Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 01, 2016 | Apr. 29, 2016 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 1, 2016 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 | |
Entity Registrant Name | JOHNSON OUTDOORS INC | |
Entity Central Index Key | 788,329 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Class A [Member] | ||
Entity Common Stock, Shares Outstanding | 8,808,905 | |
Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 1,212,382 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2016 | Apr. 03, 2015 | Apr. 01, 2016 | Apr. 03, 2015 | |
Net sales | $ 134,192 | $ 133,111 | $ 219,490 | $ 203,933 |
Cost of sales | 79,197 | 81,175 | 131,196 | 124,663 |
Gross profit | 54,995 | 51,936 | 88,294 | 79,270 |
Operating expenses: | ||||
Marketing and selling | 25,776 | 27,645 | 45,775 | 46,144 |
Administrative management, finance and information systems | 9,891 | 12,404 | 20,045 | 24,315 |
Research and development | 4,190 | 4,264 | 8,236 | 8,519 |
Total operating expenses | 39,857 | 44,313 | 74,056 | 78,978 |
Operating profit | 15,138 | 7,623 | 14,238 | 292 |
Interest income | (10) | (8) | (18) | (30) |
Interest expense | 297 | 316 | 487 | 503 |
Other expense (income) | 182 | 495 | (381) | (77) |
Profit (loss) before income taxes | 14,669 | 6,820 | 14,150 | (104) |
Income tax expense | 5,348 | 3,174 | 5,363 | 444 |
Net income (loss) | $ 9,321 | $ 3,646 | $ 8,787 | $ (548) |
Participating securities | ||||
Dilutive stock options and restricted stock units | ||||
Weighted average common shares - Dilutive | 9,848 | 9,725 | 9,821 | 9,703 |
Class A [Member] | ||||
Weighted average common shares - Basic: | ||||
Weighted average common shares - Basic | 8,636 | 8,513 | 8,609 | 8,491 |
Net income (loss) per common share - Basic: | ||||
Net loss per common share - Basic | $ 0.94 | $ 0.37 | $ 0.89 | $ (0.06) |
Net income (loss) per common share - Diluted: | ||||
Net loss per common share - Diluted | 0.93 | 0.36 | 0.88 | (0.06) |
Dividends declared per common share: | ||||
Dividends declared per common share | $ 0.08 | $ 0.08 | $ 0.16 | $ 0.15 |
Class B [Member] | ||||
Weighted average common shares - Basic: | ||||
Weighted average common shares - Basic | 1,212 | 1,212 | 1,212 | 1,212 |
Net income (loss) per common share - Basic: | ||||
Net loss per common share - Basic | $ 0.86 | $ 0.34 | $ 0.81 | $ (0.06) |
Net income (loss) per common share - Diluted: | ||||
Net loss per common share - Diluted | 0.93 | 0.36 | 0.88 | (0.06) |
Dividends declared per common share: | ||||
Dividends declared per common share | $ 0.07 | $ 0.07 | $ 0.15 | $ 0.14 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2016 | Apr. 03, 2015 | Apr. 01, 2016 | Apr. 03, 2015 | |
Comprehensive income (loss): | ||||
Net income (loss) | $ 9,321 | $ 3,646 | $ 8,787 | $ (548) |
Other comprehensive income (loss): | ||||
Foreign currency translation gain (loss) | 3,048 | (5,192) | 1,271 | (8,746) |
Change in pension plans, net of tax of $59, $98, $118 and $98, respectively | 97 | (13) | 193 | 72 |
Total other comprehensive income (loss) | 3,145 | (5,205) | 1,464 | (8,674) |
Total comprehensive income (loss) | $ 12,466 | $ (1,559) | $ 10,251 | $ (9,222) |
Condensed Consolidated Stateme4
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2016 | Apr. 03, 2015 | Apr. 01, 2016 | Apr. 03, 2015 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Change in pension plans, tax | $ 59 | $ 98 | $ 118 | $ 98 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 01, 2016 | Oct. 02, 2015 | Apr. 03, 2015 |
Current assets: | |||
Cash and cash equivalents | $ 50,938 | $ 69,159 | $ 48,906 |
Accounts receivable, net | 102,786 | 44,798 | 110,817 |
Inventories | 89,769 | 79,919 | 79,752 |
Other current assets | 4,573 | 4,845 | 5,764 |
Total current assets | 248,066 | 198,721 | 245,239 |
Property, plant and equipment, net of accumulated depreciation of $122,369, $116,902 and $109,915, respectively | 45,862 | 45,287 | 44,741 |
Deferred income taxes | 16,389 | 15,867 | 12,808 |
Goodwill | 16,672 | 14,292 | 14,309 |
Other intangible assets, net | 14,435 | 11,688 | 12,088 |
Other assets | 13,365 | 13,349 | 13,666 |
Total assets | $ 354,789 | $ 299,204 | $ 342,851 |
Current liabilities: | |||
Short-term debt | |||
Current maturities of long-term debt | $ 373 | $ 368 | $ 359 |
Accounts payable | 40,966 | 28,455 | 40,923 |
Accrued liabilities: | |||
Salaries, wages and benefits | 12,162 | 16,815 | 11,872 |
Accrued warranty | 4,735 | 4,301 | 4,219 |
Income taxes payable | 7,618 | 3,837 | 1,203 |
Other | 20,274 | 15,778 | 17,764 |
Total current liabilities | 86,128 | 69,554 | 76,340 |
Long-term debt, less current maturities | 37,172 | 7,062 | 55,333 |
Deferred income taxes | 1,266 | 1,182 | 1,221 |
Retirement benefits | 9,901 | 10,118 | 8,388 |
Other liabilities | 13,133 | 13,320 | 13,526 |
Total liabilities | $ 147,600 | $ 101,236 | $ 154,808 |
Shareholders' equity: | |||
Preferred stock: none issued | |||
Common stock: | |||
Capital in excess of par value | $ 70,084 | $ 69,545 | $ 68,672 |
Retained earnings | 132,374 | 125,173 | 115,541 |
Accumulated other comprehensive income | 5,101 | 3,637 | 4,104 |
Treasury stock at cost, shares of Class A common stock: 33,599, 33,241 and 26,510, respectively | (872) | (889) | (776) |
Total shareholders' equity | 207,189 | 197,968 | 188,043 |
Total liabilities and shareholders' equity | 354,789 | 299,204 | 342,851 |
Class A [Member] | |||
Common stock: | |||
Shares issued and outstanding | 441 | 441 | 441 |
Class B [Member] | |||
Common stock: | |||
Shares issued and outstanding | $ 61 | $ 61 | $ 61 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 01, 2016 | Oct. 02, 2015 | Apr. 03, 2015 |
Property, plant and equipment, accumulated depreciation | $ 122,369 | $ 116,902 | $ 111,439 |
Class A [Member] | |||
Common stock, shares issued | 8,808,905 | 8,770,612 | 8,792,341 |
Common stock, shares outstanding | 8,808,905 | 8,770,612 | 8,792,341 |
Treasury stock, shares | 33,599 | 33,241 | 26,510 |
Class B [Member] | |||
Common stock, shares issued | 1,212,382 | 1,212,382 | 1,212,382 |
Common stock, shares outstanding | 1,212,382 | 1,212,382 | 1,212,382 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 01, 2016 | Apr. 03, 2015 | |
CASH USED FOR OPERATING ACTIVITIES | ||
Net income (loss) | $ 8,787 | $ (548) |
Adjustments to reconcile net income (loss) to net cash used for operating activities: | ||
Depreciation | 5,220 | 5,243 |
Amortization of intangible assets | 430 | 428 |
Amortization of deferred financing costs | 61 | 61 |
Stock based compensation | 947 | 967 |
Deferred income taxes | (302) | 432 |
Change in operating assets and liabilities: | ||
Accounts receivable, net | (57,481) | (67,982) |
Inventories, net | (9,080) | (15,692) |
Accounts payable and accrued liabilities | 16,146 | 17,550 |
Other current assets | 377 | 1,499 |
Other non-current assets | 23 | (61) |
Other long-term liabilities | (444) | 6 |
Other, net | (179) | 255 |
Cash used for operating activities | (35,495) | (57,842) |
CASH USED FOR INVESTING ACTIVITIES | ||
Payments for purchase of business | (5,250) | |
Capital expenditures | (5,608) | (4,163) |
Cash used for investing activities | (10,858) | (4,163) |
CASH PROVIDED BY FINANCING ACTIVITIES | ||
Net borrowings from revolving credit lines | 30,000 | 48,084 |
Principal payments on term loans and other long-term debt | (180) | (183) |
Common stock transactions | 22 | (175) |
Dividends paid | (1,583) | (1,483) |
Purchases of treasury stock | (476) | (501) |
Cash provided by financing activities | 27,783 | 45,742 |
Effect of foreign currency rate changes on cash | 349 | (5,624) |
Decrease in cash and cash equivalents | (18,221) | (21,887) |
CASH AND CASH EQUIVALENTS | ||
Beginning of period | 69,159 | 70,793 |
End of period | $ 50,938 | $ 48,906 |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Apr. 01, 2016 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | 1 Basis of Presentation The condensed consolidated financial statements included herein are unaudited. In the opinion of management, these statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Johnson Outdoors Inc. and subsidiaries (collectively, the “Company”) as of April 1, 2016 and April 3 , 2015, and their results of operations for the three and six month periods then ended and cash flows for the six month periods then ended . These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended October 2, 2015 which was filed with the Securities and Exchange Commission on December 8, 2015 , and amended by Amendment No. 1 filed on December 11, 2015 with the Securities and Exchange Commission . Due to seasonal variations and other factors, the results of operations for the three and six months ended April 1, 2016 are not necessarily indicative of the results to be expected for the Company's full 201 6 fiscal year. See “Seasonality” in the Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere herein for additional information. All monetary amounts, other than share and per share amounts, are stated in thousands. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Apr. 01, 2016 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | 2 Accounts Receivable Accounts receivable are stated net of allowances for doubtful accounts of $2,310 , $2,329 and $2,338 as of the periods ended April 1, 2016 , October 2, 2015 and April 3, 2015, respectively. The increase in net accounts receivable to $102,786 as of April 1, 2016 from $44,798 as of October 2, 2015 is attributable to the seasonal nature of the Company's business. The determination of the allowance for doubtful accounts is based on a combination of factors. In circumstances where specific collection concerns about a receivable exist, a reserve is established to value the affected account receivable at an amount the Company believes will be collected. For all other customers, the Company recognizes allowances for doubtful accounts based on historical experience of bad debts as a percent of accounts receivable outstanding for each business unit. 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")
