What changed in this filing

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Item 1. Financial Statements

2024-08-05 compared with 2024-05-03 · 146 added, 108 removed, 513 unchanged (33% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended Six Months Ended

(thousands, except per share data) March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

Three Months Ended Nine Months Ended

(thousands, except per share data) June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

Net sales $ 172,472 $ 187,047 $ 486,972 $ 567,499

11 unchanged sentences

Profit before income taxes 907 19,822 9,818 47,936

Income tax expense 856 5,087 2,800 7,374

Income tax (benefit) expense ( 715 ) 5,021 2,085 12,395

Net income $ 1,622 $ 14,801 $ 7,733 $ 35,541

13 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended Six Months Ended

(thousands) March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

Three Months Ended Nine Months Ended

(thousands) June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

Net income $ 1,622 $ 14,801 $ 7,733 $ 35,541

1 unchanged sentence

Foreign currency translation ( 439 ) 1,018 241 4,462

Unrealized (loss) gain on available-for-sale securities, net of tax ( 18 ) — 84 —

Unrealized gain (loss) on available-for-sale securities, net of tax 14 ( 126 ) 98 ( 126 )

Change in pension plans, net of tax 6 9 21 25

Total other comprehensive income 2,369 515 779 3,460

Total other comprehensive (loss) income ( 419 ) 901 360 4,361

Total comprehensive income $ 1,203 $ 15,702 $ 8,093 $ 39,902

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(thousands, except share data) March 29, 2024 September 29, 2023 March 31, 2023

(thousands, except share data) June 28, 2024 September 29, 2023 June 30, 2023

Current assets:

48 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

Six Months Ended March 29, 2024

Nine Months Ended June 28, 2024

(thousands except for shares) Shares Common Stock Capital in

23 unchanged sentences

BALANCE AT MARCH 29, 2024 10,301,342 $ 517 $ 88,990 $ 408,970 $ 4,102 $ ( 2,490 )

Six Months Ended March 31, 2023

Net income — — — 1,622 — —

Dividends declared — — — ( 3,369 ) — —

Issuance of stock under employee stock purchase plan 4,937 — 172 — — —

Stock-based compensation — — 574 — — —

Currency translation adjustment — — — — ( 439 ) —

Unrealized gain (loss) on available-for-sale securities, net of tax — — — — 14 —

Change in pension plans, net of tax — — — — 6 —

Non-vested stock forfeitures ( 1,887 ) — 110 — — ( 110 )

BALANCE AT JUNE 28, 2024 10,304,392 $ 517 $ 89,846 $ 407,223 $ 3,683 $ ( 2,600 )

JOHNSON OUTDOORS INC.

Nine Months Ended June 30, 2023

(thousands except for shares) Shares Common Stock Capital in

20 unchanged sentences

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 ) — —

Issuance of stock under employee stock purchase plan 6,670 — 564 — — ( 299 )

Stock-based compensation — — 218 — — —

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

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

Currency translation adjustment — — — — 1,018 —

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

Change in pension plans, net of tax of $ 3

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

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) March 29, 2024 March 31, 2023

CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES

Nine Months Ended

(thousands) June 28, 2024 June 30, 2023

CASH PROVIDED BY OPERATING ACTIVITIES

Net income $ 7,733 $ 35,541

16 unchanged sentences

CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES

Purchase of investments ( 2,220 ) ( 40,696 )

Proceeds from maturity of short-term investments 19,650 —

1 unchanged sentence

Capital expenditures ( 16,449 ) ( 19,427 )

3,225 ( 45,133 )

CASH USED FOR FINANCING ACTIVITIES

Common stock transactions 172 761

Dividends paid ( 10,067 ) ( 9,411 )

2 unchanged sentences

Effect of foreign currency rate changes on cash ( 19 ) 2,307

Decrease in cash and cash equivalents ( 51,498 ) ( 22,155 )

Increase (Decrease) in cash and cash equivalents 14,969 ( 7,207 )

CASH AND CASH EQUIVALENTS

12 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 March 29, 2024 and March 31, 2023, 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 June 28, 2024 and June 30, 2023, and their results of operations for the three and nine month periods then ended and cash flows for the nine month periods then ended.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 29, 2023 which was filed with the Securities and Exchange Commission on December 8, 2023.

