(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
Title of each class | Trading Symbol | Name of each exchange on which registered |
JOHNSON OUTDOORS INC. | ||
Index | Page No. | ||
PART I | FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | ||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II | OTHER INFORMATION | ||
Item 1. | |||
Item 1A. | |||
Item 6. | |||
JOHNSON OUTDOORS INC. | ||
Three Months Ended | Nine Months Ended | |||||||||||
(thousands, except per share data) | June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | ||||||||
Net sales | $ | $ | $ | $ | ||||||||
Cost of sales | ||||||||||||
Gross profit | ||||||||||||
Operating expenses: | ||||||||||||
Marketing and selling | ||||||||||||
Administrative management, finance and information systems | ||||||||||||
Research and development | ||||||||||||
Total operating expenses | ||||||||||||
Operating profit | ||||||||||||
Interest income | ( | ) | ( | ) | ( | ) | ( | ) | ||||
Interest expense | ||||||||||||
Other (income) expense, net | ( | ) | ( | ) | ( | ) | ||||||
Profit before income taxes | ||||||||||||
Income tax expense | ||||||||||||
Net income | $ | $ | $ | $ | ||||||||
Weighted average common shares - Basic: | ||||||||||||
Class A | ||||||||||||
Class B | ||||||||||||
Participating securities | ||||||||||||
Weighted average common shares - Dilutive | ||||||||||||
Net income per common share - Basic: | ||||||||||||
Class A | $ | $ | $ | $ | ||||||||
Class B | $ | $ | $ | $ | ||||||||
Net income per common share - Diluted: | ||||||||||||
Class A | $ | $ | $ | $ | ||||||||
Class B | $ | $ | $ | $ | ||||||||
JOHNSON OUTDOORS INC. | ||
Three Months Ended | Nine Months Ended | |||||||||||
(thousands) | June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | ||||||||
Net income | $ | $ | $ | $ | ||||||||
Other comprehensive income (loss): | ||||||||||||
Foreign currency translation: | ||||||||||||
Foreign currency translation | ( | ) | ||||||||||
Defined benefit pension plan: | ||||||||||||
Change in pension plans, net of tax of $60, ($7), $101 and $59, respectively | ( | ) | ||||||||||
Total other comprehensive income (loss) | ( | ) | ||||||||||
Total comprehensive income | $ | $ | $ | $ | ||||||||
JOHNSON OUTDOORS INC. | ||
(thousands, except share data) | June 26, 2020 | September 27, 2019 | June 28, 2019 | ||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | $ | $ | ||||||
Accounts receivable, net | |||||||||
Inventories | |||||||||
Other current assets | |||||||||
Total current assets | |||||||||
Property, plant and equipment, net of accumulated depreciation of $152,646, $143,028 and $140,316, respectively | |||||||||
Right of use assets | — | ||||||||
Deferred income taxes | |||||||||
Goodwill | |||||||||
Other intangible assets, net | |||||||||
Other assets | |||||||||
Total assets | $ | $ | $ | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | $ | $ | ||||||
Current lease liability | — | ||||||||
Accrued liabilities: | |||||||||
Salaries, wages and benefits | |||||||||
Accrued warranty | |||||||||
Income taxes payable | |||||||||
Accrued discounts and returns | |||||||||
Accrued customer programs | |||||||||
Other | |||||||||
Total current liabilities | |||||||||
Non-current lease liability | — | ||||||||
Deferred income taxes | |||||||||
Retirement benefits | |||||||||
Deferred compensation liability | |||||||||
Other liabilities | |||||||||
Total liabilities | |||||||||
Shareholders’ equity: | |||||||||
Common stock: | |||||||||
Class A shares issued and outstanding: 8,873,197, 8,834,169 and 8,838,459, respectively | |||||||||
Class B shares issued and outstanding: 1,211,602, 1,211,602 and 1,211,602, respectively | |||||||||
Capital in excess of par value | |||||||||
Retained earnings | |||||||||
Accumulated other comprehensive income | |||||||||
Treasury stock at cost, shares of Class A common stock: 36,354, 29,225 and 29,225, respectively | ( | ) | ( | ) | ( | ) | |||
Total shareholders’ equity | |||||||||
Total liabilities and shareholders’ equity | $ | $ | $ | ||||||
JOHNSON OUTDOORS INC. | ||
Nine Months Ended June 26, 2020 | ||||||||||||||||||||||
(thousands except for shares) | Shares | Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
BALANCE AT SEPTEMBER 27, 2019 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||
Dividends declared | — | — | — | ( | ) | — | — | |||||||||||||||
Award of non-vested shares | — | — | — | — | — | |||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||
Currency translation adjustment | — | — | — | — | — | |||||||||||||||||
Change in pension plans, net of tax of $21 | — | — | — | — | — | |||||||||||||||||
Purchase of treasury stock at cost | ( | ) | — | — | — | ( | ) | — | ||||||||||||||
BALANCE AT DECEMBER 27, 2019 | ( | ) | ||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||
Dividends declared | — | — | — | ( | ) | — | — | |||||||||||||||
Award of non-vested shares | — | — | — | — | — | |||||||||||||||||
Stock-based compensation | — | — | ( | ) | — | — | — | |||||||||||||||
Currency translation adjustment | — | — | — | — | — | ( | ) | |||||||||||||||
Change in pension plans, net of tax of $20 | — | — | — | — | — | |||||||||||||||||
BALANCE AT MARCH 27, 2020 | ( | ) | ||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||
Dividends declared | — | — | — | ( | ) | — | — | |||||||||||||||
Issuance of stock under employee stock purchase plan | — | — | — | — | ||||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||
Currency translation adjustment | — | — | — | — | — | |||||||||||||||||
Change in pension plans, net of tax of $60 | — | — | — | — | — | |||||||||||||||||
BALANCE AT JUNE 26, 2020 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
JOHNSON OUTDOORS INC. | ||
Nine Months Ended June 28, 2019 | ||||||||||||||||||||||
(thousands except for shares) | Shares | Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
BALANCE AT SEPTEMBER 28, 2018 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||
Dividends declared | — | — | — | ( | ) | — | — | |||||||||||||||
Award of non-vested shares | — | ( | ) | — | — | |||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||
Currency translation adjustment | — | — | — | — | — | ( | ) | |||||||||||||||
Change in pension plans, net of tax of $33 | — | — | — | — | — | |||||||||||||||||
Purchase of treasury stock at cost | ( | ) | — | — | — | ( | ) | — | ||||||||||||||
BALANCE AT DECEMBER 28, 2018 | ( | ) | ||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||
Dividends declared | — | — | — | ( | ) | — | — | |||||||||||||||
Issuance of stock under employee stock purchase plan | — | — | — | — | ||||||||||||||||||
Award of non-vested shares | — | — | — | — | — | |||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||
Currency translation adjustment | — | — | — | — | — | ( | ) | |||||||||||||||
Change in pension plans, net of tax of $33 | — | — | — | — | — | |||||||||||||||||
BALANCE AT MARCH 29, 2019 | ( | ) | ||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||
Dividends declared | — | — | — | ( | ) | — | — | |||||||||||||||
Award of non-vested shares | — | ( | ) | — | — | — | ||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||
Currency translation adjustment | — | — | — | — | — | |||||||||||||||||
Change in pension plans, net of tax of ($7) | — | — | — | — | — | ( | ) | |||||||||||||||
BALANCE AT JUNE 28, 2019 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
JOHNSON OUTDOORS INC. | ||
Nine Months Ended | ||||||
(thousands) | June 26, 2020 | June 28, 2019 | ||||
CASH PROVIDED BY OPERATING ACTIVITIES | ||||||
Net income | $ | $ | ||||
Adjustments to reconcile net income to net cash used for operating activities: | ||||||
Depreciation | ||||||
Amortization of intangible assets | ||||||
Amortization of deferred financing costs | ||||||
Stock based compensation | ||||||
Loss (gain) on disposal of productive assets | ( | ) | ||||
Deferred income taxes | ( | ) | ||||
Change in operating assets and liabilities: | ||||||
Accounts receivable, net | ( | ) | ( | ) | ||
Inventories, net | ( | ) | ||||
Accounts payable and accrued liabilities | ||||||
Other current assets | ( | ) | ||||
Other non-current assets | ( | ) | ||||
Other long-term liabilities | ||||||
Other, net | ( | ) | ||||
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | ||||||
Purchase of short-term investments | ( | ) | ||||
Proceeds from sale of short-term investments | ||||||
Proceeds from sale of productive assets | ||||||
Capital expenditures | ( | ) | ( | ) | ||
( | ) | |||||
CASH USED FOR FINANCING ACTIVITIES | ||||||
Common stock transactions | ||||||
Dividends paid | ( | ) | ( | ) | ||
Purchases of treasury stock | ( | ) | ( | ) | ||
( | ) | ( | ) | |||
Effect of foreign currency rate changes on cash | ( | ) | ||||
Increase in cash and cash equivalents | ||||||
CASH AND CASH EQUIVALENTS | ||||||
Beginning of period | ||||||
End of period | $ | $ | ||||
Supplemental Disclosure: | ||||||
Non-cash treasury stock activity | $ | $ | ||||
Cash paid for taxes | ||||||
Cash paid for interest | ||||||
JOHNSON OUTDOORS INC. | ||
JOHNSON OUTDOORS INC. | ||
JOHNSON OUTDOORS INC. | ||
Three Months Ended | Nine months ended | |||||||||||
June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | |||||||||
Dividends declared per common share: | ||||||||||||
Class A | $ | $ | $ | $ | ||||||||
Class B | $ | $ | $ | $ | ||||||||
Shares | Weighted Average Grant Price | ||||
Non-vested stock at September 27, 2019 | $ | ||||
