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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

☒  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2024

OR

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission file number 0-16255

JOHNSON OUTDOORS INC.
(Exact name of Registrant as specified in its charter)
 
Wisconsin 39-1536083
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

555 Main Street, Racine, Wisconsin 53403
(Address of principal executive offices)

(262) 631-6600
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Class A Common Stock, $.05 par value per shareJOUT
NASDAQ Global Select MarketSM

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒   No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☒   No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act: Large accelerated filer ☐Accelerated filer ☒Non-accelerated filer ☐Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒

As of July 26, 2024, 9,096,632 shares of Class A and 1,207,760 shares of Class B common stock of the Registrant were outstanding. 


JOHNSON OUTDOORS INC.


IndexPage No.
  
PART IFINANCIAL INFORMATION 
   
 Item 1.Financial Statements
   
  
- 1
   
  
- 2
   
  
- 3
   
- 4
  
- 6
   
  
- 7
   
 Item 2.
- 21
   
 Item 3.
- 27
   
 Item 4.
- 27
   
PART IIOTHER INFORMATION
  
 Item 1.
- 27
   
 Item 1A.
- 27
   
Item 5.
 - 27
 Item 6.
- 28
   
  
- 28
   
  
- 29


JOHNSON OUTDOORS INC.
PART I      FINANCIAL INFORMATION
Item 1.     Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

 Three Months EndedNine Months Ended
(thousands, except per share data)June 28, 2024June 30, 2023June 28, 2024June 30, 2023
Net sales$172,472 $187,047 $486,972 $567,499 
Cost of sales110,650 109,460 310,865 351,798 
Gross profit61,822 77,587 176,107 215,701 
Operating expenses:    
Marketing and selling41,109 39,504 111,040 113,585 
Administrative management, finance and information systems13,935 12,638 42,302 43,944 
Research and development7,284 8,002 23,478 23,867 
Total operating expenses62,328 60,144 176,820 181,396 
Operating (loss) profit(506)17,443 (713)34,305 
Interest income(1,123)(1,244)(3,178)(2,806)
Interest expense37 39 115 114 
Other income, net(327)(1,174)(7,468)(10,939)
Profit before income taxes907 19,822 9,818 47,936 
Income tax (benefit) expense(715)5,021 2,085 12,395 
Net income$1,622 $14,801 $7,733 $35,541 
Weighted average common shares - Basic:  
Class A9,024 8,980 9,007 8,963 
Class B1,208 1,208 1,208 1,208 
Participating securities17 22 17 16 
Weighted average common shares - Dilutive10,249 10,210 10,232 10,187 
Net income per common share - Basic:  
Class A$0.16 $1.46 $0.75 $3.51 
Class B$0.16 $1.33 $0.75 $3.19 
Net income per common share - Diluted: 
Class A$0.16 $1.44 $0.75 $3.47 
Class B$0.16 $1.44 $0.75 $3.47 

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

- 1 -

JOHNSON OUTDOORS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
 
 Three Months EndedNine Months Ended
(thousands)June 28, 2024June 30, 2023June 28, 2024June 30, 2023
Net income$1,622 $14,801 $7,733 $35,541 
Other comprehensive income (loss):  
 Foreign currency translation (439)1,018 241 4,462 
Unrealized gain (loss) on available-for-sale securities, net of tax14 (126)98 (126)
Change in pension plans, net of tax6 9 21 25 
Total other comprehensive (loss) income(419)901 360 4,361 
Total comprehensive income$1,203 $15,702 $8,093 $39,902 

