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Item 1. Financial Statements

2021-02-05 compared with 2020-07-31 · 204 added, 263 removed, 379 unchanged (55% of the section changed)

2 unchanged sentences

Three Months Ended

Nine Months Ended

(thousands, except per share data)

June 26, 2020

June 28, 2019

June 26, 2020

June 28, 2019

(thousands, except per share data) January 1, 2021 December 27, 2019

Net sales $ 165,667 $ 128,054

Cost of sales 90,637 74,442

Gross profit 75,030 53,612

Operating expenses:

6 unchanged sentences

Interest expense 32 35

Other (income) expense, net

Other income, net ( 2,404 ) ( 1,168 )

Profit before income taxes 26,011 8,589

Income tax expense 6,164 2,159

Net income $ 19,847 $ 6,430

Weighted average common shares - Basic:

Class A 8,840 8,800

Class B 1,212 1,212

Participating securities 39 27

1 unchanged sentence

Net income per common share - Basic:

Class A $ 1.99 $ 0.65

Class B $ 1.81 $ 0.59

Net income per common share - Diluted:

Class A $ 1.96 $ 0.64

Class B $ 1.96 $ 0.64

The accompanying notes are an integral part of the condensed consolidated financial statements.

2 unchanged sentences

Three Months Ended

Nine Months Ended

June 26, 2020

June 28, 2019

June 26, 2020

June 28, 2019

Other comprehensive income (loss):

Foreign currency translation:

(thousands) January 1, 2021 December 27, 2019

Net income $ 19,847 $ 6,430

Other comprehensive income:

Foreign currency translation 2,442 700

1 unchanged sentence

Change in pension plans, net of tax of $ 34 and $ 21 , respectively

Total other comprehensive income (loss)

Total other comprehensive income 2,543 761

Total comprehensive income $ 22,390 $ 7,191

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(thousands, except share data)

June 26, 2020

September 27, 2019

June 28, 2019

(thousands, except share data) January 1, 2021 October 2, 2020 December 27, 2019

Current assets:

1 unchanged sentence

Accounts receivable, net 97,386 67,292 78,249

Inventories 114,849 97,437 103,885

Other current assets 9,098 11,372 9,735

1 unchanged sentence

Property, plant and equipment, net of accumulated depreciation of $ 160,822 , $ 156,541 and $ 146,453 , respectively

63,657 63,037 59,629

Right of use assets 38,784 40,666 40,302

Deferred income taxes 10,850 10,679 11,456

Goodwill 11,219 11,184 11,193

Other intangible assets, net 8,911 9,052 11,128

Other assets 26,504 22,870 22,289

Total assets $ 577,181 $ 546,026 $ 486,123

LIABILITIES AND SHAREHOLDERS’ EQUITY

8 unchanged sentences

Accrued customer programs 5,508 4,426 3,819

Other 9,029 11,349 8,269

Total current liabilities 113,288 105,607 95,261

16 unchanged sentences

41,977 , 36,316 and 36,354 , respectively

( 2,715 ) ( 2,220 ) ( 2,221 )

Total shareholders’ equity 398,612 378,100 330,239

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

Nine Months Ended June 26, 2020

(thousands except for shares)

Three Months Ended January 1, 2021

(thousands except for shares) Shares Common Stock Capital in

Excess of Par

Value Retained

Earnings Accumulated

Comprehensive

Income (Loss)

BALANCE AT SEPTEMBER 27, 2019

Income (Loss) Treasury

BALANCE AT OCTOBER 2, 2020 10,084,799 $ 504 $ 78,668 $ 296,431 $ 4,717 $ ( 2,220 )

Net income — — — 19,847 — —

Dividends declared — — — ( 2,094 ) — —

3 unchanged sentences

Change in pension plans, net of tax of $ 34

— — — — 101 —

Purchase of treasury stock at cost ( 5,661 ) — — — — ( 495 )

BALANCE AT DECEMBER 27, 2019

Dividends declared

Award of non-vested shares

Stock-based compensation

Currency translation adjustment

Change in pension plans, net of tax of $20

BALANCE AT MARCH 27, 2020

Dividends declared

Issuance of stock under employee stock purchase plan

Stock-based compensation

Currency translation adjustment

Change in pension plans, net of tax of $60

BALANCE AT JUNE 26, 2020

JOHNSON OUTDOORS INC.

Nine Months Ended June 28, 2019

(thousands except for shares)

BALANCE AT JANUARY 1, 2021 10,112,172 $ 504 $ 79,379 $ 314,184 $ 7,260 $ ( 2,715 )

Three Months Ended December 27, 2019

(thousands except for shares) Shares Common Stock Capital in

Excess of Par

Value Retained

Earnings Accumulated

Comprehensive

Income (Loss)

Income (Loss) Treasury

BALANCE AT SEPTEMBER 27, 2019 10,045,771 $ 504 $ 75,856 $ 248,377 $ 1,558 $ ( 1,761 )

Net income — — — 6,430 — —

Dividends declared — — — ( 1,693 ) — —

5 unchanged sentences

BALANCE AT DECEMBER 27, 2019 10,070,213 $ 504 $ 76,523 $ 253,114 $ 2,319 $ ( 2,221 )

Dividends declared

Issuance of stock under employee stock purchase plan

Award of non-vested shares

Stock-based compensation

Currency translation adjustment

Change in pension plans, net of tax of $33

BALANCE AT MARCH 29, 2019

Dividends declared

Award of non-vested shares

Stock-based compensation

Currency translation adjustment

Change in pension plans, net of tax of ($7)

BALANCE AT JUNE 28, 2019

The accompanying notes are an integral part of the condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended

June 26, 2020

June 28, 2019

CASH PROVIDED BY OPERATING ACTIVITIES

Three Months Ended

(thousands) January 1, 2021 December 27, 2019

CASH USED FOR OPERATING ACTIVITIES

Net income $ 19,847 $ 6,430

Adjustments to reconcile net income to net cash used for operating activities:

