What changed in this filing

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Item 1. Financial Statements

2022-08-05 compared with 2022-05-09 · 133 added, 112 removed, 518 unchanged (32% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended Six Months Ended

(thousands, except per share data) April 1, 2022 April 2, 2021 April 1, 2022 April 2, 2021

Three Months Ended Nine Months Ended

(thousands, except per share data) July 1, 2022 July 2, 2021 July 1, 2022 July 2, 2021

Net sales $ 203,819 $ 213,568 $ 546,966 $ 585,391

27 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended Six Months Ended

(thousands) April 1, 2022 April 2, 2021 April 1, 2022 April 2, 2021

Three Months Ended Nine Months Ended

(thousands) July 1, 2022 July 2, 2021 July 1, 2022 July 2, 2021

Net income $ 14,082 $ 28,774 $ 34,838 $ 76,455

4 unchanged sentences

( 7 ) 123 25 325

Total other comprehensive income (loss) 184 ( 1,411 ) ( 223 ) 1,132

Total other comprehensive (loss) income ( 2,777 ) 865 ( 3,000 ) 1,997

Total comprehensive income $ 11,305 $ 29,639 $ 31,838 $ 78,452

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(thousands, except share data) April 1, 2022 October 1, 2021 April 2, 2021

(thousands, except share data) July 1, 2022 October 1, 2021 July 2, 2021

Current assets:

47 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

Six Months Ended April 1, 2022

Nine Months Ended July 1, 2022

(thousands except for shares) Shares Common Stock Capital in

18 unchanged sentences

Stock-based compensation — — 959 — — —

Tax effects on stock based awards — — — — — —

Currency translation adjustment — — — — 168 —

3 unchanged sentences

BALANCE AT APRIL 1, 2022 10,167,986 $ 511 $ 84,978 $ 385,229 $ 7,163 $ ( 3,295 )

Six Months Ended April 2, 2021

Net income — — — 14,082 — —

Dividends declared — — — ( 3,021 ) — —

Issuance of stock under employee stock purchase plan 5,112 — 332 — — —

B to A conversion — — ( 2 ) — — 2

Stock-based compensation — — 1,061 — — —

Currency translation adjustment — — — — ( 2,770 ) —

Change in pension plans, net of tax of $( 2 )

— — — — ( 7 ) —

Treasury stock adjustment — — — — — 3

BALANCE AT JULY 1, 2022 10,173,098 $ 511 $ 86,369 $ 396,290 $ 4,386 $ ( 3,290 )

JOHNSON OUTDOORS INC.

Nine Months Ended July 2, 2021

(thousands except for shares) Shares Common Stock Capital in

22 unchanged sentences

BALANCE AT APRIL 2, 2021 10,118,188 $ 508 $ 80,183 $ 339,911 $ 5,849 $ ( 2,715 )

Net income — — — 28,774 — —

Dividends declared — — — ( 2,103 ) — —

Award of non-vested shares 9,633 1 ( 1 ) — — —

Stock-based compensation — — 1,052 — — —

Restricted stock forfeitures ( 621 ) — 75 — — ( 75 )

Currency translation adjustment — — — — 742 —

Change in pension plans, net of tax of $ 41

BALANCE AT JULY 2, 2021 10,127,200 $ 509 $ 81,309 $ 366,582 $ 6,714 $ ( 2,790 )

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

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended

(thousands) April 1, 2022 April 2, 2021

CASH USED FOR OPERATING ACTIVITIES

Nine Months Ended

(thousands) July 1, 2022 July 2, 2021

CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES

Net income $ 34,838 $ 76,455

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

Adjustments to reconcile net income to net cash (used for) provided by operating activities:

Depreciation 10,239 9,660

2 unchanged sentences

Stock based compensation 3,146 2,571

(Gain) loss on disposal of productive assets ( 1 ) 99

Loss on disposal of productive assets 90 44

Deferred income taxes 6 ( 860 )