Non-vested stock grants | |||||
Restricted stock vested | ( | ) | |||
Non-vested stock at June 26, 2020 | |||||
JOHNSON OUTDOORS INC. | ||
Number of RSUs | Weighted Average Grant Price | ||||
RSUs at September 27, 2019 | $ | ||||
RSUs granted | |||||
RSUs vested | ( | ) | |||
RSUs at June 26, 2020 | |||||
JOHNSON OUTDOORS INC. | ||
Three Months Ended | Nine Months Ended | |||||||||||
June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | |||||||||
Components of net periodic benefit cost: | ||||||||||||
Service cost | $ | $ | $ | $ | ||||||||
Interest on projected benefit obligation | ||||||||||||
Less estimated return on plan assets | ||||||||||||
Amortization of unrecognized losses (gains) | ( | ) | ||||||||||
Net periodic benefit cost | $ | $ | $ | $ | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||
(thousands, except tax rate data) | June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | ||||||||
Profit before income taxes | $ | $ | $ | $ | ||||||||
Income tax expense | ||||||||||||
Effective income tax rate | % | % | % | % | ||||||||
June 26, 2020 | June 28, 2019 |
France | France |
Indonesia | Indonesia |
Switzerland | Switzerland |
JOHNSON OUTDOORS INC. | ||
Jurisdiction | Fiscal Years |
United States | 2017-2019 |
Canada | 2016-2019 |
France | 2016-2019 |
Germany | 2017-2019 |
Italy | 2018-2019 |
Switzerland | 2009-2019 |
June 26, 2020 | September 27, 2019 | June 28, 2019 | |||||||
Raw materials | $ | $ | $ | ||||||
Work in process | |||||||||
Finished goods | |||||||||
$ | $ | $ | |||||||
June 26, 2020 | June 28, 2019 | |||||
Balance at beginning of period | $ | $ | ||||
Amount attributable to movements in foreign currency rates | ( | ) | ( | ) | ||
Balance at end of period | $ | $ | ||||
JOHNSON OUTDOORS INC. | ||
June 26, 2020 | June 28, 2019 | |||||
Balance at beginning of period | $ | $ | ||||
Expense accruals for warranties issued during the period | ||||||
Less current period warranty claims paid | ||||||
Balance at end of period | $ | $ | ||||
JOHNSON OUTDOORS INC. | ||
• | 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. |
JOHNSON OUTDOORS INC. | ||
• | Level 2 - Inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. 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. |
Level 1 | Level 2 | Level 3 | Total | |||||||||
Assets: | ||||||||||||
Rabbi trust assets | $ | $ | $ | $ | ||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
Assets: | ||||||||||||
Rabbi trust assets | $ | $ | $ | $ | ||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
Assets: | ||||||||||||
Rabbi trust assets | $ | $ | $ | $ | ||||||||
Three Months Ended | Nine months ended | |||||||||||||
Location of (income) loss recognized in Statement of Operations | June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | ||||||||||
Rabbi trust assets | Other (income) expense, net | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |
JOHNSON OUTDOORS INC. | ||
JOHNSON OUTDOORS INC. | ||
Three Months Ended | Nine Months Ended | ||||||||||||||
June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | September 27, 2019 | |||||||||||
Net sales: | |||||||||||||||
Fishing: | |||||||||||||||
Unaffiliated customers | $ | $ | $ | $ | |||||||||||
Interunit transfers | |||||||||||||||
Camping: | |||||||||||||||
Unaffiliated customers | |||||||||||||||
Interunit transfers | |||||||||||||||
Watercraft Recreation: | |||||||||||||||
Unaffiliated customers | |||||||||||||||
Interunit transfers | |||||||||||||||
Diving | |||||||||||||||
Unaffiliated customers | |||||||||||||||
Interunit transfers | |||||||||||||||
Other / Corporate | |||||||||||||||
Eliminations | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total | $ | $ | $ | $ | |||||||||||
Operating profit (loss): | |||||||||||||||
Fishing | $ | $ | $ | $ | |||||||||||
Camping | |||||||||||||||
Watercraft Recreation | ( | ) | ( | ) | |||||||||||
Diving | ( | ) | ( | ) | |||||||||||
Other / Corporate | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
$ | $ | $ | $ | ||||||||||||
Total assets (end of period): | |||||||||||||||
Fishing | $ | $ | $ | ||||||||||||
Camping | |||||||||||||||
Watercraft Recreation | |||||||||||||||
Diving | |||||||||||||||
Other / Corporate | |||||||||||||||
$ | $ | $ | |||||||||||||
JOHNSON OUTDOORS INC. | ||
Foreign Currency Translation Adjustment | Unamortized Loss on Defined Benefit Pension Plans | Accumulated Other Comprehensive Income (Loss) | |||||||
Balance at March 27, 2020 | $ | $ | ( | ) | $ | ||||
Other comprehensive income before reclassifications | |||||||||
Amounts reclassified from accumulated other comprehensive income | |||||||||
Tax effects | ( | ) | ( | ) | |||||
Balance at June 26, 2020 | $ | $ | ( | ) | $ | ||||
Foreign Currency Translation Adjustment | Unamortized Loss on Defined Benefit Pension Plans | Accumulated Other Comprehensive Income (Loss) | |||||||
Balance at March 29, 2019 | $ | $ | ( | ) | $ | ||||
Other comprehensive loss before reclassifications | |||||||||
Amounts reclassified from accumulated other comprehensive income | ( | ) | ( | ) | |||||
Tax effects | |||||||||
Balance at June 28, 2019 | $ | $ | ( | ) | $ | ||||
Foreign Currency Translation Adjustment | Unamortized Loss on Defined Benefit Pension Plans | Accumulated Other Comprehensive Income (Loss) | |||||||
Balance at September 27, 2019 | $ | $ | ( | ) | $ | ||||
Other comprehensive loss before reclassifications | |||||||||
Amounts reclassified from accumulated other comprehensive income | |||||||||
Tax effects | ( | ) | ( | ) | |||||
Balance at June 26, 2020 | $ | $ | ( | ) | $ | ||||
Foreign Currency Translation Adjustment | Unamortized Loss on Defined Benefit Pension Plans | Accumulated Other Comprehensive Income (Loss) | |||||||
Balance at September 28, 2018 | $ | $ | ( | ) | $ | ||||
Other comprehensive loss before reclassifications | ( | ) | ( | ) | |||||
Amounts reclassified from accumulated other comprehensive income | |||||||||
Tax effects | ( | ) | ( | ) | |||||
Balance at June 28, 2019 | $ | $ | ( | ) | $ | ||||
JOHNSON OUTDOORS INC. | ||
Three Months Ended | |||||||
June 26, 2020 | June 28, 2019 | Statement of Operations Presentation | |||||
Unamortized loss on defined benefit pension plans: | |||||||
Amortization of loss (gain) | $ | $ | ( | ) | Other income and expense | ||
Tax effects | ( | ) | Income tax expense | ||||
Total reclassifications for the period | $ | $ | ( | ) | |||
Nine months ended | |||||||
June 26, 2020 | June 28, 2019 | Statement of Operations Presentation | |||||
Unamortized loss on defined benefit pension plans: | |||||||
Amortization of loss | $ | $ | Other income and expense | ||||
Tax effects | ( | ) | ( | ) | Income tax expense | ||
Total reclassifications for the period | $ | $ | |||||
JOHNSON OUTDOORS INC. | ||
Three months ended | Nine months ended | |||||
June 26, 2020 | June 26, 2020 | |||||
Lease Cost | ||||||
Operating lease costs | $ | $ | ||||
Short-term lease costs | ||||||
Variable leases costs | ||||||
Total lease cost | $ | $ | ||||
Nine months ended | |||
June 26, 2020 | |||
Operating leases: | |||
Operating lease ROU assets | $ | ||
Current operating leases liabilities | |||
Non-current operating lease liabilities | |||
Total operating lease liabilities | $ | ||
Weighted average remaining lease term (in years) | |||
Weighted average discount rate | % | ||
Cash paid for amounts included in the measurement of lease liabilities | $ | ||
Year | Related parties included in total | Total | |||||
Remainder of 2020 | $ | $ | |||||
2021 | |||||||
2022 | |||||||
2023 | |||||||
2024 | |||||||
Thereafter | |||||||
Total undiscounted lease payments | |||||||
Less: Imputed interest | ( | ) | ( | ) | |||
Total net lease liability | $ | $ | |||||
JOHNSON OUTDOORS INC. | ||
Year | Related parties included in total | Total | |||||
Remainder of 2019 | $ | $ | |||||
2020 | |||||||
2021 | |||||||
2022 | |||||||
2023 | |||||||
Thereafter | |||||||
Total | $ | $ | |||||
• | Forward Looking Statements |
• | Trademarks |
• | Overview |
• | Results of Operations |
• | Liquidity and Financial Condition |
• | Contractual Obligations and Off Balance Sheet Arrangements |
• | Critical Accounting Policies and Estimates |
JOHNSON OUTDOORS INC. | ||
JOHNSON OUTDOORS INC. | ||
Fiscal Year | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Quarter Ended | Net Sales | Operating Profit | Net Sales | Operating Profit | Net Sales | Operating Profit | ||||||
December | 19 | % | 9 | % | 21 | % | 11 | % | 19 | % | 1 | % |
March | 32 | % | 43 | % | 31 | % | 41 | % | 30 | % | 45 | % |
June | 31 | % | 43 | % | 31 | % | 51 | % | 32 | % | 54 | % |
September | 18 | % | 5 | % | 17 | % | -3 | % | 19 | % | — | % |
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |
Three Months Ended | Nine Months Ended | |||||||||||
June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | |||||||||
Net sales: | ||||||||||||
Fishing | $ | 102,741 | $ | 128,196 | $ | 335,974 | $ | 345,222 | ||||
Camping | 9,665 | 14,728 | 26,028 | 30,077 | ||||||||
Watercraft Recreation | 15,267 | 13,010 | 26,140 | 27,186 | ||||||||
Diving | 10,696 | 20,243 | 41,416 | 55,866 | ||||||||
Other / Eliminations | 21 | 76 | (30 | ) | 49 | |||||||
Total | $ | 138,390 | $ | 176,253 | $ | 429,528 | $ | 458,400 | ||||
Operating profit (loss): | ||||||||||||
Fishing | $ | 23,273 | $ | 29,672 | $ | 71,208 | $ | 75,684 | ||||
Camping | 828 | 2,315 | 1,603 | 2,048 | ||||||||
Watercraft Recreation | 1,181 | 380 | (2,021 | ) | (1,628 | ) | ||||||