Depreciation 3,349 3,176

Amortization of intangible assets 144 256

1 unchanged sentence

Stock based compensation 711 667

Loss (gain) on disposal of productive assets

Deferred income taxes ( 146 ) —

6 unchanged sentences

Other long-term liabilities ( 2,818 ) ( 412 )

CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES

Purchase of short-term investments

Proceeds from sale of short-term investments

Other, net ( 270 ) ( 7 )

( 11,238 ) ( 29,088 )

CASH USED FOR INVESTING ACTIVITIES

Proceeds from sale of productive assets 2 —

Capital expenditures ( 4,390 ) ( 3,307 )

( 4,388 ) ( 3,307 )

CASH USED FOR FINANCING ACTIVITIES

Common stock transactions

Dividends paid ( 2,094 ) ( 1,689 )

Purchases of treasury stock ( 495 ) ( 460 )

( 2,589 ) ( 2,149 )

Effect of foreign currency rate changes on cash 1,701 419

Increase in cash and cash equivalents

Decrease in cash and cash equivalents ( 16,514 ) ( 34,125 )

CASH AND CASH EQUIVALENTS

2 unchanged sentences

Supplemental Disclosure:

Non-cash treasury stock activity

Cash paid for taxes $ 103 $ 123

6 unchanged sentences

In the opinion of management, these statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Johnson Outdoors Inc.

and subsidiaries (collectively, the “Company”) as of June 26, 2020 and June 28, 2019 , and their results of operations for the three and nine month periods then ended and cash flows for the nine month periods then ended.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2019 which was filed with the Securities and Exchange Commission on December 6, 2019.

Due to seasonal variations and other factors, some of which are described herein, including related to the coronavirus (COVID-19) outbreak and resulting pandemic, the results of operations for the three and nine months ended June 26, 2020 are not necessarily indicative of the results to be expected for the Company’s full 2020 fiscal year.

See “Seasonality” and "Coronavirus (COVID-19)" in the Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere herein for additional information.

and subsidiaries (collectively, the “Company”) as of January 1, 2021 and December 27, 2019, and their results of operations for the three month periods then ended and cash flows for the three month periods then ended.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 2, 2020 which was filed with the Securities and Exchange Commission on December 11, 2020.

Due to seasonal variations and other factors, some of which are described herein, including related to the coronavirus (COVID-19) outbreak and resulting pandemic, the results of operations for the three months ended January 1, 2021 are not necessarily indicative of the results to be expected for the Company’s full 2021 fiscal year.

See "Coronavirus (COVID-19) below and “Seasonality” and "Coronavirus (COVID-19)" in the Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere herein for additional information.

The Company considers all short-term investments in interest-bearing accounts and all securities and other instruments with an original maturity of three months or less, to be equivalent to cash.

Cash equivalents are stated at cost which approximates market value.

Short-term investments consist of certificates of deposit with original maturities greater than three months but less than one year.

All monetary amounts, other than share and per share amounts, are stated in thousands.

1 unchanged sentence

In March 2020, the World Health Organization recognized the current coronavirus (COVID-19) outbreak as a global pandemic.

In response to the COVID-19 outbreak, the governments of many countries, states, cities and other geographic regions have imposed varying degrees of restrictions on social and commercial activity, including travel, to promote social distancing in an effort to slow the spread of the illness.

These measures have had a significant adverse impact upon many sectors of the economy, including manufacturing and retail commerce.

In response to these measures and for the protection of our employees, we temporarily closed our manufacturing locations and warehouses at the beginning of the Company's third fiscal quarter which falls during our primary selling season.

While as of June 26, 2020, we had resumed nearly all production and shipping activities under appropriate safety protocols, the period of suspended operations had an adverse impact on sales volumes and operating profits for the three and nine months then ended.

Over the course of the fiscal third quarter, government mandates allowed us to re-open our manufacturing and distribution centers.

While those mandates continued to emphasize social distancing measures to the general public, the Company began to see growing demand and improved sales volumes in the latter part of the quarter for certain of its outdoor recreation businesses.

Nonetheless, the full extent to which the COVID-19 pandemic will impact our business, results of operations, and financial condition will depend on future developments, which are beyond our control and which remain highly uncertain and cannot be predicted.

This includes, but is not limited to, the duration, spread, severity and impact of the COVID-19 pandemic, or future waves, increasing outbreaks or hot spots of the pandemic in our areas of operations or in key markets, the effects of the pandemic on our customers, consumers, suppliers and vendors and the remedial actions and stimulus measures adopted by federal, state and local governments in reaction to the pandemic.

As the COVID-19 pandemic continues to impact various key regions of the world, even after it subsides, we may continue to experience adverse impacts to our business as a result of any economic recession that has occurred or may occur in the future.

As a result, the Company cannot reasonably estimate the impact of the COVID-19 pandemic on Company operations and profitability at this time as the situation is dynamic and constantly changing.

We continue to monitor evolving economic and general business conditions and the actual and potential impacts on our financial position, results of operations and cash flows.

In response to the COVID-19 outbreak, the governments of many countries, states, cities and other geographic regions imposed varying degrees of restrictions on social and commercial activity, including imposing travel restrictions, issuing quarantine, shelter-in-place and stay at home orders and guidelines and related actions, mandating mask wearing, limiting business capacity and generally restricting freedom of movement, in order to promote social distancing and other similar programs all in an effort to slow the spread of the illness.

While some government mandates eased in the latter half of fiscal 2020, these mandates continued to emphasize social distancing measures to the general public.

As a result, we saw increased participation in fishing, camping and watercraft recreation and related demand for our products, largely driven by consumer desire to engage in socially distant and safe activities in the great outdoors in the latter part of fiscal 2020, which continued into the first quarter of fiscal 2021.

Nonetheless, the full extent to which the COVID-19 pandemic will impact our business, results of operations, and financial condition, including with respect to consumer buying patterns for the rest of our fiscal 2021, will depend on future developments, including any potential worsening or improvement of the pandemic, which are beyond our control and which remain highly uncertain and cannot be predicted.

