopyoftheRegistrationStatementasoriginallyfiledandeachamendmentthereto(withoutexhibits)and(B)toeachUnderwriterandsuchdealersastheRepresentativesmaydesignate,duringtheProspectusDeliveryPeriod(asdefinedbelow),asmanycopiesoftheProspectus(includingallamendmentsandsupplementstheretoandeachIssuerFreeWritingProspectus)astheRepresentativesmayreasonablyrequest.Asusedherein,theterm“ProspectusDeliveryPeriod”meanssuchperiodoftimeafterthefirstdateofthepublicofferingoftheSharesasintheopinionofcounselfortheUnderwritersaprospectusrelatingtotheSharesisrequiredbylawtobedelivered(orrequiredtobedeliveredbutforRule172undertheSecuritiesAct)inconnectionwithsalesoftheSharesbyanyUnderwriterordealer.

(c)AmendmentsorSupplements,IssuerFreeWritingProspectuses.Beforeusing,authorizing,approving,referringtoorfilinganyIssuerFreeWritingProspectus,andbeforefilinganyamendmentorsupplementtotheRegistrationStatementortheProspectus,theCompanywillfurnishtotheRepresentativesandcounselfortheUnderwritersacopyoftheproposedIssuerFreeWritingProspectus,amendmentorsupplementforreviewandwillnotuse,authorize,approve,refertoorfileanysuchIssuerFreeWritingProspectusorfileanysuchproposedamendmentorsupplementtowhichtheRepresentativesreasonablyobjectbywrittennoticetotheCompany.

(d)NoticetotheRepresentatives.TheCompanywilladvisetheRepresentativespromptly,andconfirmsuchadviceinwriting,(i)oftheissuanceby

theCommissionofanyordersuspendingtheeffectivenessoftheRegistrationStatementorpreventingorsuspendingtheuseofanyPreliminaryProspectus,anyofthePricingDisclosurePackage,theProspectusortheinitiationorthreateningofanyproceedingforthatpurposeorpursuanttoSection8AoftheSecuritiesAct;(ii)oftheoccurrenceofanyeventwithintheProspectusDeliveryPeriodasaresultofwhichtheProspectus,thePricingDisclosurePackageoranyIssuerFreeWritingProspectusasthenamendedorsupplementedwouldincludeanyuntruestatementofamaterialfactoromittostateamaterialfactnecessaryinordertomakethestatementstherein,inthelightofthecircumstancesexistingwhentheProspectus,thePricingDisclosurePackageoranysuchIssuerFreeWritingProspectusisdeliveredtoapurchaser,notmisleading;(iii)whenanysupplementtotheProspectusoranyIssuerFreeWritingProspectusoranyamendmenttotheProspectushasbeenfiledordistributed;(iv)ofanyrequestbytheCommissionforanyamendmenttotheRegistrationStatementoranyamendmentorsupplementtotheProspectusorthereceiptofanycommentsfromtheCommissionrelatingtotheRegistrationStatementoranyotherrequestbytheCommissionforanyadditionalinformation;and(v)ofthereceiptbytheCompanyofanynoticewithrespecttoanysuspensionofthequalificationoftheSharesforofferandsaleinanyjurisdictionortheinitiationorthreateningofanyproceedingforsuchpurpose;andtheCompanywilluseitsbesteffortstopreventtheissuanceofanysuchordersuspendingtheeffectivenessoftheRegistrationStatement,preventingorsuspendingtheuseofanyPreliminaryProspectus,anyofthePricingDisclosurePackageortheProspectusorsuspendinganysuchqualificationoftheSharesand,ifanysuchorderisissued,willobtainassoonaspossiblethewithdrawalthereof.

(e)OngoingCompliance.(1)IfduringtheProspectusDeliveryPeriod(i)anyeventshalloccurorconditionshallexistasaresultofwhichtheProspectusasthenamendedorsupplementedwouldincludeanyuntruestatementofamaterialfactoromittostateanymaterialfactnecessaryinordertomakethestatementstherein,inthelightofthecircumstancesexistingwhentheProspectusisdeliveredtoapurchaser,notmisleadingor(ii)itisnecessarytoamendorsupplementtheProspectustocomplywithlaw,theCompanywillimmediatelynotifytheUnderwritersthereofandforthwithprepareand,subjecttoparagraph(c)above,filewiththeCommissionand,uponreasonablerequest,furnishtotheUnderwritersandtosuchdealersastheRepresentativesmaydesignatesuchamendmentsorsupplementstotheProspectusasmaybenecessarysothatthestatementsintheProspectusassoamendedorsupplementedwillnot,inthelightofthecircumstancesexistingwhentheProspectusisdeliveredtoapurchaser,bemisleadingorsothattheProspectuswillcomplywithlawand(2)ifatanytimepriortotheClosingDate(i)anyeventshalloccurorconditionshallexistasaresultofwhichthePricingDisclosurePackageasthenamendedorsupplementedwouldincludeanyuntruestatementofamaterialfactoromittostateanymaterialfactnecessaryinordertomakethestatementstherein,inthelightofthecircumstancesexistingwhenthePricingDisclosurePackageisdeliveredtoapurchaser,notmisleadingor(ii)itisnecessarytoamendorsupplementthePricingDisclosurePackagetocomplywithlaw,theCompanywillimmediatelynotifytheUnderwritersthereofandforthwithprepareand,subjecttoparagraph(c)above,filewiththeCommission(totheextentrequired)and,uponreasonablerequest,furnishtotheUnderwritersandtosuchdealersastheRepresentativesmaydesignatesuchamendmentsorsupplementstothePricingDisclosurePackageasmaybenecessarysothatthestatementsinthePricingDisclosurePackageasso

amendedorsupplementedwillnot,inthelightofthecircumstancesexistingwhenthePricingDisclosurePackageisdeliveredtoapurchaser,bemisleadingorsothatthePricingDisclosurePackagewillcomplywithlaw.

(f)BlueSkyCompliance.TheCompanywillqualifytheSharesforofferandsaleunderthesecuritiesorBlueSkylawsofsuchjurisdictionsastheRepresentativesshallreasonablyrequestandwillcontinuesuchqualificationsineffectsolongasrequiredfordistributionoftheShares;providedthattheCompanyshallnotberequiredto(i)qualifyasaforeigncorporationorotherentityorasadealerinsecuritiesinanysuchjurisdictionwhereitwouldnototherwiseberequiredtosoqualify,(ii)fileanygeneralconsenttoserviceofprocessinanysuchjurisdictionor(iii)subjectitselftotaxationinanysuchjurisdictionifitisnototherwisesosubject.

(g)EarningsStatement.TheCompanywillmakegenerallyavailabletoitssecurityholdersandtheRepresentativesassoonaspracticable(whichmaybesatisfiedbyfilingwiththeCommission’sElectronicDataGathering,AnalysisandRetrievalsystem)anearningsstatement(whichneednotbeaudited)thatsatisfiestheprovisionsofSection11(a)oftheSecuritiesActandRule158oftheCommissionpromulgatedthereundercoveringaperiodofatleasttwelvemonthsbeginningwiththefirstfiscalquarteroftheCompanyoccurringafterthe“effectivedate”(asdefinedinRule158)oftheRegistrationStatement.

(h)ClearMarket.Foraperiodof180daysafterthedateoftheProspectus,theCompanywillnot(i)offer,pledge,sell,contracttosell,sellanyoptionorcontracttopurchase,purchaseanyoptionorcontracttosell,grantanyoption,rightorwarranttopurchase,orotherwisetransferordisposeof,directlyorindirectly,orfilewiththeCommissionaregistrationstatementundertheSecuritiesActrelatingto,anysharesofStockoranysecuritiesconvertibleintoorexercisableorexchangeableforStock,orpubliclydisclosetheintentiontomakeanyoffer,sale,pledge,dispositionorfiling,or(ii)enterintoanyswaporotheragreementthattransfers,inwholeorinpart,anyoftheeconomicconsequencesofownershipoftheStockoranysuchothersecurities,whetheranysuchtransactiondescribedinclause(i)or(ii)aboveistobesettledbydeliveryofStockorsuchothersecurities,incashorotherwise,withoutthepriorwrittenconsentoftheRepresentatives,otherthan(A)theSharestobesoldhereunder,(B)anyoptionsorotherawards(includingwithoutlimitationrestrictedstock,restrictedstockunitsorperformancestockunits),orsharesofCommonStockissuedwithrespecttoorinsettlementofsuchoptionsandotherawards,grantedunderCompanyStockPlansorotherwiseinequitycompensationarrangements,ineachcaseasineffectonthedatehereofanddescribedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus,withdirectors,officers,employeesandconsultantsoftheCompanyanditssubsidiaries,(C)aregistrationstatementonFormS-8,includingamendmentsthereto,(D)theissuanceofCommonStockinconnectionwiththeacquisitionoftheassetsof,oramajorityorcontrollingportionoftheequityof,orabusinesscombinationorajointventurewith,anotherentityinconnectionwithsuchbusinesscombinationorsuchacquisitionbytheCompanyoranyofitssubsidiariesofsuchentity,providedthattheaggregatenumberofsharesissuedorissuablepursuanttothisclause(D)doesnotexceed10%ofthenumberofsharesofCommonStockoutstandingimmediatelyaftertheofferingoftheSharespursuanttothisAgreementandpriortosuchissuanceeachrecipientofanysuchsecuritiesshallexecuteanddelivertotheRepresentativesanagreementsubstantiallyintheformofExhibitCheretoand(E)anysharesofCommonStockissuedupontheexerciseofor

insettlementofoptionsorotherawards(includingwithoutlimitationrestrictedstock,restrictedstockunits,performancestockunitsorequityappreciationrights)grantedunderCompanyStockPlansorotherwiseinequitycompensationarrangementsdescribedinclause(B)above.

IftheRepresentatives,intheirsolediscretion,agreetoreleaseorwaivetherestrictionssetforthinalock-upletterdescribedinSection8(m)hereofforanofficerordirectoroftheCompanyandprovidetheCompanywithnoticeoftheimpendingreleaseorwaiveratleastthreebusinessdaysbeforetheeffectivedateofthereleaseorwaiver,theCompanyagreestoannouncetheimpendingreleaseorwaiverbyapressreleasesubstantiallyintheformofExhibitBheretothroughamajornewsserviceatleasttwobusinessdaysbeforetheeffectivedateofthereleaseorwaiver.

(i)NoStabilization.TheCompanywillnottake,directlyorindirectly,anyactiondesignedtoorthatcouldreasonablybeexpectedtocauseorresultinanystabilizationormanipulationofthepriceoftheStock.

(j)ExchangeListing.TheCompanywilluseitsbesteffortstolist,subjecttonoticeofissuance,theSharesontheNewYorkStockExchange(the“Exchange”).

(k)Reports.DuringaperiodoftwoyearsfromtheeffectivedateoftheRegistrationStatement,theCompanywillfurnishtotheRepresentatives,assoonastheyareavailable,copiesofallreportsorothercommunications(financialorother)furnishedtoallholdersoftheShares,andcopiesofanyreportsandfinancialstatementsfurnishedtoorfiledwiththeCommissionoranynationalsecuritiesexchangeorautomaticquotationsystem;providedtheCompanywillbedeemedtohavefurnishedsuchreportsandfinancialstatementstotheRepresentativestotheextenttheyarefiledontheCommission’sElectronicDataGathering,Analysis,andRetrievalsystem.

(l)RecordRetention.TheCompanywill,pursuanttoreasonableproceduresdevelopedingoodfaith,retaincopiesofeachIssuerFreeWritingProspectusthatisnotfiledwiththeCommissioninaccordancewithRule433undertheSecuritiesAct.

(m)DirectedShareProgram.TheCompanywillcomplywithallapplicablesecuritiesandotherlaws,rulesandregulationsineachjurisdictioninwhichtheDirectedSharesareofferedinconnectionwiththeDirectedShareProgram.

6.FurtherAgreementsoftheSellingStockholders.EachoftheSellingStockholders,severallyandnotjointly,covenantsandagreeswitheachUnderwriterthat:

(a)NoStabilization.SuchSellingStockholderwillnottake,directlyorindirectlyanyactiondesignedtoorthatwouldreasonablybeexpectedtocauseorresultinanystabilizationormanipulationofthepriceoftheStock.

(b)TaxForm.SuchSellingStockholderwilldelivertotheRepresentativespriortoorattheClosingDateaproperlycompletedandexecutedUnitedStatesTreasuryDepartmentForm

W-9orW-8(orotherapplicableformorstatementspecifiedbytheTreasuryDepartmentregulationsinlieuthereof).

7.CertainAgreementsoftheUnderwriters.EachUnderwriterherebyrepresentsandagreesthat:

(a)Ithasnotused,authorizeduseof,referredtoorparticipatedintheplanningforuseof,andwillnotuse,authorizeuseof,refertoorparticipateintheplanningforuseof,any“freewritingprospectus”,asdefinedinRule405undertheSecuritiesAct(whichtermincludesuseofanywritteninformationfurnishedtotheCommissionbytheCompanyandnotincludedintheRegistrationStatementandanypressreleaseissuedbytheCompany)otherthan(i)afreewritingprospectusthatcontainsno“issuerinformation”(asdefinedinRule433(h)(2)undertheSecuritiesAct)thatwasnotincludedinthePreliminaryProspectusorapreviouslyfiledIssuerFreeWritingProspectus,(ii)anyIssuerFreeWritingProspectuslistedonAnnexAorpreparedpursuanttoSection3(c)orSection5(c)above(includinganyelectronicroadshowapprovedinadvancebytheCompany),or(iii)anyfreewritingprospectuspreparedbysuchunderwriterandapprovedbytheCompanyinadvanceinwriting(eachsuchfreewritingprospectusreferredtoinclauses(i)or(iii),an“UnderwriterFreeWritingProspectus”).

(b)Ithasnotandwillnot,withoutthepriorwrittenconsentoftheCompany,useanyfreewritingprospectusthatcontainsthefinaltermsoftheSharesunlesssuchtermshavepreviouslybeenincludedinafreewritingprospectusfiledwiththeCommission;providedthatUnderwritersmayuseatermsheetsubstantiallyintheformofAnnexCheretowithouttheconsentoftheCompany;provided,furtherthatanyUnderwriterusingsuchtermsheetshallnotifytheCompany,andprovideacopyofsuchtermsheettotheCompany,priorto,orsubstantiallyconcurrentlywith,thefirstuseofsuchtermsheet.

(c)ItisnotsubjecttoanypendingproceedingunderSection8AoftheSecuritiesActwithrespecttotheoffering(andwillpromptlynotifytheCompanyandtheSellingStockholdersifanysuchproceedingagainstitisinitiatedduringtheProspectusDeliveryPeriod).

8.ConditionsofUnderwriters’Obligations.TheobligationofeachUnderwritertopurchasetheUnderwrittenSharesontheClosingDateortheOptionSharesontheAdditionalClosingDate,asthecasemaybe,asprovidedhereinissubjecttotheperformancebytheCompanyandeachoftheSellingStockholdersoftheirrespectivecovenantsandotherobligationshereunderinallmaterialrespectsandtothefollowingadditionalconditions:

(a)RegistrationCompliance;NoStopOrder.NoordersuspendingtheeffectivenessoftheRegistrationStatementshallbeineffect,andnoproceedingforsuchpurposeorpursuanttoSection8AundertheSecuritiesActshallbependingbeforeorthreatenedbytheCommission;theProspectusandeachIssuerFreeWritingProspectusshallhavebeentimelyfiledwiththeCommissionundertheSecuritiesAct(inthecaseofanIssuerFreeWritingProspectus,totheextentrequiredbyRule433undertheSecuritiesAct)andinaccordancewithSection5(a)hereof;andallrequestsbytheCommissionforadditionalinformationshallhavebeencompliedwithtothereasonablesatisfactionoftheRepresentatives.

(b)RepresentationsandWarranties.TherespectiverepresentationsandwarrantiesoftheCompanyandtheSellingStockholderscontainedherein

shallbetrueandcorrectonthedatehereofandonandasoftheClosingDateortheAdditionalClosingDate,asthecasemaybe;andthestatementsoftheCompanyanditsofficersandofeachoftheSellingStockholdersmadeinanycertificatesdeliveredpursuanttothisAgreementshallbetrueandcorrectonandasoftheClosingDateortheAdditionalClosingDate,asthecasemaybe.

(c)NoDowngrade.Subsequenttotheearlierof(A)theApplicableTimeand(B)theexecutionanddeliveryofthisAgreement,ifthereareanydebtsecuritiesorpreferredstockof,orguaranteedby,theCompanyoranyofitssubsidiariesthatareratedbya“nationallyrecognizedstatisticalratingorganization,”assuchtermisdefinedbytheCommissionforpurposesofRule436(g)(2)undertheSecuritiesAct,(i)nodowngradingshallhaveoccurredintheratingaccordedanysuchdebtsecuritiesorpreferredstockand(ii)nosuchorganizationshallhavepubliclyannouncedthatithasundersurveillanceorreview,orhaschangeditsoutlookwithrespectto,withpossiblenegativeimplications,itsratingofanysuchdebtsecuritiesorpreferredstock.

(d)NoMaterialAdverseChange.SubsequenttotheApplicableTimeor,ifearlier,thedatesasofwhichinformationisgivenintheRegistrationStatement(excludinganyamendmentorsupplementthereto)andtheProspectus(excludinganyamendmentorsupplementthereto),thereshallnothavebeenanychange,oranydevelopmentinvolvingaprospectivechange,inoraffectingthebusiness,properties,financialpositionorresultsofoperationsoftheCompanyanditssubsidiariestakenasawhole,exceptassetforthinorcontemplatedinthePricingDisclosurePackageandtheProspectus(excludinganyamendmentorsupplementthereto)theeffectofwhichinthejudgmentoftheRepresentativesissomaterialandadverseastomakeitimpracticableorinadvisabletoproceedwiththeoffering,saleordeliveryoftheSharesontheClosingDateorAdditionalClosingDate,asthecasemaybe,onthetermsandinthemannercontemplatedbythisAgreement,thePricingDisclosurePackageandtheProspectus.

(e)Officers’Certificate.TheRepresentativesshallhavereceivedonandasoftheClosingDateortheAdditionalClosingDate,asthecasemaybe,(x)acertificateofthechieffinancialofficerorchiefaccountingofficeroftheCompanyandoneadditionalseniorexecutiveofficeroftheCompanywhoisreasonablysatisfactorytotheRepresentativesconfirming(i)thatsuchofficershavecarefullyreviewedtheRegistrationStatement,thePricingDisclosurePackageandtheProspectusand,totheknowledgeofsuchofficers,therepresentationsandwarrantiesoftheCompanysetforthinSections3(b)and3(f)hereofaretrueandcorrect,(ii)thattheotherrepresentationsandwarrantiesoftheCompanyinthisAgreementaretrueandcorrect,(iii)thattheCompanyhascompliedinallmaterialrespectswithallagreementsandsatisfiedallconditionsonitsparttobeperformedorsatisfiedhereunderatorpriortotheClosingDateortheAdditionalClosingDateinallmaterialrespects,asthecasemaybe,and(iv)totheeffectsetforthinparagraphs(a),(c)and(d)aboveand(y)acertificatesignedbyanauthorizedpersonofeachoftheSellingStockholders,(i)confirmingthattherepresentationsandwarrantiesofsuchSellingStockholderinthisAgreementaretrueandcorrectand(ii)confirmingthatsuchSellingStockholderhascompliedinallmaterialrespectswithallagreementsandsatisfiedallconditionsonsuchSellingStockholder’sparttobeperformedorsatisfiedhereunderatorpriortosuchClosingDateinallmaterialrespects.

(f)ComfortLetters.OnthedateofthisAgreementandontheClosingDateortheAdditionalClosingDate,asthecasemaybe,

PricewaterhouseCoopersLLPshallhavefurnishedtotheRepresentatives,attherequestoftheCompany,letters,datedtherespectivedatesofdeliverythereofandaddressedtotheRepresentatives,informandsubstancereasonablysatisfactorytotheRepresentatives,containingstatementsandinformationofthetypecustomarilyincludedinaccountants’“comfortletters”tounderwriterswithrespecttothefinancialstatementsandcertainfinancialinformationcontainedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus;provided,thattheletterdeliveredontheClosingDateortheAdditionalClosingDate,asthecasemaybe,shallusea“cut-off”datenomorethanthreebusinessdayspriortosuchClosingDateorsuchAdditionalClosingDate,asthecasemaybe.

(g)Opinionand10b-5StatementofCounselfortheCompany.SimpsonThacher&BartlettLLP,counselfortheCompany,shallhavefurnishedtotheRepresentatives,attherequestoftheCompany,theirwrittenopinionand10b-5statement,datedtheClosingDateortheAdditionalClosingDate,asthecasemaybe,andaddressedtotheRepresentatives,informandsubstancereasonablysatisfactorytotheRepresentatives,totheeffectsetforthinAnnexB-1hereto.

(h)OpinionofCounselfortheSellingStockholders.(i)McDermottWill&EmeryLLP,U.S.federalcounselforOdin3,LLC,Odin4,LLC(collectively,the“OdinFunds”),WBAtlasLLC(“WBAtlas”)andNeopluxNo.1PrivateEquity(“Neoplux”),shallhavefurnishedtotheRepresentatives,attherequestoftheOdinFunds,WBAtlasandNeoplux,theirwrittenopinion,datedtheClosingDateortheAdditionalClosingDate,asthecasemaybe,andaddressedtotheRepresentatives,informandsubstancereasonablysatisfactorytotheRepresentatives,totheeffectsetforthinAnnexB-2,(ii)Kim&Chang,SouthKoreancounselforWBAtlas,shallhavefurnishedtotheRepresentatives,attherequestofWBAtlas,theirwrittenopinion,datedtheClosingDateortheAdditionalClosingDate,asthecasemaybe,andaddressedtotheRepresentativesinformandsubstancereasonablysatisfactorytotheRepresentative,totheeffectsetforthinAnnexB-3heretoand(iii)Shin&Kim,SouthKoreancounselfortheOdinFundsandNeoplux,shallhavefurnishedtotheRepresentatives,attherequestoftheOdinFundsandNeoplux,theirwrittenopinion,datedtheClosingDateortheAdditionalClosingDate,asthecasemaybe,andaddressedtotheRepresentatives,totheeffectsetforthinAnnexB-4hereto.

(i)Opinionand10b-5StatementofCounselfortheUnderwriters.TheRepresentativesshallhavereceivedonandasoftheClosingDateortheAdditionalClosingDate,asthecasemaybe,anopinionand10b-5statementofLatham&WatkinsLLP,counselfortheUnderwriters,withrespecttosuchmattersastheRepresentativesmayreasonablyrequest,andsuchcounselshallhavereceivedsuchdocumentsandinformationastheymayreasonablyrequesttoenablethemtopassuponsuchmatters.

(j)ChiefFinancialOfficer’sCertificate.TheRepresentativesshallhavereceivedcertificates,dated,respectively,thedatehereofandasoftheClosingDateortheAdditionalClosingDate,asthecasemaybe,signedbythechieffinancialofficeroftheCompany,withrespecttocertainfinancialdataintheRegistrationStatement,informandsubstancereasonablysatisfactorytotheRepresentatives.

(k)GoodStanding.TheRepresentativesshallhavereceivedonandasoftheClosingDateortheAdditionalClosingDate,asthecasemaybe,

satisfactoryevidenceofthegoodstandingoftheCompanyinDelawareanditsgoodstandingasaforeignentityinsuchotherjurisdictionsastheRepresentativesmayreasonablyrequest,ineachcaseinwritingoranystandardformoftelecommunicationfromtheappropriategovernmentalauthoritiesofsuchjurisdictions.

(l)ExchangeListing.TheSharestobedeliveredontheClosingDateorAdditionalClosingDate,asthecasemaybe,shallhavebeenapprovedforlistingontheExchange,subjecttoofficialnoticeofissuance.

(m)Lock-upAgreements.The“lock-up”agreements,eachsubstantiallyintheformofExhibitChereto,betweentheRepresentativesandthepersonsandentitiesnamedinSchedule3hereto,includingthestockholders,executiveofficersandthedirectorsoftheCompany,relatingtosalesandcertainotherdispositionsofsharesofStockorcertainothersecurities,deliveredtoyouonorbeforethedatehereof,shallbefullforceandeffectontheClosingDateorAdditionalClosingDate,asthecasemaybe.

(n)AdditionalDocuments.OnorpriortotheClosingDateortheAdditionalClosingDate,asthecasemaybe,theCompanyandtheSellingStockholdersshallhavefurnishedtotheRepresentativessuchfurthercertificatesanddocumentsastheRepresentativesmayreasonablyrequest.

(o)ShareholderTransaction.PriortotheClosingDate,theShareholderTransactionshallhavebeenconsummatedbytheSellingStockholdersandMagnusHoldingsCo.Ltd.inaccordancewiththedescriptioncontainedintheRegistrationStatement,thePricingDisclosurePackageandtheProspectus.

Allopinions,letters,certificatesandevidencementionedaboveorelsewhereinthisAgreementshallbedeemedtobeincompliancewiththeprovisionshereofonlyiftheyareinformandsubstancereasonablysatisfactorytocounselfortheUnderwriters.

9.IndemnificationandContribution.

(a)IndemnificationoftheUnderwritersandtheSellingStockholdersbytheCompany.TheCompanyagreestoindemnifyandholdharmlesseachUnderwriter,itsaffiliates,sellingagents,directorsandofficersandeachperson,ifany,whocontrolssuchUnderwriterwithinthemeaningofSection15oftheSecuritiesActorSection20oftheExchangeAct,andeachSellingStockholder,itsaffiliates,partners,members,directorsandofficersandeachperson,ifany,whocontrolssuchSellingStockholderwithinthemeaningofSection15oftheSecuritiesActorSection20oftheExchangeAct,fromandagainstanyandalllosses,claims,damagesandliabilities(including,withoutlimitation,reasonableanddocumentedlegalfeesandotherexpensesincurredinconnectionwithanysuit,actionorproceedingoranyclaimasserted,assuchfeesandexpensesareincurred),jointorseveral,thatariseoutof,orarebasedupon,(i)anyuntruestatementorallegeduntruestatementofamaterialfactcontainedintheRegistrationStatementorcausedbyanyomissionorallegedomissiontostatethereinamaterialfactrequiredtobestatedthereinornecessaryinordertomakethestatementstherein,notmisleading,or(ii)

anyuntruestatementorallegeduntruestatementofamaterialfactcontainedinthePreliminaryProspectus,theProspectus(oranyamendmentorsupplementthereto),anyIssuerFreeWritingProspectus,any“issuerinformation”filedorrequiredtobefiledpursuanttoRule433(d)undertheSecuritiesAct,anyroadshowasdefinedinRule433(h)undertheSecuritiesActoranyPricingDisclosurePackage(includinganyPricingDisclosurePackagethathassubsequentlybeenamended),orcausedbyanyomissionorallegedomissiontostatethereinamaterialfactnecessaryinordertomakethestatementstherein,inlightofthecircumstancesunderwhichtheyweremade,notmisleading,ineachcaseexceptinsofarassuchlosses,claims,damagesorliabilitiesariseoutof,orarebasedupon,anyuntruestatementoromissionorallegeduntruestatementoromissionmadeinrelianceuponandinconformitywith(i)anyinformationrelatingtoanyUnderwriterorSellingStockholder,asapplicable,furnishedtotheCompanyinwritingbysuchUnderwriterthroughtheRepresentativesexpresslyforusethereinorsuchSellingStockholder,asapplicable,itbeingunderstoodandagreedthattheonlysuchinformationfurnishedbyanyUnderwriterconsistsoftheinformationdescribedassuchinparagraph(b)belowandthattheonlysuchinformationfurnishedbyaSellingStockholderconsistsoftheSellingStockholderInformationrelatingtosuchSellingStockholderand(ii)anyinformationrelatingtoanySellingStockholderfurnishedtotheCompanyinwritingbyandonbehalfofsuchSellingStockholderexpresslyforusetherein,itbeingunderstoodandagreedthattheonlysuchinformationfurnishedbyanySellingStockholdersconsistsoftheSellingStockholderInformation.

(b)IndemnificationoftheUnderwritersandtheCompanybytheSellingStockholders.EachoftheSellingStockholders,severallyandnotjointly,inproportiontothenumberofSharestobesoldbysuchSellingStockholderhereunder,agreestoindemnifyandholdharmlesseachUnderwriter,itsaffiliates,directors,officers,sellingagentsandeachperson,ifany,whocontrolssuchUnderwriterwithinthemeaningofSection15oftheSecuritiesActorSection20oftheExchangeActandtheCompany,itsdirectors,itsofficerswhosignedtheRegistrationStatement,andeachperson,ifany,whocontrolstheCompanywithinthemeaningofSection15oftheSecuritiesActorSection20oftheExchangeActtothesameextentastheindemnitysetforthinparagraph(a)above,but,withrespecttoeachSellingStockholderonlywithrespecttoanylosses,claims,damagesorliabilitiesariseoutof,orarebasedupon,anyuntruestatementoromissionorallegeduntruestatementoromissionmadeinrelianceuponandinconformitywithanyinformationrelatingtosuchSellingStockholderfurnishedtotheCompanyinwritingbyandonbehalfofsuchSellingStockholderexpresslyforuseintheRegistrationStatement,theProspectus(oranyamendmentorsupplementthereto),anyIssuerFreeWritingProspectus,orthePricingDisclosurePackage,itbeingunderstoodandagreedthattheonlysuchinformationfurnishedbyanySellingStockholderconsistsoftheSellingStockholderInformationrelatingtosuchSellingStockholder;provided,however,thattheSellingStockholdersshallnotbeliableinanycasetotheextentthatanysuchloss,claim,damageorliabilityarisesoutoforisbaseduponanuntruestatementoromissionorallegeduntruestatementoromissionmadeinrelianceuponandinconformitywithanyinformationrelatingtoanyUnderwriterfurnishedtotheCompanyinwritingbysuchUnderwriterthroughtheRepresentativesexpresslyforusetherein,itbeingunderstoodandagreedthattheonlysuchinformationfurnishedbyanyUnderwriterconsistsoftheinformationdescribedassuchinparagraph(c)below;andprovided,further,thatanyliabilityunderthisparagraphofeachSellingStockholdershallinnoeventexceedanamountequaltotheaggregategrossproceedsafter

underwritingcommissionsanddiscounts(the“SellingStockholderNetProceeds”),butbeforeexpenses,receivedbysuchSellingStockholderfromthesaleofSharessoldbysuchSellingStockholderhereunder.

(c)IndemnificationoftheCompanyandtheSellingStockholdersbytheUnderwriters.EachUnderwriteragrees,severallyandnotjointly,toindemnifyandholdharmlesstheCompany,itsdirectors,itsofficerswhosignedtheRegistrationStatement,andeachperson,ifany,whocontrolstheCompanywithinthemeaningofSection15oftheSecuritiesActorSection20oftheExchangeAct,andeachoftheSellingStockholdersandeachperson,ifany,whocontrolssuchSellingStockholderwithinthemeaningofSection15oftheSecuritiesActorSection20oftheExchangeActtothesameextentastheindemnitysetforthinparagraph(a)above,butonlywithrespecttoanylosses,claims,damagesorliabilitiesthatariseoutof,orarebasedupon,anyuntruestatementoromissionorallegeduntruestatementoromissionmadeinrelianceuponandinconformitywithanyinformationrelatingtosuchUnderwriterfurnishedtotheCompanyinwritingbysuchUnderwriterthroughtheRepresentativesexpresslyforuseintheRegistrationStatement,thePreliminaryProspectus,theProspectus(oranyamendmentorsupplementthereto),anyIssuerFreeWritingProspectus,roadshow,oranyPricingDisclosurePackage(includinganyPricingDisclosurePackagethathassubsequentlybeenamended),itbeingunderstoodandagreeduponthattheonlysuchinformationfurnishedbyanyUnderwriterconsistsofthefollowinginformationinthePreliminaryProspectusandtheProspectusfurnishedonbehalfofeachUnderwriter:[(i)theconcessionandreallowancefiguresappearinginthethirdparagraphunderthecaption“Underwriting”and(ii)theinformationcontainedunderthecaption“Underwriting—PriceStabilizationandShortPositions”relatingtodistributions,pricestabilization,shortpositionsandpenaltybids].

(d)NoticeandProcedures.Ifanysuit,action,proceeding(includinganygovernmentalorregulatoryinvestigation),claimordemandshallbebroughtorassertedagainstanypersoninrespectofwhichindemnificationmaybesoughtpursuanttoparagraphs(a),(b)or(c)above,suchperson(the“IndemnifiedPerson”)shallpromptlynotifythepersonagainstwhomsuchindemnificationmaybesought(the“IndemnifyingPerson”)inwriting;providedthatthefailuretonotifytheIndemnifyingPersonshallnotrelieveitfromanyliabilitythatitmayhaveunderparagraphs(a),(b)or(c)aboveexcepttotheextentthatithasbeenmateriallyprejudiced(throughtheforfeitureofsubstantiverightsordefenses)bysuchfailure;andprovided,further,thatthefailuretonotifytheIndemnifyingPersonshallnotrelieveitfromanyliabilitythatitmayhavetoanIndemnifiedPersonotherwisethanunderparagraphs(a),(b)or(c)above.IfanysuchproceedingshallbebroughtorassertedagainstanIndemnifiedPersonanditshallhavenotifiedtheIndemnifyingPersonthereof,theIndemnifyingPersonshallbeentitledtoparticipatetherein,andtotheextentitwishes,jointlywithanyotherindemnifyingpartysimilarlynotified,toassumethedefensethereof,withcounselreasonablysatisfactorytotheIndemnifiedPersontorepresenttheIndemnifiedPersoninsuchproceedingandshallpaythefeesandexpensesofsuchcounselrelatedtosuchproceeding,asincurredand,afternoticefromtheIndemnifyingPersontosuchIndemnifiedPersonofitselectionsotoassumethedefensethereof,theIndemnifyingPersonshallnotbeliabletosuchIndemnifiedPersonunderparagraphs(a),(b)or(c)above,asthecasemaybe,foranylegalexpensesofothercounseloranyotherexpenses,ineachcasesubsequentlyincurredbysuchIndemnifiedPerson,inconnectionwiththedefensethereofotherthanreasonablecostsofinvestigation.Notwithstandingtheimmediately

foregoingsentence,inanysuchproceeding,anyIndemnifiedPersonshallhavetherighttoretainitsowncounsel,butthefeesandexpensesofsuchcounselshallbeattheexpenseofsuchIndemnifiedPersonunless(i)theIndemnifyingPersonandtheIndemnifiedPersonshallhavemutuallyagreedtothecontrary;(ii)theIndemnifyingPersonhasfailedwithinareasonabletimetoretaincounselreasonablysatisfactorytotheIndemnifiedPerson;(iii)theIndemnifiedPersonshallhavereasonablyconcluded,basedontheadviceofcounsel,thattheremaybelegaldefensesavailabletoitthataredifferentfromorinadditiontothoseavailabletotheIndemnifyingPerson;or(iv)thenamedpartiesinanysuchproceeding(includinganyimpleadedparties)includeboththeIndemnifyingPersonandtheIndemnifiedPersonandrepresentationofbothpartiesbythesamecounselwouldbeinappropriateduetoactualorpotentialdifferinginterestbetweenthem.ItisunderstoodandagreedthattheIndemnifyingPersonshallnot,inconnectionwithanyproceedingorrelatedproceedingsinthesamejurisdiction,beliableforthefeesandexpensesofmorethanoneseparatefirm(inadditiontoanylocalcounselthatisrequiredtoeffectivelydefendagainstanysuchproceeding)forallIndemnifiedPersons,andthatallsuchfeesandexpensesshallbepaidorreimbursedpromptly.AnysuchseparatefirmforanyUnderwriter,itsaffiliates,directorsandofficersandanycontrolpersonsofsuchUnderwriterwithinthemeaningofSection15oftheSecuritiesActorSection20oftheExchangeActshallbedesignatedinwritingbytheRepresentativesandanysuchseparatefirmfortheCompany,itsdirectors,itsofficerswhosignedtheRegistrationStatement,itsaffiliatesandanypersonswhocontroltheCompanywithinthemeaningofSection15oftheSecuritiesActorSection20oftheExchangeActshallbedesignatedinwritingbytheCompanyandanysuchseparatefirmfortheSellingStockholdersandanypersonswhocontrolsuchSellingStockholderswithinthemeaningofSection15oftheSecuritiesActorSection20oftheExchangeActshallbedesignatedinwritingbytheSellingStockholders.TheIndemnifyingPersonshallnotbeliableforanysettlementofanyproceedingeffectedwithoutitswrittenconsent(whichshallnotbeunreasonablywithheld,delayedorconditioned),butifsettledwithsuchconsentoriftherebeafinaljudgmentfortheplaintiff,theIndemnifyingPersonagreestoindemnifyeachIndemnifiedPersonfromandagainstanylossorliabilitybyreasonofsuchsettlementorjudgment.NoIndemnifyingPersonshall,withoutthewrittenconsentoftheIndemnifiedPerson(whichshallnotbeunreasonablywithheld,delayedorconditioned),effectanysettlementofanypendingorthreatenedproceedinginrespectofwhichanyIndemnifiedPersonisorcouldhavebeenapartyandindemnificationcouldhavebeensoughthereunderbysuchIndemnifiedPerson,unlesssuchsettlement(x)includesanunconditionalreleaseofsuchIndemnifiedPerson,informandsubstancereasonablysatisfactorytosuchIndemnifiedPerson,fromallliabilityonclaimsthatarethesubjectmatterofsuchproceedingand(y)doesnotincludeanystatementastooranyadmissionoffault,culpabilityorafailuretoactbyoronbehalfofanyIndemnifiedPerson.

(e)Contribution.Iftheindemnificationprovidedforinparagraphs(a),(b)and(c)aboveisunavailabletoanIndemnifiedPersonorinsufficientinrespectofanylosses,claims,damagesorliabilitiesreferredtotherein,theneachIndemnifyingPersonundersuchparagraph,inlieuofindemnifyingsuchIndemnifiedPersonthereunder,shallcontributetotheamountpaidorpayablebysuchIndemnifiedPersonasaresultofsuchlosses,claims,damagesorliabilities(i)insuchproportionasisappropriatetoreflecttherelativebenefitsreceivedbytheCompanyandtheSellingStockholders,ontheonehand,andtheUnderwritersontheother,fromtheofferingoftheSharesor(ii)iftheallocationprovidedbyclause(i)isnotpermittedbyapplicablelaw,insuchproportionasisappropriatetoreflectnotonlytherelativebenefitsreferredtoin

clause(i)butalsotherelativefaultoftheCompanyandtheSellingStockholders,ontheonehand,andtheUnderwritersontheother,inconnectionwiththestatementsoromissionsthatresultedinsuchlosses,claims,damagesorliabilities,aswellasanyotherrelevantequitableconsiderations.TherelativebenefitsreceivedbytheCompanyandtheSellingStockholders,ontheonehand,andtheUnderwritersontheother,shallbedeemedtobeinthesamerespectiveproportionsastheSellingStockholderNetProceeds(beforedeductingexpenses)receivedbyeachsuchSellingStockholderfromthesaleoftheSharesandthetotalunderwritingdiscountsandcommissionsreceivedbytheUnderwritersinconnectiontherewith,ineachcaseassetforthinthetableonthecoveroftheProspectus,beartotheaggregateofferingpriceoftheShares.TherelativefaultoftheCompanyandtheSellingStockholders,ontheonehand,andtheUnderwritersontheother,shallbedeterminedbyreferenceto,amongotherthings,whethertheuntrueorallegeduntruestatementofamaterialfactortheomissionorallegedomissiontostateamaterialfactrelatestoinformationsuppliedbytheCompanyandtheSellingStockholdersorbytheUnderwritersandtheparties’relativeintent,knowledge,accesstoinformationandopportunitytocorrectorpreventsuchstatementoromission.

(f)LimitationonLiability.TheCompany,theSellingStockholdersandtheUnderwritersagreethatitwouldnotbejustandequitableifcontributionpursuanttoparagraph(e)aboveweredeterminedbyprorataallocation(eveniftheUnderwritersweretreatedasoneentityforsuchpurpose)orbyanyothermethodofallocationthatdoesnottakeaccountoftheequitableconsiderationsreferredtoinparagraph(e)above.TheamountpaidorpayablebyanIndemnifiedPersonasaresultofthelosses,claims,damagesandliabilitiesreferredtoinparagraph(e)aboveshallbedeemedtoinclude,subjecttothelimitationssetforthabove,anylegalorotherexpensesreasonablyincurredanddocumentedbysuchIndemnifiedPersoninconnectionwithinvestigatingordefendingagainstanysuchactionorclaim.Notwithstandingtheprovisionsofparagraphs(d)and(e),innoeventshallanUnderwriterberequiredtocontributeanyamountinexcessoftheamountbywhichthetotalunderwritingdiscountsandcommissionsreceivedbysuchUnderwriterwithrespecttotheofferingoftheSharesexceedstheamountofanydamagesthatsuchUnderwriterhasotherwisebeenrequiredtopaybyreasonofsuchuntrueorallegeduntruestatementoromissionorallegedomission.Notwithstandinganythingcontainedherein,theliabilityunderthisSection9ofeachSellingStockholdershallbeseveralandnotjointand,innoeventexceedanamountequaltoitsrespectiveSellingStockholderNetProceeds(beforeexpenses).Nopersonguiltyoffraudulentmisrepresentation(withinthemeaningofSection11(f)oftheSecuritiesAct)shallbeentitledtocontributionfromanypersonwhowasnotguiltyofsuchfraudulentmisrepresentation.TheUnderwriters’obligationstocontributepursuanttoparagraphs(d)and(e)areseveralinproportiontotheirrespectivepurchaseobligationshereunderandnotjoint.

