What Acushnet Holdings Corp. told the SEC could break it.

Acushnet's flagship Titleist golf-ball production depends on a defined set of specialty chemical inputs — in order of consumption: polybutadiene, ionomers, zinc diacrylate, urethane and coatings — and it relies on a sole or limited number of third-party suppliers for many of these raw materials and components (across golf balls, clubs, gloves and shoes), using specialized and geographically limited sources for certain materials. Because these are technical, performance-critical polymers rather than commodity feedstocks, a supply interruption or price spike at a sole-source vendor would directly affect golf-ball output and margin. A specific, named-input commodity dependence.

“Our highest raw material consumption for golf balls, in order, is polybutadiene, ionomers, zinc diacrylate, urethane and coatings.”

Acushnet concentrates physical production in a small number of facilities: the majority of its golf gloves are manufactured at its facility in Thailand, and substantially all FootJoy footwear is manufactured at a third-party-owned facility (the Long An Facility) in Vietnam, with assembly/distribution also clustered in a few locations. It warns that because substantially all products are made, assembled and distributed from a few sites, operations could be interrupted by events beyond its control. A disruption (disaster, labor, power, or geopolitical) at the Thailand glove plant or the Vietnam footwear factory would halt a whole product line, making this a concentrated single-site supply-shock exposure.

“the majority of our golf gloves are manufactured at our facility in Thailand, and substantially all of our FootJoy footwear is manufactured at a third-party owned facility in Vietnam.”

Acushnet is directly tariff-exposed because it imports raw materials, component parts and finished goods — and its key manufacturing bases (gloves in Thailand, footwear in Vietnam) sit squarely among the named individualized-tariff targets. It discloses that during 2025 the U.S. imposed a 10% baseline tariff on most imports plus individualized tariffs on Canada, China, Mexico, Thailand and Vietnam, and that it is already incurring incremental tariff costs. With on-again/off-again tariff announcements adding uncertainty and the threat of retaliatory tariffs abroad, trade policy is a concrete, current cost and margin exposure rather than a hypothetical one.

“During 2025, the U.S. government announced the imposition of significant tariff measures, including a baseline tariff of 10% on most products imported into the United States, as well as individualized tariffs on products imported from select trading partners, including Canada, China, Mexico, Thailand and Vietnam.”