This includes, but is not limited to, the duration, spread, severity and impact of the COVID-19 pandemic, vaccine distribution and effectiveness, or future waves, increasing outbreaks or hot spots of the pandemic in our areas of operations or in key markets, the effects of the pandemic on our customers, consumers, suppliers and vendors and the remedial actions and stimulus measures adopted by federal, state and local governments in reaction to the pandemic.

Further, the authorization of vaccines for COVID-19 by governments around the world, including the distribution of same, may further impact commercial activity and customer or consumer buying behavior, and the extent to which these developments will impact demand for, and participation in, outdoor recreation and related products is unknown.

As the COVID-19 pandemic continues to impact various key regions of the world, even after it subsides, we may continue to experience adverse impacts to our business, including our supply chain, as a result of any economic recession that has occurred or may occur in the future.

As a result, the Company cannot reasonably estimate the full impact of the COVID-19 pandemic on Company operations and profitability at this time as the situation is dynamic and constantly changing.

We continue to monitor evolving economic and general business conditions stemming from the COVID-19 pandemic and the actual and potential impacts on our financial position, results of operations and cash flows.

2 ACCOUNTS RECEIVABLE

Accounts receivable are stated net of allowances for doubtful accounts of $ 2,834 , $ 2,550 and $ 1,969 as of June 26, 2020 , September 27, 2019 and June 28, 2019 , respectively.

Accounts receivable are stated net of allowances for doubtful accounts of $ 2,823 , $ 2,697 and $ 3,062 as of January 1, 2021, October 2, 2020 and December 27, 2019, respectively.

The increase in net accounts receivable to $ 97,386 as of

JOHNSON OUTDOORS INC.

June 26, 2020 from $ 44,508 as of September 27, 2019 is attributable to the seasonal nature of the Company’s business and the resulting increases in sales volumes between periods.

January 1, 2021 from $ 67,292 as of October 2, 2020 is largely attributable to the impact of the COVID-19 pandemic on the buying patterns of the Company’s customers, which has shifted the seasonal nature of the Company’s business and has caused increases in sales volumes between periods.

The determination of the allowance for doubtful accounts is based on a combination of factors.

12 unchanged sentences

In periods where there is a cumulative year to date net loss or no undistributed income because distributions through dividends exceed net income, Class B shares are treated as anti-dilutive and, therefore, net losses are allocated equally on a per share basis among all participating securities.

For the three and nine month periods ended June 26, 2020 and June 28, 2019 , basic income per share for the Class A and Class B shares has been presented using the two class method and reflects the allocation of undistributed income described above.

For the three month periods ended January 1, 2021 and December 27, 2019, basic income per share for the Class A and Class B shares has been presented using the two class method and reflects the allocation of undistributed income described above.

Diluted net income per share is computed by dividing allocated net income by the weighted-average number of common shares outstanding, adjusted for the effect of dilutive stock options, restricted stock units (“stock units” or “units”) and non-vested restricted stock.

3 unchanged sentences

In periods where the Company reports a net loss, the effect of anti-dilutive stock options and units is excluded and diluted loss per share is equal to basic loss per share for both classes of stock.

For the three and nine month periods ended June 26, 2020 and June 28, 2019 , diluted net income per share reflects the effect of dilutive stock units and assumes the conversion of Class B common stock into Class A common stock.

Non-vested stock that could potentially dilute earnings per share in the future which were not included in the fully diluted computation because they would have been anti-dilutive totaled 41,390 and 45,898 for the three months ended June 26, 2020 and June 28, 2019 , respectively, and 40,260 and 43,772 for the nine months ended June 26, 2020 and June 28, 2019 , respectively.

Stock units that could potentially dilute earnings per share in the future and which were not included in the fully diluted computation because they would have been anti-dilutive were 36,495 and 28,673 for the three month periods ended June 26, 2020 and June 28, 2019 , respectively, and 42,368 and 31,178 for the nine months ended June 26, 2020 and June 28, 2019 , respectively.

JOHNSON OUTDOORS INC.

For the three month periods ended January 1, 2021 and December 27, 2019, diluted net income per share reflects the effect of dilutive stock units and assumes the conversion of Class B common stock into Class A common stock.

Non-vested stock that could potentially dilute earnings per share in the future which were not included in the fully diluted computation because they would have been anti-dilutive totaled 40,647 and 40,312 for the three months ended January 1, 2021 and December 27, 2019, respectively.

Stock units that could potentially dilute earnings per share in the future and which were not included in the fully diluted computation because they would have been anti-dilutive were 30,786 and 41,111 for the three month periods ended January 1, 2021 and December 27, 2019, respectively.

Dividends per share

Dividends per share for the three and nine month periods ended June 26, 2020 and June 28, 2019 were as follows:

Dividends per share for the three month periods ended January 1, 2021 and December 27, 2019 were as follows:

JOHNSON OUTDOORS INC.

Three Months Ended

Nine months ended

June 26, 2020

June 28, 2019

June 26, 2020

June 28, 2019

January 1, 2021 December 27, 2019

Dividends declared per common share:

Class A $ 0.21 $ 0.17

Class B $ 0.19 $ 0.15

4 STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS

1 unchanged sentence

Current plans also allow for issuance of shares of restricted stock, restricted stock units or stock appreciation rights in lieu of stock options.

Under the Company’s 2012 Non-Employee Director Stock Ownership Plan and the 2020 Long-Term Incentive Plan (the only plans where shares currently remain available for future equity incentive awards) there were a total of 536,327 shares of the Company’s Class A common stock available for future grant to non-employee directors and key executives at June 26, 2020 .

Under the Company’s 2012 Non-Employee Director Stock Ownership Plan and the 2020 Long-Term Incentive Plan (the only plans where shares currently remain available for future equity incentive awards) there were a total of 507,510 shares of the Company’s Class A common stock available for future grant to non-employee directors and key executives at January 1, 2021.

Share awards previously made under the Company's 2010 Long-Term Stock Incentive Plan, which no longer allows for additional share grants, also remain outstanding.