(g)Non-ExclusiveRemedies.TheremediesprovidedforinthisSection9arenotexclusiveandshallnotlimitanyrightsorremedieswhichmayotherwisebeavailabletoanyIndemnifiedPersonatlaworinequity.

(h)DirectedShareProgramIndemnification.TheCompanyagreestoindemnifyandholdharmlesstheDirectedShareUnderwriter,itsaffiliates,directorsandofficersandeachperson,ifany,whocontrolstheDirectedShareUnderwriterwithinthemeaningofeitherSection15oftheSecuritiesActorSection20oftheExchangeAct(eacha“DirectedShareUnderwriterEntity”)fromandagainstanyandalllosses,claims,damagesandliabilities(including,without

limitation,reasonableanddocumentedlegalfeesandotherexpensesincurredinconnectionwithdefendingorinvestigatinganysuit,actionorproceedingoranyclaimasserted,assuchfeesandexpensesareincurred)(i)causedbyanyuntruestatementorallegeduntruestatementofamaterialfactcontainedinanymaterialpreparedbyorwiththeconsentoftheCompanyfordistributiontoParticipantsinconnectionwiththeDirectedShareProgramorcausedbyanyomissionorallegedomissiontostatethereinamaterialfactnecessarytomakethestatementstherein,inlightofthecircumstancesunderwhichtheyweremade,notmisleading;(ii)causedbythefailureofanyParticipanttopayforandacceptdeliveryofDirectedSharesthattheParticipantagreedtopurchase;or(iii)relatedto,arisingoutof,orinconnectionwiththeDirectedShareProgram,otherthanlosses,claims,damagesorliabilities(orexpensesrelatingthereto)thatarefinallyjudiciallydeterminedtohaveresultedfromthebadfaithorgrossnegligenceoftheDirectedShareUnderwriterEntities.

(i)Incaseanyproceeding(includinganygovernmentalinvestigation)shallbeinstitutedinvolvinganyDirectedShareUnderwriterEntityinrespectofwhichindemnitymaybesoughtpursuanttoparagraph(h)above,theDirectedShareUnderwriterEntityseekingindemnityshallpromptlynotifytheCompanyinwritingandtheCompany,uponrequestoftheDirectedShareUnderwriterEntity,shallretaincounselreasonablysatisfactorytotheDirectedShareUnderwriterEntitytorepresenttheDirectedShareUnderwriterEntityandanyotherstheCompanymaydesignateinsuchproceedingandshallpaythereasonablefeesanddisbursementsofsuchcounselrelatedtosuchproceeding.Inanysuchproceeding,anyDirectedShareUnderwriterEntityshallhavetherighttoretainitsowncounsel,butthefeesandexpensesofsuchcounselshallbeattheexpenseofsuchDirectedShareUnderwriterEntityunless(i)theCompanyandsuchDirectedShareUnderwriterEntityshallhavemutuallyagreedtotheretentionofsuchcounsel,(ii)theCompanyhasfailedwithinareasonabletimetoretaincounselreasonablysatisfactorytosuchDirectedShareUnderwriterEntity,(iii)theDirectedShareUnderwriterEntityshallhavereasonablyconcluded,basedontheadviceofcounsel,thattheremaybelegaldefensesavailabletoitthataredifferentfromorinadditiontothoseavailabletotheCompanyor(iv)thenamedpartiestoanysuchproceeding(includinganyimpleadedparties)includeboththeCompanyandtheDirectedShareUnderwriterEntityandrepresentationofbothpartiesbythesamecounselwouldbeinappropriateduetoactualorpotentialdifferinginterestsbetweenthem.TheCompanyshallnot,inrespectofthelegalexpensesoftheDirectedShareUnderwriterEntitiesinconnectionwithanyproceedingorrelatedproceedingsinthesamejurisdiction,beliableforthefeesandexpensesofmorethanoneseparatefirm(inadditiontoanylocalcounsel)forallDirectedShareUnderwriterEntities.TheCompanyshallnotbeliableforanysettlementofanyproceedingeffectedwithoutitswrittenconsent,butifsettledwithsuchconsentoriftherebeafinaljudgmentfortheplaintiff,theCompanyagreestoindemnifytheDirectedShareUnderwriterEntitiesfromandagainstanylossorliabilitybyreasonofsuchsettlementorjudgment.TheCompanyshallnot,withoutthepriorwrittenconsentoftheDirectedShareUnderwriter,effectanysettlementofanypendingorthreatenedproceedinginrespectofwhichanyDirectedShareUnderwriterEntityisorcouldhavebeenapartyandindemnitycouldhavebeensoughthereunderbysuchDirectedShareUnderwriterEntity,unless(x)suchsettlementincludesanunconditionalreleaseoftheDirectedShareUnderwriterEntitiesfromallliabilityonclaimsthatarethesubjectmatterofsuchproceedingand(y)doesnotincludeanystatementastooranyadmissionoffault,culpabilityorafailuretoactbyoronbehalfoftheDirectedShareUnderwriterEntity.

(j)Totheextenttheindemnificationprovidedforinparagraph(h)aboveisunavailabletoaDirectedShareUnderwriterEntityorinsufficientin

respectofanylosses,claims,damagesorliabilitiesreferredtotherein,thentheCompanyinlieuofindemnifyingtheDirectedShareUnderwriterEntitythereunder,shallcontributetotheamountpaidorpayablebytheDirectedShareUnderwriterEntityasaresultofsuchlosses,claims,damagesorliabilities(1)insuchproportionasisappropriatetoreflecttherelativebenefitsreceivedbytheCompanyontheonehandandtheDirectedShareUnderwriterEntitiesontheotherhandfromtheofferingoftheDirectedSharesor(2)iftheallocationprovidedbyclause9(j)(1)aboveisnotpermittedbyapplicablelaw,insuchproportionasisappropriatetoreflectnotonlytherelativebenefitsreferredtoinclause9(j)(1)abovebutalsotherelativefaultoftheCompanyontheonehandandoftheDirectedShareUnderwriterEntitiesontheotherhandinconnectionwithanystatementsoromissionsthatresultedinsuchlosses,claims,damagesorliabilities,aswellasanyotherrelevantequitableconsiderations.TherelativebenefitsreceivedbytheCompanyontheonehandandtheDirectedShareUnderwriterEntitiesontheotherhandinconnectionwiththeofferingoftheDirectedSharesshallbedeemedtobeinthesamerespectiveproportionsasthenetproceedsfromtheofferingoftheDirectedShares(beforedeductingexpenses)andthetotalunderwritingdiscountsandcommissionsreceivedbytheDirectedShareUnderwriterEntitiesfortheDirectedShares,beartotheaggregatepublicofferingpriceoftheDirectedShares.Iftheloss,claim,damageorliabilityiscausedbyanuntrueorallegeduntruestatementofmaterialfactortheomissionorallegedomissiontostateamaterialfact,therelativefaultoftheCompanyontheonehandandtheDirectedShareUnderwriterEntitiesontheotherhandshallbedeterminedbyreferenceto,amongotherthings,whethertheuntrueorallegeduntruestatementortheomissionorallegedomissionrelatestoinformationsuppliedbytheCompanyorbytheDirectedShareUnderwriterEntitiesandtheparties’relativeintent,knowledge,accesstoinformationandopportunitytocorrectorpreventsuchstatementoromission.

(k)TheCompanyandtheDirectedShareUnderwriterEntitiesagreethatitwouldbenotjustorequitableifcontributionpursuanttoparagraph(j)aboveweredeterminedbyprorataallocation(eveniftheDirectedShareUnderwriterEntitiesweretreatedasoneentityforsuchpurpose)orbyanyothermethodofallocationthatdoesnottakeaccountoftheequitableconsiderationsreferredtoinparagraph(j)above.TheamountpaidorpayablebytheDirectedShareUnderwriterEntitiesasaresultofthelosses,claims,damagesandliabilitiesreferredtointheimmediatelyprecedingparagraphshallbedeemedtoinclude,subjecttothelimitationssetforthabove,anylegalorotherexpensesreasonablyincurredbytheDirectedShareUnderwriterEntitiesinconnectionwithinvestigatingordefendingsuchanyactionorclaim.Notwithstandingtheprovisionsofparagraph(j)above,noDirectedShareUnderwriterEntityshallberequiredtocontributeanyamountinexcessoftheamountbywhichthetotalpriceatwhichtheDirectedSharesdistributedtothepublicwereofferedtothepublicexceedstheamountofanydamagesthatsuchDirectedShareUnderwriterEntityhasotherwisebeenrequiredtopay.Nopersonguiltyoffraudulentmisrepresentation(withinthemeaningofSection11(f)oftheSecuritiesAct)shallbeentitledtocontributionfromanypersonwhowasnotguiltyofsuchfraudulentmisrepresentation.Theremediesprovidedforinparagraphs(h)through(k)arenotexclusiveandshallnotlimitanyrightsorremedieswhichmayotherwisebeavailabletoanyindemnifiedpartyatlaworinequity.

(l)Theindemnityandcontributionprovisionscontainedinparagraphs(h)through(k)shallremainoperativeandinfullforceandeffectregardless

of(i)anyterminationofthisAgreement,(ii)anyinvestigationmadebyoronbehalfofanyDirectedShareUnderwriterEntityortheCompany,itsofficersordirectorsoranypersoncontrollingtheCompanyand(iii)acceptanceofandpaymentforanyoftheDirectedShares.

10.EffectivenessofAgreement.ThisAgreementshallbecomeeffectiveupontheexecutionanddeliveryhereofbythepartieshereto.

11.Termination.ThisAgreementmaybeterminatedintheabsolutediscretionoftheRepresentatives,bywrittennoticetotheCompanyandtheSellingStockholders,ifaftertheexecutionanddeliveryofthisAgreementandpriortotheClosingDateor,inthecaseoftheOptionShares,priortotheAdditionalClosingDate(i)tradinggenerallyshallhavebeensuspendedonorbyanyoftheNewYorkStockExchangeorTheNASDAQStockMarket;(ii)tradingofanysecuritiesissuedorguaranteedbytheCompanyshallhavebeensuspendedonanyexchangeorinanyover-the-countermarket;(iii)ageneralmoratoriumoncommercialbankingactivitiesshallhavebeendeclaredbyfederalorNewYorkStateauthorities;or(iv)thereshallhaveoccurredanyoutbreakorescalationofhostilitiesoranychangeinfinancialmarketsoranycalamityorcrisis,eitherwithinoroutsidetheUnitedStates,that,inthejudgmentoftheRepresentatives,ismaterialandadverseandmakesitimpracticableorinadvisabletoproceedwiththeoffering,saleordeliveryoftheSharesontheClosingDateortheAdditionalClosingDate,asthecasemaybe,onthetermsandinthemannercontemplatedbythisAgreement,thePricingDisclosurePackageandtheProspectus.

12.DefaultingUnderwriter.

(a)If,ontheClosingDateortheAdditionalClosingDate,asthecasemaybe,anyUnderwriterdefaultsonitsobligationtopurchasetheSharesthatithasagreedtopurchasehereunderonsuchdate,thenon-defaultingUnderwritersmayintheirdiscretionarrangeforthepurchaseofsuchSharesbyotherpersonssatisfactorytotheCompanyandtheSellingStockholdersonthetermscontainedinthisAgreement.If,within36hoursafteranysuchdefaultbyanyUnderwriter,thenon-defaultingUnderwritersdonotarrangeforthepurchaseofsuchShares,thentheCompanyandtheSellingStockholdersshallbeentitledtoafurtherperiodof36hourswithinwhichtoprocureotherpersonssatisfactorytothenon-defaultingUnderwriterstopurchasesuchSharesonsuchterms.IfotherpersonsbecomeobligatedoragreetopurchasetheSharesofadefaultingUnderwriter,eitherthenon-defaultingUnderwritersortheCompanyandtheSellingStockholdersmaypostponetheClosingDateortheAdditionalClosingDate,asthecasemaybe,foruptofivefullbusinessdaysinordertoeffectanychangesthatintheopinionofcounselfortheCompany,counselfortheSellingStockholdersorcounselfortheUnderwritersmaybenecessaryintheRegistrationStatementandtheProspectusorinanyotherdocumentorarrangement,andtheCompanyagreestopromptlyprepareanyamendmentorsupplementtotheRegistrationStatementandtheProspectusthateffectsanysuchchanges.AsusedinthisAgreement,theterm“Underwriter”includes,forallpurposesofthisAgreementunlessthecontextotherwiserequires,anypersonnotlistedinSchedule1heretothat,pursuanttothisSection12,purchasesSharesthatadefaultingUnderwriteragreedbutfailedtopurchase.

(b)If,aftergivingeffecttoanyarrangementsforthepurchaseoftheSharesofadefaultingUnderwriterorUnderwritersbythenon-defaulting

Underwriters,theCompanyandtheSellingStockholdersasprovidedinparagraph(a)above,theaggregatenumberofSharesthatremainunpurchasedontheClosingDateortheAdditionalClosingDate,asthecasemaybe,doesnotexceedone-eleventhoftheaggregatenumberofSharestobepurchasedonsuchdate,thentheCompanyandtheSellingStockholdersshallhavetherighttorequireeachnon-defaultingUnderwritertopurchasethenumberofSharesthatsuchUnderwriteragreedtopurchasehereunderonsuchdateplussuchUnderwriter’sproratashare(basedonthenumberofSharesthatsuchUnderwriteragreedtopurchaseonsuchdate)oftheSharesofsuchdefaultingUnderwriterorUnderwritersforwhichsucharrangementshavenotbeenmade.

(c)If,aftergivingeffecttoanyarrangementsforthepurchaseoftheSharesofadefaultingUnderwriterorUnderwritersbythenon-defaultingUnderwriters,theCompanyandtheSellingStockholdersasprovidedinparagraph(a)above,theaggregatenumberofSharesthatremainunpurchasedontheClosingDateortheAdditionalClosingDate,asthecasemaybe,exceedsone-eleventhoftheaggregateamountofSharestobepurchasedonsuchdate,oriftheCompanyandtheSellingStockholdersshallnotexercisetherightdescribedinparagraph(b)above,thenthisAgreementor,withrespecttoanyAdditionalClosingDate,theobligationoftheUnderwriterstopurchaseSharesandtheSellingStockholderstoselltheShares,ontheAdditionalClosingDateshallterminatewithoutliabilityonthepartofthenon-defaultingUnderwriters.AnyterminationofthisAgreementpursuanttothisSection12shallbewithoutliabilityonthepartoftheCompanyoranySellingStockholder,exceptthattheCompanyandtheSellingStockholderswillcontinuetobeliableforthepaymentofexpensesassetforthinSection13hereofandexceptthattheprovisionsofSection9shallnotterminateandshallremainineffect.

(d)NothingcontainedhereinshallrelieveadefaultingUnderwriterofanyliabilityitmayhavetotheCompany,theSellingStockholdersoranynon-defaultingUnderwriterfordamagescausedbyitsdefault.

13.PaymentofExpenses.

(a)WhetherornotthetransactionscontemplatedbythisAgreementareconsummatedorthisAgreementisterminated,theCompanywillpayorcausetobepaidallcostsandexpensesincidenttotheperformanceofitsobligationshereunder,includingwithoutlimitation,(i)thecostsincidenttotheauthorization,sale,preparationanddeliveryoftheSharesandanytaxespayableinthatconnection;(ii)thecostsincidenttothepreparation,printingandfilingundertheSecuritiesActoftheRegistrationStatement,thePreliminaryProspectus,anyIssuerFreeWritingProspectus,anyPricingDisclosurePackageandtheProspectus(includingallexhibits,amendmentsandsupplementsthereto)andthedistributionthereof;(iii)thefeesandexpensesoftheCompany’scounselandindependentaccountants;(iv)thefeesandexpensesincurredinconnectionwiththeregistrationorqualificationanddeterminationofeligibilityforinvestmentoftheSharesunderthestateorforeignsecuritiesorblueskylawsofsuchjurisdictionsastheRepresentativesmayreasonablydesignateandthepreparation,printinganddistributionofaBlueSkyMemorandum(includingthereasonablefeesandexpensesofcounselfortheUnderwritersrelatedtheretoinanamountequalto$10,000);(v)thecostofpreparingstockcertificates;(vi)thecostsandchargesofanytransferagentandanyregistrar;(vii)all

expensesandapplicationfeesincurredinconnectionwithanyfilingwith,andclearanceoftheofferingby,FINRA(includingthereasonablefeesandexpensesofcounselfortheUnderwritersrelatedtheretoinanamountequalto$40,000);(viii)allexpensesincurredinconnectionwithany“roadshow”presentationtopotentialinvestors;provided,however,that50%ofthethirdpartycostsofanyprivateaircraftcharteredinconnectionwithsuchroadshow,willbepaidbytheUnderwriters(withtheCompanybeingresponsiblefortheremaining50%);providedfurther,thateachpartyshallpayallofthetravelandlodgingexpensesincurredbytheminconnectionwithsuchroadshow(otherthanthethirdpartycostsofanyprivateaircraft,whichshallbepaidforinaccordancewiththeforegoingprovisionsofthisclause(viii));(ix)allexpensesandapplicationfeesrelatedtothelistingoftheSharesontheExchange;and(x)allofthereasonablefeesanddisbursementsofcounselincurredbytheUnderwritersinconnectionwiththeDirectedShareProgramandstampduties,similartaxesordutiesorothertaxes,ifany,incurredbytheUnderwritersinconnectionwiththeDirectedShareProgram.

(b)If(i)thisAgreementisterminatedpursuanttoclause(ii)ofSection11,(ii)theSellingStockholdersforanyreasonfailtotendertheSharesfordeliverytotheUnderwritersor(iii)theUnderwritersdeclinetopurchasetheSharesforanyreasonpermittedunderthisAgreement(otherthanasaresultofthecircumstancessetforthinclause(i),(iii),(iv)or(v)ofSection11),theCompanyagreestoreimbursetheUnderwriters(otherthanadefaultingUnderwriter)forallout-of-pocketcostsandexpenses(includingthereasonableanddocumentedfeesandexpensesoftheircounsel)reasonablyincurredanddocumentedbytheUnderwritersinconnectionwiththisAgreementandtheofferingcontemplatedhereby.

14.PersonsEntitledtoBenefitofAgreement.ThisAgreementshallinuretothebenefitofandbebindinguponthepartiesheretoandtheirrespectivesuccessorsandtheofficersanddirectorsandanycontrollingpersonsreferredtoinSection9hereof.NothinginthisAgreementisintendedorshallbeconstruedtogiveanyotherpersonanylegalorequitableright,remedyorclaimunderorinrespectofthisAgreementoranyprovisioncontainedherein.NopurchaserofSharesfromanyUnderwritershallbedeemedtobeasuccessormerelybyreasonofsuchpurchase.

15.Survival.Therespectiveindemnities,rightsofcontribution,representations,warrantiesandagreementsoftheCompany,theSellingStockholdersandtheUnderwriterscontainedinthisAgreementormadebyoronbehalfoftheCompany,theSellingStockholdersortheUnderwriterspursuanttothisAgreementoranycertificatedeliveredpursuantheretoshallsurvivethedeliveryofandpaymentfortheSharesandshallremaininfullforceandeffect,regardlessofanyterminationofthisAgreementoranyinvestigationmadebyoronbehalfoftheCompany,theSellingStockholdersortheUnderwriters.

16.CertainDefinedTerms.ForpurposesofthisAgreement,(a)exceptwhereotherwiseexpresslyprovided,theterm“affiliate”hasthemeaningsetforthinRule405undertheSecuritiesAct;(b)theterm“businessday”meansanydayotherthanadayonwhichbanksarepermittedorrequiredtobeclosedinNewYorkCityand(c)theterm“subsidiary”hasthemeaningsetforthinRule405undertheSecuritiesAct.

17.Miscellaneous.

(a)Notices.Allnoticesandothercommunicationshereundershallbeinwritingandshallbedeemedtohavebeendulygivenifmailedor

transmittedandconfirmedbyanystandardformoftelecommunication.NoticestotheUnderwritersshallbegiventotheRepresentativesc/oJ.P.MorganSecuritiesLLC,383MadisonAvenue,NewYork,NewYork10179(fax:(212)622-8358),AttentionEquitySyndicateDesk;andc/oMorganStanley&Co.LLC,1585Broadway,NewYork,NewYork,10036,AttentionEquitySyndicateDesk,withacopytotheLegalDepartment;noticestotheCompanyshallbegiventoJosephJ.Nauman,ExecutiveVicePresident,ChiefLegalandAdministrativeOfficerandSecretary,333BridgeStreet,Fairhaven,Massachusetts02719(fax:[·]),withacopytoRoxaneReardon,Esq.,SimpsonThacher&BartlettLLP,425LexingtonAvenue,NewYork,NewYork10017;noticestoOdinFundsandNeoplux,ifany,shallbegivento[·],(fax:[·]),Attention:[·]withacopytoPaulKim,Esq.,McDermottWill&EmeryLLP,340MadisonAvenue,NewYork,NewYork10173;noticestoWBAtlas,ifany,shallbegivento[·],(fax:[·],Attention:[·],withacopyto[·],orineachcasetosuchotheraddressasthepersontobenotifiedmayhaverequestedinwriting.AnypartytothisAgreementmaychangesuchaddressfornoticesbysendingtothepartiestothisAgreementwrittennoticeofanewaddressforsuchpurpose.

(b)USAPatriotAct.InaccordancewiththerequirementsoftheUSAPatriotAct(TitleIIIofPub.L.107-56(signedintolawOctober26,2001)),theUnderwritersarerequiredtoobtain,verifyandrecordinformationthatidentifiestheirrespectiveclients,includingtheCompany,whichinformationmayincludethenameandaddressoftheirrespectiveclients,aswellasotherinformationthatwillallowtheUnderwriterstoproperlyidentifytheirrespectiveclients.

(c)GoverningLaw.ThisAgreementandanyclaim,controversyordisputearisingunderorrelatedtothisAgreementshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofNewYorkapplicabletoagreementsmadeandtobeperformedinsuchstate.

(d)JudgmentCurrency.TheCompanyandeachoftheSellingStockholdersagreetoindemnifyeachUnderwriter,itsdirectors,officers,affiliatesandeachperson,ifany,whocontrolssuchUnderwriterwithinthemeaningofSection15oftheSecuritiesActorSection20oftheExchangeAct,againstanylossincurredbysuchUnderwriterasaresultofanyjudgmentororderbeinggivenormadeforanyamountduehereunderandsuchjudgmentororderbeingexpressedandpaidinacurrency(the“judgmentcurrency”)otherthanU.S.dollarsandasaresultofanyvariationasbetween(i)therateofexchangeatwhichtheU.S.dollaramountisconvertedintothejudgmentcurrencyforthepurposeofsuchjudgmentororder,and(ii)therateofexchangeatwhichsuchindemnifiedpersonisabletopurchaseU.S.dollarswiththeamountofthejudgmentcurrencyactuallyreceivedbytheindemnifiedperson.TheforegoingindemnityshallconstituteaseparateandindependentobligationoftheCompanyandeachoftheSellingStockholdersandshallcontinueinfullforceandeffectnotwithstandinganysuchjudgmentororderasaforesaid.Theterm“rateofexchange”shallincludeanypremiumsandcostsofexchangepayableinconnectionwiththepurchaseof,orconversioninto,therelevantcurrency.

(e)WaiverofImmunity.TotheextentthattheCompanyortheSellingStockholdershaveorhereaftermayacquireanyimmunity(sovereignorotherwise)fromjurisdictionofany

courtof(i)theRepublicofKorea,oranypoliticalsubdivisionthereof,(ii)theUnitedStatesortheStateofNewYork,(iii)anyjurisdictioninwhichitownsorleasespropertyorassetsorfromanylegalprocess(whetherthroughserviceofnotice,attachmentpriortojudgment,attachmentinaidofexecution,execution,set-offorotherwise)withrespecttothemselvesortheirrespectivepropertyandassetsorthisAgreement,theSellingStockholdersandtheCompanyherebyirrevocablywaivesuchimmunityinrespectoftheirobligationsunderthisAgreementtothefullestextentpermittedbyapplicablelaw.

(f)SubmissiontoJurisdiction.TheCompanyandtheSellingStockholdersherebysubmittothenon-exclusivejurisdictionoftheU.S.federalandNewYorkstatecourtsintheBoroughofManhattanintheCityofNewYorkinanysuitorproceedingarisingoutoforrelatingtothisAgreementorthetransactionscontemplatedhereby.TheCompanyandtheSellingStockholderswaiveanyobjectionwhichtheymaynoworhereafterhavetothelayingofvenueofanysuchsuitorproceedinginsuchcourts.TheCompanyandeachoftheSellingStockholdersagreethatfinaljudgmentinanysuchsuit,actionorproceedingbroughtinsuchcourtshallbeconclusiveandbindingupontheCompanyorsuchSellingStockholderandmaybeenforcedinanycourttothejurisdictionofwhichtheCompanyorsuchSellingStockholderissubjectbyasuituponsuchjudgment.TheSellingStockholdersirrevocablyappoints[insertnameofagentforserviceofprocess],located[],NewYork,NewYork[],asitsauthorizedagentintheBoroughofManhattaninTheCityofNewYorkuponwhichprocessmaybeservedinanysuchsuitorproceeding,andagreesthatserviceofprocessuponsuchauthorizedagent,andwrittennoticeofsuchservicetotheSellingStockholdersbythepersonservingthesametotheaddressprovidedinthisSection17(f),shallbedeemedineveryrespecteffectiveserviceofprocessupontheSellingShareholdersinanysuchsuitorproceeding.TheSellingStockholdersherebyrepresentsandwarrantsthatsuchauthorizedagenthasacceptedsuchappointmentandhasagreedtoactassuchauthorizedagentforserviceofprocess.TheSellingStockholdersfurtheragreetotakeanyandallactionasmaybenecessarytomaintainsuchdesignationandappointmentofsuchauthorizedagentinfullforceandeffectforaperiodofsevenyearsfromthedateofthisAgreement.

(g)Counterparts.ThisAgreementmaybesignedinoneormorecounterparts(whichmayincludecounterpartsdeliveredbyanystandardformoftelecommunication),eachofwhichshallbedeemedtobeanoriginalandallofwhichtogethershallconstituteoneandthesameinstrument.

(h)AmendmentsorWaivers.ThisAgreementmaynotbeamendedormodifiedunlessinwritingbyallthepartieshereto,andnoconditionherein(expressorimplied)maybewaivedunlesswaivedinwritingbyeachpartywhomtheconditionismeanttobenefit.

(i)Headings.Theheadingshereinareincludedforconvenienceofreferenceonlyandarenotintendedtobepartof,ortoaffectthemeaningorinterpretationof,thisAgreement.

(j)GeneralProvisions.ThisAgreementconstitutestheentireagreementofthepartiestothisAgreementandsupersedesallpriorwrittenororal

andallcontemporaneousoralagreements,understandingsandnegotiationswithrespecttothesubjectmatterhereof.

(k)Representatives.Inalldealingshereunder,theRepresentativesshallactonbehalfoftheUnderwriters,andtheCompanyandtheSellingStockholdersshallbeentitledtoactandrelyuponanystatement,request,noticeoragreementonbehalfofanyUnderwritermadeorgivenbyanyRepresentative.

Iftheforegoingisinaccordancewithyourunderstanding,pleaseindicateyouracceptanceofthisAgreementbysigninginthespaceprovidedbelow.

Verytrulyyours,

Title:

ODIN3,LLC

Title:

ODIN4,LLC

Title:

WBATLAS,LLC

Title:

NEOPLUXNO.1PRIVATEEQUITY

Title:

Accepted:AsofthedatefirstwrittenaboveJ.P.MORGANSECURITIESLLC

Title:

MORGANSTANLEY&CO.,LLC

Title:

Forthemselvesandonbehalfofthe

severalUnderwriterslisted

inSchedule1hereto.

Schedule1

Underwriter

NumberofSharesJ.P.MorganSecuritiesLLC

[·]MorganStanley&Co.LLC

[·]NomuraSecuritiesInternationalInc.

[·]UBSSecuritiesLLC

[·]CreditSuisseSecurities(USA)LLC

[·]DaiwaCapitalMarketsAmericaInc.

[·]DeutscheBankSecurities,Inc.

[·]JefferiesLLC

[·]WellsFargoSecurities,LLC

[·]D.A.Davidson&Co.

[·]KeyBancCapitalMarketsInc.

[·]RaymondJames&Associates,Inc.

[·]SunTrustRobinsonHumphrey,Inc.

[·] Total

Schedule2

SellingStockholders:

NumberofUnderwrittenShares:

NumberofOptionShares:

Odin3,LLC

Odin4,LLC

WBAtlasLLC

NeopluxNo.1PrivateEquity

Schedule3

MagnusHoldingsCo.Ltd.Odin3,LLCOdin4,LLCWBAtlasLLCNeopluxNo.1PrivateEquityWalterUihleinDavidMaherMaryLouBohnStevePelisekChristopherLindnerJohn(Jay)Duke,Jr.WilliamBurkeDennisDohertyJosephNaumanYoonSoo(Gene)Yoon

JenniferEstabrookNormanHaroldWesleyGregoryAllenHewettChristopherThomasMetzSeanStephenSullivanStevenHowardTishmanDavidPaulValcourtKoreaInvestment&SecuritiesCo.,Ltd.

AnnexAa.PricingDisclosurePackage

1.[·].b.PricingInformationProvidedOrallybyUnderwritersTheofferingpricepershareis$[·].ThenumberofsharestobepurchasedbytheUnderwritersis[·].ThenumberofadditionalsharestobesoldbytheSellingStockholdersattheoptionoftheUnderwritersisupto[·].

AnnexB-1

[FormofOpinionofCounselfortheCompany]

AnnexB-2

[FormofOpinionofMWEascounselfortheSellingStockholders]

AnnexB-3

[FormofOpinionofKim&ChangascounselforWBAtlas]

AnnexB-4

[FormofOpinionofShin&KimascounselforcertainoftheSellingStockholders]

AnnexC

[TermSheet]

ExhibitA

[FormofWaiverofLock-up]

J.P.MORGANSECURITIESLLCMORGANSTANLEY&CO.LLC

AcushnetHoldingsCorp.

PublicOfferingofCommonStock

,20[NameandAddressofOfficerorDirectorRequestingWaiver]DearMr./Ms.[Name]:

ThisletterisbeingdeliveredtoyouinconnectionwiththeofferingbyAcushnetHoldingsCorp.(the“Company”)ofsharesofcommonstock,$[·]parvalue(the“CommonStock”),oftheCompanyandthelock-upletterdated,20(the“Lock-upLetter”),executedbyyouinconnectionwithsuchoffering,andyourrequestfora[waiver][release]dated,20,withrespecttosharesofCommonStock(the“Shares”).

J.P.MorganSecuritiesLLCandMorganStanley&Co.LLCherebyagreeto[waive][release]thetransferrestrictionssetforthintheLock-upLetter,butonlywithrespecttotheShares,effective,20;provided,however,thatsuch[waiver][release]isconditionedontheCompanyannouncingtheimpending[waiver][release]bypressreleasethroughamajornewsserviceatleasttwobusinessdaysbeforeeffectivenessofsuch[waiver][release].ThisletterwillserveasnoticetotheCompanyoftheimpending[waiver][release].

Exceptasexpressly[waived][released]hereby,theLock-upLettershallremaininfullforceandeffect.

Yoursverytruly, cc:Company

ExhibitB

[FormofPressRelease]AcushnetHoldingsCorp.[Date]AcushnetHoldingsCorp.(the“[Company]”)announcedtodaythatJ.P.MorganSecuritiesLLCandMorganStanley&Co.LLC,the[jointbook-runningmanagers]intheCompany’srecentpublicsaleofsharesofcommonstock,are[waiving][releasing]alock-uprestrictionwithrespecttosharesoftheCompany’scommonstockheldby[certainofficersordirectors][anofficerordirector]oftheCompany.The[waiver][release]willtakeeffecton,20,andthesharesmaybesoldonoraftersuchdate.ThispressreleaseisnotanofferforsaleofthesecuritiesintheUnitedStatesorinanyotherjurisdictionwheresuchofferisprohibited,andsuchsecuritiesmaynotbeofferedorsoldintheUnitedStatesabsentregistrationoranexemptionfromregistrationundertheUnitedStatesSecuritiesActof1933,asamended.

ExhibitC

FORMOFLOCK-UPAGREEMENT

October,2016

J.P.MorganSecuritiesLLCMorganStanley&Co.,LLCAsRepresentativesoftheseveralUnderwriterslistedinSchedule1totheUnderwritingAgreementreferredtobelowc/oJ.P.MorganSecuritiesLLC383MadisonAvenueNewYork,NewYork10179c/oMorganStanley&Co.,LLC1585BroadwayNewYork,NewYork10036

Re:AcushnetHoldingsCorp.PublicOfferingLadiesandGentlemen:

Theundersignedunderstandsthatyou,asRepresentativesoftheseveralUnderwriters(the“Representatives”),proposetoenterintoanunderwritingagreement(the“UnderwritingAgreement”)withAcushnetHoldingsCorp.,aDelawarecorporation(the“Company”),andtheSellingStockholderslistedonSchedule2totheUnderwritingAgreement,providingforthepublicoffering(the“PublicOffering”)bytheseveralUnderwritersnamedinSchedule1totheUnderwritingAgreement(the“Underwriters”),ofcommonstock,parvalue$0.001pershare,oftheCompany(the“Securities”).CapitalizedtermsusedhereinandnototherwisedefinedshallhavethemeaningssetforthintheUnderwritingAgreement.

InconsiderationoftheUnderwriters’agreementtopurchaseandselltheSecuritiesinthePublicOffering,andforothergoodandvaluableconsiderationthereceiptandsufficiencyofwhichisherebyacknowledged,theundersignedherebyagreesthat,withoutthepriorwrittenconsentoftheRepresentatives,theundersignedwillnot,duringtheperiodending180daysafterthedateofthefinalProspectus(the“Prospectus”)relatingtothePublicOffering(the“Lock-UpPeriod”),(1)offer,pledge,sell,contracttosell,sellanyoptionorcontracttopurchase,purchaseanyoptionorcontracttosell,grantanyoption,rightorwarranttopurchase,orotherwisetransferordisposeof,directlyorindirectly,anysharesofCommonStock,$0.001pershareparvalue,oftheCompany(the“CommonStock”)oranysecuritiesconvertibleintoorexercisableorexchangeableforCommonStock(includingwithoutlimitation,CommonStockorsuchothersecuritieswhichmaybedeemedtobebeneficiallyownedbytheundersignedinaccordancewith

therulesandregulationsoftheSecuritiesandExchangeCommissionandsecuritieswhichmaybeissueduponexerciseofastockoptionorwarrant)(collectively,the“Undersigned’sSecurities”),orpubliclydisclosetheintentiontomakeanyoffer,sale,pledgeordisposition,(2)enterintoanyswaporotheragreementthattransfers,inwholeorinpart,anyoftheeconomicconsequencesofownershipoftheUndersigned’sSecurities,whetheranysuchtransactiondescribedinclause(1)or(2)aboveistobesettledbydeliveryoftheUndersigned’sSecurities,incashorotherwise,or(3)makeanydemandfororexerciseanyrightwithrespecttotheregistrationofanysharesoftheUndersigned’sSecurities,ineachcaseotherthan(A)theSecurities(ifany)tobesoldbytheundersignedpursuanttotheUnderwritingAgreement,including,fortheavoidanceofdoubt,Securitiesreceiveduponconversionofoutstandingsecurities,(B)transfersofsharesoftheUndersigned’sSecuritiesasabonafidegiftorgifts,(C)transferstoanytrust,corporation,partnership,limitedliabilitycompanyorotherbusinessentityforthedirectorindirectbenefitoftheundersignedortheimmediatefamilyoftheundersigned,(D)iftheundersignedisacorporation,partnership,limitedliabilitycompany,trustorotherbusinessentity(i)transferstoanothercorporation,partnership,limitedliabilitycompany,trustorotherbusinessentitythatisadirectorindirectaffiliate(asdefinedinRule405promulgatedundertheSecuritiesActof1933,asamended(the“SecuritiesAct”))oftheundersignedor(ii)distributionsoftheUndersigned’sSecuritiestolimitedpartners,limitedliabilitycompanymembersorstockholdersoftheundersignedorholdersofsimilarequityinterestsintheundersigned,(E)iftheundersignedisatrust,transferstothebeneficiaryofsuchtrust,(F)transfersbytestatesuccessionorintestatesuccession,(G)transferstoanyimmediatefamilymemberoranyinvestmentfundorotherentitycontrolledormanagedbytheundersigned(including,fortheavoidanceofdoubt,afundmanagedbythesamemanagerormanagingmemberorgeneralpartnerormanagementcompany,orbyanentitycontrolling,controlledby,orundercommoncontrolwithsuchmanagerormanagingmemberorgeneralpartnerormanagementcompanyastheundersignedorwhosharesacommoninvestmentadvisorwiththeundersigned),(H)transferstoanomineeorcustodianofapersonorentitytowhomadispositionortransferwouldbepermissibleunderclauses(B)through(G),(I)transferstotheCompanyinconnectionwith,andtotheextentnecessarytofund,thepaymentoftaxesduewithrespecttothevestingofrestrictedstock,restrictedstockunits,performancestockunits,equityappreciationrightsorsimilarrightstopurchaseCommonStockoranysecuritiesconvertibleintoorexercisableorexchangeableforCommonStockpursuanttotheCompany’sequityincentiveplans,providedthatiftheundersignedisrequiredtofileareportundertheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”),relatedtheretoduringtheLock-UpPeriod,suchreportshallincludeastatementtotheeffectthatthefilingrelatestothesatisfactionoftaxwithholdingobligationsinconnectionwiththevestingofsuchequityawards,(J)salesorothertransfersoftheUndersigned’sSecuritiesacquiredbytheundersignedinopenmarkettransactionsaftercompletionofthePublicOffering,(K)tenders,salesorothertransfersoftheUndersigned’sSecuritiespursuanttoabonafidethird-partytenderoffer,merger,consolidationorothersimilartransaction,madetoallholdersofCommonStockinvolvingaChangeofControl(asdefinedbelow)afterthecompletionofthePublicOffering,providedthatintheeventthatthetenderoffer,merger,consolidationorothersuchtransactionisnotconsummated,theUndersigned’sSecuritiesshallremainsubjecttotherestrictionssetforthherein,(L)transfersoftheUndersigned’sSecuritiesbyoperationoflaworpursuanttoanorderofacourtorregulatoryagency,(M)transferspursuanttoadomesticorder,divorcesettlement,divorcedecree,orseparationagreementor(N)oneormoresalesofCommonStocktobesoldbytheundersigned

inaprivateplacementtoanotherpersonwhoisaholderofCommonStockoranysecuritiesconvertibleintoorexercisableorexchangeableforCommonStockonorpriortothedatehereof;providedthatinthecaseofanytransferordistributionpursuanttoclauses(B)through(H),(i)suchtransfershallnotinvolveadispositionforvalue,(ii)eachdoneeordistributeeshallexecuteanddelivertotheRepresentativesalock-upletterintheformofthisletteragreement(“LetterAgreement”),and(iii)iftheundersignedisrequiredtofileareportundertheExchangeAct,theundersignedshallincludestatementinsuchreporttotheeffectthatthefilingrelatestothesale,transfer,distribution,bonafidegiftorotherdispositionofsharesofCommonStock,asapplicable,oranysecurityconvertibleintoCommonStocktooneormoreaffiliates,subsidiaries,trusts,partners(ifapartnership),beneficiaries,members(ifalimitedliabilitycompany)orstockholdersoftheundersignedortoanyinvestmentfundorotherentitycontrolledbyorundercommoncontrolwiththeundersignedortoanimmediatefamilymemberorentityforthedirectorindirectbenefitoftheundersignedoranyimmediatefamilymember,asapplicable,orbytestateorintestatesuccession,ortoanomineeorcustodian;provided,further,inthecaseofclause(J),thatnofilingbyanypartyunderSection16(a)oftheExchangeActshallberequiredorshallbemadevoluntarilyinconnectionwithsuchtransferduringtheLock-UpPeriodandinthecaseofclause(L)and(M),iftheundersignedisrequiredtofileareportundertheExchangeActrelatedtheretoduringtheLock-UpPeriod,suchreportshalldisclosethatsuchtransferwaspursuanttooperationoflaw,anorderofacourtorregulatoryagencyordomesticorder;provided,furtherthat,inthecaseofclause(N),(i)iftheundersignedisrequiredtofileareportundertheExchangeActrelatedtheretoduringtheLock-UpPeriod,suchreportshallincludeastatementtotheeffectthatthefilingrelatestothesaleoftheUndersigned’sSecuritiespursuanttoaprivatelynegotiatedshareholdertransactionand(ii)thepurchaseroftheCommonStockinsuchtransactionshallhaveexecutedanddeliveredtotheRepresentativesalock-upletterintheformofthisLetterAgreement.IftheundersignedisanofficerordirectoroftheCompany,theundersignedfurtheragreesthattheforegoingprovisionsshallbeequallyapplicabletoanyCompany-directedSecuritiestheundersignedmaypurchaseinthePublicOffering.ForpurposesofthisLetterAgreement,“immediatefamily”shallmeananyrelationshipbyblood,marriageoradoption,notmoreremotethanfirstcousinand“ChangeofControl”shallmeanthetransfer(whetherbytenderoffer,merger,consolidationorothersimilartransaction),inonetransactionoraseriesofrelatedtransactions,toapersonorgroupofaffiliatedpersons(otherthananUnderwriterpursuanttothePublicOffering),oftheCompany’svotingsecuritiesif,aftersuchtransfer,suchpersonorgroupofaffiliatedpersonswouldholdmorethan50%oftheoutstandingvotingsecuritiesoftheCompany(orthesurvivingentity).