Earnings Per Share ("EPS") | 6 Months Ended |
Apr. 01, 2016 | |
Earnings Per Share ("EPS") [Abstract] | |
Earnings Per Share ("EPS") | 3 Earnings Per Share (“EPS”) Net income or loss per share of Class A common stock and Class B common stock is computed using the two-class method. Grants of restricted stock which receive non-forfeitable dividends are classified as participating securities and are required to be included as part of the basic weighted average share calculation under the two-class method. Holders of Class A common stock are entitled to cash dividends equal to 110% of all dividends declared and paid on each share of Class B common stock. The Company grants shares of unvested restricted stock in the form of Class A shares, which carry the same distribution rights as the Class A common stock described above. As such, the undistributed earnings for each period are allocated to each class of common stock based on the proportionate share of the amount of cash dividends that each such class is entitled to receive. Basic EPS Basic net income or loss per share is computed by dividing net income or loss allocated to Class A common stock and Class B common stock by the weighted-average number of shares of Class A common stock and Class B common stock outstanding, respectively. In periods with cumulative year to date net income and undistributed income, the undistributed income for each period is allocated to each class of common stock based on the proportionate share of the amount of cash dividends that each such class is entitled to receive. In periods where there is a cumulative year to date net loss or no undistributed income because distributions through dividends exceed net income, Class B shares are treated as anti-dilutive and, therefore, net losses are allocated equally on a per share basis among all participating securities. For the three and six month periods ended April 1, 2016 and the three month period ended April 3, 2015, basic income per share for the Class A and Class B shares has been presented using the two class method and reflects the allocation of undistributed income described above. For the six month period ended April 3, 2015, basic loss per share for Class A and Class B shares was the same because there were no cumulative undistributed earnings on a year to date basis and basic loss per share for Class A and Class B shares has been presented using the two class method 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. For the six month period ended April 3, 2015, the effects of stock options and non-vested restricted stock units are excluded from the diluted loss per share calculation as their inclusion would have been anti-dilutive. Stock options 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 were 0 and 9,216 for the three and six month periods ended April 1, 2016 and April 3, 2015, respectively. 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 170,357 and 278,659 for the three months ended April 1, 2016 and April 3, 2015, respectively, and 178,435 and 293,907 for the six months ended April 1, 2016 and April 3, 2015, respectively. Restricted stock units 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 were 48,456 and 10,088 for the three month periods ended April 1, 2016 and April 3, 2015, respectively, and 48,456 and 10,088 for the six month periods ended April 1, 2016 and April 3, 2015, respectively. |
Stock-Based Compensation And St
Stock-Based Compensation And Stock Ownership Plans | 6 Months Ended |
Apr. 01, 2016 | |
Stock-Based Compensation And Stock Ownership Plans [Abstract] | |
Stock-Based Compensation And Stock Ownership Plans | 4 Stock-Based Compensation and Stock Ownership Plans The Company’s current stock ownership plans allow for issuance of stock options to acquire shares of Class A common stock by key executives and non-employee directors. Current plans also allow for issuance of shares of restricted stock, restricted stock units or stock appreciation rights in lieu of stock options. Under the Company’s 2010 Long-Term Stock Incentive Plan and the 2012 Non-Employee Director Stock Ownership Plan (the only two plans where shares remain available for equity incentive awards) there were 581,832 shares of the Company’s Class A common stock available for future grant to key executives and non-employee directors at April 1, 2016 . Stock Options To the extent outstanding, a ll of the Company’s stock options outstanding during the periods covered by this Report are fully vested, with no further compensation expense to be recorded. There were no grants of stock options during either of the six month periods ended April 1, 2016 or April 3, 2015. As of April 1, 2016, no further stock options were outstanding. Non-vested Stock All shares of non-vested stock awarded by the Company have been granted at their fair market value on the date of grant and vest within two to five years after the grant date. The fair value at date of grant is based on the number of shares granted and the average of the Company’s high and low Class A common stock price on the date of grant or, if the Company’s Class A shares did not trade on the date of grant, the average of the Company’s high and low Class A common stock price on the last preceding date on which the Company’s Class A shares traded. A summary of non-vested stock activity for the six months ended April 1, 2016 related to the Company’s stock ownership plans is as follows: Weighted Average Shares Grant Price Non-vested stock at October 2, 2015 214,027 $ 21.43 Non-vested stock grants 54,850 24.16 Restricted stock vested (98,520) 21.48 Non-vested stock at April 1, 2016 170,357 23.62 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 19,973 and 16,915 during the six month periods ended April 1, 2016 and April 3, 2015, respectively. Stock compensation expense, net of forfeitures, related to non-vested stock was $332 and $436 for the three month periods ended April 1, 2016 and April 3, 2015, respectively, and $680 and $839 for the six month periods ended April 1, 2016 and April 3, 2015, respectively. Unrecognized compensation cost related to non-vested stock as of April 1, 2016 was $2,075 , which amount will be amortized to expense through November 2019 or adjusted for changes in future estimated or actual forfeitures. The fair value of restricted stock vested during the six month periods ended April 1, 2016 and April 3, 2015 was $2,349 and $ 2,346 , respectively. Restricted Stock Units All restricted stock units awarded by the Company have been granted at their fair market value on the date of grant and vest within one or three years after the grant date. The fair value at 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. There were 48,456 restricted stock units unvested and outstanding as of April 1, 2016 with a weighted average grant date fair value of $23.65 . There were 10,088 restricted stock units unvested and outstanding as of April 3, 2015 with a weighted average grant date fair value of $31.23 . The Company issued 14,070 restricted stock units at a weighted average grant price of $22.39 during the three month period ended April 1, 2016 and 48,456 restricted stock units at a weighted average grant price of $23.65 during the six month period ended April 1, 2016. The Company issued 7,336 restricted stock units at a weighted average grant price of $33.40 during the three and six month periods ended April 3, 2015. Stock compensation expense, net of forfeitures, related to restricted stock units was $137 for the three months ended April 1, 2016 and $267 for the six months ended April 1, 2016. Stock compensation expense, net of forfeitures, related to restricted stock units was $67 for the three months ended April 3, 2015 and $128 for the six month period ended April 3, 2015 . Unrecognized compensation cost related to non-vested restricted stock units as of April 1, 2016 was $ 981 , which amount will be amortized to expense through Sept ember 201 8 or adjusted for changes in future estimated or actual forfeitures. Employees’ Stock Purchase Plan The Company’s shareholders ha v e adopted the Johnson Outdoors Inc. 2009 Employees’ Stock Purchase Plan 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 at the end of the offering period, whichever is lower. The Company did not issue any shares of Class A common stock under the Employees’ Stock Purchase Plan during any of the three or six month periods ended April 1, 2016 or April 3, 2015. |
Pension Plans
Pension Plans | 6 Months Ended |
Apr. 01, 2016 | |
Pension Plans [Abstract] | |