1 unchanged sentence

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 and six months ended March 29, 2024 are not necessarily indicative of the results to be expected for the Company’s full 2024 fiscal year.

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 28, 2024 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, enhancements or changes in competitor product offerings, and end consumer purchasing actions, all stemming therefrom, is beyond our control and remains highly uncertain and cannot be predicted at this time.

1 unchanged sentence

2 ACCOUNTS RECEIVABLE

Accounts receivable are stated net of allowances for doubtful accounts of $ 749 , $ 907 and $ 1,121 as of March 29, 2024, September 29, 2023 and March 31, 2023, respectively.

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

Accounts receivable are stated net of allowances for credit losses of $ 649 , $ 907 and $ 902 as of June 28, 2024, September 29, 2023 and June 30, 2023, respectively.

The determination of the allowance for credit losses 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 accounts receivable outstanding for each business segment.

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

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

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

The Company typically does not require collateral on its accounts receivable.

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JOHNSON OUTDOORS INC.

For the three and six month periods ended March 29, 2024, basic net income per share for Class A and Class B shares was the same because there were no cumulative undistributed earnings and basic income per share for Class A and Class B shares has been presented using the two class method described above.

For the three and six month periods ended March 31, 2023, 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 as described above.

For the three and nine month periods ended June 28, 2024, basic net income per share for Class A and Class B shares was the same because there were no cumulative undistributed earnings and basic income per share for Class A and Class B shares has been presented using the two class method described above.

For the three and nine month periods ended June 30, 2023, 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 as 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 or no undistributed income because distributions through dividends exceed net income, 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 March 29, 2024, the effect of non-vested restricted stock units is excluded from the diluted income per share calculation as their inclusion would have been anti-dilutive.

For the three and six month periods ended March 31, 2023, 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 70,182 and 67,732 for the three months ended March 29, 2024 and March 31, 2023, respectively, and 66,622 and 64,061 for the six months ended March 29, 2024 and March 31, 2023, 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 88,782 and 55,238 for the three months ended March 29, 2024 and March 31, 2023, respectively, and 88,782 and 58,605 for the six months ended March 29, 2024 and March 31, 2023, respectively.

For the three and nine month periods ended June 28, 2024, the effect of non-vested restricted stock units is excluded from the diluted income per share calculation as their inclusion would have been anti-dilutive.

For the three and nine month periods ended June 30, 2023, 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 69,044 and 64,654 for the three months ended June 28, 2024 and June 30, 2023, respectively, and 67,429 and 64,258 for the nine months ended June 28, 2024 and June 30, 2023, 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 71,176 and 46,501 for the three months ended June 28, 2024 and June 30, 2023, respectively, and 71,776 and 51,813 for the nine months ended June 28, 2024 and June 30, 2023, respectively.

Dividends per share

Dividends per share for the three and six month periods ended March 29, 2024 and March 31, 2023 were as follows:

Three Months Ended Six months ended

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

Dividends per share for the three and nine month periods ended June 28, 2024 and June 30, 2023 were as follows:

Three Months Ended Nine months ended

June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

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 402,706 shares of the Company’s Class A common stock available for future grant to non-employee directors and key executives at March 29, 2024.

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 404,593 shares of the Company’s Class A common stock available for future grant to non-employee directors and key executives at June 28, 2024.

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.

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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 March 29, 2024 related to the Company’s stock ownership plans is as follows:

A summary of non-vested stock activity for the nine months ended June 28, 2024 related to the Company’s stock ownership plans is as follows:

Shares Weighted Average

3 unchanged sentences

Forfeitures ( 7,237 ) 62.36

Non-vested stock at March 29, 2024 73,406 59.18

Non-vested stock at June 28, 2024 70,250 59.18

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 2,330 and 2,289 during the six month periods ended March 29, 2024 and March 31, 2023, respectively.

