Company: JOUT
Filing Date: 2025-12-12
Form Type: 10-K
Source: 0001140361-25-045348
Chunk: 54

Company: JOHNSON OUTDOORS INC
Filing Date: 2025-12-12
Form: 10-K
Item: Item 15
Chunk 54
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 an impairment charge is recorded for the amount that the reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of the goodwill. 

We identified the Company's annual goodwill impairment test for the Diving reporting unit as a critical audit matter due to the significant assumptions made by management to estimate the fair value of the reporting unit, including revenue growth rates, profit margins and the discount rate. Auditing management’s assumptions required a high degree of auditor judgment and an increase in audit effort, including the use of our valuation specialists, due to the impact these assumptions could have on the accounting estimate.

Our audit procedures related to the Company’s estimate of fair value of the Diving reporting unit included the following, among others:

•We obtained an understanding of management’s controls relating to estimating the fair value of the Diving reporting unit and tested such controls for design and operating effectiveness.

•We utilized our valuation specialists to test the reasonableness of the discount rate by comparing the inputs used by management to publicly available market data.

•We developed an independent estimate of the Diving reporting unit's fair value using a combination of historical results achieved by the Diving reporting unit and publicly available market data for the Diving reporting unit's industry and compared our independent estimate to management's estimate of fair value.

•We tested the underlying data used by management for completeness and accuracy by comparing it to source information. 

•We tested the mathematical accuracy of management’s discounted cash flow model.

We have served as the Company’s auditor since 2010.

/s/ RSM US LLP

Milwaukee, Wisconsin

December 12, 2025

F-5

CONSOLIDATED STATEMENTS OF OPERATIONS

 Year Ended (thousands, except per share data)October 32025September 272024September 292023Net sales$592,415 $592,846 $663,844 Cost of sales384,322 391,866 419,757 Gross profit208,093 200,980 244,087 Operating expenses:   Marketing and selling134,455 144,564 144,446 Administrative management, finance and information systems57,627 57,643 56,497 Goodwill impairment— 11,173 — Research and development32,202 31,122 31,404 Total operating expenses224,284 244,502 232,347 Operating (loss) profit(16,191)(43,522)11,740 Interest