What changed in this filing

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Item 1. Financial Statements

2024-02-02 compared with 2023-08-03 · 155 added, 181 removed, 426 unchanged (44% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended Nine Months Ended

(thousands, except per share data) June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022

Three Months Ended

(thousands, except per share data) December 29, 2023 December 30, 2022

Net sales $ 138,644 $ 178,337

9 unchanged sentences

Interest expense 38 37

Other (income) expense, net ( 1,174 ) 4,669 ( 10,939 ) 6,167

Other income, net ( 4,693 ) ( 1,904 )

Profit before income taxes 5,899 8,166

15 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended Nine Months Ended

(thousands) June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022

Three Months Ended

(thousands) December 29, 2023 December 30, 2022

Net income $ 3,955 $ 5,879

Other comprehensive income (loss):

Other comprehensive income:

Foreign currency translation 3,059 2,937

Unrealized gain (loss) on available-for-sale securities, net of tax ( 126 ) — ( 126 ) —

Unrealized gain on available-for-sale securities, net of tax 102 —

Change in pension plans, net of tax 7 8

Total other comprehensive income (loss) 901 ( 2,777 ) 4,361 ( 3,000 )

Total other comprehensive income 3,168 2,945

Total comprehensive income $ 7,123 $ 8,824

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(thousands, except share data) June 30, 2023 September 30, 2022 July 1, 2022

(thousands, except share data) December 29, 2023 September 29, 2023 December 30, 2022

Current assets:

21 unchanged sentences

Accrued warranty 10,986 11,741 9,698

Income taxes payable — 3,186 5,238

Accrued discounts and returns 9,232 8,176 6,253

25 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

Nine Months Ended June 30, 2023

Three Months Ended December 29, 2023

(thousands except for shares) Shares Common Stock Capital in

10 unchanged sentences

Currency translation adjustment — — — — 3,059 —

Unrealized gain (loss) on available-for-sale securities, net of tax — — — — 102 —

Change in pension plans, net of tax of $ 3

1 unchanged sentence

BALANCE AT DECEMBER 29, 2023 10,284,000 $ 516 $ 88,830 $ 410,182 $ 6,491 $ ( 2,149 )

Net income — — — 14,861 — —

Dividends declared — — — ( 3,161 ) — —

Award of non-vested shares 13,674 — ( 744 ) — — 744

Stock-based compensation — — 971 — — —

Currency translation adjustment — — — — 507 —

Change in pension plans, net of tax of $ 3

BALANCE AT MARCH 31, 2023 10,254,911 $ 514 $ 87,150 $ 417,274 $ 4,080 $ ( 1,611 )

Net income — — — 14,801 — —

Dividends declared — — — ( 3,148 ) — —

Award of non-vested shares 6,670 — 564 — — ( 299 )

Stock-based compensation — — 218 — — —

Currency translation adjustment — — — — 1,018 —

Unrealized gain (loss) on available-for-sale securities, net of tax — — — — ( 126 ) —

Change in pension plans, net of tax — — — — 9 —

Non-vested stock forfeitures ( 10,632 ) — — — — —

BALANCE AT JUNE 30, 2023 10,250,949 $ 514 $ 87,932 $ 428,927 $ 4,981 $ ( 1,910 )

JOHNSON OUTDOORS INC.

Nine Months Ended July 1, 2022

Three Months Ended December 30, 2022

(thousands except for shares) Shares Common Stock Capital in

4 unchanged sentences

Income (Loss) Treasury

BALANCE AT OCTOBER 1, 2021 10,127,200 $ 509 $ 82,899 $ 370,501 $ 7,386 $ ( 2,790 )

BALANCE AT SEPTEMBER 30, 2022 10,192,051 $ 512 $ 87,351 $ 402,821 $ 620 $ ( 3,290 )