Stock compensation expense, net of forfeitures, related to non-vested stock was $ 322 and $ 489 for the three month periods ended March 29, 2024 and March 31, 2023, respectively, and $ 750 and $ 945 for the six month periods ended March 29, 2024 and March 31, 2023, respectively.

Unrecognized compensation cost related to non-vested stock as of March 29, 2024 was $ 2,605 , 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 six month periods ended March 29, 2024 and March 31, 2023 was $ 919 and $ 1,029 , respectively.

Shares tendered back to the Company were 2,330 and 2,289 during the nine month periods ended June 28, 2024 and June 30, 2023, respectively.

Stock compensation expense, net of forfeitures, related to non-vested stock was $ 398 and $ 172 for the three month periods ended June 28, 2024 and June 30, 2023, respectively, and $ 1,148 and $ 1,117 for the nine month periods ended June 28, 2024 and June 30, 2023, respectively.

Unrecognized compensation cost related to non-vested stock as of June 28, 2024 was $ 2,085 , 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 nine month periods ended June 28, 2024 and June 30, 2023 was $ 964 and $ 1,029 , respectively.

Restricted Stock Units

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

The units are valued at the fair market value of a share of Class A common stock on the date of grant and vest within one year from the date of grant for RSUs granted to directors, subject to satisfaction of applicable performance criteria, and three years from the date of grant for RSUs granted to employees.

The units are valued at the fair market value of a share of Class A common stock on the date of grant and vest within one year from the date of grant for RSUs granted to directors, and subject to satisfaction of applicable performance criteria, three years from the date of grant for RSUs granted to employees.

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 March 29, 2024 follows:

A summary of RSU activity for the nine months ended June 28, 2024 follows:

Number of RSUs Weighted Average

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RSU's forfeited ( 3,452 ) 65.19

RSUs at March 29, 2024 85,330 64.46

For the three and six months ended March 29, 2024, the Company recognized income of $ 579 and $ 440 , respectively, related to RSUs as a result of reversing compensation expense previously recognized during the quarter, due to an

RSUs at June 28, 2024 85,330 64.46

For the three months ended June 28, 2024, the Company recognized expense of $ 201 related to RSUs.

For the nine months ended June 28, 2024, the Company recognized income of $ 239 related to RSUs as a result of reversing

JOHNSON OUTDOORS INC.

expectation that performance conditions won't be met for certain awards.

Stock compensation expense, net of forfeitures, related to RSUs was $ 449 and $ 925 for the three and six month periods ended March 31, 2023, respectively.

Unrecognized compensation cost related to non-vested RSUs as of March 29, 2024 was $ 1,830 , which amount will be amortized to expense through September 2026 or adjusted for changes in future estimated or actual forfeitures.

compensation expense previously recognized, due to an expectation that performance conditions won't be met for certain awards.

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

Unrecognized compensation cost related to non-vested RSUs as of June 28, 2024 was $ 1,634 , 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 2,331 and 5,324 during the six month periods ended March 29, 2024 and March 31, 2023, respectively.

The fair value of restricted stock units recognized as a tax deduction during the six month periods ended March 29, 2024 and March 31, 2023 was $ 1,015 and $ 2,555 , respectively.

Shares tendered back to the Company for this purpose were 2,331 and 5,324 during the nine month periods ended June 28, 2024 and June 30, 2023, respectively.

The fair value of restricted stock units recognized as a tax deduction during the nine month periods ended June 28, 2024 and June 30, 2023 was $ 1,171 and $ 2,555 , 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.

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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 March 29, 2024, the Company issued 0 shares of Class A common stock and recognized $ 77 of expense in connection with the Employees' Stock Purchase Plan.

During the six month period ended March 29, 2024, the Company issued 0 shares of Class A common stock and recognized $ 108 of expense in connection with the Employees' Stock Purchase Plan.