Diving | (2,595 | ) | 1,440 | (3,202 | ) | 2,156 | ||||||
Other / Eliminations | (9,758 | ) | (5,778 | ) | (16,064 | ) | (16,409 | ) | ||||
Total | $ | 12,929 | $ | 28,029 | $ | 51,524 | $ | 61,851 | ||||
JOHNSON OUTDOORS INC. | ||
JOHNSON OUTDOORS INC. | ||
JOHNSON OUTDOORS INC. | ||
Nine months ended | ||||||
(thousands) | June 26, 2020 | June 28, 2019 | ||||
Cash provided by (used for): | ||||||
Operating activities | $ | 25,560 | $ | 15,620 | ||
Investing activities | (11,340 | ) | 16,743 | |||
Financing activities | (5,412 | ) | (4,794 | ) | ||
Effect of foreign currency rate changes on cash | 255 | (478 | ) | |||
Increase in cash and cash equivalents | $ | 9,063 | $ | 27,091 | ||
JOHNSON OUTDOORS INC. | ||
Total | Less than 1 year | 2-3 years | 4-5 years | After 5 years | |||||||||||
Operating lease obligations | $ | 42,921 | $ | 2,329 | $ | 10,391 | $ | 6,848 | $ | 23,353 | |||||
Open purchase orders | 70,332 | 70,332 | — | — | — | ||||||||||
Contractually obligated interest payments | 267 | 28 | 225 | 14 | — | ||||||||||
Total contractual obligations | $ | 113,520 | $ | 72,689 | $ | 10,616 | $ | 6,862 | $ | 23,353 | |||||
JOHNSON OUTDOORS INC. | ||
JOHNSON OUTDOORS INC. | ||
JOHNSON OUTDOORS INC. | ||
JOHNSON OUTDOORS INC. | ||
JOHNSON OUTDOORS INC. | |
Signatures Dated: July 31, 2020 | |
/s/ Helen P. Johnson-Leipold | |
Helen P. Johnson-Leipold | |
Chairman and Chief Executive Officer | |
(Principal Executive Officer) | |
/s/ David W. Johnson | |
David W. Johnson | |
Vice President and Chief Financial Officer | |
(Principal Financial and Accounting Officer) | |
JOHNSON OUTDOORS INC. | ||
Exhibit Number | Description |
Articles of Incorporation of the Company as amended through February 17, 2000. (Filed as Exhibit 3.1(a) to the Company’s Form 10-Q for the quarter ended March 31, 2000 and incorporated herein by reference.) | |
Bylaws of the Company as amended and restated through December 6, 2010. (Filed as Exhibit 3.2 to the Company’s Form 10-K for the year ended October 1, 2010 and incorporated herein by reference.) | |
Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32 (1) | Certification of Periodic Financial Report by the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101 | The following materials from Johnson Outdoors Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 26, 2020 formatted in XBRL (eXtensible Business Reporting Language) and furnished electronically herewith: (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Operations; (iii) Condensed Consolidated Statements of Comprehensive Income; (iv) Condensed Consolidated Statements of Cash Flows; (v) Condensed Consolidated Statements of Shareholders' Equity and (vi) Notes to Condensed Consolidated Financial Statements. |
| 1) |
I have reviewed this Quarterly Report on Form 10-Q of Johnson Outdoors Inc.;
|
| 2) |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
| 3) |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
|
| 4) |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
| a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
| b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
| c) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and
|
| d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
| 5) |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or
persons performing the equivalent functions):
|
| a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report
financial information; and
|
| b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date:
|
July 31, 2020
|
/s/ Helen P. Johnson-Leipold
|
|
|
Helen P. Johnson-Leipold
|
|||
|
Chairman and Chief Executive Officer
|
| 1) |
I have reviewed this Quarterly Report on Form 10-Q of Johnson Outdoors Inc.;
|
| 2) |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
| 3) |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
|
| 4) |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
| a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
| b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
| c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
|
| d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
| 5) |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or
persons performing the equivalent functions):
|
| a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and
report financial information; and
|
| b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date:
|
July 31, 2020
|
/s/ David W. Johnson
|
|
|
David W. Johnson
|
|||
|
Vice President and Chief Financial Officer
|
|||
|
Treasurer
|
|
/s/ Helen P. Johnson-Leipold
|
|
|
Helen P. Johnson-Leipold
|
|
|
Chairman and Chief Executive Officer
|
|
|
July 31, 2020
|
|
/s/ David W. Johnson
|
|
|
David W. Johnson
|
|
|
Vice President and Chief Financial Officer
|
|
|
Treasurer
|
|
|
July 31, 2020
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2020 |
Jun. 28, 2019 |
Jun. 28, 2020 |
Jun. 28, 2019 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Net income | $ 12,869 | $ 22,066 | $ 39,686 | $ 47,510 |
| Foreign currency translation: | ||||
| Foreign currency translation | 1,537 | 1,047 | 630 | (801) |
| Defined benefit pension plan: | ||||
| Change in pension plans, net of tax of $60, ($7), $101 and $59, respectively | 180 | (23) | 303 | 187 |
| Total other comprehensive income (loss) | 1,717 | 1,024 | 933 | (614) |
| Total comprehensive income | $ 14,586 | $ 23,090 | $ 40,619 | $ 46,896 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2020 |
Jun. 28, 2019 |
Jun. 28, 2020 |
Jun. 28, 2019 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Pension plans, unrecognized gain, tax | $ 60 | $ (7) | $ 101 | $ 59 |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands |
Jun. 28, 2020 |
Sep. 27, 2019 |
Jun. 28, 2019 |
|---|---|---|---|
| Property, plant and equipment, accumulated depreciation | $ 152,646 | $ 143,028 | $ 140,316 |
| Class A | |||
| Common stock, shares issued | 8,873,197 | 8,834,169 | 8,838,459 |
| Common stock, shares outstanding | 8,873,197 | 8,834,169 | 8,838,459 |
| Treasury stock, shares | 36,354 | 29,225 | 29,225 |
| Class B | |||
| Common stock, shares issued | 1,211,602 | 1,211,602 | 1,211,602 |
| Common stock, shares outstanding | 1,211,602 | 1,211,602 | 1,211,602 |
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |||||
|---|---|---|---|---|---|---|
Jun. 28, 2020 |
Mar. 27, 2020 |
Dec. 27, 2019 |
Jun. 28, 2019 |
Mar. 29, 2019 |
Dec. 28, 2018 |
|
| Statement of Stockholders' Equity [Abstract] | ||||||
| Change in pension plans, tax benefit (expense) | $ 60 | $ 20 | $ 21 | $ (7) | $ 33 | $ 33 |
BASIS OF PRESENTATION |
9 Months Ended |
|---|---|
Jun. 28, 2020 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| BASIS OF PRESENTATION | 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 26, 2020 and June 28, 2019, and their results of operations for the three and nine month periods then ended and cash flows for the nine month periods then ended. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2019 which was filed with the Securities and Exchange Commission on December 6, 2019. Due to seasonal variations and other factors, some of which are described herein, including related to the coronavirus (COVID-19) outbreak and resulting pandemic, the results of operations for the three and nine months ended June 26, 2020 are not necessarily indicative of the results to be expected for the Company’s full 2020 fiscal year. See “Seasonality” and "Coronavirus (COVID-19)" in the Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere herein for additional information. The Company considers all short-term investments in interest-bearing accounts and all securities and other instruments with an original maturity of three months or less, to be equivalent to cash. Cash equivalents are stated at cost which approximates market value. Short-term investments consist of certificates of deposit with original maturities greater than three months but less than one year. All monetary amounts, other than share and per share amounts, are stated in thousands. Coronavirus (COVID-19) In March 2020, the World Health Organization recognized the current coronavirus (COVID-19) outbreak as a global pandemic. In response to the COVID-19 outbreak, the governments of many countries, states, cities and other geographic regions have imposed varying degrees of restrictions on social and commercial activity, including travel, to promote social distancing in an effort to slow the spread of the illness. These measures have had a significant adverse impact upon many sectors of the economy, including manufacturing and retail commerce. In response to these measures and for the protection of our employees, we temporarily closed our manufacturing locations and warehouses at the beginning of the Company's third fiscal quarter which falls during our primary selling season. While as of June 26, 2020, we had resumed nearly all production and shipping activities under appropriate safety protocols, the period of suspended operations had an adverse impact on sales volumes and operating profits for the three and nine months then ended. Over the course of the fiscal third quarter, government mandates allowed us to re-open our manufacturing and distribution centers. While those mandates continued to emphasize social distancing measures to the general public, the Company began to see growing demand and improved sales volumes in the latter part of the quarter for certain of its outdoor recreation businesses. Nonetheless, the full extent to which the COVID-19 pandemic will impact our business, results of operations, and financial condition will depend on future developments, which are beyond our control and which remain highly uncertain and cannot be predicted. This includes, but is not limited to, the duration, spread, severity and impact of the COVID-19 pandemic, or future waves, increasing outbreaks or hot spots of the pandemic in our areas of operations or in key markets, the effects of the pandemic on our customers, consumers, suppliers and vendors and the remedial actions and stimulus measures adopted by federal, state and local governments in reaction to the pandemic. As the COVID-19 pandemic continues to impact various key regions of the world, even after it subsides, we may continue to experience adverse impacts to our business as a result of any economic recession that has occurred or may occur in the future. As a result, the Company cannot reasonably estimate the impact of the COVID-19 pandemic on Company operations and profitability at this time as the situation is dynamic and constantly changing. We continue to monitor evolving economic and general business conditions and the actual and potential impacts on our financial position, results of operations and cash flows.