13 unchanged sentences

CASH USED FOR FINANCING ACTIVITIES

Common stock transactions 332 —

Dividends paid ( 9,037 ) ( 6,297 )

2 unchanged sentences

Effect of foreign currency rate changes on cash ( 2,104 ) 1,228

Decrease in cash and cash equivalents ( 127,262 ) ( 25,516 )

(Decrease) Increase in cash and cash equivalents ( 122,881 ) 36,579

CASH AND CASH EQUIVALENTS

2 unchanged sentences

Supplemental Disclosure:

Non-cash treasury stock activity $ ( 9 ) $ 75

Non-cash dividends 12 7

Cash paid for taxes 16,386 18,828

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 April 1, 2022 and April 2, 2021, and their results of operations for the three and six month periods then ended and cash flows for the six month periods then ended.

and subsidiaries (collectively, the “Company”) as of July 1, 2022 and July 2, 2021, 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 October 1, 2021 which was filed with the Securities and Exchange Commission on December 10, 2021.

Due to seasonal variations and other factors, some of which are described herein, including related to the ongoing coronavirus (COVID-19) outbreak and resulting pandemic and the continued disruption to the global supply chain and logistics infrastructure, the results of operations for the three and six months ended April 1, 2022 are not necessarily indicative of the results to be expected for the Company’s full 2022 fiscal year.

Due to seasonal variations and other factors, some of which are described herein, including related to the ongoing coronavirus (COVID-19) outbreak and resulting pandemic and the continued disruption to the global supply chain and logistics infrastructure, the results of operations for the three and nine months ended July 1, 2022 are not necessarily indicative of the results to be expected for the Company’s full 2022 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.

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As a result, because we sell products that are used in a safe and socially distant manner in the great outdoors, the COVID-19 pandemic has had an overall favorable effect on our sales levels and the demand for our products starting at the end of our fiscal 2020 and continuing into fiscal 2022.

Specifically, the Company has seen increased participation in fishing, camping and watercraft recreation and consumer demand for our products in these business segments.

Nonetheless, the continued evolution of the pandemic has resulted in disruptions to the global supply chain and the logistics infrastructure (including with respect to the sourcing, timing, availability and cost of raw materials and components that are necessary to manufacture our products).

The lingering impact of these disruptions is not fully known as they, along with certain inflationary pressures in the economy, may result in economic slowdowns and ultimately lower demand for discretionary goods like our outdoor recreational products.

The lingering impact of these disruptions is not fully known as they, along with certain inflationary pressures in the economy, have resulted in increased costs associated with building certain items of our inventory, and may result in future economic slowdowns and ultimately lower demand for discretionary goods like our outdoor recreational products.

Furthermore, the continued impact of the pandemic on the global supply chain (including with respect to impacting the sourcing, timing, availability and cost of raw materials and components that are necessary to manufacture our products) is beyond our control and remains highly uncertain and cannot be predicted at his time.

2 ACCOUNTS RECEIVABLE

Accounts receivable are stated net of allowances for doubtful accounts of $ 1,504 , $ 2,494 and $ 2,463 as of April 1, 2022, October 1, 2021 and April 2, 2021, respectively.

The increase in net accounts receivable to $ 119,517 as of April 1, 2022 from $ 71,321 as of October 1, 2021 is attributable to the seasonal nature of the Company’s business and the impact COVID-19 has had on generating heightened interest in outdoor activities which has resulted in increases in sales volumes between periods.

Accounts receivable are stated net of allowances for doubtful accounts of $ 1,208 , $ 2,494 and $ 1,446 as of July 1, 2022, October 1, 2021 and July 2, 2021, respectively.

The increase in net accounts receivable to $ 103,244 as of July 1, 2022 from $ 71,321 as of October 1, 2021 is attributable to the seasonal nature of the Company’s business.

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

In circumstances where specific collection concerns about a receivable exist, a reserve is established to value the affected account receivable at an amount the Company believes will be collected.

