Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 31, 2016 | Mar. 01, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SWHC | |
Entity Registrant Name | Smith & Wesson Holding Corporation | |
Entity Central Index Key | 1,092,796 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 55,109,084 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 105,220 | $ 42,222 |
Accounts receivable, net of allowance for doubtful accounts of $709 on January 31, 2016 and $722 on April 30, 2015 | 89,814 | 55,280 |
Inventories | 75,542 | 76,895 |
Prepaid expenses and other current assets | 5,981 | 6,306 |
Deferred income taxes | 16,441 | 16,373 |
Total current assets | 292,998 | 197,076 |
Property, plant, and equipment, net | 136,202 | 133,844 |
Intangibles, net | 65,014 | 73,768 |
Goodwill | 76,164 | 75,426 |
Other assets | 6,652 | 10,811 |
Assets, Total | 577,030 | 490,925 |
Current liabilities: | ||
Accounts payable | 35,288 | 32,360 |
Accrued expenses | 20,723 | 19,021 |
Accrued payroll | 15,430 | 7,556 |
Accrued income taxes | 1,413 | 4,224 |
Accrued taxes other than income | 7,704 | 5,281 |
Accrued profit sharing | 7,875 | 6,165 |
Accrued warranty | 6,156 | 6,404 |
Current portion of notes payable | 6,300 | |
Total current liabilities | 100,889 | 81,011 |
Deferred income taxes | 33,311 | 33,905 |
Notes payable, net of current portion | 167,923 | 170,933 |
Other non-current liabilities | 10,396 | 10,706 |
Total liabilities | $ 312,519 | $ 296,555 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $.001 par value, 20,000,000 shares authorized, no shares issued or outstanding | ||
Common stock, $.001 par value, 100,000,000 shares authorized, 70,671,290 shares issued and 55,108,668 shares outstanding on January 31, 2016 and 69,625,081 shares issued and 54,062,459 shares outstanding on April 30, 2015 | $ 71 | $ 70 |
Additional paid-in capital | 231,800 | 219,198 |
Retained earnings | 205,663 | 147,352 |
Accumulated other comprehensive (loss)/income | (700) | 73 |
Treasury stock, at cost (15,562,622 shares on January 31, 2016 and April 30, 2015) | (172,323) | (172,323) |
Total stockholders’ equity | 264,511 | 194,370 |
Liabilities and Equity, Total | $ 577,030 | $ 490,925 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 709 | $ 722 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 70,671,290 | 69,625,081 |
Common stock, shares outstanding | 55,108,668 | 54,062,459 |
Treasury stock, shares | 15,562,622 | 15,562,622 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |||||
Income Statement [Abstract] | ||||||||
Net sales | $ 210,786 | [1] | $ 130,550 | [2] | $ 501,791 | [1] | $ 370,865 | [2] |
Cost of sales | 124,128 | [1] | 86,726 | [2] | 300,048 | [1] | 243,083 | [2] |
Gross profit | 86,658 | [1] | 43,824 | [2] | 201,743 | [1] | 127,782 | [2] |
Operating expenses: | ||||||||
Research and development | 2,521 | 1,901 | 7,612 | 4,830 | ||||
Selling and marketing | 11,505 | 10,088 | 33,260 | 26,884 | ||||
General and administrative | 22,484 | 16,224 | 59,124 | 44,010 | ||||
Total operating expenses | 36,510 | 28,213 | 99,996 | 75,724 | ||||
Operating income | 50,148 | [1] | 15,611 | [2] | 101,747 | [1] | 52,058 | [2] |
Other (expense)/income: | ||||||||
Other (expense)/income, net | (5) | 16 | (17) | (1) | ||||
Interest income | 61 | 240 | 139 | 284 | ||||
Interest expense | (2,140) | (3,192) | (11,714) | (8,090) | ||||
Total other (expense)/income, net | (2,084) | (2,936) | (11,592) | (7,807) | ||||
Income before income taxes | 48,064 | 12,675 | 90,155 | 44,251 | ||||
Income tax expense | 16,630 | [1] | 4,554 | [2] | 31,844 | [1] | 16,526 | [2] |
Net income | 31,434 | 8,121 | 58,311 | 27,725 | ||||
Comprehensive income: | ||||||||
Change in unrealized loss on interest rate swap | (740) | (1,224) | ||||||
Other comprehensive loss, before income taxes | (740) | (1,224) | ||||||
Income tax benefit on other comprehensive loss | 274 | 451 | ||||||
Other comprehensive loss, net of tax | (466) | (773) | ||||||
Comprehensive income | $ 30,968 | $ 8,121 | $ 57,538 | $ 27,725 | ||||
Net income per share: | ||||||||
Basic | $ 0.57 | $ 0.15 | $ 1.07 | $ 0.51 | ||||
Diluted | $ 0.56 | $ 0.15 | $ 1.05 | $ 0.50 | ||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 54,857 | 53,724 | 54,508 | 54,033 | ||||
Diluted | 55,981 | 54,859 | 55,784 | 55,258 | ||||
[1] | We allocate all of corporate overhead expenses, such as general and administrative expenses and other corporate-level expenses, to both our firearm and accessories segments. | |||||||
[2] | Results of operations for the three and nine months ended January 31, 2015 include activity for the period subsequent to the BTI Acquisition. Due to the timing of the BTI Acquisition, the segment data above includes all corporate overhead expenses in our firearms segment. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - 9 months ended Jan. 31, 2016 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Treasury Stock |
Balance at Apr. 30, 2015 | $ 194,370 | $ 70 | $ 219,198 | $ 147,352 | $ 73 | $ (172,323) |
Balance (in shares) at Apr. 30, 2015 | 54,062,459 | 69,625,000 | ||||
Treasury stock, shares at Apr. 30, 2015 | 15,562,622 | 15,563,000 | ||||
Proceeds from exercise of employee stock options | $ 5,898 | $ 1 | 5,897 | |||
Proceeds from exercise of employee stock options (in shares) | 707,179 | 706,000 | ||||
Stock-based compensation | $ 4,885 | 4,885 | ||||
Excess tax benefit for stock-based compensation | 3,123 | 3,123 | ||||
Shares issued under employee stock purchase plan | $ 770 | 770 | ||||
Shares issued under employee stock purchase plan (in shares) | 92,249 | 92,000 | ||||
Change in unrealized loss on interest rate swap, net of tax effect | $ (773) | (773) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered | (2,073) | (2,073) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares) | 248,000 | |||||
Net income | 58,311 | 58,311 | ||||
Balance at Jan. 31, 2016 | $ 264,511 | $ 71 | $ 231,800 | $ 205,663 | $ (700) | $ (172,323) |
Balance (in shares) at Jan. 31, 2016 | 55,108,668 | 70,671,000 | ||||
Treasury stock, shares at Jan. 31, 2016 | 15,562,622 | 15,563,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 58,311 | $ 27,725 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 30,836 | 21,196 |
Loss/(gain) on sale/disposition of assets | 138 | (54) |
Provision for losses on accounts receivable | 2 | 213 |
Deferred income taxes | 244 | 1,363 |
Stock-based compensation expense | 4,885 | 4,249 |
Changes in operating assets and liabilities (net effect of acquisitions): | ||
Accounts receivable | (34,536) | 5,139 |
Inventories | 1,244 | 5,430 |
Prepaid expenses and other current assets | 325 | (1,787) |
Income tax payable | (2,811) | 3,186 |
Accounts payable | 2,931 | (18,839) |
Accrued payroll | 7,874 | (10,078) |
Accrued taxes other than income | 2,423 | (496) |
Accrued profit sharing | 1,710 | (7,310) |
Accrued expenses | 1,621 | 43 |
Accrued warranty | (248) | (420) |
Other assets | (119) | (84) |
Other non-current liabilities | (1,087) | 471 |
Net cash provided by operating activities | 73,743 | 29,947 |
Cash flows from investing activities: | ||
Refunds of deposits on machinery and equipment | 4,222 | 1,398 |
Receipts from note receivable | 56 | 60 |
Payments to acquire patents and software | (248) | (171) |
Proceeds from sale of property and equipment | 61 | 263 |
Payments to acquire property and equipment | (22,933) | (24,240) |
Net cash used in investing activities | (18,842) | (182,647) |
Cash flows from financing activities: | ||
Proceeds from loans and notes payable | 105,000 | 175,000 |
Cash paid for debt issuance costs | (1,024) | (2,483) |
Payments on capital lease obligation | (447) | (447) |
Payments on notes payable | (103,150) | |
Payments to acquire treasury stock | (30,040) | |
Proceeds from exercise of options to acquire common stock, including employee stock purchase plan | 6,668 | 1,664 |
Payroll taxes paid as a result of restricted stock unit withholdings | (2,073) | (1,124) |
Excess tax benefit of stock-based compensation | 3,123 | 280 |
Net cash provided by financing activities | 8,097 | 142,850 |
Net increase/(decrease) in cash and cash equivalents | 62,998 | (9,850) |
Cash and cash equivalents, beginning of period | 42,222 | 68,860 |
Cash and cash equivalents, end of period | 105,220 | 59,010 |
Supplemental disclosure of cash flow information Cash paid for: | ||
Interest | 12,118 | 8,139 |
Income taxes | $ 31,484 | 12,000 |
Tri Town Precision Plastics Inc | ||
Cash flows from investing activities: | ||
Payments to acquire business, net of cash acquired | (23,805) | |
Battenfeld Acquisition Company Inc | ||
Cash flows from investing activities: | ||
Payments to acquire business, net of cash acquired | $ (136,152) |
Organization
Organization | 9 Months Ended |
Jan. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | (1) Organization: We are one of the world’s leading manufacturers of firearms. We manufacture a wide array of handguns (including revolvers and pistols), long guns (including modern sporting rifles, bolt action rifles, and single shot rifles), handcuffs, and firearm-related products and accessories for sale to a wide variety of customers, including gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and throughout the world. We are one of the largest manufacturers of handguns, modern sporting rifles, and handcuffs in the United States and an active participant in the hunting rifle market. As a result of an acquisition, we are now also a leading provider of shooting, reloading, gunsmithing, and gun cleaning supplies. We sell our products under the Smith & Wesson ® ® TM ® ® ® ® ® TM ® ® We manufacture our firearm products at our facilities in Springfield, Massachusetts; Houlton, Maine; and Deep River, Connecticut, and we develop and market our accessories products at our facility in Columbia, Missouri. We plan to continue to capitalize on the goodwill developed through our historic 163 year old “Smith & Wesson” brand as well as our other well-known brands by expanding consumer awareness of the products we produce. On May 5, 2014, we acquired substantially all of the net assets of Tri-Town Precision Plastics, Inc., or TTPP, which we refer to as the DRP Acquisition. On December 11, 2014, we acquired all of the issued and outstanding stock of Battenfeld Acquisition Company Inc., including its wholly owned subsidiary, Battenfeld Technologies, Inc., or BTI, which we refer to as the BTI Acquisition. See Note 3 – Acquisitions below for more information regarding these transactions. These acquisitions have been accounted for in accordance with ASC 805-20, Business Combinations, and, accordingly, the results of operations from the acquired businesses have been included in our consolidated financial statements following the acquisition dates. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (2) Basis of Presentation: Interim Financial Information – The consolidated balance sheet as of January 31, 2016, the consolidated statements of income and comprehensive income for the three and nine months ended January 31, 2016 and 2015, the consolidated statement of changes in stockholders’ equity for the nine months ended January 31, 2016, and the consolidated statements of cash flows for the nine months ended January 31, 2016 and 2015 have been prepared by us and are unaudited. In our opinion, all adjustments, which include only normal recurring adjustments necessary to fairly present the financial position, results of operations, changes in stockholders’ equity, and cash flows at January 31, 2016 and for the periods presented, have been included. All significant intercompany transactions have been eliminated in consolidation. The consolidated balance sheet as of April 30, 2015 has been derived from our audited consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2015. The results of operations for the nine months ended may Recently Issued Accounting Standards – In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU 2014-09, (Topic 606). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for interim reporting periods beginning October 1, 2017. In August 2015, the FASB issued ASU 2015-14 that deferred the effective date for ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We are currently evaluating the impact that ASU 2014-09 will have on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest In July 2015, the FASB issued ASU 2015-11, Inventory - Simplifying the Measurement of Inventory In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), |
Acquisitions
Acquisitions | 9 Months Ended |
Jan. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | (3) Acquisitions: DRP Acquisition On May 5, 2014, we acquired substantially all of the net assets of TTPP for $22.8 million, plus a $1.0 million working capital adjustment, for a total purchase price of $23.8 million, utilizing cash on hand. The DRP Acquisition of TTPP’s custom polymer injection molding capabilities was designed to vertically integrate a key component of our manufacturing operations and provide us with increased flexibility within our supply chain. BTI Acquisition On December 11, 2014, we acquired all of the issued and outstanding stock of BTI for $130.5 million, plus a $3.1 million working capital adjustment, for a total purchase price of $133.6 million, pursuant to a Stock Purchase and Sale Agreement. The BTI Acquisition was financed using a combination of existing cash balances and cash from a $100.0 million draw on our line of credit. Based in Columbia, Missouri, BTI is a leading provider of hunting and shooting accessories, which develops, produces, and delivers innovative, high-quality products under several brands. On January 9, 2015, we acquired substantially all of the net assets of Hooyman LLC, a manufacturer of extendable tree saws designed for the hunting and outdoor industry, for $1.9 million utilizing cash on hand, which we refer to as the Hooyman Acquisition. We have relocated its operations to our Columbia, Missouri facility. The aggregate purchase price of these acquisitions, including the working capital adjustments, was $135.5 million. We have completed the valuation of the assets acquired and liabilities assumed. During the nine months ended January 31, 2016, goodwill was increased by $738,000 primarily as a result of reductions in estimates in the fair values of acquired intangible assets and inventory reserves. The following table summarizes the estimated allocation of the purchase price for BTI at the acquisition date, which includes the net assets from the Hooyman Acquisition, as well as measurement period adjustments to date (in thousands): December 11, 2014 Measurement (As Initially Period December 11, 2014 Reported) Adjustments (As Adjusted) Cash $ 24 $ — $ 24 Accounts receivable 7,873 3 7,876 Inventories 12,819 (2 ) 12,817 Income tax receivable 393 (279 ) 114 Other current assets 563 — 563 Property, plant, and equipment 2,826 (318 ) 2,508 Intangibles 73,550 (1,000 ) 72,550 Goodwill 62,142 252 62,394 Total assets acquired 160,190 (1,344 ) 158,846 Accounts payable 1,647 2 1,649 Accrued expenses 326 83 409 Accrued payroll 904 — 904 Accrued taxes other than income 9 — 9 Deferred income taxes 21,128 (714 ) 20,414 Total liabilities assumed 24,014 (629 ) 23,385 $ 136,176 $ (715 ) $ 135,461 We recorded $1.7 million of acquisition-related costs during fiscal 2015 related to the BTI Acquisition. There were no acquisition-related costs relating to the BTI Acquisition for the nine months ended January 31, 2016. The goodwill that was recorded relating to the BTI Acquisition resulted from our ability to expand our presence in the firearm accessories market and leverage BTI’s broad portfolio of hunting and shooting accessories brands. Previously acquired goodwill of $12.0 million will be deductible for tax purposes over its remaining useful life. The remaining goodwill recorded as a result of the BTI Acquisition is not expected to be deductible for tax purposes. All of the goodwill recorded as a result of the BTI Acquisition has been allocated to our accessories segment. We amortize intangible assets in proportion to expected yearly revenue generated from the intangibles that were acquired. We amortize order backlog over the estimated life during which the backlog is fulfilled. The following are the identifiable intangible assets acquired (in thousands) and their respective weighted average lives: Weighted Average Life Amount (In years) Developed technology $ 16,430 4.3 Customer relationships 25,280 4.4 Trade names 30,740 5.4 Order backlog 100 0.3 $ 72,550 The following table reflects the unaudited pro forma results of operations assuming that the BTI Acquisition had occurred on May 1, 2014 (in thousands, except per share data): For the Three For the Nine Months Ended Months Ended January 31, 2015 January 31, 2015 Net sales $ 136,573 $ 401,884 Net income 8,620 26,064 Net income per share - diluted 0.16 0.47 The unaudited pro forma net income for the three and nine months ended January 31, 2015 has been adjusted to reflect increased cost of goods sold from the fair value step-up in inventory, which is expensed over the first inventory cycle, and the amortization of intangibles and order backlog incurred as if the acquisition had occurred on May 1, 2014. The unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of the actual results that would have been achieved had the BTI Acquisition occurred as of May 1, 2014 or the results that may be achieved in future periods. PowerTech Acquisition On February 26, 2016, we acquired substantially all of the net assets of PowerTech, Inc., for $1.2 million, utilizing cash on hand, and $275,000 will be payable in the future if a certain earnout is achieved. PowerTech, Inc., is a leading manufacturer of tactical flashlights, universal LED lights, and personal pocket lights designed for military, law enforcement, and sporting enthusiasts. We plan to transition and relocate its operations to our Columbia, Missouri facility. |
Goodwill
Goodwill | 9 Months Ended |
Jan. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | (4) Goodwill: The changes in the carrying amount of goodwill for the nine month period ended January 31, 2016 by reporting segment are as follows: Firearms Accessories Total Division Division Goodwill Balance as of April 30, 2015 $ 13,770 $ 61,656 $ 75,426 Measurement period adjustments — 738 738 Balance as of January 31, 2016 $ 13,770 $ 62,394 $ 76,164 Refer to Note 11 – Segment Information |
Notes Payable
Notes Payable | 9 Months Ended |
Jan. 31, 2016 | |
Debt Disclosure [Abstract] | |
Notes Payable | (5) Notes Payable: Credit Facilities – On June 15, 2015, we entered into a new unsecured credit facility, or the Credit Agreement, with TD Bank, N.A. and other lenders, or the Lenders, which included a $175.0 million revolving line of credit, or the Revolving Line, and a $105.0 million term loan, or the Term Loan, of which $101.9 million remains outstanding as of January 31, 2016. The Revolving Line provides for availability until June 15, 2020 for general corporate purposes, with borrowings to bear interest at a variable rate equal to LIBOR or prime plus an applicable margin based on our consolidated leverage ratio, at our election. As of January 31, 2016, there were no borrowings outstanding on the Revolving Line. Had there been borrowings, they would have borne an interest rate of 3.75% per annum if we had selected the prime rate option and a range of 1.93% to 2.12% per annum if we had selected the LIBOR rate option. The Term Loan, which bears variable interest at rates calculated in the same manner as the Revolving Line, or 1.925% based on the one-month LIBOR rate at January 31, 2016, was entered into for the purpose of redeeming the entire $100.0 million outstanding principal balance of our 5.875% Senior Notes due 2017, or the 5.875% Senior Notes. The Term Loan requires principal payments of $6.3 million per annum plus interest, payable quarterly. Any remaining outstanding amount on the maturity date of June 15, 2020 will be due in full. Concurrent with closing the Term Loan, we redeemed our 5.875% Senior Notes for a $2.9 million call premium, which is included in interest expense, plus accrued and unpaid interest. In connection with the redemption, we expensed $1.7 million of unamortized debt-issuance costs related to our 5.875% Senior Notes, which is included in interest expense in the accompanying consolidated statements of income and comprehensive income. We incurred $1.0 million of debt issuance costs related to our new credit facility, which are included in notes payable in the accompanying consolidated balance sheet. We were required to obtain fixed interest rate protection on the Term Loan covering not less than 75% of the aggregate outstanding principal balance of the Term Loan. Accordingly, on June 18, 2015, we entered into an interest rate swap agreement, which expires on June 15, 2020, that covered 100% of the $105.0 million of floating rate debt. On July 6, 2015, we executed an interest rate swap pursuant to such agreement, which requires us to pay interest at a defined rate of 1.56% while receiving interest at a defined variable rate of one-month LIBOR (0.188% at July 31, 2015). This swap, when combined with the applicable margin based on our consolidated leverage ratio, effectively fixed our interest rate on the Term Loan, which is subject to change based on changes in our consolidated leverage ratio. As of January 31, 2016, our interest rate on the Term Loan is 3.06%. We recognize derivatives as either assets or liabilities on our consolidated balance sheets at fair value. The accounting for changes in the fair value (i.e., unrealized gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship. Derivatives that do not qualify for hedge accounting must be adjusted to fair value through earnings. Our interest rate swap agreement is considered effective and qualifies as a cash flow hedge. The effective portion of the gain or loss on the derivative that is designated and qualifies as a cash flow hedge is recorded as a component of accumulated other comprehensive income or loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. As of January 31, 2016, the interest rate swap was considered effective and had no effect on earnings. The fair value of the interest rate swap on January 31, 2016 was a liability of $1.2 million and was included in other long-term liabilities on our consolidated balance sheet. We do not expect the interest rate swap to have any material effect on earnings within the next 12 months. As of January 31, 2016, the effective interest rate of our Term Loan was 3.06%. 