|
ACCOUNTS RECEIVABLE |
9 Months Ended |
|---|---|
Jun. 28, 2020 | |
| Receivables [Abstract] | |
| ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable are stated net of allowances for doubtful accounts of $2,834, $2,550 and $1,969 as of June 26, 2020, September 27, 2019 and June 28, 2019, respectively. The increase in net accounts receivable to $82,577 as of June 26, 2020 from $44,508 as of September 27, 2019 is attributable to the seasonal nature of the Company’s business and the resulting increases in sales volumes between periods. The determination of the allowance for doubtful accounts is based on a combination of factors. In circumstances where specific collection concerns about a receivable exist (including as a result of the impact of COVID-19) , 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. The Company typically does not require collateral on its accounts receivable.
|
EARNINGS PER SHARE (“EPS”) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EARNINGS PER SHARE (“EPS”) | 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. For the three and nine month periods ended June 26, 2020 and June 28, 2019, basic income per share for the Class A and Class B shares has been presented using the two class method and reflects the allocation of undistributed income described above. 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, the effect of anti-dilutive stock options and units is excluded and diluted loss per share is equal to basic loss per share for both classes of stock. For the three and nine month periods ended June 26, 2020 and June 28, 2019, diluted net income per share reflects the effect of dilutive stock units and assumes the conversion of Class B common stock into Class A common stock. Non-vested stock that could potentially dilute earnings per share in the future which were not included in the fully diluted computation because they would have been anti-dilutive totaled 41,390 and 45,898 for the three months ended June 26, 2020 and June 28, 2019, respectively, and 40,260 and 43,772 for the nine months ended June 26, 2020 and June 28, 2019, respectively. Stock units that could potentially dilute earnings per share in the future and which were not included in the fully diluted computation because they would have been anti-dilutive were 36,495 and 28,673 for the three month periods ended June 26, 2020 and June 28, 2019, respectively, and 42,368 and 31,178 for the nine months ended June 26, 2020 and June 28, 2019, respectively. Dividends per share Dividends per share for the three and nine month periods ended June 26, 2020 and June 28, 2019 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS | 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 2012 Non-Employee Director Stock Ownership Plan and the 2020 Long-Term Incentive Plan (the only plans where shares currently remain available for future equity incentive awards) there were a total of 536,327 shares of the Company’s Class A common stock available for future grant to non-employee directors and key executives at June 26, 2020. Share awards previously made under the Company's 2010 Long-Term Stock Incentive Plan, which no longer allows for additional share grants, also remain outstanding. Non-vested Stock 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 26, 2020 related to the Company’s stock ownership plans is as follows:
Non-vested stock grantees may elect to reimburse the Company for withholding taxes due as a result of the vesting of shares by tendering a portion of the vested shares back to the Company. Shares tendered back to the Company were 4,054 and 3,381 during the nine month periods ended June 26, 2020 and June 28, 2019, respectively. Stock compensation expense, net of forfeitures, related to non-vested stock was $270 and $240 for the three month periods ended June 26, 2020 and June 28, 2019, respectively, and $762 and $518 for the nine month periods ended June 26, 2020 and June 28, 2019, respectively. Unrecognized compensation cost related to non-vested stock as of June 26, 2020 was $1,446, which amount will be amortized to expense through November 2022 or adjusted for changes in future estimated or actual forfeitures. The fair value of restricted stock vested during the nine month periods ended June 26, 2020 and June 28, 2019 was $1,329 and $1,237, respectively. 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 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 26, 2020 follows:
For the three and nine months ended June 26, 2020, the Company recognized stock compensation expense of $1,161 and $992, respectively. Stock compensation expense, net of forfeitures, related to RSUs was $330 and $1,144 for the three and nine months ended June 28, 2019, respectively. Unrecognized compensation cost related to non-vested RSUs as of June 26, 2020 was $1,976, which amount will be amortized to expense through September 2022 or adjusted for changes in future estimated or actual forfeitures. RSU grantees may elect to reimburse the Company for withholding taxes due as a result of the vesting of units and issuance of unrestricted shares of Class A common stock by tendering a portion of such unrestricted shares back to the Company. Shares tendered back to the Company for this purpose were 3,075 and 6,509 during the nine month periods ended June 26, 2020 and June 28, 2019, respectively. The fair value of restricted stock units recognized as a tax deduction during the nine month periods ended June 26, 2020 and June 28, 2019 was $1,426 and $3,333, respectively. 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. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PENSION PLANS |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PENSION PLANS | PENSION PLANS The Company has non-contributory defined benefit pension plans covering certain of its U.S. employees. Retirement benefits are generally provided based on the employees’ years of service and average earnings. Normal retirement age is 65, with provisions for earlier retirement. The Company made contributions of $44 and $44 to its pension plans for the three months ended June 26, 2020 and June 28, 2019, respectively, and contributions of $132 and $134 for the nine months ended June 26, 2020 and June 28, 2019, respectively. The components of net periodic benefit cost related to Company sponsored defined benefit plans for the three and nine month periods ended June 26, 2020 and June 28, 2019 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAXES | INCOME TAXES For the three and nine months ended June 26, 2020 and June 28, 2019, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows:
The decrease in the effective tax rate for the three and nine months ended June 26, 2020 compared to the prior year periods is primarily due to a decrease in reserves for unrecognized tax benefits from the expiration of statutes of limitations. The impact of the Company’s operations in jurisdictions where a valuation allowance is assessed is removed from the overall effective tax rate methodology and recorded directly based on year to date results for the year for which no tax expense or benefit can be recognized. The significant tax jurisdictions that have a valuation allowance for the periods ended June 26, 2020 and June 28, 2019 were:
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 2020 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. The Company is projecting accrued interest of $100 related to uncertain income tax positions for the fiscal year ending October 2, 2020. The Company files income tax returns, including returns for its subsidiaries, with federal, state, local and foreign taxing jurisdictions. As of the date of this report, the following tax years remain open to examination by the respective significant tax jurisdictions:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INVENTORIES | INVENTORIES Inventories at the end of the respective periods consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
| GOODWILL | GOODWILL The changes in goodwill during the nine months ended June 26, 2020 and June 28, 2019 were as follows:
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.