2 unchanged sentences

The fair value at date of grant is based on the number of shares granted and the average of the Company’s high and low Class A common stock price on the date of grant or, if the Company’s Class A shares did not trade on the date of grant, the average of the Company’s high and low Class A common stock price on the last preceding date on which the Company’s Class A shares traded.

A summary of non-vested stock activity for the nine months ended June 26, 2020 related to the Company’s stock ownership plans is as follows:

Weighted Average

Non-vested stock at September 27, 2019

A summary of non-vested stock activity for the three months ended January 1, 2021 related to the Company’s stock ownership plans is as follows:

Shares Weighted Average

Non-vested stock at October 2, 2020 40,492 $ 62.15

Non-vested stock grants 8,758 88.49

Restricted stock vested ( 7,586 ) 43.12

Non-vested stock at June 26, 2020

Non-vested stock at January 1, 2021 41,664 71.15

Non-vested stock grantees may elect to reimburse the Company for withholding taxes due as a result of the vesting of shares by tendering a portion of the vested shares back to the Company.

Shares tendered back to the Company were 4,054 and 3,381 during the nine month periods ended June 26, 2020 and June 28, 2019 , respectively.

Stock compensation expense, net of forfeitures, related to non-vested stock was $ 270 and $ 240 for the three month periods ended June 26, 2020 and June 28, 2019 , respectively, and $ 762 and $ 518 for the nine month periods ended June 26, 2020 and June 28, 2019 , respectively.

Unrecognized compensation cost related to non-vested stock as of June 26, 2020 was $ 1,446 , which amount will be amortized to expense through November 2022 or adjusted for changes in future estimated or actual forfeitures.

The fair value of restricted stock vested during the nine month periods ended June 26, 2020 and June 28, 2019 was $ 1,329 and $ 1,237 , respectively.

JOHNSON OUTDOORS INC.

Shares tendered back to the Company were 2,341 and 4,054 during the three month periods ended January 1, 2021 and December 27, 2019, respectively.

Stock compensation expense, net of forfeitures, related to non-vested stock was $ 279 and $ 240 for the three month periods ended January 1, 2021 and December 27, 2019, respectively.

Unrecognized compensation cost related to non-vested stock as of January 1, 2021 was $ 1,672 , which amount will be amortized to expense through November 2024 or adjusted for changes in future estimated or actual forfeitures.

The fair value of restricted stock vested during the three month periods ended January 1, 2021 and December 27, 2019 was $ 658 and $ 839 , respectively.

Restricted Stock Units

JOHNSON OUTDOORS INC.

All restricted stock units (RSUs) awarded by the Company have been granted in the form of units payable in shares of Class A common stock upon vesting.

1 unchanged sentence

The fair value at the date of grant is based on the number of units granted and the average of the Company’s high and low Class A common stock trading price on the date of grant or, if the Company’s Class A shares did not trade on the date of grant, the average of the Company’s high and low Class A common stock trading price on the last preceding date on which the Company’s Class A shares traded.

A summary of RSU activity for the nine months ended June 26, 2020 follows:

Number of RSUs

Weighted Average

RSUs at September 27, 2019

RSUs at June 26, 2020

For the three and nine months ended June 26, 2020 , the Company recognized stock compensation expense of $ 1,161 and $ 992 , respectively.

Stock compensation expense, net of forfeitures, related to RSUs was $ 330 and $ 1,144 for the three and nine months ended June 28, 2019 , respectively.

Unrecognized compensation cost related to non-vested RSUs as of June 26, 2020 was $ 1,976 , which amount will be amortized to expense through September 2022 or adjusted for changes in future estimated or actual forfeitures.

A summary of RSU activity for the three months ended January 1, 2021 follows:

Number of RSUs Weighted Average

RSUs at October 2, 2020 67,821 $ 68.34

RSUs granted 20,059 88.49

RSUs vested ( 18,112 ) 43.49

RSUs at January 1, 2021 69,768 80.58

Stock compensation expense, net of forfeitures, related to RSUs was $ 432 and $ 420 for the three months ended January 1, 2021 and December 27, 2019, respectively.

Unrecognized compensation cost related to non-vested RSUs as of January 1, 2021 was $ 3,050 , which amount will be amortized to expense through September 2023 or adjusted for changes in future estimated or actual forfeitures.

RSU grantees may elect to reimburse the Company for withholding taxes due as a result of the vesting of units and issuance of unrestricted shares of Class A common stock by tendering a portion of such unrestricted shares back to the Company.

Shares tendered back to the Company for this purpose were 3,075 and 6,509 during the nine month periods ended June 26, 2020 and June 28, 2019 , respectively.

The fair value of restricted stock units recognized as a tax deduction during the nine month periods ended June 26, 2020 and June 28, 2019 was $ 1,426 and $ 3,333 , respectively.

Shares tendered back to the Company for this purpose were 3,320 and 3,075 during the three month periods ended January 1, 2021 and December 27, 2019, respectively.

The fair value of restricted stock units recognized as a tax deduction during the three month periods ended January 1, 2021 and December 27, 2019 was $ 2,148 and $ 1,426 , respectively.

Compensation expense related to units earned by employees (as opposed to grants to outside directors) is based upon the attainment of certain Company financial goals related to cumulative net sales and cumulative operating profit over a three-year performance period.

6 unchanged sentences

2009 Employees’ Stock Purchase Plan, which was most recently amended on March 2, 2017, and which provides for the issuance of shares of Class A common stock at a purchase price of not less than 85 % of the fair market value of such shares on the date of grant or on the date of purchase, whichever is lower.

During the three month period ended June 26, 2020 , the Company issued 2,190 shares of Class A common stock and recognized $ 14 of income in connection with the Employees' Stock Purchase Plan.

During the nine month period ended June 26, 2020 , the Company issued 2,190 shares of Class A common stock and recognized $ 44 of expense in connection with the Plan.

During the three month period ended June 28, 2019 , the Company issued 0 shares of Class A common stock and recognized $ 4 of expense in connection with the Plan.

During the nine month period ended June 28, 2019 , the Company issued 1,594 shares of Class A common stock and recognized $ 20 of expense in connection with the Plan.

