Company: JOUT
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001140361-25-028318
Chunk: 15

Company: JOHNSON OUTDOORS INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 8
Chunk 15
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 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: June 27,2025September 27,2024June 28,2024Raw materials$85,956 $103,780 $107,384 Finished goods77,776 106,008 115,776  $163,732 $209,788 $223,160 

8    GOODWILL

The changes in goodwill during the nine months ended June 27, 2025 and June 28, 2024 were as follows: June 27, 2025June 28, 2024Balance at beginning of period$— $11,172 Acquisitions10,231 — Amount attributable to movements in foreign currency rates(69)(12)Balance at end of period$10,162 $11,160 The goodwill at June 27, 2025 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.

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IndexJOHNSON OUTDOORS INC.

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, which reduced the carrying value of the balance of goodwill reported as of June 28, 2024 of $11,167 to $0 as of September 27, 2024. 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 occurring in this segment.

9    WARRANTIES

 The Company provides warranties on certain of its products