Company: JOUT
Filing Date: 2025-02-03
Form Type: 10-Q
Source: 0001140361-25-002853
Chunk: 15

Company: JOHNSON OUTDOORS INC
Filing Date: 2025-02-03
Form: 10-Q
Item: Item 8
Chunk 15
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 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 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 December 27, 2024 and December 29, 2023 were: December 27, 2024December 29, 2023IndonesiaIndonesiaSwitzerlandSwitzerlandThe 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 2025 fiscal year tax expense is anticipated to be unchanged 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.  

7    INVENTORIES

The Company values inventory at the lower of cost (determined using the first-in first-out method) or net realizable value.  Inventories at the end of the respective periods consisted of the following: December 27,2024September 27,2024December 29,2023Raw materials$103,447 $103,780 $120,695 Finished goods98,159 106,008 146,626  $201,606 $209,788 $267,321 

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IndexJOHNSON OUTDOORS INC.

8    GOODWILL

The changes in goodwill during the three months ended December 27, 2024 and December 29, 2023 were as follows: December 27, 2024December 29