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

- 2 -

JOHNSON OUTDOORS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(thousands, except share data)June 28, 2024September 29, 2023June 30, 2023
ASSETS   
Current assets:   
Cash and cash equivalents$126,823 $111,854 $122,596 
Short term investments21,546 26,764 26,651 
Accounts receivable, net79,593 43,159 94,644 
Inventories223,160 261,474 235,069 
Other current assets9,883 15,405 6,345 
Total current assets461,005 458,656 485,305 
Investments2,237 13,943 14,045 
Property, plant and equipment, net of accumulated depreciation of $187,350, $177,426 and $175,820, respectively
95,929 94,353 95,257 
Right of use assets49,017 50,746 53,104 
Deferred income taxes23,021 18,352 11,437 
Goodwill11,160 11,172 11,186 
Other intangible assets, net8,331 8,472 8,444 
Other assets29,125 25,912 26,706 
Total assets$679,825 $681,606 $705,484 
LIABILITIES AND SHAREHOLDERS’ EQUITY   
Current liabilities:   
Accounts payable$43,153 $42,744 $45,728 
Current lease liability7,648 7,009 6,985 
Accrued liabilities:   
Salaries, wages and benefits14,801 16,741 19,616 
Accrued warranty10,932 11,741 12,249 
Accrued discounts and returns7,231 8,176 6,713 
Accrued customer programs4,347 3,774 5,174 
Other11,181 13,821 10,205 
Total current liabilities99,293 104,006 106,670 
Non-current lease liability43,124 45,335 47,691 
Deferred income taxes1,880 1,838 1,928 
Retirement benefits1,588 1,588 1,627 
Deferred compensation liability27,795 24,607 25,314 
Other liabilities7,476 4,495 1,810 
Total liabilities181,156 181,869 185,040 
Shareholders’ equity:   
Common stock:   
Class A shares issued and outstanding: 9,096,632, 9,043,189 and 9,043,151, respectively
456 453 453 
Class B shares issued and outstanding: 1,207,760, 1,207,760 and 1,207,798, respectively
61 61 61 
Capital in excess of par value89,846 88,234 87,932 
Retained earnings407,223 409,574 428,927 
Accumulated other comprehensive income3,683 3,323 4,981 
Treasury stock at cost, shares of Class A common stock: 37,240, 25,342 and 25,380, respectively
(2,600)(1,908)(1,910)
Total shareholders’ equity498,669 499,737 520,444 
Total liabilities and shareholders’ equity$679,825 $681,606 $705,484 

The accompanying notes are an integral part of the condensed consolidated financial statements.
- 3 -

JOHNSON OUTDOORS INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(unaudited)

Nine Months Ended June 28, 2024
(thousands except for shares)SharesCommon StockCapital in
Excess of Par
Value		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury
Stock
BALANCE AT SEPTEMBER 29, 202310,250,949 $514 $88,234 $409,574 $3,323 $(1,908)
Net income— — — 3,955 — — 
Dividends declared— — — (3,347)— — 
Award of non-vested shares37,712 2 (2)— — 
Stock-based compensation— — 598 — — — 
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
— — — — 7 — 
Purchase of treasury stock at cost(4,661)— — — — (241)
BALANCE AT DECEMBER 29, 202310,284,000 $516 $88,830 $410,182 $6,491 $(2,149)
Net income— — — 2,156 — — 
Dividends declared— — — (3,368)— — 
Award of non-vested shares22,692 1 (1)— — 
Stock-based compensation— — (180)— — — 
Currency translation adjustment— — — — (2,379)— 
Unrealized gain (loss) on available-for-sale securities, net of tax— — — — (18)— 
Change in pension plans, net of tax of $2
— — — — 8 — 
Non-vested stock forfeitures(5,350)— 341 — — (341)
BALANCE AT MARCH 29, 202410,301,342 $517 $88,990 $408,970 $4,102 $(2,490)
Net income— — — 1,622 — — 
Dividends declared— — — (3,369)— — 
Issuance of stock under employee stock purchase plan4,937 — 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, 202410,304,392 $517 $89,846 $407,223 $3,683 $(2,600)

- 4 -

JOHNSON OUTDOORS INC.
Nine Months Ended June 30, 2023
(thousands except for shares)SharesCommon StockCapital in
Excess of Par
Value		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury
Stock
BALANCE AT SEPTEMBER 30, 202210,192,051 $512 $87,351 $402,821 $620 $(3,290)
Net income— — — 5,879 — — 
Dividends declared— — — (3,126)— — 
Award of non-vested shares56,799 2 (1,381)— — 1,379 
Stock-based compensation— — 953 — — — 
Currency translation adjustment— — — — 2,937 — 
Change in pension plans, net of tax of $3
— — — — 8 — 
Purchase of treasury stock at cost(7,613)— — — — (444)
BALANCE AT DECEMBER 30, 202210,241,237 $514 $86,923 $405,574 $3,565 $(2,355)
Net income— — — 14,861 — — 
Dividends declared— — — (3,161)— — 
Award of non-vested shares13,674 — (744)— — 744 
Stock-based compensation— — 971 — — — 
Currency translation adjustment— — — — 507 — 
Change in pension plans, net of tax of $3
— — — — 8 — 
BALANCE AT March 31, 202310,254,911 $514 $87,150 $417,274 $4,080 $(1,611)
Net income— — — 14,801 — — 
Dividends declared— — — (3,148)— — 
Issuance of stock under employee stock purchase plan6,670 — 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
— — — 9 — 
BALANCE AT JUNE 30, 202310,250,949 $514 $87,932 $428,927 $4,981 $(1,910)
The accompanying notes are an integral part of the condensed consolidated financial statements.
- 5 -