Net income — — — 5,879 — —

1 unchanged sentence

Award of non-vested shares 56,799 2 ( 1,381 ) — — 1,379

B to A conversion — — ( 154 ) — — 154

Stock-based compensation — — 953 — — —

3 unchanged sentences

BALANCE AT DECEMBER 30, 2022 10,241,237 $ 514 $ 86,923 $ 405,574 $ 3,565 $ ( 2,355 )

Net income — — — 9,900 — —

Dividends declared — — — ( 3,023 ) — —

Award of non-vested shares 13,493 1 — — — —

Stock-based compensation — — 959 — — —

Currency translation adjustment — — — — 168 —

Change in pension plans, net of tax of $ 6

Non-vested stock forfeitures ( 2,040 ) — 150 — — ( 150 )

Purchase of treasury stock at cost ( 512 ) — — — — ( 48 )

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

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 ) —

Treasury stock adjustment — — — — — 3

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

— — — ( 7 ) —

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

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

(thousands) June 30, 2023 July 1, 2022

Cash paid for taxes Three Months Ended

(thousands) December 29, 2023 December 30, 2022

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES

12 unchanged sentences

Other current assets ( 862 ) ( 1,055 )

Other non-current assets 99 104

Other long-term liabilities 4,474 ( 196 )

1 unchanged sentence

( 33,687 ) ( 17,570 )

CASH USED FOR INVESTING ACTIVITIES

Purchase of investments ( 40,696 ) —

CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES

Proceeds from maturity of short-term investments 7,500 —

Proceeds from sale of productive assets 2,189 —

2 unchanged sentences

CASH USED FOR FINANCING ACTIVITIES

Common stock transactions 761 332

Dividends paid ( 3,347 ) ( 3,126 )

7 unchanged sentences

Supplemental Disclosure:

Non-cash treasury stock activity $ 2,321 $ ( 9 )

Non-cash dividends 25 12

Cash paid for taxes $ 1,093 $ 737

Cash paid for interest 28 28

Non-cash treasury stock activity — 1,379

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

4 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 30, 2023 and July 1, 2022, and their results of operations for the three and nine month periods then ended and cash flows for the nine month periods then ended.

and subsidiaries (collectively, the “Company”) as of December 29, 2023 and December 30, 2022, 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 September 29, 2023 which was filed with the Securities and Exchange Commission on December 8, 2023.

Due to seasonal variations and other factors, some of which are described herein, the results of operations for the three and nine months ended June 30, 2023 are not necessarily indicative of the results to be expected for the Company’s full 2023 fiscal year.

The current economic and business environment, and end consumer purchasing actions stemming therefrom, is beyond our control and remains highly uncertain and cannot be predicted at this time.

Certain reclassifications have been made to prior year financial statements to conform to the current year financial statement presentation.

These reclassifications had no effect on net earnings.

Due to seasonal variations and other factors, some of which are described herein, the results of operations for the three months ended December 29, 2023 are not necessarily indicative of the results to be expected for the Company’s full 2024 fiscal year.

The current economic and business environment, including the level of demand in the consumer markets for outdoor recreation products, seasonality effects, and end consumer purchasing actions, all stemming therefrom, is beyond our control and remains highly uncertain and cannot be predicted at this time.

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

2 ACCOUNTS RECEIVABLE

Accounts receivable are stated net of allowances for doubtful accounts of $ 902 , $ 1,037 and $ 1,208 as of June 30, 2023, September 30, 2022 and July 1, 2022, respectively.

Accounts receivable are stated net of allowances for doubtful accounts of $ 1,108 , $ 907 and $ 1,151 as of December 29, 2023, September 29, 2023 and December 30, 2022, respectively.

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 30, 2023 and July 1, 2022, 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.

JOHNSON OUTDOORS INC.

For the three month periods ended December 29, 2023 and December 30, 2022, 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 30, 2023 and July 1, 2022, 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 64,654 and 38,353 for the three months ended June 30, 2023 and July 1, 2022, respectively, and 64,258 and 38,477 for the nine months ended June 30, 2023 and July 1, 2022, 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 46,501 and 37,152 for the three months ended June 30, 2023 and July 1, 2022, respectively, and 51,813 and 35,413 for the nine months ended June 30, 2023 and July 1, 2022, respectively.