|
||||||||||||||||||||||||||||||||||||||||||
WARRANTIES |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
| WARRANTIES | 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 26, 2020 and June 28, 2019.
|
|||||||||||||||||||||||||||||||||||||||||||||||||
CONTINGENCIES |
9 Months Ended |
|---|---|
Jun. 28, 2020 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| CONTINGENCIES | 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.
|
INDEBTEDNESS |
9 Months Ended |
|---|---|
Jun. 28, 2020 | |
| Debt Disclosure [Abstract] | |
| INDEBTEDNESS | INDEBTEDNESS The Company had no debt outstanding at June 26, 2020, September 27, 2019, or June 28, 2019. Revolvers 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 (the “Credit Agreement” or “Revolver”). The Revolver has an expiration date of November 15, 2022 and provides for borrowing of up to an aggregate principal amount not to exceed $75,000 with a $50,000 accordion feature that gives the Company the option to increase the maximum financing availability (i.e., an aggregate borrowing amount of $125,000) subject to the conditions of the Credit Agreement and subject to the approval of the lenders. The interest rate on the Revolver is based on LIBOR plus an applicable margin, which margin resets each quarter. The applicable margin ranges from 1.00% to 1.75% and is dependent on the Company’s leverage ratio for the trailing twelve month period. The interest rates on the Revolver at June 26, 2020 and June 28, 2019 were approximately 1.2% and 3.4%, respectively. The Credit Agreement restricts the Company's ability to incur additional debt, includes maximum leverage ratio and minimum interest coverage ratio covenants and is unsecured. Other Borrowings The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of June 26, 2020 or June 28, 2019. The Company utilizes letters of credit primarily as security for the payment of future claims under its workers’ compensation insurance, which totaled approximately $181 and $279 as of June 26, 2020 and June 28, 2019, respectively.
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
9 Months Ended |
|---|---|
Jun. 28, 2020 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 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 11% of the Company’s revenues for the nine month period ended June 26, 2020 were denominated in currencies other than the U.S. dollar. Approximately 5% were denominated in euros, approximately 5% were denominated in Canadian dollars and approximately 1% 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 rates on financial instruments and known commitments, including commitments for inventory purchases, denominated in foreign currencies. As of June 26, 2020 and June 28, 2019, the Company held no foreign currency forward contracts.
|
FAIR VALUE MEASUREMENTS |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FAIR VALUE MEASUREMENTS | 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.
The carrying amounts of cash, cash equivalents, short term investments, accounts receivable, and accounts payable approximated their fair values at June 26, 2020, September 27, 2019 and June 28, 2019 due to the short term maturities of these instruments. When indicators of impairment are present, the Company may be required to value certain long-lived assets such as property, plant, and equipment, and other intangibles at their fair value. Valuation Techniques Rabbi Trust Assets 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 Company's Condensed Consolidated Balance Sheets, and the mark to market adjustments on the assets are recorded in “Other expense (income), net” in the accompanying Condensed Consolidated Statements of Operations. The offsetting deferred compensation liability is also reported at fair value as "Deferred compensation liability" in the Company's Condensed Consolidated Balance Sheets. Changes in the liability are recorded in "Administrative management, finance and information systems" expense in the accompanying Condensed Consolidated Statements of Operations. The following table summarizes the Company’s financial assets measured at fair value as of June 26, 2020:
The following table summarizes the Company’s financial assets measured at fair value as of September 27, 2019:
The following table summarizes the Company’s financial assets measured at fair value as of June 28, 2019:
The effect of changes in the fair value of financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three and nine month periods ended June 26, 2020 and June 28, 2019 was:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NEW ACCOUNTING PRONOUNCEMENTS |
9 Months Ended |
|---|---|
Jun. 28, 2020 | |
| Accounting Standards Update and Change in Accounting Principle [Abstract] | |
| NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Recently adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). In July 2018, the FASB also issued ASU 2018-10 Codification Improvements to Topic 842, Leases and ASU 2018-11 Leases (Topic 842) Targeted Improvements. In February 2019, the FASB also issued ASU 2019-01 Leases (Topic 842): Codification Improvements. This ASU and the updates to this ASU require organizations to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. This guidance was effective for the Company in the first quarter of fiscal year 2020, and may be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements with certain practical expedients available. The Company adopted the provisions of these ASU's using the modified retrospective approach at the beginning of the first quarter of fiscal 2020, coinciding with the standard's effective date. The additional disclosures required by the ASU and its updates are included in Note 18 "Leases" of these Notes to the Condensed Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220), which allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. ASU No. 2018-02 was effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The ASU allowed for early adoption in any interim period after issuance of the update. The Company early adopted the ASU in the second quarter of fiscal 2019, and elected not to make this optional reclassification. Recently issued accounting pronouncements In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses (Topic 326)” and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05 (collectively Topic 326). Topic 326 requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. This replaces the existing incurred loss model with an expected loss model and requires the use of forward-looking information to calculate credit loss estimates. The amendments in this guidance are effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain amendments. Topic 326 must be adopted by applying a cumulative effect adjustment to retained earnings. The Company does not expect adoption of the new guidance to have a significant impact on its financial statements. In August 2018, the FASB issued ASU 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans (Topic 715), which modifies the disclosure requirements for employers that sponsor defined pension or postretirement plans. The amendments in this guidance are effective for fiscal years ending after December 15, 2020, with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on its disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, with early adoption permitted. The Company does not expect adoption of the new guidance to have a significant impact on its financial statements.
|
REVENUES |
9 Months Ended |
|---|---|
Jun. 28, 2020 | |
| Revenue from Contract with Customer [Abstract] | |
| REVENUES | REVENUES Adoption of Topic 606 In the first quarter of fiscal 2019, the Company adopted ASU 2014-09 and all subsequent ASUs that modified accounting standards Topic 606 using the modified retrospective adoption method. Upon adoption, the Company recorded a right to returns asset of $763 and a corresponding increase in the accrued return liability, resulting in an accrued returns liability of $2,725. The adoption of this new revenue standard did not otherwise have an impact on the Company's consolidated financial statements, and the timing and amount of its revenue recognition remained substantially unchanged under this new guidance. Revenue recognition Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; 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 26, 2020, the right to returns asset was $1,082 and the accrued returns liability was $3,207. At June 28, 2019, the right to returns asset was $1,170 and the accrued returns liability was $3,729. 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 16 for required disclosures of disaggregated revenue.