Inaddition,theforegoingrestrictionsshallnotapplyto(i)thesaleofCommonStocktobesoldbytheundersignedintheprivateplacementtobeconsummatedpriorto,orconcurrentwith,theclosingofthePublicOfferinginamannerconsistentwiththedescriptionofsuchtransactioncontainedintheProspectus;providedthatthepurchaseroftheCommonStockinsuchtransactionshallhaveexecutedanddeliveredtotheRepresentativesalock-upletterintheformofthisLetterAgreement,[(ii)pledgesofsharesofCommonStockorsecuritiesconvertibleintoorexercisableorexchangeableforCommonStockpursuanttotherequirementsofoneormorecreditagreementsenteredintobytheundersigned(the“PledgedShares”);providedthatthepledgeeshall(x)ifsuchpledgeisinexistencepriortothedatehereof,executeanddelivertotheRepresentativesalock-upletterintheformofthisLetterAgreementuponreceiptofsuchsharesofCommonStockorsecuritiesconvertibleintoorexercisableorexchangeableforCommonStockoranyexerciseofitsrightsinrespectofsuchsharesofCommonStockorsecurities

convertibleintoorexercisableorexchangeableforsharesofCommonStockpursuanttothetermsofsuchcreditagreementand(y)ifsuchpledgeoccursonorafterthedatehereof,executeanddelivertotheRepresentativesalock-upagreementintheformofthisLetterAgreementatthetimesuchpledgeisgranted;provided,further,that,fortheavoidanceofdoubt,upontheexerciseofremediesandforeclosureofthePledgedSharesbythepledgeepursuanttothetermsofsuchcreditagreementasaresultofaneventofdefaultthereunder,theundersignedmaytransfer,directlyorindirectly,itsPledgedSharestothepledgee](1),(iii)theexerciseofstockoptionsgrantedpursuanttotheCompany’sequityincentiveplansdescribedintheProspectus,includingthe“net”or“cashless”exerciseofsuchoptionsandthesurrenderoftheUndersigned’sSecuritiesinlieuofpaymentincashoftheexercisepriceandanytaxwithholdingobligationsdueasaresultofsuchexercise;providedthatitshallapplytoanyoftheUndersigned’sSecuritiesissueduponsuchexercise,and,provided,further,thatiftheundersignedisrequiredtofileareportundertheExchangeActrelatedthereto,suchreportshallincludeastatement,ifapplicable,totheeffectthatthefilingrelatestothe“net”or“cashless”exerciseofoptionstopurchasesharesofCommonStockforthepurposeofexercisingsuchoptions,including,ifapplicable,thepaymentoftaxesdueasaresultofsuchexercise,(iv)theestablishmentofanycontract,instructionorPlan(a“Plan”)thatsatisfiesalloftherequirementsofRule10b5-1(c)(1)(i)(B)undertheExchangeAct;providedthatnosalesoftheUndersigned’sSecuritiesshallbemadepursuanttosuchaPlanpriortotheexpirationoftheLock-UpPeriod,andtotheextentapublicannouncementorfilingwiththeCommissionorotherregulatoryauthorityinrespectthereofortransactionsthereunderorcontemplatedthereby,ifany,isrequiredoforvoluntarilymadebyoronbehalfoftheundersignedortheCompanyregardingtheestablishmentofsuchPlan,suchannouncementorfilingshallincludeastatementtotheeffectthatnosalesofCommonStockmaybemadeundersuchPlanpriortotheexpirationoftheLock-UpPeriod,(v)theconversionorexchangeofconvertibleorexchangeabledebtorconvertibleorexchangeablepreferredstockinconnectionwith(x)theconsummationoftheprivateplacementdescribedinclause(i)ofthisparagraph,or(y)theconsummationoftheofferingcontemplatedbytheUnderwritingAgreement,ineachcase,inamannerconsistentwiththedescriptionofsuchconversionorexchangecontainedintheProspectus,orthevestingofrestrictedstock,restrictedstockunits,performancestockunits,equityappreciationrightsorsimilarrightstopurchaseCommonStockoranysecuritiesconvertibleintoorexercisableorexchangeableforCommonStock;providedthattheforegoingrestrictionsshallapplytoanyoftheUndersigned’sSecuritiesreceiveduponsuchexercise,conversion,exchangeorvesting,exceptinthecaseoftheSecurities(ifany)tobesoldbytheundersignedpursuanttotheUnderwritingAgreementor(vi)anydemandsorrequestsfor,theexerciseofanyrightwithrespectto,orthetakingofanyactioninpreparationof,theregistrationbytheCompanyundertheSecuritiesActoftheUndersigned’sSecuritiespursuanttothatcertainregistrationrightsagreementasdescribedintheProspectus;providedthatnotransferoftheUndersigned’sSecuritiesregisteredpursuanttotheexerciseofanysuchrightandnoregistrationstatementshallbefiledundertheSecuritiesActwithrespecttoanyoftheUndersigned’sSecuritiesduringtheLock-UpPeriod;provided,further,thatnofilingbyanypartyundertheExchangeAct,orotherpublicannouncementshallberequiredorshallbemadevoluntarilyinconnectionwithsuchexerciseofanysuchright.

(1)NTD:Clause(ii)shallonlybeapplicablefortheFilalockupagreement.

[Notwithstandinganythingtocontraryherein,thisLetterAgreementshallonlybecomeeffectiveupontheundersignedbecomingabeneficialowner(as

definedunderRule13d-3oftheExchangeAct)oftheSecuritiespledged(the“PledgedSecurities”)toitduringtheLock-upPeriodpursuanttotherequirementsofoneormorecreditagreementsenteredintobytheundersignedand[FILA],andpriortosuchoccurrence,thisLetterAgreementshallnotbebindingupontheundersignedinanyrespect.](2)

IftheundersignedisanofficerordirectoroftheCompany,(i)theRepresentativesonbehalfoftheUnderwritersagreethat,atleastthreebusinessdaysbeforetheeffectivedateofanyreleaseorwaiveroftheforegoingrestrictionsinconnectionwithatransferofsharesofCommonStock,theRepresentativesonbehalfoftheUnderwriterswillnotifytheCompanyoftheimpendingreleaseorwaiver,and(ii)theCompanyhasagreedintheUnderwritingAgreementtoannouncetheimpendingreleaseorwaiverbypressreleasethroughamajornewsserviceatleasttwobusinessdaysbeforetheeffectivedateofthereleaseorwaiver.AnyreleaseorwaivergrantedbytheRepresentativesonbehalfoftheUnderwritershereundertoanysuchofficerordirectorshallonlybeeffectivetwobusinessdaysafterthepublicationdateofsuchpressrelease.Theprovisionsofthisparagraphwillnotapplyif(a)thereleaseorwaiveriseffectedsolelytopermitatransfernotforconsiderationand(b)thetransfereehasagreedinwritingtobeboundbythesametermsdescribedinthislettertotheextentandforthedurationthatsuchtermsremainineffectatthetimeofthetransfer.

ForpurposesofthisAgreement,eachofthefollowingpersonsisa“MajorHolder”:eachrecordorbeneficialownerofsharesrepresentingmorethan5%(aggregatingownershipofaffiliates)ofthesharesofanyindividualclassofcapitalstockoftheCompanyoutstandingimmediatelypriortothePublicOffering.

IfanyMajorHolderthathasexecutedalock-upletterintheformofthisLetterAgreement(otherthantheundersigned)isgrantedanearlyreleaseoftherestrictionsdescribedhereinduringtheLock-UpPeriodwithrespecttoanypercentageofsharesheldbysuchMajorHolder,then,iftheundersignedisaMajorHolder,thesamepercentageoftheUndersigned’sSecuritiesshallautomaticallybedeemedtobereleasedfromtherestrictionsofthisLetterAgreementonthesameterms;provided,however,thattheprovisionsofthisparagraphshallnotapply(a)ifthereleaseorwaiverisgrantedtoaMajorHolderinconnectionwithitsparticipationinanunderwrittenpublicoffering,whetherornotsuchofferingiswhollyorpartiallyasecondaryoffering,ofsharesofCommonStockpursuanttoaregistrationstatementundertheSecuritiesAct;providedthatintheeventofanyreleaseorwaiverpursuanttothisclause(a),thesamepercentageoftheUndersigned’sSecurities(determinedassetforthabove)shallbereleased,butonlyforthepurposeofparticipatinginsuchofferingand(b)unlessanduntiltheRepresentativeshavefirstwaived,orgrantedanearlyreleaseof,suchrestrictionsorsimilarrestrictionswithrespecttoanaggregatenumberofsharesofCommonStockrepresentingmorethan1%oftheCompany’stotaloutstandingsharesofCommonStockcalculatedasofimmediatelypriortotheOfferingandassumingconversion,exerciseandexchangeofallsecuritiesconvertibleintoorexercisableorexchangeableforCommonStock;[provided,further,thatforpurposesofthisparagraph,ifthepledgorofthePledgedSecuritiesisdeemedaMajor

(2)NTD:BracketedshallonlybeapplicabletotheKISlockupagreement.

Holder,upontheundersignedbecomingthebeneficialownerofthePledgedSecurities,theundersignedshallbedeemeda“MajorHolder”forpurposesofthisparagraph](3).

Infurtheranceoftheforegoing,theCompany,andanydulyappointedtransferagentfortheregistrationortransferofthesecuritiesdescribedherein,areherebyauthorizedtodeclinetomakeanytransferofsecuritiesifsuchtransferwouldconstituteaviolationorbreachofthisLetterAgreement.

TheundersignedherebyrepresentsandwarrantsthattheundersignedhasfullpowerandauthoritytoenterintothisLetterAgreement.Allauthorityhereinconferredoragreedtobeconferredandanyobligationsoftheundersignedshallbebindinguponthesuccessors,assigns,orheiroftheundersigned.

Theundersignedunderstandsthat,if(i)theCompanynotifiestheUnderwritersthatitdoesnotintendtoproceedwiththePublicOfferingpriortotheexecutionoftheUnderwritingAgreement,(ii)theRepresentatives,onbehalfoftheUnderwriters,notifytheCompanythattheUnderwritersdonotintendtoproceedwiththePublicOffering,(iii)theUnderwritingAgreementhasnotbeenexecutedonorbeforeDecember31,2016,oriftheUnderwritingAgreement(otherthantheprovisionsthereofwhichsurvivetermination)shallterminateorbeterminatedpriortopaymentforanddeliveryoftheCommonStocktobesoldthereunderor(iv)theRegistrationStatementiswithdrawnbytheCompanypriortothecompletionofthePublicOffering,theundersignedshallbereleasedfromallobligationsunderthisLetterAgreement.TheundersignedunderstandsthattheUnderwritersareenteringintotheUnderwritingAgreementandproceedingwiththePublicOfferinginrelianceuponthisLetterAgreement.

ThisLetterAgreementandanyclaim,controversyordisputearisingunderorrelatedtothisLetterAgreementshallbegovernedby,andconstruedinaccordancewith,thelawsoftheStateofNewYork,withoutregardtotheconflictoflawsprinciplesthereof.AnyactionbroughtinconnectionwiththisLetterAgreementshallbebroughtinthefederalorstatecourtslocatedintheBoroughofManhattanintheCityofNewYork,andthepartiesherebyirrevocablyconsenttothejurisdictionofsuchcourtsandwaiveanyobjectionsastovenueorinconvenientforum.

[Remainderofpageintentionallyleftblank]

(3)NTD:BracketedshallonlybeapplicabletotheKISlockupagreement.

Verytrulyyours,

NameofStockholder(Printexactname)

Signature

Ifsigningonbehalfofanentity:

NameofAuthorizedSignatory(Print)

TitleofAuthorizedSignatory(Print)

Exhibit3.1

AMENDEDANDRESTATEDCERTIFICATEOFINCORPORATION

OFACUSHNETHOLDINGSCORP.

ThepresentnameofthecorporationisAcushnetHoldingsCorp.(the“Corporation”).TheCorporationwasincorporatedunderthename“AlexandriaHoldingsCorp.”bythefilingofitsoriginalCertificateofIncorporationwiththeSecretaryofStateoftheStateofDelawareonMay9,2011(the“OriginalCertificateofIncorporation”).TheOriginalCertificateofIncorporationwasamendedandrestatedonJuly28,2011,January18,2012andOctober22,2013,andwasfurtheramendedonMarch31,2016tochangethenameoftheCorporationtoAcushnetHoldingsCorp.(asamendedandrestatedandasfurtheramended,the“ThirdAmendedandRestatedCertificateofIncorporation”).ThisAmendedandRestatedCertificateofIncorporationoftheCorporation(the“AmendedandRestatedCertificateofIncorporation”),whichrestatesandintegratesandalsofurtheramendstheprovisionsoftheThirdAmendedandRestatedCertificateofIncorporation,wasdulyadoptedinaccordancewiththeprovisionsofSections242and245oftheGeneralCorporationLawoftheStateofDelaware,asfromtimetotimeamended(the“DGCL”),andbythewrittenconsentofitsstockholdersinaccordancewithSection228oftheDGCL.TheThirdAmendedandRestatedCertificateofIncorporationisherebyamended,integratedandrestatedtoreadinitsentiretyasfollows:

ARTICLEI

NAMEThenameoftheCorporationisAcushnetHoldingsCorp.

ARTICLEII

REGISTEREDOFFICEANDAGENTTheaddressoftheregisteredofficeoftheCorporationintheStateofDelawareisCorporationTrustCenter,1209OrangeStreet,intheCityofWilmington,CountyofNewcastle,19801-1120.ThenameoftheCorporation’sregisteredagentatsuchaddressisTheCorporationTrustCompany.

ARTICLEIII

PURPOSEThepurposeoftheCorporationistoengageinanylawfulactoractivityforwhichcorporationsmaybeorganizedundertheDGCL.

ARTICLEIV

CAPITALSTOCK

ThetotalnumberofsharesofallclassesofstockthattheCorporationshallhaveauthoritytoissueis600,000,000,whichshallbedividedintotwoclassesasfollows:

500,000,000sharesofcommonstock,parvalue$0.001pershare(“CommonStock”);and

100,000,000sharesofpreferredstock,parvalue$0.001pershare(“PreferredStock”).

A.TheboardofdirectorsoftheCorporation(the“BoardofDirectors”)isherebyexpresslyauthorized,byresolutionorresolutionsandbyfilingacertificateofdesignationrelatingtheretoinaccordancewiththeDGCL,toprovide,outoftheunissuedsharesofPreferredStock,foroneormoreseriesofPreferredStockand,withrespecttoeachsuchseries,tofix,withoutfurtherstockholderapproval,thedesignationofsuchseries,thepowers(includingvotingpowers),preferencesandrelative,participating,optionalandotherspecialrights,andthequalifications,limitationsorrestrictionsthereof,ofsuchseriesofPreferredStockandthenumberofsharesofsuchseries.Thepowers,preferencesandrelative,participating,optionalandotherspecialrightsof,andthequalifications,limitationsorrestrictionsthereof,ofeachseriesofPreferredStock,ifany,maydifferfromthoseofanyandallotherseriesatanytimeoutstanding.AnysharesofPreferredStockwhichmayberedeemed,purchasedoracquiredbytheCorporationmaybereissuedexceptasotherwiseprovidedbylaw.

B.EachholderofrecordofCommonStock,assuch,shallhaveonevoteforeachshareofCommonStockwhichisoutstandinginhis,heroritsnameonthebooksoftheCorporationonallmattersonwhichstockholdersareentitledtovotegenerally.Exceptasotherwiserequiredbylaw,holdersofCommonStockshallnotbeentitledtovoteonanyamendmenttothisAmendedandRestatedCertificateofIncorporation(includinganycertificateofdesignationrelatingtoanyseriesofPreferredStock)thatrelatessolelytothetermsofoneormoreoutstandingseriesofPreferredStockiftheholdersofsuchaffectedseriesareentitled,eitherseparatelyortogetherwiththeholdersofoneormoreothersuchseries,tovotethereonpursuanttothisAmendedandRestatedCertificateofIncorporation(includinganycertificateofdesignationrelatingtoanyseriesofPreferredStock)orpursuanttotheDGCL.Thereshallbenocumulativevoting.

C.Exceptasotherwiserequiredbylaw,holdersofanyseriesofPreferredStockshallbeentitledtoonlysuchvotingrights,ifany,asshallexpresslybegrantedtheretobythisAmendedandRestatedCertificateofIncorporation(includinganycertificateofdesignationrelatingtosuchseriesofPreferredStock).

D.Subjecttoapplicablelawandtherights,ifany,oftheholdersofanyoutstandingseriesofPreferredStockoranyclassorseriesofstockhavingapreferenceoverortherighttoparticipatewiththeCommonStockwithrespecttothepaymentofdividends,dividendsmaybedeclaredandpaidratablyontheCommonStockoutoftheassetsoftheCorporationwhicharelegallyavailableforthispurposeatsuchtimesandinsuchamountsastheBoardofDirectorsinitsdiscretionshalldetermine.

E.Uponthedissolution,liquidationorwindingupoftheCorporation(a“LiquidationEvent”),afterpaymentorprovisionforpaymentofthedebtsand

otherliabilitiesoftheCorporationandsubjecttotherights,ifany,oftheholdersofanyoutstandingseriesofPreferredStockoranyclassorseriesofstockhavingapreferenceoverortherighttoparticipatewiththeCommonStockwithrespecttothedistributionofassetsoftheCorporationuponsuchdissolution,liquidationorwindingupoftheCorporation,theholdersofCommonStockshallbeentitledtoreceivetheremainingassetsoftheCorporationavailablefordistributiontoitsstockholdersratablyinproportiontothenumberofsharesofCommonStockheldbythem.Theterm“LiquidationEvent”shallnotbedeemedtobeoccasionedbyortoincludeanyvoluntaryconsolidationormergeroftheCorporationwithorintoanyothercorporationorentityorothercorporationsorentitiesorasale,leaseorconveyanceofallorapartoftheCorporation’sassets.

F.ThenumberofauthorizedsharesofPreferredStockorCommonStockmaybeincreasedordecreased(butnotbelowthenumberofsharesthereofthenoutstanding)bytheaffirmativevoteoftheholdersofamajorityinvotingpowerofthestockoftheCorporationentitledtovotethereonirrespectiveoftheprovisionsofSection242(b)(2)oftheDGCL(oranysuccessorprovisionthereto),andnovoteoftheholdersofanyoftheCommonStockorthePreferredStockvotingseparatelyasaclassshallberequiredtherefor,unlessavoteofanysuchholderisrequiredpursuanttothisAmendedandRestatedCertificateofIncorporation(includinganycertificateofdesignationrelatingtoanyseriesofPreferredStock).

ARTICLEV

AMENDMENTOFTHECERTIFICATEOFINCORPORATIONANDBYLAWS

A.NotwithstandinganythingcontainedinthisAmendedandRestatedCertificateofIncorporationtothecontrary,inadditiontoanyvoterequiredbyapplicablelaw,thefollowingprovisionsinthisAmendedandRestatedCertificateofIncorporationmaybeamended,altered,repealedorrescinded,inwholeorinpart,oranyprovisioninconsistenttherewithorherewithmaybeadopted,(i)priortotheTriggerDate,onlybytheaffirmativevoteoftheholdersofamajorityinvotingpowerofallthethen-outstandingsharesofstockoftheCorporationentitledtovotethereonand(ii)aftertheTriggerDate,onlybytheaffirmativevoteoftheholdersofatleast662/3%invotingpowerofallthethen-outstandingsharesofstockoftheCorporationentitledtovotethereon,votingtogetherasasingleclass:thisArticleV,ArticleVI,ArticleVII,ArticleVIIIandSectionBofArticleIX.ForthepurposesofthisAmendedandRestatedCertificateofIncorporation,beneficialownershipofsharesshallbedeterminedinaccordancewithRule13d-3promulgatedundertheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”).

B.TheBoardofDirectorsisexpresslyauthorizedtomake,repeal,alter,amendandrescind,inwholeorinpart,thebylawsoftheCorporation(asineffectfromtimetotime,the“Bylaws”)withouttheassentorvoteofthestockholdersinanymannernotinconsistentwiththeDGCLorthisAmendedandRestatedCertificateofIncorporation.NotwithstandinganythingtothecontrarycontainedinthisAmendedandRestatedCertificateofIncorporationoranyprovisionoflawwhichmightotherwisepermitalesservoteofthestockholders,inadditiontoanyvoteoftheholdersofanyclassorseriesofcapitalstockoftheCorporationrequiredherein

(includinganycertificateofdesignationrelatingtoanyseriesofPreferredStock),theBylawsorapplicablelaw,(i)priortotheTriggerDate,theaffirmativevoteoftheholdersofamajorityinvotingpowerofallthethen-outstandingsharesofstockoftheCorporationentitledtovotethereon,votingtogetherasasingleclass,and(ii)aftertheTriggerDate,theaffirmativevoteoftheholdersofatleast662/3%invotingpowerofallthethen-outstandingsharesofstockoftheCorporationentitledtovotethereon,votingtogetherasasingleclass,shallberequiredinorderforthestockholdersoftheCorporationtoalter,amend,repealorrescind,inwholeorinpart,anyprovisionoftheBylawsortoadoptanyprovisioninconsistenttherewith.

ARTICLEVI

BOARDOFDIRECTORS

A.ExceptasotherwiseprovidedinthisAmendedandRestatedCertificateofIncorporationortheDGCL,thebusinessandaffairsoftheCorporationshallbemanagedbyorunderthedirectionoftheBoardofDirectors.ExceptasotherwiseprovidedfororfixedpursuanttotheprovisionsofArticleIV(includinganycertificateofdesignationwithrespecttoanyseriesofPreferredStock)andthisArticleVIrelatingtotherightsoftheholdersofanyseriesofPreferredStocktoelectadditionaldirectors,thetotalnumberofdirectorsshallbedeterminedfromtimetotimeexclusivelybyresolutionadoptedbytheBoardofDirectors.Thedirectors(otherthanthosedirectorselectedbytheholdersofanyseriesofPreferredStock,votingseparatelyasaseriesortogetherwithoneormoreothersuchseries,asthecasemaybe)shallbedividedintothreeclassesdesignatedClassI,ClassIIandClassIII.Eachclassshallconsist,asnearlyaspossible,ofone-thirdofthetotalnumberofsuchdirectors.ClassIdirectorsshallinitiallyserveforatermexpiringatthefirstannualmeetingofstockholdersfollowingthedatetheCommonStockisfirstpubliclytraded(the“IPODate”),ClassIIdirectorsshallinitiallyserveforatermexpiringatthesecondannualmeetingofstockholdersfollowingtheIPODateandClassIIIdirectorsshallinitiallyserveforatermexpiringatthethirdannualmeetingofstockholdersfollowingtheIPODate.CommencingwiththefirstannualmeetingofstockholdersfollowingtheIPODate,thedirectorsoftheclasstobeelectedateachannualmeetingshallbeelectedforathree-yearterm.Ifthenumberofsuchdirectorsischanged,anyincreaseordecreaseshallbeapportionedamongtheclassessoastomaintainthenumberofdirectorsineachclassasnearlyequalaspossible,andanysuchadditionaldirectorofanyclasselectedorappointedtofillanewlycreateddirectorshipresultingfromanincreaseinsuchclassshallholdofficeforatermthatshallcoincidewiththeremainingtermofthatclass,butinnocaseshalladecreaseinthenumberofdirectorsremoveorshortenthetermofanyincumbentdirector.Anysuchdirectorshallholdofficeuntiltheannualmeetingatwhichhisorhertermexpiresanduntilhisorhersuccessorshallbeelectedandqualified,orhisorherdeath,resignation,retirement,disqualificationorremovalfromoffice.TheBoardofDirectorsisauthorizedtoassignmembersoftheBoardofDirectorsalreadyinofficetotheirrespectiveclass.

B.SubjecttotherightsgrantedtotheholdersofanyoneormoreseriesofPreferredStockthenoutstanding,anynewly-createddirectorshipontheBoardofDirectorsthatresultsfromanincreaseinthenumberofdirectorsandanyvacancyoccurringintheBoardofDirectors(whetherbydeath,resignation,retirement,disqualification,removalorothercause)shallbefilledonlybyamajorityofthedirectorstheninoffice,eveniflessthanaquorum,orbyasole

remainingdirector(andnotbystockholders).Anydirectorelectedorappointedtofillavacancyornewlycreateddirectorshipshallholdofficeuntilthenextelectionoftheclassforwhichsuchdirectorshallhavebeenchosenanduntilhisorhersuccessorshallbeelectedandqualified,oruntilhisorherearlierdeath,resignation,retirement,disqualificationorremoval.

C.Anyorallofthedirectors(otherthanthedirectorselectedbytheholdersofanyseriesofPreferredStockoftheCorporation,votingseparatelyasaseriesortogetherwithoneormoreothersuchseries,asthecasemaybe)mayberemovedonlyforcauseandonlybytheaffirmativevoteoftheholdersofatleast662/3%invotingpowerofallthethen-outstandingsharesofstockoftheCorporationentitledtovotethereon,votingtogetherasasingleclass;provided,however,thatpriortotheTriggerDate,anyorallofthedirectors(otherthanthedirectorselectedbytheholdersofanyseriesofPreferredStockoftheCorporation,votingseparatelyasaseriesortogetherwithoneormoreothersuchseries,asthecasemaybe)mayberemovedfromofficeatanytime,withorwithoutcause,bytheholdersofamajorityofthevotingpoweroftheoutstandingCommonStock.

D.ElectionsofdirectorsneednotbebywrittenballotunlesstheBylawsshallsoprovide.

E.DuringanyperiodwhentheholdersofanyseriesofPreferredStockhavetherighttoelectadditionaldirectors,votingseparatelyasaseriesortogetherwithoneormoreseries,thenuponcommencementandforthedurationoftheperiodduringwhichsuchrightcontinues:(i)thethenotherwisetotalauthorizednumberofdirectorsoftheCorporationshallautomaticallybeincreasedbysuchspecifiednumberofdirectors,andtheholdersofsuchPreferredStockshallbeentitledtoelecttheadditionaldirectorssoprovidedfororfixedpursuanttosaidprovisions,and(ii)eachsuchadditionaldirectorshallserveuntilsuchdirector’ssuccessorshallhavebeendulyelectedandqualified,oruntilsuchdirector’srighttoholdsuchofficeterminatespursuanttosaidprovisions,whicheveroccursearlier,subjecttohisorherearlierdeath,resignation,retirement,disqualificationorremoval.ExceptasotherwiseprovidedbytheBoardofDirectorsintheresolutionorresolutionsestablishingsuchseriesandthecertificateofdesignationrelatingtosuchseriesofPreferredStock,whenevertheholdersofanyseriesofPreferredStockhavingsuchrighttoelectadditionaldirectorsaredivestedofsuchrightpursuanttotheprovisionsofsuchstock,thetermsofofficeofallsuchadditionaldirectorselectedbytheholdersofsuchstock,orelectedorappointedtofillanyvacanciesresultingfromthedeath,resignation,disqualificationorremovalofsuchadditionaldirectors,shallforthwithterminateandthetotalauthorizednumberofdirectorsoftheCorporationshallbereducedaccordingly.

ARTICLEVII

LIMITATIONOFDIRECTORLIABILITYANDINDEMNIFICATION

A.TothefullestextentpermittedbytheDGCLasitnowexistsormayhereafterbeamended,adirectoroftheCorporationshallnotbepersonallyliabletotheCorporationoritsstockholdersformonetarydamagesforbreachoffiduciarydutyowedtotheCorporationoritsstockholders.

B.NeithertheamendmentnorrepealofthisArticleVII,northeadoptionofanyprovisionofthisAmendedandRestatedCertificateofIncorporation,nor,

tothefullestextentpermittedbytheDGCL,anymodificationoflawshalleliminate,reduceorotherwiseadverselyaffectanyrightorprotectionofacurrentorformerdirectoroftheCorporationexistingatthetimeofsuchamendment,repeal,adoptionormodification.

C.TheCorporationshall,tothefullestextentpermittedbyDelawarelaw,asthesameexistsormayhereafterbeamended(but,inthecaseofanysuchamendment,onlytotheextentthatsuchamendmentpermitstheCorporationtoprovidebroaderindemnificationrightsthansuchlawpermittedtheCorporationtoprovidepriortosuchamendment)indemnifyandholdharmlessanyandallcurrentorformerdirectorsandofficersoftheCorporationfromandagainstanyandalloftheexpenses,liabilitiesorlossesreasonablyincurredorsufferedbysuchindemniteeinconnectiontherewith;provided,however,thatexceptwithrespecttoproceedingstoenforcerightstoindemnificationoradvancementofexpensesorwithrespecttoanycompulsorycounterclaimbroughtbysuchindemnitee,theBylawsmayprovidethattheCorporationshallindemnifyanycurrentorformerdirectororofficerinconnectionwithaproceeding(orapartthereof)initiatedbysuchdirectororofficeronlyifsuchproceeding(orpartthereof)wasauthorizedbytheBoardofDirectors.TheCorporationshall,tothefullestextentpermittedbyDelawarelaw,asthesameexistsormayhereafterbeamended(but,inthecaseofanysuchamendment,onlytotheextentthatsuchamendmentpermitstheCorporationtoprovidebroaderrightsthansuchlawpermittedtheCorporationtoprovidepriortosuchamendment),havethepowertoadvanceexpensestoanyandallcurrentorformerdirectorsandofficersoftheCorporationandtoprovideindemnificationoradvanceexpensestoanyandallcurrentorformeremployeesandagentsoftheCorporationorotherPersons.

ARTICLEVIII

NOCONSENTOFSTOCKHOLDERSINLIEUOFMEETING,ANNUALANDSPECIALMEETINGSOFSTOCKHOLDERS

A.AnyactionrequiredorpermittedtobetakenbythestockholdersoftheCorporationmustbeeffectedatadulycalledannualorspecialmeetingofsuchholdersandmaynotbeeffectedbyanyconsentinwritingbysuchholders;provided,however,thatanyactionrequiredorpermittedtobetakenbytheholdersofPreferredStock,votingseparatelyasaseriesorseparatelyasaclasswithoneormoreothersuchseries,maybetakenwithoutameeting,withoutpriornoticeandwithoutavote,totheextentexpresslysoprovidedbytheapplicablecertificateofdesignationrelatingtosuchseriesofPreferredStock.

B.ExceptasotherwiserequiredbylawandsubjecttotherightsoftheholdersofanyseriesofPreferredStock,specialmeetingsofthestockholdersoftheCorporationforanypurposeorpurposesmaybecalledatanytimeonlybyoratthedirectionoftheBoardofDirectorsortheChairpersonoftheBoardofDirectors;providedthatpriortotheTriggerDate,specialmeetingsmayalsobecalledbyeitheroftheforegoingattherequestoftheControllingOwner.

C.Anannualmeetingofstockholdersfortheelectionofdirectorstosucceedthosewhosetermsexpireandforthetransactionofsuchotherbusinessas

mayproperlycomebeforethemeeting,shallbeheldatsuchplace,ifany,onsuchdate,andatsuchtimeasshallbefixedexclusivelybyresolutionoftheBoardofDirectorsoradulyauthorizedcommitteethereof.

ARTICLEIX

MISCELLANEOUS

A.IfanyprovisionorprovisionsofthisAmendedandRestatedCertificateofIncorporationshallbeheldtobeinvalid,illegalorunenforceableasappliedtoanycircumstanceforanyreasonwhatsoever:(i)thevalidity,legalityandenforceabilityofsuchprovisionsinanyothercircumstanceandoftheremainingprovisionsofthisAmendedandRestatedCertificateofIncorporation(including,withoutlimitation,eachportionofanyparagraphofthisAmendedandRestatedCertificateofIncorporationcontaininganysuchprovisionheldtobeinvalid,illegalorunenforceablethatisnotitselfheldtobeinvalid,illegalorunenforceable)shallnotinanywaybeaffectedorimpairedtherebyand(ii)tothefullestextentpossible,theprovisionsofthisAmendedandRestatedCertificateofIncorporation(including,withoutlimitation,eachsuchportionofanyparagraphofthisAmendedandRestatedCertificateofIncorporationcontaininganysuchprovisionheldtobeinvalid,illegalorunenforceable)shallbeconstruedsoastopermittheCorporationtoprotectitsdirectors,officers,employeesandagentsfrompersonalliabilityinrespectoftheirgoodfaithserviceorforthebenefitoftheCorporationtothefullestextentpermittedbylaw.

B.UnlesstheCorporationconsentsinwritingtotheselectionofanalternativeforum,theCourtofChanceryoftheStateofDelawareshall,tothefullestextentpermittedbylaw,bethesoleandexclusiveforumfor(i)anyderivativeactionorproceedingbroughtonbehalfoftheCorporation,(ii)anyactionassertingaclaimofbreachofafiduciarydutyowedbyanydirector,officer,employeeorstockholderoftheCorporationtotheCorporationortheCorporation’sstockholders,(iii)anyactionassertingaclaimagainsttheCorporationoranydirectororofficeroftheCorporationarisingpursuanttoanyprovisionoftheDGCLorthisAmendedandRestatedCertificateofIncorporationortheBylaws(aseithermaybeamendedand/orrestatedfromtimetotime),or(iv)anyactionassertingaclaimagainsttheCorporationoranydirectororofficeroftheCorporationgovernedbytheinternalaffairsdoctrine;provided,that,inthecaseofeachoftheforegoingclauses(i)through(iv),ifandonlyiftheCourtofChanceryoftheStateofDelawaredismissesanysuchactionforlackofsubjectmatterjurisdiction,suchactionmaybebroughtinanotherstatecourtsittingintheStateofDelaware.Tothefullestextentpermittedbylaw,anyPersonpurchasingorotherwiseacquiringanyinterestinsharesofcapitalstockoftheCorporationshallbedeemedtohavenoticeofandconsenttotheprovisionsofthisArticleIX(B).

ARTICLEX

DEFINITIONS

A.“ControllingOwner”meansMagnusHoldingsCo.,Ltd.oranysuccessororaffiliatethereof.

B.“Person”meansanyindividual,corporation,partnership,unincorporatedassociationorotherentity.

C.“TriggerDate”meansthefirstdateonwhichMagnusHoldingsCo.,Ltd.oranysuccessororaffiliatethereofceasestodirectlyorindirectly

beneficiallyown,collectively,thenumberofsharesofcommonstockrepresentingatleast50%ofthethen-issuedandoutstandingsharesoftheCommonStockoftheCorporation,withsuchbeneficialownershiptobedeterminedinaccordancewithRule13d-3promulgatedundertheSecuritiesExchangeActof1934,asamended.

[RemainderofPageIntentionallyLeftBlank]

INWITNESSWHEREOF,AcushnetHoldingsCorp.hascausedthisAmendedandRestatedCertificateofIncorporationtobeexecutedbyitsduly

authorizedofficeronthis[]dayof[],2016.ACUSHNETHOLDINGSCORP.

Name: JosephJ.NaumanTitle: ExecutiveVicePresident,ChiefLegalandAdministrativeOfficerand

Secretary

Exhibit3.2

AMENDEDANDRESTATEDBYLAWS

OFACUSHNETHOLDINGSCORP.

ARTICLEI

Offices

SECTION1.01RegisteredOffice.TheregisteredofficeandregisteredagentofAcushnetHoldingsCorp.(the“Corporation”)intheStateofDelaware

shallbeassetforthintheCertificateofIncorporation(asdefinedbelow).TheCorporationmayalsohaveofficesinsuchotherplacesintheUnitedStatesorelsewhere(andmaychangetheCorporation’sregisteredagent)astheBoardofDirectorsmay,fromtimetotime,determineorasthebusinessoftheCorporationmayrequireasdeterminedbyanyofficeroftheCorporation.

ARTICLEII

MeetingsofStockholders

SECTION2.01AnnualMeetings.Annualmeetingsofstockholdersmaybeheldatsuchplace,ifany,eitherwithinorwithouttheStateofDelaware,andatsuchtimeanddateastheBoardofDirectorsshalldetermineandstateinthenoticeofmeeting.TheBoardofDirectorsmay,initssolediscretion,determinethatannualmeetingsofstockholdersshallnotbeheldatanyplace,butmayinsteadbeheldsolelybymeansofremotecommunicationasdescribedinSection2.11oftheseBylawsinaccordancewithSection211(a)(2)oftheGeneralCorporationLawoftheStateofDelaware,asfromtimetotimeamended(the“DGCL”).TheBoardofDirectorsmaypostpone,rescheduleorcancelanyannualmeetingofstockholderspreviouslyscheduledbytheBoardofDirectors.

SECTION2.02SpecialMeetings.SpecialmeetingsofthestockholdersmayonlybecalledinthemannerprovidedintheCorporation’scertificateofincorporationasthenineffect(asthesamemaybeamendedand/orrestatedfromtimetotime,the“CertificateofIncorporation”)andmaybeheldatsuchplace,ifany,eitherwithinorwithouttheStateofDelaware,andatsuchtimeanddateastheBoardofDirectorsortheChairpersonoftheBoardofDirectorsshalldetermineandstateinthenoticeofmeeting.TheBoardofDirectorsmay,initssolediscretion,determinethatspecialmeetingsofstockholdersshallnotbeheldatanyplace,butmayinsteadbeheldsolelybymeansofremotecommunicationasdescribedinSection2.11oftheseBylawsinaccordancewithSection211(a)(2)oftheDGCL.TheBoardofDirectorsmaypostpone,rescheduleorcancelanyspecialmeetingofstockholderspreviouslyscheduledbytheBoardofDirectorsortheChairpersonoftheBoardofDirectors;provided,however,thatpriortotheTriggerDatewithrespecttoanyspecialmeetingpreviouslyscheduledattherequesttheControllingOwner,theBoardofDirectorsshallnotpostpone,rescheduleorcancelsuchspecialmeetingwithoutthepriorwrittenconsentofsuchControllingOwnerrequestingsuchspecialmeeting.

SECTION2.03NoticeofStockholderBusinessandNominations.

(A)AnnualMeetingsofStockholders.

(1)NominationsofpersonsforelectiontotheBoardofDirectorsandtheproposalofotherbusinesstobeconsideredbythestockholdersmaybemadeat

anannualmeetingofstockholdersonly(a)pursuanttotheCorporation’snoticeofmeeting(oranysupplementthereto)deliveredpursuanttoSection2.04ofArticleIIoftheseBylaws,(b)byoratthedirectionoftheBoardofDirectorsoranyauthorizedcommitteethereofor(c)byanystockholderoftheCorporationwhoisentitledtovoteatthemeeting,whocompliedwiththenoticeproceduressetforthinparagraphs(A)(2)and(A)(3)ofthisSection2.03andwhowasastockholderofrecordatthetimesuchnoticeisdeliveredtotheSecretaryoftheCorporation.

(2)Fornominationsorotherbusinesstobeproperlybroughtbeforeanannualmeetingbyastockholderpursuanttoclause(c)ofparagraph(A)(1)ofthisSection2.03,thestockholdermusthavegiventimelynoticethereofinwritingtotheSecretaryoftheCorporation,and,inthecaseofbusinessotherthannominationsofpersonsforelectiontotheBoardofDirectors,suchotherbusinessmustconstituteapropermatterforstockholderaction.Tobetimely,astockholder’snoticeshallbedeliveredtotheSecretaryoftheCorporationattheprincipalexecutiveofficesoftheCorporationnotlessthanninety(90)daysnormorethanonehundredandtwenty(120)dayspriortothefirstanniversaryoftheprecedingyear’sannualmeeting(whichdateshall,forpurposesoftheCorporation’sfirstannualmeetingofstockholdersafteritssharesofCommonStockarefirstpubliclytraded,bedeemedtohaveoccurredonMay31,2016);provided,however,thatintheeventthatthedateoftheannualmeetingisadvancedbymorethanthirty(30)days,ordelayedbymorethanseventy(70)days,fromtheanniversarydateofthepreviousyear’smeeting,orifnoannualmeetingwasheldordeemedtohaveoccurredintheprecedingyear,noticebythestockholdertobetimelymustbesodeliverednotearlierthanonehundredandtwenty(120)dayspriortosuchannualmeetingandnotlaterthanthecloseofbusinessonthelateroftheninetieth(90th)daypriortosuchannualmeetingorthetenth(10th)dayfollowingthedayonwhichpublicannouncementofthedateofsuchmeetingisfirstmade.Publicannouncementofanadjournmentorpostponementofanannualmeetingshallnotcommenceanewtimeperiod(orextendanytimeperiod)forthegivingofastockholder’snotice.NotwithstandinganythinginthisSection2.03(A)(2)tothecontrary,ifthenumberofdirectorstobeelectedtotheBoardofDirectorsatanannualmeetingisincreasedandthereisnopublicannouncementbytheCorporationnamingallofthenomineesfordirectororspecifyingthesizeoftheincreasedBoardofDirectorsatleastonehundred(100)dayspriortothefirstanniversaryoftheprioryear’sannualmeetingofstockholders,thenastockholder’snoticerequiredbythisSectionshallbeconsideredtimely,butonlywithrespecttonomineesforanynewpositionscreatedbysuchincrease,ifitisreceivedbytheSecretaryoftheCorporationnotlaterthanthecloseofbusinessonthetenth(10th)dayfollowingthedayonwhichsuchpublicannouncementisfirstmadebytheCorporation.