For the three month periods ended December 29, 2023 and December 30, 2022, 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 63,061 and 60,390 for the three months ended December 29, 2023 and December 30, 2022, 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 65,228 and 53,699 for the three months ended December 29, 2023 and December 30, 2022, respectively.

Dividends per share

Dividends per share for the three and nine month periods ended June 30, 2023 and July 1, 2022 were as follows:

Three Months Ended Nine months ended

June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022

Dividends per share for the three month periods ended December 29, 2023 and December 30, 2022 were as follows:

Three Months Ended

December 29, 2023 December 30, 2022

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 2023 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 468,066 shares of the Company’s Class A common stock available for future grant to non-employee directors and key executives at June 30, 2023.

Under the Company’s 2023 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 413,176 shares of the Company’s Class A common stock available for future grant to non-employee directors and key executives at December 29, 2023.

Share awards previously made under the Company's 2012 Non-Employee Director Stock Ownership Plan and its 2010 Long-Term Stock Incentive Plan, which no longer allow for additional share grants, also remain outstanding.

3 unchanged sentences

JOHNSON OUTDOORS INC.

A summary of non-vested stock activity for the nine months ended June 30, 2023 related to the Company’s stock ownership plans is as follows:

A summary of non-vested stock activity for the three months ended December 29, 2023 related to the Company’s stock ownership plans is as follows:

Shares Weighted Average

2 unchanged sentences

Restricted stock vested ( 7,478 ) 63.88

Forfeitures ( 10,632 ) 71.41

Non-vested stock at June 30, 2023 61,242 66.48

Non-vested stock at December 29, 2023 70,600 63.83

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 2,289 and 1,778 during the nine month periods ended June 30, 2023 and July 1, 2022, respectively.

Stock compensation expense, net of forfeitures, related to non-vested stock was $ 172 and $ 335 for the three month periods ended June 30, 2023 and July 1, 2022, respectively, and $ 1,117 and $ 896 for the nine month periods ended June 30, 2023 and July 1, 2022, respectively.

Unrecognized compensation cost related to non-vested stock as of June 30, 2023 was $ 2,395 , which amount will be amortized to expense through December 2026 or adjusted for changes in future estimated or actual forfeitures.

The fair value of restricted stock vested during the nine month periods ended June 30, 2023 and July 1, 2022 was $ 1,029 and $ 1,002 , respectively.

Shares tendered back to the Company were 2,330 and 2,289 during the three month periods ended December 29, 2023 and December 30, 2022, respectively.

Stock compensation expense, net of forfeitures, related to non-vested stock was $ 428 and $ 456 for the three month periods ended December 29, 2023 and December 30, 2022, respectively.

Unrecognized compensation cost related to non-vested stock as of December 29, 2023 was $ 2,385 , which amount will be amortized to expense through December 2027 or adjusted for changes in future estimated or actual forfeitures.

The fair value of restricted stock vested during the three month periods ended December 29, 2023 and December 30, 2022 was $ 409 and $ 429 , respectively.

Restricted Stock Units

2 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 nine months ended June 30, 2023 follows:

A summary of RSU activity for the three months ended December 29, 2023 follows:

Number of RSUs Weighted Average

2 unchanged sentences

RSUs vested ( 17,516 ) 88.49

RSU's forfeited ( 7,492 ) 76.75

RSUs at June 30, 2023 68,244 76.38

Stock compensation expense, net of forfeitures, related to RSUs was $ 28 and $ 636 for the three month periods ended June 30, 2023 and July 1, 2022, respectively, and $ 953 and $ 1,961 for the nine month periods ended June 30, 2023 and July 1, 2022, respectively.