JOHNSON OUTDOORS INC.

During the three month period ended January 1, 2021, the Company issued 0 shares of Class A common stock and recognized $ 0 of expense in connection with the Employees' Stock Purchase Plan.

During the three month period ended December 27, 2019, the Company issued 0 shares of Class A common stock and recognized $ 7 of expense in connection with the Plan.

5 PENSION PLANS

The Company has non-contributory defined benefit pension plans covering certain of its U.S.

The Company has two non-contributory defined benefit pension plans covering certain of its U.S.

Retirement benefits are generally provided based on the employees’ years of service and average earnings.

Normal retirement age is 65, with provisions for earlier retirement.

The Company made contributions of $ 44 and $ 44 to its pension plans for the three months ended June 26, 2020 and June 28, 2019 , respectively, and contributions of $ 132 and $ 134 for the nine months ended June 26, 2020 and June 28, 2019 , respectively.

The components of net periodic benefit cost related to Company sponsored defined benefit plans for the three and nine month periods ended June 26, 2020 and June 28, 2019 were as follows:

The Company made contributions of $ 43 and $ 44 to its pension plans for the three months ended January 1, 2021 and December 27, 2019, respectively.

JOHNSON OUTDOORS INC.

During the first quarter of fiscal 2021, Company management commenced actions to terminate both of the pension plans.

As part of the termination of these plans, all plan participants will have the option of taking a lump sum payment or receiving payout pursuant to an annuity contract.

When the termination and related payouts occur, they are estimated to unfavorably impact net income by approximately $ 4 to $ 5 million.

The components of net periodic benefit cost related to Company sponsored defined benefit plans for the three month periods ended January 1, 2021 and December 27, 2019 were as follows:

Three Months Ended

Nine Months Ended

June 26, 2020

June 28, 2019

June 26, 2020

June 28, 2019

January 1, 2021 December 27, 2019

Components of net periodic benefit cost:

Service cost $ — $ —

Interest on projected benefit obligation 233 276

3 unchanged sentences

6 INCOME TAXES

For the three and nine months ended June 26, 2020 and June 28, 2019 , the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows:

For the three months ended January 1, 2021 and December 27, 2019, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows:

Three Months Ended

Nine Months Ended

(thousands, except tax rate data)

June 26, 2020

June 28, 2019

June 26, 2020

June 28, 2019

January 1, 2021 December 27, 2019

Profit before income taxes $ 26,011 $ 8,589

1 unchanged sentence

Effective income tax rate 23.7 % 25.1 %

The decrease in the effective tax rate for the three and nine months ended June 26, 2020 compared to the prior year periods is primarily due to a decrease in reserves for unrecognized tax benefits from the expiration of statutes of limitations.

The decrease in the effective tax rate for the three months ended January 1, 2021 compared to the prior year period is primarily due to a current period income tax benefit of an intra-entity transfer of an asset other than inventory.

The impact of the Company’s operations in jurisdictions where a valuation allowance is assessed is removed from the overall effective tax rate methodology and recorded directly based on year to date results for the year for which no tax expense or benefit can be recognized.

The significant tax jurisdictions that have a valuation allowance for the periods ended June 26, 2020 and June 28, 2019 were:

June 26, 2020

June 28, 2019

JOHNSON OUTDOORS INC.

The significant tax jurisdictions that have a valuation allowance for the periods ended January 1, 2021 and December 27, 2019 were:

January 1, 2021 December 27, 2019

France France

Indonesia Indonesia

Switzerland Switzerland

The Company regularly assesses the adequacy of its provisions for income tax contingencies in accordance with the applicable authoritative guidance on accounting for income taxes.

1 unchanged sentence

The Company’s 2021 fiscal year tax expense is anticipated to be unchanged related to uncertain income tax positions.

JOHNSON OUTDOORS INC.

In accordance with its accounting policy, the Company recognizes accrued interest and penalties related to unrecognized benefits as a component of income tax expense.

2 unchanged sentences

As of the date of this report, the following tax years remain open to examination by the respective significant tax jurisdictions:

Jurisdiction Fiscal Years

United States 2017-2020

Canada 2016-2020

France 2017-2020

Germany 2017-2020

Italy 2018-2020

Switzerland 2010-2020

7 INVENTORIES

The Company values inventory at the lower of cost (determined using the first-in first-out method) or net realizable value.

Inventories at the end of the respective periods consisted of the following:

September 27, 2019

2021 October 2, 2020 December 27,

Raw materials $ 63,353 $ 48,874 $ 47,208

1 unchanged sentence

Finished goods 51,458 48,524 56,214

The changes in goodwill during the nine months ended June 26, 2020 and June 28, 2019 were as follows:

June 26, 2020

June 28, 2019

$ 114,849 $ 97,437 $ 103,885

The changes in goodwill during the three months ended January 1, 2021 and December 27, 2019 were as follows:

January 1, 2021 December 27, 2019

Balance at beginning of period $ 11,184 $ 11,186

4 unchanged sentences

Fair value is determined primarily by using a discounted cash flow methodology that requires considerable management judgment and long-term assumptions and is considered a Level 3 (unobservable) fair value determination in the fair value hierarchy (see Note 13) below.

JOHNSON OUTDOORS INC.

The Company provides warranties on certain of its products as they are sold.

The following table summarizes the Company’s warranty activity for the nine months ended June 26, 2020 and June 28, 2019 .

June 26, 2020

June 28, 2019

The following table summarizes the Company’s warranty activity for the three months ended January 1, 2021 and December 27, 2019.

JOHNSON OUTDOORS INC.

January 1, 2021 December 27, 2019

Balance at beginning of period $ 10,849 $ 9,190

7 unchanged sentences

11 INDEBTEDNESS

The Company had no debt outstanding at June 26, 2020 , September 27, 2019 , or June 28, 2019 .

The Company had no debt outstanding at January 1, 2021, October 2, 2020, or December 27, 2019.

The Company and certain of its subsidiaries have entered into an unsecured credit facility with PNC Bank National Association and Associated Bank, N.A.