|
SEGMENTS OF BUSINESS |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SEGMENTS OF BUSINESS | 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. During the three and nine month periods ended June 26, 2020, combined net sales to one customer of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $20,433 and $70,269, respectively, of the Company's consolidated revenues. During the three and nine month periods ended June 28, 2019, combined net sales to one customer of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $24,260 and $78,010, respectively, of the Company's consolidated revenues. Net sales and operating profit include both sales to customers, as reported in the Company’s accompanying Condensed Consolidated Statements of Operations, and interunit transfers, which are priced to recover cost plus an appropriate 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:
1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the three months ended June 26, 2020 were as follows:
The changes in AOCI by component, net of tax, for the three months ended June 28, 2019 were as follows:
The changes in AOCI by component, net of tax, for the nine months ended June 26, 2020 were as follows:
The changes in AOCI by component, net of tax, for the nine months ended June 28, 2019 were as follows:
The reclassifications out of AOCI for the three months ended June 26, 2020 and June 28, 2019 were as follows:
The reclassifications out of AOCI for the nine months ended June 26, 2020 and June 28, 2019 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LEASES | LEASES Adoption of Topic 842 On September 28, 2019, the Company adopted ASU 2016-02 and all subsequent ASUs that modified accounting standards Topic 842 using a modified retrospective adoption method, in which right-of-use ("ROU") assets and lease liabilities are recognized in the condensed consolidated balance sheets. Under the effective date transition method, financial results reported in periods prior to fiscal year 2020 are unchanged. The Company also elected the package of practical expedients permitted under the standard, which does not require reassessment of prior conclusions related to contracts containing a lease, lease classification and initial direct lease costs. As an ongoing accounting policy election, the Company will exclude short-term leases (terms of 12 months or less) from the balance sheet presentation and will account for non-lease and lease components in a contract as a single lease component for most asset classes. All leases in which the Company is the lessee are classified as operating leases, and the Company does not have any finance leases or sublease agreements. Additionally, the Company does not have any leases in which it is the lessor. The adoption of the new standard had a significant impact on the Company's condensed consolidated balance sheet due to the recognition of approximately $41 million of lease liabilities with corresponding ROU assets for operating leases. The new standard did not have a significant impact on the condensed consolidated statements of operations or cash flows, and did not impact our debt covenant compliance under our current credit agreements. The Company determines if an arrangement is a lease at inception. The Company leases certain facilities and machinery and equipment under long-term, non-cancelable operating leases. As of June 26, 2020, the Company had approximately 200 leases, with remaining terms ranging from less than one year to 15 years. 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 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 new 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. As of June 26, 2020, the components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations were as follows:
Included in the amounts in the table above, were rent expense to related parties of $246 and $739 for the three and nine months ended June 26, 2020, respectively. As of June 26, 2020, the Company did not have any finance leases. There were no significant new leases entered into during the quarter ended June 26, 2020. Supplemental balance sheet, cash flow, and other information related to operating leases was as follows:
Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at June 26, 2020 were as follows:
As of June 26, 2020, the Company did not have any additional significant operating leases commitments that have not yet commenced. Disclosures related to periods prior to adoption of Topic 842 Rental expense under all leases was $2,351 and $7,029 for the three and nine months ended June 28, 2019, respectively. Rent expense to related parties was $249 and $748 for the three and nine months ended June 28, 2019, respectively. Future minimum rent commitments under non-cancelable operating leases with an initial lease term in excess of one year at June 28, 2019 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION (Policies) |
9 Months Ended |
|---|---|
Jun. 28, 2020 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| 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 26, 2020 and June 28, 2019, and their results of operations for the three and nine month periods then ended and cash flows for the nine month periods then ended. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2019 which was filed with the Securities and Exchange Commission on December 6, 2019. Due to seasonal variations and other factors, some of which are described herein, including related to the coronavirus (COVID-19) outbreak and resulting pandemic, the results of operations for the three and nine months ended June 26, 2020 are not necessarily indicative of the results to be expected for the Company’s full 2020 fiscal year. See “Seasonality” and "Coronavirus (COVID-19)" in the Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere herein for additional information. The Company considers all short-term investments in interest-bearing accounts and all securities and other instruments with an original maturity of three months or less, to be equivalent to cash. Cash equivalents are stated at cost which approximates market value. Short-term investments consist of certificates of deposit with original maturities greater than three months but less than one year. All monetary amounts, other than share and per share amounts, are stated in thousands.
|
| Coronavirus (COVID-19) | Coronavirus (COVID-19) In March 2020, the World Health Organization recognized the current coronavirus (COVID-19) outbreak as a global pandemic. In response to the COVID-19 outbreak, the governments of many countries, states, cities and other geographic regions have imposed varying degrees of restrictions on social and commercial activity, including travel, to promote social distancing in an effort to slow the spread of the illness. These measures have had a significant adverse impact upon many sectors of the economy, including manufacturing and retail commerce. In response to these measures and for the protection of our employees, we temporarily closed our manufacturing locations and warehouses at the beginning of the Company's third fiscal quarter which falls during our primary selling season. While as of June 26, 2020, we had resumed nearly all production and shipping activities under appropriate safety protocols, the period of suspended operations had an adverse impact on sales volumes and operating profits for the three and nine months then ended. Over the course of the fiscal third quarter, government mandates allowed us to re-open our manufacturing and distribution centers. While those mandates continued to emphasize social distancing measures to the general public, the Company began to see growing demand and improved sales volumes in the latter part of the quarter for certain of its outdoor recreation businesses. Nonetheless, the full extent to which the COVID-19 pandemic will impact our business, results of operations, and financial condition will depend on future developments, which are beyond our control and which remain highly uncertain and cannot be predicted. This includes, but is not limited to, the duration, spread, severity and impact of the COVID-19 pandemic, or future waves, increasing outbreaks or hot spots of the pandemic in our areas of operations or in key markets, the effects of the pandemic on our customers, consumers, suppliers and vendors and the remedial actions and stimulus measures adopted by federal, state and local governments in reaction to the pandemic. As the COVID-19 pandemic continues to impact various key regions of the world, even after it subsides, we may continue to experience adverse impacts to our business as a result of any economic recession that has occurred or may occur in the future. As a result, the Company cannot reasonably estimate the impact of the COVID-19 pandemic on Company operations and profitability at this time as the situation is dynamic and constantly changing. We continue to monitor evolving economic and general business conditions and the actual and potential impacts on our financial position, results of operations and cash flows.
|
| Recently adapted and issued accounting pronouncements | Recently adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). In July 2018, the FASB also issued ASU 2018-10 Codification Improvements to Topic 842, Leases and ASU 2018-11 Leases (Topic 842) Targeted Improvements. In February 2019, the FASB also issued ASU 2019-01 Leases (Topic 842): Codification Improvements. This ASU and the updates to this ASU require organizations to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. This guidance was effective for the Company in the first quarter of fiscal year 2020, and may be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements with certain practical expedients available. The Company adopted the provisions of these ASU's using the modified retrospective approach at the beginning of the first quarter of fiscal 2020, coinciding with the standard's effective date. The additional disclosures required by the ASU and its updates are included in Note 18 "Leases" of these Notes to the Condensed Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220), which allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. ASU No. 2018-02 was effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The ASU allowed for early adoption in any interim period after issuance of the update. The Company early adopted the ASU in the second quarter of fiscal 2019, and elected not to make this optional reclassification. Recently issued accounting pronouncements In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses (Topic 326)” and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05 (collectively Topic 326). Topic 326 requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. This replaces the existing incurred loss model with an expected loss model and requires the use of forward-looking information to calculate credit loss estimates. The amendments in this guidance are effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain amendments. Topic 326 must be adopted by applying a cumulative effect adjustment to retained earnings. The Company does not expect adoption of the new guidance to have a significant impact on its financial statements. In August 2018, the FASB issued ASU 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans (Topic 715), which modifies the disclosure requirements for employers that sponsor defined pension or postretirement plans. The amendments in this guidance are effective for fiscal years ending after December 15, 2020, with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on its disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, with early adoption permitted. The Company does not expect adoption of the new guidance to have a significant impact on its financial statements. |
| Revenues | REVENUES Adoption of Topic 606 In the first quarter of fiscal 2019, the Company adopted ASU 2014-09 and all subsequent ASUs that modified accounting standards Topic 606 using the modified retrospective adoption method. Upon adoption, the Company recorded a right to returns asset of $763 and a corresponding increase in the accrued return liability, resulting in an accrued returns liability of $2,725. The adoption of this new revenue standard did not otherwise have an impact on the Company's consolidated financial statements, and the timing and amount of its revenue recognition remained substantially unchanged under this new guidance. Revenue recognition Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; 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 26, 2020, the right to returns asset was $1,082 and the accrued returns liability was $3,207. At June 28, 2019, the right to returns asset was $1,170 and the accrued returns liability was $3,729. 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 16 for required disclosures of disaggregated revenue.