5.000% Senior Notes – During fiscal 2015, we issued an aggregate of $75.0 million of 5.000% Senior Notes due 2018, or the 5.000% Senior Notes, to various institutional investors pursuant to the terms and conditions of an indenture, or the 5.000% Senior Notes Indenture, and purchase agreements. The 5.000% Senior Notes bear interest at a rate of 5.000% per annum payable on January 15 and July 15 of each year, beginning on January 15, 2015. We incurred $2.3 million of debt issuance costs related to the issuance of the 5.000% Senior Notes. At any time prior to July 15, 2016, we may, at our option (a) upon not less than 30 nor more than 60 days’ prior notice, redeem all or a portion of the 5.000% Senior Notes at a redemption price of 100% of the principal amount of the 5.000% Senior Notes, plus an applicable premium, plus accrued and unpaid interest as of the redemption date; or (b) redeem up to 35% of the aggregate principal amount of the 5.000% Senior Notes with the net cash proceeds of one or more equity offerings at a redemption price of 105.000% of the principal amount of the 5.000% Senior Notes, plus accrued and unpaid interest as of the redemption date; provided, that in the case of the foregoing clause, at least 65% of the aggregate original principal amount of the 5.000% Senior Notes remains outstanding, and the redemption occurs within 60 days after the closing of the equity offering. On and after July 15, 2016, we may, at our option, upon not less than 30 nor more than 60 days’ prior notice, redeem all or a portion of the 5.000% Senior Notes at a redemption price of (a) 102.500% of the principal amount of the 5.000% Senior Notes to be redeemed, if redeemed during the 12-month period beginning on July 15, 2016; or (b) 100% of the principal amount of the 5.000% Senior Notes to be redeemed, if redeemed during the 12-month period beginning on July 15, 2017, plus, in either case, accrued and unpaid interest on the 5.000% Senior Notes as of the applicable redemption date. Subject to certain restrictions and conditions, we may be required to make an offer to repurchase the 5.000% Senior Notes from the holders of the 5.000% Senior Notes in connection with a change of control or disposition of assets. If not redeemed by us or repaid pursuant to the holders’ right to require repurchase, the 5.000% Senior Notes mature on July 15, 2018. The 5.000% Senior Notes are general, unsecured obligations of our company. The 5.000% Senior Notes Indenture contains certain affirmative and negative covenants, including limitations on restricted payments (such as share repurchases, dividends, and early payment of indebtedness), limitations on indebtedness, limitations on the sale of assets, and limitations on liens. Payments that would otherwise be characterized as restricted payments are permitted under the 5.000% Senior Notes Indenture in an amount not to exceed 50% of our consolidated net income for the period from the issue date to the date of the restricted payment, provided that at the time of making such payments, (a) no default has occurred or would result from the making of such payments, and (b) we are able to satisfy the debt incurrence test under the 5.000% Senior Notes Indenture, or the 5.000% Senior Notes Lifetime Aggregate Limit. In addition, the 5.000% Senior Notes Indenture provides for other exceptions to the restricted payments covenant, each of which are independent of the 5.000% Senior Notes Lifetime Aggregate Limit. Among such exceptions are (i) the ability to make share repurchases each fiscal year in an amount not to exceed the lesser of (A) $50.0 million in any fiscal year or (B) 75.0% of our consolidated net income for the previous four consecutive published fiscal quarters prior to the date of the determination of such consolidated net income, and (ii) share repurchases over the life of the 5.000% Senior Notes in an aggregate amount not to exceed $75.0 million. The limitation on indebtedness in the 5.000% Senior Notes Indenture is only applicable at such time that the consolidated coverage ratio (as set forth in the 5.000% Senior Notes Indenture) for us and our restricted subsidiaries is less than 3.00 to 1.00. In general, as set forth in the 5.000% Senior Notes Indenture, the consolidated coverage ratio is determined by comparing our prior four quarters’ consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) to our consolidated interest expense. The Credit Agreement for our credit facility contains financial covenants relating to maintaining maximum leverage and minimum debt service coverage. The 5.000% Senior Notes Indenture contains a financial covenant relating to times interest earned. Letters of Credit – At January 31, 2016, we had outstanding letters of credit under our credit facility aggregating $1.0 million. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Jan. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (6) Fair Value Measurement: We follow the provisions of ASC 820-10, Fair Value Measurements and Disclosures Topic Financial assets and liabilities recorded on the accompanying consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: Level 1 — Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we have the ability to access at the measurement date (examples include active exchange-traded equity securities, listed derivatives, and most U.S. Government and agency securities). Our cash equivalents, which are measured at fair value on a recurring basis, totaled $105.2 million and $42.2 million as of January 31, 2016 and April 30, 2015, respectively. We utilized Level 1 of the value hierarchy to determine the fair values of these assets. Level 2 — Financial assets and liabilities whose values are based on quoted prices in markets in which trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 2 inputs include the following: · quoted prices for identical or similar assets or liabilities in non-active markets (such as corporate and municipal bonds that trade infrequently); · inputs other than quoted prices that are observable for substantially the full term of the asset or liability (such as interest rate and currency swaps); and · inputs that are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability (such as certain securities and derivatives). The fair value of our Term Loan is equal to the carrying value of January 31, 2016. The fair value of our 5.000% Senior Notes as of January 31, 2016 is approximate to the carrying value in considering Level 2 inputs within the hierarchy as the Senior Notes are not frequently traded. The fair value of the interest rate swap of $1.2 million as of January 31, 2016 was estimated by a third party using inputs that are observable or that can be corroborated by observable market data, such as interest rate yield curves, and, therefore, are classified within Level 2 of the valuation hierarchy. Level 3 — Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our assumptions about the assumptions a market participant would use in pricing the asset or liability. We currently do not have any Level 3 financial assets or liabilities. |
Inventories
Inventories | 9 Months Ended |
Jan. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | (7) Inventories: The following table sets forth a summary of inventories, net of reserves, stated at lower of cost or market, as of January 31, 2016 and April 30, 2015 (in thousands): January 31, 2016 April 30, 2015 Finished goods $ 27,562 $ 28,240 Finished parts 30,567 34,269 Work in process 8,047 7,492 Raw material 9,366 6,894 Total inventories $ 75,542 $ 76,895 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Jan. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | (8) Intangible Assets: The following table presents a summary of intangible assets as of January 31, 2016 and April 30, 2015 (in thousands): January 31, 2016 April 30, 2015 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 27,860 $ (5,198 ) $ 22,662 $ 28,260 $ (1,633 ) $ 26,627 Developed technology 16,430 (2,369 ) 14,061 16,630 (1,014 ) 15,616 Patents, trademarks, and trade names 36,095 (8,171 ) 27,924 36,380 (5,303 ) 31,077 80,385 (15,738 ) 64,647 81,270 (7,950 ) 73,320 Patents in progress 367 — 367 448 — 448 $ 80,752 $ (15,738 ) $ 65,014 $ 81,718 $ (7,950 ) $ 73,768 Intangible assets with determinable lives are amortized over a weighted-average period of approximately six years. The weighted-average periods of amortization by intangible asset class is approximately five years for customer relationships, six years for developed technology, and five years for patents, trademarks, and trade names. Amortization expense, excluding amortization of deferred financing costs, amounted to $2.8 million and $1.6 million for the three months ended January 31, 2016 and 2015, respectively. Amortization expense, excluding amortization of deferred financing costs, amounted to $7.9 million and $4.6 million for the nine months ended January 31, 2016 and 2015, respectively. Estimated amortization expense of intangible assets for the remainder of fiscal 2016 and succeeding fiscal years is as follows: Fiscal Amount 2016 $ 2,819 2017 10,501 2018 9,755 2019 8,568 2020 7,420 Thereafter 25,584 Total $ 64,647 On an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired, the fair value of the indefinite-lived intangible assets is evaluated to determine if an impairment charge is required. We performed our most recent annual impairment review as of February 1, 2015. There were no events or changes in circumstances that would indicate the fair value of intangible assets was reduced to below its carrying value during the nine months ended January 31, 2016, and therefore intangible assets were not tested for impairment. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jan. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | (9) Stockholders’ Equity: Treasury Stock During fiscal 2016, our board of directors authorized the repurchase of up to $50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions until June 23, 2017. As of January 31, 2016, we made no share repurchases under this stock repurchase program. Earnings per Share The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three and nine months ended January 31, 2016 and 2015 (in thousands, except per share data): For the Three Months Ended January 31, 2016 2015 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic earnings $ 31,434 54,857 $ 0.57 $ 8,121 53,724 $ 0.15 Effect of dilutive stock awards — 1,124 (0.01 ) — 1,135 — Diluted earnings $ 31,434 55,981 $ 0.56 $ 8,121 54,859 $ 0.15 For the Nine Months Ended January 31, 2016 2015 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic earnings $ 58,311 54,508 $ 1.07 $ 27,725 54,033 $ 0.51 Effect of dilutive stock awards — 1,276 (0.02 ) — 1,225 (0.01 ) Diluted earnings $ 58,311 55,784 $ 1.05 $ 27,725 55,258 $ 0.50 All of our outstanding stock options and restricted stock units, or RSUs, were included in the computation of diluted earnings per share for the three and nine months ended January 31, 2016. For the three and nine months ended January 31, 2015, there were 134,866, and 70,978 shares, respectively, of common stock issuable upon the exercise of stock options and under our 2011 Employee Stock Purchase Plan, or ESPP, that were excluded from the computation of diluted earnings per share because the effect would be antidilutive. Incentive Stock and Employee Stock Purchase Plans We have two stock plans: the 2004 Incentive Stock Plan and the 2013 Incentive Stock Plan. New grants under the 2004 Incentive Stock Plan have not been made since the approval of the 2013 Incentive Stock Plan at our September 23, 2013 annual meeting of stockholders. All new grants covering all participants are issued under the 2013 Incentive Stock Plan. Except in specific circumstances, grants vest over a period of three or four years and are exercisable for a period of 10 years. The plan also permits the grant of awards to non-employees, which our board of directors has authorized in the past. The number of shares and weighted average exercise prices of options for the nine months ended January 31, 2016 and 2015 were as follows: For the Nine Months Ended January 31, 2016 2015 Weighted- Weighted- Average Average Shares Exercise Price Shares Exercise Price Options outstanding, beginning of year 1,879,630 $ 6.37 2,258,349 $ 6.15 Exercised during the period (707,179 ) 8.26 (222,884 ) 4.62 Canceled/forfeited during period — — (13,000 ) 7.98 Options outstanding, end of period 1,172,451 $ 5.23 2,022,465 $ 6.31 Weighted average remaining contractual life 5.07 years 5.28 years Options exercisable, end of period 1,172,457 $ 5.23 1,943,800 $ 6.23 Weighted average remaining contractual life 5.07 years 5.20 years The aggregate intrinsic value of outstanding stock options as of January 31, 2016 and 2015 was $19.2 million and $12.7 million, respectively. The aggregate intrinsic value of outstanding stock options that were exercisable as of January 31, 2016 and 2015 was $19.2 million and $12.4 million, respectively. The aggregate intrinsic value of the stock options exercised for the nine months ended January 31, 2016 and 2015 was $9.1 million and $1.7 million, respectively. At January 31, 2016, there were no unrecognized compensation costs of outstanding options. On September 26, 2011, our stockholders approved our ESPP. All options and rights to participate in our ESPP are nontransferable and subject to forfeiture in accordance with the terms of our ESPP. In the event of certain corporate transactions, each option outstanding under our ESPP will be assumed or an equivalent option will be substituted by the successor corporation or a parent or subsidiary of such successor corporation. We measure the cost of employee services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. We calculate the fair value of our stock options issued to employees using the Black-Scholes model at the time the options are granted. That amount is then amortized over the vesting period of the option. With our ESPP, fair value is determined at the beginning of the purchase period and amortized over the term of each exercise period. During the nine months ended January 31, 2016 and 2015, 92,249 and 84,081 shares were purchased under our ESPP, respectively. We estimate expected volatility using historical volatility for the expected term. The fair value of each stock option or ESPP purchase was estimated on the date of the grant using the Black-Scholes option pricing model (using the risk-free interest rate, expected term, expected volatility, and dividend yield variables). The total stock-based compensation expense, including stock options, purchases under our ESPP, RSUs, and performance-based RSUs, or PSUs, was $4.9 million and $4.2 million for the nine months ended January 31, 2016 and 2015, respectively. Stock-based compensation expense is included in cost of sales, sales and marketing, research and development, and general and administrative expenses. We grant service-based RSUs to employees, consultants, and directors. The awards are made at no cost to the recipient. An RSU represents the right to acquire one share of our common stock and does not carry voting or dividend rights. Except in specific circumstances, RSU grants to employees generally vest over a period of three or four years with one-third or one-fourth of the units vesting, respectively, on each anniversary date of the grant date. We amortize the aggregate fair value of our RSU grants to compensation expense over the vesting period. We grant PSUs with market conditions to our executive officers, and we grant PSUs without market conditions to certain other employees who are not executive officers. At the time of grant, we calculate the fair value of our market-condition PSUs using the Monte-Carlo simulation, using the risk-free interest rate, expected volatility, the correlation coefficient utilizing the same historical price data used to develop the volatility assumptions and dividend yield variables. The market-condition PSUs vest, and the fair value of such PSUs are recognized, over the corresponding three-year performance period. Our market-condition PSUs have a maximum aggregate award equal to 200% of the target amount granted. The number of market-condition PSUs that may be earned depends upon the total stockholder return, or TSR, of our common stock compared with the TSR of the Russell 2000 Index, or RUT, over the three-year performance period. For the fiscal 2014 and 2013 PSUs, our stock must outperform the RUT by 10% in order for the target award to vest. For our fiscal 2015 PSUs, our stock must outperform the RUT by 5% in order for the target award to vest. In addition, there is a cap on the number of shares that can be earned under the fiscal 2015 PSUs equal to six times the grant-date value of each award. In certain circumstances beginning with the fiscal 2015 RSUs and PSUs, the vested awards will be delivered on the first anniversary of the applicable vesting date. We have applied a discount to the grant date fair value when determining the amount of compensation expense to be recorded for these RSUs and PSUs. During the nine months ended January 31, 2016, we granted an aggregate of 201,242 service-based RSUs and 5,379 PSUs without market conditions; 30,416 RSUs to our directors; and 170,826 RSUs and 5,379 PSUs to non-executive officer employees. In addition, in connection with a 2012 grant, 104,000 market-condition PSUs vested (i.e., the target amount granted), which achieved 173.3% of the maximum award possible resulting in awards totaling 180,231 shares to certain of our executive officers and a former executive officer. Compensation expense recognized related to grants of RSUs and PSUs was $4.5 million for the nine months ended January 31, 2016. We delivered common stock to employees during the nine months ended January 31, 2016 under vested RSUs and PSUs with a total market value of $6.3 million. During the nine months ended January 31, 2015, we granted an aggregate of 452,600 service-based RSUs, including 25,000 RSUs to certain of our executive officers; and 50,500 RSUs to our directors. In addition, in connection with a 2011 grant, 46,600 market-condition PSUs vested (i.e., the target amount granted), which achieved the maximum aggregate award possible resulting in awards totaling 93,200 shares to certain of our executive officers and a former executive officer. Compensation expense recognized related to grants of RSUs and PSUs was $3.7 million for the nine months ended January 31, 2015. We delivered common stock to employees and directors under vested RSUs and PSUs with a total market value of $3.7 million during the nine months ended January 31, 2015. A summary of activity in unvested RSUs and PSUs for the nine months ended January 31, 2016 and 2015 is as follows: For the Nine Months Ended January 31, 2016 2015 Weighted Weighted Total # of Average Total # of Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value RSUs and PSUs outstanding, beginning of year 1,190,879 $ 12.45 1,015,475 $ 10.56 Awarded 282,852 14.44 499,200 10.51 Vested (363,285 ) 10.36 (318,171 ) 8.75 Forfeited (82,390 ) 10.81 (96,204 ) 12.42 RSUs and PSUs outstanding, end of period 1,028,056 $ 13.65 1,100,300 $ 11.87 As of January 31, 2016, there was $5.8 million of unrecognized compensation cost related to unvested RSUs and PSUs. This cost is expected to be recognized over a weighted average remaining contractual term of 1.4 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jan. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) Commitments and Contingencies: Litigation We are a defendant in a number of product liability cases, which primarily allege defective product design, defective manufacturing, or failure to provide adequate warnings. In addition, we are a co-defendant in a case filed on August 27, 1999 by the city of Gary, Indiana against numerous firearm manufacturers, distributors, and dealers seeking to recover damages allegedly arising out of the misuse of firearms by third parties. We believe that the various allegations as described above are unfounded, and, in addition, that any accident and any results from them were due to negligence or misuse of the firearm by the claimant or a third party. In addition, we are involved in lawsuits, claims, investigations, and proceedings, including commercial, environmental, and employment matters, which arise in the ordinary course of business. The relief sought in individual cases primarily includes compensatory and, sometimes, punitive damages. Certain of the cases and claims seek unspecified compensatory or punitive damages. In others, compensatory damages sought may range from less than $75,000 to approximately $1.5 million. In our experience, initial demands do not generally bear a reasonable relationship to the facts and circumstances of a particular matter. We believe that our accruals for product liability cases and claims, as described below, are a reasonable quantitative measure of the cost to us of product liability cases and claims. We are vigorously defending ourselves in the lawsuits to which we are subject. An unfavorable outcome or prolonged litigation could harm our business. Litigation of this nature also is expensive and time consuming and diverts the time and attention of our management. We monitor the status of known claims and the related product liability accrual, which includes amounts for defense costs for asserted and unasserted claims. After consultation with litigation counsel and a review of the merit of each claim, we have concluded that we are unable to reasonably estimate the probability or the estimated range of reasonably possible losses related to material adverse judgments related to such claims and, therefore, we have not accrued for any such judgments. To the extent that circumstances change and we determine that a loss (or an additional loss in excess of our accrual) is at least reasonably possible and material, we would then disclose an estimate of the possible loss or range of loss, if such estimate could be made, or disclose that an estimate could not be made. We believe that we have provided for adequate reserves for defense costs. We have recorded our liability for defense costs before consideration for reimbursement from insurance carriers. We have also recorded the amounts due as reimbursement under existing policies from the insurance carriers as a receivable shown in other current assets and other assets. During the nine months ended January 31, 2016, we received a $1.8 million insurance recovery, which was recorded in general and administrative expenses, as a result of an insurance settlement agreement for partial reimbursement of defense costs we incurred in prior fiscal years related to our resolved government investigation. At this time, an estimated range of reasonably possible additional losses relating to unfavorable outcomes cannot be made. Environmental Remediation We are subject to numerous federal, state, and local laws that regulate the health and safety of our workforce as well as our environmental liability, including those regulations monitored by the Occupational Health and Safety Administration (OSHA), the National Fire Protection Association (NFPA), and the Department of Public Health (DPH). Though not exhaustive, examples of applicable regulations include confined space safety, walking and working surfaces, machine guarding, and life safety. We are required to comply with regulations that mitigate any release into the environment. These laws require us to make significant expenditures of both a capital and expense nature. Several of the more significant federal laws applicable to our operations include the Clean Air Act, the Clean Water Act, the Comprehensive Environmental Response, Compensation and Liability Act, or CERCLA, and the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. We have in place programs and personnel to monitor compliance with various federal, state, and local environmental regulations. In the normal course of our manufacturing operations, we are subject to governmental proceedings and orders pertaining to waste disposal, air emissions, and water discharges into the environment. We fund our environmental costs through cash flows from operations. We believe that we are in compliance with applicable environmental regulations in all material respects. We are required to remediate hazardous waste at our facilities. Currently, we own a designated site in Springfield, Massachusetts that contains two release areas, which are the focus of remediation projects as part of the Massachusetts Contingency Plan, or the MCP. The MCP provides a structured environment for the voluntary remediation of regulated releases. We may be required to remove hazardous waste or remediate the alleged effects of hazardous substances on the environment associated with past disposal practices at sites not owned by us. We have received notice that we are a potentially responsible party from the Environmental Protection Agency and/or individual states under CERCLA or a state equivalent at two sites. As of January 31, 2016 and April 30, 2015, respectively, we had recorded a $675,000 environmental reserve in non-current liabilities. We have calculated the net present value of the environmental reserve to be equal to the carrying value of the liability recorded on our books. Our estimate of these costs is based upon currently enacted laws and regulations, currently available facts, experience in remediation efforts, existing technology, and the ability of other potentially responsible parties or contractually liable parties to pay the allocated portions of any environmental obligations. When the available information is sufficient to estimate the amount of liability, that estimate has been used; when the information is only sufficient to establish a range of probable liability and no point within the range is more likely than any other, the lower end of the range has been used. We may not have insurance coverage for our environmental remediation costs. We have not recognized any gains from probable recoveries or other gain contingencies. We calculated the environmental reserve using undiscounted amounts based on independent environmental remediation reports obtained. On May 5, 2014, we acquired substantially all of the net assets of TTPP. Under the asset purchase agreement, the former stockholder of TTPP indemnified us for losses arising from, among other things, environmental conditions related to its manufacturing activities. Of the purchase price, $3.0 million was placed in an escrow account, of which $250,000 remains available. A portion of the remaining escrow will be applied to environmental remediation at the manufacturing site in Deep River, Connecticut. We believe the likelihood of environmental remediation costs exceeding the amount available in escrow to be remote. Based on information known to us, we do not expect current environmental regulations or environmental proceedings and claims to have a material adverse effect on our consolidated financial position, results of operations, or cash flows. However, it is not possible to predict with certainty the impact on us of future environmental compliance requirements or of the cost of resolution of future environmental health and safety proceedings and claims, in part because the scope of the remedies that may be required is not certain, liability under federal environmental laws is joint and several in nature, and environmental laws and regulations are subject to modification and changes in interpretation. There can be no assurance that additional or changing environmental regulation will not become more burdensome in the future and that any such development would not have a material adverse effect on our company. |
Segment Information
Segment Information | 9 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | (11) Segment Information: The firearms segment consists of products and services manufactured in and sold from our Springfield, Massachusetts; Houlton, Maine; and Deep River, Connecticut facilities, which includes firearms, handcuffs, and other related products sold through a distribution chain and direct sales to consumers and international, state, and federal governments. The accessories segment consists of hunting and shooting accessories developed and marketed from our Columbia, Missouri facility. Operating costs are reported based on the activities performed within each segment. Segment assets are those directly used in or clearly allocable to an operating segment’s operations. Total assets for our firearms segment as of January 31, 2016 were $429.9 million. Included in the assets of our firearms segment were intangible assets totaling $3.1 million; property, plant, and equipment totaling $133.7 million; and goodwill totaling $13.8 million. Total assets for our accessories segment as of January 31, 2016 were $147.2 million. Included in the assets of the accessories segment were intangible assets totaling $61.9 million; property, plant, and equipment totaling $2.5 million; and goodwill totaling $62.4 million. Results by business segment are presented in the following tables for the three months ended January 31, 2016 and 2015 (in thousands): For the Three Months Ended January 31, 2016 (a) Firearms Accessories Intersegment eliminations Total Revenue from external customers $ 194,650 $ 16,136 $ — $ 210,786 Intersegment revenue 795 66 (861 ) — Total net sales 195,445 16,202 (861 ) 210,786 Cost of sales 117,284 7,767 (923 ) 124,128 Gross margin 78,160 8,436 62 86,658 Operating income 49,137 949 (b) 62 50,148 Income tax expense 16,427 203 — 16,630 For the Three Months Ended January 31, 2015 (c) Firearms Accessories Intersegment eliminations Total Revenue from external customers $ 124,490 $ 6,060 $ — $ 130,550 Intersegment revenue — — — — Total net sales 124,490 6,060 — 130,550 Cost of sales 81,958 4,768 (d) — 86,726 Gross margin 42,532 1,292 (d) — 43,824 Operating income 17,571 (1,960 ) (e) — 15,611 Income tax expense 5,280 (726 ) — 4,554 Results by business segment are presented in the following tables for the nine months ended January 31, 2016 and 2015 (in thousands): For the Nine Months Ended January 31, 2016 (a) Firearms Accessories Intersegment eliminations Total Revenue from external customers $ 453,961 $ 47,830 $ — $ 501,791 Intersegment revenue 795 709 (1,504 ) — Total net sales 454,756 48,539 (1,504 ) 501,791 Cost of sales 278,147 23,405 (1,504 ) 300,048 Gross margin 177,174 24,569 — 201,743 Operating income 99,104 2,643 (b) — 101,747 Income tax expense 31,110 734 — 31,844 For the Nine Months Ended January 31, 2015 (c) Firearms Accessories Intersegment eliminations Total Revenue from external customers $ 364,805 $ 6,060 $ — $ 370,865 Intersegment revenue — — — — Total net sales 364,805 6,060 — 370,865 Cost of sales 238,315 4,768 (d) — 243,083 Gross margin 126,490 1,292 (d) — 127,782 Operating income 54,018 (1,960 ) (e) — 52,058 Income tax expense 17,252 (726 ) — 16,526 _______________ (a) We allocate all of corporate overhead expenses, such as general and administrative expenses and other corporate-level expenses, to both our firearm and accessories segments. (b) Amount includes $2.6 million and $7.2 million for the three and nine months ended January 31, 2016, respectively, of amortization of intangible assets identified as a result of the BTI Acquisition. ( c ) Results of operations for the three and nine months ended January 31, 2015 include activity for the period subsequent to the BTI Acquisition. Due to the timing of the BTI Acquisition, the segment data above includes all corporate overhead expenses in our firearms segment. ( d ) Amount includes $1.8 million of additional cost of goods sold from the fair value step-up in inventory at the date of the BTI Acquisition. ( e ) Amount includes $1.3 million for the three and nine months ended January 31, 2015, of amortization of intangible assets identified as a result of the BTI Acquisition. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information – The consolidated balance sheet as of January 31, 2016, the consolidated statements of income and comprehensive income for the three and nine months ended January 31, 2016 and 2015, the consolidated statement of changes in stockholders’ equity for the nine months ended January 31, 2016, and the consolidated statements of cash flows for the nine months ended January 31, 2016 and 2015 have been prepared by us and are unaudited. In our opinion, all adjustments, which include only normal recurring adjustments necessary to fairly present the financial position, results of operations, changes in stockholders’ equity, and cash flows at January 31, 2016 and for the periods presented, have been included. All significant intercompany transactions have been eliminated in consolidation. The consolidated balance sheet as of April 30, 2015 has been derived from our audited consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2015. The results of operations for the nine months ended may |
Recently Issued Accounting Standards | Recently Issued Accounting Standards – In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU 2014-09, (Topic 606). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for interim reporting periods beginning October 1, 2017. In August 2015, the FASB issued ASU 2015-14 that deferred the effective date for ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We are currently evaluating the impact that ASU 2014-09 will have on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest In July 2015, the FASB issued ASU 2015-11, Inventory - Simplifying the Measurement of Inventory In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), |
Acquisitions (Tables)
Acquisitions (Tables) - BTI Acquisition | 9 Months Ended |
Jan. 31, 2016 | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | We have completed the valuation of the assets acquired and liabilities assumed. During the nine months ended January 31, 2016, goodwill was increased by $738,000 primarily as a result of reductions in estimates in the fair values of acquired intangible assets and inventory reserves. The following table summarizes the estimated allocation of the purchase price for BTI at the acquisition date, which includes the net assets from the Hooyman Acquisition, as well as measurement period adjustments to date (in thousands): December 11, 2014 Measurement (As Initially Period December 11, 2014 Reported) Adjustments (As Adjusted) Cash $ 24 $ — $ 24 Accounts receivable 7,873 3 7,876 Inventories 12,819 (2 ) 12,817 Income tax receivable 393 (279 ) 114 Other current assets 563 — 563 Property, plant, and equipment 2,826 (318 ) 2,508 Intangibles 73,550 (1,000 ) 72,550 Goodwill 62,142 252 62,394 Total assets acquired 160,190 (1,344 ) 158,846 Accounts payable 1,647 2 1,649 Accrued expenses 326 83 409 Accrued payroll 904 — 904 Accrued taxes other than income 9 — 9 Deferred income taxes 21,128 (714 ) 20,414 Total liabilities assumed 24,014 (629 ) 23,385 $ 136,176 $ (715 ) $ 135,461 |
Identifiable Intangible Assets Acquired and Respective Estimated Lives | The following are the identifiable intangible assets acquired (in thousands) and their respective weighted average lives: Weighted Average Life Amount (In years) Developed technology $ 16,430 4.3 Customer relationships 25,280 4.4 Trade names 30,740 5.4 Order backlog 100 0.3 $ 72,550 |
Unaudited Pro Forma Results of Operations | The following table reflects the unaudited pro forma results of operations assuming that the BTI Acquisition had occurred on May 1, 2014 (in thousands, except per share data): For the Three For the Nine Months Ended Months Ended January 31, 2015 January 31, 2015 Net sales $ 136,573 $ 401,884 Net income 8,620 26,064 Net income per share - diluted 0.16 0.47 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the nine month period ended January 31, 2016 by reporting segment are as follows: Firearms Accessories Total Division Division Goodwill Balance as of April 30, 2015 $ 13,770 $ 61,656 $ 75,426 Measurement period adjustments — 738 738 Balance as of January 31, 2016 $ 13,770 $ 62,394 $ 76,164 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The following table sets forth a summary of inventories, net of reserves, stated at lower of cost or market, as of January 31, 2016 and April 30, 2015 (in thousands): January 31, 2016 April 30, 2015 Finished goods $ 27,562 $ 28,240 Finished parts 30,567 34,269 Work in process 8,047 7,492 Raw material 9,366 6,894 Total inventories $ 75,542 $ 76,895 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The following table presents a summary of intangible assets as of January 31, 2016 and April 30, 2015 (in thousands): January 31, 2016 April 30, 2015 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 27,860 $ (5,198 ) $ 22,662 $ 28,260 $ (1,633 ) $ 26,627 Developed technology 16,430 (2,369 ) 14,061 16,630 (1,014 ) 15,616 Patents, trademarks, and trade names 36,095 (8,171 ) 27,924 36,380 (5,303 ) 31,077 80,385 (15,738 ) 64,647 81,270 (7,950 ) 73,320 Patents in progress 367 — 367 448 — 448 $ 80,752 $ (15,738 ) $ 65,014 $ 81,718 $ (7,950 ) $ 73,768 |
Schedule of Future Expected Amortization Expense | Estimated amortization expense of intangible assets for the remainder of fiscal 2016 and succeeding fiscal years is as follows: Fiscal Amount 2016 $ 2,819 2017 10,501 2018 9,755 2019 8,568 2020 7,420 Thereafter 25,584 Total $ 64,647 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Equity [Abstract] | |
Reconciliation of Net Income Amounts and Weighted Average Number of Common and Common Equivalent Shares Used to Determine Basic and Diluted Earnings per Share | The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three and nine months ended January 31, 2016 and 2015 (in thousands, except per share data): For the Three Months Ended January 31, 2016 2015 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic earnings $ 31,434 54,857 $ 0.57 $ 8,121 53,724 $ 0.15 Effect of dilutive stock awards — 1,124 (0.01 ) — 1,135 — Diluted earnings $ 31,434 55,981 $ 0.56 $ 8,121 54,859 $ 0.15 For the Nine Months Ended January 31, 2016 2015 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic earnings $ 58,311 54,508 $ 1.07 $ 27,725 54,033 $ 0.51 Effect of dilutive stock awards — 1,276 (0.02 ) — 1,225 (0.01 ) Diluted earnings $ 58,311 55,784 $ 1.05 $ 27,725 55,258 $ 0.50 |
Share Based Compensation Stock Options Activity | The number of shares and weighted average exercise prices of options for the nine months ended January 31, 2016 and 2015 were as follows: For the Nine Months Ended January 31, 2016 2015 Weighted- Weighted- Average Average Shares Exercise Price Shares Exercise Price Options outstanding, beginning of year 1,879,630 $ 6.37 2,258,349 $ 6.15 Exercised during the period (707,179 ) 8.26 (222,884 ) 4.62 Canceled/forfeited during period — — (13,000 ) 7.98 Options outstanding, end of period 1,172,451 $ 5.23 2,022,465 $ 6.31 Weighted average remaining contractual life 5.07 years 5.28 years Options exercisable, end of period 1,172,457 $ 5.23 1,943,800 $ 6.23 Weighted average remaining contractual life 5.07 years 5.20 years |
Summary of Activity in Unvested RSUs and PSUs | A summary of activity in unvested RSUs and PSUs for the nine months ended January 31, 2016 and 2015 is as follows: For the Nine Months Ended January 31, 2016 2015 Weighted Weighted Total # of Average Total # of Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value RSUs and PSUs outstanding, beginning of year 1,190,879 $ 12.45 1,015,475 $ 10.56 Awarded 282,852 14.44 499,200 10.51 Vested (363,285 ) 10.36 (318,171 ) 8.75 Forfeited (82,390 ) 10.81 (96,204 ) 12.42 RSUs and PSUs outstanding, end of period 1,028,056 $ 13.65 1,100,300 $ 11.87 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Results by Business Segment | Results by business segment are presented in the following tables for the three months ended January 31, 2016 and 2015 (in thousands): For the Three Months Ended January 31, 2016 (a) Firearms Accessories Intersegment eliminations Total Revenue from external customers $ 194,650 $ 16,136 $ — $ 210,786 Intersegment revenue 795 66 (861 ) — Total net sales 195,445 16,202 (861 ) 210,786 Cost of sales 117,284 7,767 (923 ) 124,128 Gross margin 78,160 8,436 62 86,658 Operating income 49,137 949 (b) 62 50,148 Income tax expense 16,427 203 — 16,630 For the Three Months Ended January 31, 2015 (c) Firearms Accessories Intersegment eliminations Total Revenue from external customers $ 124,490 $ 6,060 $ — $ 130,550 Intersegment revenue — — — — Total net sales 124,490 6,060 — 130,550 Cost of sales 81,958 4,768 (d) — 86,726 Gross margin 42,532 1,292 (d) — 43,824 Operating income 17,571 (1,960 ) (e) — 15,611 Income tax expense 5,280 (726 ) — 4,554 Results by business segment are presented in the following tables for the nine months ended January 31, 2016 and 2015 (in thousands): For the Nine Months Ended January 31, 2016 (a) Firearms Accessories Intersegment eliminations Total Revenue from external customers $ 453,961 $ 47,830 $ — $ 501,791 Intersegment revenue 795 709 (1,504 ) — Total net sales 454,756 48,539 (1,504 ) 501,791 Cost of sales 278,147 23,405 (1,504 ) 300,048 Gross margin 177,174 24,569 — 201,743 Operating income 99,104 2,643 (b) — 101,747 Income tax expense 31,110 734 — 31,844 For the Nine Months Ended January 31, 2015 (c) Firearms Accessories Intersegment eliminations Total Revenue from external customers $ 364,805 $ 6,060 $ — $ 370,865 Intersegment revenue — — — — Total net sales 364,805 6,060 — 370,865 Cost of sales 238,315 4,768 (d) — 243,083 Gross margin 126,490 1,292 (d) — 127,782 Operating income 54,018 (1,960 ) (e) — 52,058 Income tax expense 17,252 (726 ) — 16,526 _______________ (a) We allocate all of corporate overhead expenses, such as general and administrative expenses and other corporate-level expenses, to both our firearm and accessories segments. (b) Amount includes $2.6 million and $7.2 million for the three and nine months ended January 31, 2016, respectively, of amortization of intangible assets identified as a result of the BTI Acquisition. ( c ) Results of operations for the three and nine months ended January 31, 2015 include activity for the period subsequent to the BTI Acquisition. Due to the timing of the BTI Acquisition, the segment data above includes all corporate overhead expenses in our firearms segment. ( d ) Amount includes $1.8 million of additional cost of goods sold from the fair value step-up in inventory at the date of the BTI Acquisition. ( e ) Amount includes $1.3 million for the three and nine months ended January 31, 2015, of amortization of intangible assets identified as a result of the BTI Acquisition. |
Organization - Additional Infor
Organization - Additional Information (Detail) | 9 Months Ended |
Jan. 31, 2016 | |
DRP Acquisition | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Business acquisition agreement date | May 5, 2014 |
Battenfeld Acquisition Company Inc | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Business acquisition agreement date | Dec. 11, 2014 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Millions | Apr. 30, 2015USD ($) |
Accounting Policies [Abstract] | |
Decrease in other assets and other long-term liabilities as a result of adopting ASU | $ (4.1) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Feb. 26, 2016 | Jan. 09, 2015 | Dec. 11, 2014 | May. 05, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Apr. 30, 2015 |
Business Acquisition [Line Items] | |||||||
Increase in goodwill | $ 738,000 | ||||||
Goodwill deductible for tax purpose | 12,000,000 | ||||||
DRP Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire business, excluding working capital adjustment | $ 22,800,000 | ||||||
Working capital adjustment | 1,000,000 | ||||||
Payments to acquire business, net of cash acquired | $ 23,800,000 | ||||||
Battenfeld Acquisition Company Inc | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire business, excluding working capital adjustment | $ 130,500,000 | ||||||
Working capital adjustment | 3,100,000 | ||||||
Payments to acquire business, net of cash acquired | $ 136,152,000 | ||||||
Acquisition payment made through line of credit | 100,000,000 | ||||||
B T I Acquisition Excluding Hooyman LLC | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire business, net of cash acquired | $ 133,600,000 | ||||||
Hooyman LLC | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire business, net of cash acquired | $ 1,900,000 | ||||||
BTI Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire business, net of cash acquired | 135,500,000 | ||||||
Increase in goodwill | 738,000 | ||||||
Business combination, acquisition-related costs | $ 0 | $ 1,700,000 | |||||
PowerTech, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire business, net of cash acquired | $ 1,200,000 | ||||||
Business combination consideration payable upon earnout achievement | $ 275,000 |
Acquisitions - Summary of Busin
Acquisitions - Summary of Business Acquisitions Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 | Dec. 11, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 76,164 | $ 75,426 | |
BTI Acquisition | |||
Business Acquisition [Line Items] | |||
Cash | $ 24 | ||
Accounts receivable | 7,876 | ||
Inventories | 12,817 | ||
Income tax receivable | 114 | ||
Other current assets | 563 | ||
Property, plant, and equipment | 2,508 | ||
Intangibles | 72,550 | ||
Goodwill | 62,394 | ||
Total assets acquired | 158,846 | ||
Accounts payable | 1,649 | ||
Accrued expenses | 409 | ||
Accrued payroll | 904 | ||
Accrued taxes other than income | 9 | ||
Deferred income taxes | 20,414 | ||
Total liabilities assumed | 23,385 | ||
Net assets acquired | 135,461 | ||
BTI Acquisition | As Initially Reported | |||
Business Acquisition [Line Items] | |||
Cash | 24 | ||
Accounts receivable | 7,873 | ||
Inventories | 12,819 | ||
Income tax receivable | 393 | ||
Other current assets | 563 | ||
Property, plant, and equipment | 2,826 | ||
Intangibles | 73,550 | ||
Goodwill | 62,142 | ||
Total assets acquired | 160,190 | ||
Accounts payable | 1,647 | ||
Accrued expenses | 326 | ||
Accrued payroll | 904 | ||
Accrued taxes other than income | 9 | ||
Deferred income taxes | 21,128 | ||
Total liabilities assumed | 24,014 | ||
Net assets acquired | 136,176 | ||
BTI Acquisition | Measurement Period Adjustments | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 3 | ||
Inventories | (2) | ||
Income tax receivable | (279) | ||
Property, plant, and equipment | (318) | ||
Intangibles | (1,000) | ||
Goodwill | 252 | ||
Total assets acquired | (1,344) | ||
Accounts payable | 2 | ||
Accrued expenses | 83 | ||
Deferred income taxes | (714) | ||
Total liabilities assumed | (629) | ||
Net assets acquired | $ (715) |
Acquisitions - Identifiable Int
Acquisitions - Identifiable Intangible Assets Acquired and Respective Estimated Lives (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 31, 2016 | Apr. 30, 2015 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 80,385 | $ 81,270 |
Weighted average life | 6 years | |
Developed technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 16,430 | 16,630 |
Weighted average life | 6 years | |
Customer relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 27,860 | $ 28,260 |
Weighted average life | 5 years | |
BTI Acquisition | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 72,550 | |
BTI Acquisition | Developed technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 16,430 | |
Weighted average life | 4 years 3 months 18 days | |
BTI Acquisition | Customer relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 25,280 | |
Weighted average life | 4 years 4 months 24 days | |
BTI Acquisition | Trade names | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 30,740 | |
Weighted average life | 5 years 4 months 24 days | |
BTI Acquisition | Order backlog | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 100 | |
Weighted average life | 3 months 18 days |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Results of Operations (Detail) - BTI Acquisition - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Jan. 31, 2015 | Jan. 31, 2015 | |
Business Acquisition [Line Items] | ||
Net sales | $ 136,573 | $ 401,884 |
Net income | $ 8,620 | $ 26,064 |
Net income per share - diluted | $ 0.16 | $ 0.47 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 9 Months Ended |
Jan. 31, 2016USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 75,426 |
Measurement period adjustments | 738 |
Ending Balance | 76,164 |
Firearms Division | |
Goodwill [Line Items] | |
Beginning Balance | 13,770 |
Ending Balance | 13,770 |
Accessories Division | |
Goodwill [Line Items] | |
Beginning Balance | 61,656 |
Measurement period adjustments | 738 |
Ending Balance | $ 62,394 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | ||||
Jan. 31, 2016 | Apr. 30, 2015 | Jul. 31, 2015 | Jul. 06, 2015 | Jun. 18, 2015 | Jun. 15, 2015 | |
Debt Instrument [Line Items] | ||||||
Credit facility, maturity | Jun. 15, 2020 | |||||
Interest description of revolving line of credit | The Revolving Line provides for availability until June 15, 2020 for general corporate purposes, with borrowings to bear interest at a variable rate equal to LIBOR or prime plus an applicable margin based on our consolidated leverage ratio, at our election. | |||||
Percentage of interest rate protection on term loan | 75.00% | |||||
Fair value of the interest rate swap liability | $ 1,200,000 | |||||
Senior Notes Indenture, number of shares allowed for repurchase | $ 50,000,000 | |||||
Maximum consolidated coverage ratio | 300.00% | |||||
Minimum consolidated coverage ratio | 100.00% | |||||
Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding debt | $ 101,900,000 | $ 105,000,000 | ||||
Principal payments per annum | 6,300,000 | |||||
Debt Issuance Cost | $ 1,000,000 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 3.06% | |||||
5.875% Senior notes due 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding debt | $ 100,000,000 | |||||
Debt instrument, interest rate | 5.875% | |||||
Debt instrument call premium value | $ 2,900,000 | |||||
Unamortized debt-issuance costs | $ 1,700,000 | |||||
5.000% Senior Notes due 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 5.00% | 5.00% | ||||
Debt Issuance Cost | $ 2,300,000 | |||||
Notes issued | $ 75,000,000 | |||||
Debt Instrument Maturity Date | Jul. 15, 2018 | |||||
Senior Notes Indenture, maximum number of shares allowed for repurchase as a percentage of Consolidated net income for previous four consecutive published fiscal quarters | 75.00% | |||||
5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period One | ||||||
Debt Instrument [Line Items] | ||||||
Description of redemption for senior notes | (a) upon not less than 30 nor more than 60 days’ prior notice, redeem all or a portion of the 5.000% Senior Notes at a redemption price of 100% of the principal amount of the 5.000% Senior Notes, plus an applicable premium, plus accrued and unpaid interest as of the redemption date; or (b) redeem up to 35% of the aggregate principal amount of the 5.000% Senior Notes with the net cash proceeds of one or more equity offerings at a redemption price of 105.000% of the principal amount of the 5.000% Senior Notes, plus accrued and unpaid interest as of the redemption date; provided, that in the case of the foregoing clause, at least 65% of the aggregate original principal amount of the 5.000% Senior Notes remains outstanding, and the redemption occurs within 60 days after the closing of the equity offering. | |||||
5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period One | Debt Instrument Redemption Scenario One | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price of senior notes | 100.00% | |||||
Percentage of principal amount that remains outstanding | 65.00% | |||||
5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period One | Debt Instrument Redemption Scenario Two | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price of senior notes | 105.00% | |||||
Percentage of redeem notes | 35.00% | |||||
5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Description of redemption for senior notes | upon not less than 30 nor more than 60 days’ prior notice, redeem all or a portion of the 5.000% Senior Notes at a redemption price of (a) 102.500% of the principal amount of the 5.000% Senior Notes to be redeemed, if redeemed during the 12-month period beginning on July 15, 2016; or (b) 100% of the principal amount of the 5.000% Senior Notes to be redeemed, if redeemed during the 12-month period beginning on July 15, 2017, plus, in either case, accrued and unpaid interest on the 5.000% Senior Notes as of the applicable redemption date | |||||
5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period Two | Debt Instrument Redemption Scenario One | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price of senior notes | 102.50% | |||||