For all other customers, the Company recognizes allowances for doubtful accounts based on historical experience of bad debts as a percent of

For all other customers, the Company recognizes allowances for doubtful accounts based on historical experience of bad debts as a percent of accounts receivable outstanding for each

JOHNSON OUTDOORS INC.

accounts receivable outstanding for each business segment.

business segment.

Uncollectible accounts are written off against the allowance for doubtful accounts after collection efforts have been exhausted.

9 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 six month periods ended April 1, 2022 and April 2, 2021, 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 and nine month periods ended July 1, 2022 and July 2, 2021, 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 six month periods ended April 1, 2022 and April 2, 2021, 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.

Shares of 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 39,163 and 40,024 for the three months ended April 1, 2022 and April 2, 2021, respectively, and 38,540 and 40,336 for the six months ended April 1, 2022 and April 2, 2021, 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 37,904 and 24,894 for the three month periods ended April 1, 2022 and April 2, 2021, respectively, and 33,966 and 32,917 for the six month periods ended April 1, 2022 and April 2, 2021, respectively.

For the three and nine month periods ended July 1, 2022 and July 2, 2021, 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.

Shares of 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 38,353 and 40,743 for the Third months ended July 1, 2022 and July 2, 2021, respectively, and 38,477 and 40,471 for the nine months ended July 1, 2022 and July 2, 2021, 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 37,152 and 20,277 for the Third month periods ended July 1, 2022 and July 2, 2021, respectively, and 35,413 and 27,411 for the nine month periods ended July 1, 2022 and July 2, 2021, respectively.

Dividends per share

Dividends per share for the three and six month periods ended April 1, 2022 and April 2, 2021 were as follows:

Dividends per share for the three and nine month periods ended July 1, 2022 and July 2, 2021 were as follows:

JOHNSON OUTDOORS INC.

Three Months Ended Six months ended

April 1, 2022 April 2, 2021 April 1, 2022 April 2, 2021

Three Months Ended Nine months ended

July 1, 2022 July 2, 2021 July 1, 2022 July 2, 2021

Dividends declared per common share:

4 unchanged sentences

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 466,598 shares of the Company’s Class A common stock available for future grant to non-employee directors and key executives at April 1, 2022.

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.

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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 six months ended April 1, 2022 related to the Company’s stock ownership plans is as follows:

A summary of non-vested stock activity for the nine months ended July 1, 2022 related to the Company’s stock ownership plans is as follows:

Shares Weighted Average

3 unchanged sentences

Forfeitures ( 2,040 ) 73.52

Non-vested stock at April 1, 2022 40,411 82.02

Non-vested stock at July 1, 2022 39,183 80.76

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 1,778 and 2,341 during the six month periods ended April 1, 2022 and April 2, 2021, respectively.

Stock compensation expense, net of forfeitures, related to non-vested stock was $ 266 and $ 297 for the three month periods ended April 1, 2022 and April 2, 2021, respectively, and $ 561 and $ 576 for the six month periods ended April 1, 2022 and April 2, 2021, respectively.

Unrecognized compensation cost related to non-vested stock as of April 1, 2022 was $ 2,072 , which amount will be amortized to expense through November 2025 or adjusted for changes in future estimated or actual forfeitures.

The fair value of restricted stock vested during the six month periods ended April 1, 2022 and April 2, 2021 was $ 1,053 and $ 1,258 , respectively.

Shares tendered back to the Company were 1,778 and 2,341 during the nine month periods ended July 1, 2022 and July 2, 2021, respectively.

Stock compensation expense, net of forfeitures, related to non-vested stock was $ 335 and $ 286 for the three month periods ended July 1, 2022 and July 2, 2021, respectively, and $ 896 and $ 862 for the nine month periods ended July 1, 2022 and July 2, 2021, respectively.

Unrecognized compensation cost related to non-vested stock as of July 1, 2022 was $ 1,737 , which amount will be amortized to expense through February 2026 or adjusted for changes in future estimated or actual forfeitures.