Pension Plans | 5 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 components of net periodic benefit cost related to Company sponsored defined benefit plans for the three and six month periods ended April 1, 2016 and April 3, 2015 were as follows: Three Months Ended Six Months Ended April 1 April 3 April 1 April 3 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ - $ - $ - $ - Interest on projected benefit obligation 277 270 554 539 Less estimated return on plan assets 299 220 598 494 Amortization of unrecognized losses 155 86 310 171 Net periodic benefit cost $ 133 $ 136 $ 266 $ 216 |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 01, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 6 Income Taxes For the three and six months ended April 1, 2016 and April 3, 2015, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows: Three Months Ended Six Months Ended April 1 April 3 April 1 April 3 (thousands, except tax rate data) 2016 2015 2016 2015 Profit (loss) before income taxes $ 14,669 $ 6,820 $ 14,150 $ (104) Income tax expense 5,348 3,174 5,363 444 Effective income tax rate 36.5% 46.5% 37.9% -426.9% The change in the Company’s effective tax rate for the three months ended April 1, 2016 versus the prior year three month period was due to variances in income for entities with a valuation allowance and the unfavorable discrete state tax expense items recorded in the prior year three month period. The change in the Company’s effective tax rate for the six months ended April 1, 2016 versus the prior year to date period was primarily due to the impact of positive earnings in the current year periods compared to negative earnings in the prior year to date period. Variances in income or loss for entities that have a valuation allowance, primarily in non-US tax jurisdictions, will drive fluctuations in the effective tax rate. The impact of the Company’s operations in these foreign locations is removed from 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 tax jurisdictions that have a valuation allowance for the periods ended April 1, 2016 and April 3, 2015 were: April 1 April 3 2016 2015 Australia France France Indonesia Japan Italy Netherlands Japan New Zealand Netherlands Spain New Zealand Switzerland Spain 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 2016 fiscal year tax expense is anticipated to include approximately $400 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 $200 related to uncertain income tax positions for the fiscal year ending September 30, 2016. The Company files income tax returns, including returns for its subsidiaries, with federal, state, local and foreign taxing jurisdictions. The Company is currently undergoing income tax examinations in Italy and Germany. As of the date of this report, the following tax years remain subject to examination by the respective tax jurisdictions: Jurisdiction Fiscal Years United States 2012 - 2015 Canada 2011 - 2015 France 2011 - 2015 Germany 2010 - 2015 Italy 2010 - 2015 Japan 2012 - 2015 Switzerland 2005 - 2015 Pursuant to ASU No. 2015-17 , t he Company reclassified current deferred tax assets of $ 8 , 6 13 and $1 0,649 to non-current deferred tax assets , as of April 3 , 201 5 and October 2, 2015, respectively. See “Note 14 – New Accounting Pronouncements” for additional information. |
Inventories
Inventories | 6 Months Ended |
Apr. 01, 2016 | |
Inventories [Abstract] | |
Inventories | 7 Inventories Inventories at the end of the respective periods consisted of the following: April 1 October 2 April 3 2016 2015 2015 Raw materials $ 33,028 $ 34,711 $ 34,655 Work in process 155 24 121 Finished goods 56,586 45,184 44,976 $ 89,769 $ 79,919 $ 79,752 |
Goodwill
Goodwill | 6 Months Ended |
Apr. 01, 2016 | |
Goodwill [Abstract] | |
Goodwill | 8 Goodwill The changes in goodwill during the six months ended April 1, 2016 and April 3, 2015 were as follows: April 1 April 3 2016 2015 Balance at beginning of period $ 14,292 $ 14,416 Acquisitions 2,338 - Amount attributable to movements in foreign currency rates 42 (107) Balance at end of period $ 16,672 $ 14,309 We evaluate the carrying value of long-lived assets, including intangible assets subject to amortization, when events and circumstances warrant such a n evaluation . During the second quarter of fiscal 2016, the Company re-evaluated its projections for its Diving reporting unit, based on lower than anticipated results due to continuing market dislocation and economic factors. In conducting this analysis, the Company evaluated its cash flows for the Diving reporting unit over a five -year period. Based on the Company’s goodwill assessment, the fair value of the Diving reporting unit exceeded its carrying value by approximately 9% . The Company believes its assumptions are reasonable, however, the fair value of the reporting unit is close to its carrying amount, including goodwill, and is sensitive to changes in assumptions. There can be no assurance that its estimates and assumptions made for purposes of its goodwill impairment testing, at the annual date and the interim testing date, will prove to be accurate predictions of the future. A sustained decline in Diving sales, unfavorable operating margins, lack of new product acceptance by consumers, changes in customer trends, an increase in the discount rate, and/or a decrease in our projected long-term growth rates used in the discounted c ash flow model could result in significant changes to the goodwill impairment analysis going forward, including a potential significant goodwill impairment charge during a future statement period . |
Warranties
Warranties | 6 Months Ended |
Apr. 01, 2016 | |
Warranties [Abstract] | |
Warranties | 9 Warranties The Company provides warranties on certain of its products as they are sold. The following table summarizes the Company's warranty activity for the six months ended April 1, 2016 and April 3, 2015. April 1 April 3 2016 2015 Balance at beginning of period $ 4,301 $ 4,078 Expense accruals for warranties issued during the period 2,337 2,304 Less current period warranty claims paid 1,903 2,163 Balance at end of period $ 4,735 $ 4,219 |
Contingencies
Contingencies | 6 Months Ended |
Apr. 01, 2016 | |
Contingencies [Abstract] | |
Contingencies | 10 CONTINGENCIES The Company is subject to various legal actions and proceedings in the normal course of business, including those related to commercial disputes, product liability, intellectual property and regulatory matters. The Company is insured against loss for certain of these matters. Although litigation is subject to many uncertainties and the ultimate exposure with respect to these matters cannot be ascertained, management does not believe the final outcome of any pending litigation will have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company. See “Part II-Other Information, Item 1-Legal Proceedings” for additional information on certain litigation commenced by the Company against a third party. |
Indebtedness
Indebtedness | 6 Months Ended |
Apr. 01, 2016 | |
Indebtedness [Abstract] | |
Indebtedness | 11 Indebtedness Debt was comprised of the following at April 1, 2016 , October 2, 2015 , and April 3, 2015: April 1 2016 October 2 2015 April 3 2015 Term loans $ 7,251 $ 7,430 $ 7,608 Revolvers 30,000 - 48,084 Other 294 - - Total debt 37,545 7,430 55,692 Less current portion of long term debt 373 368 359 Less short term debt - - - Total long-term debt $ 37,172 $ 7,062 $ 55,333 Term Loans The Company’s term loans have a maturity date of September 29, 2029 . Each term loan requires monthly payments of principal and interest. Interest on the aggregate outstanding amount of the term loans is based on the prime rate plus an applicable margin. The interest rate in effect on the term loans was 5.5 % and 5.25% at April 1, 2016 and April 3, 2015, respectively. The term loans are guaranteed in part under the United States Department of Agriculture Rural Development program and are secured with a first priority lien on land, buildings, machinery and equipment of the Company’s domestic subsidiaries and a second lien on working capital and certain patents and trademarks of the Company and its subsidiaries. Any proceeds from the sale of secured property are first applied against the related term loans and then against the Revolvers (as defined below). The Company’s term loans include covenants related to its current ratio, debt to net worth ratio, fixed charge ratio, minimum net worth and capital expenditures. The aggregate term loan borrowings are subject to a pre-payment penalty. The penalty is currently 4 % of the pre-payment amount, and the penalty will decrease by 1 % annually on the anniversary date of the effective date of the applicable loan agreement. Revolvers On September 16, 2013 , the Company and certain of its subsidiaries entered into a credit facility with PNC Bank National Association and certain other lenders. This credit facility consists of a Revolving Credit Agreement dated September 16, 2013 among the Company, certain of the Company’s subsidiaries, PNC Bank National Association, as lender and as administrative agent, and the other lenders named therein (the “Revolving Credit Agreement” or “Revolver”). The Revolver has an expiration date of September 16, 2018 and provides for borrowing of up to an aggregate principal amount not to exceed $90,000 with an accordion feature that gives the Company the option to increase the maximum seasonal financing availability subject to the conditions of the Revolving Credit Agreement and subject to the approval of the lenders. The Revolver imposes a seasonal borrowing limit such that borrowings may not exceed $60,000 from the period June 30 th through October 31 st of each year under the agreement . The interest rate on the Revolver resets each quarter and is based on LIBOR plus an applicable margin. The applicable margin ranges from 1.25 percent to 2.00 percent and is dependent on the Company’s leverage ratio for the trailing twelve month period . The interest rate on the Revolver at April 1, 2016 and April 3, 2015 was approximately 1.7% and 1.4% , respectively. The Revolver is secured with a first priority lien on working capital assets and certain patents and trademarks of the Company and its subsidiaries and a second priority lien on land, buildings, machinery and equipment of the Company’s domestic subsidiaries. Under the terms of the Revolver, the Company is required to comply with certain financial and non-financial covenants. The Revolving Credit Agreement limits asset or stock acquisitions to no more than $20,000 in the event that the Company’s consolidated leverage ratio is greater than 2.5 times. No limits are imposed if the Company’s consolidated leverage ratio is less than 2.5 times and the remaining borrowing availability under the Revolver is greater than $10,000 at the time of the acquisition . The Revolving Credit Agreement limits the amount of restricted payments (primarily dividends and repurchases of common stock) made during each fiscal year. The Company may declare and pay dividends in accordance with historical practices, but in no event may the aggregate