During the three month period ended March 31, 2023, the Company issued 0 shares of Class A common stock and recognized $ 33 of expense in connection with the Plan.

During the six month period ended March 31, 2023, the Company issued 0 shares of Class A common stock and recognized $ 54 of expense in connection with the Plan.

During the three month period ended June 28, 2024, the Company issued 4,937 shares of Class A common stock and recognized $ 25 of income in connection with the Employees' Stock Purchase Plan.

During the nine month period ended June 28, 2024, the Company issued 4,937 shares of Class A common stock and recognized $ 83 of expense in connection with the Employees' Stock Purchase Plan.

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 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.

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 March 29, 2024, the Company had approximately 200 leases, with remaining terms ranging from less than one year to 16 years.

As of June 28, 2024, the Company had approximately 150 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).

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

The components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended March 29, 2024 and March 31, 2023 were as follows:

The components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended June 28, 2024 and June 30, 2023 were as follows:

JOHNSON OUTDOORS INC.

Three months ended Six months ended

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

Three months ended Nine months ended

June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

Operating lease costs $ 2,470 $ 2,541 $ 7,411 $ 7,480

2 unchanged sentences

Total lease cost $ 3,115 $ 3,195 $ 9,368 $ 9,346

Included in the amounts in the table above was rent expense to related parties of $ 313 and $ 627 for the three and six months ended March 29, 2024, respectively, and $ 314 and $ 628 for the three and six months ended March 31, 2023, respectively.

As of March 29, 2024, 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 $ 941 for the three and nine months ended June 28, 2024, respectively, and $ 314 and $ 942 for the three and nine months ended June 30, 2023, respectively.

As of June 28, 2024, 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 March 29, 2024.

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 28, 2024.

During the second quarter of fiscal 2024, the Company entered into an agreement to obtain additional space at an existing lease site that will begin in fiscal 2025 and will result in additional estimated lease payments of approximately $ 2,000 over the remaining lease term, which are not included in the future minimum rental commitments below.

As of March 29, 2024, the Company did not have any other significant operating lease commitments that have not yet commenced.

As of June 28, 2024, the Company did not have any other significant operating lease commitments that have not yet commenced.

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

Six months ended

March 29, 2024 March 31, 2023

Nine months ended

June 28, 2024 June 30, 2023

Operating leases:

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ROU assets obtained in exchange for lease liabilities $ 3,497 $ 3,421

Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at March 29, 2024 were as follows:

Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at June 28, 2024 were as follows:

JOHNSON OUTDOORS INC.

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6 INCOME TAXES

For the three and six months ended March 29, 2024 and March 31, 2023, 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 June 28, 2024 and June 30, 2023, 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)

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

Profit before income taxes $ 907 $ 19,822 $ 9,818 $ 47,936

Income tax expense 856 5,087 2,800 7,374

Income tax (benefit) expense ( 715 ) 5,021 2,085 12,395

Effective income tax rate ( 78.8 ) % 25.3 % 21.2 % 25.9 %

The increase in the effective tax rate for the three and six months ended March 29, 2024 compared to the three and six months ended March 31, 2023 was primarily related to a change in the geographic mix of profits or losses from a tax 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 decrease in the effective tax rate for the three and nine months ended June 28, 2024 compared to the three and nine months ended June 30, 2023 was primarily related to a change in the geographic mix of profits or losses from a tax 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 foreign tax jurisdictions and, as a result, changes in the geographic source of Company profits or losses between periods can, in certain instances, 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 March 29, 2024 and March 31, 2023 were:

March 29, 2024 March 31, 2023

The significant tax jurisdictions that have a valuation allowance for the periods ended June 28, 2024 and June 30, 2023 were:

June 28, 2024 June 30, 2023

Indonesia Indonesia

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2024 September 29,

2023 March 31,

2023 June 30,

Raw materials $ 107,384 $ 114,467 $ 107,899

1 unchanged sentence

$ 223,160 $ 261,474 $ 235,069

The Company’s inventory levels have been significantly impacted over recent periods in connection with swings in demand for the Company’s products and supply chain availability of certain materials and components 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 six months ended March 29, 2024 and March 31, 2023 were as follows:

March 29, 2024 March 31, 2023

The changes in goodwill during the nine months ended June 28, 2024 and June 30, 2023 were as follows:

June 28, 2024 June 30, 2023

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

5 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 six months ended March 29, 2024 and March 31, 2023.