Unrecognized compensation cost related to non-vested RSUs as of June 30, 2023 was $ 1,622 , which amount will be amortized to expense through September 2025 or adjusted for changes in future estimated or actual forfeitures.

RSUs at December 29, 2023 88,782 64.48

Stock compensation expense, net of forfeitures, related to RSUs was $ 139 and $ 476 for the three month periods ended December 29, 2023 and December 30, 2022, respectively.

Unrecognized compensation cost related to non-vested RSUs as of December 29, 2023 was $ 2,054 , which amount will be amortized to expense through September 2026 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 5,324 and 3,311 during the nine month periods ended June 30, 2023 and July 1, 2022, respectively.

Shares tendered back to the Company for this purpose were 2,331 and 5,055 during the three month periods ended December 29, 2023 and December 30, 2022, respectively.

The fair value of restricted stock units recognized as a tax deduction during the three month periods ended December 29, 2023 and December 30, 2022 was $ 1,015 and $ 2,247 , respectively.

JOHNSON OUTDOORS INC.

The fair value of restricted stock units recognized as a tax deduction during the nine month periods ended June 30, 2023 and July 1, 2022 was $ 2,555 and $ 3,240 , 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 30, 2023, the Company issued 5,401 shares of Class A common stock and recognized $ 18 of expense in connection with the Employees' Stock Purchase Plan.

During the nine month period ended June 30, 2023, the Company issued 5,401 shares of Class A common stock and recognized $ 72 of expense in connection with the Plan.

During the three 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 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 Plan.

During the three month period ended December 29, 2023, the Company issued 0 shares of Class A common stock and recognized $ 31 of expense in connection with the Employees' Stock Purchase Plan.

During the three month period ended December 30, 2022, the Company issued 0 shares of Class A common stock and recognized $ 21 of expense in connection with the Plan.

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

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

As of June 30, 2023, the Company had approximately 200 leases, with remaining terms ranging from less than one year to 16 years.

As of December 29, 2023, the Company had approximately 200 leases, with remaining terms ranging from less than one year to 16 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 nine months ended June 30, 2023 and July 1, 2022 were as follows:

Three months ended Nine months ended

June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022

The components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations for the three months ended December 29, 2023 and December 30, 2022 were as follows:

Three months ended

December 29, 2023 December 30, 2022

Operating lease costs $ 2,465 $ 2,430

2 unchanged sentences

Total lease cost $ 3,135 $ 3,000

JOHNSON OUTDOORS INC.

Included in the amounts in the table above was rent expense to related parties of $ 314 and $ 942 for the three and nine months ended June 30, 2023, respectively, and $ 314 and $ 895 for the three and nine months ended July 1, 2022, respectively.

As of June 30, 2023, the Company did not have any finance leases or sublease agreements.

Included in the amounts in the table above was rent expense to related parties of $ 314 and $ 314 for the three months ended December 29, 2023 and December 30, 2022, respectively.

As of December 29, 2023, 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 June 30, 2023.

As of June 30, 2023, the Company did not have any significant operating lease commitments that have not yet commenced.

While the Company extended or renewed various existing leases during the quarter, there were no significant new leases entered into during the quarter ended December 29, 2023.

As of December 29, 2023, the Company did not have any significant operating lease commitments that have not

JOHNSON OUTDOORS INC.

yet commenced.

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

Nine months ended

June 30, 2023 July 1, 2022

Three months ended

December 29, 2023 December 30, 2022

Operating leases:

6 unchanged sentences

Cash paid for amounts included in the measurement of lease liabilities $ 2,268 $ 2,149

Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at June 30, 2023 were as follows:

ROU assets obtained in exchange for lease liabilities $ 2,061 $ 1,941

Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at December 29, 2023 were as follows:

Year Related parties included

4 unchanged sentences

2027 226 5,789

2027 226 5,888

Thereafter — 32,580

3 unchanged sentences

6 INCOME TAXES

For the three and nine months ended June 30, 2023 and July 1, 2022, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows:

JOHNSON OUTDOORS INC.