amount of all dividends or repurchases of common stock exceed $10,000 in any fiscal year . The Revolving Credit Agreement restricts the Company’s ability to incur additional debt and includes maximum leverage ratio and minimum interest coverage ratio covenants . Other Borrowings The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of April 1, 2016 or April 3, 2015. The Company utilizes letters of credit primarily as security for the payment of future claims under its workers’ compensation insurance, which totaled approximately $ 680 and $646 at April 1, 2016 and April 3, 2015, respectively. The Company had no unsecured lines of credit as of April 1, 2016 or April 3, 2015. Aggregate scheduled maturities of long-term debt as of April 1, 2016 , for the remainder of fiscal 2016 and subsequent fiscal years, were as follows: Fiscal Year 2016 $ 152 2017 381 2018 30,403 2019 426 2020 743 Thereafter 5,440 Total $ 37,545 Balances carried on the Revolver not in excess of the seasonal borrowing limit may be repaid at the Company’s discretion at any time through the maturity date. Interest paid for the three month periods ended April 1, 2016 and April 3, 2015 was $267 and $256 , respectively. Interest paid for the six month periods ended April 1, 2016 and April 3, 2015 was $402 and $412 , respectively. Based on the borrowing rates currently available to the Company for debt with similar terms and maturities, the fair value of the Company’s long-term debt as of April 1, 2016 and April 3, 2015 approximated its carrying value. |
Derivative Instruments And Hedg
Derivative Instruments And Hedging Activities | 6 Months Ended |
Apr. 01, 2016 | |
Derivative Instruments And Hedging Activities [Abstract] | |
Derivative Instruments And Hedging Activities | 12 Derivative Instruments and Hedging Activities The following disclosures describe the Company’s objectives in using derivative instruments, the business purpose or context for using derivative instruments, and how the Company believes the use of derivative instruments helps achieve the stated objectives. In addition, the following disclosures describe the effects of the Company’s use of derivative instruments and hedging activities on its financial statements. Foreign Exchange Risk The Company has significant foreign operations, for which the functional currencies are denominated primarily in euros, Swiss francs, Japanese yen, 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 15% of the Company’s revenues for the six month period ended April 1, 2016 were denominated in currencies other than the U.S. dollar. Approximately 6% were denominated in euros, 5% were denominated in Canadian dollars and 2% were denominated in Hong Kong dollars, with the remaining revenues denominated in various other foreign currencies. Changes in foreign currency exchange rates can cause the Company to experience unexpected financial losses or cash flow needs. The Company may mitigate a portion of the fluctuations in certain foreign currencies through the use of foreign currency forward contracts. Foreign currency forward contracts enable the Company to lock in the foreign currency exchange rate to be paid or received for a fixed amount of currency at a specified date in the future. The Company may use such foreign currency forward contracts to mitigate the risk associated with changes in foreign currency exchange rates on financial instruments and known commitments, including commitments for inventory purchases, denominated in foreign currencies. As of April 1, 2016 and April 3, 2015, the Company held no foreign currency forward contracts. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Apr. 01, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 13 Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy has been established based on three levels of inputs, of which the first two are considered observable and the last unobservable. · Level 1 - Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets or liabilities. · Level 2 - Inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments. · Level 3 - Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own assumptions of the data that market participants would use in pricing the asset or liability, based on the best information available in the circumstances. The carrying amounts of cash, cash equivalents, accounts receivable, and accounts payable approximated their fair values at April 1, 2016 , October 2, 2015 and April 3, 2015 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. The mark to market adjustments are recorded in “Other expense (income), net” in the accompanying Condensed Consolidated Statements of Operations. Goodwill and Other Intangible Assets In assessing the recoverability of the Company’s goodwill and other indefinite lived intangible assets, the Company estimates the future discounted cash flows of the businesses to which such goodwill and intangibles relate. When estimated future discounted cash flows are less than the carrying value of the net assets and related goodwill, an impairment test is performed to measure and recognize the amount of the impairment loss, if any. In determining estimated future cash flows, the Company makes assumptions regarding anticipated financial position, future earnings, and other factors to determine the fair value of the respective assets. This calculation is highly sensitive to changes in key assumptions and could result in a future impairment charge. The Company will continue to evaluate whether circumstances and events have changed to the extent that they require the Company to conduct an interim test of goodwill. In particular, if the Company’s business units do not achieve short term revenue and gross margin goals, an interim impairment test may be triggered which could result in a goodwill impairment charge in future periods. The following table summarizes the Company's financial assets measured at fair value as of April 1, 2016: Level 1 Level 2 Level 3 Total Assets: Rabbi trust assets $ 11,536 $ - $ - $ 11,536 The following table summarizes the Company's financial assets measured at fair value as of October 2, 2015: Level 1 Level 2 Level 3 Total Assets: Rabbi trust assets $ 11,441 $ - $ - $ 11,441 The following table summarizes the Company's financial assets measured at fair value as of April 3, 2015: Level 1 Level 2 Level 3 Total Assets: Rabbi trust assets $ 11,893 $ - $ - $ 11,893 The effect of changes in the fair value of financial instruments on the Condensed Consolidated Statements of Operations for the three months ended April 1, 2016 and April 3, 2015 was: Location of loss (income) Three Months Ended recognized in Statement of April 1 April 3 Operations 2016 2015 Rabbi trust assets Other expense (income), net $ (9) $ (331) The effect of changes in the fair value of financial instruments on the Condensed Consolidated Statements of Operations for the six month periods ended April 1, 2016 and April 3, 2015 was: Location of (income) loss Six Months Ended recognized in Statement of April 1 April 3 Operations 2016 2015 Rabbi trust assets Other expense (income), net $ 54 $ (449) There were no assets or liabilities measured at fair value on a non-recurring basis in periods subsequent to their initial recognition for either of the three month periods ended April 1, 2016 or April 3, 2015. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Apr. 01, 2016 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | 14 New Accounting Pronouncements In May 2014 , the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) issued authoritative guidance under ASU 2014-09, Revenue from Contracts with Customers, which supersedes existing revenue recognition requirements and provides a new comprehensive revenue recognition model. The underlying principle of the new standard requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects to receive in exchange for those goods or services. This ASU will be adopted by the Company during the first quarter of fiscal 2018. The Company is currently evaluating the impact that this standard will have on the consolidated financial statements. On September 25, 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, requiring an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined and to present or disclose the portion of the amount of adjustment recorded in current-period earnings by the line item where the adjustment would have been recorded in previous reporting periods if the adjustment had been recognized as of the acquisition date. The Company has elected to adopt th is accounting standard at the beginning of the second quarter of fiscal 2016. On November 20, 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes.” Pursuant to this update, all deferred tax assets and liabilities, and any related valuation allowances are required to be classified as non-current on the balance sheet. The classification change for all deferred taxes as non-current simplifies entities’ processes as it eliminates the need to separately identify the net current and net non-current deferred tax asset or liability in each jurisdiction and allocate valuation allowances. The Company elected to retrospectively adopt this accounting standard in the beginning of the first quarter of fiscal 2016 and as a result, prior periods in our Consolidated Financial Statements were adjusted. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The amendments in this update will increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is evaluating the effect, if any, of this standard on its financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. Excess tax benefits for share-based payments will be recorded as a reduction of income taxes and reflected in operating cash flows upon the adoption of this ASU. Excess tax benefits are recorded in equity and as financing activity under the current rules. The guidance will be effective for annual reporting periods beginning after December 15, 2016 and interim periods within those fiscal years with early adoption permitted. We are evaluating the impact of the future adoption of this standard on our consolidated financial statements. |