("the Lending Group").

This credit facility consists of a $ 75 million Revolving Credit Facility among the Company, certain of the Company’s subsidiaries, PNC Bank National

JOHNSON OUTDOORS INC.

Association, as lender and as administrative agent, and the other lender named therein (the “Credit Agreement” or “Revolver”).

This credit facility consists of a $ 75 million Revolving Credit Facility among the Company, certain of the Company’s subsidiaries, PNC Bank National Association, as lender and as administrative agent, and the other lender named therein (the “Credit Agreement” or “Revolver”).

The Revolver has an expiration date of November 15, 2022 and provides for borrowing of up to an aggregate principal amount not to exceed $ 75,000 with a $ 50,000 accordion feature that gives the Company the option to increase the maximum financing availability (i.e., an aggregate borrowing amount of $ 125,000 ) subject to the conditions of the Credit Agreement and subject to the approval of the lenders.

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The applicable margin ranges from 1.00 % to 1.75 % and is dependent on the Company’s leverage ratio for the trailing twelve month period.

The interest rates on the Revolver at June 26, 2020 and June 28, 2019 were approximately 1.2 % and 3.4 % , respectively.

The interest rates on the Revolver at January 1, 2021 and December 27, 2019 were approximately 1.1 % and 2.8 %, respectively.

The Credit Agreement restricts the Company's ability to incur additional debt, includes maximum leverage ratio and minimum interest coverage ratio covenants and is unsecured.

Other Borrowings

The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of June 26, 2020 or June 28, 2019 .

The Company utilizes letters of credit primarily as security for the payment of future claims under its workers’ compensation insurance, which totaled approximately $ 181 and $ 279 as of June 26, 2020 and June 28, 2019 , respectively.

The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of January 1, 2021 or December 27, 2019.

The Company utilizes letters of credit primarily as security for the payment of future claims under its workers’ compensation insurance, which totaled approximately $ 181 and $ 181 as of January 1, 2021 and December 27, 2019, respectively.

12 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

5 unchanged sentences

dollar, the sales, expenses, profits, losses, assets and liabilities of the Company’s foreign operations, as reported in the Company’s consolidated financial statements, increase or decrease, accordingly.

Approximately 11 % of the Company’s revenues for the nine month period ended June 26, 2020 were denominated in currencies other than the U.S.

Approximately 10 % of the Company’s revenues for the three month

JOHNSON OUTDOORS INC.

period ended January 1, 2021 were denominated in currencies other than the U.S.

Approximately 4 % were denominated in euros, approximately 4 % were denominated in Canadian dollars and approximately 1 % were denominated in Hong Kong dollars, with the remaining revenues denominated in various other foreign currencies.

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The Company may use such foreign currency forward contracts to mitigate the risk associated with changes in foreign currency exchange rates on financial instruments and known commitments, including commitments for inventory purchases, denominated in foreign currencies.

As of June 26, 2020 and June 28, 2019 , the Company held no foreign currency forward contracts.

As of January 1, 2021 and December 27, 2019, the Company held no foreign currency forward contracts.

13 FAIR VALUE MEASUREMENTS

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These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets or liabilities.

JOHNSON OUTDOORS INC.

• Level 2 - Inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly.

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These inputs reflect the reporting entity’s own assumptions of the data that market participants would use in pricing the asset or liability, based on the best information available in the circumstances.

The carrying amounts of cash, cash equivalents, short term investments, accounts receivable, and accounts payable approximated their fair values at June 26, 2020 , September 27, 2019 and June 28, 2019 due to the short term maturities of these instruments.

The carrying amounts of cash, cash equivalents, short term investments, accounts receivable, and accounts payable approximated their fair values at January 1, 2021, October 2, 2020 and December 27, 2019 due to the short term maturities of these instruments.

When indicators of impairment are present, the Company may be required to value certain long-lived assets such as property, plant, and equipment, and other intangibles at their fair value.

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The rabbi trust assets are used to fund amounts the Company owes to certain officers and other employees under the Company’s non-qualified deferred compensation plan.

These assets are included in "Other assets" in the Company's Condensed Consolidated Balance Sheets, and the mark to market adjustments on the assets are recorded in “Other expense (income), net” in the accompanying Condensed Consolidated Statements of Operations.

The offsetting deferred compensation liability is also reported at fair value as "Deferred compensation liability" in the Company's Condensed Consolidated Balance Sheets.

These assets are included in "Other assets" in the Company's Condensed Consolidated Balance Sheets, and the mark to market adjustments on the assets are recorded in “Other income, net” in the accompanying Condensed Consolidated Statements of Operations.

The offsetting deferred compensation liability is also reported at fair value as "Deferred compensation liability" in the Company's accompanying Condensed Consolidated Balance Sheets.

Changes in the liability are recorded in "Administrative management, finance and information systems" expense in the accompanying Condensed Consolidated Statements of Operations.

The following table summarizes the Company’s financial assets measured at fair value as of June 26, 2020 :

The following table summarizes the Company’s financial assets measured at fair value as of January 1, 2021:

Level 1 Level 2 Level 3 Total

Rabbi trust assets $ 25,032 $ — $ — $ 25,032

The following table summarizes the Company’s financial assets measured at fair value as of September 27, 2019 :

The following table summarizes the Company’s financial assets measured at fair value as of October 2, 2020:

JOHNSON OUTDOORS INC.

Level 1 Level 2 Level 3 Total

Rabbi trust assets $ 21,550 $ — $ — $ 21,550

The following table summarizes the Company’s financial assets measured at fair value as of June 28, 2019 :

The following table summarizes the Company’s financial assets measured at fair value as of December 27, 2019:

Level 1 Level 2 Level 3 Total

Rabbi trust assets $ 20,978 $ — $ — $ 20,978

The effect of changes in the fair value of financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three and nine month periods ended June 26, 2020 and June 28, 2019 was:

The effect of changes in the fair value of financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three month periods ended January 1, 2021 and December 27, 2019 was:

Three Months Ended

Nine months ended

Location of income loss recognized in Statement of

June 26, 2020

June 28, 2019

June 26, 2020

June 28, 2019

Rabbi trust assets

Other (income) expense, net

JOHNSON OUTDOORS INC.