Three Months Ended Nine Months Ended

For the three months ended December 29, 2023 and December 30, 2022, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows:

Three Months Ended

(thousands, except tax rate data)

June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022

December 29, 2023 December 30, 2022

Profit before income taxes $ 5,899 $ 8,166

1 unchanged sentence

Effective income tax rate 33.0 % 28.0 %

The decrease in the effective tax rate for the three months ended June 30, 2023 compared to the three months ended July 1, 2022 is due to the favorable impact from the change in estimate after filing prior year tax returns.

The effective tax rate between the nine month periods ended June 30, 2023 and July 1, 2022 was relatively consistent with no primary factors impacting the rate.

The increase in the effective tax rate for the three months ended December 29, 2023 compared to the three months ended December 30, 2022 was primarily related to a change in the geographic mix of profits or losses from a tax

JOHNSON OUTDOORS INC.

perspective for the current year period, as compared to the prior year period.

The Company's effective tax rate is impacted by valuation allowances in certain tax jurisdictions and, as a result, changes in the geographic source of Company profits or losses between periods can have varying impacts on the Company's effective tax rate during a particular period.

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 30, 2023 and July 1, 2022 were:

June 30, 2023 July 1, 2022

The significant tax jurisdictions that have a valuation allowance for the periods ended December 29, 2023 and December 30, 2022 were:

December 29, 2023 December 30, 2022

Indonesia Indonesia

8 unchanged sentences

2023 September 29,

2023 December 30,

Raw materials $ 120,695 $ 114,467 $ 149,986

2 unchanged sentences

$ 267,321 $ 261,474 $ 251,525

The changes in goodwill during the nine months ended June 30, 2023 and July 1, 2022 were as follows:

June 30, 2023 July 1, 2022

The Company’s inventory levels have been significantly impacted over recent periods in connection with swings in demand for the Company’s products coming out of the recent COVID-19 pandemic.

See below under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional discussion on the impact of recent fluctuations in the Company’s net sales, including changes in demand for the Company’s products, on the Company’s inventory balances.

The changes in goodwill during the three months ended December 29, 2023 and December 30, 2022 were as follows:

December 29, 2023 December 30, 2022

Balance at beginning of period $ 11,172 $ 11,160

6 unchanged sentences

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 30, 2023 and July 1, 2022.

June 30, 2023 July 1, 2022

The following table summarizes the Company’s warranty activity for the three months ended December 29, 2023 and December 30, 2022.

December 29, 2023 December 30, 2022

Balance at beginning of period $ 11,741 $ 9,639

7 unchanged sentences

11 INDEBTEDNESS

The Company had no debt outstanding at June 30, 2023, September 30, 2022, or July 1, 2022.

The Company had no debt outstanding at December 29, 2023, September 29, 2023, or December 30, 2022.

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

4 unchanged sentences

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.

Beginning in the fourth quarter of fiscal 2023, upon adoption of topic 848, the interest rate will be based on the Secured Overnight Financing Rate ("SOFR").

For the first three quarters of fiscal 2023, the interest rate on the Revolver was based on LIBOR plus an applicable margin.

Beginning in the fourth quarter of fiscal 2023, upon adoption of topic 848, the interest rate is based on the Secured Overnight Financing Rate ("SOFR") plus an applicable margin.

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 June 30, 2023 and July 1, 2022 were approximately 6.2 % and 2.8 %, respectively.

The interest rates on the Revolver at both December 29, 2023 and December 30, 2022 were approximately 6.5 % and 5.4 %, 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.

JOHNSON OUTDOORS INC.

Other Borrowings

The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of June 30, 2023 or July 1, 2022.

The Company utilizes letters of credit primarily as security for the payment of future claims under its workers’ compensation insurance, which totaled approximately $ 78 and $ 173 as of June 30, 2023 and July 1, 2022, respectively.

JOHNSON OUTDOORS INC.