(3)Suchstockholder’snoticeshallsetforth(a)astoeachpersonwhomthestockholderproposestonominateforelectionorre-electionasadirector,allinformationrelatingtosuchpersonthatisrequiredtobedisclosedinsolicitationsofproxiesforelectionofdirectorsinanelectioncontest,orisotherwiserequired,ineachcasepursuanttoSection14(a)oftheSecurities

ExchangeActof1934,asamended(the“ExchangeAct”),andtherulesandregulationspromulgatedthereunder,includingsuchperson’swrittenconsenttobeingnamedintheproxystatementasanomineeandtoservingasadirectorifelected;(b)astoanyotherbusinessthatthestockholderproposestobringbeforethemeeting,abriefdescriptionofthebusinessdesiredtobebroughtbeforethemeeting,thetextoftheproposalorbusiness(includingthetextofanyresolutionsproposedforconsiderationand,intheeventthatsuchbusinessincludesaproposaltoamendtheseBylaws,thelanguageoftheproposedamendment),thereasonsforconductingsuchbusinessatthemeetingandanymaterialinterestinsuchbusinessofsuchstockholderandthebeneficialowner,ifany,onwhosebehalftheproposalismade;(c)astothestockholdergivingthenoticeandthebeneficialowner,ifany,onwhosebehalfthenominationorproposalismade(i)thenameandaddressofsuchstockholder,astheyappearontheCorporation’sbooksandrecords,andofsuchbeneficialowner,(ii)theclassorseriesandnumberofsharesofcapitalstockoftheCorporationwhichareowned,directlyorindirectly,beneficiallyandofrecordbysuchstockholderandsuchbeneficialowner,(iii)arepresentationthatthestockholderisaholderofrecordofthestockoftheCorporationatthetimeofthegivingofthenotice,willbeentitledtovoteatsuchmeetingandwillappearinpersonorbyproxyatthemeetingtoproposesuchbusinessornomination,(iv)arepresentationregardingwhetherthestockholderorthebeneficialowner,ifany,willbeorispartofagroupwhichwill(x)deliveraproxystatementand/orformofproxytoholdersofatleastthepercentageofthevotingpoweroftheCorporation’soutstandingcapitalstockrequiredtoapproveoradopttheproposalorelectthenomineeand/or(y)otherwisetosolicitproxiesorvotesfromstockholdersinsupportofsuchproposalornomination,(v)acertificationregardingwhethersuchstockholderandbeneficialowner,ifany,havecompliedwithallapplicablefederal,stateandotherlegalrequirementsinconnectionwiththestockholder’sand/orbeneficialowner’sacquisitionofsharesofcapitalstockorothersecuritiesoftheCorporationand/orthestockholder’sand/orbeneficialowner’sactsoromissionsasastockholderoftheCorporationand(vi)anyotherinformationrelatingtosuchstockholderandbeneficialowner,ifany,requiredtobedisclosedinaproxystatementorotherfilingsrequiredtobemadeinconnectionwithsolicitationsofproxiesfor,asapplicable,theproposaland/orfortheelectionofdirectorsinanelectioncontestpursuanttoandinaccordancewithSection14(a)oftheExchangeActandtherulesandregulationspromulgatedthereunder;(d)adescriptionofanyagreement,arrangementorunderstandingwithrespecttothenominationorproposaland/orthevotingofsharesofanyclassorseriesofstockoftheCorporationbetweenoramongthestockholdergivingthenotice,thebeneficialowner,ifany,onwhosebehalfthenominationorproposalismade,anyoftheirrespectiveaffiliatesorassociatesand/oranyothersactinginconcertwithanyoftheforegoing(collectively,“proponentpersons”);and(e)adescriptionofanyagreement,arrangementorunderstanding(includingwithoutlimitationanycontracttopurchaseorsell,acquisitionorgrantofanyoption,rightorwarranttopurchaseorsell,swaporotherinstrument)towhichanyproponentpersonisaparty,theintentoreffectofwhichmaybe(i)totransfertoorfromanyproponentperson,inwholeorinpart,anyoftheeconomicconsequencesofownershipofanysecurityoftheCorporation,(ii)toincreaseordecreasethevotingpowerofanyproponentpersonwithrespecttosharesofanyclassorseriesofstockoftheCorporationand/or(iii)toprovideanyproponentperson,directlyorindirectly,withtheopportunitytoprofitorshareinanyprofitderivedfrom,ortootherwisebenefiteconomicallyfrom,anyincreaseordecreaseinthevalueofanysecurityoftheCorporation.AstockholderprovidingnoticeofaproposednominationforelectiontotheBoardofDirectorsorotherbusinessproposedtobebroughtbeforeameeting(whethergivenpursuanttothis

paragraph(A)(3)orparagraph(B)ofthisSection2.03oftheseBylaws)shallupdateandsupplementsuchnoticefromtimetotimetotheextentnecessarysothattheinformationprovidedorrequiredtobeprovidedinsuchnoticeshallbetrueandcorrect(x)asoftherecorddatefordeterminingthestockholdersentitledtonoticeofthemeetingand(y)asofthedatethatisfifteen(15)dayspriortothemeetingoranyadjournmentorpostponementthereof,providedthatiftherecorddatefordeterminingthestockholdersentitledtovoteatthemeetingislessthanfifteen(15)dayspriortothemeetingoranyadjournmentorpostponementthereof,theinformationshallbesupplementedandupdatedasofsuchlaterdate.AnysuchupdateandsupplementshallbedeliveredinwritingtotheSecretaryoftheCorporationattheprincipalexecutiveofficesoftheCorporationnotlaterthanfive(5)daysaftertherecorddatefordeterminingthestockholdersentitledtonoticeofthemeeting(inthecaseofanyupdateandsupplementrequiredtobemadeasoftherecorddatefordeterminingthestockholdersentitledtonoticeofthemeeting),notlaterthanten(10)dayspriortothedateforthemeetingoranyadjournmentorpostponementthereof(inthecaseofanyupdateorsupplementrequiredtobemadeasoffifteen(15)dayspriortothemeetingoradjournmentorpostponementthereof)andnotlaterthanfive(5)daysaftertherecorddatefordeterminingthestockholdersentitledtovoteatthemeeting,butnolaterthanthedatepriortothemeetingoranyadjournmentorpostponementthereof(inthecaseofanyupdateandsupplementrequiredtobemadeasofadatelessthanfifteen(15)dayspriortothedateofthemeetingoranyadjournmentorpostponementthereof).TheCorporationmayrequireanyproposednomineetofurnishsuchotherinformationasitmayreasonablyrequiretodeterminetheeligibilityofsuchproposednomineetoserveasadirectoroftheCorporationandtodeterminetheindependenceofsuchdirectorundertheExchangeActandrulesandregulationsthereunderandapplicablestockexchangerules.

(B)SpecialMeetingsofStockholders.OnlysuchbusinessshallbeconductedataspecialmeetingofstockholdersasshallhavebeenbroughtbeforethemeetingpursuanttotheCorporation’snoticeofmeeting.NominationsofpersonsforelectiontotheBoardofDirectorsmaybemadeataspecialmeetingofstockholdersatwhichdirectorsaretobeelectedpursuanttotheCorporation’snoticeofmeeting(1)byoratthedirectionoftheBoardofDirectorsoranycommitteethereofor(2)providedthattheBoardofDirectors(orinthecaseofaspecialmeetingrequestedpursuanttoSectionBofArticleVIIIoftheCertificateofIncorporation,theControllingOwnerrequestingsuchspecialmeeting)hasdeterminedthatdirectorsshallbeelectedatsuchmeeting,byanystockholderoftheCorporationwhoisentitledtovoteatthemeeting,whocomplieswiththenoticeproceduressetforthinthisSection2.03andwhoisastockholderofrecordatthetimesuchnoticeisdeliveredtotheSecretaryoftheCorporation.IntheeventtheCorporationcallsaspecialmeetingofstockholdersforthepurposeofelectingoneormoredirectorstotheBoardofDirectors,anysuchstockholderentitledtovoteinsuchelectionofdirectorsmaynominateapersonorpersons(asthecasemaybe)forelectiontosuchposition(s)asspecifiedintheCorporation’snoticeofmeetingifthestockholder’snoticeasrequiredbyparagraph(A)(2)ofthisSection2.03shallbedeliveredtotheSecretaryattheprincipalexecutiveofficesoftheCorporationnotearlierthanthecloseofbusinessonthe120thdaypriortosuchspecialmeetingandnotlaterthanthecloseofbusinessonthelaterof(i)the90thdaypriortosuchspecialmeetingor(ii)the10thdayfollowingthedayonwhichpublicannouncementisfirstmadeofthedateofthespecialmeetingandofthenomineesproposedbytheBoardofDirectorstobeelectedatsuchmeeting.Innoeventshallthepublicannouncement

ofanadjournmentorpostponementofaspecialmeetingcommenceanewtimeperiod(orextendanytimeperiod)forthegivingofastockholder’snoticeasdescribedabove.

(C)General.(1)Exceptfor(a)anydirectorsentitledtobeelectedbytheholdersofPreferredStock,(b)anydirectorselectedorappointedinaccordancewithSection3.05hereofbytheBoardofDirectorstofillavacancyornewly-createddirectorship,or(c)asotherwiserequiredbyapplicablelaworstockexchangeregulation,atanymeetingofstockholders,onlysuchpersonswhoarenominatedinaccordancewiththeproceduressetforthinthisSection2.03shallbeeligibletoserveasdirectorsandonlysuchbusinessshallbeconductedatanannualorspecialmeetingofstockholdersasshallhavebeenbroughtbeforethemeetinginaccordancewiththeproceduressetforthinthisSection.Exceptasotherwiseprovidedbylaw,theCertificateofIncorporationortheseBylaws,thechairpersonofthemeetingshall,inadditiontomakinganyotherdeterminationthatmaybeappropriatefortheconductofthemeeting,havethepoweranddutytodeterminewhetheranominationoranybusinessproposedtobebroughtbeforethemeetingwasmadeorproposed,asthecasemaybe,inaccordancewiththeproceduressetforthintheseBylawsand,ifanyproposednominationorbusinessisnotincompliancewiththeseBylaws,todeclarethatsuchdefectiveproposalornominationshallbedisregarded.Thedateandtimeoftheopeningandtheclosingofthepollsforeachmatteruponwhichthestockholderswillvoteatameetingshallbeannouncedatthemeetingbythechairpersonofthemeeting.TheBoardofDirectorsmayadoptbyresolutionsuchrulesandregulationsfortheconductofthemeetingofstockholdersasitshalldeemappropriate.ExcepttotheextentinconsistentwithsuchrulesandregulationsasadoptedbytheBoardofDirectors,thechairpersonofthemeetingshallhavetherightandauthoritytoconveneand(foranyornoreason)torecessand/oradjournthemeeting,toprescribesuchrules,regulationsandproceduresandtodoallsuchactsas,inthejudgmentofsuchchairperson,areappropriatefortheproperconductofthemeeting.Suchrules,regulationsorprocedures,whetheradoptedbytheBoardofDirectorsorprescribedbythechairpersonofthemeeting,mayinclude,withoutlimitation,thefollowing:(i)theestablishmentofanagendaororderofbusinessforthemeeting;(ii)rulesandproceduresformaintainingorderatthemeetingandthesafetyofthosepresent;(iii)limitationsonattendanceatorparticipationinthemeetingtostockholdersentitledtovoteatthemeeting,theirdulyauthorizedandconstitutedproxiesorsuchotherpersonsasthechairpersonofthemeetingshalldetermine;(iv)restrictionsonentrytothemeetingafterthetimefixedforthecommencementthereof;and(v)limitationsonthetimeallottedtoquestionsorcommentsbyparticipantsandonshareholderapprovals.NotwithstandingtheforegoingprovisionsofthisSection2.03,unlessotherwiserequiredbylaw,ifthestockholder(oraqualifiedrepresentativeofthestockholder)doesnotappearattheannualorspecialmeetingofstockholdersoftheCorporationtopresentanominationorbusiness,suchnominationshallbedisregardedandsuchproposedbusinessshallnotbetransacted,notwithstandingthatproxiesinrespectofsuchvotemayhavebeenreceivedbytheCorporation.ForpurposesofthisSection2.03,tobeconsideredaqualifiedrepresentativeofthestockholder,apersonmustbeadulyauthorizedofficer,managerorpartnerofsuchstockholderormustbeauthorizedbyawritingexecutedbysuchstockholderoranelectronictransmissiondeliveredbysuchstockholdertoactforsuchstockholderasproxyatthemeetingofstockholdersandsuchpersonmustproducesuchwritingorelectronictransmission,orareliablereproductionofthewritingorelectronictransmission,atthemeetingofstockholders.UnlessandtotheextentdeterminedbytheBoardofDirectorsorthechairpersonofthemeeting,ameetingof

stockholdersshallnotberequiredtobeheldinaccordancewiththerulesofparliamentaryprocedure.

(2)WheneverusedintheseBylaws,“publicannouncement”shallmeandisclosure(a)inapressreleasereleasedbytheCorporation,providedsuchpressrelease(i)isreleasedbytheCorporationfollowingitscustomaryprocedures,(ii)isreportedbytheDowJonesNewsService,AssociatedPressorcomparablenationalnewsservice,or(iii)isgenerallyavailableoninternetnewssites,or(b)inadocumentpubliclyfiledbytheCorporationwiththeSecuritiesandExchangeCommissionpursuanttoSection13,14or15(d)oftheExchangeActandtherulesandregulationspromulgatedthereunder.

(3)NotwithstandingtheforegoingprovisionsofthisSection2.03,astockholdershallalsocomplywithallapplicablerequirementsoftheExchangeActandtherulesandregulationspromulgatedthereunderwithrespecttothematterssetforthinthisSection2.03;provided,however,that,tothefullestextentpermittedbylaw,anyreferencesintheseBylawstotheExchangeActortherulesandregulationspromulgatedthereunderarenotintendedtoandshallnotlimitanyrequirementsapplicabletonominationsorproposalsastoanyotherbusinesstobeconsideredpursuanttotheseBylaws(includingparagraphs(A)(1)(c)and(B)hereof),andcompliancewithparagraphs(A)(1)(c)and(B)ofthisSection2.03oftheseBylawsshallbetheexclusivemeansforastockholdertomakenominationsorsubmitotherbusiness.NothingintheseBylawsshallbedeemedtoaffectanyrightsoftheholdersofanyclassorseriesofstockhavingapreferenceovertheCommonStockastodividendsoruponliquidation,toelectdirectorsunderspecifiedcircumstances.

SECTION2.04NoticeofMeetings.Wheneverstockholdersarerequiredorpermittedtotakeanyactionatameeting,atimelynoticeinwritingorbyelectronictransmission,inthemannerprovidedinSection232oftheDGCL,ofthemeeting,whichshallstatetheplace,ifany,dateandtimeofthemeeting,themeansofremotecommunications,ifany,bywhichstockholdersandproxyholdersmaybedeemedtobepresentinpersonandvoteatsuchmeeting,therecorddatefordeterminingthestockholdersentitledtovoteatthemeeting,ifsuchdateisdifferentfromtherecorddatefordeterminingstockholdersentitledtonoticeofthemeeting,and,inthecaseofaspecialmeeting,thepurposesforwhichthemeetingiscalled,shallbemailedtoortransmittedelectronicallybytheSecretaryoftheCorporationtoeachstockholderofrecordentitledtovotethereatasoftherecorddatefordeterminingthestockholdersentitledtonoticeofthemeeting.Unlessotherwiseprovidedbylaw,theCertificateofIncorporationortheseBylaws,thenoticeofanymeetingshallbegivennotlessthanten(10)normorethansixty(60)daysbeforethedateofthemeetingtoeachstockholderentitledtovoteatsuchmeetingasoftherecorddatefordeterminingthestockholdersentitledtonoticeofthemeeting.

SECTION2.05Quorum.Unlessotherwiserequiredbylaw,theCertificateofIncorporationortherulesofanystockexchangeuponwhichtheCorporation’ssecuritiesarelisted,theholdersofrecordofamajorityofthevotingpoweroftheissuedandoutstandingsharesofcapitalstockoftheCorporationentitledtovotethereat,presentinpersonorrepresentedbyproxy,shallconstituteaquorumforthetransactionofbusinessatallmeetingsofstockholders.Notwithstandingtheforegoing,whereaseparatevotebyaclassorseriesorclassesorseriesisrequired,amajorityinvotingpoweroftheoutstandingsharesofsuchclassorseries

orclassesorseries,presentinpersonorrepresentedbyproxy,shallconstituteaquorumentitledtotakeactionwithrespecttothevoteonthatmatter.Onceaquorumispresenttoorganizeameeting,itshallnotbebrokenbythesubsequentwithdrawalofanystockholders.

SECTION2.06Voting.ExceptasotherwiseprovidedbyorpursuanttotheprovisionsoftheCertificateofIncorporation,eachstockholderentitledtovoteatanymeetingofstockholdersshallbeentitledtoonevoteforeachshareofstockheldbysuchstockholderwhichhasvotingpoweruponthematterinquestion.Eachstockholderentitledtovoteatameetingofstockholdersortoexpressconsenttocorporateactioninwritingwithoutameeting,totheextentpermittedbyandinthemannerprovidedintheCertificateofIncorporation,mayauthorizeanotherpersonorpersonstoactforsuchstockholderbyproxyinanymannerprovidedbyapplicablelaw,butnosuchproxyshallbevotedoracteduponafterthreeyearsfromitsdate,unlesstheproxyprovidesforalongerperiod.Aproxyshallbeirrevocableifitstatesthatitisirrevocableandif,andonlyaslongas,itiscoupledwithaninterestsufficientinlawtosupportanirrevocablepower.AstockholdermayrevokeanyproxywhichisnotirrevocablebyattendingthemeetingandvotinginpersonorbydeliveringtotheSecretaryoftheCorporationarevocationoftheproxyoranewproxybearingalaterdate.UnlessrequiredbytheCertificateofIncorporationorapplicablelaw,ordeterminedbythechairpersonofthemeetingtobeadvisable,thevoteonanyquestionneednotbebyballot.Onavotebyballot,eachballotshallbesignedbythestockholdervoting,orbysuchstockholder’sproxy,iftherebesuchproxy.Whenaquorumispresentorrepresentedatanymeeting,thevoteoftheholdersofamajorityofthevotingpowerofthesharesofstockpresentinpersonorrepresentedbyproxyandentitledtovoteonthesubjectmattershalldecideanyquestionbroughtbeforesuchmeeting,unlessthequestionisoneuponwhich,byexpressprovisionofapplicablelaw,oftherulesorregulationsofanystockexchangeapplicabletotheCorporation,ofanyregulationapplicabletotheCorporationoritssecurities,oftheCertificateofIncorporationoroftheseBylaws,adifferentvoteisrequired,inwhichcasesuchexpressprovisionshallgovernandcontrolthedecisionofsuchquestion.NotwithstandingtheforegoingsentenceandsubjecttotheCertificateofIncorporation,allelectionsofdirectorsshallbedeterminedbyapluralityofthevotescastinrespectofthesharespresentinpersonorrepresentedbyproxyatthemeetingandentitledtovoteontheelectionofdirectors.

SECTION2.07ChairpersonofMeetings.TheChairpersonoftheBoardofDirectors,ifoneiselected,or,inhisorherabsenceordisability,theChiefExecutiveOfficeroftheCorporation,orintheabsenceoftheChairpersonoftheBoardofDirectorsandtheChiefExecutiveOfficer,apersondesignatedbytheBoardofDirectorsshallbethechairpersonofthemeetingand,assuch,presideatallmeetingsofthestockholders.

SECTION2.08SecretaryofMeetings.TheSecretaryoftheCorporationshallactassecretaryatallmeetingsofthestockholders.Intheabsenceordisabilityofthesecretary,theChairpersonoftheBoardofDirectorsortheChiefExecutiveOfficershallappointapersontoactasSecretaryatsuchmeetings.

SECTION2.09ConsentofStockholdersinLieuofMeeting.AnyactionrequiredorpermittedtobetakenatanyannualorspecialmeetingofstockholdersoftheCorporationmaybetakenwithoutameeting,withoutpriornoticeandwithoutavoteonlytotheextentpermittedby

andinthemannerprovidedintheCertificateofIncorporationandinaccordancewithapplicablelaw.

SECTION2.10Adjournment.AtanymeetingofstockholdersoftheCorporation,thechairpersonofthemeetingorstockholdersholdingamajorityinvotingpowerofthesharesofstock,presentinpersonorbyproxyandentitledtovotethereateveniflessthanaquorum,shallhavethepowertoadjournthemeetingfromtimetotimewithoutnoticeotherthanannouncementatthemeetingiftheadjournmentisforlessthanthirty(30)days.Anybusinessmaybetransactedattheadjournedmeetingthatmighthavebeentransactedatthemeetingoriginallynoticed.Iftheadjournmentisformorethanthirty(30)days,anoticeoftheadjournedmeetingshallbegiventoeachstockholderofrecordentitledtovoteatthemeeting.Ifaftertheadjournmentanewrecorddatefordeterminationofstockholdersentitledtovoteisfixedfortheadjournedmeeting,theBoardofDirectorsshallfixastherecorddatefordeterminingstockholdersentitledtonoticeofsuchadjournedmeetingthesameoranearlierdateasthatfixedfordeterminationofstockholdersentitledtovoteattheadjournedmeeting,andshallgivenoticeoftheadjournedmeetingtoeachstockholderofrecordentitledtovoteatsuchadjournedmeetingasoftherecorddatesofixedfornoticeofsuchadjournedmeeting.

SECTION2.11RemoteCommunication.IfauthorizedbytheBoardofDirectorsinitssolediscretion,andsubjecttosuchguidelinesandproceduresastheBoardofDirectorsmayadopt,stockholdersandproxyholdersnotphysicallypresentatameetingofstockholdersmay,bymeansofremotecommunication:

(a)participateinameetingofstockholders;and

(b)bedeemedpresentinpersonandvoteatameetingofstockholderswhethersuchmeetingistobeheldatadesignatedplaceorsolelybymeansofremotecommunication,provided,that

(i)theCorporationshallimplementreasonablemeasurestoverifythateachpersondeemedpresentandpermittedtovoteatthemeetingbymeansofremotecommunicationisastockholderorproxyholder;

(ii)theCorporationshallimplementreasonablemeasurestoprovidesuchstockholdersandproxyholdersareasonableopportunitytoparticipate

inthemeetingandtovoteonmatterssubmittedtothestockholders,includinganopportunitytoreadorheartheproceedingsofthemeetingsubstantiallyconcurrentlywithsuchproceedings;and

(iii)ifanystockholderorproxyholdervotesortakesotheractionatthemeetingbymeansofremotecommunication,arecordofsuchvoteor

otheractionshallbemaintainedbytheCorporation.

SECTION2.12InspectorsofElection.TheCorporationmay,andshallifrequiredbylaw,inadvanceofanymeetingofstockholders,appointoneormoreinspectorsofelection,whomaybeemployeesoftheCorporation,toactatthemeetingoranyadjournmentthereofandtomakeawrittenreportthereof.TheCorporationmaydesignateoneormorepersonsasalternate

inspectorstoreplaceanyinspectorwhofailstoact.Intheeventthatnoinspectorsoappointedordesignatedisabletoactatameetingofstockholders,thechairpersonofthemeetingshallappointoneormoreinspectorstoactatthemeeting.Eachinspector,beforeenteringuponthedischargeofhisorherduties,shalltakeandsignanoathtoexecutefaithfullythedutiesofinspectorwithstrictimpartialityandaccordingtothebestofhisorherability.Theinspectorssoappointedordesignatedshall(i)ascertainthenumberofsharesofcapitalstockoftheCorporationoutstandingandthevotingpowerofeachsuchshare,(ii)determinethesharesofcapitalstockoftheCorporationrepresentedatthemeetingandthevalidityofproxiesandballots,(iii)countallvotesandballots,(iv)determineandretainforareasonableperiodarecordofthedispositionofanychallengesmadetoanydeterminationbytheinspectors,and(v)certifytheirdeterminationofthenumberofsharesofcapitalstockoftheCorporationrepresentedatthemeetingandsuchinspectors’countofallvotesandballots.Suchcertificationandreportshallspecifysuchotherinformationasmayberequiredbylaw.IndeterminingthevalidityandcountingofproxiesandballotscastatanymeetingofstockholdersoftheCorporation,theinspectorsmayconsidersuchinformationasispermittedbyapplicablelaw.Nopersonwhoisacandidateforanofficeatanelectionmayserveasaninspectoratsuchelection.

ARTICLEIII

BoardofDirectors

SECTION3.01Powers.ExceptasotherwiseprovidedbytheCertificateofIncorporation,theseBylawsortheDGCL,thebusinessandaffairsoftheCorporationshallbemanagedbyorunderthedirectionofitsBoardofDirectors.TheBoardofDirectorsmayexerciseallsuchauthorityandpowersoftheCorporationanddoallsuchlawfulactsandthingsasarenotbytheDGCLortheCertificateofIncorporationortheseBylawsdirectedorrequiredtobeexercisedordonebythestockholders.

SECTION3.02NumberandTerm;Chairperson.SubjecttotheCertificateofIncorporation,thenumberofdirectorsshallbefixedexclusivelybyresolutionoftheBoardofDirectors.ExceptasotherwisesetforthhereinandintheCertificateofIncorporation,Directorsshallbeelectedbythestockholdersattheirannualmeeting,andthetermofeachdirectorsoelectedshallbeassetforthintheCertificateofIncorporation.Directorsneednotbestockholders.TheBoardofDirectorsshallelectaChairpersonoftheBoard,whoshallhavethepowersandperformsuchdutiesasprovidedintheseBylawsandastheBoardofDirectorsmayfromtimetotimeprescribe.TheChairpersonoftheBoardshallpresideatallmeetingsoftheBoardofDirectorsatwhichheorsheispresent.IftheChairpersonoftheBoardisnotpresentatameetingoftheBoardofDirectors,theChairpersonmaydesignateanotherdirectoroftheBoardtopresideatsuchmeeting.IftheChairpersonoftheBoardisnotpresentatameetingoftheBoardofDirectorsandtheChairpersonhasnotdesignatedanotherdirectortopresideatthemeetingpursuanttotheprecedingsentence,theChiefExecutiveOfficer(iftheChiefExecutiveOfficerisadirectorandisnotalsotheChairpersonoftheBoard)shallpresideatsuchmeeting,and,iftheChiefExecutiveOfficerisnotpresentatsuchmeetingorisnotadirector,amajorityofthedirectorspresentatsuchmeetingshallelectone(1)oftheirmemberstopreside.

SECTION3.03Resignations.AnydirectormayresignatanytimeuponnoticegiveninwritingorbyelectronictransmissiontotheBoardofDirectors,

theChairpersonoftheBoardofDirectors,theChiefExecutiveOfficerortheSecretaryoftheCorporation.Theresignationshalltakeeffectatthetimespecifiedtherein,andifnotimeisspecified,atthetimeofitsreceipt.Theacceptanceofaresignationshallnotbenecessarytomakeiteffectiveunlessotherwiseexpresslyprovidedintheresignation.

SECTION3.04Removal.DirectorsoftheCorporationmayberemovedinthemannerprovidedintheCertificateofIncorporationandapplicablelaw.

SECTION3.05VacanciesandNewlyCreatedDirectorships.Exceptasotherwiseprovidedbylaw,vacanciesoccurringinanydirectorship(whetherbydeath,resignation,retirement,disqualification,removalorothercause)andnewlycreateddirectorshipsresultingfromanyincreaseinthenumberofdirectorsshallbefilledinaccordancewiththeCertificateofIncorporation.Anydirectorelectedorappointedtofillavacancyornewlycreateddirectorshipshallholdofficeuntilthenextelectionoftheclassforwhichsuchdirectorshallhavebeenchosenanduntilhisorhersuccessorshallbeelectedandqualified,oruntilhisorherearlierdeath,resignation,retirement,disqualificationorremoval.

SECTION3.06Meetings.RegularmeetingsoftheBoardofDirectorsmaybeheldatsuchplacesandtimesasshallbedeterminedfromtimetotimebytheBoardofDirectors.SpecialmeetingsoftheBoardofDirectorsmaybecalledbytheChiefExecutiveOfficeroftheCorporationortheChairpersonoftheBoardofDirectors,andshallbecalledbytheChiefExecutiveOfficerortheSecretaryoftheCorporationifdirectedbytheBoardofDirectorsandshallbeatsuchplace,dateandtimeasmaybefixedbythepersonorpersonsatwhosedirectionthemeetingiscalled.NoticeneednotbegivenofregularmeetingsoftheBoardofDirectors.Atleasttwentyfour(24)hoursbeforeeachspecialmeetingoftheBoardofDirectors,eitherwrittennotice,noticebyelectronictransmissionororalnotice(eitherinpersonorbytelephone)ofthetime,dateandplaceofthemeetingshallbegiventoeachdirector.Unlessotherwiseindicatedinthenoticethereof,anyandallbusinessmaybetransactedataspecialmeeting.

SECTION3.07Quorum,VotingandAdjournment.AmajorityofthetotalnumberofdirectorsshallconstituteaquorumforthetransactionofbusinessatanymeetingoftheBoard.Exceptasotherwiseprovidedbylaw,theCertificateofIncorporationortheseBylaws,theactofamajorityofthedirectorspresentatameetingatwhichaquorumispresentshallbetheactoftheBoardofDirectors.Intheabsenceofaquorum,amajorityofthedirectorspresentthereatmayadjournsuchmeetingtoanothertimeandplace.Noticeofsuchadjournedmeetingneednotbegivenifthetimeandplaceofsuchadjournedmeetingareannouncedatthemeetingsoadjourned.

SECTION3.08Committees;CommitteeRules.TheBoardofDirectorsmaydesignateoneormorecommittees,including,butnotlimitedto,anAuditCommittee,aCompensationCommitteeandaNominatingandCorporateGovernanceCommittee,eachsuchcommitteetoconsistofoneormoreofthedirectorsoftheCorporationasdeterminedbytheBoardofDirectors.TheBoardofDirectorsmaydesignateoneormoredirectorsasalternatemembersofanycommitteetoreplaceanyabsentordisqualifiedmemberatanymeetingofthecommittee.

Anysuchcommittee,totheextentprovidedintheresolutionoftheBoardofDirectorsestablishingsuchcommittee,shallhaveandmayexerciseallthepowersandauthorityoftheBoardofDirectorsinthemanagementofthebusinessandaffairsoftheCorporation,andmayauthorizethesealoftheCorporationtobeaffixedtoallpaperswhichmayrequireit;butnosuchcommitteeshallhavethepowerorauthorityinreferencetothefollowingmatters:(a)approvingoradopting,orrecommendingtothestockholders,anyactionormatter(otherthantheelectionorremovalofdirectors)expresslyrequiredbytheDGCLtobesubmittedtostockholdersforapprovalor(b)adopting,amendingorrepealinganyBylawoftheCorporation.AllcommitteesoftheBoardofDirectorsshallkeepminutesoftheirmeetingsandshallreporttheirproceedingstotheBoardofDirectorswhenrequestedorrequiredbytheBoardofDirectors.EachcommitteeoftheBoardofDirectorsmayfixitsownrulesofprocedureandshallholditsmeetingsasprovidedbysuchrules,exceptasmayotherwisebeprovidedbyaresolutionoftheBoardofDirectorsdesignatingsuchcommittee.Unlessotherwiseprovidedinsucharesolution,thepresenceofatleastamajorityofthemembersofthecommitteeshallbenecessarytoconstituteaquorumunlessthecommitteeshallconsistofoneortwomembers,inwhicheventonemembershallconstituteaquorum;andallmattersshallbedeterminedbyamajorityvoteofthememberspresentatameetingofthecommitteeatwhichaquorumispresent.Unlessotherwiseprovidedinsucharesolution,intheeventthatamemberandthatmember’salternate,ifalternatesaredesignatedbytheBoardofDirectors,ofsuchcommitteeisorareabsentordisqualified,thememberormembersthereofpresentatanymeetingandnotdisqualifiedfromvoting,whetherornotsuchmemberormembersconstituteaquorum,mayunanimouslyappointanothermemberoftheBoardofDirectorstoactatthemeetinginplaceofanysuchabsentordisqualifiedmember.

SECTION3.09ActionWithoutaMeeting.UnlessotherwiserestrictedbytheCertificateofIncorporation,anyactionrequiredorpermittedtobetakenatanymeetingoftheBoardofDirectorsorofanycommitteethereofmaybetakenwithoutameetingifallmembersoftheBoardofDirectorsoranycommitteethereof,asthecasemaybe,consenttheretoinwritingorbyelectronictransmission,andthewritingorwritingsorelectronictransmissionortransmissionsarefiledintheminutesofproceedingsoftheBoardofDirectors.Suchfilingshallbeinpaperformiftheminutesaremaintainedinpaperformorshallbeinelectronicformiftheminutesaremaintainedinelectronicform.

SECTION3.10RemoteMeeting.UnlessotherwiserestrictedbytheCertificateofIncorporation,membersoftheBoardofDirectors,oranycommitteedesignatedbytheBoardofDirectors,mayparticipateinameetingbymeansofconferencetelephoneorothercommunicationsequipmentinwhichallpersonsparticipatinginthemeetingcanheareachother.Participationinameetingbymeansofconferencetelephoneorothercommunicationsequipmentshallconstitutepresenceinpersonatsuchmeeting.

SECTION3.11Compensation.TheBoardofDirectorsshallhavetheauthoritytofixthecompensation,includingfeesandreimbursementofexpenses,ofdirectorsforservicestotheCorporationinanycapacity.

SECTION3.12RelianceonBooksandRecords.AmemberoftheBoardofDirectors,oramemberofanycommitteedesignatedbytheBoardofDirectorsshall,intheperformanceofsuchperson’sduties,befullyprotectedinrelyingingoodfaithuponrecordsoftheCorporation

anduponsuchinformation,opinions,reportsorstatementspresentedtotheCorporationbyanyoftheCorporation’sofficersoremployees,orcommitteesoftheBoardofDirectors,orbyanyotherpersonastomattersthememberreasonablybelievesarewithinsuchotherperson’sprofessionalorexpertcompetenceandwhohasbeenselectedwithreasonablecarebyoronbehalfoftheCorporation.

ARTICLEIV

Officers

SECTION4.01Number.TheofficersoftheCorporationshallincludeaChiefExecutiveOfficer,aPresidentandaSecretary,eachofwhomshallbeelectedbytheBoardofDirectorsandwhoshallholdofficeforsuchtermsasshallbedeterminedbytheBoardofDirectorsanduntiltheirsuccessorsareelectedandqualifiedoruntiltheirearlierresignationorremoval.Inaddition,theBoardofDirectorsmayelectaChiefOperatingOfficer,oneormoreBusinessUnitPresidentsandoneormoreVicePresidents,includingoneormoreExecutiveVicePresidents,SeniorVicePresidents,aTreasurerandoneormoreAssistantTreasurersandoneormoreAssistantSecretaries,whoshallholdtheirofficeforsuchtermsandshallexercisesuchpowersandperformsuchdutiesasshallbedeterminedfromtimetotimebytheBoardofDirectors.Anynumberofofficesmaybeheldbythesameperson.

SECTION4.02OtherOfficersandAgents.TheBoardofDirectorsmayappointsuchotherofficersandagentsasitdeemsadvisable,whoshallholdtheirofficeforsuchtermsandshallexerciseandperformsuchpowersanddutiesasshallbedeterminedfromtimetotimebytheBoardofDirectors.TheBoardofDirectorsmayappointoneormoreofficerscalledaViceChairperson,eachofwhomdoesnotneedtobeamemberoftheBoardofDirectors.

SECTION4.03ChiefExecutiveOfficer.TheChiefExecutiveOfficer,whomayalsobethePresident,subjecttothedeterminationoftheBoardofDirectors,shallhavegeneralexecutivecharge,management,andcontrolofthepropertiesandoperationsoftheCorporationintheordinarycourseofitsbusiness,withallsuchpowerswithrespecttosuchpropertiesandoperationsasmaybereasonablyincidenttosuchresponsibilities.IftheBoardofDirectorshasnotelectedaseparateChairpersonoftheBoardorintheabsenceorinabilitytoactastheChairpersonoftheBoard,theChiefExecutiveOfficershallexerciseallofthepowersChairpersonanddischargeallofthedutiesoftheChairpersonoftheBoard,butonlyiftheChiefExecutiveOfficerisadirectoroftheCorporation.

SECTION4.04PresidentandVicePresidents.ThePresidentshallhavesuchpowersandshallperformsuchdutiesasshallbeassignedtohimorherbytheChiefExecutiveOfficerortheBoardofDirectors.TheChiefOperatingOfficer,ifoneiselected,shallhavesuchpowersandshallperformsuchdutiesasshallbeassignedtohimorherbytheChiefExecutiveOfficerortheBoardofDirectors.EachBusinessUnitPresident,ifanyareelected,shallhavesuchpowersandshallperformsuchdutiesasshallbeassignedtohimorherbytheChiefExecutiveOfficerortheBoardofDirectors.EachVicePresident,ifanyareelected,ofwhomoneormoremaybedesignatedanExecutiveVicePresidentorSeniorVicePresident,shallhavesuchpowersand

shallperformsuchdutiesasshallbeassignedtohimorherbytheChiefExecutiveOfficerortheBoardofDirectors.

SECTION4.05Treasurer.TheTreasurershallhavecustodyofthecorporatefunds,securities,evidencesofindebtednessandothervaluablesoftheCorporationandshallkeepfullandaccurateaccountsofreceiptsanddisbursementsinbooksbelongingtotheCorporation.TheTreasurershalldepositallmoneysandothervaluablesinthenameandtothecreditoftheCorporationinsuchdepositoriesasmaybedesignatedby(i)theBoardofDirectorsoritsdesigneesselectedforsuchpurposesor(ii)thePresidentoranyVicePresident.TheTreasurershalldisbursethefundsoftheCorporation,takingpropervoucherstherefor.TheTreasurershallrendertotheChiefExecutiveOfficerandtheBoardofDirectors,upontheirrequest,areportofthefinancialconditionoftheCorporation.IfrequiredbytheBoardofDirectors,theTreasurershallgivetheCorporationabondforthefaithfuldischargeofhisorherdutiesinsuchamountandwithsuchsuretyastheBoardofDirectorsshallprescribe.

Inaddition,theTreasurershallhavesuchfurtherpowersandperformsuchotherdutiesincidenttotheofficeofTreasurerasfromtimetotimeareassignedtohimorherbytheChiefExecutiveOfficerortheBoardofDirectors.

SECTION4.06Secretary.TheSecretaryshall:(a)causeminutesofallmeetingsofthestockholdersanddirectorstoberecordedandkeptproperly;(b)causeallnoticesrequiredbytheseBylawsorotherwisetobegivenproperly;(c)seethattheminutebooks,stockbooks,andothernonfinancialbooks,recordsandpapersoftheCorporationarekeptproperly;and(d)causeallreports,statements,returns,certificatesandotherdocumentstobepreparedandfiledwhenandasrequired.TheSecretaryshallhavesuchfurtherpowersandperformsuchotherdutiesasprescribedfromtimetotimebytheChiefExecutiveOfficerortheBoardofDirectors.

SECTION4.07AssistantTreasurersandAssistantSecretaries.EachAssistantTreasurerandeachAssistantSecretary,ifanyareelected,shallbevestedwithallthepowersandshallperformallthedutiesoftheTreasurerandSecretary,respectively,intheabsenceordisabilityofsuchofficer,unlessoruntiltheChiefExecutiveOfficerortheBoardofDirectorsshallotherwisedetermine.Inaddition,AssistantTreasurersandAssistantSecretariesshallhavesuchpowersandshallperformsuchdutiesasshallbeassignedtothembytheChiefExecutiveOfficerortheBoardofDirectors.

SECTION4.08CorporateFundsandChecks.ThefundsoftheCorporationshallbekeptinsuchdepositoriesasshallfromtimetotimebeprescribedby(i)theBoardofDirectorsoritsdesigneesselectedforsuchpurposesor(ii)thePresidentoranyVicePresident.AllchecksorotherordersforthepaymentofmoneyshallbesignedbyanyoftheChiefExecutiveOfficer,thePresident,aVicePresident,theTreasurerortheSecretaryorsuchotherpersonoragentasmayfromtimetotimebeauthorizedandwithsuchcountersignature,ifany,asmayberequiredbytheBoardofDirectors.

SECTION4.09ContractsandOtherDocuments.AnyoftheChiefExecutiveOfficer,thePresident,aVicePresident,theTreasurerortheSecretaryorsuchotherofficerorofficersasmayfromtimetotimebedesignatedbytheforegoingorauthorizedbytheBoardofDirectorsorany

othercommitteegivenspecificauthorityinthepremisesbytheBoardofDirectorsduringtheintervalsbetweenthemeetingsoftheBoardofDirectors,shallhavepowertosignandexecuteonbehalfoftheCorporationdeeds,conveyancesandcontracts,andanyandallotherdocumentsrequiringexecutionbytheCorporation.

SECTION4.10OwnershipofStockofAnotherCorporation.UnlessotherwisedirectedbytheBoardofDirectors,anyoftheChiefExecutiveOfficer,thePresident,aVicePresident,theTreasurerortheSecretary,orsuchotherofficeroragentasshallbeauthorizedbytheBoardofDirectors,shallhavethepowerandauthority,onbehalfoftheCorporation,toattendandtovoteatanymeetingofsecurityholdersofanyentityinwhichtheCorporationholdssecuritiesorequityinterestsandmayexercise,onbehalfoftheCorporation,anyandalloftherightsandpowersincidenttotheownershipofsuchsecuritiesorequityinterestsatanysuchmeeting,includingtheauthoritytoexecuteanddeliverproxiesandconsentsonbehalfoftheCorporation.

SECTION4.11DelegationofDuties.Intheabsence,disabilityorrefusalofanyofficertoexerciseandperformhisorherduties,theBoardofDirectorsmaydelegatetoanotherofficersuchpowersorduties.

SECTION4.12ResignationandRemoval.AnyofficeroftheCorporationmayberemovedfromofficefororwithoutcauseatanytimebytheBoardofDirectors.AnyofficermayresignatanytimeinthesamemannerasprescribedwithrespecttodirectorsunderSection3.03oftheseBylaws.