There were no assets or liabilities measured at fair value on a non-recurring basis in periods subsequent to their initial recognition for either of the nine month periods ended June 26, 2020 or June 28, 2019 .

Operations January 1, 2021 December 27, 2019

Rabbi trust assets Other income, net $ 2,596 $ 1,192

There were no assets or liabilities measured at fair value on a non-recurring basis in periods subsequent to their initial recognition for either of the three month periods ended January 1, 2021 or December 27, 2019.

14 NEW ACCOUNTING PRONOUNCEMENTS

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The additional disclosures required by the ASU and its updates are included in Note 18 "Leases" of these Notes to the Condensed Consolidated Financial Statements.

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220) , which allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017.

2018-02 was effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.

The ASU allowed for early adoption in any interim period after issuance of the update.

The Company early adopted the ASU in the second quarter of fiscal 2019, and elected not to make this optional reclassification.

Recently issued accounting pronouncements

In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses (Topic 326)” and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05 (collectively Topic 326).

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This replaces the existing incurred loss model with an expected loss model and requires the use of forward-looking information to calculate credit loss estimates.

The amendments in this guidance are effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain amendments.

Topic 326 must be adopted by applying a cumulative effect adjustment to retained earnings.

The Company does not expect adoption of the new guidance to have a significant impact on its financial statements.

This guidance was effective for the Company in the first quarter of fiscal year 2021, and must be adopted by applying a cumulative effect adjustment to retained earnings.

The Company adopted the provisions of this ASU at the beginning of the first quarter of fiscal 2021, however the ASU did not have a significant impact on its financial statements, and therefore no adjustment to retained earnings was necessary.

Recently issued accounting pronouncements

In August 2018, the FASB issued ASU 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans (Topic 715) , which modifies the disclosure requirements for employers that sponsor defined pension or postretirement plans.

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The Company is currently evaluating the potential impact of this guidance on its disclosures.

JOHNSON OUTDOORS INC.

In December 2019, the FASB issued ASU No.

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The Company does not expect adoption of the new guidance to have a significant impact on its financial statements.

Adoption of Topic 606

In the first quarter of fiscal 2019, the Company adopted ASU 2014-09 and all subsequent ASUs that modified accounting standards Topic 606 using the modified retrospective adoption method.

Upon adoption, the Company recorded a right to returns asset of $ 763 and a corresponding increase in the accrued return liability, resulting in an accrued returns liability of $ 2,725 .

The adoption of this new revenue standard did not otherwise have an impact on the

Company's consolidated financial statements, and the timing and amount of its revenue recognition remained substantially unchanged under this new guidance.

Revenue recognition

Revenue is recognized when obligations under the terms of a contract with our customer are satisfied;

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The Company provides customers the right to return eligible products under certain circumstances.

At June 26, 2020 , the right to returns asset was $ 1,082 and the accrued returns liability was $ 3,207 .

At June 28, 2019 , the right to returns asset was $ 1,170 and the accrued returns liability was $ 3,729 .

At January 1, 2021, the right to returns asset was $ 1,367 and the accrued returns liability was $ 3,621 .

At December 27, 2019, the right to returns asset was $ 1,112 and the accrued returns liability was $ 3,394 .

The Company also offers assurance-type warranties relating to its products sold to end customers that continue to be accounted for under ASC 460 Guarantees.

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Operations are conducted in the United States and various foreign countries, primarily in Europe, Canada and the Pacific Basin.

During the three and nine month periods ended June 26, 2020 , combined net sales to one customer of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $ 20,433 and $ 70,269 , respectively, of the Company's consolidated revenues.

During the three and nine month periods ended June 28, 2019 , combined net sales to one customer of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $ 24,260 and $ 78,010 , respectively, of the Company's consolidated revenues.

Net sales and operating profit include both sales to customers, as reported in the Company’s accompanying Condensed Consolidated Statements of Operations, and interunit transfers, which are priced to recover cost plus an appropriate

During the three month periods ended January 1, 2021 and December 27, 2019, combined net sales to two customers of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $ 53,573 and $ 32,321 , respectively, of the Company's consolidated revenues.

JOHNSON OUTDOORS INC.

profit margin.

Total assets represent assets that are used in the Company’s operations in each business segment at the end of the periods presented.

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Three Months Ended

Nine Months Ended

June 26, 2020

June 28, 2019

June 26, 2020

June 28, 2019

September 27, 2019

January 1, 2021 December 27, 2019 October 2, 2020

Unaffiliated customers $ 126,859 $ 99,193

8 unchanged sentences

Other / Corporate 136 95

Eliminations ( 198 ) ( 101 )

Total $ 165,667 $ 128,054

Operating profit (loss):

Fishing $ 27,763 $ 15,018

Camping 2,808 66

Watercraft Recreation 1,069 ( 1,563 )

Diving ( 341 ) 205

Other / Corporate ( 7,742 ) ( 6,925 )

$ 23,557 $ 6,801

Total assets (end of period):

Fishing $ 244,217 $ 216,783 $ 206,244

Camping 40,901 32,815 37,514

Watercraft Recreation 24,058 20,611 21,038

Diving 68,818 64,799 67,393

Other / Corporate 199,187 151,115 213,837

17 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the three months ended June 26, 2020 were as follows:

$ 577,181 $ 486,123 $ 546,026

JOHNSON OUTDOORS INC.