Segments Of Business
Segments Of Business | 6 Months Ended |
Apr. 01, 2016 | |
Segments Of Business [Abstract] | |
Segments Of Business | 15 Segments of Business The Company conducts its worldwide operations through separate business units, 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 six months ended April 1, 2016, net sales to one customer of the Company’s Marine Electronics, Outdoor Equipment and Watercraft segments represented approximately $22,500 of the Company’s consolidated revenues. The Company had no single customer that represented more than 10% of its total net sales during the six month period ended April 3, 2015. 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 unit is presented below: Three Months Ended Six Months Ended April 1 April 3 April 1 April 3 October 2 2016 2015 2016 2015 2015 Net sales: Marine Electronics: Unaffiliated customers $ 90,865 $ 89,226 $ 149,423 $ 132,755 Interunit transfers 128 112 170 126 Outdoor Equipment: Unaffiliated customers 11,609 12,149 17,915 18,522 Interunit transfers 7 8 15 17 Watercraft: Unaffiliated customers 14,730 13,893 21,103 19,341 Interunit transfers 21 13 26 20 Diving Unaffiliated customers 16,836 17,708 30,845 33,137 Interunit transfers 224 205 507 290 Other / Corporate 152 135 204 178 Eliminations (380) (338) (718) (453) Total $ 134,192 $ 133,111 $ 219,490 $ 203,933 Operating profit (loss): Marine Electronics $ 17,283 $ 11,130 $ 22,978 $ 9,543 Outdoor Equipment 999 1,070 797 725 Watercraft 831 - 296 (1,026) Diving (704) (369) (2,578) (705) Other / Corporate (3,271) (4,208) (7,255) (8,245) $ 15,138 $ 7,623 $ 14,238 $ 292 Total assets (end of period): Marine Electronics $ 168,007 $ 170,510 $ 125,113 Outdoor Equipment 34,261 35,053 33,663 Watercraft 33,329 32,255 20,898 Diving 67,267 63,830 62,589 Other / Corporate 51,925 41,203 56,941 $ 354,789 $ 342,851 $ 299,204 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Apr. 01, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 16 ACCUMULATED OTHER COMPREHENSIVE INCOME The changes in Accumulated Other Comprehensive Income (AOCI) by component, net of tax, for the three months ended April 1, 2016 were as follows: Foreign Currency Translation Adjustment Unamortized Loss on Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2016 $ 8,476 (6,520) 1,956 Other comprehensive income before reclassifications 3,048 - 3,048 Amounts reclassified from accumulated other comprehensive income - 156 156 Tax effects - (59) (59) Balance at April 1, 2016 $ 11,524 $ (6,423) $ 5,101 The changes in AOCI by component, net of tax, for the six months ended April 1, 2016 were as follows: Foreign Currency Translation Adjustment Unamortized Loss on Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at October 2, 2015 $ 10,253 $ (6,616) $ 3,637 Other comprehensive loss before reclassifications 1,271 - 1,271 Amounts reclassified from accumulated other comprehensive income - 311 311 Tax effects - (118) (118) Balance at April 1, 2016 $ 11,524 $ (6,423) $ 5,101 The changes in AOCI by component, net of tax, for the three months ended April 3, 2015 were as follows: Foreign Currency Translation Adjustment Unamortized Loss on Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at January 2, 2015 $ 14,870 $ (5,561) $ 9,309 Other comprehensive loss before reclassifications (5,192) - (5,192) Amounts reclassified from accumulated other comprehensive income - 85 85 Tax effects - (98) (98) Balance at April 3, 2015 $ 9,678 $ (5,574) $ 4,104 The changes in AOCI by component, net of tax, for the six months ended April 3, 2015 were as follows: Foreign Currency Translation Adjustment Unamortized Loss on Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at October 3, 2014 $ 18,424 $ (5,646) $ 12,778 Other comprehensive income before reclassifications (8,746) - (8,746) Amounts reclassified from accumulated other comprehensive income - 170 170 Tax effects - (98) (98) Balance at April 3, 2015 $ 9,678 $ (5,574) $ 4,104 The reclassifications out of AOCI for the three month period ended April 1, 2016 were as follows: Statement of Operations Presentation Unamortized loss on defined benefit pension plans Amortization of loss $ 156 Cost of sales / Operating expense Tax effects (59) Income tax expense (benefit) Total reclassifications for the period $ 97 The reclassifications out of AOCI for the three month period ended April 3, 2015 were as follows: Statement of Operations Presentation Unamortized loss on defined benefit pension plans: Amortization of loss $ 85 Cost of sales / Operating expense Tax effects (98) Income tax expense (benefit) Total reclassifications for the period $ (13) The reclassifications out of AOCI for the six months ended April 1, 2016 were as follows: Statement of Operations Presentation Unamortized loss on defined benefit pension plans: Amortization of loss $ 311 Cost of sales / Operating expense Tax effects (118) Income tax expense Total reclassifications for the period $ 193 The reclassifications out of AOCI for the six months ended April 3, 2015 were as follows: Statement of Operations Presentation Unamortized loss on defined benefit pension plans: Amortization of loss $ 170 Cost of sales / Operating expense Tax effects (98) Income tax expense Total reclassifications for the period $ 72 |
Acquisition
Acquisition | 6 Months Ended |
Apr. 01, 2016 | |
Acquisition [Abstract] | |
Acquisition | 17. ACQUISITION On October 27, 2015 , the Company acquired all of the outstanding common stock of SeaBear GmbH (“SeaBear”) and related patents and other assets in a purchase transaction with SeaBear’s sole shareholder (the “Seller”). SeaBear, founded and based in Leoben, Austria, specializing in the development of underwater instrumentation through unique application of existing, new and emerging technologies. The approximately $5,250 acquisition cost was funded with existing cash and credit facilities. Approximately $1,115 of the purchase price was paid into a segregated escrow account which was set aside to fund potential indemnity claims that may be made by the Company against the Seller in connection with the inaccuracy of certain representations and warranties made by the Seller or related to the breach or nonperformance of certain other actions, agreements or conditions related to the acquisition, for a period of 18 months from the acquisition date. The Company cannot estimate the probability or likelihood of bringing such an indemnity claim against the Seller or any related costs at this time. Under certain circumstances, if government grants made to SeaBear prior to the closing are required to be repaid, the repayment will be funded by the escrow account. The remaining escrow balance, if any, net of any indemnity claim or grant repayment then pending, will be released to the Seller once the 18 month period has lapsed. The Company believes that sales of SeaBear’s innovative diving technology can be expanded through the Company’s global marketing and distribution networks. The SeaBear acquisition is included in the Company’s Diving segment. The Company is currently in the process of determining the fair value of the assets acquired and the liabilities assumed in this business combination and anticipates completing the valuation of intangibles and other assets within the next six months. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed, and the resulting goodwill acquired at the date of the SeaBear acquisition. Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable $ 34 Inventories 179 Other current assets 42 Property, plant and equipment 28 Identifiable intangible assets 3,175 Less, accounts payable and accruals 200 Less, long term liabilities 289 Total identifiable net assets 2,969 Goodwill 2,281 Net assets acquired $ 5,250 An increase to the provisional fair value of identifiable intangible assets of $3,175 was made with a corresponding decrease to the provisional value of goodwill during the quarter ended April 1, 2016. Transaction costs incurred for the acquisition to date were $465 , of which $301 was recognized during the six months ended April 1, 2016. |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 6 Months Ended |
Apr. 01, 2016 | |
Basis Of Presentation [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 April 1, 2016 and April 3 , 2015, and their results of operations for the three and six month periods then ended and cash flows for the six month periods then ended . These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended October 2, 2015 which was filed with the Securities and Exchange Commission on December 8, 2015 , and amended by Amendment No. 1 filed on December 11, 2015 with the Securities and Exchange Commission . Due to seasonal variations and other factors, the results of operations for the three and six months ended April 1, 2016 are not necessarily indicative of the results to be expected for the Company's full 201 6 fiscal year. See “Seasonality” in the Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere herein for additional information. All monetary amounts, other than share and per share amounts, are stated in thousands. |
Stock-Based Compensation And 26
Stock-Based Compensation And Stock Ownership Plans (Tables) | 6 Months Ended |
Apr. 01, 2016 | |
Stock-Based Compensation And Stock Ownership Plans [Abstract] | |
Schedule of Non-Vested Stock Activity | Weighted Average Shares Grant Price Non-vested stock at October 2, 2015 214,027 $ 21.43 Non-vested stock grants 54,850 24.16 Restricted stock vested (98,520) 21.48 Non-vested stock at April 1, 2016 170,357 23.62 |
Pension Plans (Tables)
Pension Plans (Tables) | 6 Months Ended |
Apr. 01, 2016 | |
Pension Plans [Abstract] | |