SECTION4.13Vacancies.TheBoardofDirectorsshallhavethepowertofillvacanciesoccurringinanyoffice.

ARTICLEV

SECTION5.01SharesWithCertificates.ThesharesofstockoftheCorporationshallberepresentedbycertificates,providedthattheBoardofDirectorsmayprovidebyresolutionorresolutionsthatsomeorallofanyorallclassesorseriesoftheCorporation’sstockshallbeuncertificatedshares.AnysuchresolutionshallnotapplytosharesrepresentedbyacertificateuntilsuchcertificateissurrenderedtotheCorporation.EveryholderofstockintheCorporationrepresentedbycertificatesshallbeentitledtohaveacertificatesignedby,orinthenameoftheCorporationby,(a)anyoftheChairpersonoftheBoardofDirectorsortheViceChairpersonoftheBoardofDirectors,orthePresidentoraVicePresidentand(b)anyoftheTreasureroranAssistantTreasurerortheSecretaryoranAssistantSecretaryoftheCorporation,certifyingthenumberandclassofsharesofstockoftheCorporationownedbysuchholder.Anyorallofthesignaturesonthecertificatemaybeafacsimile.TheBoardofDirectorsshallhavethepowertoappointoneormoretransferagentsand/orregistrarsforthetransferorregistrationofcertificatesofstockofanyclass,andmayrequirestockcertificatestobecountersignedorregisteredbyoneormoreofsuchtransferagentsand/orregistrars.

SECTION5.02SharesWithoutCertificates.IftheBoardofDirectorschoosestoissuesharesofstockwithoutcertificates,theCorporation,ifrequiredby

theDGCL,shall,withinareasonabletimeaftertheissueortransferofshareswithoutcertificates,sendthestockholderawrittenstatementoftheinformationrequiredbytheDGCL.TheCorporationmayadoptasystemofissuance,recordationandtransferofitssharesofstockbyelectronicorothermeansnotinvolvingtheissuanceofcertificates,providedtheuseofsuchsystembytheCorporationispermittedinaccordancewithapplicablelaw.

SECTION5.03TransferofShares.SharesofstockoftheCorporationrepresentedbycertificatesshallbetransferableuponitsbooksbytheholdersthereof,inpersonorbytheirdulyauthorizedattorneysorlegalrepresentatives,uponsurrendertotheCorporationbydeliverythereof(totheextentevidencedbyaphysicalstockcertificate)tothepersoninchargeofthestockandtransferbooksandledgers.Certificatesrepresentingsuchshares,ifany,shallbecancelledandnewcertificates,ifthesharesaretobecertificated,shallthereuponbeissued.SharesofcapitalstockoftheCorporationthatarenotrepresentedbyacertificateshallbetransferredinaccordancewithapplicablelaw.Arecordshallbemadeofeachtransfer.Wheneveranytransferofsharesshallbemadeforcollateralsecurity,andnotabsolutely,itshallbesoexpressedintheentryofthetransferif,whenthecertificatesarepresentedfortransferoruncertificatedsharesarerequestedtobetransferred,boththetransferorandtransfereerequesttheCorporationtodoso.TheBoardofDirectorsshallhavepowerandauthoritytomakesuchrulesandregulationsasitmaydeemnecessaryorproperconcerningtheissue,transferandregistrationofsharesofstockoftheCorporation.

SECTION5.04Lost,Stolen,DestroyedorMutilatedCertificates.AnewcertificateofstockoruncertificatedsharesmaybeissuedintheplaceofanycertificatepreviouslyissuedbytheCorporationallegedtohavebeenlost,stolenordestroyed,andtheCorporationmay,initsdiscretion,requiretheownerofsuchlost,stolenordestroyedcertificate,orhisorherlegalrepresentative,togivetheCorporationabond,insuchsumastheCorporationmaydirect,inordertoindemnifytheCorporationagainstanyclaimsthatmaybemadeagainstitinconnectiontherewith.AnewcertificateoruncertificatedsharesofstockmaybeissuedintheplaceofanycertificatepreviouslyissuedbytheCorporationthathasbecomemutilateduponthesurrenderbysuchownerofsuchmutilatedcertificateand,ifrequiredbytheCorporation,thepostingofabondbysuchownerinanamountsufficienttoindemnifytheCorporationagainstanyclaimthatmaybemadeagainstitinconnectiontherewith.

SECTION5.05ListofStockholdersEntitledToVote.Theofficerwhohaschargeofthestockledgershallprepareandmake,atleastten(10)daysbeforeeverymeetingofstockholders,acompletelistofthestockholdersentitledtovoteatthemeeting(provided,however,iftherecorddatefordeterminingthestockholdersentitledtovoteislessthanten(10)daysbeforethedateofthemeeting,thelistshallreflectthestockholdersentitledtovoteasofthetenthdaybeforethemeetingdate),arrangedinalphabeticalorder,andshowingtheaddressofeachstockholderandthenumberofsharesregisteredinthenameofeachstockholder.Suchlistshallbeopentotheexaminationofanystockholder,foranypurposegermanetothemeetingatleastten(10)dayspriortothemeeting(a)onareasonablyaccessibleelectronicnetwork;providedthattheinformationrequiredtogainaccesstosuchlistisprovidedwiththenoticeofmeetingor(b)duringordinarybusinesshoursattheprincipalplaceofbusinessoftheCorporation.Inthe

eventthattheCorporationdeterminestomakethelistavailableonanelectronicnetwork,theCorporationshalltakereasonablestepstoensurethatsuchinformationisavailableonlytostockholdersoftheCorporation.Ifthemeetingistobeheldataplace,thenalistofstockholdersentitledtovoteatthemeetingshallbeproducedandkeptatthetimeandplaceofthemeetingduringthewholetimethereofandmaybeexaminedbyanystockholderwhoispresent.Ifthemeetingistobeheldsolelybymeansofremotecommunication,thenthelistshallalsobeopentotheexaminationofanystockholderduringthewholetimeofthemeetingonareasonablyaccessibleelectronicnetwork,andtheinformationrequiredtoaccesssuchlistshallbeprovidedwiththenoticeofthemeeting.Exceptasotherwiseprovidedbylaw,thestockledgershallbetheonlyevidenceastowhoarethestockholdersentitledtoexaminethelistofstockholdersrequiredbythisSection5.05ortovoteinpersonorbyproxyatanymeetingofstockholders.

SECTION5.06FixingDateforDeterminationofStockholdersofRecord.

(A)InorderthattheCorporationmaydeterminethestockholdersentitledtonoticeofanymeetingofstockholdersoranyadjournmentthereof,theBoard

ofDirectorsmayfixarecorddate,whichrecorddateshallnotprecedethedateuponwhichtheresolutionfixingtherecorddateisadoptedbytheBoardofDirectors,andwhichrecorddateshall,unlessotherwiserequiredbylaw,notbemorethansixty(60)norlessthanten(10)daysbeforethedateofsuchmeeting.IftheBoardofDirectorssofixesadate,suchdateshallalsobetherecorddatefordeterminingthestockholdersentitledtovoteatsuchmeetingunlesstheBoardofDirectorsdetermines,atthetimeitfixessuchrecorddate,thatalaterdateonorbeforethedateofthemeetingshallbethedateformakingsuchdetermination.IfnorecorddateisfixedbytheBoardofDirectors,therecorddatefordeterminingstockholdersentitledtonoticeofortovoteatameetingofstockholdersshallbeatthecloseofbusinessonthedaynextprecedingthedayonwhichnoticeisgiven,or,ifnoticeiswaived,atthecloseofbusinessonthedaynextprecedingthedayonwhichthemeetingisheld.Adeterminationofstockholdersofrecordentitledtonoticeofortovoteatameetingofstockholdersshallapplytoanyadjournmentofthemeeting;provided,however,thattheBoardofDirectorsmayfixanewrecorddatefordeterminationofstockholdersentitledtovoteattheadjournedmeeting,andinsuchcaseshallalsofixastherecorddateforstockholdersentitledtonoticeofsuchadjournedmeetingtotheextentrequiredbySection2.10oftheseBylawsthesameoranearlierdateasthatfixedfordeterminationofstockholdersentitledtovoteinaccordanceherewithattheadjournedmeetingineachcase,inaccordancewithSection2.10oftheseBylaws.

(B)InorderthattheCorporationmaydeterminethestockholdersentitledtoreceivepaymentofanydividendorotherdistributionorallotmentofanyrights,orentitledtoexerciseanyrightsinrespectofanychange,conversionorexchangeofstockorforthepurposeofanyotherlawfulaction,theBoardofDirectorsmayfixarecorddate,whichrecorddateshallnotprecedethedateuponwhichtheresolutionfixingtherecorddateisadopted,andwhichrecorddateshallnotbemorethansixty(60)dayspriortosuchaction.Ifnosuchrecorddateisfixed,therecorddatefordeterminingstockholdersforanysuchpurposeshallbeatthecloseofbusinessonthedayonwhichtheBoardofDirectorsadoptstheresolutionrelatingthereto.

SECTION5.07RegisteredStockholders.PriortothesurrendertotheCorporationofthecertificateorcertificatesforashareorsharesofstockornotificationtotheCorporationofthe

transferofuncertificatedshareswitharequesttorecordthetransferofsuchshareorshares,theCorporationmaytreattheregisteredownerofsuchshareorsharesasthepersonentitledtoreceivedividends,tovote,toreceivenotificationsandotherwisetoexercisealltherightsandpowersofanownerofsuchshareorshares.Tothefullestextentpermittedbylaw,theCorporationshallnotbeboundtorecognizeanyequitableorotherclaimtoorinterestinsuchshareorsharesonthepartofanyotherperson,whetherornotitshallhaveexpressorothernoticethereof.

ARTICLEVI

NoticeandWaiverofNotice

SECTION6.01Notice.Ifmailed,noticetostockholdersshallbedeemedgivenwhendepositedintheUnitedStatesmail,postageprepaid,directedtothestockholderatsuchstockholder’saddressasitappearsontherecordsoftheCorporation.Withoutlimitingthemannerbywhichnoticeotherwisemaybegiveneffectivelytostockholders,anynoticetostockholdersmaybegivenbyelectronictransmissioninthemannerprovidedinSection232oftheDGCL.

SECTION6.02WaiverofNotice.Awrittenwaiverofanynotice,signedbyastockholderordirector,orwaiverbyelectronictransmissionbysuchperson,whethergivenbeforeorafterthetimeoftheeventforwhichnoticeistobegiven,shallbedeemedequivalenttothenoticerequiredtobegiventosuchperson.Neitherthebusinessnorthepurposeofanymeetingneedbespecifiedinsuchawaiver.Attendanceatanymeeting(inpersonorbyremotecommunication)shallconstitutewaiverofnoticeexceptattendancefortheexpresspurposeofobjectingatthebeginningofthemeetingtothetransactionofanybusinessbecausethemeetingisnotlawfullycalledorconvened.

ARTICLEVII

Indemnification

SECTION7.01RighttoIndemnification.Eachpersonwhowasorismadeapartyoristhreatenedtobemadeapartytoorisotherwiseinvolvedinanyaction,suitorproceeding,whethercivil,criminal,administrativeorinvestigative(hereinaftera“proceeding”),byreasonofthefactthatheorsheisorwasadirectororanofficeroftheCorporationor,whileadirectororofficeroftheCorporation,isorwasservingattherequestoftheCorporationasadirector,officer,employee,agentortrusteeofanothercorporationorofapartnership,jointventure,trustorotherenterprise,includingservicewithrespecttoanemployeebenefitplan(hereinafteran“indemnitee”),whetherthebasisofsuchproceedingisallegedactioninanofficialcapacityasadirector,officer,employee,agentortrusteeorinanyothercapacitywhileservingasadirector,officer,employee,agentortrustee,shallbeindemnifiedandheldharmlessbytheCorporationtothefullestextentpermittedbyDelawarelaw,asthesameexistsormayhereafterbeamended(but,inthecaseofanysuchamendment,onlytotheextentthatsuchamendmentpermitstheCorporationtoprovidebroaderindemnificationrightsthansuchlawpermittedtheCorporationtoprovidepriortosuchamendment),againstallexpense,liabilityandloss(includingattorneys’

fees,judgments,fines,ERISAexcisetaxesorpenaltiesandamountspaidinsettlement)reasonablyincurredorsufferedbysuchindemniteeinconnectiontherewith;provided,however,that,exceptasprovidedinSection7.03withrespecttoproceedingstoenforcerightstoindemnificationoradvancementofexpensesorwithrespecttoanycompulsorycounterclaimbroughtbysuchindemnitee,theCorporationshallindemnifyanysuchindemniteeinconnectionwithaproceeding(orpartthereof)initiatedbysuchindemniteeonlyifsuchproceeding(orpartthereof)wasauthorizedbytheBoardofDirectors.

SECTION7.02RighttoAdvancementofExpenses.InadditiontotherighttoindemnificationconferredinSection7.01,anindemniteeshallalsohavetherighttobepaidbytheCorporationtheexpenses(includingattorney’sfees)incurredinappearingat,participatinginordefendinganysuchproceedinginadvanceofitsfinaldispositionorinconnectionwithaproceedingbroughttoestablishorenforcearighttoindemnificationoradvancementofexpensesunderthisArticleVII(whichshallbegovernedbySection7.03(hereinafteran“advancementofexpenses”);provided,however,that,iftheDGCLrequiresorinthecaseofanadvancemadeinaproceedingbroughttoestablishorenforcearighttoindemnificationoradvancement,anadvancementofexpensesincurredbyanindemniteeinhisorhercapacityasadirectororofficer(andnotinanyothercapacityinwhichservicewasorisrenderedbysuchindemnitee,including,withoutlimitation,servicetoanemployeebenefitplan)shallbemadesolelyupondeliverytotheCorporationofanundertaking(hereinafteran“undertaking”),byoronbehalfofsuchindemnitee,torepayallamountssoadvancedifitshallultimatelybedeterminedbyfinaljudicialdecisionfromwhichthereisnofurtherrighttoappeal(hereinaftera“finaladjudication”)thatsuchindemniteeisnotentitledtobeindemnifiedorentitledtoadvancementofexpensesunderSections7.01and7.02orotherwise.

SECTION7.03RightofIndemniteetoBringSuit.IfaclaimunderSection7.01or7.02isnotpaidinfullbytheCorporationwithin(i)60daysafterawrittenclaimforindemnificationhasbeenreceivedbytheCorporationor(ii)20daysafteraclaimforanadvancementofexpenseshasbeenreceivedbytheCorporation,theindemniteemayatanytimethereafterbringsuitagainsttheCorporationtorecovertheunpaidamountoftheclaimortoobtainadvancementofexpenses,asapplicable.Tothefullestextentpermittedbylaw,ifsuccessfulinwholeorinpartinanysuchsuit,orinasuitbroughtbytheCorporationtorecoveranadvancementofexpensespursuanttothetermsofanundertaking,theindemniteeshallbeentitledtobepaidalsotheexpenseofprosecutingordefendingsuchsuit.Inanysuitbroughtbytheindemniteetoenforcearighttoindemnificationhereunder(butnotinasuitbroughtbytheindemniteetoenforcearighttoanadvancementofexpenses)itshallbeadefensethattheindemniteehasnotmettheapplicablestandardforindemnificationsetforthinSection7.01oftheseBylaws.InanysuitbroughtbytheCorporationtorecoveranadvancementofexpensespursuanttothetermsofanundertaking,theCorporationshallbeentitledtorecoversuchexpensesuponafinaladjudicationthattheindemniteehasnotmettheapplicablestandardforindemnificationsetforthinSection7.01oftheseBylaws.NeitherthefailureoftheCorporation(includingitsdirectorswhoarenotpartiestosuchaction,acommitteeofsuchdirectors,independentlegalcounsel,oritsstockholders)tohavemadeadeterminationpriortothecommencementofsuchsuitthatindemnificationoftheindemniteeisproperinthecircumstancesbecausetheindemniteehasmettheapplicablestandardofconductsetforthinSection7.01oftheseBylaws,noranactualdeterminationbytheCorporation(includingitsdirectorswhoarenotpartiestosuchaction,a

committeeofsuchdirectors,independentlegalcounsel,oritsstockholders)thattheindemniteehasnotmetsuchapplicablestandardofconduct,shallcreateapresumptionthattheindemniteehasnotmettheapplicablestandardofconductor,inthecaseofsuchasuitbroughtbytheindemnitee,beadefensetosuchsuit.Inanysuitbroughtbytheindemniteetoenforcearighttoindemnificationortoanadvancementofexpenseshereunder,orbroughtbytheCorporationtorecoveranadvancementofexpensespursuanttothetermsofanundertaking,theburdenofprovingthattheindemniteeisnotentitledtobeindemnified,ortosuchadvancementofexpenses,underthisArticleVIIorotherwiseshallbeontheCorporation.

SECTION7.04IndemnificationNotExclusive.

(A)TheprovisionofindemnificationtoortheadvancementofexpensesandcoststoanyindemniteeunderthisArticleVII,ortheentitlementofanyindemniteetoindemnificationoradvancementofexpensesandcostsunderthisArticleVII,shallnotlimitorrestrictinanywaythepoweroftheCorporationtoindemnifyoradvanceexpensesandcoststosuchindemniteeinanyotherwaypermittedbylaworbedeemedexclusiveof,orinvalidate,anyrighttowhichanyindemniteeseekingindemnificationoradvancementofexpensesandcostsmaybeentitledunderanylaw,agreement,voteofstockholdersordisinteresteddirectorsorotherwise,bothastoactioninsuchindemnitee’scapacityasanofficer,director,employeeoragentoftheCorporationandastoactioninanyothercapacity.

(B)Giventhatcertainjointlyindemnifiableclaims(asdefinedbelow)mayariseduetotheserviceoftheindemniteeasadirectorand/oranofficeroftheCorporationattherequestoftheindemnitee-relatedentities(asdefinedbelow),theCorporationshallbefullyandprimarilyresponsibleforthepaymenttotheindemniteeinrespectofindemnificationoradvancementofallexpenses,judgments,penalties,finesandamountspaidinsettlementtotheextentlegallypermittedandasrequiredbythetermsoftheCertificateofIncorporationortheseBylaws(oranyotheragreementbetweentheCorporationandsuchpersons)inconnectionwithanysuchjointlyindemnifiableclaims,pursuanttoandinaccordancewiththetermsofthisArticleVII,irrespectiveofanyrightofrecoverytheindemniteemayhavefromtheindemnitee-relatedentities.Anyobligationonthepartofanyindemnitee-relatedentitiestoindemnifyoradvanceexpensestoanyindemniteeshallbesecondarytotheCorporation’sobligationandshallbereducedbyanyamountthattheindemniteemaycollectasindemnificationoradvancementfromtheCorporation.TheCorporationirrevocablywaives,relinquishesandreleasestheindemnitee-relatedentitiesfromanyandallclaimsagainsttheindemnitee-relatedentitiesforcontribution,subrogationoranyotherrecoveryofanykindinrespectthereof.UndernocircumstanceshalltheCorporationbeentitledtoanyrightofsubrogationorcontributionbytheindemnitee-relatedentitiesandnorightofadvancementorrecoverytheindemniteemayhavefromtheindemnitee-relatedentitiesshallreduceorotherwisealtertherightsoftheindemniteeortheobligationsoftheCorporationhereunder.Intheeventthatanyoftheindemnitee-relatedentitiesshallmakeanypaymenttotheindemniteeinrespectofindemnificationoradvancementofexpenseswithrespecttoanyjointlyindemnifiableclaim,theindemnitee-relatedentitymakingsuchpaymentshallbesubrogatedtotheextentofsuchpaymenttoalloftherightsofrecoveryoftheindemniteeagainsttheCorporation,andtheindemniteeshallexecuteallpapersreasonablyrequiredandshalldoallthingsthatmaybereasonablynecessarytosecuresuchrights,includingtheexecutionofsuchdocumentsasmaybenecessarytoenabletheindemnitee-relatedentities

effectivelytobringsuittoenforcesuchrights.Eachoftheindemnitee-relatedentitiesshallbethird-partybeneficiarieswithrespecttothisSection7.04(B)ofArticleVII,entitledtoenforcethisSection7.04(B)ofArticleVII.

ForpurposesofthisSection7.04(B)ofArticleVII,thefollowingtermsshallhavethefollowingmeanings:

(1)Theterm“indemnitee-relatedentities”meansanycorporation,limitedliabilitycompany,partnership,jointventure,trust,employeebenefitplanorotherenterprise(otherthantheCorporationoranyothercorporation,limitedliabilitycompany,partnership,jointventure,trust,employeebenefitplanorotherenterpriseforwhichtheindemniteehasagreed,onbehalfoftheCorporationorattheCorporation’srequest,toserveasadirector,officer,employeeoragentandwhichserviceiscoveredbytheindemnitydescribedherein)fromwhomanindemniteemaybeentitledtoindemnificationoradvancementofexpenseswithrespecttowhich,inwholeorinpart,theCorporationmayalsohaveanindemnificationoradvancementobligation(otherthanasaresultofobligationsunderaninsurancepolicy).

(2)Theterm“jointlyindemnifiableclaims”shallbebroadlyconstruedandshallinclude,withoutlimitation,anyaction,suitorproceedingforwhichtheindemniteeshallbeentitledtoindemnificationoradvancementofexpensesfromboththeindemnitee-relatedentitiesandtheCorporationpursuanttoDelawarelaw,anyagreementorcertificateofincorporation,bylaws,partnershipagreement,operatingagreement,certificateofformation,certificateoflimitedpartnershiporcomparableorganizationaldocumentsoftheCorporationortheindemnitee-relatedentities,asapplicable.

SECTION7.05NatureofRights.TherightsgrantedpursuanttotheprovisionsofthisArticleVIIshallvestatthetimeapersonbecomesanofficerordirectoroftheCorporationandshallbedeemedtocreateabindingcontractualobligationonthepartoftheCorporationtothepersonswhofromtimetotimeareelectedorappointedasofficersordirectorsoftheCorporation,andsuchpersonsinactingintheircapacitiesasofficersordirectorsoftheCorporationoranysubsidiaryshallbeentitledtorelyonsuchprovisionsofthisArticleVIIwithoutgivingnoticethereoftotheCorporation.Suchrightsshallcontinueastoanindemniteewhohasceasedtobeadirectororofficerandshallinuretothebenefitoftheindemnitee’sheirs,executorsandadministrators.Anyamendment,alterationorrepealofthisArticleVIIthatadverselyaffectsanyrightofanindemniteeoritssuccessorsshallbeprospectiveonlyandshallnotlimit,eliminate,orimpairanysuchrightwithrespecttoanyproceedinginvolvinganyoccurrenceorallegedoccurrenceofanyactionoromissiontoactthattookplacepriortosuchamendment,alterationorrepeal.

SECTION7.06Insurance.TheCorporationmaymaintaininsurance,atitsexpense,toprotectitselfandanydirector,officer,employeeoragentoftheCorporationoranothercorporation,partnership,jointventure,trustorotherenterpriseagainstanyexpense,liabilityorloss,whetherornottheCorporationwouldhavethepowertoindemnifysuchpersonagainstsuchexpense,liabilityorlossundertheDGCL.

SECTION7.07IndemnificationofEmployeesandAgentsoftheCorporation.TheCorporationmay,totheextentauthorizedfromtimetotimebythe

BoardofDirectors,grantrightstoindemnificationandtotheadvancementofexpensestoanyemployeeoragentoftheCorporationtothefullestextentoftheprovisionsofthisArticleVIIwithrespecttotheindemnificationandadvancementofexpensesofdirectorsandofficersoftheCorporation.AnyreferencetoanofficeroftheCorporationinthisArticleVIIshallbedeemedtoreferexclusivelytotheChiefExecutiveOfficer,thePresident,anyPresidentofabusinessunit,theChiefFinancialOfficer,theChiefOperatingOfficer,theChiefLegalandAdministrativeOfficer,theGeneralCounsel,theChiefHumanResourcesOfficer,theTreasurerandtheSecretaryoftheCorporationappointedpursuanttoArticleIVoftheseBy-laws,andtoanyVicePresident,AssistantSecretary,AssistantTreasurerorotherofficeroftheCorporationappointedbytheBoardofDirectorspursuanttoArticleIVoftheseBylaws,andanyreferencetoanofficerofanyothercorporation,partnership,jointventure,trust,employeebenefitplanorotherenterpriseshallbedeemedtoreferexclusivelytoanofficerappointedbytheboardofdirectorsorequivalentgoverningbodyofsuchotherentitypursuanttothecertificateofincorporationandbylawsorequivalentorganizationaldocumentsofsuchothercorporation,partnership,jointventure,trust,employeebenefitplanorotherenterprise.ThefactthatanypersonwhoisorwasanemployeeoftheCorporationoranemployeeofanyothercorporation,partnership,jointventure,trust,employeebenefitplanorotherenterprisehasbeengivenorhasusedthetitleof“VicePresident”oranyothertitlethatcouldbeconstruedtosuggestorimplythatsuchpersonisormaybeanofficeroftheCorporationorofsuchothercorporation,partnership,jointventure,trust,employeebenefitplanorotherenterpriseshallnotresultinsuchpersonbeingconstitutedas,orbeingdeemedtobe,anofficeroftheCorporationorofsuchothercorporation,partnership,jointventure,trust,employeebenefitplanorotherenterpriseforpurposesofthisArticleVII.

ARTICLEVIII

Miscellaneous

SECTION8.01ElectronicTransmission.ForpurposesoftheseBylaws,“electronictransmission”meansanyformofcommunication,notdirectly

involvingthephysicaltransmissionofpaper,thatcreatesarecordthatmayberetained,retrieved,andreviewedbyarecipientthereof,andthatmaybedirectlyreproducedinpaperformbysucharecipientthroughanautomatedprocess.

SECTION8.02CorporateSeal.TheBoardofDirectorsmayprovideasuitableseal,containingthenameoftheCorporation,whichsealshallbeinthechargeoftheSecretary.IfandwhensodirectedbytheBoardofDirectorsoracommitteethereof,duplicatesofthesealmaybekeptandusedbytheTreasurerorbyanAssistantSecretaryorAssistantTreasurer.

SECTION8.03FiscalYear.ThefiscalyearoftheCorporationshallendonDecember31,orsuchotherdayastheBoardofDirectorsmaydesignate.

SECTION8.04SectionHeadings.SectionheadingsintheseBylawsareforconvenienceofreferenceonlyandshallnotbegivenanysubstantiveeffectinlimitingorotherwiseconstruinganyprovisionherein.

SECTION8.05InconsistentProvisions.IntheeventthatanyprovisionoftheseBylawsisorbecomesinconsistentwithanyprovisionoftheCertificateof

Incorporation,theDGCLoranyotherapplicablelaw,suchprovisionoftheseBylawsshallnotbegivenanyeffecttotheextentofsuchinconsistencybutshallotherwisebegivenfullforceandeffect.

SECTION8.06Definitions.

“ControllingOwner”meansMagnusHoldingsCo.,Ltd.oranysuccessororaffiliatethereof.

“TriggerDate”meansthefirstdateonwhichMagnusHoldingsCo.,Ltd.oranysuccessororaffiliatethereofceasestodirectlyorindirectlybeneficiallyown,collectively,thenumberofsharesofcommonstockrepresentingatleast50%ofthethen-issuedandoutstandingsharesoftheCommonStockoftheCorporation,withsuchbeneficialownershiptobedeterminedinaccordancewithRule13d-3promulgatedundertheSecuritiesExchangeActof1934,asamended.

ARTICLEIX

Amendments

SECTION9.01Amendments.TheBoardofDirectorsisauthorizedtomake,repeal,alter,amendandrescind,inwholeorinpart,theseBylawswithouttheassentorvoteofthestockholdersinanymannernotinconsistentwiththelawsoftheStateofDelawareortheCertificateofIncorporation.NotwithstandinganyotherprovisionsoftheseBylawsoranyprovisionoflawwhichmightotherwisepermitalesservoteofthestockholders,inadditiontoanyvoteoftheholdersofanyclassorseriesofcapitalstockoftheCorporationrequiredbytheCertificateofIncorporation(includinganycertificateofdesignationrelatingtoanyseriesofPreferredStock(asdefinedintheCertificateofIncorporation),theseBylawsorapplicablelaw,(i)priortotheTriggerDate,theaffirmativevoteoftheholdersofamajorityinvotingpowerofallthethen-outstandingsharesofstockoftheCorporationentitledtovotethereon,votingtogetherasasingleclass,and(ii)aftertheTriggerDate,theaffirmativevoteoftheholdersofatleast662/3%invotingpowerofallthethen-outstandingsharesofstockoftheCorporationentitledtovotethereon,votingtogetherasasingleclass,shallberequiredinorderforthestockholdersoftheCorporationtoalter,amend,repealorrescind,inwholeorinpart,anyprovisionoftheseBylaws(including,withoutlimitation,thisSection9.01)ortoadoptanyprovisioninconsistentherewith.

[RemainderofPageIntentionallyLeftBlank]

Exhibit5.1

SIMPSONTHACHER&BARTLETTLLP425LEXINGTONAVENUENEWYORK,NY10017-3954

(212)455-2000

FACSIMILE(212)455-2502

October17,2016

AcushnetHoldingsCorp.333BridgeStreetFairhaven,Massachusetts02719

LadiesandGentlemen:

WehaveactedascounseltoAcushnetHoldingsCorp.,aDelawarecorporation(the"Company"),inconnectionwiththeRegistrationStatementonFormS-1(FileNo.333-212116)(asamended,the"RegistrationStatement")filedbytheCompanywiththeSecuritiesandExchangeCommission(the"Commission")undertheSecuritiesActof1933,asamended(the"SecuritiesAct"),relatingtothesalebycertainsellingstockholdersidentifiedintheRegistrationStatementofupto22,233,332sharesofcommonstockoftheCompany,parvalue$0.001pershare("CommonStock")tobeissuedbytheCompanytosuchsellingstockholdersupontheconversionof(i)theCompany'soutstandingSeriesA7.5%redeemableconvertiblepreferredstock(the"ConvertiblePreferredStock")and(ii)theCompany'soutstanding7.5%convertiblenotesdue2021(the"ConvertibleNotes")(togetherwithanyadditionalsharesofCommonStockthatmaybesoldbysuchsellingstockholdersupontheconversionoftheConvertiblePreferredStockandtheConvertibleNotespursuanttoRule462(b)(asprescribedbytheCommissionpursuanttotheSecuritiesAct)inconnectionwiththeofferingdescribedintheRegistrationStatement,the"Shares").

WehaveexaminedtheRegistrationStatement,theCompany'sThirdAmendedandRestatedCertificateofIncorporation,theNotePurchaseAgreementdatedasofJuly26,2011,byandamongtheCompanyandeachofthepurchaserslistedonthesignaturepagestheretogoverningcertainoftheConvertibleNotes,theNotePurchaseAgreementdatedasofJanuary18,2012,byandbetweentheCompanyandOdin4,LLCgoverningcertainoftheConvertibleNotesandthenotesrepresentingtheConvertibleNotes.Wealsohaveexaminedtheoriginals,orduplicatesorcertifiedorconformedcopies,ofsuchrecords,agreements,documentsandotherinstrumentsandhavemadesuchotherinvestigationsaswehavedeemedrelevantandnecessaryinconnectionwiththeopinionshereinaftersetforth.Astoquestionsoffactmaterialtothisopinion,wehaverelieduponcertificatesorcomparabledocumentsofpublicofficialsandofofficersandrepresentativesoftheCompany.

Inrenderingtheopinionsetforthbelow,wehaveassumedthegenuinenessofallsignatures,thelegalcapacityofnaturalpersons,theauthenticityofalldocumentssubmittedtousasoriginals,theconformitytooriginaldocumentsofalldocumentssubmittedtousasduplicatesorcertifiedorconformedcopiesandtheauthenticityoftheoriginalsofsuchlatterdocuments.

Basedupontheforegoing,andsubjecttothequalifications,assumptionsandlimitationsstatedherein,weareoftheopinionthat,upontheissuanceanddeliveryoftheSharesupontheconversionoftheConvertiblePreferredStockortheConvertibleNotes,asthecasemaybe,inaccordancewiththeirrespectiveterms,theShareswillbevalidlyissued,fullypaidandnonassessable.

WedonotexpressanyopinionhereinconcerninganylawotherthantheDelawareGeneralCorporationLaw.WeherebyconsenttothefilingofthisopinionletterasExhibit5.1totheRegistrationStatementandtotheuseofournameunderthecaption"LegalMatters"intheProspectusincludedintheRegistrationStatement.

Verytrulyyours,

/s/SimpsonThacher&BartlettLLP

SIMPSONTHACHER&BARTLETTLLP

Exhibit10.19

REGISTRATIONRIGHTSAGREEMENT

ThisREGISTRATIONRIGHTSAGREEMENT(this“Agreement”)isenteredintoasof[],2016,byandamongAcushnetHoldingsCorp.,aDelawarecorporation(the“Company”)andtheHolders(asdefinedherein).CapitalizedtermsusedhereinshallhavethemeaningassignedtosuchtermsinthetextofthisAgreementorinSection1.

WHEREAS,certainHoldersarecontemplatinganofferandsaleofcertainsharesofCommonStock(asdefinedherein)heldbythemtothepublicinanunderwritteninitialpublicofferingoftheCompany(the“IPO”);and

WHEREAS,effectiveupontheclosingoftheIPO(the“IPOClosing”),theCompanyhasagreedtograntcertainregistrationrightstotheHoldersonthetermsandconditionssetforthherein;

NOW,THEREFORE,inconsiderationofthemutualcovenantscontainedhereinandothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichareherebyacknowledged,thepartiestothisAgreementherebyagreeasfollows:

AGREEMENT

1.Definitions.AsusedinthisAgreement,thefollowingcapitalizedtermsshallhavethefollowingrespectivemeanings:

“Affiliate”means,withrespecttoanyPerson,anyotherPersondirectlyorindirectlycontrolling,controlledbyorundercommoncontrolwith,suchperson.

“Agreement”hasthemeaninggiventosuchterminthePreamble.

“AutomaticShelfRegistrationStatement”hasthemeaninggiventosuchterminSection2(c).

“BlockSale”meansthesaleofsharesofCommonStocktooneorseveralpurchasersinaregisteredtransactionbymeansofaboughtdeal,ablocktradeoradirectsale.

“Board”meanstheBoardofDirectorsoftheCompany.

“BusinessDay”meansanydaythatisnotaSaturday,aSundayorotherdayonwhichbanksarerequiredorauthorizedbylawtobeclosedinNewYorkCity.

“CommonStock”meansthecommonstock,parvalue$0.001pershare,oftheCompany,includinganysharesofcapitalstockintowhichtheCommonStockmaybeconverted(asaresultofrecapitalization,shareexchangeorsimilarevent)orareissuedincludingwithrespecttoanystocksplitorstockdividend,orasuccessorsecurity.

“CommonStockEquivalent”meansanyconvertiblepreferredstock,convertiblenotes,options,warrantsoranyothersecurityexercisable,exchangeable

orconvertibleintoCommonStock.

“Company”hasthemeaninggiventosuchterminthePreamble.

“control”(includingtheterms“controlling”,“controlledby”and“undercommoncontrolwith”),withrespecttotherelationshipbetweenoramongtwoormorePersons,meansthepossession,directlyorindirectly,ofthepowertodirectorcausethedirectionoftheaffairsormanagementofaPerson,whetherthroughtheownershipofvotingsecurities,astrusteeorexecutor,bycontractorotherwise.

“CoveredPerson”hasthemeaninggiventosuchterminSection6(a).

“DemandRegistration”hasthemeaninggiventosuchterminSection2(d).

“DemandRequest”hasthemeaningdefinedinSection2(d).

“EffectiveDate”hasthemeaningdefinedinSection9(a).

“ExchangeAct”meanstheSecuritiesExchangeActof1934,asamended,andanysuccessorstatutetheretoandtherulesandregulationsoftheSECpromulgatedthereunder.

“ExcludedTransfer”meansaTransferofCommonStockbyaFinancialInvestor(i)pursuanttoapledge,hypothecationorothergrantingofasecurityinterestintheCommonStockascollateralorsecurityforanyloan,advanceorextensionofcredit,or(ii)toanyAffiliatesofsuchFinancialInvestor.Fortheavoidanceofdoubt,anysubsequentTransferupondefaultorforeclosureofaTransferreferredtoinsubsection(i)aboveshallnotbecountedasanExcludedTransfer.

“FinancialInvestors”meansOdin3,LLC(“Odin3”),Odin4,LLC(“Odin4”),NeopluxNo.1PrivateEquity(“Neoplux”)andWBAtlasLLC(togetherwithOdin3,Odin4,andNeoplux,the“OriginalFinancialInvestors”)andtheirdirectandindirecttransferees,ifany,whobecomeapartytothisAgreementpursuanttoSection8(a).

“FINRA”meanstheFinancialIndustryRegulatoryAuthority.

“FreeWritingProspectus”hasthemeaninggiventosuchterminSection4(a).

“Holder”meanseachholderofRegistrableSecurities,listedinScheduleIattachedhereto,inhis,heroritscapacityasarecordorbeneficialownerofRegistrableSecuritiesandtheirdirectandindirecttransferees,ifany,whobecomesapartytothisAgreementpursuanttoSection8(a);and“Holders”collectivelymeansallHolders.

“including”means“includingwithoutlimitation”.

“IndemnifiedParty”hasthemeaninggiventosuchterminSection6(c).

“IndemnifyingParty”hasthemeaninggiventosuchterminSection6(c).

“IPO”hasthemeaninggiventosuchterminthePreamble.

“IPOClosing”hasthemeaninggiventosuchterminthePreamble.

“Losses”hasthemeaninggiventosuchterminSection6(a).

“Magnus”meansMagnusHoldingsCompanyLtd.anditsdirectandindirecttransfereeswhobecomeapartytothisAgreementpursuanttoSection8(a).

“MajorFinancialInvestors”meansalltheFinancialInvestors,actingjointlytogether;providedthatinordertobeincludedasaMajorFinancialInvestor,

aFinancialInvestorortransfereemustindividuallyholdoneandahalfpercent(1.5%)ormoreoftheissuedandoutstandingsharesofCommonStockatsuchtimeofdetermination(consideringOdin3andOdin4asanindividualFinancialInvestorandcalculatingtheirownershipofCommonStockonaconsolidatedbasisforpurposesofthisdefinition).

“MinorityFinancialInvestor”meansaFinancialInvestorthatindividuallyholdslessthanoneandahalfpercent(1.5%)oftheissuedandoutstandingsharesofCommonStockatsuchtimeofdetermination(consideringOdin3andOdin4asanindividualFinancialInvestorandcalculatingtheirownershipofCommonStockonaconsolidatedbasisforpurposesofthisdefinition).

“MNPI”meansmaterialnon-publicinformationwithinthemeaningofRegulationFDpromulgatedundertheExchangeAct,whichshallinanycaseincludethereceiptofanynoticedeliveredbytheCompanyunderthisAgreement,includingpursuanttoSection2orSection3hereofandtheinformationcontainedinanysuchnotice.

“OptOutRequest”hasthemeaninggiventosuchterminSection10(d).

“Person”meansanyindividual,partnership,jointventure,corporation,limitedliabilitycompany,trust,unincorporatedorganization,governmentoranydepartmentoragencythereoforanyotherentity.

“Policies”hasthemeaninggiventosuchterminSection10(b).

“PiggybackRegistration”hasthemeaninggiventosuchterminSection3(a).

“Prospectus”meanstheprospectusincludedinanyRegistrationStatement(includingaprospectusthatdisclosesinformationpreviouslyomittedfromaprospectusfiledaspartofaneffectiveRegistrationStatementinrelianceuponRule430ApromulgatedundertheSecuritiesAct),asamendedorsupplementedbyanyprospectussupplement,relatingtoRegistrableSecurities,andallotheramendmentsandsupplementstotheProspectus,including

post-effectiveamendments,andallmaterialincorporatedbyreferenceordeemedtobeincorporatedbyreferenceinsuchprospectus.

“QualificationDate”hasthemeaninggiventosuchterminSection2(a).

“RRACommunications”hasthemeaninggiventosuchterminSection10(a).

“RegistrationExpenses”hasthemeaninggiventosuchterminSection7.

“RegistrableSecurities”means(a)anysharesofCommonStock(includinganyCommonStockissuedorissuableuponexercise,exchangeorconversionofanyCommonStockEquivalents)owned,eitherofrecordorbeneficially,bytheHoldersasoftheEffectiveDate,provided,itshallnotincludeanysharesofCommonStocksoldbyanysuchHoldersintheIPO,and(b)anyequitysecuritiesorotherequityinterestsissuedorissuable,directlyorindirectly,withrespecttothesecuritiesdescribedinclause(a)bywayofconversionorexchangethereoforstockdividends,stocksplitsorinconnectionwithacombinationofshares,reclassification,recapitalization,merger,consolidationorotherreorganization.Fortheavoidanceofdoubt,“RegistrableSecurities”shallincludeanysharesofCommonStockowned,eitherofrecordorbeneficially,bytheHoldersincludedinanyover-allotmentoptionintheIPOandunexercisedinaccordancewiththetermsoftheunderwritingagreementoftheIPO.AstoanyparticularRegistrableSecurities,suchsecuritiesshallceasetobeRegistrableSecuritieswhen(i)theyaredisposedofpursuanttoaneffectiveRegistrationStatementundertheSecuritiesAct,(ii)theyaresoldortransferredpursuanttoRule144(orotherexemptionfromregistrationundertheSecuritiesAct)andthetransfereethereofdoesnotreceive“restrictedsecurities”asdefinedinRule144,or(iii)theyshallhaveceasedtobeoutstanding(includingduetorepurchasebytheCompanyorasubsidiaryoftheCompany).