JOHNSON OUTDOORS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine Months Ended
(thousands)June 28, 2024June 30, 2023
CASH PROVIDED BY OPERATING ACTIVITIES  
Net income$7,733 $35,541 
Adjustments to reconcile net income to net cash used for operating activities:
Depreciation14,548 11,605 
Amortization of intangible assets251 210 
Amortization of deferred financing costs26 26 
Stock based compensation992 2,142 
Gain on disposal of productive assets(1,874)(6,488)
Deferred income taxes(4,663)58 
Change in operating assets and liabilities:
Accounts receivable, net(36,504)(2,804)
Inventories, net38,680 9,129 
Accounts payable and accrued liabilities(5,435)(7,706)
Other current assets5,510 3,519 
Other non-current assets— 99 
Other long-term liabilities2,935 (149)
Other, net(300)28 
 21,899 45,210 
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES  
Purchase of investments(2,220)(40,696)
Proceeds from maturity of short-term investments19,650 — 
Proceeds from sale of productive assets2,244 14,990 
Capital expenditures(16,449)(19,427)
 3,225 (45,133)
CASH USED FOR FINANCING ACTIVITIES  
Common stock transactions172 761 
Dividends paid(10,067)(9,411)
Purchases of treasury stock(241)(941)
 (10,136)(9,591)
Effect of foreign currency rate changes on cash(19)2,307 
Increase (Decrease) in cash and cash equivalents14,969 (7,207)
CASH AND CASH EQUIVALENTS
Beginning of period111,854 129,803 
End of period$126,823 $122,596 
Supplemental Disclosure:  
Cash paid for taxes$2,488 $16,253 
Non-cash dividends17 25 
Cash paid for interest88 86 
Non-cash treasury stock activity451 2,123 

The accompanying notes are an integral part of the condensed consolidated financial statements. 
- 6 -

JOHNSON OUTDOORS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

1    BASIS OF PRESENTATION

The condensed consolidated financial statements included herein are unaudited. 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 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.

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 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.

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 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 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.

3    EARNINGS PER SHARE (“EPS”)

Net income or loss per share of Class A common stock and Class B common stock is computed using the two-class method.  Grants of restricted stock which receive non-forfeitable dividends are classified as participating securities and are required to be included as part of the basic weighted average share calculation under the two-class method.

Holders of Class A common stock are entitled to cash dividends equal to 110% of all dividends declared and paid on each share of Class B common stock. The Company grants shares of unvested restricted stock in the form of Class A shares, which carry the same distribution rights as the Class A common stock described above.  As such, the undistributed earnings for each period are allocated to each class of common stock based on the proportionate share of the amount of cash dividends that each such class is entitled to receive.
 
Basic EPS

Basic net income or loss per share is computed by dividing net income or loss allocated to Class A common stock and Class B common stock by the weighted-average number of shares of Class A common stock and Class B common stock outstanding, respectively.  In periods with cumulative year to date net income and undistributed income, the undistributed income for each period is allocated to each class of common stock based on the proportionate share of the amount of cash dividends that each such class is entitled to receive.  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.