The fair value of restricted stock vested during the nine month periods ended July 1, 2022 and July 2, 2021 was $ 1,002 and $ 1,950 , respectively.

Restricted Stock Units

3 unchanged sentences

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 six months ended April 1, 2022 follows:

A summary of RSU activity for the nine months ended July 1, 2022 follows:

Number of RSUs Weighted Average

3 unchanged sentences

RSU's forfeited ( 1,340 ) 74.62

RSUs at April 1, 2022 65,994 82.58

Stock compensation expense, net of forfeitures, related to RSUs was $ 597 and $ 511 for the three month periods ended April 1, 2022 and April 2, 2021, respectively, and $ 1,325 and $ 943 for the six month periods ended April 1, 2022 and April 2, 2021, respectively.

Unrecognized compensation cost related to non-vested RSUs as of April 1, 2022 was $ 3,577 , which amount will be amortized to expense through September 2024 or adjusted for changes in future estimated or actual forfeitures.

RSUs at July 1, 2022 65,994 82.58

Stock compensation expense, net of forfeitures, related to RSUs was $ 636 and $ 735 for the three month periods ended July 1, 2022 and July 2, 2021, respectively, and $ 1,961 and $ 1,678 for the nine month periods ended July 1, 2022 and July 2, 2021, respectively.

Unrecognized compensation cost related to non-vested RSUs as of July 1, 2022 was $ 2,746 , which amount will be amortized to expense through September 2024 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 2,799 and 3,320 during the six month periods ended April 1, 2022 and April 2, 2021, respectively.

The fair value of restricted stock units recognized as a tax deduction during the six month periods ended April 1, 2022 and April 2, 2021 was $ 2,849 and $ 2,148 , respectively.

Shares tendered back to the Company for this purpose were 3,311 and 3,320 during the nine month periods ended July 1, 2022 and July 2, 2021, respectively.

The fair value of restricted stock units recognized as a tax deduction during the nine month periods ended July 1, 2022 and July 2, 2021 was $ 3,240 and $ 3,353 , 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 April 1, 2022, the Company issued 0 shares of Class A common stock and recognized $ 96 of expense in connection with the Employees' Stock Purchase Plan.

During the six month period ended April 1, 2022, the Company issued 0 shares of Class A common stock and recognized $ 199 of expense in connection with the Employees' Stock Purchase Plan.

During the three month period ended April 2, 2021, the Company issued 0 shares of Class A common stock and recognized $ 0 of expense in connection with the Plan.

During the six month period ended April 2, 2021, the Company issued 0 shares of Class A common stock and recognized $ 0 of expense in connection with the Plan.

During the Third month period ended July 1, 2022, the Company issued 5,112 shares of Class A common stock and recognized $ 90 of expense in connection with the Employees' Stock Purchase Plan.

During the nine month period ended July 1, 2022, the Company issued 5,112 shares of Class A common stock and recognized $ 289 of expense in connection with the Employees' Stock Purchase Plan.

During the Third month period ended July 2, 2021, the Company issued 0 shares of Class A common stock and recognized $ 31 of expense in connection with the Plan.

During the nine month period ended July 2, 2021, the Company issued 0 shares of Class A common stock and recognized $ 31 of expense in connection with the Plan.

JOHNSON OUTDOORS INC.

8 unchanged sentences

Supplemental Executive Retirement Plan ("SERP"), and all future benefit payments to participants under this plan are made from the Company's general assets.

The Company made contributions of $ 25 and $ 44 to its pension plans for the three months ended April 1, 2022 and April 2, 2021, respectively, and contributions of $ 50 and $ 88 for the six months ended April 1, 2022 and April 2, 2021, respectively.

