Company: JOUT
Filing Date: 2025-02-03
Form Type: 10-Q
Source: 0001140361-25-002853
Chunk: 16

Company: JOHNSON OUTDOORS INC
Filing Date: 2025-02-03
Form: 10-Q
Item: Item 8
Chunk 16
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, 2023Balance at beginning of period$— $11,172 Acquisitions10,451 — Amount attributable to movements in foreign currency rates— 17 Balance at end of period$10,451 $11,189 The goodwill at December 27, 2024 relates to the acquisition of Endless Summer Technologies Proprietary, Ltd.  See Note 18 below for additional information on the acquisition.The Company evaluates the carrying value of goodwill for a reporting unit on an annual basis or more frequently when events and circumstances warrant such an evaluation.  In conducting this analysis, the Company uses the income approach to compare the reporting unit's carrying value to its indicated fair value.  Fair value is determined primarily by using a discounted cash flow methodology that requires considerable management judgment and long-term assumptions and is considered a Level 3 (unobservable) fair value determination in the fair value hierarchy (see Note 12) below.

9    WARRANTIES

 The Company provides warranties on certain of its products as they are sold. The following table summarizes the Company’s warranty activity for the three months ended December 27, 2024 and December 29, 2023. December 27, 2024December 29, 2023Balance at beginning of period$10,211 $11,741 Expense accruals for warranties issued during the period4,044 1,243 Less current period warranty claims paid(2,142)(1,998)Balance at end of period$12,113 $10,986 

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.

11    INDEBTEDNESS

The Company had no debt outstanding at December 27, 2024, September 27, 2024, or December 29, 2023.RevolverThe Company and certain of its subsidiaries have entered into an unsecured credit facility with PNC Bank National Association and Associated Bank, N.A. ("the Lending Group").  This credit facility