“RegistrationStatement”meansanyregistrationstatementoftheCompanyfiledwiththeSECundertheSecuritiesActwhichcoversanyoftheRegistrableSecuritiespursuanttotheprovisionsofthisAgreement,includinganyProspectus,FreeWritingProspectus,amendmentsandsupplementstosuchregistrationstatement,includingpost-effectiveamendments,allexhibitsandallmaterialincorporatedbyreferenceordeemedtobeincorporatedbyreferenceinsuchregistrationstatement.

“Representatives”hasthemeaninggiventosuchterminSection10(b).

“RequestedShares”hasthemeaninggiventosuchterminSection2(c).

“RequiredHolders”meanseachof(i)theMajorFinancialInvestorsand(ii)anyMinorityFinancialInvestor,ifany;providedthatif,aftertheEffectiveDate,theFinancialInvestorsTransfertothirdparties(otherthaninanExcludedTransfer)atleastormoreRegistrableSecurities(fortheavoidanceofdoubt,asadjustedforanystocksplitsorstockdividendswithrespecttosuchsharesofCommonStock)intheaggregate,inoneormoretransactions,thenRequiredHoldersmeanseachofthefollowing:(i)theMajorFinancialInvestors,(ii)aMinorityFinancialInvestor,ifany,and(iii)Magnus.

“Rule144”meansRule144undertheSecuritiesAct,assuchrulemaybeamendedfromtimetotime,oranysimilarruleorregulationhereafteradopted

bytheSEC.

“Rule405”meansRule405undertheSecuritiesAct,assuchrulemaybeamendedfromtimetotime,oranysimilarruleorregulationhereafteradoptedbytheSEC.

“SEC”meanstheU.S.SecuritiesandExchangeCommissionoranyotherfederalagencyatthetimeadministeringtheSecuritiesActortheExchangeAct.

“SecuritiesAct”meanstheSecuritiesActof1933,asamended,andanysuccessorstatutetheretoandtherulesandregulationsoftheSECpromulgatedthereunder.

“ShelfTakedownRequest”hasthemeaninggiventosuchterminSection2(b).

“ShelfRegistrationStatement”hasthemeaninggiventosuchterminSection2(a).

“ShelfTakedown”hasthemeaninggiventosuchterminSection2(b).

“Suspension”hasthemeaningdefinedinSection2(g).

“SuspensionEvent”hasthemeaningdefinedinSection2(g).

“Transfer”meanssell,assign,convey,donate,orotherwisedisposeof,orcontracttodoanyoftheforegoing.

“Transferred”hasacorrelativemeaningtotheterm“Transfer”.

“UnderwrittenOffering”meansanofferingregisteredundertheSecuritiesActinwhichsecuritiesoftheCompanyaresoldtooneormoreunderwritersonafirm-commitmentbasisforreofferingtothepublic.

“WKSI”hasthemeaninggiventosuchterminSection2(c).

2.RegistrationRights.

(a)ShelfRegistration.SubjecttoSection2(g)hereofandtotheextenttheFinancialInvestorsownatleast$25millionworthofthemarketvalueofsharesofRegistrableSecuritiesasofsuchdate,upontheCompanybeingeligibletofilearegistrationstatementonFormS-3oranysuccessorform(the“QualificationDate”)butinnoeventmorethan30daysaftertheQualificationDate,theCompanyagreestofilewiththeSECandthereafteruseitsreasonablebesteffortstocausetobedeclaredeffectivebytheSECassoonasreasonablypracticableaftersuchfilingdateashelfRegistrationStatementonFormS-3oranycomparableorsuccessorformorformsoranysimilarshort-formregistrationconstitutinga“shelf”registrationstatementprovidingfortheregistrationof,andthesalebytheFinancial

Investorsonacontinuousordelayedbasisof,alloftheirRegistrableSecurities,pursuanttoRule415orotherwise(a“ShelfRegistrationStatement”).

The“PlanofDistribution”sectionofsuchShelfRegistrationStatementshallpermitalllawfulmeansofdispositionofRegistrableSecurities,includingUnderwrittenOfferings,BlockSales,agentedtransactions,salesdirectlyintothemarket,purchasesorsalesbybrokersandsalesnotinvolvingapublicoffering.SubjecttotheprovisionssetforthinthisAgreement(including,fortheavoidanceofdoubt,Section2(g)),ifaShelfRegistrationStatementistheneffective,aFinancialInvestormaysellRegistrableSecuritiesavailableforsalebyitpursuanttosuchShelfRegistrationStatement.

(b)ShelfTakedowns.SubjecttotheprovisionsofSection2(g)hereof,eachoftheMajorFinancialInvestorsandanyMinorityFinancialInvestor(each,a“ShelfRequestingHolder”)shallbeentitled,atanytimeandfromtimetotimewhenaShelfRegistrationStatementiseffective,tosellanyoftheirRegistrableSecuritiesheldbythemasarethenregisteredpursuanttoaShelfRegistrationStatementinanUnderwrittenOffering(each,a“ShelfTakedown”)solongassuchrequestcoversatleast$25millionworthofthemarketvalueofsharesofCommonStockatthetimeoftheShelfTakedownRequestorsuchlesseramountifallRegistrableSecuritiesavailableforsalebyallFinancialInvestorspursuanttosuchregistrationstatementarerequestedtobeincluded.TheShelfRequestingHolder(s)shallmakesuchelectionbydeliveringtotheCompanyawrittenrequest(a“ShelfTakedownRequest”)forsuchofferingspecifyingthenumberofRegistrableSecuritiesthatsuchShelfRequestingHolder(s)desiretosellpursuanttosuchShelfTakedown.Withinone(1)BusinessDayafterreceiptofanysuchrequestforaShelfTakedown,theCompanyshallgivewrittennoticeofsuchrequesttoallFinancialInvestorsthatarenotShelfRequestingHolders,ifany,andtheCompanyshall,subjecttotheprovisionsofSection2(f)hereof,includeinsuchShelfTakedown,thenumberofRegistrableSecuritiesofShelfRequestingHolder(s)andanyFinancialInvestor(s)thatshallhavemadeawrittenrequesttotheCompanyforinclusionoftheirRegistrableSecuritiesintheShelfRegistrationStatement(whichrequestshallspecifythemaximumnumberofRegistrableSecuritiesintendedtobesoldbysuchFinancialInvestor)andwithrespecttowhichtheCompanyhasreceivedwrittenrequestsforinclusionthereinwithinfive(5)BusinessDaysafterthedatetheCompany’snoticewasdelivered.TheCompanyshall,asexpeditiouslyaspossible(andinanyeventwithinten(10)BusinessDaysafterthereceiptofaShelfTakedownRequest,unlessalongerperiodisagreedtobytheShelfRequestingHolder(s)),facilitatesuchShelfTakedown.ThenumberofShelfTakedownsthattheapplicableFinancialInvestorsmayeffectpursuanttothisSection2(b)shallnotbelimited,subjecttotheminimumdollarthresholdsetforthinthefirstsentenceofthisSection2(b).TheCompanyshallcomplywiththeapplicableprovisionsoftheSecuritiesActwithrespecttothedispositionofallRegistrableSecuritiescoveredbytheShelfRegistrationStatementinaccordancewiththeintendedmethodsofdispositionbyShelfRequestingHolder(s).

Notwithstandingtheforegoing,iftheShelfRequestingHolder(s)wishtoengageinaBlockSalethatisanUnderwrittenOfferingoffaShelfRegistrationStatement(eitherthroughfilinganAutomaticShelfRegistrationStatementorthroughatake-downfromanalreadyexistingShelfRegistrationStatement),thennotwithstandingtheforegoingnoticeandtimeperiods,thentheShelfRequestingHolder(s)onlyneedtonotifytheCompanyofthe

BlockSaleaminimumofthree(3)BusinessDayspriortothedaysuchofferingistocommence(unlessalongerperiodisagreedtobytheShelfRequestingHolder(s))and,subjecttoSection2(f),theCompanyshallincludeinsuchBlockSaletheRegistrableSecuritiesoftheShelfRequestingHolder(s)requestedtobeincludedandshallasexpeditiouslyaspossiblefacilitatesuchofferingsuchthatitmaycommencenotlaterthanthree(3)BusinessDaysfromreceiptofaShelfTakedownRequest(unlessalongerperiodisagreedtobytheShelfRequestingHolder(s));providedthat,theShelfRequestingHolder(s)shallusereasonablebesteffortstoworkwiththeCompanyandtheunderwriterspriortomakingsuchrequestinordertofacilitate(i)preparationoftheregistrationstatement,prospectusandotherofferingdocumentationrelatedtotheBlockSale,(ii)theunderwriters’duediligenceand(iii)deliveryofcustomarycomfortletters;providedfurtherthatifrequestedbytheShelfRequestingHolder(s),theCompanyshallusereasonablebesteffortstofacilitatesuchaBlockSaleinorderthatitmaycommenceinatimeframelessthanthree(3)BusinessDaysfromreceiptofaShelfTakedownRequest.

(c)AutomaticShelfRegistrationStatements.SubjecttoSection2(g)hereof,totheextenttheCompanyisawell-knownseasonedissuer(asdefinedinRule405)(a“WKSI”)atatimewhenitisobligatedtofileormaintaintheeffectivenessofaShelfRegistrationStatementpursuanttothisAgreement,theCompanyshallfileanautomaticshelfregistrationstatement(asdefinedinRule405)onFormS-3(an“AutomaticShelfRegistrationStatement”)inaccordancewiththerequirementsoftheSecuritiesActandtherulesandregulationsoftheSECthereunder,thatcoverstheRegistrableSecurities.TheCompanyshalluseitsreasonablebesteffortstoremainaWKSI(andnottobecomeanineligibleissuer(asdefinedinRule405))duringtheperiodduringwhichanyAutomaticShelfRegistrationStatementiseffective.IfatanytimefollowingthefilingofanAutomaticShelfRegistrationStatementwhentheCompanyisrequiredtore-evaluateitsWKSIstatustheCompanydeterminesthatitisnotaWKSI,theCompanyshalluseitsreasonablebesteffortsto(i)post-effectivelyamendtheAutomaticShelfRegistrationStatementtoaShelfRegistrationStatementthatisnotautomaticallyeffectiveorfileanewShelfRegistrationStatementor,iftheCompanyisnoteligibleatsuchtimetofileaShelfRegistrationStatement,aRegistrationStatementonFormS-1;(ii)havesuchRegistrationStatementdeclaredeffectivebytheSEC;and(iii)keepsuchRegistrationStatementeffectiveduringtheperiodduringwhichsuchShelfRegistrationStatementorRegistrationStatementonFormS-1isrequiredtobekepteffectiveinaccordancewithSection2(e)hereof.

(d)DemandRights.Atanytimefollowingthe180 dayafterthedateofthefinalprospectusfortheIPO,andregardlessoftheeffectivenessoftheShelfRegistrationStatement,subjecttoSection2(g)hereof,theRequiredHoldersshallhavetherighttorequiretheCompanytofileanunlimitednumberofregistrationstatementsundertheSecuritiesActinrespectofalloraportionofRegistrableSecuritiesownedbytheRequiredHolders(solongassuchrequestcoversatleast$25millionworthofthemarketvalueofsharesofCommonStockatthetimeoftheDemandRequestorsuchlesseramountifallRegistrableSecuritiesavailableforsalebyallRequiredHolderspursuanttosuchregistrationstatementarerequestedtobeincluded),bydeliveringtotheCompanywrittennoticestatingthatsuchrightisbeingexercised,specifyingthenumberofRegistrableSecuritiesownedbytheRequiredHolderstobeincludedinsuchregistration,anddescribingtheintendedmethod

ofdistributionthereof(each,a“DemandRequest”andanyregistrationeffectedpursuantthereto,a“DemandRegistration”).Withinfive(5)BusinessDaysafterreceiptofanysuchrequestforaDemandRegistration,theCompanyshallgivewrittennoticeofsuchrequesttoallRequiredHoldersthatdidnotmaketheDemandRequest,ifany,andtheCompanyshall,subjecttotheprovisionsofSection2(f)hereof,includeinsuchregistrationthenumberofRegistrableSecuritiesofHolder(s)makingtheDemandRequestandanyRequiredHolder(s)thatshallhavemadeawrittenrequesttotheCompanyforinclusionoftheirRegistrableSecuritiesintheDemandRegistration(whichrequestshallspecifythemaximumnumberofRegistrableSecuritiesintendedtobesoldbysuchRequiredHolder)andwithrespecttowhichtheCompanyhasreceivedwrittenrequestsforinclusionthereinwithinfive(5)BusinessDaysafterthedatetheCompany’snoticewasdelivered.AssoonasreasonablypracticableafterreceiptbytheCompanyofaDemandRequest(andinanyeventwithintwenty(20)BusinessDaysafterthereceiptofaDemandRequest,unlessalongerperiodisagreedtobytheRequiredHoldersthatmadetheDemandRequest),theCompanyshall,subjecttotheotherprovisionsofthisAgreement(includingSection2(g)),filewiththeSEConeormoreregistrationstatementswithrespecttoallsuchRegistrableSecuritieswithrespecttowhichtheCompanyhasreceivedwrittenrequestsforinclusionthereininaccordancewiththisparagraphundertheSecuritiesAct(itbeingagreedthatsuchRegistrationStatementshallbeanAutomaticShelfRegistrationStatement,ifthenavailabletotheCompany).TheCompanyshallusereasonablebesteffortstocausesuchRegistrationStatementtobedeclaredeffectivebytheSECassoonasreasonablypracticableafterthefilingthereof.TheCompanyshallcomplywiththeapplicableprovisionsoftheSecuritiesActwithrespecttothedispositionofallRegistrableSecuritiescoveredbytheDemandRegistrationinaccordancewiththeintendedmethodsofdispositionbytheRequiredHoldersthatmadetheDemandRequest.

(e)ContinuedEffectiveness.SubjecttoSection2(g),theCompanyshallusereasonablebesteffortstokeeptheShelfRegistrationStatementandRegistrationStatementfiledpursuanttoanyDemandRequestcontinuouslyeffective(includingbyfilinganynecessaryAutomaticShelfRegistrationStatements,post-effectiveamendmentstosuchRegistrationStatementoroneormoresuccessorRegistrationStatements)untilthedateonwhichallRegistrableSecuritiescoveredbysuchRegistrationStatementhavebeensoldthereunderinaccordancewiththeplanandmethodofdistributiondisclosedintheprospectusincludedinsuchRegistrationStatement,orotherwiseceasetobeRegistrableSecurities.

(f)PriorityonShelfTakedownorDemandRequest.Notwithstandinganythingcontainedherein,theCompanyshallnotincludeinanyShelfRegistrationStatementorDemandRegistrationStatementanysecuritiesthatarenotRegistrableSecuritieswithoutthepriorwrittenconsentoftheHoldersofRegistrableSecuritiesincludedortobeincludedinanysuchRegistrationStatement.IfanyoftheRegistrableSecuritiesregisteredpursuanttoaShelfRegistrationStatementorDemandRequestaretobesoldinanUnderwrittenOffering,andthemanagingunderwriter(s)advisetheRequiredHoldersthatmadetheShelfTakedownRequestorDemandRequestthatinitsgoodfaithopinionthetotalnumberordollaramountofRegistrableSecuritiesproposedtobesoldinsuchunderwrittenofferingissuchastoadverselyaffectthesuccessofsuchoffering,thenthereshallbeincludedinsuchunderwrittenofferingthenumberordollaramountofRegistrableSecuritiesthatinthegoodfaithopinionofsuchmanagingunderwriter(s)canbesoldwithoutadverselyaffectingsuchoffering,and

suchnumberofRegistrableSecuritiesshallbeallocatedasfollows,unlesstheunderwritersrequireadifferentallocation:

(A)first,theRegistrableSecuritiesrequestedtobeincludedthereinbytheHoldersrequestingtheShelfTakedownand/orDemandRegistration,asapplicable,untilwithrespecttoeachsuchHolders,allRegistrableSecuritiesrequestedforregistrationbysuchHoldershavebeenincludedinsuchregistration;

(B)second,theRegistrableSecuritiesrequestedtobeincludedthereinbytheFinancialInvestorsnotincludedinclause(A)above,untilwith

respecttoeachsuchFinancialInvestor,allRegistrableSecuritiesrequestedforregistrationbysuchFinancialInvestorshavebeenincludedinsuchregistration;

(C)third,theRegistrableSecuritiesrequestedtobeincludedthereinbyMagnusnotincludedinclause(A)above,untilallRegistrable

SecuritiesrequestedforregistrationbyMagnushavebeenincludedinsuchregistration;and

(D)fourth,thesecuritiesforwhichinclusioninsuchRegistrationStatementwasrequestedbytheCompanyandagreedtobytheRequiredHoldersthatmadetheapplicableShelfTakedownRequestorDemandRequest.

(g)PostponementsinRequestedRegistrations.Ifthefiling,initialeffectivenessorcontinueduseofaRegistrationStatement,including

aShelfRegistrationStatement,filedhereunderwouldrequiretheCompanytomakeapublicdisclosureofMNPI,whichdisclosureinthegoodfaithjudgmentoftheBoard(afterconsultationwithexternallegalcounsel)(i)wouldmateriallyinterferewithasignificantacquisition,corporatereorganization,orothersimilartransactioninvolvingtheCompany,(ii)isreasonablylikelytorequiretheprematuredisclosureofmaterialinformationthattheCompanyhasabonafidebusinesspurposeforpreservingasconfidential,or(iii)rendertheCompanyunabletocomplywithrequirementsundertheSecuritiesActorExchangeAct,(eacha“SuspensionEvent”),thentheCompanymay,upongivingpromptwrittennoticeofsuchactiontotheHoldersparticipatinginsuchregistration,delaythefilingorinitialeffectivenessof,orsuspenduseof,suchRegistrationStatement(suchdelayorsuspension,a“Suspension”)fortheshortestpossibleperiodoftimedeterminedingoodfaithbytheBoardtobenecessaryforsuchpurposeprovidedthat(i)theCompanyshallnotbepermittedtoexercisesuchSuspensionmorethantwiceinanytwelve(12)-monthperiod,(ii)onanyoneoccasionaSuspensionshallbeforaperiodoftimenotinexcessofforty-five(45)consecutivedays,and(iii)theaggregateperiodforallSuspensionsduringanytwelve(12)-monthperiodshallnotexceedninety(90)days.IntheeventthattheCompanyexercisesitsrightsundertheprecedingsentence,suchHoldersagreetosuspend,promptlyuponreceiptofthenoticereferredtoabove,theuseofanyProspectusrelatingtosuchregistrationinconnectionwithanysaleoroffertosellRegistrableSecurities.TheCompanyshallpromptlygivetheHolderswrittennoticeofanySuspensionmadeinaccordancewiththeprecedingsentence.UpontheoccurrenceofanySuspension,theCompanyshalluseitsreasonablebesteffortstocausetheRegistrationStatementtobecomeeffectiveortoamendorsupplementtheRegistrationStatementonapost-effectivebasisortotakesuchactionasisnecessarytopermitresumeduseofthe

RegistrationStatementorfilingthereofassoonasreasonablypracticablefollowingtheconclusionoftheapplicableSuspensionEventanditseffect.TheCompanyshallpromptlygivetheHolderswrittennoticeoftheconclusionofanySuspensionEventanditseffect.NotwithstandingtheprovisionsofthisSection2(g),theCompanymaynotpostponethefilingoreffectivenessof,orsuspenduseof,aRegistrationStatementpastthedateuponwhichtheapplicableSuspensionEventisdisclosedtothepublicorceasestobematerial.DuringtheperiodofSuspension,theCompanyshallbeprohibitedfromfilingaregistrationstatementforitsownaccountorfortheaccountofanyHolderorholderofitssecurities.

(h)SelectionofUnderwriter(s).TheHoldersrequestingtheShelfTakedownand/orDemandRegistrationthatisanUnderwrittenOfferingshallhavetherighttoselectanationallyrecognizedinvestmentbanker(s)andmanager(s)toadministeranUnderwrittenOffering,provided,however,thatsuchHoldersshallusetheirreasonablebesteffortstoconsultwiththeCompanypriortotheselectionofsuchinvestmentbanker(s)andmanager(s).

3.PiggybackRegistration.

(a)RighttoPiggyback.IftheCompanyproposestofilearegistrationstatementundertheSecuritiesActwithrespecttoanyofferingofitsCommonStockforitsownaccountorfortheaccountofanyofitsrespectivesecurityholders(otherthan(i)aregistrationpursuanttothisAgreement,(ii)aregistrationstatementonFormS-4orS-8(oranysubstituteformthatmaybeadoptedbytheCommission),(iii)aregistrationstatementfiledinconnectionwithanexchangeofferorofferingofsecuritiessolelytotheCompany’sexistingsecurityholders,(iv)aregistrationincidentaltoanissuanceofdebtsecuritiesunderRule144Aor(v)aregistrationofsecuritiessolelyrelatingtoanofferingandsaletoemployeesordirectorsoftheCompanypursuanttoanyemployeestockplanorotheremployeebenefitplanarrangement,adividendreinvestmentplan,oramergerorconsolidation),thentheCompanyshallgivewrittennoticeofsuchproposedfilingtotheHoldersofRegistrableSecuritiesassoonasreasonablypracticable(butinnoeventlessthanten(10)BusinessDaysbeforetheanticipatedfilingdate),and,subjecttoSection5,suchnoticeshalloffersuchHolderstheopportunitytoregistersuchnumberofsharesofRegistrableSecuritiesaseachsuchHoldermayrequest(a“PiggybackRegistration”).SubjecttoSection3(c)or(d)and5,theCompanyshallincludeinsuchregistrationstatementallsuchRegistrableSecuritiesthatarerequestedtobeincludedthereinwithinten(10)BusinessDaysafterthedeliverytosuchHoldersofanysuchnotice;provided,thatifatanytimeaftergivingwrittennoticeofitsintentiontoregisteranysecuritiesandpriortotheeffectivedateoftheregistrationstatementfiledinconnectionwithsuchregistration,theCompanyshalldetermineforanyreasonnottoregisterortodelayregistrationofsuchsecurities,theCompanyshallgivewrittennoticeofsuchdeterminationtoeachHolderand,thereupon,(i)inthecaseofadeterminationnottoregister,shallberelievedofitsobligationtoregisteranyRegistrableSecuritiesinconnectionwithsuchregistration(butnotfromitsobligationtopaytheRegistrationExpensesinconnectiontherewith)and(ii)inthecaseofadeterminationtodelayregistering,intheabsenceofarequestforaShelfTakedownorDemandRegistration,shallbepermittedtodelayregisteringanyRegistrableSecurities,forthesameperiodasthedelayinregisteringsuchothersecurities.

(b)UnderwrittenRegistration.IftheregistrationreferredtoinSection3(a)isproposedtobeanUnderwrittenOffering,theCompany

willsoadvisetheHoldersasapartofthewrittennoticegivenpursuanttoSection3(a).IntheeventofanUnderwrittenOffering,therightofanyHoldertoregistrationpursuanttoSection2orthisSection3andtheinclusionofsuchHolder’sRegistrableSecuritiesintheunderwritingwillbeconditioneduponsuchHolder’sparticipationinsuchunderwritingonthetermsthereofandeachsuchHolderwill(togetherwiththeCompanyandanyotherholdersdistributingtheirsecuritiesthroughsuchunderwriting)enterintoanunderwritingagreementincustomaryformwiththeunderwriter(s)selectedforsuchunderwriting(includingpursuanttothetermsofanyover-allotmentor“greenshoe”optionrequestedbythemanagingunderwriter(s)),providedthat(A)noHoldershallberequiredtosellmorethanthenumberofRegistrableSecuritiesthatsuchHolderhasrequestedtheCompanytoincludeinanyregistration,(B)ifanyHolderdisapprovesofthetermsoftheunderwriting,suchHoldermayelecttowithdrawtherefrombywrittennoticetotheCompanyandthemanagingunderwriter(s)and(C)noHoldershallberequiredtomakeanyrepresentationsorwarrantiesotherthanthosecustomarilymadebysellingshareholdersinanunderwritingagreement.Notwithstandingtheforegoing,noHoldershallberequiredtoagreetoanyindemnificationobligationsonthepartofsuchHolderthataregreaterthanitsobligationspursuanttoSection5.

(c)PriorityonPrimaryRegistrations.IfaPiggybackRegistrationrelatestoaprimaryUnderwrittenOfferingonbehalfoftheCompany,andthemanagingunderwriter(s)advisetheCompanyinwritingthatintheiropinionthenumberofsecuritiesrequestedtobeincludedinsuchregistrationexceedsthenumberwhichcanbesoldwithoutadverselyaffectingthemarketabilityofsuchoffering,theCompanywillincludeinsuchregistrationorprospectusonlysuchnumberofsecuritiesthatintheopinionofsuchunderwriterscanbesoldwithoutadverselyaffectingthemarketabilityoftheoffering,whichsecuritieswillbesoincludedinthefollowingorderofpriority:(i)first,thesecuritiestheCompanyproposestosell,(ii)second,theRegistrableSecuritiesrequestedtobeincludedthereinbytheFinancialInvestors,untilwithrespecttoeachsuchFinancialInvestor,allRegistrableSecuritiesrequestedforregistrationbysuchFinancialInvestorshavebeenincludedinsuchregistration,(iii)third,theRegistrableSecuritiesrequestedtobeincludedthereinbyMagnus,untilallRegistrableSecuritiesrequestedforregistrationbyMagnushavebeenincludedinsuchregistration,and(iii)fourth,CommonStockrequestedbyanyotherpersonstobeincludedinthePiggybackRegistration,onaproratabasisrelativetothetotalnumberofRegistrableSecuritiesrequestedtobeincludedinthePiggybackRegistrationbysuchotherrequestingpersons,orinsuchothermannerassuchotherrequestingpersonsshallagree.

(d)PriorityonSecondaryRegistrations.IfaPiggybackRegistrationrelatestoasecondaryUnderwrittenOfferingonbehalfofotherholdersoftheCompany’ssecurities,andthemanagingunderwriter(s)advisetheCompanyinwritingthatintheiropinionthenumberofsecuritiesrequestedtobeincludedinsuchregistrationexceedsthenumberwhichcanbesoldwithoutadverselyaffectingthemarketabilityoftheoffering,theCompanywillincludeinsuchregistrationonlysuchnumberofsecuritiesthatintheopinionofsuchunderwriterscanbesoldwithoutadverselyaffectingthemarketabilityoftheoffering,whichsecuritieswillbesoincludedinthefollowingorderofpriority:(i)first,securities

requestedtobeincludedthereinbytheholder(s)makingdemandforsuchUnderwrittenOfferingtogetherwithanyRegistrableSecuritiesrequestedtobeincludedinsuchregistrationbytheFinancialInvestorsonaproratabasisrelativetothenumberoftotalsharesofCommonStockrequestedtobeincludedthereinbysuchotherholder(s)andthenumberofRegistrableSecuritiesrequestedtobeincludedthereinbytheFinancialInvestors,untilwithrespecttoeachsuchotherholder(s)andFinancialInvestors,allRegistrableSecuritiesrequestedforregistrationbysuchotherholder(s)andFinancialInvestorshavebeenincludedinsuchregistrationand(ii)second,theRegistrableSecuritiesrequestedtobeincludedthereinbyMagnus,untilallRegistrableSecuritiesrequestedforregistrationbyMagnushavebeenincludedinsuchregistration.

(e)SelectionofUnderwriter(s).IfaPiggybackRegistrationrelatestoaprimaryUnderwrittenOfferingonbehalfoftheCompany,theCompanyshallhavetherighttoselecttheinvestmentbanker(s)andmanager(s)toadministersuchUnderwrittenOfferingandifaPiggybackRegistrationrelatestoasecondaryUnderwrittenOfferingonbehalfofotherholdersoftheCompany’ssecurities,suchholdersofCompanysecuritiesshallhavetherighttoselecttheinvestmentbanker(s)andmanager(s)toadministersuchUnderwrittenOffering,subjecttotheCompany’sapprovalwhichshallnotbeunreasonablywithheld,conditionedordelayed.InthecaseofaprimaryUnderwrittenOfferingonbehalfoftheCompany,theprice,underwritingdiscountandotherfinancialtermsoftherelatedunderwritingagreementfortheUnderwrittenOfferingshallbedeterminedbytheCompanyandinthecaseofasecondaryUnderwrittenOfferingonbehalfofotherholdersoftheCompany’ssecurities,theprice,underwritingdiscountandotherfinancialtermsoftherelatedunderwritingagreementfortheUnderwrittenOfferingshallbedeterminedbysuchotherholdersoftheCompany’ssecurities.

4.HoldbackAgreements.

(a)HoldersofRegistrableSecurities.IfrequestedbytheCompanyorthemanagingunderwriter(s),eachHolderparticipatinginanUnderwrittenOfferingshallenterintocustomarylock-upagreementswiththemanagingunderwriter(s)ofsuchUnderwrittenOffering;providedthat(i)thelock-upperiodinsuchcustomarylock-upagreementshallnotexceedninety(90)daysfromthedateofthefinalprospectusrelatingtotheUnderwrittenOffering,and(ii)exceptwithrespecttothelock-upperiod,suchcustomarylock-upshallbesubstantiallyconsistentwiththelock-upagreementsenteredintobysuchHoldersinconnectionwiththeIPO.Inaddition,ifMagnusisparticipatinginanUnderwrittenOffering,MagnusagreestousecommerciallyreasonableeffortstocausethepledgeeunderanycreditagreementofMagnusunderwhichanysharesofCommonStockbeneficiallyownedbyMagnusarepledgedtoenterintoacustomarylock-upagreementwiththemanagingunderwriter(s)ofsuchUnderwrittenOfferingandsuchcustomarylock-upshallbesubstantiallyconsistentwiththelock-upagreemententeredintobysuchpledgeeinconnectionwiththeIPO(exceptwithrespecttothelock-upperiod).EachHoldernotparticipatinginanofferingpursuanttothisAgreementwhothenbeneficiallyowns(calculatedasprovidedinRule13d-3undertheExchangeAct)5%ormoreoftheCommonStockofthethenoutstandingsharesofCommonStock(a“Non-ParticipatingHolder”)agreestobeboundbythetermsofthecustomarylock-upagreementsubstantiallyconsistentwiththelock-up

agreementsenteredintobysuchHoldersinconnectionwiththeIPO(exceptwithrespecttothelock-upperiod)enteredintobytheparticipatingHoldersinconnectiontherewithasifsuchHolderhadbeenapartythereto;providedthat,(A)notwithstandingthetermsofthecustomarylock-upagreemententeredintobytheparticipatingHolders,(i)Non-ParticipatingHoldersshallnotbeprohibitedfromestablishinganycontract,instructionorplan(a“Plan”)thatsatisfiesalloftherequirementsofRule10b5-1(c)(1)undertheExchangeActduringthelock-upperiodsetforthinsuchagreements(providedthatnosalesmaybemadepursuanttosuchaPlanpriortotheexpirationofthelock-upperiodsetforthinsuchagreementsandnopublicannouncementoftheestablishmentorexistenceofaPlanorfilinginrespectthereofisrequiredormadevoluntarilypriortotheexpirationofthelock-upperiodsetforthinsuchagreements),(ii)Non-ParticipatingHoldersshallnotbeprohibitedfrommakingsalespursuanttoaPlanthatexistsonthedateofthecustomarylock-upagreemententeredintobytheparticipatingHolders,and(iii)theNon-ParticipatingHoldersshallnotbeboundbysuchlock-upagreementforaperiodinexcessofninety(90)daysfromthedateofthefinalprospectusrelatingtotheofferingthatisthesubjectofthelock-upagreement,and(B)aNon-ParticipatingHoldershallnotbeboundbythetermsofsuchlock-upagreementifsuchNon-ParticipatingHolderhassubmittedtotheCompanyanOpt-OutRequestpriortotheeffectivedateofsuchlock-upagreement;providedthatinthecaseofaprimaryUnderwrittenOfferingonbehalfoftheCompany,aNon-ParticipatingHolderthathassubmittedanOpt-OutRequestshallbeboundbythetermsofsuchlock-upagreementif(x)ithasbeengiventheopportunitytoincludeitsRegistrableSecuritiesinaPiggybackRegistrationnotwithstandingsuchOpt-OutRequestbyspecialnoticefromtheCompanydeliveredtotheNon-ParticipatingHoldernoearlierthanfive(5)BusinessDaysandnolaterthantwo(2)BusinessDaysbeforetheanticipatedfilingdateofthePiggybackRegistration,and(y)suchNon-ParticipatingHolder’sRegistrableSecuritiesarenotincludedinsuchPiggybackRegistrationduetoNon-ParticipatingHolder’sdecisionnottoincludeitsRegistrableSecuritiesinthePiggybackRegistrationorduetoanunderwritercut-backunderSection3(c).Inaddition,ifMagnusisaNon-ParticipatingHolderthatisrequiredtobeboundbythetermsofsuchlock-upagreementpursuanttothetermsofthisSection4(a),MagnusagreestousecommerciallyreasonableeffortstocausethepledgeeunderanycreditagreementofMagnusunderwhichanysharesofCommonStockbeneficiallyownedbyMagnusarepledgedtoagreetobeboundbythetermsofthecustomarylock-upagreementsubstantiallyconsistentwiththelock-upagreementsenteredintobysuchHoldersinconnectionwiththeIPO(exceptwithrespecttothelock-upperiod)enteredintobytheparticipatingHoldersinconnectiontherewithasifsuchpledgeehadbeenapartythereto.TheCompanymayimposestop-transferinstructionswithrespecttotheCommonStock(orothersecurities)subjecttotherestrictionssetforthinthisSection4(a)untiltheendofthelock-upperiodsetforthinsuchagreements.

(b)Exceptions.TheforegoingholdbackagreementsinSection4(a)shallnotapplyto(i)aregistrationstatementonFormS-4orS-8(oranysubstituteformthatmaybeadoptedbytheCommission),(ii)aregistrationstatementfiledinconnectionwithanexchangeofferorofferingofsecuritiessolelytotheCompany’sexistingsecurityholders,(iii)aregistrationincidentaltoanissuanceofdebtsecuritiesunderRule144Aor(iv)aregistrationofsecuritiessolelyrelatingtoanofferingandsaletoemployeesordirectorsoftheCompanypursuanttoanyemployeestockplanorotheremployeebenefitplanarrangement,adividendreinvestmentplan,oramergerorconsolidation.

5.RegistrationProcedures.InconnectionwiththeregistrationofanyRegistrableSecuritiesundertheSecuritiesActasprovidedinSection2or

Section3,theCompanyshalluseitsreasonablebesteffortstoeffectsuchregistrationtopermitthesaleofsuchRegistrableSecuritiesinaccordancewiththeintendedmethodormethodsofdispositionthereof,andpursuanttheretotheCompanyshallcooperateinthesaleofsuchRegistrableSecuritiesandshall,asexpeditiouslyaspossible:

(a)prepareandfile,ineachcaseaspromptlyaspracticable,withtheSECaRegistrationStatementorRegistrationStatementsonsuchformasshallbeavailableforthesaleoftheRegistrableSecuritiesbytheHoldersthereoforbytheCompanyinaccordancewiththeintendedmethodormethodsofdistributionthereof,makeallrequiredfilingswithFINRA,and,ifsuchRegistrationStatementisnotautomaticallyeffectiveuponfiling,useitsreasonablebesteffortstocausesuchRegistrationStatementtobedeclaredeffectiveassoonasreasonablypracticableandtoremaineffectiveasprovidedherein;provided,however,thatbeforefilingaRegistrationStatementorProspectusoranyamendmentsorsupplementsthereto(includingfreewritingprospectusesunderRule433(eacha“FreeWritingProspectus”)),theCompanyshallfurnishorotherwisemakeavailabletotheHoldersortheirrepresentatives,counseldesignatedonbehalfoftheRequiredHolderswhoseRegistrableSecuritiesareincludedortobeincludedinsuchRegistrationStatement,andthemanagingunderwriter(s),ifany,copiesofallsuchdocumentsproposedtobefiled(includingexhibitsthereto),whichdocumentswillbesubjecttothereasonablereviewandcommentofsuchcounsel,andsuchotherdocumentsreasonablyrequestedbysuchcounsel,includinganycommentletterfromtheSEC,and,ifrequestedbytheRequiredHolderswhoseRegistrableSecuritiesareincludedortobeincludedinsuchRegistrationStatementorsuchcounsel,providesuchRequiredHoldersorsuchcounselreasonableopportunitytoparticipateinthepreparationofsuchRegistrationStatementandeachProspectusincludedthereinandsuchotheropportunitiestoconductareasonableinvestigationwithinthemeaningoftheSecuritiesAct,includingreasonableaccesstotheCompany’sbooksandrecords,officers,accountantsandotheradvisors.TheCompanyshallnotfileanysuchRegistrationStatementorProspectus,oranyamendmentsorsupplementsthereto(includingFreeWritingProspectuses)withrespecttoaShelfTakedownorDemandRegistrationtowhichRequiredHolderswhoseRegistrableSecuritiesareincludedortobeincludedinsuchRegistrationStatementorthemanagingunderwriter(s),ifany,shallreasonablyobject,inwriting,onatimelybasis,unless,intheopinionoftheCompany,suchfilingisnecessarytocomplywithapplicablelaw;

(b)subjecttoSection2(g)hereof,prepareandfilewiththeSECsuchamendmentsandsupplementstosuchRegistrationStatementandtheProspectususedinconnectiontherewithandsuchFreeWritingProspectusesandExchangeActreportsasmaybenecessarytokeepsuchRegistrationStatementcontinuouslyeffectiveduringtheperiodprovidedhereinandcomplyinallmaterialrespectswiththeprovisionsoftheSecuritiesActwithrespecttothedispositionofallsecuritiescoveredbysuchRegistrationStatement;andcausetherelatedProspectustobesupplementedbyanyProspectussupplementasmaybenecessarytocomplywiththeprovisionsoftheSecuritiesActwithrespecttothedispositionofthesecuritiescoveredbysuchRegistrationStatement,andassosupplementedtobefiledpursuanttoRule424(oranysimilarprovisionstheninforce)undertheSecuritiesActineach

case,untilsuchtimeasallofsuchsecuritieshavebeendisposedofinaccordancewiththeintendedmethodormethodsofdispositionbythesellerorsellersthereofsetforthinsuchRegistrationStatement;

(c)notifyeachsellingHolderofRegistrableSecurities,itscounselandthemanagingunderwriter(s)ofanyUnderwrittenOffering(i)whenaRegistrationStatement,pre-effectiveamendmenttoanyRegistrationStatement,ProspectusoranyProspectussupplementorpost-effectiveamendmentoranyFreeWritingProspectushasbeenfiled,and,withrespecttoaRegistrationStatementoranypost-effectiveamendment,whenthesamehasbecomeeffective,(ii)ofanyrequestbytheSECoranyotherfederalorstategovernmentalauthorityforamendmentsorsupplementstoaRegistrationStatementorrelatedProspectusorforadditionalinformation,(iii)oftheissuancebytheSECofanystopordersuspendingtheeffectivenessofsuchRegistrationStatementortheinitiationorthreateningofanyproceedingsforthatpurpose,(iv)ifatanytimetheCompanyhasreasontobelievethattherepresentationsandwarrantiesoftheCompanycontainedinanyagreement(includinganyunderwritingagreement)contemplatedbySection5(l)belowceasetobetrueandcorrectinallmaterialrespects,(v)ofthereceiptbytheCompanyofanynotificationwithrespecttothesuspensionofthequalificationorexemptionfromqualificationofsuchRegistrableSecuritiesforsaleinanyjurisdiction,ortheinitiationofanyproceedingforsuchpurpose,and(vi)ofthehappeningofanyeventthatmakesanystatementmadeinsuchRegistrationStatementorrelatedProspectus,FreeWritingProspectus,amendmentorsupplementthereto,oranydocumentincorporatedordeemedtobeincorporatedthereinbyreference,asthenineffect,untrueinanymaterialrespectorthatrequiresthemakingofanychangesinsuchRegistrationStatement,Prospectusordocumentssothat,inthecaseoftheRegistrationStatement,itwillnotcontainanyuntruestatementofamaterialfactoromittostateanymaterialfactrequiredtobestatedthereinornecessarytomakethestatementstherein,notmisleading,andthatinthecaseoftheProspectus,itwillnotcontainanyuntruestatementofamaterialfactoromittostateanymaterialfactnecessaryinordertomakethestatementstherein,inthelightofthecircumstancesunderwhichtheyweremade,notmisleading(whichnoticeshallnotifythesellingHolderonlyoftheoccurrenceofsuchaneventandshallprovidenoadditionalinformationregardingsucheventtotheextentsuchinformationwouldconstituteMNPI);

(d)useitsreasonablebesteffortstoobtainthewithdrawalofanyordersuspendingtheeffectivenessofaRegistrationStatement,ortheliftingofanysuspensionofthequalification(orexemptionfromqualification)ofanyoftheRegistrableSecuritiesforsaleinanyjurisdictionattheearliestdatereasonablypractical;

(e)ifrequestedbytheRequiredHolderswhoseRegistrableSecuritiesareincludedortobeincludedinaRegistrationStatement,or,inthecaseofanUnderwrittenOffering,themanagingunderwriter(s)ofsuchUnderwrittenOffering,promptlyincludeinaProspectussupplementorpost-effectiveamendmentsuchinformationassuchRequiredHoldersorsuchmanagingunderwriter(s),asthecasemaybe,mayreasonablyrequestinordertofacilitatethedispositionoftheRegistrableSecuritiesinaccordancewiththeintendedmethodormethodsofdistributionofsuchsecuritiessetforthintheRegistrationStatementandmakeallrequiredfilingsofsuchProspectussupplementorsuchpost-effectiveamendmentassoonasreasonablypracticableaftertheCompanyhasreceivedsuch

request;provided,however,thattheCompanyshallnotberequiredtotakeanyactionsunderthisSection5(e)thatarenot,intheopinionofcounselfortheCompany,incompliancewithapplicablelaw;