The components of net periodic benefit cost related to Company sponsored defined benefit plans for the three and six month periods ended April 1, 2022 and April 2, 2021 were as follows:

Three Months Ended Six Months Ended

April 1, 2022 April 2, 2021 April 1, 2022 April 2, 2021

The Company made contributions of $ 25 and $ 42 to its pension plans for the three months ended July 1, 2022 and July 2, 2021, respectively, and contributions of $ 74 and $ 130 for the nine months ended July 1, 2022 and July 2, 2021, respectively.

The components of net periodic benefit cost related to Company sponsored defined benefit plans for the three and nine month periods ended July 1, 2022 and July 2, 2021 were as follows:

Three Months Ended Nine Months Ended

July 1, 2022 July 2, 2021 July 1, 2022 July 2, 2021

Components of net periodic benefit cost:

5 unchanged sentences

6 INCOME TAXES

For the three and six months ended April 1, 2022 and April 2, 2021, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows:

Three Months Ended Six Months Ended

For the three and nine months ended July 1, 2022 and July 2, 2021, 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)

April 1, 2022 April 2, 2021 April 1, 2022 April 2, 2021

July 1, 2022 July 2, 2021 July 1, 2022 July 2, 2021

Profit before income taxes $ 19,244 $ 39,074 $ 47,043 $ 102,395

1 unchanged sentence

Effective income tax rate 26.8 % 26.4 % 25.9 % 25.3 %

The effective tax rate for the three months ended April 1, 2022 and the prior year quarter were consistent with no primary factors materially impacting the rate.

The effective tax rate was higher for the six months ended April 1, 2022 compared to the prior year period mainly due to the favorable impact from an intra-entity transfer of an asset other than inventory recorded in the prior year.

The effective tax rates for the three and nine months ended July 1, 2022 and the prior year periods were relatively consistent with no primary factors materially impacting the rate.

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 April 1, 2022 and April 2, 2021 were:

The significant tax jurisdictions that have a valuation allowance for the periods ended July 1, 2022 and July 2, 2021 were:

JOHNSON OUTDOORS INC.

April 1, 2022 April 2, 2021

July 1, 2022 July 2, 2021

France France

19 unchanged sentences

2022 October 1,

2021 April 2,

Raw materials $ 175,261 $ 110,974 $ 82,648

2 unchanged sentences

$ 250,956 $ 166,615 $ 130,742

The changes in goodwill during the six months ended April 1, 2022 and April 2, 2021 were as follows:

April 1, 2022 April 2, 2021

The changes in goodwill during the nine months ended July 1, 2022 and July 2, 2021 were as follows:

July 1, 2022 July 2, 2021

Balance at beginning of period $ 11,221 $ 11,184

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

The following table summarizes the Company’s warranty activity for the six months ended April 1, 2022 and April 2, 2021.

April 1, 2022 April 2, 2021

The following table summarizes the Company’s warranty activity for the nine months ended July 1, 2022 and July 2, 2021.

July 1, 2022 July 2, 2021

Balance at beginning of period $ 14,073 $ 10,849

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11 INDEBTEDNESS

The Company had no debt outstanding at April 1, 2022, October 1, 2021, or April 2, 2021.

The Company had no debt outstanding at July 1, 2022, October 1, 2021, or July 2, 2021.

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

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On July 15, 2021, the Company entered into a First Amendment to this credit facility that extended its expiration date from November 15, 2022, to July 15, 2026.

Other key provisions of the credit facility remained as outlined above and the description herein is qualified in its entirety by the terms and conditions of the original Debt Agreement (a copy of which was filed as Exhibit 99.1 to the current report on Form 8-K dated and filed with the Securities and Exchange Commission on November 20, 2017) and the Amendment, (a copy of which was filed as Exhibit 10.1 to the current report on Form 8-K dated and filed with the Securities and Exchange Commission on July 16, 2021).

Other key provisions of the credit facility remained as outlined herein and the description herein is qualified in its entirety by the terms and conditions of the original Debt Agreement (a copy of which was filed as Exhibit 99.1 to the current report on Form 8-K dated and filed with the Securities and Exchange Commission on November 20, 2017) and the Amendment, (a copy of which was filed as Exhibit 10.1 to the current report on Form 8-K dated and filed with the Securities and Exchange Commission on July 16, 2021).