The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of December 29, 2023 or December 30, 2022.

The Company utilizes letters of credit primarily as security for the payment of future claims under its workers’ compensation insurance, which totaled approximately $ 67 and $ 173 as of December 29, 2023 and December 30, 2022, 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 13 % of the Company’s revenues for the nine month period ended June 30, 2023 were denominated in currencies other than the U.S.

Approximately 5 % were denominated in euros, approximately 6 % were denominated in Canadian dollars and approximately 1 % were denominated in Hong Kong dollars, with the remaining 1 % of revenues denominated in various other foreign currencies.

Approximately 13 % of the Company’s revenues for the three month period ended December 29, 2023 were denominated in currencies other than the U.S.

Approximately 6 % were denominated in euros, approximately 5 % were denominated in Canadian dollars and approximately 2 % were denominated in Hong Kong dollars, with the remaining revenues denominated in various other foreign currencies.

Changes in foreign currency exchange rates can cause the Company to experience unexpected financial losses or cash flow needs.

2 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 June 30, 2023 and July 1, 2022, the Company held no foreign currency forward contracts.

As of December 29, 2023 and December 30, 2022, the Company held no foreign currency forward contracts.

13 FAIR VALUE MEASUREMENTS

8 unchanged sentences

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, accounts receivable, and accounts payable approximated their fair values at June 30, 2023, September 30, 2022 and July 1, 2022 due to the short term maturities of these instruments.

The carrying amounts of cash, cash equivalents, accounts receivable, and accounts payable approximated their fair values at December 29, 2023, September 29, 2023 and December 30, 2022 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.

Valuation Techniques

Rabbi Trust Assets

JOHNSON OUTDOORS INC.

Rabbi Trust Assets

Rabbi trust assets are classified as trading securities and are comprised of marketable debt and equity securities that are marked to fair value based on unadjusted quoted prices in active markets.

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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 June 30, 2023:

The following table summarizes the Company’s financial assets measured at fair value as of December 29, 2023:

Level 1 Level 2 Level 3 Total

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Rabbi trust assets $ 24,562 $ — $ — $ 24,562

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

The following table summarizes the Company’s financial assets measured at fair value as of December 30, 2022:

Level 1 Level 2 Level 3 Total

Rabbi trust assets $ 22,684 $ — $ — $ 22,684

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 30, 2023 and July 1, 2022 was:

Three Months Ended Nine months ended

Location of income recognized in Statement of Operations June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022

Rabbi trust assets Other (income) expense, net $ ( 1,273 ) $ 3,851 $ ( 3,881 ) $ 4,900

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 30, 2023 or July 1, 2022.

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 December 29, 2023 and December 30, 2022 was:

Three Months Ended

Location of income recognized in Statement of Operations December 29, 2023 December 30, 2022

Rabbi trust assets Other income, net $ 2,672 $ 1,383

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 December 29, 2023 or December 30, 2022.

14 CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

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The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at estimated fair value, with unrealized gains and losses, net of tax, reported as a separate component of stockholders' equity.

At June 30, 2023, cost for marketable securities was determined using the specific identification method.

A summary of the amortized costs and fair values of the Company’s marketable securities at the end of the period presented is shown in the following table.

All of the Company’s marketable securities are classified as Level 2, as defined by

At December 29, 2023, cost for marketable securities was determined using the specific identification method.

A summary of the amortized costs and fair values of the Company’s marketable securities at the end of the period

JOHNSON OUTDOORS INC.

FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable.

The following table summarizes the Company’s marketable securities measured at fair value as of June 30, 2023:

presented is shown in the following table.

All of the Company’s marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable.

The following table summarizes the Company’s marketable securities measured at fair value as of December 29, 2023:

Amortized Cost Fair Value Gross unrealized gains Gross unrealized losses

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Total $ 33,788 $ 33,762 $ 6 $ 32

There were no maturities or sales of available-for-sale securities for the three month periods ended June 30, 2023 and July 1, 2022, respectively.