Components of Net Periodic Benefit Cost | Three Months Ended Six Months Ended April 1 April 3 April 1 April 3 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ - $ - $ - $ - Interest on projected benefit obligation 277 270 554 539 Less estimated return on plan assets 299 220 598 494 Amortization of unrecognized losses 155 86 310 171 Net periodic benefit cost $ 133 $ 136 $ 266 $ 216 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Apr. 01, 2016 | |
Income Taxes [Abstract] | |
Summary of Earnings Before Income Taxes, Income Tax Expense and Effective Income Tax Rate | Three Months Ended Six Months Ended April 1 April 3 April 1 April 3 (thousands, except tax rate data) 2016 2015 2016 2015 Profit (loss) before income taxes $ 14,669 $ 6,820 $ 14,150 $ (104) Income tax expense 5,348 3,174 5,363 444 Effective income tax rate 36.5% 46.5% 37.9% -426.9% |
Summary of Tax Jurisdictions of Entities with Valuation Allowances | April 1 April 3 2016 2015 Australia France France Indonesia Japan Italy Netherlands Japan New Zealand Netherlands Spain New Zealand Switzerland Spain |
Summary of Income Tax Examinations | Jurisdiction Fiscal Years United States 2012 - 2015 Canada 2011 - 2015 France 2011 - 2015 Germany 2010 - 2015 Italy 2010 - 2015 Japan 2012 - 2015 Switzerland 2005 - 2015 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Apr. 01, 2016 | |
Inventories [Abstract] | |
Schedule of Inventories | April 1 October 2 April 3 2016 2015 2015 Raw materials $ 33,028 $ 34,711 $ 34,655 Work in process 155 24 121 Finished goods 56,586 45,184 44,976 $ 89,769 $ 79,919 $ 79,752 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Apr. 01, 2016 | |
Goodwill [Abstract] | |
Schedule of Goodwill | April 1 April 3 2016 2015 Balance at beginning of period $ 14,292 $ 14,416 Acquisitions 2,338 - Amount attributable to movements in foreign currency rates 42 (107) Balance at end of period $ 16,672 $ 14,309 |
Warranties (Tables)
Warranties (Tables) | 6 Months Ended |
Apr. 01, 2016 | |
Warranties [Abstract] | |
Summary of Warranty Activity | April 1 April 3 2016 2015 Balance at beginning of period $ 4,301 $ 4,078 Expense accruals for warranties issued during the period 2,337 2,304 Less current period warranty claims paid 1,903 2,163 Balance at end of period $ 4,735 $ 4,219 |
Indebtedness (Tables)
Indebtedness (Tables) | 6 Months Ended |
Apr. 01, 2016 | |
Indebtedness [Abstract] | |
Schedule of Debt | April 1 2016 October 2 2015 April 3 2015 Term loans $ 7,251 $ 7,430 $ 7,608 Revolvers 30,000 - 48,084 Other 294 - - Total debt 37,545 7,430 55,692 Less current portion of long term debt 373 368 359 Less short term debt - - - Total long-term debt $ 37,172 $ 7,062 $ 55,333 |
Schedule of Maturities of Long-term Debt | Fiscal Year 2016 $ 152 2017 381 2018 30,403 2019 426 2020 743 Thereafter 5,440 Total $ 37,545 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Apr. 01, 2016 | |
Fair Value Measurements [Abstract] | |
Summary of Financial Assets Measured at Fair Value | The following table summarizes the Company's financial assets measured at fair value as of April 1, 2016: Level 1 Level 2 Level 3 Total Assets: Rabbi trust assets $ 11,536 $ - $ - $ 11,536 The following table summarizes the Company's financial assets measured at fair value as of October 2, 2015: Level 1 Level 2 Level 3 Total Assets: Rabbi trust assets $ 11,441 $ - $ - $ 11,441 The following table summarizes the Company's financial assets measured at fair value as of April 3, 2015: Level 1 Level 2 Level 3 Total Assets: Rabbi trust assets $ 11,893 $ - $ - $ 11,893 |
Effect of Changes in the Fair Value of Financial Instruments | The effect of changes in the fair value of financial instruments on the Condensed Consolidated Statements of Operations for the three months ended April 1, 2016 and April 3, 2015 was: Location of loss (income) Three Months Ended recognized in Statement of April 1 April 3 Operations 2016 2015 Rabbi trust assets Other expense (income), net $ (9) $ (331) The effect of changes in the fair value of financial instruments on the Condensed Consolidated Statements of Operations for the six month periods ended April 1, 2016 and April 3, 2015 was: Location of (income) loss Six Months Ended recognized in Statement of April 1 April 3 Operations 2016 2015 Rabbi trust assets Other expense (income), net $ 54 $ (449) |
Segments Of Business (Tables)
Segments Of Business (Tables) | 6 Months Ended |
Apr. 01, 2016 | |
Segments Of Business [Abstract] | |
Summary of Operations by Business Unit | Three Months Ended Six Months Ended April 1 April 3 April 1 April 3 October 2 2016 2015 2016 2015 2015 Net sales: Marine Electronics: Unaffiliated customers $ 90,865 $ 89,226 $ 149,423 $ 132,755 Interunit transfers 128 112 170 126 Outdoor Equipment: Unaffiliated customers 11,609 12,149 17,915 18,522 Interunit transfers 7 8 15 17 Watercraft: Unaffiliated customers 14,730 13,893 21,103 19,341 Interunit transfers 21 13 26 20 Diving Unaffiliated customers 16,836 17,708 30,845 33,137 Interunit transfers 224 205 507 290 Other / Corporate 152 135 204 178 Eliminations (380) (338) (718) (453) Total $ 134,192 $ 133,111 $ 219,490 $ 203,933 Operating profit (loss): Marine Electronics $ 17,283 $ 11,130 $ 22,978 $ 9,543 Outdoor Equipment 999 1,070 797 725 Watercraft 831 - 296 (1,026) Diving (704) (369) (2,578) (705) Other / Corporate (3,271) (4,208) (7,255) (8,245) $ 15,138 $ 7,623 $ 14,238 $ 292 Total assets (end of period): Marine Electronics $ 168,007 $ 170,510 $ 125,113 Outdoor Equipment 34,261 35,053 33,663 Watercraft 33,329 32,255 20,898 Diving 67,267 63,830 62,589 Other / Corporate 51,925 41,203 56,941 $ 354,789 $ 342,851 $ 299,204 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Apr. 01, 2016 | |
Accumulated Other Comprehensive Income [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 April 1, 2016 were as follows: Foreign Currency Translation Adjustment Unamortized Loss on Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2016 $ 8,476 (6,520) 1,956 Other comprehensive income before reclassifications 3,048 - 3,048 Amounts reclassified from accumulated other comprehensive income - 156 156 Tax effects - (59) (59) Balance at April 1, 2016 $ 11,524 $ (6,423) $ 5,101 The changes in AOCI by component, net of tax, for the six months ended April 1, 2016 were as follows: Foreign Currency Translation Adjustment Unamortized Loss on Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at October 2, 2015 $ 10,253 $ (6,616) $ 3,637 Other comprehensive loss before reclassifications 1,271 - 1,271 Amounts reclassified from accumulated other comprehensive income - 311 311 Tax effects - (118) (118) Balance at April 1, 2016 $ 11,524 $ (6,423) $ 5,101 The changes in AOCI by component, net of tax, for the three months ended April 3, 2015 were as follows: Foreign Currency Translation Adjustment Unamortized Loss on Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at January 2, 2015 $ 14,870 $ (5,561) $ 9,309 Other comprehensive loss before reclassifications (5,192) - (5,192) Amounts reclassified from accumulated other comprehensive income - 85 85 Tax effects - (98) (98) Balance at April 3, 2015 $ 9,678 $ (5,574) $ 4,104 The changes in AOCI by component, net of tax, for the six months ended April 3, 2015 were as follows: Foreign Currency Translation Adjustment Unamortized Loss on Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at October 3, 2014 $ 18,424 $ (5,646) $ 12,778 Other comprehensive income before reclassifications (8,746) - (8,746) Amounts reclassified from accumulated other comprehensive income - 170 170 Tax effects - (98) (98) Balance at April 3, 2015 $ 9,678 $ (5,574) $ 4,104 |
Reclassifications Out of AOCI | The reclassifications out of AOCI for the three month period ended April 1, 2016 were as follows: Statement of Operations Presentation Unamortized loss on defined benefit pension plans Amortization of loss $ 156 Cost of sales / Operating expense Tax effects (59) Income tax expense (benefit) Total reclassifications for the period $ 97 The reclassifications out of AOCI for the three month period ended April 3, 2015 were as follows: Statement of Operations Presentation Unamortized loss on defined benefit pension plans: Amortization of loss $ 85 Cost of sales / Operating expense Tax effects (98) Income tax expense (benefit) Total reclassifications for the period $ (13) The reclassifications out of AOCI for the six months ended April 1, 2016 were as follows: Statement of Operations Presentation Unamortized loss on defined benefit pension plans: Amortization of loss $ 311 Cost of sales / Operating expense Tax effects (118) Income tax expense Total reclassifications for the period $ 193 The reclassifications out of AOCI for the six months ended April 3, 2015 were as follows: Statement of Operations Presentation Unamortized loss on defined benefit pension plans: Amortization of loss $ 170 Cost of sales / Operating expense Tax effects (98) Income tax expense Total reclassifications for the period $ 72 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Apr. 01, 2016 | |
Acquisition [Abstract] | |
Provisional Fair Values Of The Assets Acquired, Liabilities Assumed And Goodwill Acquired | Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable $ 34 Inventories 179 Other current assets 42 Property, plant and equipment 28 Identifiable intangible assets 3,175 Less, accounts payable and accruals 200 Less, long term liabilities 289 Total identifiable net assets 2,969 Goodwill 2,281 Net assets acquired $ 5,250 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Apr. 01, 2016 | Oct. 02, 2015 | Apr. 03, 2015 |
Accounts Receivable [Abstract] | |||
Allowances for doubtful accounts receivable | $ 2,310 | $ 2,329 | $ 2,338 |
Accounts receivable, net | $ 102,786 | $ 44,798 | $ 110,817 |
Earnings Per Share ("EPS") (Det
Earnings Per Share ("EPS") (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2016 | Apr. 03, 2015 | Apr. 01, 2016 | Apr. 03, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Percentage of cash dividends on Class A common stock relative to Class B common stock | 110.00% | |||