The interest rate on the Revolver is based on LIBOR plus an applicable margin, which margin resets each quarter.

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 both April 1, 2022 and April 2, 2021 were approximately 1.4 % and 1.1 %, respectively.

The interest rates on the Revolver at both July 1, 2022 and July 2, 2021 were approximately 2.8 % and 1.1 %, 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.

1 unchanged sentence

JOHNSON OUTDOORS INC.

The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of April 1, 2022 or April 2, 2021.

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 April 1, 2022 and April 2, 2021, respectively.

The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of July 1, 2022 or July 2, 2021.

The Company utilizes letters of credit primarily as security for the payment of future claims under its workers’ compensation insurance, which totaled approximately $ 173 and $ 181 as of July 1, 2022 and July 2, 2021, 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 12 % of the Company’s revenues for the six month period ended April 1, 2022 were denominated in currencies other than the U.S.

Approximately 13 % of the Company’s revenues for the nine month period ended July 1, 2022 were denominated in currencies other than the U.S.

Approximately 4 % were denominated in euros, approximately 7 % were denominated in Canadian dollars and approximately 1 % were denominated in Hong Kong dollars, with the remaining revenues denominated in various other foreign currencies.

3 unchanged sentences

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 April 1, 2022 and April 2, 2021, the Company held no foreign currency forward contracts.

As of July 1, 2022 and July 2, 2021, the Company held no foreign currency forward contracts.

13 FAIR VALUE MEASUREMENTS

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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 April 1, 2022, October 1, 2021 and April 2, 2021 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 July 1, 2022, October 1, 2021 and July 2, 2021 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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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 April 1, 2022:

The following table summarizes the Company’s financial assets measured at fair value as of July 1, 2022:

Level 1 Level 2 Level 3 Total

3 unchanged sentences

Rabbi trust assets $ 27,851 $ — $ — $ 27,851

The following table summarizes the Company’s financial assets measured at fair value as of April 2, 2021:

The following table summarizes the Company’s financial assets measured at fair value as of July 2, 2021:

Level 1 Level 2 Level 3 Total

Rabbi trust assets $ 27,879 $ — $ — $ 27,879

The effect of changes in the fair value of financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three and six month periods ended April 1, 2022 and April 2, 2021 was:

Three Months Ended Six months ended

Location of (expense) income recognized in Statement of Operations April 1, 2022 April 2, 2021 April 1, 2022 April 2, 2021

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 July 1, 2022 and July 2, 2021 was:

Three Months Ended Nine months ended

Location of expense (income) recognized in Statement of Operations July 1, 2022 July 2, 2021 July 1, 2022 July 2, 2021

Rabbi trust assets Other expense (income), net $ 3,851 $ ( 1,351 ) $ 4,900 $ ( 5,151 )

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 six month periods ended April 1, 2022 or April 2, 2021.

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 July 1, 2022 or July 2, 2021.

14 NEW ACCOUNTING PRONOUNCEMENTS

4 unchanged sentences

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.

The Company adopted the provisions of this ASU at the beginning of the first quarter of fiscal 2021, however the ASU did

JOHNSON OUTDOORS INC.

not have a significant impact on its financial statements, and therefore no adjustment to retained earnings was necessary.

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.

27 unchanged sentences

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

At April 1, 2022, the right to returns asset was $ 827 and the accrued returns liability was $ 2,283 .

At April 2, 2021, the right to returns asset was $ 1,487 and the accrued returns liability was $ 4,030 .

At July 1, 2022, the right to returns asset was $ 765 and the accrued returns liability was $ 2,226 .

At July 2, 2021, the right to returns asset was $ 1,105 and the accrued returns liability was $ 3,043 .

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.

2 unchanged sentences

In the event that a customer were to take control of a product upon or after shipment, the Company has made an accounting policy election to treat such shipping and handling activities as a fulfillment cost.