March 29, 2024 March 31, 2023

The following table summarizes the Company’s warranty activity for the nine months ended June 28, 2024 and June 30, 2023.

June 28, 2024 June 30, 2023

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

8 unchanged sentences

11 INDEBTEDNESS

The Company had no debt outstanding at March 29, 2024, September 29, 2023, or March 31, 2023.

The Company had no debt outstanding at June 28, 2024, September 29, 2023, or June 30, 2023.

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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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 March 29, 2024 and March 31, 2023 were approximately 6.5 % and 5.9 %, respectively.

The interest rates on the Revolver at both June 28, 2024 and June 30, 2023 were approximately 6.5 % and 6.2 %, respectively.

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

Other Borrowings

The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of March 29, 2024 or March 31, 2023.

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 March 29, 2024 and March 31, 2023, respectively.

The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of June 28, 2024 or June 30, 2023.

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 $ 78 as of June 28, 2024 and June 30, 2023, respectively.

12 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

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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 March 29, 2024 were denominated in currencies other than the U.S.

Approximately 13 % of the Company’s revenues for the nine month period ended June 28, 2024 were denominated in currencies other than the U.S.

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

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rates on financial instruments and known commitments, including commitments for inventory purchases, denominated in foreign currencies.

As of March 29, 2024 and March 31, 2023, the Company held no foreign currency forward contracts.

As of June 28, 2024 and June 30, 2023, 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 accounts receivable and accounts payable approximated their fair values at March 29, 2024, September 29, 2023 and March 31, 2023 due to the short term maturities of these instruments.

The carrying amounts of accounts receivable and accounts payable approximated their fair values at June 28, 2024, September 29, 2023 and June 30, 2023 due to the short term maturities of these instruments.

See Note 14 for discussion of fair value of cash and cash equivalents.

9 unchanged sentences

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 March 29, 2024:

The following table summarizes the Company’s financial assets measured at fair value as of June 28, 2024:

Level 1 Level 2 Level 3 Total

4 unchanged sentences

JOHNSON OUTDOORS INC.

The following table summarizes the Company’s financial assets measured at fair value as of March 31, 2023:

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

Level 1 Level 2 Level 3 Total

Rabbi trust assets $ 25,304 $ — $ — $ 25,304

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 March 29, 2024 and March 31, 2023 was:

Three Months Ended Six months ended

Location of income recognized in Statement of Operations March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

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 28, 2024 and June 30, 2023 was:

Three Months Ended Nine months ended

Location of income recognized in Statement of Operations June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

Rabbi trust assets Other income, net $ 403 $ 1,273 $ 5,175 $ 3,881

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 March 29, 2024 or March 31, 2023.

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 28, 2024 or June 30, 2023.

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 accumulated other comprehensive income in the Condensed Consolidated Statements of Shareholders' Equity.

At March 29, 2024, cost for marketable securities was determined using the specific identification method.

At June 28, 2024, 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 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 March 29, 2024:

The following table summarizes the Company’s marketable securities measured at fair value as of June 28, 2024:

Amortized Cost Fair Value Gross unrealized gains Gross unrealized losses

8 unchanged sentences

Total $ 40,870 $ 40,707 $ — $ 163

Proceeds from the maturities of available for sale securities were $ 15,000 and $ 0 for the six month periods ended March 29, 2024 and March 31, 2023, respectively.

There were no sales or purchases of available-for-sale securities for the six month periods ended March 29, 2024 and March 31, 2023, respectively.