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 0 | 9,216 | 0 | 9,216 |
Non-Vested Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 170,357 | 278,659 | 178,435 | 293,907 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 48,456 | 10,088 | 48,456 | 10,088 |
Stock-Based Compensation And 39
Stock-Based Compensation And Stock Ownership Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 01, 2016 | Apr. 03, 2015 | Apr. 01, 2016 | Apr. 03, 2015 | Oct. 02, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares Available for Grant Under Stock-Based Compensation Plans | 581,832 | 581,832 | |||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of Stock Options Granted During Period | 0 | 0 | |||
Shares, Outstanding | 0 | 0 | |||
Non-Vested Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares Tendered for Tax Withholding on Vesting of Restricted Shares | 19,973 | 16,915 | |||
Unvested and outstanding units | 170,357 | 170,357 | 214,027 | ||
Weighted Average Grant Date Fair Value | $ 23.62 | $ 23.62 | $ 21.43 | ||
Non-Vested Stock Grants, shares | 54,850 | ||||
Weighted Average Grant Date Fair Value, Grants | $ 24.16 | ||||
Stock-Based Compensation Expense, Net of Forfeitures | $ 332 | $ 436 | $ 680 | $ 839 | |
Unrecognized Stock-Based Compensation Expense Related to Non-vested Stock | $ 2,075 | 2,075 | |||
Fair Value Of Vested Restricted Stock | $ 2,349 | $ 2,346 | |||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested and outstanding units | 48,456 | 10,088 | 48,456 | 10,088 | |
Weighted Average Grant Date Fair Value | $ 23.65 | $ 31.23 | $ 23.65 | $ 31.23 | |
Non-Vested Stock Grants, shares | 14,070 | 7,336 | 48,456 | 7,336 | |
Weighted Average Grant Date Fair Value, Grants | $ 22.39 | $ 33.40 | $ 23.65 | $ 33.40 | |
Stock-Based Compensation Expense, Net of Forfeitures | $ 137 | $ 67 | $ 267 | $ 128 | |
Unrecognized Stock-Based Compensation Expense Related to Non-vested Stock | $ 981 | $ 981 | |||
Restricted Stock Units (RSUs) [Member] | Vesting Period 1 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||
Restricted Stock Units (RSUs) [Member] | Vesting Period 2 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Minimum [Member] | Non-Vested Stock [Member] | Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | ||||
Maximum [Member] | Non-Vested Stock [Member] | Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||
2009 Johnson Outdoors Inc Employees Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee Stock Purchase Plan Shares Issued | 0 | 0 | 0 | 0 | |
2009 Johnson Outdoors Inc Employees Stock Purchase Plan [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee stock purchase plan, purchase price, percent | 85.00% |
Stock-Based Compensation And 40
Stock-Based Compensation And Stock Ownership Plans (Schedule of Non-Vested Stock Activity) (Details) - Non-Vested Stock [Member] | 6 Months Ended |
Apr. 01, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-Vested Stock, Beginning Balance, shares | shares | 214,027 |
Non-Vested Stock Grants, shares | shares | 54,850 |
Restricted Stock Vested, shares | shares | (98,520) |
Non-Vested Stock, Ending Balance, shares | shares | 170,357 |
Non-Vested Stock, Beginning Balance, Weighted Average Grant Price | $ / shares | $ 21.43 |
Non-Vested Stock Grants, Weighted Average Grant Price | $ / shares | 24.16 |
Restricted Stock Vested, Weighted Average Grant Price | $ / shares | 21.48 |
Non-Vested Stock, Ending Balance, Weighted Average Grant Price | $ / shares | $ 23.62 |
Pension Plans (Components of Ne
Pension Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2016 | Apr. 03, 2015 | Apr. 01, 2016 | Apr. 03, 2015 | |
Pension Plans [Abstract] | ||||
Service cost | ||||
Interest on projected benefit obligation | $ 277 | $ 270 | $ 554 | $ 539 |
Less estimated return on plan assets | 299 | 220 | 598 | 494 |
Amortization of unrecognized losses | 155 | 86 | 310 | 171 |
Net periodic benefit cost | $ 133 | $ 136 | $ 266 | $ 216 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Apr. 01, 2016 | Oct. 02, 2015 | Apr. 03, 2015 | |
Deferred tax assets | $ 16,389 | $ 15,867 | $ 12,808 | |
Accounting Standards Update 2015-17 [Member] | ||||
Deferred tax assets | $ 10,649 | $ 8,613 | ||
Projected [Member] | ||||
Tax expense related to uncertain income tax positions | $ 400 | |||
Accrued interest related to uncertain income tax positoins | $ 200 |
Income Taxes (Summary of Earnin
Income Taxes (Summary of Earnings Before Income Taxes, Income Tax Expense and Effective Income Tax Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2016 | Apr. 03, 2015 | Apr. 01, 2016 | Apr. 03, 2015 | |
Income Taxes [Abstract] | ||||
Profit (loss) before income taxes | $ 14,669 | $ 6,820 | $ 14,150 | $ (104) |
Income tax expense | $ 5,348 | $ 3,174 | $ 5,363 | $ 444 |
Effective income tax rate | 36.50% | 46.50% | 37.90% | (426.90%) |
Income Taxes (Summary of Income
Income Taxes (Summary of Income Tax Examinations) (Details) | 6 Months Ended |
Apr. 01, 2016 | |
United States [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remaining subject to examination | 2,012 |
United States [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remaining subject to examination | 2,015 |
Canada [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remaining subject to examination | 2,011 |
Canada [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remaining subject to examination | 2,015 |
France [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remaining subject to examination | 2,011 |
France [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remaining subject to examination | 2,015 |
Germany [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remaining subject to examination | 2,010 |
Germany [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remaining subject to examination | 2,015 |
Italy [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remaining subject to examination | 2,010 |
Italy [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remaining subject to examination | 2,015 |
Japan [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remaining subject to examination | 2,012 |
Japan [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remaining subject to examination | 2,015 |
Switzerland [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remaining subject to examination | 2,005 |
Switzerland [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remaining subject to examination | 2,015 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Apr. 01, 2016 | Oct. 02, 2015 | Apr. 03, 2015 |
Inventories [Abstract] | |||
Raw materials | $ 33,028 | $ 34,711 | $ 34,655 |
Work in process | 155 | 24 | 121 |
Finished goods | 56,586 | 45,184 | 44,976 |
Inventories | $ 89,769 | $ 79,919 | $ 79,752 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Apr. 01, 2016 | Oct. 02, 2015 | Apr. 03, 2015 | Oct. 03, 2014 | |
Evaluation of long-lived assets, period | 5 years | |||
Goodwill | $ 16,672 | $ 14,292 | $ 14,309 | $ 14,416 |
Diving [Member] | ||||
Fair value exceeding its carrying value | $ 9 |
Goodwill (Schedule of Goodwill)
Goodwill (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 01, 2016 | Apr. 03, 2015 | |
Goodwill [Abstract] | ||
Goodwill, Balance at beginning of period | $ 14,292 | $ 14,416 |
Acquisitions | 2,338 | |
Amount attributable to movements in foreign currency rates | 42 | (107) |
Goodwill, Balance at end of period | $ 16,672 | $ 14,309 |
Warranties (Summary of Warranty
Warranties (Summary of Warranty Activity) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 01, 2016 | Apr. 03, 2015 | |
Warranties [Abstract] | ||
Warranties, Balance at beginning of period | $ 4,301 | $ 4,078 |
Expense accruals for warranties issued during the period | 2,337 | 2,304 |
Less current period warranty claims paid | 1,903 | 2,163 |
Warranties, Balance at end of period | $ 4,735 | $ 4,219 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2016 | Apr. 03, 2015 | Apr. 01, 2016 | Apr. 03, 2015 | |
Debt Instrument [Line Items] | ||||
Interest Paid | $ 267 | $ 256 | $ 402 | $ 412 |
Foriegn Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum Borrowing Capacity | $ 0 | 0 | $ 0 | $ 0 |
Revolvers [Member] | ||||
Debt Instrument [Line Items] | ||||
Annual Seasonal Pay Down Duration | June 30th through October 31st of each year under the agreement | |||
Initiation Date | Sep. 16, 2013 | |||
Expiration Date | Sep. 16, 2018 | |||
Maximum Amount of Asset or Stock Aquisition | $ 20,000 | |||
Ratio of Indebtedness to Net Capital | 2.5 | 2.5 | ||
Maximum Amount of Dividends Paid or Repurchases of Common Stock | $ 10,000 | |||
Line of Credit Facility, Dividend Restrictions | The Revolving Credit Agreement limits the amount of restricted payments (primarily dividends and repurchases of common stock) made during each fiscal year. The Company may declare and pay dividends in accordance with historical practices, but in no event may the aggregate amount of all dividends or repurchases of common stock exceed $10,000 in any fiscal year | |||
Line of Credit Facility, Asset Restrictions | Under the terms of the Revolver, the Company is required to comply with certain financial and non-financial covenants. The Revolving Credit Agreement limits asset or stock acquisitions to no more than $20,000 in the event that the Company's consolidated leverage ratio is greater than 2.5 times. No limits are imposed if the Company's consolidated leverage ratio is less than 2.5 times and the remaining borrowing availability under the Revolver is greater than $10,000 at the time of the acquisition | |||
Line of Credit Facility, Covenant Terms | The Revolving Credit Agreement restricts the Company's ability to incur additional debt and includes maximum leverage ratio and minimum interest coverage ratio covenants | |||