- 7 -

JOHNSON OUTDOORS INC.
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 EPS

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.  Anti-dilutive stock options, units and non-vested stock are excluded from the calculation of diluted EPS.  The computation of diluted net income per share of Class A common stock assumes that Class B common stock is converted into Class A common stock.  Therefore, diluted net income per share is the same for both Class A and Class B common shares.  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 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 nine month periods ended June 28, 2024 and June 30, 2023 were as follows:

 Three Months EndedNine months ended
June 28, 2024June 30, 2023June 28, 2024June 30, 2023
Dividends declared per common share: 
Class A$0.33 $0.31 $0.99 $0.93 
Class B$0.30 $0.28 $0.90 $0.85 


4    STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS

The Company’s current stock ownership plans allow for issuance of stock options to acquire shares of Class A common stock by key executives and non-employee directors. 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 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.
 
Non-vested Stock

- 8 -

JOHNSON OUTDOORS INC.
All shares of non-vested restricted stock awarded by the Company have been granted in the form of shares of Class A common stock at their fair market value on the date of grant and vest within one year from the date of grant for stock granted to directors and four years from the date of grant for stock granted to officers and employees.  The fair value at date of grant is based on the number of shares granted and the average of the Company’s high and low Class A common stock price on the date of grant or, if the Company’s Class A shares did not trade on the date of grant, the average of the Company’s high and low Class A common stock price on the last preceding date on which the Company’s Class A shares traded.

A summary of non-vested stock activity for the nine months ended June 28, 2024 related to the Company’s stock ownership plans is as follows:
 SharesWeighted Average
Grant Price
Non-vested stock at September 29, 202361,242 $66.48 
Non-vested stock grants36,108 49.65 
Restricted stock vested(19,863)63.20 
Forfeitures(7,237)62.36 
Non-vested stock at June 28, 202470,250 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 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, 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 nine months ended June 28, 2024 follows:
 Number of RSUsWeighted Average
Grant Price
RSUs at September 29, 202368,244 $76.38 
RSUs granted38,054 54.20 
RSUs vested(17,516)88.49 
RSU's forfeited(3,452)65.19 
RSUs at June 28, 202485,330 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
- 9 -

JOHNSON OUTDOORS INC.
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 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. Awards are only paid if at least 80% of the target levels are met and maximum payouts are made if 120% or more of target levels are achieved. The payouts for achievement at the threshold levels of performance are equal to 50% of the target award amount. The payouts for achievement at maximum levels of performance are equal to 150% of the target award amount. To the extent earned, awards are issued in shares of Company Class A common stock after the end of the three-year performance period.

Employees’ Stock Purchase Plan

The Company’s shareholders have adopted the Johnson Outdoors Inc. 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 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.

5    LEASES

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 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). Some leases also contain options to extend or terminate the lease. To the extent the Company is reasonably certain to exercise these options, they have been considered in the calculation of the right-of-use ("ROU") assets and lease liabilities. Under current lease agreements, there are no residual value guarantees or restrictive lease covenants. In calculating the ROU assets and lease liabilities, several assumptions and judgments were made by the Company, including whether a contract is or contains a lease under the applicable definition, and the determination of the discount rate, which is assumed to be the incremental borrowing rate. 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 28, 2024 and June 30, 2023 were as follows:

- 10 -

JOHNSON OUTDOORS INC.
Three months endedNine months ended
June 28, 2024June 30, 2023June 28, 2024June 30, 2023
Lease Cost
Operating lease costs$2,470 $2,541 $7,411 $7,480 
Short-term lease costs602 611 1,828 1,738 
Variable lease costs43 43 129 128 
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 $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 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 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:

Nine months ended
June 28, 2024June 30, 2023
Operating leases:
Operating lease ROU assets$49,017 $53,104 
Current operating lease liabilities7,648 6,985 
Non-current operating lease liabilities43,124 47,691 
Total operating lease liabilities$50,772 $54,676 
Weighted average remaining lease term (in years)11.2111.93
Weighted average discount rate3.22 %3.18 %
Cash paid for amounts included in the measurement of lease liabilities$6,884 $6,611 
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 June 28, 2024 were as follows:
- 11 -

JOHNSON OUTDOORS INC.
YearRelated parties included
in total		Total
Remainder of 2024$319 $2,391 
20251,308 9,180 
20261,348 7,471 
2027226 5,771 
2028— 3,817 
Thereafter— 32,575 
Total undiscounted lease payments3,201 61,205 
Less: Imputed interest(61)(10,433)
Total net lease liability$3,140 $50,772 