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

Amortized Cost Fair Value Gross unrealized gains Gross unrealized losses

Fixed rate US Government Bonds $ 29,614 $ 29,526 $ — $ 87

Fixed rate Canadian Government Bonds 11,251 11,170 — 82

Total $ 40,865 $ 40,696 $ — $ 169

Proceeds from the maturities of available for sale securities were $ 19,650 and $ 0 for the nine month periods ended June 28, 2024 and June 30, 2023, respectively.

During the third quarter of fiscal 2024, $ 2,220 of investments were purchased with proceeds from maturities.

There were no other sales or purchases of available-for-sale securities for the nine month periods ended June 28, 2024 or June 30, 2023.

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

The future contractual maturities of the marketable securities held at March 29, 2024 are as follows:

The future contractual maturities of the marketable securities held at June 28, 2024 are as follows:

$ 21,546 within one year, classified as Short-Term Investments on the Condensed Consolidated Balance Sheets, and $ 2,237 greater than one year, but less than five years, classified as Investments on the Condensed Consolidated Balance Sheets.

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

JOHNSON OUTDOORS INC.

Recently adopted accounting pronouncements

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

JOHNSON OUTDOORS INC.

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

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

At March 29, 2024, the right to returns asset was $ 1,266 and the accrued returns liability was $ 3,362 .

At March 31, 2023, the right to returns asset was $ 897 and the accrued returns liability was $ 2,401 .

At June 28, 2024, the right to returns asset was $ 1,195 and the accrued returns liability was $ 2,981 .

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

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

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

JOHNSON OUTDOORS INC.

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.

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

JOHNSON OUTDOORS INC.

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

Three Months Ended Six Months Ended

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 September 29, 2023

Three Months Ended Nine Months Ended

June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 September 29, 2023

Unaffiliated customers $ 130,415 $ 137,161 $ 379,242 $ 429,991

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Other Segment Information

During the three and six month period ended March 29, 2024, two customers of the Company's Fishing, Camping and Watercraft Recreation segments each accounted for more than 10% of the Company's consolidated revenues, which amounted to combined net sales of approximately $ 54,746 and $ 108,893 , respectively.

During the three and six month periods ended March 31, 2023, combined net sales to three customers of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $ 76,679 and $ 140,089 , respectively, of the Company's consolidated revenues.

During the three and nine month periods ended June 28, 2024, two customers of the Company's Fishing, Camping and Watercraft Recreation segments each accounted for more than 10% of the Company's consolidated revenues, which amounted to combined net sales of approximately $ 41,273 and $ 150,166 , respectively.

During the three and nine month periods 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.

JOHNSON OUTDOORS INC.

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.

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branded business.

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

JOHNSON OUTDOORS INC.

Other costs incurred during fiscal 2024 will be expensed as incurred.

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.

18 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the six months ended March 29, 2024 were as follows:

The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the nine months ended June 28, 2024 were as follows:

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

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Balance at March 29, 2024 $ 4,261 $ ( 37 ) $ ( 122 ) $ 4,102

The changes in AOCI by component, net of tax, for the six months ended March 31, 2023 were as follows:

Other comprehensive loss before reclassifications ( 439 ) 20 — ( 419 )

Amounts reclassified from accumulated other comprehensive income — — 9 9

Tax effects — (6) ( 3 ) ( 9 )

Balance at June 28, 2024 $ 3,822 $ (23) $ ( 116 ) $ 3,683

The changes in AOCI by component, net of tax, for the nine months ended June 30, 2023 were as follows:

JOHNSON OUTDOORS INC.

Adjustment Unamortized

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

The reclassifications out of AOCI for the three and six months ended March 29, 2024 and March 31, 2023 were as follows:

JOHNSON OUTDOORS INC.

Three Months Ended Six Months Ended

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Statement of Operations

Other comprehensive income 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 reclassifications out of AOCI for the three and nine months ended June 28, 2024 and June 30, 2023 were as follows:

Three Months Ended Nine Months Ended

June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 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