The following table summarizes the Company’s marketable securities measured at fair value as of September 29, 2023:

Amortized Cost Fair Value Gross unrealized gains Gross unrealized losses

Fixed rate US Government Bonds $ 29,749 $ 29,686 $ — $ 63

Fixed rate Canadian Government Bonds $ 11,121 $ 11,021 $ — $ 100

Total $ 40,870 $ 40,707 $ — $ 163

Proceeds from the maturities of available for sale securities were $ 7,500 and $ 0 for the three month periods ended December 29, 2023 and December 30, 2022, respectively.

There were no sales or purchases of available-for-sale securities for the three month periods ended December 29, 2023 and December 30, 2022, respectively.

No unrealized gains or losses were reclassified out of accumulated other comprehensive income during the same periods.

The contractual maturities of the marketable securities held at June 30, 2023 are as follows:

$ 26,651 within one year and $ 14,045 beyond one year to five years .

The contractual maturities of the marketable securities held at December 29, 2023 are as follows:

$ 29,094 within one year, classified as Short-Term Investments on the Condensed Consolidated Balance Sheets, and $ 4,668 greater than one year, but less than five years, classified as Investments on the Condensed Consolidated Balance Sheets.

15 NEW ACCOUNTING PRONOUNCEMENTS

Recently issued accounting pronouncements

In December 2023, the Financial Account Standards Board (FASB), issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures .

ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures.

The amendments in this ASU are effective for the Company in fiscal 2026 on a prospective basis, with early adoption permitted.

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

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

ASU 2023-07 is intended to improve the disclosures about a public entity's reportable segments and address requests from investors for additional, more detailed information about a reportable segment's expenses.

The amendments in this ASU are effective in fiscal 2025, on a retrospective basis, with early adoption permitted.

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

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements:

Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.

This ASU covers a variety of codification topics, and the effective date for each amendment will be the date on which the SEC‘s removal of that related disclosure from

JOHNSON OUTDOORS INC.

Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited.

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

Recently adopted accounting pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848).

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Subsequently in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848)—Deferral of the Sunset Date of Topic 848, which delayed the effective date to December 31, 2024.

The Company plans to adopt Topic 848 in the fourth fiscal quarter of 2023, and does not expect this guidance to have a significant impact on its financial statements and disclosures.

The Company adopted Topic 848 in the fourth fiscal quarter of 2023.

The adoption of this pronouncement did not have a material impact on its financial statements and disclosures.

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

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The Company expenses incremental costs of obtaining a contract due to the short-term nature of the contracts.

JOHNSON OUTDOORS INC.

Estimated costs of returns, allowances and discounts, based on historic experience, are accrued as a reduction to sales when revenue is recognized.

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

At June 30, 2023, the right to returns asset was $ 892 and the accrued returns liability was $ 2,263 .

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

At December 29, 2023, the right to returns asset was $ 1,108 and the accrued returns liability was $ 2,723 .

At December 30, 2022, the right to returns asset was $ 834 and the accrued returns liability was $ 2,317 .

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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The Company conducts its worldwide operations through separate business segments, each of which represents major product lines.

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 period ended June 30, 2023, combined net sales to one customer of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $ 26,040 and $ 83,948 , 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.

Operations are conducted in the United States and various foreign countries, primarily in Europe,

JOHNSON OUTDOORS INC.

Canada and the Pacific Basin.

During the three month period ended December 29, 2023, combined net sales to two customers of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $ 54,147 of the Company's consolidated revenues.

During the three month period ended December 30, 2022, combined net sales to two customers of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $ 50,062 of the Company's consolidated revenues.

During the second quarter of fiscal 2023, the Company sold the Military and Commercial Tent product lines of its Camping segment to a third party in an asset sale.

The sale did not include the Eureka!

brand name or the Eureka!

consumer/recreational Camping business line.