(f)delivertoeachsellingHolderofRegistrableSecurities,itscounsel,andtheunderwriters,ifany,withoutcharge,asmanycopiesoftheProspectusorProspectuses(includingeachformofProspectus)andeachamendmentorsupplementthereto(includinganyFreeWritingProspectus)assuchPersonsmayreasonablyrequestfromtimetotimeinordertofacilitatethedispositionoftheRegistrableSecuritiesinaccordancewiththeintendedmethodormethodsofdispositionthereof;andtheCompany,subjecttothelastparagraphofthisSection5,herebyconsentstotheuseofsuchProspectusandeachamendmentorsupplementtheretobyeachofthesellingHoldersofRegistrableSecuritiesandtheunderwriters,ifany,inconnectionwiththeofferingandsaleoftheRegistrableSecuritiescoveredbysuchProspectusandanysuchamendmentorsupplementthereto;

(g)useitsreasonablebesteffortstoregisterorqualifyorcooperatewiththesellingHoldersofRegistrableSecurities,theunderwriters,ifany,andtheirrespectivecounselinconnectionwiththeregistrationorqualification(orexemptionfromsuchregistrationorqualification)ofsuchRegistrableSecuritiesforofferandsaleunderthesecuritiesorblueskylawsofsuchjurisdictionswithintheUnitedStatesasanysellerorunderwriterreasonablyrequestsinwritingandtokeepeachsuchregistrationorqualification(orexemptiontherefrom)effectiveduringtheperiodsuchRegistrationStatementisrequiredtobekepteffectiveandtotakeanyotheractionthatmaybenecessaryoradvisabletoenablesuchHoldersofRegistrableSecuritiestoconsummatethedispositionofsuchRegistrableSecuritiesinsuchjurisdictioninaccordancewiththeintendedmethodormethodsofdispositionthereof;provided,however,thattheCompanywillnotberequiredto(i)qualifygenerallytodobusinessinanyjurisdictionwhereitwouldnototherwiseberequiredtoqualifybutforthisSection5(g),(ii)subjectitselftotaxationinanyjurisdictionwhereinitisnotsosubjector(iii)takeanyactionthatwouldsubjectittogeneralserviceofprocessinanysuchjurisdictionwhereitisnotthensosubject;

(h)cooperatewiththesellingHoldersofRegistrableSecuritiesandthemanagingunderwriter(s),ifany,tofacilitatethetimelypreparationanddeliveryofcertificates(notbearinganylegends)representingRegistrableSecuritiestobesoldafterreceivingwrittenrepresentationsfromeachHolderofsuchRegistrableSecuritiesthattheRegistrableSecuritiesrepresentedbythecertificatessodeliveredbysuchHolderwillbetransferredinaccordancewiththeRegistrationStatement,andenablesuchRegistrableSecuritiestobeinsuchdenominationsandregisteredinsuchnamesasthemanagingunderwriter(s),ifany,orHoldersmayrequestatleastfive(5)BusinessDayspriortoanysaleofRegistrableSecuritiesinafirmcommitmentpublicoffering,butinanyothersuchsale,withinten(10)BusinessDayspriortohavingtoissuethesecurities;

(i)upontheoccurrenceofanyeventcontemplatedbySection5(c)(vi)above,prepareasupplementorpost-effectiveamendmenttotheRegistrationStatementorasupplementtotherelatedProspectusoranydocumentincorporatedordeemedtobeincorporatedthereinbyreference,orfileanyotherrequireddocumentsothat,asthereafter

deliveredtothepurchasersoftheRegistrableSecuritiesbeingsoldthereunder,suchProspectuswillnotcontainanuntruestatementofamaterialfactoromittostateamaterialfactrequiredtobestatedthereinornecessarytomakethestatementstherein,inthelightofthecircumstancesunderwhichtheyweremade,notmisleading;

(j)provideandcausetobemaintainedatransferagentandregistrarforallsuchRegistrableSecuritiesfromandaftertheeffectivedateofsuchRegistrationStatement;

(k)useitsreasonablebesteffortstocauseallsharesofRegistrableSecuritiescoveredbyanyRegistrationStatementtobelistedoneachprimarynationalsecuritiesexchange(ifany)onwhichsharesoftheparticularclassofRegistrableSecuritiesareatthattimelisted;

(l)inthecaseofanyUnderwrittenOfferinginwhichanyHolderparticipates,enterintoanunderwritingagreementcontainingsuchprovisions(includingprovisionsforindemnification,lockups,opinionsofcounselandcomfortletters),andtakeallsuchothercustomaryandreasonableactionsasthemanagingunderwritersofsuchofferingmayrequestinordertofacilitatethedispositionofsuchRegistrableSecurities,includingaddinginformationrequestedbythemanagingunderwriterstotheProspectus,andmakingsuchrepresentationsandwarrantiestotheholdersofsuchRegistrableSecuritiesandtheunderwriters,ifany,withrespecttothebusinessoftheCompanyanditssubsidiaries,andtheRegistrationStatement,Prospectusanddocuments,ifany,incorporatedordeemedtobeincorporatedbyreferencetherein,ineachcase,inform,substanceandscopeasarecustomarilymadebyissuerstounderwritersinunderwrittenofferings,and,iftrue,confirmthesameifandwhenrequested;

(m)inthecaseofanyUnderwrittenOfferinginwhichanyHolderparticipates,(A)makereasonablyavailable,forinspectionbythemanagingunderwritersofsuchUnderwrittenOfferingandonelawfirmactingforsuchmanagingunderwriters,pertinentcorporatedocumentsandfinancialandotherrecordsoftheCompanyanditssubsidiariesandcontrolledAffiliates,(B)causetheCompany’sofficersandemployeestosupplyinformationreasonablyrequestedbysuchmanagingunderwritersorsuchlawfirminconnectionwithsuchoffering,(C)maketheCompany’sindependentauditoravailableforanysuchmanagingunderwriters’duediligenceandusereasonablebesteffortstohavethemprovidecustomarycomfortletterstosuchunderwritersinconnectiontherewithandtoeachHoldersellingRegistrableSecuritiesinsuchoffering(unlesssuchaccountantsshallbeprohibitedfromsoaddressingsuchlettersbyapplicablestandardsoftheaccountingprofession)and(D)causetheCompany’soutsidecounseltofurnishcustomarylegalopinionsandupdatesthereof(whichlegalopinions(inform,scopeandsubstance)shallbereasonablysatisfactorytothemanagingunderwriter(s))tosuchunderwriters,coveringthematterscustomarilycoveredinopinionsrequestedinunderwrittenofferingsandsuchothermattersasmaybereasonablyrequestedbysuchunderwriters;provided,however,thatanysuchrecordsandotherinformationprovidedunderclauses(A)and(B)abovethatisnotgenerallypubliclyavailableshallbesubjecttosuchconfidentialtreatmentasiscustomaryforunderwriters’duediligencereviews;

(n)causeitsmanagementtousetheirreasonablebesteffortstosupportthemarketingoftheRegistrableSecuritiescoveredbytheRegistration

Statement(includingparticipationinsuchnumberof“roadshows”astheRequiredHolderswhoseRegistrableSecuritiesareincludedortobeincludedinsuchRegistrationStatementorunderwriter(s)reasonablyrequest,andinanymanagementdiligencemeetingsorteleconferencesassuchRequiredHoldersorunderwriter(s)ortheircounselreasonablyrequest);

(o)cooperatewitheachsellerofRegistrableSecuritiesandeachunderwriteroragentparticipatinginthedispositionofsuchRegistrableSecuritiesandtheirrespectivecounselinconnectionwithanyfilingsrequiredtobemadewiththeFINRA;and

(p)otherwiseuseitsreasonablebesteffortstocomplywithallapplicablerulesandregulationsoftheSEC,andmakeavailabletoitssecurityholders,assoonasreasonablypracticable,anearningsstatementcoveringtheperiodofatleasttwelvemonthsbeginningwiththefirstdayoftheCompany’sfirstfullcalendarquarteraftertheeffectivedateofanyRegistrationStatement,whichearningsstatementwillsatisfytheprovisionsofSection11(a)oftheSecuritiesActandRule158thereunder.

NotwithstandinganythingcontainedinthisAgreement,theCompanyshallnotprepareaShelfTakedown,DemandRegistrationorPiggybackRegistrationwithrespecttoorincludeinanyShelfTakedown,DemandRegistrationorPiggybackRegistration,theRegistrableSecuritiesofanyHolderotherthantheFinancialInvestorsunlessanduntiltheFinancialInvestorsshallhave,aftertheEffectiveDate,Transferredtothirdparties(otherthaninanExcludedTransfer)atleastRegistrableSecurities(fortheavoidanceofdoubt,asadjustedforanystocksplitsorstockdividendswithrespecttosuchsharesofCommonStock)intheaggregate,inoneormoretransactions.

TheCompanymayrequireeachHolderofRegistrableSecuritiesastowhichanyregistrationisbeingeffectedtofurnishtotheCompanyinwritingsuchinformationrequiredinconnectionwithsuchregistrationregardingsuchsellerandthedistributionofsuchRegistrableSecuritiesastheCompanymay,fromtimetotime,reasonablyrequestandtheCompanymayexcludefromsuchregistrationtheRegistrableSecuritiesofanyHolderwhounreasonablyfailstofurnishsuchinformationwithinareasonabletimeafterreceivingsuchrequest.

TheCompanyagreesnottofileormakeanyamendmenttoanyRegistrationStatementwithrespecttoanyRegistrableSecurities,oranyamendmentoforsupplementtotheProspectusoranyFreeWritingProspectususedinconnectiontherewith,thatreferstoanyHoldercoveredtherebybyname,orotherwiseidentifiessuchHolderastheholderofanysecuritiesoftheCompany,withoutfirstfurnishingorotherwisemakingavailabletosuchHolderacopyofanysuchamendmentorsupplementnolessthanfive(5)BusinessDayspriortothefilingofsuchamendmentorsupplement(unlessandtotheextentsuchamendmentorsupplementisrequiredbylawtobefiledearlier)andincludingallcommentsreasonablyandtimelyrequestedbysuchHolderthereon;providedthatinthecaseofaBlockSalethatisanUnderwrittenOfferingpursuanttoaShelfRegistrationStatement(eitherthroughfilingan

AutomaticShelfRegistrationStatementorthroughatake-downfromanalreadyexistingShelfRegistrationStatement),suchminimumfive(5)BusinessDayperiodshallbereducedtoaminimumoftwo(2)BusinessDays.

IftheCompanyfilesanyShelfRegistrationStatementforthebenefitoftheholdersofanyofitssecuritiesotherthantheHolders,theCompanyagreesthatitshalluseitsreasonablebesteffortstoincludeinsuchregistrationstatementsuchdisclosuresasmayberequiredbyRule430BundertheSecuritiesAct(referringtotheunnamedsellingsecurityholdersinagenericmannerbyidentifyingtheinitialofferingofthesecuritiestotheHolders)inordertoensurethattheHoldersmaybeaddedtosuchShelfRegistrationStatementatalatertimethroughthefilingofaprospectussupplementratherthanapost-effectiveamendment.

TheCompanyshallnotidentifyanyHolderasan“underwriter”inanypublicdisclosureorfilingwiththeSECwithoutthepriorwrittenconsentofsuchHolder(itbeingunderstood,thatiftheCompanyisrequiredtonametheHolderasan“underwriter”insuchRegistrationStatementbytheSEC(afteragoodfaithdiscussionwiththeSECtoliftsuchrequirement,including,withoutlimitation,anyreductioninthenumberofRegistrableSecuritiesoftheHoldertoberegisteredonsuchRegistrationStatement(totheextentnecessarytoliftsuchrequirement)),theHoldershallhavetheoptionofelectingtoexcludeallsuchRegistrableSecuritiesfromsuchRegistrationStatementortobenamedasan“underwriter”insuchRegistrationStatement).

6.Indemnification.

(a)IndemnificationbytheCompany.TheCompanyshallindemnifyandholdharmless,tothefullestextentpermittedbylaw,eachHolderofRegistrableSecuritieswhoseRegistrableSecuritiesarecoveredbyaRegistrationStatementorProspectus,theofficers,directors,partners,members,managers,shareholders,accountants,attorneys,agentsandemployeesofeachofthem,eachPersonwhocontrols(withinthemeaningofSection15oftheSecuritiesActorSection20oftheExchangeAct)eachsuchHolderandtheofficers,directors,partners,members,managers,shareholders,accountants,attorneys,agentsandemployeesofeachsuchcontrollingperson,eachunderwriter,ifany,andeachPersonwhocontrols(withinthemeaningofSection15oftheSecuritiesActorSection20oftheExchangeAct)suchunderwriter(eachsuchpersonbeingreferredtohereinasa“CoveredPerson”),fromandagainstanyandalllosses,claims,damages,liabilities,costs(includingcostsofpreparationandreasonableattorneys’feesandanylegalorotherfeesorexpensesincurredbysuchpartyinconnectionwithanyinvestigationorproceeding),expenses,judgments,fines,penalties,chargesandamountspaidinsettlement(collectively,“Losses”),asincurred,arisingoutoforbaseduponanyuntrueorallegeduntruestatementofamaterialfactcontainedinanyProspectus,RegistrationStatementorFreeWritingProspectusoranyamendmentthereoforsupplementtheretooranydocumentincorporatedbyreferencethereinorbasedonanyomissionorallegedomissiontostatethereinamaterialfactrequiredtobestatedthereinornecessarytomakethestatementsthereinnotmisleading,oranyviolationbytheCompanyoftheSecuritiesAct,theExchangeAct,anystatesecuritieslaw,oranyruleorregulationthereunderapplicabletotheCompanyandrelatingtoanyactionorinactioninconnectionwiththerelatedofferingofRegistrableSecurities,andwillreimburseeachsuch

CoveredPersonforanylegalandanyotherexpensesreasonablyincurredinconnectionwithinvestigatinganddefendingorsettlinganysuchLoss,providedthattheCompanywillnotbeliableinanysuchcasetotheextentthatanysuchLossarisesoutoforisbasedonanyuntruestatementoromissionbysuchCoveredPersonrelatingtosuchCoveredPersonoritsAffiliates(otherthantheCompanyoranyofitssubsidiaries),butonlytotheextent,thatsuchuntruestatement(orallegeduntruestatement)oromission(orallegedomission)ismadeinsuchRegistrationStatement,Prospectus,FreeWritingProspectusoranyamendmentthereoforsupplementthereto,oranydocumentincorporatedbyreferencetherein,ineachcaseinrelianceuponandinconformitywithwritteninformationfurnishedtotheCompanybysuchCoveredPersonwithrespecttosuchCoveredPersonforusetherein.ItisagreedthattheindemnityagreementcontainedinthisSection6(a)shallnotapplytoamountspaidinsettlementofanysuchLoss(oractionsinrespectthereof)ifsuchsettlementiseffectedwithouttheconsentoftheCompany(whichconsentshallnotbeunreasonablywithheld).

(b)IndemnificationbyHolderofRegistrableSecurities.EachHolderwhoseRegistrableSharesarecoveredbyaRegistrationStatementshallindemnifyandholdharmless,tothefullestextentpermittedbylaw,severallyandnotjointlywithanyotherHolder,theCompany,itsdirectorsandofficersandeachPersonwhocontrols(withinthemeaningofSection15oftheSecuritiesActandSection20oftheExchangeAct)theCompanyandallotherprospectivesellers,fromandagainstallLossesarisingoutoforbasedonanyuntrueorallegeduntruestatementofamaterialfactcontainedinanysuchRegistrationStatement,ProspectusorFreeWritingProspectusoranyamendmentthereoforsupplementthereto,oranydocumentincorporatedbyreferencetherein,oranyomissionorallegedomissiontostatethereinamaterialfactrequiredtobestatedthereinornecessarytomakethestatementsthereinnotmisleading,andwillreimbursetheCompany,suchdirectors,controllingpersonsandprospectivesellersforanylegaloranyotherexpensesreasonablyincurredinconnectionwithinvestigatingordefendinganysuchLoss,ineachcasetotheextent,butonlytotheextent,thatsuchuntruestatementoromissionismadeinsuchRegistrationStatement,ProspectusorFreeWritingProspectusoranyamendmentthereoforsupplementthereto,oranydocumentincorporatedbyreferencetherein,ineachcaseinrelianceuponandinconformitywithwritteninformationfurnishedtotheCompanybysuchHolderwithrespecttosuchHolderforinclusioninsuchRegistrationStatement,ProspectusorFreeWritingProspectusoranyamendmentthereoforsupplementthereto,oranydocumentincorporatedbyreferencetherein;provided,however,thattheobligationsofsuchHolderhereundershallnotapplytoamountspaidinsettlementofanysuchLosses(oractionsinrespectthereof)ifsuchsettlementiseffectedwithouttheconsentofsuchHolder(whichconsentshallnotbeunreasonablywithheld);andprovided,further,thattheliabilityofsuchHoldershallbelimitedtothenetproceedsreceivedbysuchsellingHolderfromthesaleofRegistrableSecuritiescoveredbysuchRegistrationStatement.

(c)ConductofIndemnificationProceedings.IfanyPersonshallbeentitledtoindemnityhereunder(an“IndemnifiedParty”),suchIndemnifiedPartyshallgivepromptnoticetothepartyfromwhichsuchindemnityissought(the“IndemnifyingParty”)ofanyclaimorofthecommencementofanyproceedingwithrespecttowhichsuchIndemnifiedPartyseeksindemnificationorcontributionpursuanthereto;provided,however,thatthedelayorfailuretosonotifytheIndemnifyingPartyshallnotrelievetheIndemnifyingPartyfrom

anyobligationorliabilityexcepttotheextentthattheIndemnifyingPartyhasbeenmateriallyprejudicedbysuchdelayorfailure.TheIndemnifyingPartyshallhavetheright,exercisablebygivingwrittennoticetoanIndemnifiedPartypromptlyafterthereceiptofwrittennoticefromsuchIndemnifiedPartyofsuchclaimorproceeding,to,unlessintheIndemnifiedParty’sreasonablejudgmentaconflictofinterestbetweensuchindemnifiedandindemnifyingpartiesmayexistinrespectofsuchclaim,assume,attheIndemnifyingParty’sexpense,thedefenseofanysuchclaimorproceeding,withcounselreasonablysatisfactorytosuchIndemnifiedParty;provided,however,thatanIndemnifiedPartyshallhavetherighttoemployseparatecounselinanysuchclaimorproceedingandtoparticipateinthedefensethereof,butthefeesandexpensesofsuchcounselshallbeattheexpenseofsuchIndemnifiedPartyunless:(i)theIndemnifyingPartyagreestopaysuchfeesandexpenses;or(ii)theIndemnifyingPartyfailspromptlytoassume,orintheeventofaconflictofinterestcannotassume,thedefenseofsuchclaimorproceedingorfailstoemploycounselreasonablysatisfactorytosuchIndemnifiedParty;inwhichcasetheIndemnifiedPartyshallhavetherighttoemploycounselandtoassumethedefenseofsuchclaimorproceedingattheIndemnifyingParty’sexpense;provided,further,however,thattheIndemnifyingPartyshallnot,inconnectionwithanyonesuchclaimorproceedingorseparatebutsubstantiallysimilarorrelatedclaimsorproceedingsinthesamejurisdiction,arisingoutofthesamegeneralallegationsorcircumstances,beliableforthefeesandexpensesofmorethanonefirmofattorneys(togetherwithappropriatelocalcounsel)atanytimeforalloftheIndemnifiedParties,orforfeesandexpensesthatarenotreasonable.WhetherornotsuchdefenseisassumedbytheIndemnifyingParty,suchIndemnifyingPartywillnotbesubjecttoanyliabilityforanysettlementmadewithoutitsconsent(butsuchconsentwillnotbeunreasonablywithheld).TheIndemnifyingPartyshallnotconsenttoentryofanyjudgmentorenterintoanysettlementthat(x)doesnotincludeasanunconditionaltermthereofthegivingbytheclaimantorplaintifftosuchIndemnifiedPartyofarelease,informandsubstancereasonablysatisfactorytotheIndemnifiedParty,fromallliabilityinrespectofsuchclaimorlitigationforwhichsuchIndemnifiedPartywouldbeentitledtoindemnificationhereunderor(y)involvestheimpositionofequitableremediesortheimpositionofanyobligationsontheIndemnifiedPartyoradverselyaffectssuchIndemnifiedPartyotherthanasaresultoffinancialobligationsforwhichsuchIndemnifiedPartywouldbeentitledtoindemnificationhereunder.

(d)Contribution.IftheindemnificationprovidedforinthisSection6isunavailabletoanIndemnifiedPartyinrespectofanyLosses(otherthaninaccordancewithitsterms),theneachapplicableIndemnifyingParty,inlieuofindemnifyingsuchIndemnifiedParty,shallcontributetotheamountpaidorpayablebysuchIndemnifiedPartyasaresultofsuchLosses,insuchproportionasisappropriatetoreflecttherelativefaultoftheIndemnifyingParty,ontheonehand,andsuchIndemnifiedParty,ontheotherhand,inconnectionwiththeactions,statementsoromissionsthatresultedinsuchLossesaswellasanyotherrelevantequitableconsiderations.TherelativefaultofsuchIndemnifyingParty,ontheonehand,andIndemnifiedParty,ontheotherhand,shallbedeterminedbyreferenceto,amongotherthings,whetheranyactioninquestion,includinganyuntrueorallegeduntruestatementofamaterialfactoromissionorallegedomissiontostateamaterialfact,hasbeenmade(oromitted)by,orrelatestoinformationsuppliedby,suchIndemnifyingPartyor

IndemnifiedParty,andtheparties’relativeintent,knowledge,accesstoinformationandopportunitytocorrectorpreventanysuchaction,statementoromission.

ThepartiesheretoagreethatitwouldnotbejustandequitableifcontributionpursuanttothisSection6(d)weredeterminedbyprorataallocationorbyanyothermethodofallocationthatdoesnottakeaccountoftheequitableconsiderationsreferredtointheimmediatelyprecedingparagraph.NotwithstandingtheprovisionsofthisSection6(d),anIndemnifyingPartythatisasellingHolderholdingRegistrableSecuritiesshallnotberequiredtocontributeanyamountinexcessoftheamountthatsuchIndemnifyingPartyhasotherwisebeen,orwouldotherwisebe,requiredtopaypursuanttoSection6(b)byreasonofsuchuntrueorallegeduntruestatementoromissionorallegedomission.Nopersonguiltyoffraudulentmisrepresentation(withinthemeaningofSection11(f)oftheSecuritiesAct)shallbeentitledtocontributionfromanyPersonwhowasnotguiltyofsuchfraudulentmisrepresentation.

(e)Non-Exclusivity.TheobligationsofthepartiesunderthisSection6shallbeinadditiontoanyliabilitywhichanypartymayotherwisehavetoanyotherparty.

7.RegistrationExpenses.Inconnectionwithanyregistrationstatementrequiredtobefiledhereunder,theCompanyshallpaythefollowingregistrationexpensesincurredinconnectionwiththeregistrationhereunder(the“RegistrationExpenses”),regardlessofwhethersuchregistrationstatementisdeclaredeffectivebytheSEC:(a)allregistrationandfilingfees,andanyotherfeesandexpensesassociatedwithfilingsrequiredtobemadewiththeSEC,anysecuritiesexchangeorFINRA,(b)feesandexpensesofcompliancewithsecuritiesorblueskylaws(includingreasonablefeesanddisbursementsofcounselinconnectionwithblueskyqualificationsoftheRegistrableSecurities),(c)allprinting,duplicating,wordprocessing,messenger,telephone,facsimileanddeliveryexpenses(includingexpensesofprintingcertificatesfortheRegistrableSecuritiesinaformeligiblefordepositwithTheDepositoryTrustCompanyandofprintingprospectuses),(d)internalexpenses(including,withoutlimitation,allsalariesandexpensesofitsofficersandemployeesperforminglegaloraccountingduties),(e)thefeesandexpensesincurredinconnectionwiththelistingoftheRegistrableSecurities,(f)reasonablefeesanddisbursementsofcounselfortheCompanyandcustomaryfeesandexpensesforindependentcertifiedpublicaccountantsretainedbytheCompany(includingtheexpensesofanycomfortlettersorcostsassociatedwiththedeliverybyindependentcertifiedpublicaccountantsofacomfortletterorcomfortlettersrequestedpursuanttoSection4(m)),(g)reasonablefeesanddisbursementsofone(1)legalcounselplusanyregulatorycounsel,asappropriate,forallHoldersparticipatinginsuchregistration,and(h)anyreasonablefeesanddisbursementsoftheunderwriters,ifany,customarilypaidbyissuersorsellersofsecurities.TheCompanyshallhavenoobligationtopayanyunderwritingfees,discountsorcommissionsattributabletothesaleofRegistrableSecurities(whichexpensesshallbebornebyeachHolderonaproratabasiswithrespecttotheRegistrableSecuritiessosold)oranytransfertaxesrelatingtotheregistrationorsaleoftheRegistrableSecurities(whichexpensesshallbebornebyeachHolderindividuallytowhomsuchtaxesapply).

8.OtherAgreements

(a)TransferofRights

(i)AHoldermaytransferorassign,inwholeorfromtimetotimeinpart,tooneormorePersons,itsrightsandobligationsunderthis

AgreementandsuchrightswillbetransferredtosuchtransfereeeffectiveuponreceiptbytheCompanyof(A)writtennoticefromsuchHolderstatingthenameandaddressofthetransfereeandidentifyingthenumberofRegistrableSecuritieswithrespecttowhichrightsunderthisAgreementarebeingtransferredandthenatureoftherightssotransferred(provided,that,withrespecttoMagnus,ifanyofitsRegistrableSecuritiesaretransferreduponforeclosureunderanycreditfacilityofMagnusunderwhichsuchRegistrableSecuritiesarepledged,suchnoticemaybeprovidedbythepledgeeortransfereeofanyofsuchRegistrableSecurities),and(B)exceptinthecaseofatransfertoanexistingHolder,awrittenagreementfromsuchtransfereetobeboundbythetermsofthisAgreement.AtransfereeofRegistrableSecuritieswhosatisfiestheconditionssetforthinthisSection8(a)shallhenceforthbea“Holder”forpurposesofthisAgreementandinthecaseofatransferfromaFinancialInvestor,atransfereeshallbeconsidereda“FinancialInvestor”anda“MajorFinancialInvestor”or“MinorityFinancialInvestor”asshallbeapplicable.

(ii)IntheeventaHoldertransfersRegistrableSecuritiesincludedonaRegistrationStatementandsuchRegistrableSecuritiesremainRegistrableSecuritiesfollowingsuchtransfer,attherequestofsuchHolder,theCompanyshalluseitsreasonablebesteffortstoamendorsupplement,subjecttoSection2(g)hereof,suchRegistrationStatementasmaybenecessaryinordertoenablesuchtransfereetoofferandsellsuchRegistrableSecuritiespursuanttosuchRegistrationStatement;providedthatinnoeventshalltheCompanyberequiredtofileapost-effectiveamendmenttotheRegistrationStatementunlesstheCompanyreceivesawrittenrequestfromthesubsequenttransferee,requestingthatitssharesofCommonStockbeincludedintheRegistrationStatement,withallinformationreasonablyrequestedbytheCompany.

(b)Rule144.

TheCompanycovenantsthatitwillfilethereportsrequiredtobefiledbyitundertheSecuritiesActandtheExchangeActandtherulesandregulationsadoptedbytheSECthereunder(or,iftheCompanyisnotrequiredtofilesuchreports,itwilluponthereasonablerequestofanyoftheHolders,makepubliclyavailablesuchinformationsolongasnecessarytopermitsalesofRegistrableSecuritiespursuanttoRule144),anditwilltakesuchfurtheractionasanyHolderofRegistrableSecurities(or,iftheCompanyisnotrequiredtofilereportsasprovidedabove,anyoftheHolders)mayreasonablyrequest,alltotheextentrequiredfromtimetotimetoenablesuchHoldertosellsharesofRegistrableSecuritieswithoutregistrationundertheSecuritiesActwithinthelimitationoftheexemptionsprovidedbyRule144.UpontherequestofanyHolderofRegistrableSecurities,theCompanywilldelivertosuchHolderawrittenstatementastowhetherithascompliedwithsuchrequirementsandwillwithinthelimitationsoftheexemptionprovidedbyRule144(assuchrulemaybeamendedfromtimetotime)oranysimilarruleenactedbytheCommission,instructthetransferagenttoremovetherestrictivelegendaffixedtoanyCommonStockto

enablesuchsharestobesoldincompliancewithRule144(assuchrulemaybeamendedfromtimetotime)oranysimilarruleenactedbytheSEC.

(c)In-KindDistributions.IfanyHolderseekstoeffectuateanin-kinddistributionofallorpartofitsRegistrableSecuritiestoitsdirectorindirectequityholders,theCompanywill,subjecttoapplicablelockups,usereasonablebesteffortstoworkwithsuchHolderandtheCompany’stransferagenttofacilitatesuchin-kinddistributioninthemannerreasonablyrequestedbysuchHolder,aswellasanyresalesbysuchtransfereesunderaRegistrationStatementcoveringsuchdistributedshares.

(d)LimitationsonSubsequentRegistrationRights.TheCompanyshallnotenterintoanyagreementwithanyholderorprospectiveholderofanysecuritiesoftheCompanygivingsuchholderorprospectiveholderanyregistrationrightsthetermsofwhichareequivalenttoormorefavorablethantheregistrationrightsgrantedtoholdersofRegistrableSecuritieshereunder,orwhichwouldreducetheamountofRegistrableSecuritiestheholderscanincludeinanyregistrationfiledorofferingeffectedpursuanttoSection2orSection3hereofunless(i)fromandaftertheEffectiveDateanduntil,2018,theCompanyshallhavereceivedthepriorwrittenconsentof(A)eachOriginalFinancialInvestoruntilsuchtimethattheOriginalFinancialInvestorshaveTransferredtothirdparties(otherthaninanExcludedTransfer)atleastormoreRegistrableSecurities(fortheavoidanceofdoubt,asadjustedforanystocksplitsorstockdividendswithrespecttosuchsharesofCommonStock)intheaggregate,(B)holdersofamajorityoftheRegistrableSecuritiesheldbyallFinancialInvestorssolongassuchFinancialInvestorsholdintheaggregatethreepercent(3.0%)ormoreoftheissuedandoutstandingsharesofCommonStockatsuchtimeofdeterminationand(C)holdersofamajorityoftheRegistrableSecuritiesand(ii)after,2018,theCompanyshallhavereceivedthepriorwrittenconsentofholdersofamajorityoftheRegistrableSecurities.

9.Miscellaneous.

(a)EffectivenessandTermination.Notwithstandinganythingcontainedhereintothecontrary,thisAgreementshallbecomeautomaticallyeffectiveandbindinguponthepartiesheretoonlyupontheoccurrenceoftheIPOClosing(the“EffectiveDate”);providedtheIPOClosingtakesplaceonorbeforeJanuary29,2017.TheprovisionsofthisAgreement(otherthanSection6)shallterminateupontheearliesttooccurof(i)itsterminationbythewrittenagreementoftheCompanyandallHoldersthatownRegistrableSecuritiesortheirrespectivesuccessorsininterest,(ii)thedateonwhichalltheHoldersceasetoownanyRegistrableSecuritiesand(iii)thedissolution,liquidationorwindingupoftheCompany.NothinghereinshallrelieveanypartyfromanyliabilityforthebreachofanyoftheagreementssetforthinthisAgreement.

(b)AmendmentsandWaivers.TheprovisionsofthisAgreementmaybeamended,modifiedorwaivedonlywiththepriorwrittenconsentof(i)theCompanyand(ii)

(A)fromandaftertheEffectiveDateanduntil,2018,(I)eachOriginalFinancialInvestoruntilsuchtimethattheOriginalFinancialInvestorshaveTransferredtothirdparties(otherthaninanExcludedTransfer)atleastormoreRegistrableSecurities(fortheavoidanceofdoubt,asadjustedforanystocksplitsorstockdividendswithrespecttosuchsharesofCommonStock)intheaggregate,(II)holdersofamajorityoftheRegistrableSecuritiesheldbyallFinancialInvestorssolongassuchFinancialInvestorsholdintheaggregatethreepercent(3.0%)ormoreoftheissuedandoutstandingsharesofCommonStockatsuchtimeofdeterminationand(III)holdersofamajorityoftheRegistrableSecuritiesand(B)after,2018,holdersofamajorityoftheRegistrableSecurities;providedhoweverthatinnoeventshalltheobligationsofanyHolderbeincreasedortherightsofanyHolderbeadverselyaffected,exceptuponthewrittenconsentofsuchHolder.ThefailureofanypartytoenforceanyoftheprovisionsofthisAgreementshallinnowaybeconstruedasawaiverofsuchprovisionsandshallnotaffecttherightofsuchpartythereaftertoenforceeachandeveryprovisionofthisAgreementinaccordancewithitsterms.AnyHoldermaywaive(inwriting)thebenefitofanyprovisionofthisAgreementwithrespecttoitselfforanypurpose.AnysuchwaivershallconstituteawaiveronlywithrespecttothespecificmatterdescribedinsuchwritingandshallinnowayimpairtherightsoftheHoldergrantingsuchwaiverinanyotherrespectoratanyothertime.

(c)Successors,AssignsandTransferees.ThisAgreementmaynotbeassignedbytheCompany(whetherbyoperationoflaworotherwise)withoutthepriorwrittenconsentof(i)fromandaftertheEffectiveDateanduntil,2018,(A)eachOriginalFinancialInvestoruntilsuchtimethattheOriginalFinancialInvestorshaveTransferredtothirdparties(otherthaninanExcludedTransfer)atleastormoreRegistrableSecurities(fortheavoidanceofdoubt,asadjustedforanystocksplitsorstockdividendswithrespecttosuchsharesofCommonStock)intheaggregate,(B)holdersofamajorityoftheRegistrableSecuritiesheldbyallFinancialInvestorssolongassuchFinancialInvestorsholdintheaggregatethreepercent(3.0%)ormoreoftheissuedandoutstandingsharesofCommonStockatsuchtimeofdeterminationand(C)holdersofamajorityoftheRegistrableSecuritiesand(ii)after,2018,holdersofamajorityoftheRegistrableSecurities;provided,however,thatnosuchpriorwrittenconsentshallbenecessaryintheeventthattheCompanyisapartytoamerger,consolidation,shareexchangeorsimilarbusinesscombinationtransactioninwhichtheCommonStockisconvertedintotheequitysecuritiesofanotherPerson,fromandaftertheeffectivetimeofsuchtransaction,andsuchPersonshall,byvirtueofsuchtransaction,bedeemedtohaveassumedtheobligationsoftheCompanyhereunder,theterm“Company”shallbedeemedtorefertosuchPersonandtheterm“RegistrableSecurities”shallbedeemedtoincludethesecuritiesreceivedbytheHoldersinconnectionwithsuchtransactionunlesssuchsecuritiesareotherwisefreelytradablebytheHoldersaftergivingeffecttosuchtransaction.ExceptassetforthinSection8(a),therightsandobligationsoftheHoldersunderthisAgreementshallnotbeassignablebyanyHoldertoanyPersonthatisnotaHolder.ThisAgreementshallbebindinguponthepartiesheretoandtheirrespectivesuccessors,assignsandtransferees.

(d)Notices.Allnotices,requestsandothercommunicationstoanypartyhereundershallbeinwriting(includingemailandfacsimiletransmission)

andshallbegiven:

(i)IftotheCompany,to:

AcushnetHoldings,Corp.333BridgeStreetFairhaven,MA02719Attention:JosephJ.Nauman,ExecutiveVicePresident,ChiefLegalandAdministrativeOfficerandSecretaryFacsimile:[]E-mail:[]

Withacopyto:

SimpsonThacher&BartlettLLP425LexingtonAvenueNewYorkNewYork,10017Attention:RoxaneReardon,Esq.Facsimile:212-455-2502E-mail:rfreardon@stblaw.com

(ii)IftoaHolder,initiallytotheaddress,emailandfacsimilesetforthonScheduleIoppositesuchHolder’snameortosuchother

addressandtosuchotherPersonsassuchHoldermayhereafterspecifyinwriting.

orsuchotheraddress,emailorfacsimilenumberassuchpartymayhereafterspecifyforthepurposebynoticetotheotherpartieshereto.

Allsuchnotices,requestsandothercommunicationsshallbedeemeddelivered(i)whendeliveredpersonallytotherecipient,(ii)whensentbyconfirmedelectronicmailorfacsimile,(iii)oneBusinessDayafteritissenttotherecipientbyreputableovernightcourierservice(chargesprepaid)or(iv)three(3)BusinessDaysafteritismailedtotherecipientbyfirstclassmail,returnreceiptrequested.

EachHoldersignatoryheretoandanyPersonthatbecomesaHolderpursuanttoSection8(a)shallusecommerciallyreasonableeffortstoprovidetheCompanywithpromptnoticewhentheynolongerownanyRegistrableSecurities;providedsuchnoticeshallnotberequiredifsuchHoldersells,transfersorotherwisedisposesofallofitsRegistrableSecuritiespursuanttoSection2or3hereof.

(e)FurtherAssurances.Atanytimeorfromtimetotimeafterthedatehereof,thepartiesagreetocooperatewitheachother,andattherequestofanyotherparty,toexecuteanddeliveranyfurtherinstrumentsordocumentsandtotakeallsuchfurtheractionastheotherpartymayreasonablyrequestinordertoevidenceoreffectuatetheconsummationofthe

transactionscontemplatedherebyandtootherwisecarryouttheintentofthepartieshereunder.

(f)NoInconsistentAgreements.TheCompanyshallnothereafterenterintoanyagreementwithrespecttoitssecuritieswhichisinconsistentwithorviolatestherightsgrantedtotheholdersofRegistrableSecuritiesinthisAgreement.

(g)EntireAgreement;NoThirdPartyBeneficiaries.ThisAgreement(i)constitutestheentireagreementamongthepartieswithrespecttothesubjectmatterofthisAgreementandsupersedeanypriordiscussions,correspondence,negotiation,proposedtermsheet,agreement,understandingoragreementandtherearenoagreements,understandings,representationsorwarrantiesbetweenthepartiesotherthanthosesetforthorreferredtointhisAgreementand(ii)exceptasprovidedinSection6withrespecttoanIndemnifiedParty,isnotintendedtoconferinoronbehalfofanyPersonnotapartytothisAgreement(andtheirsuccessorsandassigns)anyrights,benefits,causesofactionorremedieswithrespecttothesubjectmatteroranyprovisionhereof.

(h)GoverningLaw;JurisdictionandForum;WaiverofJuryTrial.

(i)ThisAgreementshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofNewYorkapplicabletocontractsexecutedandtobeperformedwhollywithinsuchStateandwithoutreferencetothechoice-of-lawprinciplesthatwouldresultintheapplicationofthelawsofadifferentjurisdiction.

(ii)EachpartytothisAgreementirrevocablysubmitstothejurisdictionoftheUnitedStatesDistrictCourtfortheSouthernDistrictofNewYorkoranycourtoftheStateofNewYorklocatedinsuchdistrictanysuit,actionorotherproceedingarisingoutoforrelatingtothisAgreement,andherebyirrevocablyagreesthatallclaimsinrespectofsuchsuit,actionorproceedingmaybeheardanddeterminedinsuchcourt.EachpartytothisAgreementherebyirrevocablywaives,tothefullestextentthatitmayeffectivelydoso,thedefenseofaninconvenientforumtothemaintenanceofsuchsuit,actionorotherproceeding.Thepartiesfurtheragree,totheextentpermittedbylaw,thatfinalandunappealablejudgmentagainstanyoftheminanysuit,actionorotherproceedingcontemplatedaboveshallbeconclusiveandmaybeenforcedinanyotherjurisdictionwithinoroutsidetheUnitedStatesbysuitonthejudgment,acertifiedcopyofwhichshallbeconclusiveevidenceofthefactandamountofsuchjudgment.

(iii)EACHPARTYHEREBYIRREVOCABLYANDUNCONDITIONALLYWAIVESANYRIGHTSUCHPARTYMAYHAVETOATRIALBYJURYINRESPECTOFANYLITIGATIONDIRECTLYORINDIRECTLYARISINGOUTOFORRELATINGTOTHISAGREEMENTORTHETRANSACTIONSCONTEMPLATEDHEREBY.

(i)Severability.Ifanyterm,provision,covenantorrestrictionofthisAgreementisheldbyacourtofcompetentjurisdictionorotherauthoritytobeinvalid,voidorunenforceable,theremainderoftheterms,provisions,covenantsandrestrictionsofthis

Agreementshallremaininfullforceandeffectandshallinnowaybeaffected,impairedorinvalidatedsolongastheeconomicorlegalsubstanceofthetransactionscontemplatedherebyisnotaffectedinanymannermateriallyadversetoanypartyhereto.Uponsuchadetermination,thepartiesshallnegotiateingoodfaithtomodifythisAgreementsoastoeffecttheoriginalintentofthepartiesascloselyaspossibleinamutuallyacceptablemannerinorderthatthetransactionscontemplatedherebybeconsummatedasoriginallycontemplatedtothefullestextentpossible.

(j)Enforcement.EachpartyheretoacknowledgesthatmoneydamageswouldnotbeanadequateremedyintheeventthatanyofthecovenantsoragreementsinthisAgreementarenotperformedinaccordancewithitsterms,anditisthereforeagreedthatinadditiontoandwithoutlimitinganyotherremedyorrightitmayhave,thenon-breachingpartywillhavetherighttoaninjunction,temporaryrestrainingorderorotherequitablereliefinanycourtofcompetentjurisdictionenjoininganysuchbreachandenforcingspecificallythetermsandprovisionshereof.InanyactionorproceedingbroughttoenforceanyprovisionofthisAgreement,thesuccessfulpartyshallbeentitledtorecoverreasonableattorneys’feesinadditiontoitscostsandexpensesandotheravailableremedies.