|
EARNINGS PER SHARE (“EPS”) (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends Declared | Dividends per share for the three and nine month periods ended June 26, 2020 and June 28, 2019 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||
| Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
| Schedule of Non-Vested Stock Activity | A summary of non-vested stock activity for the nine months ended June 26, 2020 related to the Company’s stock ownership plans is as follows:
|
||||||||||||||||||||||||||||||||||||||||||
| Schedule of RSU Activity | A summary of RSU activity for the nine months ended June 26, 2020 follows:
|
||||||||||||||||||||||||||||||||||||||||||
PENSION PLANS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Net Periodic Benefit Cost | The components of net periodic benefit cost related to Company sponsored defined benefit plans for the three and nine month periods ended June 26, 2020 and June 28, 2019 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Earnings Before Income Taxes, Income Tax Expense and Effective Income Tax Rate | For the three and nine months ended June 26, 2020 and June 28, 2019, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Tax Jurisdictions of Entities with Valuation Allowances | The significant tax jurisdictions that have a valuation allowance for the periods ended June 26, 2020 and June 28, 2019 were:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Income Tax Examinations | As of the date of this report, the following tax years remain open to examination by the respective significant tax jurisdictions:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Inventories | Inventories at the end of the respective periods consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
| Schedule of Goodwill | The changes in goodwill during the nine months ended June 26, 2020 and June 28, 2019 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||
WARRANTIES (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Warranty Activity | The following table summarizes the Company’s warranty activity for the nine months ended June 26, 2020 and June 28, 2019.
|
|||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Financial Assets Measured at Fair Value | The following table summarizes the Company’s financial assets measured at fair value as of June 26, 2020:
The following table summarizes the Company’s financial assets measured at fair value as of September 27, 2019:
The following table summarizes the Company’s financial assets measured at fair value as of June 28, 2019:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effect of Changes in the Fair Value of Financial Instruments | The effect of changes in the fair value of financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three and nine month periods ended June 26, 2020 and June 28, 2019 was:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENTS OF BUSINESS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Operations by Business Unit | A summary of the Company’s operations by business segment is presented below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes in AOCI by Component, Net of Tax | The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the three months ended June 26, 2020 were as follows:
The changes in AOCI by component, net of tax, for the three months ended June 28, 2019 were as follows:
The changes in AOCI by component, net of tax, for the nine months ended June 26, 2020 were as follows:
The changes in AOCI by component, net of tax, for the nine months ended June 28, 2019 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reclassifications out of AOCI | The reclassifications out of AOCI for the three months ended June 26, 2020 and June 28, 2019 were as follows:
The reclassifications out of AOCI for the nine months ended June 26, 2020 and June 28, 2019 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Lease Expense | As of June 26, 2020, the components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Right of Use Assets and Lease Liabilities | Supplemental balance sheet, cash flow, and other information related to operating leases was as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Maturities of Operating Lease Liabilities | Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at June 26, 2020 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Future Minimum Rent Commitments Under Operating Leases | Future minimum rent commitments under non-cancelable operating leases with an initial lease term in excess of one year at June 28, 2019 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands |
Jun. 28, 2020 |
Sep. 27, 2019 |
Jun. 28, 2019 |
|---|---|---|---|
| Receivables [Abstract] | |||
| Allowances for doubtful accounts receivable | $ 2,834 | $ 2,550 | $ 1,969 |
| Accounts receivable, net | $ 82,577 | $ 44,508 | $ 82,860 |
STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS (Schedule of Non-Vested Stock Activity) (Details) - Non-Vested Stock |
9 Months Ended |
|---|---|
|
Jun. 28, 2020
$ / shares
shares
| |
| Shares | |
| Beginning Balance (shares) | shares | 41,608 |
| Grants (in shares) | shares | 19,105 |
| Vested (shares) | shares | (20,221) |
| Ending Balance (shares) | shares | 40,492 |
| Weighted Average Grant Price | |
| Beginning Balance (USD per share) | $ / shares | $ 51.78 |
| Grants (USD per share) | $ / shares | 63.33 |
| Vested (USD per share) | $ / shares | 41.93 |
| Ending Balance (USD per share) | $ / shares | $ 62.15 |
STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS (Schedule of RSU Activity) (Details) - Restricted Stock Units (RSUs) |
9 Months Ended |
|---|---|
|
Jun. 28, 2020
$ / shares
shares
| |
| Number of RSUs | |
| Beginning Balance (shares) | shares | 58,708 |
| Grants (in shares) | shares | 27,517 |
| Vested (shares) | shares | (18,094) |
| Ending Balance (shares) | shares | 68,131 |
| Weighted Average Grant Price | |
| Beginning Balance (USD per share) | $ / shares | $ 62.13 |
| Grants (USD per share) | $ / shares | 64.51 |
| Vested (USD per share) | $ / shares | 43.12 |
| Ending Balance (USD per share) | $ / shares | $ 68.14 |
PENSION PLANS (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2020 |
Jun. 28, 2019 |
Jun. 28, 2020 |
Jun. 28, 2019 |
|
| Retirement Benefits [Abstract] | ||||
| Pension plan contributions | $ 44 | $ 44 | $ 132 | $ 134 |
| Components of net periodic benefit cost: | ||||
| Service cost | 0 | 0 | 0 | 0 |
| Interest on projected benefit obligation | 423 | 298 | 698 | 827 |
| Less estimated return on plan assets | 267 | 259 | 481 | 641 |
| Amortization of unrecognized losses (gains) | 321 | (31) | 403 | 246 |
| Net periodic benefit cost | $ 477 | $ 8 | $ 620 | $ 432 |
INCOME TAXES (Narrative) (Details) $ in Thousands |
Oct. 02, 2020
USD ($)
|
|---|---|
| Forecast | |
| Income Tax Contingency [Line Items] | |
| Accrued interest related to uncertain income tax positions | $ 100 |
INCOME TAXES (Summary of Earnings Before Income Taxes, Income Tax Expense and Effective Income Tax Rate) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2020 |
Jun. 28, 2019 |
Jun. 28, 2020 |
Jun. 28, 2019 |
|
| Income Tax Disclosure [Abstract] | ||||
| Profit before income taxes | $ 15,557 | $ 28,892 | $ 52,523 | $ 63,243 |
| Income tax expense | $ 2,688 | $ 6,826 | $ 12,837 | $ 15,733 |
| Effective income tax rate | 17.30% | 23.60% | 24.40% | 24.90% |
INVENTORIES (Details) - USD ($) $ in Thousands |
Jun. 28, 2020 |
Sep. 27, 2019 |
Jun. 28, 2019 |
|---|---|---|---|
| Inventory Disclosure [Abstract] | |||
| Raw materials | $ 46,232 | $ 45,168 | $ 42,702 |
| Work in process | 153 | 152 | 232 |
| Finished goods | 47,833 | 48,978 | 52,899 |
| Inventories | $ 94,218 | $ 94,298 | $ 95,833 |
GOODWILL (Details) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Jun. 28, 2020 |
Jun. 28, 2019 |
|
| Goodwill [Roll Forward] | ||
| Balance at beginning of period | $ 11,186 | $ 11,199 |
| Amount attributable to movements in foreign currency rates | (23) | (4) |
| Balance at end of period | $ 11,163 | $ 11,195 |