Subsequently, during the fourth quarter of fiscal 2023, the Company developed and approved plans to fully exit the Eureka!

brand of the Camping segment, which includes liquidating all remaining consumer inventory of Eureka!

branded products and winding down operations.

The Company incurred expenses of approximately $ 4,800 in the fourth quarter of fiscal 2023 related to the wind down of the Eureka!

branded business.

Other costs incurred during fiscal 2024 will be expensed as incurred and are not expected to be material.

During the first quarter of fiscal 2024, the Fishing segment of the Company sold a building, which resulted in a gain of approximately $ 1,900 , which was recorded in Other income, net in the accompanying Condensed Consolidated Statements of Operations.

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.

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

Three Months Ended Nine Months Ended

June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 September 30, 2022

Three Months Ended

December 29, 2023 December 30, 2022 September 29, 2023

Unaffiliated customers $ 110,361 $ 137,821

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Other / Corporate ( 9,185 ) ( 10,451 )

$ 17,443 $ 23,799 $ 34,305 $ 52,988

Total assets (end of period):

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$ 692,683 $ 689,096 $ 681,606

During the second fiscal quarter of 2023, the Company sold the Military and Commercial Tent product lines of its Camping business segment to a third party in an asset sale for a purchase price of $ 14,990 .

The net book value of the assets and liabilities sold was approximately $ 8,350 , resulting in a gain on sale of approximately $ 6,640 , which is recorded in Other (income) expense, net in the Company’s accompanying Condensed Consolidated Statements of Operations.

The purchase price and the net proceeds received by the Company related to this sale were subject to customary purchase price adjustment provisions and Company indemnity obligations set forth in the definitive purchase agreement.

Accordingly, during the third fiscal quarter of 2023, a working capital true-up was recorded, which reduced the purchase price and the final net gain to approximately $ 6,560 .

The sale did not include the Eureka!

brand name or the Eureka!

consumer/recreational Camping business line.

18 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the nine months ended June 30, 2023 were as follows:

The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the three months ended December 29, 2023 were as follows:

JOHNSON OUTDOORS INC.

Adjustment Unamortized

Adjustment Unrealized gain (loss) on available-for sale securities Unamortized

Loss on Defined

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Balance at December 29, 2023 $ 6,640 $ ( 19 ) $ ( 130 ) $ 6,491

Other comprehensive loss before reclassifications 507 — 507

Amounts reclassified from accumulated other comprehensive income — 11 11

Tax effects — ( 3 ) ( 3 )

Balance at March 31, 2023 $ 4,235 $ ( 155 ) $ 4,080

Other comprehensive loss before reclassifications 892 — 892

Amounts reclassified from accumulated other comprehensive income — 12 12

Tax effects — ( 3 ) ( 3 )

Balance at June 30, 2023 $ 5,127 $ ( 146 ) $ 4,981

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

The changes in AOCI by component, net of tax, for the three months ended December 30, 2022 were as follows:

Adjustment Unamortized

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Income (Loss)

October 1, 2021 $ 7,606 $ ( 220 ) $ 7,386

September 30, 2022 $ 791 $ ( 171 ) $ 620

Other comprehensive income before reclassifications 2,937 — 2,937

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Balance at December 30, 2022 $ 3,728 $ ( 163 ) $ 3,565

Other comprehensive income before reclassifications 168 — 168

Amounts reclassified from accumulated other comprehensive income — 22 22

Tax effects — ( 6 ) ( 6 )

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

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

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

Tax effects — 2 2

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

The reclassifications out of AOCI for the three and nine months ended June 30, 2023 and July 1, 2022 were as follows:

JOHNSON OUTDOORS INC.

Three Months Ended Nine Months Ended

June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Statement of Operations

The reclassifications out of AOCI for the three months ended December 29, 2023 and December 30, 2022 were as follows:

Three Months Ended

December 29, 2023 December 30, 2022 Statement of Operations

Unamortized loss on defined benefit pension plans:

3 unchanged sentences

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