6    INCOME TAXES

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 EndedNine Months Ended
 
(thousands, except tax rate data)
June 28, 2024June 30, 2023June 28, 2024June 30, 2023
Profit before income taxes$907 $19,822 $9,818 $47,936 
Income tax (benefit) expense(715)5,021 2,085 12,395 
Effective income tax rate(78.8)%25.3 %21.2 %25.9 %
 
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 June 28, 2024 and June 30, 2023 were:
 
June 28, 2024June 30, 2023
IndonesiaIndonesia
SwitzerlandSwitzerland

The Company regularly assesses the adequacy of its provisions for income tax contingencies in accordance with the applicable authoritative guidance on accounting for income taxes.  As a result, the Company may adjust the reserves for unrecognized tax benefits due to the impact of changes in its assumptions or as a result of new facts and developments, such as changes to interpretations of relevant tax law, assessments from taxing authorities, settlements with taxing authorities and lapses of statutes of limitation.  The Company’s 2024 fiscal year tax expense is anticipated to be unchanged related to uncertain income tax positions.

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

The Company values inventory at the lower of cost (determined using the first-in first-out method) or net realizable value. Inventories at the end of the respective periods consisted of the following:

 June 28,
2024		September 29,
2023		June 30,
2023
Raw materials$107,384 $114,467 $107,899 
Finished goods115,776 147,007 127,170 
 $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, especially as a result 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.

8    GOODWILL

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

 June 28, 2024June 30, 2023
Balance at beginning of period$11,172 $11,160 
Amount attributable to movements in foreign currency rates(12)26 
Balance at end of period$11,160 $11,186 

The Company evaluates the carrying value of goodwill for a reporting unit on an annual basis or more frequently when events and circumstances warrant such an evaluation.  In conducting this analysis, the Company uses the income approach to compare the reporting unit's carrying value to its indicated fair value. Fair value is determined primarily by using a discounted cash flow methodology that requires considerable management judgment and long-term assumptions and is considered a Level 3 (unobservable) fair value determination in the fair value hierarchy (see Note 13) below.

9    WARRANTIES
 
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 28, 2024 and June 30, 2023.
 June 28, 2024June 30, 2023
Balance at beginning of period$11,741 $9,639 
Expense accruals for warranties issued during the period6,359 8,991 
Less current period warranty claims paid7,168 6,381 
Balance at end of period$10,932 $12,249 

10    CONTINGENCIES

The Company is subject to various legal actions and proceedings in the normal course of business, including those related to commercial disputes, product liability, intellectual property and regulatory matters. The Company is insured against loss for certain of these matters. Although litigation is subject to many uncertainties and the ultimate exposure with respect to these matters cannot be ascertained, management does not believe the final outcome of any pending litigation will have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company.

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JOHNSON OUTDOORS INC.
11    INDEBTEDNESS

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

Revolver
The Company and certain of its subsidiaries have entered into an unsecured credit facility with PNC Bank National Association and Associated Bank, N.A. ("the Lending Group").  This credit facility consists of a $75 million Revolving Credit Facility among the Company, certain of the Company’s subsidiaries, PNC Bank National Association, as lender and as administrative agent, and the other lender named therein (as amended, the “Credit Agreement” or “Revolver”). The Revolver provides for borrowing of up to an aggregate principal amount not to exceed $75,000 with a $50,000 accordion feature that gives the Company the option to increase the maximum financing availability (i.e., an aggregate borrowing amount of $125,000) subject to the conditions of the Credit Agreement and subject to the approval of the lenders. On July 15, 2021, the Company entered into a First Amendment to this credit facility that extended its expiration date from November 15, 2022, to July 15, 2026. Other key provisions of the credit facility remained as outlined 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).
 
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 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 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

The following disclosures describe the Company’s objectives in using derivative instruments, the business purpose or context for using derivative instruments, and how the Company believes the use of derivative instruments helps achieve the stated objectives.  In addition, the following disclosures describe the effects of the Company’s use of derivative instruments and hedging activities on its financial statements.
 
Foreign Exchange Risk
The Company has significant foreign operations, for which the functional currencies are denominated primarily in euros, Swiss francs, Hong Kong dollars and Canadian dollars. As the values of the currencies of the foreign countries in which the Company has operations increase or decrease relative to the U.S. 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 28, 2024 were denominated in currencies other than the U.S. dollar. 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. Changes in foreign currency exchange rates can cause the Company to experience unexpected financial losses or cash flow needs.

