Company: JOUT
Filing Date: 2025-12-12
Form Type: 10-K
Source: 0001140361-25-045348
Chunk: 71

Company: JOHNSON OUTDOORS INC
Filing Date: 2025-12-12
Form: 10-K
Item: Item 15
Chunk 71
---
 contracts for trading or speculative purposes.Advertising & PromotionsThe Company expenses substantially all costs related to the production of advertising the first time the advertising takes place. Cooperative promotional arrangements are accrued as related revenue is earned.Advertising and promotions expense in 2025, 2024 and 2023 totaled $34,890, $44,732 and $35,503, respectively. These charges are included in “Marketing and selling expenses.”  Capitalized advertising costs, included in Other current assets, totaled $488 and $413 at October 3, 2025 and September 27, 2024, respectively, and primarily included catalogs and costs of advertising which have not yet run for the first time.Shipping and Handling CostsShipping and handling fees billed to customers are included in “Net sales.” Shipping and handling costs are included in “Marketing and selling expenses” and totaled $12,379, $13,196 and $15,519 for 2025, 2024 and 2023, respectively.Research and DevelopmentThe Company expenses research and development costs as incurred except for costs of software development for new electronic products and bathymetry data collection and processing, which are capitalized once technological feasibility is established and are included in Furniture, Fixtures and Equipment. The gross amount capitalized related to software development was $75,030, less accumulated amortization of $45,759, at October 3, 2025 and $66,909, less accumulated amortization of $41,284, at September 27, 2024.  These costs are amortized over the expected life of the software of three to seven years.  Amortization expense related to capitalized software in 2025, 2024 and 2023 was $4,475, $3,350 and $4,062, respectively, and is included in depreciation expense on plant, property and equipment.Fair ValuesThe carrying amounts of cash, cash equivalents, short-term investments, accounts receivable, and accounts payable approximated fair value at October 3, 2025 and September 27, 2024 due to the short maturities of these instruments. During 2025, 2024 and 2023, the Company held investments in equity and debt securities that were carried at fair value related to its deferred compensation liability which was also carried at the same fair value.  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 intang