Shipping and handling fees billed to customers are included in "Net Sales," and shipping and handling costs are recognized within "Marketing and selling expenses" in the same period the related revenue is recognized.

Shipping and handling fees billed to

JOHNSON OUTDOORS INC.

customers are included in "Net Sales," and shipping and handling costs are recognized within "Marketing and selling expenses" in the same period the related revenue is recognized.

The Company has a wide variety of seasonal, outdoor recreation products used primarily for fishing from a boat, diving, paddling, hiking and camping, that are sold to a variety of customers in multiple end markets.

4 unchanged sentences

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

During the three and six month periods ended April 1, 2022, combined net sales to one customer of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $ 21,616 and $ 48,921 , respectively, of the Company's consolidated revenues.

During the three and six month periods ended April 2, 2021, combined net sales to two customers of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $ 45,735 and $ 99,308 , respectively, of the Company's consolidated revenues.

During the three and nine month periods ended July 1, 2022, combined net sales to one customer of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $ 20,607 and $ 69,528 , respectively, of the Company's consolidated revenues.

During the three and nine month periods ended July 2, 2021, combined net sales to one customer of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $ 25,138 and $ 88,649 , 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 profit margin.

2 unchanged sentences

A summary of the Company’s operations by business segment is presented below:

Three Months Ended Six Months Ended

April 1, 2022 April 2, 2021 April 1, 2022 April 2, 2021 October 1, 2021

Three Months Ended Nine Months Ended

July 1, 2022 July 2, 2021 July 1, 2022 July 2, 2021 October 1, 2021

Unaffiliated customers $ 136,026 $ 155,098 $ 373,341 $ 441,727

25 unchanged sentences

17 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the three months ended April 1, 2022 were as follows:

The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the Third months ended July 1, 2022 were as follows:

JOHNSON OUTDOORS INC.

5 unchanged sentences

Income (Loss)

Balance at December 31, 2021 $ 7,183 $ ( 204 ) $ 6,979

Other comprehensive income before reclassifications 168 — 168

Balance at April 1, 2022 $ 7,351 $ ( 188 ) $ 7,163

Other comprehensive loss before reclassifications ( 2,770 ) — ( 2,770 )

Amounts reclassified from accumulated other comprehensive income — ( 9 ) ( 9 )

Tax effects — 2 2

Balance at April 1, 2022 $ 7,351 $ ( 188 ) $ 7,163

The changes in AOCI by component, net of tax, for the three months ended April 2, 2021 were as follows:

Balance at July 1, 2022 $ 4,581 $ ( 195 ) $ 4,386

The changes in AOCI by component, net of tax, for the Third months ended July 2, 2021 were as follows:

Adjustment Unamortized

4 unchanged sentences

Income (Loss)

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

Balance at April 2, 2021 $ 8,253 $ ( 2,404 ) $ 5,849

Other comprehensive income before reclassifications 742 — 742

1 unchanged sentence

Tax effects — ( 41 ) ( 41 )

Balance at April 2, 2021 $ 8,253 $ ( 2,404 ) $ 5,849

The changes in AOCI by component, net of tax, for the six months ended April 1, 2022 were as follows:

Balance at July 2, 2021 $ 8,995 $ ( 2,281 ) $ 6,714

The changes in AOCI by component, net of tax, for the nine months ended July 1, 2022 were as follows:

Adjustment Unamortized

8 unchanged sentences

Tax effects — ( 9 ) ( 9 )

Balance at April 1, 2022 $ 7,351 $ ( 188 ) $ 7,163

The changes in AOCI by component, net of tax, for the six months ended April 2, 2021 were as follows:

Balance at July 1, 2022 $ 4,581 $ ( 195 ) $ 4,386

The changes in AOCI by component, net of tax, for the nine months ended July 2, 2021 were as follows:

Adjustment Unamortized

5 unchanged sentences

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

Other comprehensive loss before reclassifications 930 — 930

Other comprehensive income before reclassifications 1,672 — 1,672

Amounts reclassified from accumulated other comprehensive income — 433 433

Tax effects — ( 108 ) ( 108 )

Balance at April 2, 2021 $ 8,253 $ ( 2,404 ) $ 5,849

The reclassifications out of AOCI for the three and six months ended April 1, 2022 and April 2, 2021 were as follows:

Balance at July 2, 2021 $ 8,995 $ ( 2,281 ) $ 6,714

The reclassifications out of AOCI for the Third and nine months ended July 1, 2022 and July 2, 2021 were as follows:

JOHNSON OUTDOORS INC.

Three Months Ended Six Months Ended

April 1, 2022 April 2, 2021 April 1, 2022 April 2, 2021 Statement of Operations

Three Months Ended Nine Months Ended

July 1, 2022 July 2, 2021 July 1, 2022 July 2, 2021 Statement of Operations

Unamortized loss on defined benefit pension plans:

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The Company determines if an arrangement is a lease at inception.

As of April 1, 2022, the Company had approximately 200 leases, with remaining terms ranging from less than one year to 18 years.

As of July 1, 2022, the Company had approximately 200 leases, with remaining terms ranging from less than one year to 17 years.

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

4 unchanged sentences

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

The components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended April 1, 2022 and April 2, 2021 were as follows:

Three months ended Six months ended

April 1, 2022 April 2, 2021 April 1, 2022 April 2, 2021

The components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended July 1, 2022 and July 2, 2021 were as follows:

Three months ended Nine months ended

July 1, 2022 July 2, 2021 July 1, 2022 July 2, 2021

Operating lease costs $ 2,212 $ 2,107 $ 6,430 $ 6,184

2 unchanged sentences

Total lease cost $ 2,797 $ 2,556 $ 8,062 $ 7,528

Included in the amounts in the table above were rent expense to related parties of $ 290 and $ 581 for the three and six months ended April 1, 2022, respectively, and $ 261 and $ 516 for the three and six months ended April 2, 2021, respectively.

As of April 1, 2022, the Company did not have any finance leases or sublease agreements.

Included in the amounts in the table above were rent expense to related parties of $ 314 and $ 895 for the three and nine months ended July 1, 2022, respectively, and $ 262 and $ 778 for the three and nine months ended July 2, 2021, respectively.

As of July 1, 2022, the Company did not have any finance leases or sublease agreements.

Additionally, the Company does not have any leases in which it is the lessor.

While the Company extended or renewed various existing leases during the quarter, there were no significant new leases entered into during the quarter ended April 1, 2022.

While the Company extended or renewed various existing leases during the quarter, there were no significant new leases entered into during the quarter ended July 1, 2022.

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

JOHNSON OUTDOORS INC.

Six months ended

April 1, 2022 April 2, 2021

Nine months ended

July 1, 2022 July 2, 2021

Operating leases:

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Cash paid for amounts included in the measurement of lease liabilities $ 5,674 $ 5,680

Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at April 1, 2022 were as follows:

Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at July 1, 2022 were as follows:

Year Related parties included

10 unchanged sentences

During the second quarter of fiscal 2021, the Company amended its agreement with the landlord on an existing leased facility.

Payments under the amended agreement are expected to begin in fiscal year 2022 and go through June 2039, and total estimated rental payments, not included in the amounts above, will be approximately $ 14 million over the course of the lease as amended.

As of April 1, 2022, the Company did not have any other additional significant operating lease commitments that have not yet commenced.

During the third quarter of fiscal 2022, the Company took occupancy of part of the space, and began making pro-rated payments under the amended agreement, which are included in the amounts above.

The Company expects to occupy the remaining space in the fourth quarter of fiscal 2022, and total estimated rental payments, not included in the amounts above, will be approximately $ 8 million over the course of the lease as amended, through June 2039.

As of July 1, 2022, the Company did not have any other additional significant operating lease 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