Company: JOUT
Filing Date: 2025-12-12
Form Type: 10-K
Source: 0001140361-25-045348
Chunk: 63

Company: JOHNSON OUTDOORS INC
Filing Date: 2025-12-12
Form: 10-K
Item: Item 15
Chunk 63
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24Property improvements$330 $330 Buildings and improvements37,082 36,135 Furniture and fixtures, equipment and computer software266,594 253,347  304,006 289,812 Less accumulated depreciation210,262 192,890  $93,744 $96,922 Depreciation expense for the Company was $20,044, $19,269, and $16,005 for the fiscal years ended October 3, 2025, September 27, 2024, and September 29, 2023, respectively. GoodwillThe Company applies a fair value-based impairment test to the carrying value of goodwill on an annual basis as of the last day of the eleventh month of the Company’s fiscal year and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis.  The Company can elect to perform a quantitative or qualitative test of impairment.   The Company performed a quantitative impairment assessment for goodwill for fiscal years 2025, 2024 and 2023.  In conducting its analysis, the Company uses the income approach, through the use of a discounted cash flow model, to compare the reporting unit’s carrying value to its indicated fair value.  The discounted cash flow model used to estimate the fair value of a reporting unit requires considerable management judgment to determine the key assumptions and is considered a Level 3 (unobservable) fair value determination in the fair value hierarchy (see Note 4 below).During the fourth quarter of fiscal 2024, the Company's annual goodwill impairment test indicated the carrying value of the Fishing reporting unit exceeded its estimated fair value as of the measurement date of August 30, 2024.  As a result, the Company recognized a goodwill impairment charge in the fourth quarter of fiscal 2024 of $11,173, which was recorded in "Goodwill Impairment" in the accompanying Consolidated Statements of Operations in the Fishing segment, thereby reducing the carrying value of this goodwill to $0.  This non-cash impairment was primarily driven by reduced cash flow projections in the Fishing reporting unit, prompted by ongoing market challenges and competitive pressure.  The results of the impairment tests performed in 2025 and 2023 indicated no impairment to the Company’s goodwill. The changes in the carrying amount and the composition of the Company's goodwill for fiscal 2025 and 2024 were as follows:FishingCamping & WatercraftDivingTotalBalance