Line of Credit Facility, Collateral | The Revolver is secured with a first priority lien on working capital assets and certain patents and trademarks of the Company and its subsidiaries and a second priority lien on land, buildings, machinery and equipment of the Company's domestic subsidiaries. | |||
Line of Credit Facility, Interest Rate Description | The interest rate on the Revolver resets each quarter and is based on LIBOR plus an applicable margin. The applicable margin ranges from 1.25 percent to 2.00 percent and is dependent on the Company's leverage ratio for the trailing twelve month period | |||
Applicable margin, percentage | 1.70% | 1.40% | ||
Revolvers [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin, percentage | 2.00% | |||
Revolvers [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin, percentage | 1.25% | |||
Revolvers Borrowing Capacity Seasonal [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum Borrowing Capacity | $ 60,000 | $ 60,000 | ||
Revolvers Borrowing Capacity Standard [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum Borrowing Capacity | 90,000 | 90,000 | ||
Unsecured Line Of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum Borrowing Capacity | $ 0 | $ 0 | $ 0 | $ 0 |
Term Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | Sep. 29, 2029 | |||
Interest Rate at Period End | 5.50% | 5.25% | 5.50% | 5.25% |
Pre Payment Penalty Percent | 4.00% | |||
Annual Decrease Of Pre Payment Penalty | 1.00% | |||
Financial Standby Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of Credit Outstanding | $ 680 | $ 646 | $ 680 | $ 646 |
Indebtedness (Schedule of Debt)
Indebtedness (Schedule of Debt) (Details) - USD ($) $ in Thousands | Apr. 01, 2016 | Oct. 02, 2015 | Apr. 03, 2015 |
Indebtedness [Abstract] | |||
Term loans | $ 7,251 | $ 7,430 | $ 7,608 |
Revolvers | 30,000 | 48,084 | |
Other | 294 | ||
Total Debt | 37,545 | 7,430 | 55,692 |
Less current portion of long term debt | $ 373 | $ 368 | $ 359 |
Less short term debt | |||
Total long-term debt | $ 37,172 | $ 7,062 | $ 55,333 |
Indebtedness (Schedule of Matur
Indebtedness (Schedule of Maturities of Long-term Debt) (Details) $ in Thousands | Apr. 01, 2016USD ($) |
Indebtedness [Abstract] | |
2,016 | $ 152 |
2,017 | 381 |
2,018 | 30,403 |
2,019 | 426 |
2,020 | 743 |
Thereafter | 5,440 |
Total | $ 37,545 |
Derivative Instruments And He52
Derivative Instruments And Hedging Activities (Narrative) (Details) - contract | 6 Months Ended | |
Apr. 01, 2016 | Apr. 03, 2015 | |
Derivative [Line Items] | ||
Derivative, Number of Instruments Held | 0 | 0 |
Revenue Other Than U.S. Dollar [Member] | ||
Derivative [Line Items] | ||
Percent Of Revenues In Foreign Currency | 15.00% | |
Revenue Other Than U.S. Dollar [Member] | Other Foreign Currencies [Member] | ||
Derivative [Line Items] | ||
Percent Of Revenues In Foreign Currency | 2.00% | |
Euro [Member] | Revenue Other Than U.S. Dollar [Member] | ||
Derivative [Line Items] | ||
Percent Of Revenues In Foreign Currency | 6.00% | |
Canadian Dollars [Member] | Revenue Other Than U.S. Dollar [Member] | ||
Derivative [Line Items] | ||
Percent Of Revenues In Foreign Currency | 5.00% | |
Hong Kong, Dollars | Revenue Other Than U.S. Dollar [Member] | ||
Derivative [Line Items] | ||
Percent Of Revenues In Foreign Currency | 2.00% |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | Apr. 01, 2016 | Apr. 03, 2015 |
Fair Value Measurements [Abstract] | ||
Assets at fair value, Nonrecurring | $ 0 | $ 0 |
Liabilities at fair value, Nonrecurring | $ 0 | $ 0 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Financial Assets Measured at Fair Value) (Details) - USD ($) $ in Thousands | Apr. 01, 2016 | Oct. 02, 2015 | Apr. 03, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Rabbi trust assets | $ 11,536 | $ 11,441 | $ 11,893 |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Rabbi trust assets | $ 11,536 | $ 11,441 | $ 11,893 |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Rabbi trust assets | |||
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Rabbi trust assets |
Fair Value Measurements (Effect
Fair Value Measurements (Effect of Changes in the Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2016 | Apr. 03, 2015 | Apr. 01, 2016 | Apr. 03, 2015 | |
Rabbi Trust Assets [Member] | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Changes in fair value, loss (income) | $ (9) | $ (331) | $ 54 | $ (449) |
Segments of Business (Narrative
Segments of Business (Narrative) (Details) $ in Thousands | 6 Months Ended | |
Apr. 01, 2016USD ($)customer | Apr. 03, 2015customer | |
Customer Concentration Risk [Member] | ||
Revenue, Major Customer [Line Items] | ||
Number Of Customers | 0 | |
Marine Electronics, Outdoor Equipment and Watercraft [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenues | $ | $ 22,500 | |
Number Of Customers | 1 |
Segments of Business (Summary o
Segments of Business (Summary of Operations by Business Unit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 01, 2016 | Apr. 03, 2015 | Apr. 01, 2016 | Apr. 03, 2015 | Oct. 02, 2015 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 134,192 | $ 133,111 | $ 219,490 | $ 203,933 | |
Operating profit (loss) | 15,138 | 7,623 | 14,238 | 292 | |
Total assets (end of period) | 354,789 | 342,851 | 354,789 | 342,851 | $ 299,204 |
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (380) | (338) | (718) | (453) | |
Eliminations [Member] | Marine Electronics [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 128 | 112 | 170 | 126 | |
Eliminations [Member] | Outdoor Equipment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 7 | 8 | 15 | 17 | |
Eliminations [Member] | Watercraft [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 21 | 13 | 26 | 20 | |
Eliminations [Member] | Diving [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 224 | 205 | 507 | 290 | |
Operating Segments [Member] | Marine Electronics [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 90,865 | 89,226 | 149,423 | 132,755 | |
Operating profit (loss) | 17,283 | 11,130 | 22,978 | 9,543 | |
Total assets (end of period) | 168,007 | 170,510 | 168,007 | 170,510 | 125,113 |
Operating Segments [Member] | Outdoor Equipment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 11,609 | 12,149 | 17,915 | 18,522 | |
Operating profit (loss) | 999 | 1,070 | 797 | 725 | |
Total assets (end of period) | 34,261 | 35,053 | 34,261 | 35,053 | 33,663 |
Operating Segments [Member] | Watercraft [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 14,730 | 13,893 | 21,103 | 19,341 | |
Operating profit (loss) | 831 | 296 | (1,026) | ||
Total assets (end of period) | 33,329 | 32,255 | 33,329 | 32,255 | 20,898 |
Operating Segments [Member] | Diving [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 16,836 | 17,708 | 30,845 | 33,137 | |
Operating profit (loss) | (704) | (369) | (2,578) | (705) | |
Total assets (end of period) | 67,267 | 63,830 | 67,267 | 63,830 | 62,589 |
Operating Segments [Member] | Other / Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 152 | 135 | 204 | 178 | |
Operating profit (loss) | (3,271) | (4,208) | (7,255) | (8,245) | |
Total assets (end of period) | $ 51,925 | $ 41,203 | $ 51,925 | $ 41,203 | $ 56,941 |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Income (Changes in AOCI by Component, Net of Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2016 | Apr. 03, 2015 | Apr. 01, 2016 | Apr. 03, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 1,956 | $ 9,309 | $ 3,637 | $ 12,778 |
Other comprehensive loss before reclassifications | 3,048 | (5,192) | 1,271 | (8,746) |
Amounts reclassified from accumulated other comprehensive income | 156 | 85 | 311 | 170 |
Tax effects | (59) | (98) | (118) | (98) |
Ending balance | 5,101 | 4,104 | 5,101 | 4,104 |
Foreign Currency Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 8,476 | 14,870 | 10,253 | 18,424 |
Other comprehensive loss before reclassifications | 3,048 | (5,192) | 1,271 | (8,746) |
Ending balance | 11,524 | 9,678 | 11,524 | 9,678 |
Unamortized Loss On Defined Benefit Pension Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (6,520) | (5,561) | (6,616) | (5,646) |
Amounts reclassified from accumulated other comprehensive income | 156 | 85 | 311 | 170 |
Tax effects | (59) | (98) | (118) | (98) |
Ending balance | $ (6,423) | $ (5,574) | $ (6,423) | $ (5,574) |
Accumulated Other Comprehensi59
Accumulated Other Comprehensive Income (Reclassifications Out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2016 | Apr. 03, 2015 | Apr. 01, 2016 | Apr. 03, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense (benefit) | $ (5,348) | $ (3,174) | $ (5,363) | $ (444) |
Net income (loss) | 9,321 | 3,646 | 8,787 | (548) |
Unamortized Loss On Defined Benefit Pension Plans [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Sales / Operating Expense | 156 | 85 | 311 | 170 |
Income tax expense (benefit) | (59) | (98) | (118) | (98) |
Net income (loss) | $ 97 | $ (13) | $ 193 | $ 72 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - SeaBear [Member] - USD ($) $ in Thousands | Oct. 27, 2015 | Apr. 01, 2016 |
Business acquisition date | Oct. 27, 2015 | |
Net assets acquired | $ 5,250 | |
Segregated indemnification escrow amount | 1,115 | |
Identifiable intangible assets | 3,175 | |
Business Acquisition, Transaction Costs | $ 465 | $ 301 |
Acquisition (Provisional Fair V
Acquisition (Provisional Fair Values Of The Assets Acquired, Liabilities Assumed And Goodwill Acquired) (Details) - USD ($) $ in Thousands | Apr. 01, 2016 | Oct. 27, 2015 | Oct. 02, 2015 | Apr. 03, 2015 | Oct. 03, 2014 |
Goodwill | $ 16,672 | $ 14,292 | $ 14,309 | $ 14,416 | |
SeaBear [Member] | |||||
Accounts receivable | $ 34 | ||||
Inventories | 179 | ||||
Other current assets | 42 | ||||
Property, plant and equipment | 28 | ||||
Identifiable intangible assets | 3,175 | ||||
Less, accounts payable and accruals | 200 | ||||
Less, long term liabilities | 289 | ||||
Total identifiable net assets | 2,969 | ||||
Goodwill | 2,281 | ||||
Net assets acquired | $ 5,250 |