17 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the three months ended January 1, 2021 were as follows:

Adjustment Unamortized

Loss on Defined

Benefit Pension

Plans Accumulated

Comprehensive

Income (Loss)

Balance at March 27, 2020

Balance at October 2, 2020 $ 7,323 $ ( 2,606 ) $ 4,717

Other comprehensive income before reclassifications 2,442 — 2,442

Amounts reclassified from accumulated other comprehensive income — 135 135

Balance at June 26, 2020

The changes in AOCI by component, net of tax, for the three months ended June 28, 2019 were as follows:

Loss on Defined

Benefit Pension

Comprehensive

Income (Loss)

Balance at March 29, 2019

Other comprehensive loss before reclassifications

Amounts reclassified from accumulated other comprehensive income

Balance at June 28, 2019

The changes in AOCI by component, net of tax, for the nine months ended June 26, 2020 were as follows:

Loss on Defined

Benefit Pension

Comprehensive

Income (Loss)

Balance at September 27, 2019

Other comprehensive loss before reclassifications

Amounts reclassified from accumulated other comprehensive income

Balance at June 26, 2020

The changes in AOCI by component, net of tax, for the nine months ended June 28, 2019 were as follows:

Tax effects — ( 34 ) ( 34 )

Balance at January 1, 2021 $ 9,765 $ ( 2,505 ) $ 7,260

The changes in AOCI by component, net of tax, for the three months ended December 27, 2019 were as follows:

Adjustment Unamortized

Loss on Defined

Benefit Pension

Plans Accumulated

Comprehensive

1 unchanged sentence

Balance at September 27, 2019 $ 4,790 $ ( 3,232 ) $ 1,558

Other comprehensive loss before reclassifications

Other comprehensive income before reclassifications 700 — 700

Amounts reclassified from accumulated other comprehensive income — 82 82

Balance at June 28, 2019

The reclassifications out of AOCI for the three months ended June 26, 2020 and June 28, 2019 were as follows:

JOHNSON OUTDOORS INC.

Tax effects — ( 21 ) ( 21 )

Balance at December 27, 2019 $ 5,490 $ ( 3,171 ) $ 2,319

The reclassifications out of AOCI for the three months ended January 1, 2021 and December 27, 2019 were as follows:

Three Months Ended

June 26, 2020

June 28, 2019

Statement of Operations

Unamortized loss on defined benefit pension plans:

Amortization of loss (gain)

Other income and expense

Income tax expense

Total reclassifications for the period

The reclassifications out of AOCI for the nine months ended June 26, 2020 and June 28, 2019 were as follows:

Nine months ended

June 26, 2020

June 28, 2019

Statement of Operations

January 1, 2021 December 27, 2019 Statement of Operations

Unamortized loss on defined benefit pension plans:

Amortization of loss

Other income and expense

Income tax expense

Amortization of loss $ 135 $ 82 Other income and expense

Tax effects ( 34 ) ( 21 ) Income tax expense

Total reclassifications for the period $ 101 $ 61

JOHNSON OUTDOORS INC.

Adoption of Topic 842

On September 28, 2019, the Company adopted ASU 2016-02 and all subsequent ASUs that modified accounting standards Topic 842 using a modified retrospective adoption method, in which right-of-use ("ROU") assets and lease liabilities are recognized in the condensed consolidated balance sheets.

At the beginning of fiscal year 2020, the Company adopted ASU 2016-02 and all subsequent ASUs that modified accounting standards Topic 842 using a modified retrospective adoption method, in which right-of-use ("ROU") assets and lease liabilities are recognized in the condensed consolidated balance sheets.

Under the effective date transition method, financial results reported in periods prior to fiscal year 2020 are unchanged.

7 unchanged sentences

The Company leases certain facilities and machinery and equipment under long-term, non-cancelable operating leases.

As of June 26, 2020 , the Company had approximately 200 leases, with remaining terms ranging from less than one year to 15 years.

As of January 1, 2021, the Company had approximately 200 leases, with remaining terms ranging from less than one year to 15 years.

Some of the leases contain variable payment terms, such as payments based on fluctuations in the Consumer Price Index (CPI).

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The incremental borrowing rate is derived from information available to the Company at the lease commencement date based on lease length and location.

As of June 26, 2020 , the components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations were as follows:

JOHNSON OUTDOORS INC.

Three months ended

Nine months ended

June 26, 2020

The components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations for the three months ended January 1, 2021 and December 27, 2019 were as follows:

Three months ended Three months ended

January 1, 2021 December 27, 2019

Operating lease costs $ 2,012 $ 1,776

2 unchanged sentences

Total lease cost $ 2,449 $ 2,302

Included in the amounts in the table above, were rent expense to related parties of $ 246 and $ 739 for the three and nine months ended June 26, 2020 , respectively.

As of June 26, 2020 , the Company did not have any finance leases.

There were no significant new leases entered into during the quarter ended June 26, 2020 .

Included in the amounts in the table above, were rent expense to related parties of $ 255 and $ 246 for the three months ended January 1, 2021 and December 27, 2019, respectively.

As of January 1, 2021, the Company did not have any finance leases.

There were no significant new leases entered into during the quarter ended January 1, 2021.

Supplemental balance sheet, cash flow, and other information related to operating leases was as follows:

Nine months ended

June 26, 2020

JOHNSON OUTDOORS INC.

Three months ended Three months ended

January 1, 2021 December 27, 2019

Operating leases:

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Cash paid for amounts included in the measurement of lease liabilities $ 1,857 $ 1,571

Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at June 26, 2020 were as follows:

Related parties included

Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at January 1, 2021 were as follows:

Year Related parties included

in total Total

Remainder of 2021 $ 868 $ 6,508

2022 193 5,316

Thereafter — 21,512

Total undiscounted lease payments 1,061 46,248

1 unchanged sentence

Total net lease liability $ 1,052 $ 39,671

As of June 26, 2020 , the Company did not have any additional significant operating leases commitments that have not yet commenced.

Disclosures related to periods prior to adoption of Topic 842

JOHNSON OUTDOORS INC.

Rental expense under all leases was $ 2,351 and $ 7,029 for the three and nine months ended June 28, 2019 , respectively.

Rent expense to related parties was $ 249 and $ 748 for the three and nine months ended June 28, 2019 , respectively.

Future minimum rent commitments under non-cancelable operating leases with an initial lease term in excess of one year at June 28, 2019 were as follows:

Related parties included

Remainder of 2019

As of January 1, 2021, the Company did not have any additional significant operating leases commitments that have not yet commenced.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements