Company: JOUT
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001140361-25-028318
Chunk: 14

Company: JOHNSON OUTDOORS INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 8
Chunk 14
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 more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. In determining whether a valuation allowance is required, the Company considers such factors as prior earnings history, expected future earnings, carry-back and carry-forward periods, and tax strategies that could potentially enhance the likelihood of realization of a deferred tax asset. Due to recent operating losses in the U.S., the Company has evaluated the realizability of U.S. net deferred tax assets. The evaluation concluded that the Company's U.S. deferred tax assets are realizable.  The Company will continue to monitor the need for a valuation allowance on its U.S. deferred tax assets.  The impact of the Company’s operations in jurisdictions where a valuation allowance is assessed is removed from the overall effective tax rate methodology and recorded directly based on year to date results for the year for which no tax expense or benefit can be recognized.  The significant tax jurisdictions that have a valuation allowance for the periods ended June 27, 2025 and June 28, 2024 were: 

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IndexJOHNSON OUTDOORS INC.

June 27, 2025June 28, 2024IndonesiaIndonesiaSwitzerlandSwitzerlandThe 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 recorded a $858 unrecognized tax benefit including interest and penalties of $258 during the nine month period ended June 27, 2025 and estimates that reductions to unrecognized tax benefits for the remainder of fiscal 2025 will total $700 due mainly to lapses in statutes of limitations.In accordance with its accounting policy, the Company recognizes accrued interest and penalties related to unrecognized benefits as a component of income tax expense.  

On July 4, 2025, the One Big Beautiful Bill (OBBB) Act, which includes a broad range of tax reform provisions, was signed into law in the United States.  We are currently assessing its potential impact on our estimated annual effective tax rate.  

7    INVENTORIES

The Company values