The Company may mitigate a portion of the fluctuations in certain foreign currencies through the use of foreign currency forward contracts.  Foreign currency forward contracts enable the Company to lock in the foreign currency exchange rate to be paid or received for a fixed amount of currency at a specified date in the future. The Company may use such foreign currency forward contracts to mitigate the risk associated with changes in foreign currency exchange
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JOHNSON OUTDOORS INC.
rates on financial instruments and known commitments, including commitments for inventory purchases, denominated in foreign currencies. As of June 28, 2024 and June 30, 2023, the Company held no foreign currency forward contracts.

13    FAIR VALUE MEASUREMENTS

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy has been established based on three levels of inputs, of which the first two are considered observable and the last unobservable.

•Level 1 - Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets or liabilities.

•Level 2 - Inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments.

•Level 3 - Unobservable inputs, where there is little or no market activity for the asset or liability. 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 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. 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. During the second quarter of fiscal 2024, the Company determined that indicators of potential impairment of long-lived assets were present in the Watercraft segment, and performed an analysis of future undiscounted cash flows, which exceeded carrying value of the asset group. Therefore, it was determined there was no impairment.

Valuation Techniques

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.  The rabbi trust assets are used to fund amounts the Company owes to certain officers and other employees under the Company’s non-qualified deferred compensation plan.  These assets are included in "Other assets" in the accompanying Company's Condensed Consolidated Balance Sheets, and the mark to market adjustments on the assets are recorded in “Other income, net” in the accompanying Condensed Consolidated Statements of Operations. The offsetting deferred compensation liability is also reported at fair value as "Deferred compensation liability" in the Company's accompanying Condensed Consolidated Balance Sheets. Changes in the liability are recorded in "Administrative management, finance and information systems" expense in the accompanying Condensed Consolidated Statements of Operations.
 
The following table summarizes the Company’s financial assets measured at fair value as of June 28, 2024:
 
 Level 1Level 2Level 3Total
Assets:    
Rabbi trust assets$27,793 $— $— $27,793 
 
The following table summarizes the Company’s financial assets measured at fair value as of September 29, 2023:
 
 Level 1Level 2Level 3Total
Assets:    
Rabbi trust assets$24,562 $— $— $24,562 
 
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JOHNSON OUTDOORS INC.
The following table summarizes the Company’s financial assets measured at fair value as of June 30, 2023:
 
 Level 1Level 2Level 3Total
Assets:    
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 nine month periods ended June 28, 2024 and June 30, 2023 was:

  Three Months EndedNine months ended
Location of income recognized in Statement of OperationsJune 28, 2024June 30, 2023June 28, 2024June 30, 2023
Rabbi trust assetsOther 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 nine month periods ended June 28, 2024 or June 30, 2023.

14    CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

The Company considers all short-term investments in interest bearing accounts and all securities and other instruments with an original maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost which approximates market value.

During the third quarter of fiscal 2023, the Company invested in marketable securities. 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 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 June 28, 2024:
 
 Amortized CostFair ValueGross unrealized gainsGross unrealized losses
    
Fixed rate US Government Bonds$14,984 $14,975 $— $9 
Fixed rate Canadian Government Bonds8,830 8,808 — 22 
Total$23,814 $23,783 $— $31 

The following table summarizes the Company’s marketable securities measured at fair value as of September 29, 2023:
 
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JOHNSON OUTDOORS INC.
 Amortized CostFair ValueGross unrealized gainsGross unrealized losses
    
Fixed rate US Government Bonds$29,749 $29,686 $— $63 
Fixed rate Canadian Government Bonds11,121 11,021 — 100 
Total$40,870 $40,707 $— $163 
The following table summarizes the Company’s marketable securities measured at fair value as of June 30, 2023:
 Amortized CostFair ValueGross unrealized gainsGross unrealized losses
    
Fixed rate US Government Bonds$29,614 $29,526 $— $87 
Fixed rate Canadian Government Bonds11,251 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 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.
 