(k)NoRecourse.NotwithstandinganythingtothecontraryinthisAgreement,theCompanyandeachHolderagreesandacknowledgesthatnorecourseunderthisAgreementoranydocumentsorinstrumentsdeliveredinconnectionwiththisAgreement,shallbehadagainstanypast,currentorfuturedirector,officer,employee,generalorlimitedpartnerormemberofHolderorofanyAffiliateorassigneethereof,whetherbytheenforcementofanyassessmentorbyanylegalorequitableproceeding,orbyvirtueofanystatute,regulationorotherapplicablelaw,itbeingexpresslyagreedandacknowledgedthatnopersonalliabilitywhatsoevershallattachto,beimposedonorotherwisebeincurredbyanypast,currentorfutureofficer,agentoremployeeofanyHolderoranypast,currentorfuturememberofanyholderofRegistrableSecuritiesoranypast,currentorfuturedirector,officer,employee,partnerormemberofanyHolderorofanyAffiliateorassigneethereof,assuchforanyobligationofanyHolderunderthisAgreementoranydocumentsorinstrumentsdeliveredinconnectionwiththisAgreementforanyclaimbasedon,inrespectoforbyreasonofsuchobligationsortheircreation.

(l)TitlesandSubtitles.ThetitlesofthesectionsandsubsectionsofthisAgreementareforconvenienceofreferenceonlyandwillnotaffectthemeaningorinterpretationofthisAgreement.

(m)NoStrictConstruction.ThepartiesheretohaveparticipatedjointlyinthenegotiationanddraftingofthisAgreement.Intheeventanambiguityorquestionofintentorinterpretationarises,thisAgreementshallbeconstruedasifdraftedjointlybythepartieshereto,andnopresumptionorburdenofproofshallarisefavoringordisfavoringanypartybyvirtueoftheauthorshipofanyoftheprovisionsofthisAgreement.

(n)Counterparts;FacsimileSignatures.ThisAgreementmaybeexecutedinanynumberofcounterparts(includingviafacsimileandelectronictransmission),eachofwhich

shallbeanoriginal,butallofwhichtogethershallconstituteoneinstrument.ThisAgreementmaybeexecutedbyfacsimilesignature(s).

(o)IndependentNatureofHolders’ObligationsandRights.TheobligationsofeachHolderhereunderareseveralandnotjointwiththeobligationsofanyotherHolderhereunder,andnoHoldershallberesponsibleinanywayfortheperformanceoftheobligationsofanyotherHolderhereunder.Nothingcontainedherein,andnoactiontakenbyanyHolderpursuantheretoorthereto,shallbedeemedtoconstitutetheHoldersasapartnership,anassociation,ajointventureoranyotherkindofgrouporentity,orcreateapresumptionthattheHoldersareinanywayactinginconcertorasagrouporentitywithrespecttosuchobligationsorthetransactionscontemplatedbythisAgreementoranyothermatters,andtheCompanyacknowledgesthattheHoldersarenotactinginconcertorasagroup,andtheCompanyshallnotassertanysuchclaim,withrespecttosuchobligationsortransactions.EachHoldershallbeentitledtoprotectandenforceitsrights,includingwithoutlimitationtherightsarisingoutofthisAgreement,anditshallnotbenecessaryforanyotherHoldertobejoinedasanadditionalpartyinanyproceedingforsuchpurpose.TheuseofasingleagreementwithrespecttotheobligationsoftheCompanycontainedwassolelyinthecontroloftheCompany,nottheactionordecisionofanyHolder,andwasdonesolelyfortheconvenienceoftheCompanyandnotbecauseitwasrequiredorrequestedtodosobyanyHolder.ItisexpresslyunderstoodandagreedthateachprovisioncontainedinthisAgreementisbetweentheCompanyandaHolder,solely,andnotbetweentheCompanyandtheHolderscollectivelyandnotbetweenandamongHolders.

10.MNPIProvisions.

(a)EachHolderacknowledgesthat(i)theprovisionsofSection2,3and5ofthisAgreementmayrequirecertaincommunicationstobemadebytheCompanyorotherHolderstosuchHolderthatmayresultinsuchHolderanditsRepresentatives(asdefinedbelow)acquiringMNPI(whichmayinclude,solelybywayofillustration,thefactthatanofferingoftheCompany’ssecuritiesispendingorthenumberofCompanysecuritiesortheidentityofthesellingHolders)(suchcommunications,“RRACommunications”),and(ii)subjecttothetimelimitationssetforthinSection2(g)andthequalificationsinSection10(b),thereisnolimitationonthedurationoftimethatsuchHolderanditsRepresentativesmaybeinpossessionofMNPIincludedinsuchRRACommunicationsand,exceptwithrespecttoanoticeprovidedpursuanttoSection2(g),norequirementthattheCompanyorotherHoldersmakeanypublicdisclosuretocauseinformationinsuchRRACommunicationstoceasetobeMNPI;providedthattheCompanywillnotifyeachHolderifanyproposedregistrationorofferingforwhichanRRACommunicationshasbeendeliveredpursuanttothisAgreementhasbeenterminatedorabortedtotheextenttheknowledgeofsuchregistrationorofferingconstitutesMNPI.

(b)EachHolderagreesthatitwillmaintaintheconfidentialityofMNPIinRRACommunicationsdeliveredtoitand,totheextentsuchHolderisnotanaturalperson,suchconfidentialtreatmentshallbeinaccordancewithproceduresadoptedbyitingoodfaithtoprotectconfidentialinformationofthirdpartiesdeliveredtosuchHolder(“Policies”);providedthattheobligationtomaintainconfidentialityofMNPIinRRACommunicationsshallceasewhentheinformationintheRRACommunications(i)isknown

orbecomesknowntothepublicingeneral(otherthanasaresultofabreachofthisSection10(b)bysuchHolder),or(ii)isorhasbeenmadeknownordisclosedtotheHolderbyathirdpartywithoutabreachofanyobligationofconfidentialitysuchthirdpartymayhavetotheCompany;providedfurtherthataHoldermaydeliverordiscloseMNPIinsuchRRACommunicationsto(1)toitsaffiliates,itsanditsaffiliates’respectivedirectors,officers,employees,partners,members,agents,attorneys,consultantsandfinancialandotheradvisors,andpotentialsourcesofcapital(includingpotentiallimitedpartners)(collectively,the“Representatives”),butsolelytotheextentsuchdisclosurereasonablyrelatestoitsevaluationofexerciseofitsrightsunderthisAgreementandthesaleofanyRegistrableSecuritiesinconnectionwiththesubjectofthenotice,(2)toanyfederal,state,national,foreignorotherregulatoryorself-regulatoryauthorityhavingjurisdictionoversuchHolder,or(3)toanyPersonifnecessarytoeffectcompliancewithanylaw,rule,regulation,investigation,audit,requestororderapplicabletosuchHolder,includinginresponsetoanysubpoenaorotherlegalprocess,auditorexaminations;providedfurther,thatinthecaseofclause(1),therecipientsofsuchMNPIinsuchRRACommunicationsaresubjecttothePoliciesoragreetoholdconfidentialtheMNPIinamannersubstantiallyconsistentwiththetermsofthisSection10andthatinthecaseofclauses(2)and(3),suchHolderpromptlynotifiestheCompanyofsuchdisclosuretotheextentsuchHolderislegallypermittedtogivesuchnoticeanditisreasonablypracticable;provided,further,nosuchnoticeshallberequiredwheredisclosureismade(x)inresponsetoageneralrequestbyaregulatoryorself-regulatoryauthorityor(y)inconnectionwitharoutineauditorexaminationbyabankexaminerorauditorandsuchauditorexaminationdoesnotreferencetheCompanyorthisAgreement.

(c)EachHolder,byitsexecutionofthisAgreement,hereby(i)acknowledgesthatitisawarethattheU.S.securitieslawsprohibitanyPersonwhohasMNPIaboutacompanyfrompurchasingorselling,directlyorindirectly,securitiesofsuchcompany(includingenteringintohedgetransactionsinvolvingsuchsecurities),orfromcommunicatingsuchinformationtoanyotherPerson,and(ii)agreesthatitwillnotuseorpermitanythirdpartytouse,andthatitwilluseitscommerciallyreasonableeffortstoassurethatnoneofitsRepresentativeswilluseorpermitanythirdpartytouse,anyMNPItheCompanyprovidesincontraventionoftheU.S.securitieslawsandsuchHolderwillceasetradingintheCompany’ssecuritieswhileinpossessionofsuchMNPI.

(d)EachHoldershallhavetheright,atanytimeandfromtimetotime(includingafterreceivinginformationregardinganypotentialUnderwrittenOffering),toelectnottoreceiveRRACommunicationsthattheCompanyoranyotherHoldersotherwisearerequiredtodeliverpursuanttothisAgreementbydeliveringtotheCompanyawrittenstatementsignedbysuchHolderthatitdoesnotwanttoreceiveanyRRACommunications(an“Opt-OutRequest”);inwhichcaseandnotwithstandinganythingtothecontraryinthisAgreementtheCompanyandotherHoldersshallnotberequiredto,andshallnot,deliveranyRRACommunicationsforwhichtheHolderhasindicatedintheOpt-OutRequestthatitdoesnotwanttoreceivehereundertotheextentthatsuchRRACommunicationswouldresultinaHolderacquiringMNPI.AnOpt-OutRequestmaystateadateonwhichitexpiresor,ifnosuchdateisspecified,shallremainineffectuntiltheHoldernotifiestheCompanythatitwithdrawstheOpt-OutRequest,andtheHoldermay,initssolediscretion,determinethescopeandapplicabilityoftheOpt-OutRequestassetforthintheOpt-OutRequest.AHolderwhopreviouslyhasgiventheCompanyanOpt-OutRequestmayupdateorrevokesuch

requestatanytime,andthereshallbenolimitontheabilityofaHoldertoissue,updateandrevokesubsequentOpt-OutRequests;providedthateachHoldershallusecommerciallyreasonableeffortstominimizetheadministrativeburdenontheCompanyarisinginconnectionwithanysuchOpt-OutRequests.

[Remainderofpageleftintentionallyblank]

INWITNESSWHEREOF,eachoftheundersignedhasexecutedthisAgreementorcausedthisAgreementtobedulyexecutedonitsbehalfasofthedate

firstwrittenabove.

Title:

[SignaturePagetoRegistrationRightsAgreement]

INWITNESSWHEREOF,eachoftheundersignedhasexecutedthisAgreementorcausedthisAgreementtobedulyexecutedonitsbehalfasofthedate

firstwrittenabove.HOLDERS:

ODIN3,LLC

Title:

ODIN4,LLC

Title:

NEOPLUXNO.1PRIVATEEQUITY

Title:

WBATLASLLC

Title:

MAGNUSHOLDINGSCO.,LTD.

Title:

[SignaturePagetoRegistrationRightsAgreement]

Schedule1

ListofHolders

Holder

Address Odin3,LLC

Odin4,LLC

NeopluxNo.1PrivateEquity

WBAtlasLLC

MagnusHoldingsCo.,Ltd.

Exhibit10.20

RESTRICTEDSTOCKUNITGRANTNOTICEFORDIRECTORS

UNDERTHEACUSHNETHOLDINGSCORP.2015OMNIBUSINCENTIVEPLAN

AcushnetHoldingsCorp.(the“Company”),pursuanttoits2015OmnibusIncentivePlan(the“Plan”),herebygrantstotheParticipantsetforth

belowthenumberofRestrictedStockUnits(“RSUs”)setforthbelow.TheRSUsaresubjecttoallofthetermsandconditionsassetforthherein,intheRestrictedStockUnitAgreement(attachedhereto),andinthePlan,allofwhichareincorporatedhereinintheirentirety.CapitalizedtermsnototherwisedefinedhereinshallhavethemeaningsetforthinthePlan.Participant:

[InsertParticipantName] DateofGrant:

[InsertDateofGrant] NumberofRSUs:

[InsertNo.ofRestrictedStockUnitsGranted]

VestingCommencementDate:

[InsertVestingCommencementDate] VestingSchedule:

ProvidedtheParticipanthasnotundergoneaTerminationpriortoanapplicablevestingdate,100%oftheRSUsgrantedhereundershallvestontheearliertooccurof(i)thefirstanniversaryoftheVestingCommencementDateand(ii)thedateoftheCompany’sfirstannualshareholders’meetingthatoccursfollowingtheDateofGrant.

Notwithstandingtheabove,intheeventofaChangeinControlthatoccursduringtheParticipant’scontinuedservicewiththeCompany,the

RSUswillimmediatelyvestonthedateofsuchChangeinControl.

THEUNDERSIGNEDPARTICIPANTACKNOWLEDGESRECEIPTOFTHISRESTRICTEDSTOCKUNITGRANTNOTICE,THERESTRICTEDSTOCKUNITAGREEMENTANDTHEPLAN,AND,ASANEXPRESSCONDITIONTOTHEGRANTOFRESTRICTEDSTOCKUNITSHEREUNDER,AGREESTOBEBOUNDBYTHETERMSOFTHISRESTRICTEDSTOCKUNITGRANTNOTICE,THERESTRICTEDSTOCKUNITAGREEMENTANDTHEPLAN.

ACUSHNETHOLDINGSCORP. PARTICIPANT By: Name:Title:

RESTRICTEDSTOCKUNITAGREEMENT

FORDIRECTORSUNDERTHE

ACUSHNETHOLDINGSCORP.2015OMNIBUSINCENTIVEPLAN

PursuanttotheRestrictedStockUnitGrantNotice(the“GrantNotice”)deliveredtotheParticipant(asdefinedintheGrantNotice),andsubject

tothetermsofthisRestrictedStockUnitAgreement(this“RestrictedStockUnitAgreement”)andtheAcushnetHoldingsCorp.2015OmnibusIncentivePlan(the“Plan”),AcushnetHoldingsCorp.(the“Company”)andtheParticipantagreeasfollows.TheGrantNoticeisincorporatedintoanddeemedapartofthisRestrictedStockUnitAgreement.CapitalizedtermsnototherwisedefinedhereinshallhavethesamemeaningassetforthinthePlan.

1.GrantofRestrictedStockUnits.SubjecttothetermsandconditionssetforthhereinandinthePlan,theCompanyherebygrantstotheParticipantthenumberofRestrictedStockUnits(“RSUs”)providedintheGrantNotice(witheachRSUrepresentinganunfunded,unsecuredrighttoreceiveoneshareofCommonStockuponvesting).

2.Vesting.SubjecttotheconditionscontainedhereinandinthePlan,theRSUsshallvestasprovidedintheGrantNotice.

3.SettlementofRestrictedStockUnits.TheprovisionsofSection9(d)(ii)ofthePlanareincorporatedhereinbyreferenceandmadeaparthereof.ExceptasotherwiseelectedpursuanttoanyelectionformsubmittedundertheAcushnetHoldingsCorp.IndependentDirectorsDeferralPlan(the“DeferralPlan”),paymentinsettlementofanyvestedRSUshallbemadeinCommonStockassoonaspracticablefollowingtheapplicablevestingdatebutinnoeventlaterthan60daysfollowingsuchdate.

4.TreatmentofRestrictedStockUnitsUponTermination.ExceptasprovidedintheGrantNotice,theprovisionsofSection9(c)(ii)ofthePlanareincorporatedhereinbyreferenceandmadeaparthereof.

5.Company;Participant.

(a)Theterm“Company”asusedinthisAgreementwithreferencetoservicewiththeCompanyshallincludetheCompanyanditssubsidiaries.

(b)Whenevertheword“Participant”isusedinanyprovisionofthisAgreementundercircumstanceswheretheprovisionshouldlogicallybeconstruedtoapplytotheexecutors,theadministrators,orthepersonorpersonstowhomtheRSUsmaybetransferredbywillorbythelawsofdescentanddistribution,theword“Participant”shallbedeemedtoincludesuchpersonorpersons.

6.Non-Transferability.TheRSUsarenottransferablebytheParticipantexcepttoPermittedTransfereesinaccordancewithSection14(b)ofthePlan.Exceptasotherwiseprovidedherein,noassignmentortransferoftheRSUs,oroftherightsrepresentedthereby,whethervoluntaryorinvoluntary,byoperationoflaworotherwise,shallvestinthe

assigneeortransfereeanyinterestorrighthereinwhatsoever,butimmediatelyuponsuchassignmentortransfertheRSUshallterminateandbecomeofnofurthereffect.

7.RightsasStockholder.TheParticipantorapermittedtransfereeoftheRSUsshallhavenorightsasastockholderwithrespecttoanyshareofCommonStockunderlyinganRSUunlessanduntiltheParticipantshallhavebecometheholderofrecordorthebeneficialownerofsuchCommonStockand,subjecttoSection9,noadjustmentshallbemadefordividendsordistributionsorotherrightsinrespectofsuchshareofCommonStockforwhichtherecorddateispriortothedateuponwhichtheParticipantshallbecometheholderofrecordorthebeneficialownerthereof.

8.TaxWithholding.TheprovisionsofSection14(d)(i)ofthePlanareincorporatedhereinbyreferenceandmadeaparthereof.ExceptintheeventtheParticipantconsentsinwritingtosatisfactionofanyrequiredwithholdinginadifferentmanner(whichmayincludethedeliveryofsharesofCommonStock(whicharenotsubjecttoanypledgeorothersecurityinterest)thathavebeenheldbytheParticipantforatleastsix(6)months(orsuchotherperiodasestablishedfromtimetotimebytheCommitteeinordertoavoidadverseaccountingtreatmentapplyingGAAP)havingaFairMarketValueequaltosuchwithholdingliability),anyrequiredwithholdingwillbesatisfiedbyhavingtheCompanywithholdfromthenumberofsharesofCommonStockotherwiseissuableordeliverablepursuanttothesettlementoftheAwardanumberofshareswithaFairMarketValueequaltosuchwithholdingliability,providedthatthenumberofsuchsharesmaynothaveaFairMarketValuegreaterthantheminimumrequiredstatutorywithholdingliabilityunlessdeterminedbytheCommitteenottoresultinadverseaccountingconsequences.

9.DividendEquivalents.AsofanydatethattheCompanypaysanordinarycashdividendonitsCommonStock,theCompanyshallcredittheParticipantwithanamountequalto(a)thepersharecashdividendpaidbytheCompanyonitsCommonStockonsuchdate,multipliedby(b)thetotalnumberofRSUssubjecttotheAwardthatareoutstandingimmediatelypriortotherecorddateforthatdividend(a“DividendEquivalentRight”).AnyDividendEquivalentRightscreditedpursuanttotheforegoingprovisionsofthisSection9shallbesubjecttothesamevesting,paymentandotherterms,conditionsandrestrictionsastheoriginalRSUstowhichtheyrelate,includingwithrespecttoRSUsforwhichadeferralelectionhasbeenmadeundertheDeferralPlan;provided,however,that(i)withrespecttoRSUsforwhichadeferralelectionhasnotbeenmadeundertheDeferralPlan,theCompanywilldecideontheformofpaymentandmaypaydividendequivalentsinsharesofCommonStock,incashorinacombinationthereof,ineachcase,withoutinterestand(ii)withrespecttoRSUsforwhichadeferralelectionhasbeenmadeundertheDeferralPlan,theShareAccount(asdefinedintheDeferralPlan)shallbecreditedwithanumberofsharesofCommonStockdeterminedbydividingtheamountoftheDividendEquivalentRightrelatingtosuchRSUsbytheFairMarketValueofashareofCommonStockonthedividendpaymentdate,withthevalueofanyfractionalsharespaidtotheParticipantincash.NocreditingofDividendEquivalentRightsshallbemadepursuanttothisSection9withrespecttoanyRSUswhich,immediatelypriortotherecorddateforthatdividend,haveeitherbeensettled,cancelledorforfeited.

10.Clawback/Repayment.AllRSUsshallbesubjecttoreduction,cancellation,forfeitureorrecoupmenttotheextentnecessarytocomplywith(1)anyclawback,

forfeitureorothersimilarpolicyadoptedbytheBoardortheCommitteeandasineffectfromtimetotime,and(2)applicablelaw.TheCommitteemayalsoprovidethatiftheParticipantreceivesanyamountinexcessoftheamountthattheParticipantshouldhaveotherwisereceivedunderthetermsoftheRSUsforanyreason(including,withoutlimitation,byreasonofafinancialrestatement,mistakeincalculationsorotheradministrativeerror),theParticipantshallberequiredtorepayanysuchexcessamounttotheCompany.

11.DetrimentalActivity.NotwithstandinganythingtothecontrarycontainedinthePlan,theGrantNoticeorthisRestrictedStockUnitAgreement,ifaParticipanthasengagedorengagesinanyDetrimentalActivity,theCommitteemay,initssolediscretion,(1)cancelanyoralloftheRSUs,and(2)theParticipantwillforfeitanyafter-taxgainrealizedonthevestingofsuchRSUs,andmustrepaythegaintotheCompany.

12.Notice.EverynoticeorothercommunicationrelatingtothisAgreementbetweentheCompanyandtheParticipantshallbeinwriting,andshallbemailedtoordeliveredtothepartyforwhomitisintendedatsuchaddressasmayfromtimetotimebedesignatedbyitinanoticemailedordeliveredtotheotherpartyashereinprovided;providedthat,unlessanduntilsomeotheraddressbesodesignated,allnoticesorcommunicationsbytheParticipanttotheCompanyshallbemailedordeliveredtotheCompanyatitsprincipalexecutiveoffice,totheattentionoftheCompanySecretary,andallnoticesorcommunicationsbytheCompanytotheParticipantmaybegiventotheParticipantpersonallyormaybemailedtotheParticipantattheParticipant’slastknownaddress,asreflectedintheCompany’srecords.Notwithstandingtheabove,allnoticesandcommunicationsbetweentheParticipantandanythird-partyplanadministratorshallbemailed,delivered,transmittedorsentinaccordancewiththeproceduresestablishedbysuchthird-partyplanadministratorandcommunicatedtotheParticipantfromtimetotime.

13.NoRighttoContinuedService.ThisAgreementdoesnotconferupontheParticipantanyrighttocontinueasaserviceprovidertotheCompany.

14.BindingEffect.ThisAgreementshallbebindingupontheheirs,executors,administratorsandsuccessorsofthepartieshereto.

15.WaiverandAmendments.ExceptasotherwisesetforthinSection13ofthePlan,anywaiver,alteration,amendmentormodificationofanyofthetermsofthisAgreementshallbevalidonlyifmadeinwritingandsignedbythepartieshereto;provided,however,thatanysuchwaiver,alteration,amendmentormodificationisconsentedtoontheCompany’sbehalfbytheCommittee.Nowaiverbyeitherofthepartiesheretooftheirrightshereundershallbedeemedtoconstituteawaiverwithrespecttoanysubsequentoccurrencesortransactionshereunderunlesssuchwaiverspecificallystatesthatitistobeconstruedasacontinuingwaiver.

16.GoverningLaw.ThisAgreementshallbeconstruedandinterpretedinaccordancewiththelawsoftheStateofDelaware,withoutregardtotheprinciplesofconflictsoflawthereof.NotwithstandinganythingcontainedinthisRestrictedStockUnitAgreement,theGrantNoticeorthePlantothecontrary,ifanysuitorclaimisinstitutedbytheParticipantorthe

CompanyrelatingtothisRestrictedStockUnitAgreement,theGrantNoticeorthePlan,theParticipantherebysubmitstotheexclusivejurisdictionofandvenueinthecourtsofDelaware.

17.Plan.ThetermsandprovisionsofthePlanareincorporatedhereinbyreference.IntheeventofaconflictorinconsistencybetweenthetermsandprovisionsofthePlanandtheprovisionsofthisAgreement,thePlanshallgovernandcontrol.

18.Section409A.ItisintendedthattheRSUsgrantedhereunderareintendedandshallbeconstruedtocomplywithSection409AoftheCode(includingtherequirementsapplicableto,ortheconditionsforexemptionfromtreatmentas,a“deferralofcompensation”or“deferredcompensation”asthosetermsaredefinedintheregulationsunderSection409A,whetherbyreasonofshort-termdeferraltreatmentorotherexceptionsorprovisions).

Exhibit10.21

ACUSHNETHOLDINGSCORP.INDEPENDENTDIRECTORSDEFERRALPLAN

SECTION1.Purpose.ThepurposeoftheAcushnetHoldingsCorp.IndependentDirectorsDeferralPlan(the“Plan”)istoattractandretainthe

servicesofexperiencedindependentdirectorsforAcushnetHoldingsCorp.(the“Company”)byprovidingthemwithopportunitiestodeferincometaxesoncertaincompensation.

SECTION2.Definitions.UnlessotherwisedefinedinthePlan,capitalizedtermsusedinthePlanshallhavethemeaningsassignedtothemintheAcushnetHoldingsCorp.2015OmnibusIncentivePlan(the“IncentivePlan”).

SECTION3.Eligibility.UnlessotherwisedeterminedbytheBoard,eachdirectoroftheCompanywhoisnotanemployeeoftheCompanyoranyofitsSubsidiariesshallbeentitledtoparticipateinthePlan(each,an“EligibleDirector”).EachsuchEligibleDirectorwhomakesadeferralunderthePlanisreferredtohereinasa“Participant.”

SECTION4.Administration.ThePlanshallbeadministeredbytheBoard.SubjecttothetermsofthePlanandapplicablelaw,theBoardshallhavefullpowerandauthorityto:(i)designateEligibleDirectorsforparticipation;(ii)determinethetermsandconditionsofanydeferralmadeunderthePlan;(iii)interpretandadministerthePlanandanyinstrumentoragreementrelatingto,ordeferralmadeunder,thePlan;(iv)establish,amend,suspendorwaivesuchrulesandregulationsandappointsuchagentsasitshalldeemappropriatefortheproperadministrationofthePlan;and(v)makeanyotherdeterminationandtakeanyotheractionthattheBoarddeemsnecessaryordesirablefortheadministrationofthePlan.Totheextentlegallypermitted,theBoardmay,initsdiscretion,delegatetotheGeneralCounsel,theChiefHumanResourcesOfficerortooneormoreofficersoftheCompanyanyorallauthorityandresponsibilitytoactwithrespecttoadministrativematterswithrespecttothePlan.ThedeterminationoftheBoardonallmatterswithinitsauthorityrelatingtothePlanshallbefinal,conclusiveandbindinguponallparties,includingtheCompany,itsshareholdersandtheParticipants.

SECTION5.Deferrals.

(a)DeferralElections.EachParticipantmayelecttodeferreceiptofalloranyportionofanysharesofCommonStockissuableuponvestingofanyRestrictedStockUnitgrantedtosuchParticipantpursuanttotheCompany’sdirectorcompensationprogram(a“DeferredStockUnit”).

(b)ElectionForms.AParticipant’sdeferralelectionshallbemadeintheformofadocument(an“ElectionForm”)establishedforsuchpurposebytheBoardthatisexecutedbysuchParticipantandfiledwiththeCompany.TheElectionFormwillrequiresuchParticipanttospecify:

(i)theportionofanysharesofCommonStockissuableuponvestingofanyRestrictedStockUnitthatwillbedeferred;and

(ii)thetimeatwhichthedeferredsharesofCommonStockwillbedistributedtosuchParticipant,whichtimemaybe(x)aspecifieddate,

(y)terminationofsuchParticipant’sservicefromtheBoardor(z)theearlierofaspecifieddateandterminationofsuchParticipant’sservicefromtheBoard.

EachElectionFormwillremainineffectuntilsupersededorrevokedpursuanttothisSection5.

(c)TimingofElections.

(i)SubjecttoSection5(c)(ii),anElectionFormexecutedbyaParticipantshallapplytoanyRestrictedStockUnitthatisgrantedtosuch

ParticipantatanytimefollowingtheendoftheyearinwhichsuchElectionFormisexecuted.

(ii)AnElectionFormfiledbyaParticipantwithin30daysaftersuchParticipantbecomeseligibletoparticipateinthePlanmayapplytoanyRestrictedStockUnitthatrelatestoservicesperformedfollowingthedateonwhichsuchParticipantexecutessuchElectionForm.

(d)SubsequentElectionForms.AParticipantwhohasanElectionFormonfilewiththeCompanymayexecuteandfilewiththeCompanya

subsequentElectionFormatanytime.SuchsubsequentElectionFormshallapplytoanyRestrictedStockUnitthatisgrantedtosuchParticipantfollowingtheendoftheyearinwhichsuchsubsequentElectionFormisexecuted.

(e)RevokingElectionForms.AParticipantmayrevokeanElectionFormatanytimebyprovidingwrittennoticetotheChiefHumanResourcesOfficer.SuchrevocationshallapplytoanyRestrictedStockUnitthatisgrantedtosuchParticipantfollowingtheyearinwhichsuchnoticeisprovided.

(f)Redeferrals.AParticipantmayelecttoredefertheissuanceofsharesofCommonStockinrespectofaDeferredStockUnittoatimefollowingthetimespecifiedontheapplicableElectionForm;providedthatanysuchredeferral(i)willnottakeeffectforatleast12monthsafterthedateonwhichtheredeferralelectionismade;(ii)mustdeferthedistributionforatleastfiveyearsfromthedatetheoriginaldistributionwouldhaveotherwisebeenmade;and(iii)mustbemadeatleast12monthsbeforethedatethedistributionwouldhaveotherwisebeenmade.Anyredeferralelectionthatdoesnotsatisfytheapplicableforegoingrequirementswillbeinvalid,null,andvoid,andthepaymentschedulesetforthinsuchpreviousElectionFormshallcontrol.SuchredeferralelectionshallbemadeintheformofadocumentestablishedforsuchpurposebytheBoardthatisexecutedbysuchParticipantandfiledwiththeChiefHumanResourcesOfficer.

(g)Vesting.EachDeferredStockUnitshallbefullyvestedandnon-forfeitableatalltimesfromtheapplicablevestingdateoftheunderlyingRestrictedStockUnit.Fortheavoidanceofdoubt,nosharesofCommonStockwillbeissuedinrespectofaDeferredStockUnittotheextenttheunderlyingRestrictedStockUnitiscancelledorforfeited,orotherwisedoesnotvest.

SECTION6.TimingandFormofDistribution.

(a)SubjecttothisSection6,distributionwithrespecttoaParticipant’sDeferredStockUnitsshallbemadetosuchParticipantinasinglelumpsum

atthetimespecifiedontheapplicableElectionForm.

(b)TheBoard,initssolediscretion,mayacceleratethedistributionofaParticipant’sDeferredStockUnitifsuchParticipantexperiencesanunforeseeableemergencyorhardship,providedthatsuchdistributioncomplieswithSection409AoftheCode.

(c)DistributionwithrespecttoaParticipant’sDeferredStockUnitsshallbemadeinasinglelumpsumuponaChangeinControlorsuchParticipant’sdeath.A“ChangeinControl”shallhavethemeaningascribedtosuchtermintheIncentivePlan,fromtimetotime.

SECTION7.AmountofDistribution.

(a)DistributioninShares.EachDeferredStockUnitshallbeallocatedtoaseparatebookkeepingaccount(a“ShareAccount”)establishedandmaintainedbythePlanAdministratortorecordthenumberofsharesofCommonStocktowhichsuchDeferredStockUnitrelates.TheShareAccountshallreflectthenumberofsharesofCommonStockdeferredandanyDividendEquivalentRightswithrespecttoDeferredStockUnitscreditedtotheShareAccountpursuanttotheIncentivePlanandapplicableawardagreement.OnthedistributiondateapplicabletoaParticipant’sDeferredStockUnit,suchParticipantshallreceivethatnumberofsharesofCommonStockequaltothenumberofsharescreditedtotheapplicableShareAccountasofsuchdistributiondate.

(b)ThenumberofsharesofCommonStockreflectedinaShareAccountshallbesubjecttoadjustmentpursuanttoSection12oftheIncentivePlan.

SECTION8.GeneralProvisionsApplicabletoDeferrals.

(a)ExceptasmaybepermittedbytheBoard,(i)nodeferralandnorightundersuchdeferralshallbeassignable,alienable,saleableortransferablebyaParticipantotherwisethanbywillorpursuanttoSection8(b)and(ii)duringaParticipant’slifetime,eachdeferral,andeachrightundersuchdeferral,shallbeexercisableonlybysuchParticipantor,ifpermissibleunderapplicablelaw,bysuchParticipant’sguardianorlegalrepresentative.TheprovisionsofthisSection8(a)shallnotapplytoanydeferralthathasbeendistributedtoaParticipant.

(b)AParticipantmaymakeawrittendesignationofbeneficiaryorbeneficiariestoreceiveallorpartofthedistributionsunderthisPlanintheeventofdeathatsuchtimesprescribedbytheBoardbyusingformsandfollowingproceduresapprovedoracceptedbytheBoardforthatpurpose.AnysharesofCommonStockthatbecomepayableupondeath,andastowhichadesignationofbeneficiaryisnotineffect,willbedistributedtotheParticipant’sestate.

(c)FollowingdistributionofsharesofCommonStock,theParticipantwillbethebeneficialownerofthenetsharesofCommonStockissued,andwillbeentitledtoallrightsofownership.

SECTION9.AmendmentsandTermination.

(a)TheBoard,initssolediscretion,mayamend,suspendordiscontinuethePlanoranydeferralatanytime;providedthatnosuchamendment,

suspensionordiscontinuanceshallreducetheaccruedbenefitofanyParticipantexcepttotheextentnecessarytocomplywithapplicablelaw.TheBoardfurtherhastheright,withoutaParticipant’sconsent,toamendormodifythetermsofthePlanandsuchParticipant’sdeferraltotheextentthattheBoarddeemsitnecessarytoavoidadverseorunintendedtaxconsequencestosuchParticipantunderfederal,stateorlocalincometaxlaws.

(b)TheBoard,initssolediscretion,mayterminatethePlanatanytime,aslongassuchterminationcomplieswiththenapplicabletaxandotherrequirements.

(c)SuchotherchangestodeferralsshallbepermittedandhonoredunderthePlantotheextentauthorizedbytheBoardandconsistentwithSection409AoftheCode.

SECTION10.Miscellaneous.

(a)NoEligibleDirectororotherpersonshallhaveanyclaimtobeentitledtomakeadeferralunderthePlan,andthereisnoobligationforuniformityoftreatmentofParticipantsorbeneficiariesunderthePlan.ThetermsandconditionsofdeferralsunderthePlanneednotbethesamewithrespecttoeachParticipant.

(b)TheopportunitytomakeadeferralunderthePlanshallnotbeconstruedasgivingaParticipanttherighttoberetainedintheserviceoftheBoardortheCompany.AParticipant’sdeferralunderthePlanisnotintendedtoconferanyrightsonsuchParticipantexceptassetforthinthePlanandtheapplicableElectionForm.

(c)NothingcontainedinthePlanshallpreventtheCompanyfromadoptingorcontinuingineffectotheroradditionalcompensationarrangements,andsucharrangementsmaybeeithergenerallyapplicableorapplicableonlyinspecificcases.

(d)IfanyprovisionofthePlanoranyElectionFormisorbecomesorisdeemedtobeinvalid,illegalorunenforceableinanyjurisdiction,orastoanypersonordeferral,orwoulddisqualifythePlanoranydeferralunderanylawdeemedapplicablebytheBoard,suchprovisionshallbeconstruedordeemedamendedtoconformtoapplicablelaws,orifitcannotbesoconstruedordeemedamendedwithout,inthedeterminationoftheBoard,materiallyalteringtheintentofthePlanorsuchElectionForm,suchprovisionshallbestrickenastosuchjurisdiction,personordeferral,andtheremainderofthePlanandsuchElectionFormshallremaininfullforceandeffect.

SECTION11.EffectiveDateofthePlan.ThePlanshallbeeffectiveasofthedateonwhichthePlanisadoptedbytheBoard.

SECTION12.UnfundedStatusofthePlan.ThePlanisunfunded.ThePlan,togetherwiththeapplicableElectionForm,shallrepresentatalltimesanunfundedandunsecuredcontractualobligationoftheCompany.EachParticipantandbeneficiarywillbeanunsecuredcreditoroftheCompanywithrespecttoallobligationsowedtothemunderthePlan.No

ParticipantorbeneficiarywillhaveanyinterestinanyfundorinanyspecificassetoftheCompanyofanykind,norshallsuchParticipantorbeneficiaryoranyotherpersonhaveanyrighttoreceiveanypaymentordistributionunderthePlanexceptas,andtotheextent,expresslyprovidedinthePlanandtheapplicableElectionForm.AnyreserveorotherassetthattheCompanymayestablishoracquiretoassureitselfofthefundstoprovidepaymentsrequiredunderthePlanshallnotserveinanywayassecuritytoanyParticipantorbeneficiaryfortheCompany’sperformanceunderthePlan.

SECTION13.Section409AoftheCode.WithrespecttodeferralsthataresubjecttoSection409AoftheCode,thePlanisintendedtocomplywiththerequirementsofSection409AoftheCode,andtheprovisionsofthePlanandanyElectionFormshallbeinterpretedinamannerthatsatisfiestherequirementsofSection409AoftheCode,andthePlanshallbeoperatedaccordingly.IfanyprovisionofthePlanoranytermorconditionofanyElectionFormwouldotherwisefrustrateorconflictwiththisintent,theprovision,termorconditionwillbeinterpretedanddeemedamendedsoastoavoidthisconflict.NotwithstandinganythinginthePlantothecontrary,distributionsmayonlybemadeunderthePlanuponaneventandinamannerpermittedbySection409AoftheCode,andallpaymentstobemadeuponterminationofaParticipant’sservicefromtheBoardunderthisPlanmayonlybemadeupona“separationfromservice”underSection409AoftheCode.IfanyParticipantisa“specifiedemployee”undersection409AoftheCode(asdeterminedbytheBoard)andiftheParticipant’sdistributionunderthePlanistocommence,orbepaidupon,separationfromservice,paymentofthedistributionshallbedelayedforaperiodofsixmonthsaftertheParticipant’sseparationdate,ifrequiredpursuanttosection409AoftheCode.Ifpaymentisdelayed,theaccumulatedpostponedamountshallbepaidwithin10daysaftertheendofthesix-monthperiodfollowingthedateonwhichtheParticipantseparatesfromservice.

SECTION14.GoverningLaw.ThePlanshallbegovernedbyandconstruedinaccordancewiththeinternallawsoftheStateofDelawareapplicabletocontractsmadeandperformedwhollywithintheStateofDelaware,withoutgivingeffecttotheconflictoflawsprovisionsthereof.

QuickLinks--Clickheretorapidlynavigatethroughthisdocument

Exhibit23.1

CONSENTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

WeherebyconsenttotheuseinthisAmendmentNo.4totheRegistrationStatementonFormS-1ofAcushnetHoldingsCorp.ofourreportdatedJune17,2016,exceptwithrespecttoouropinionontheconsolidatedfinancialstatementsinsofarasitrelatestothestocksplitdescribedinNote23astowhichthedateisOctober14,2016,relatingtotheconsolidatedfinancialstatementswhichappearinsuchRegistrationStatement.Wealsoconsenttothereferencetousundertheheading"Experts"insuchRegistrationStatement.

/s/PricewaterhouseCoopersLLPBoston,MassachusettsOctober14,2016

QuickLinks

Exhibit23.1

CONSENTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

INDEXTOCONSOLIDATEDFINANCIALSTATEMENTSd18rn0p25nwr6d.cloudfront.net/CIK-0001672013/6c12af7b-d... ·...

Documents

Transcript of INDEXTOCONSOLIDATEDFINANCIALSTATEMENTSd18rn0p25nwr6d.cloudfront.net/CIK-0001672013/6c12af7b-d... ·...

Skill Pro Filer Profile

Large Accelerated Filer Accelerated Filer Non-accelerated ...

Install Open Filer

Large Accelerated Filer Accelerated Filerd18rn0p25nwr6d.cloudfront.net/CIK-0000070145/2f1275e4-d43b-4a93-8... · examining specific areas, including drilling ... Reserves The unproduced

Filer Bertha 1959 Philippines

8-K Filer Demonstration

Filer Bertha 1963 Philippines

Filer HS PBIS Implementation

Filer: Rockwell Collins, Inc.d18rn0p25nwr6d.cloudfront.net/CIK-0001137411/1793dd49-74... · 2016. 12. 15. · Filer: Rockwell Collins, Inc. Subject Company: B/E Aerospace, Inc. SEC

Large Accelerated Filer Accelerated Filer Non-Accelerated ...d18rn0p25nwr6d.cloudfront.net/CIK-0001609253/8805e05c-bc93-43… · Our large portfolio of low-risk and low-decline conventional

Table of Contentsd18rn0p25nwr6d.cloudfront.net/CIK-0001672013/c60e9532...filings and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts

Filer ID_8013031

Open Filer

Solar System - Filer

CIK TELECOM INC. (CIK TELECOM) ACCESS SERVICES TARIFF

HOLOGIC, INCd18rn0p25nwr6d.cloudfront.net/CIK-0000859737/71123171-d03d-4e… · Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a

Large Accelerated Filer Accelerated Filerd18rn0p25nwr6d.cloudfront.net/CIK-0000926282/a...(State of Incorporation) (I.R.S. Employer Identification Number) 901 Explorer Boulevard Huntsville,

Large Accelerated Filer Accelerated Filerd18rn0p25nwr6d.cloudfront.net/CIK-0000926282/90636b31-0d1b-423c... · placement, installation, configuration ... • GPON , EPON and 10G ...

Filer Evaluation Outcome

Large Accelerated Filer Accelerated Filerd18rn0p25nwr6d.cloudfront.net/CIK-0000070145/2ec1e... · uses a conversion formula of 1 barrel of oil = 6 Mcf of natural gas. Btu British