WARRANTIES (Details) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Jun. 28, 2020 |
Jun. 28, 2019 |
|
| Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
| Balance at beginning of period | $ 9,190 | $ 8,499 |
| Expense accruals for warranties issued during the period | 8,252 | 6,830 |
| Less current period warranty claims paid | 6,529 | 5,741 |
| Balance at end of period | $ 10,913 | $ 9,588 |
INDEBTEDNESS (Narrative) (Details) - USD ($) |
9 Months Ended | |||
|---|---|---|---|---|
Jun. 28, 2020 |
Sep. 27, 2019 |
Jun. 28, 2019 |
Nov. 15, 2017 |
|
| Debt Instrument [Line Items] | ||||
| Debt outstanding | $ 0 | $ 0 | $ 0 | |
| Financial Standby Letter of Credit | ||||
| Debt Instrument [Line Items] | ||||
| Letters of credit outstanding | $ 181,000 | $ 279,000 | ||
| Revolving Credit Facility | ||||
| Debt Instrument [Line Items] | ||||
| Maximum borrowing capacity | $ 125,000,000 | |||
| Interest rate | 1.20% | 3.40% | ||
| Revolving Credit Facility | Minimum | LIBOR | ||||
| Debt Instrument [Line Items] | ||||
| Margin percentage | 1.00% | |||
| Revolving Credit Facility | Maximum | LIBOR | ||||
| Debt Instrument [Line Items] | ||||
| Margin percentage | 1.75% | |||
| Revolving Credit Facility | Revolvers Borrowing Capacity Standard | ||||
| Debt Instrument [Line Items] | ||||
| Maximum borrowing capacity | 75,000,000 | |||
| Accordion feature | $ 50,000,000 | |||
| Unsecured Revolving Credit Facilities At Foreign Subsidiaries | ||||
| Debt Instrument [Line Items] | ||||
| Unsecured revolving credit facilities | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) - contract |
9 Months Ended | |
|---|---|---|
Jun. 28, 2020 |
Jun. 28, 2019 |
|
| Derivative [Line Items] | ||
| Number of foreign currency forward contracts (in contracts) | 0 | 0 |
| Geographic Concentration Risk | Revenue Benchmark | ||
| Derivative [Line Items] | ||
| Percent of revenues in foreign currency | 11.00% | |
| Geographic Concentration Risk | Revenue Benchmark | Euro | ||
| Derivative [Line Items] | ||
| Percent of revenues in foreign currency | 5.00% | |
| Geographic Concentration Risk | Revenue Benchmark | Canadian Dollars | ||
| Derivative [Line Items] | ||
| Percent of revenues in foreign currency | 5.00% | |
| Geographic Concentration Risk | Revenue Benchmark | Hong Kong, Dollars | ||
| Derivative [Line Items] | ||
| Percent of revenues in foreign currency | 1.00% |
FAIR VALUE MEASUREMENTS (Summary of Financial Assets) (Details) - USD ($) $ in Thousands |
Jun. 28, 2020 |
Sep. 27, 2019 |
Jun. 28, 2019 |
|---|---|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Rabbi trust assets | $ 19,493 | $ 19,092 | $ 18,981 |
| Level 1 | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Rabbi trust assets | 19,493 | 19,092 | 18,981 |
| Level 2 | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Rabbi trust assets | 0 | 0 | 0 |
| Level 3 | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Rabbi trust assets | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Effect of Changes in Financial Instruments) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2020 |
Jun. 28, 2019 |
Jun. 28, 2020 |
Jun. 28, 2019 |
|
| Rabbi trust assets | ||||
| Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
| Changes in fair value, (income)/loss | $ (2,732) | $ (649) | $ (398) | $ (355) |
FAIR VALUE MEASUREMENTS (Narrative) (Details) - Nonrecurring - USD ($) |
Jun. 28, 2020 |
Jun. 28, 2019 |
|---|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Assets | $ 0 | $ 0 |
| Liabilities | $ 0 | $ 0 |
REVENUE (Details) - USD ($) $ in Thousands |
Jun. 28, 2020 |
Sep. 27, 2019 |
Jun. 28, 2019 |
Dec. 28, 2018 |
|---|---|---|---|---|
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
| Contract with customer, asset | $ 1,082 | $ 1,170 | ||
| Contract with customer, liability | 5,409 | $ 4,440 | 6,243 | |
| Topic 606 | ||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
| Contract with customer, asset | $ 763 | |||
| Contract with customer, liability | $ 2,725 | |||
| Accrued Discounts And Returns | ||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
| Contract with customer, liability | $ 3,207 | $ 3,729 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassifications) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2020 |
Jun. 28, 2019 |
Jun. 28, 2020 |
Jun. 28, 2019 |
|
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
| Amortization of loss (gain) | $ 2,493 | $ 493 | $ (205) | $ 238 |
| Tax effects | (2,688) | (6,826) | (12,837) | (15,733) |
| Net income | 12,869 | 22,066 | 39,686 | 47,510 |
| Unamortized Loss on Defined Benefit Pension Plans | Reclassification out of Accumulated Other Comprehensive Income | ||||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
| Amortization of loss (gain) | 240 | (30) | 404 | 246 |
| Tax effects | (60) | 7 | (101) | (59) |
| Net income | $ 180 | $ (23) | $ 303 | $ 187 |
LEASES (Narrative) (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
|---|---|---|---|---|---|---|
|
Jun. 28, 2020
USD ($)
|
Jun. 28, 2019
USD ($)
|
Jun. 28, 2020
USD ($)
contract
|
Jun. 28, 2019
USD ($)
|
Sep. 27, 2019
USD ($)
|
Sep. 28, 2018
USD ($)
|
|
| Lessee, Lease, Description [Line Items] | ||||||
| Total net lease liability | $ 38,374 | $ 38,374 | ||||
| Right of use assets | $ 37,669 | $ 37,669 | $ 0 | |||
| Number of contracts | contract | 200 | |||||
| Rent expense | $ 2,351 | $ 7,029 | ||||
| Minimum | ||||||
| Lessee, Lease, Description [Line Items] | ||||||
| Remaining lease term | 1 year | 1 year | ||||
| Maximum | ||||||
| Lessee, Lease, Description [Line Items] | ||||||
| Remaining lease term | 15 years | 15 years | ||||
| Accounting Standards Update 2016-02 | ||||||
| Lessee, Lease, Description [Line Items] | ||||||
| Total net lease liability | $ 41,000 | |||||
| Right of use assets | $ 41,000 | |||||
| Affiliated Entity | ||||||
| Lessee, Lease, Description [Line Items] | ||||||
| Total net lease liability | $ 1,485 | $ 1,485 | ||||
| Operating lease, cost | $ 246 | $ 739 | ||||
| Rent expense | $ 249 | $ 748 | ||||
LEASES (Components of Lease Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
|---|---|---|
Jun. 28, 2020 |
Jun. 28, 2020 |
|
| Lease Cost | ||
| Operating lease costs | $ 1,792 | $ 5,355 |
| Short-term lease costs | 478 | 1,435 |
| Variable leases costs | 42 | 129 |
| Total lease cost | $ 2,312 | $ 6,919 |
LEASES (Other Information Related to Operating Leases) (Details) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Jun. 28, 2020 |
Sep. 27, 2019 |
|
| Operating leases: | ||
| Operating lease ROU assets | $ 37,669 | $ 0 |
| Current operating leases liabilities | 5,900 | 0 |
| Non-current operating lease liabilities | 32,474 | $ 0 |
| Total operating lease liabilities | $ 38,374 | |
| Weighted average remaining lease term (in years) | 10 years 6 months | |
| Weighted average discount rate | 2.86% | |
| Cash paid for amounts included in the measurement of lease liabilities | $ 4,726 |
LEASES (Future Minimum Rental Commitments Under Non-Cancelable Operating Leases) (Details) - USD ($) $ in Thousands |
Jun. 28, 2020 |
Jun. 28, 2019 |
|---|---|---|
| Finance Leases, After Adoption of 842: | ||
| Remainder of 2020 | $ 2,329 | |
| 2021 | 6,573 | |
| 2022 | 3,818 | |
| 2023 | 3,423 | |
| 2024 | 3,425 | |
| Thereafter | 23,353 | |
| Total undiscounted lease payments | 42,921 | |
| Less: Imputed interest | (4,547) | |
| Total net lease liability | 38,374 | |
| Operating Leases, Prior To Adoption of 842: | ||
| Remainder of 2019 | $ 1,931 | |
| 2020 | 7,187 | |
| 2021 | 5,835 | |
| 2022 | 3,719 | |
| 2023 | 2,517 | |
| Thereafter | 24,832 | |
| Total | 46,021 | |
| Affiliated Entity | ||
| Finance Leases, After Adoption of 842: | ||
| Remainder of 2020 | 281 | |
| 2021 | 1,152 | |
| 2022 | 193 | |
| 2023 | 0 | |
| 2024 | 0 | |
| Thereafter | 0 | |
| Total undiscounted lease payments | 1,626 | |
| Less: Imputed interest | (141) | |
| Total net lease liability | $ 1,485 | |
| Operating Leases, Prior To Adoption of 842: | ||
| Remainder of 2019 | 252 | |
| 2020 | 1,036 | |
| 2021 | 1,067 | |
| 2022 | 179 | |
| 2023 | 0 | |
| Thereafter | 0 | |
| Total | $ 2,534 |