15    NEW ACCOUNTING PRONOUNCEMENTS

    Recently issued accounting pronouncements

In March 2024, the United States Securities and Exchange Commission (SEC) issued Final Rulemaking Release No. 33-11275: The Enhancement and Standardization of Climate-Related Disclosures for Investors. This release is intended to improve consistency, completeness and transparency related to climate risks and events. The disclosure requirements related to this new rule will be phased in, and effective for the Company beginning in fiscal 2027 on a prospective basis. The Company is currently evaluating the potential impact of this release on its financial statements and disclosures.

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 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 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 disclosures.
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JOHNSON OUTDOORS INC.

Recently adopted accounting pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 is intended to provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued. 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 of Topic 848 to December 31, 2024. 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 disclosures.

16    REVENUES

Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our goods at a point in time based on shipping terms and transfer of title. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. The amount of consideration received can vary, primarily because of customer incentive or rebate arrangements. The Company estimates variable consideration based on the expected value of total consideration to which customers are likely to be entitled based on historical experience and projected market expectations. Included in the estimate is an assessment as to whether any variable consideration is constrained. Revenue estimates are adjusted at the earlier of a change in the expected value of consideration or when the consideration becomes fixed. For all contracts with customers, the Company has not adjusted the promised amount of consideration for the effects of a significant financing component as the period between the transfer of the promised goods and the customer's payment is expected to be one year or less. Sales are made on normal and customary short-term credit terms, generally ranging from 30 to 90 days, or upon delivery of point of sale transactions. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue.

The Company enters into contractual arrangements with customers in the form of individual customer orders which specify the goods, quantity, pricing, and associated order terms. The Company does not have contracts which are satisfied over time. Due to the nature of these contracts, no significant judgment exists in relation to the identification of the customer contract, satisfaction of the performance obligation, or transaction price. The Company expenses incremental costs of obtaining a contract due to the short-term nature of the contracts.

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 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.

The Company generally accounts for shipping and handling activities as a fulfillment activity, consistent with the timing of revenue recognition; that is, when a customer takes control of the transferred goods. In the event that a customer were to take control of a product upon or after shipment, the Company has made an accounting policy election to treat such shipping and handling activities as a fulfillment cost. Shipping and handling fees billed to customers are included in "Net Sales," and shipping and handling costs are recognized within "Marketing and selling expenses" in the same period the related revenue is recognized.

The Company has a wide variety of seasonal, outdoor recreation products used primarily for fishing from a boat, diving, paddling, hiking and camping, that are sold to a variety of customers in multiple end markets. Nonetheless, the revenue recognition policies are similar among all the various products sold by the Company.

See Note 17 for required disclosures of disaggregated revenue.

17    SEGMENTS OF BUSINESS

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. 

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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.

A summary of the Company’s operations by business segment is presented below:
 
 Three Months EndedNine Months Ended   
June 28, 2024June 30, 2023June 28, 2024June 30, 2023September 29, 2023
Net sales:         
Fishing:         
Unaffiliated customers$130,415 $137,161 $379,242 $429,991   
Interunit transfers122 299 395 851   
Camping:        
Unaffiliated customers10,909 11,621 27,325 36,940   
Interunit transfers18 37 35 56   
Watercraft Recreation:        
Unaffiliated customers11,037 15,664 25,536 38,121   
Interunit transfers33 62 75 153   
Diving        
Unaffiliated customers19,856 22,216 54,248 61,565   
Interunit transfers5 11 15 29   
Other / Corporate255 385 621 882   
Eliminations(178)(409)(520)(1,089)  
Total$172,472 $187,047 $486,972 $567,499   
Operating profit (loss):          
Fishing$5,258 $18,665 $24,214 $51,358   
Camping1,474 2,039 3,541 4,863   
Watercraft Recreation557 1,483 (2,007)1,637   
Diving898 2,733 22 4,190   
Other / Corporate(8,693)(7,477)(26,483)(27,743)  
 $(506)$17,443 $(713)$34,305   
Total assets (end of period):        
Fishing$365,842 $361,071 $363,463 
Camping48,217 61,896 53,003
Watercraft Recreation29,604 35,294 26,953
Diving81,818 84,205 83,555
Other / Corporate154,344 163,018 154,632
 $679,825 $705,484 $681,606 
Other Segment Information
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.

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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. 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! br