5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period Two | Debt Instrument Redemption Scenario Two | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price of senior notes | 100.00% | |||||
5.000% Senior Notes due 2018 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes Indenture, number of shares allowed for repurchase | $ 50,000,000 | |||||
5.000% Senior Notes due 2018 | Minimum | Debt Instrument, Redemption, Period One | ||||||
Debt Instrument [Line Items] | ||||||
Notice period of senior notes | 30 days | |||||
5.000% Senior Notes due 2018 | Minimum | Debt Instrument, Redemption, Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Notice period of senior notes | 30 days | |||||
5.000% Senior Notes due 2018 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes Indenture, number of shares allowed for repurchase | $ 75,000,000 | |||||
5.000% Senior Notes due 2018 | Maximum | Debt Instrument, Redemption, Period One | ||||||
Debt Instrument [Line Items] | ||||||
Notice period of senior notes | 60 days | |||||
5.000% Senior Notes due 2018 | Maximum | Debt Instrument, Redemption, Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Notice period of senior notes | 60 days | |||||
Unsecured Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, borrowing capacity | $ 175,000,000 | |||||
Credit Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings outstanding | $ 0 | |||||
Outstanding letters of credit | $ 1,000,000 | |||||
Prime Rate Option | Credit Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on borrowings | 3.75% | |||||
LIBOR Rate Option | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on borrowings | 1.925% | |||||
LIBOR Rate Option | Credit Facilities | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on borrowings | 1.93% | |||||
LIBOR Rate Option | Credit Facilities | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on borrowings | 2.12% | |||||
Interest Rate Swap | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of floating rate debt covered | 100.00% | |||||
Derivative, Notional Amount | $ 105,000,000 | |||||
Derivative, Maturity Date | Jun. 15, 2020 | |||||
Derivative, Fixed Interest Rate | 1.56% | |||||
Derivative, Variable Interest Rate Of one-month LIBOR | 0.188% |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Millions | Jan. 31, 2016 | Apr. 30, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of the interest rate swap liability | $ 1.2 | |
5.000% Senior Notes due 2018 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt instrument, interest rate | 5.00% | 5.00% |
(Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 105.2 | $ 42.2 |
(Level 2) | Interest Rate Swap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of the interest rate swap liability | $ 1.2 |
Summary of Inventories (Detail)
Summary of Inventories (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 27,562 | $ 28,240 |
Finished parts | 30,567 | 34,269 |
Work in process | 8,047 | 7,492 |
Raw material | 9,366 | 6,894 |
Total inventories | $ 75,542 | $ 76,895 |
Summary of Intangible Assets (D
Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Gross Carrying Amount | $ 80,385 | $ 81,270 |
Finite lived intangible assets, Accumulated Amortization | (15,738) | (7,950) |
Finite lived intangible assets, Net Carrying Amount | 64,647 | 73,320 |
Intangible assets, Gross Carrying Amount | 80,752 | 81,718 |
Intangible assets, Net Carrying Amount | 65,014 | 73,768 |
Patents in progress | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite lived intangible assets, Net Carrying Amount | 367 | 448 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Gross Carrying Amount | 27,860 | 28,260 |
Finite lived intangible assets, Accumulated Amortization | (5,198) | (1,633) |
Finite lived intangible assets, Net Carrying Amount | 22,662 | 26,627 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Gross Carrying Amount | 16,430 | 16,630 |
Finite lived intangible assets, Accumulated Amortization | (2,369) | (1,014) |
Finite lived intangible assets, Net Carrying Amount | 14,061 | 15,616 |
Patents, trademarks, and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Gross Carrying Amount | 36,095 | 36,380 |
Finite lived intangible assets, Accumulated Amortization | (8,171) | (5,303) |
Finite lived intangible assets, Net Carrying Amount | $ 27,924 | $ 31,077 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted-average period for amortization of intangible assets | 6 years | |||
Amortization expense of intangible assets | $ 2.8 | $ 1.6 | $ 7.9 | $ 4.6 |
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted-average period for amortization of intangible assets | 5 years | |||
Developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted-average period for amortization of intangible assets | 6 years | |||
Patents, trademarks, and trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted-average period for amortization of intangible assets | 5 years |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Future Expected Amortization Expense (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Net Carrying Amount | $ 64,647 | $ 73,320 |
Accessories | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | 2,819 | |
2,017 | 10,501 | |
2,018 | 9,755 | |
2,019 | 8,568 | |
2,020 | 7,420 | |
Thereafter | 25,584 | |
Finite lived intangible assets, Net Carrying Amount | $ 64,647 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 31, 2015USD ($)shares | Jan. 31, 2016USD ($)OptionPlanshares | Jan. 31, 2015USD ($)shares | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Senior Notes Indenture, number of shares allowed for repurchase | $ | $ 50,000,000 | |||||
Repurchase of common stock | 0 | |||||
Number of stock option plans | OptionPlan | 2 | |||||
Intrinsic value of stock outstanding | $ | $ 12,700,000 | $ 19,200,000 | $ 12,700,000 | |||
Intrinsic value of stock exercisable | $ | $ 12,400,000 | 19,200,000 | 12,400,000 | |||
Intrinsic value of stock exercised | $ | 9,100,000 | $ 1,700,000 | ||||
Unrecognized compensation cost of outstanding options | $ | $ 0 | |||||
Shares issued under employee stock purchase plan | 92,249 | 84,081 | ||||
Stock-based compensation expense | $ | $ 4,885,000 | $ 4,249,000 | ||||
Performance period | 3 years | |||||
Percentage of maximum aggregate award granted | 200.00% | |||||
Percentage of stock outperform in order for target award to vest | 5.00% | 10.00% | 10.00% | |||
2013 Incentive Stock Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period of award vested exercisable | 10 years | |||||
Minimum | 2013 Incentive Stock Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period to award vested and calculate volatility rate | 3 years | |||||
Maximum | 2013 Incentive Stock Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period to award vested and calculate volatility rate | 4 years | |||||
2011 ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of common stock issuable with antidilutive effect | 134,866 | 70,978 | ||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock units, awarded | 452,600 | |||||
RSUs | Without Market Conditions | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock units, awarded | 201,242 | |||||
RSUs | Non-Executive Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock units, awarded | 170,826 | |||||
RSUs | Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock units, awarded | 30,416 | 50,500 | ||||
RSUs | Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock units, awarded | 25,000 | |||||
PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock units, awarded | 104,000 | 46,600 | ||||
Share based payment award percentage of award achieved | 173.30% | |||||
PSUs | Without Market Conditions | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock units, awarded | 5,379 | |||||
PSUs | Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock units, vested | 180,231 | 93,200 | ||||
PSUs | Non-Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock units, awarded | 5,379 | |||||
RSUs and PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock units, awarded | 282,852 | 499,200 | ||||
Stock units, vested | 363,285 | 318,171 | ||||
Stock-based compensation expense | $ | $ 4,500,000 | $ 3,700,000 | ||||
Value of shares issued for vested awards | $ | $ 6,300,000 | $ 3,700,000 | ||||
Weighted average remaining contractual term | 1 year 4 months 24 days | |||||
Unrecognized compensation cost related to unvested RSUs and PSUs | $ | $ 5,800,000 |
Reconciliation of Net Income Am
Reconciliation of Net Income Amounts and Weighted Average Number of Common and Common Equivalent Shares Used to Determine Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 31,434 | $ 8,121 | $ 58,311 | $ 27,725 |
Basic earnings, Shares | 54,857 | 53,724 | 54,508 | 54,033 |
Effect of dilutive stock awards, Shares | 1,124 | 1,135 | 1,276 | 1,225 |
Diluted earnings, Shares | 55,981 | 54,859 | 55,784 | 55,258 |
Basic | $ 0.57 | $ 0.15 | $ 1.07 | $ 0.51 |
Effect of dilutive stock awards | (0.01) | (0.02) | (0.01) | |
Diluted earnings | $ 0.56 | $ 0.15 | $ 1.05 | $ 0.50 |
Share Based Compensation Stock
Share Based Compensation Stock Options Activity (Detail) - $ / shares | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Number of shares and weighted average exercise prices | ||
Options outstanding, beginning of year, Shares | 1,879,630 | 2,258,349 |
Exercised during the period, Shares | (707,179) | (222,884) |
Canceled/forfeited during period, Shares | (13,000) | |
Options outstanding, end of period, Shares | 1,172,451 | 2,022,465 |
Weighted average remaining contractual life | 5 years 26 days | 5 years 3 months 11 days |
Options exercisable, end of period, Shares | 1,172,457 | 1,943,800 |
Weighted average remaining contractual life | 5 years 26 days | 5 years 2 months 12 days |
Weighted-Average Exercise Price | ||
Options outstanding, beginning of year, Weighted-Average Exercise Price | $ 6.37 | $ 6.15 |
Exercised during period, Weighted-Average Exercise Price | 8.26 | 4.62 |
Canceled/forfeited during period, Weighted-Average Exercise Price | 7.98 | |
Options outstanding, end of period, Weighted-Average Exercise Price | 5.23 | 6.31 |
Options exercisable, end of period, Weighted-Average Exercise Price | $ 5.23 | $ 6.23 |
Summary of Activity in Unvested
Summary of Activity in Unvested RSUs and PSUs (Detail) - RSUs and PSUs - $ / shares | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Summary of activity in unvested restricted stock units and performance share units | ||
Restricted Stock Units, RSUs and PSUs outstanding, beginning of year | 1,190,879 | 1,015,475 |
Restricted Stock Units, Awarded | 282,852 | 499,200 |
Restricted Stock Units, Vested | (363,285) | (318,171) |
Restricted Stock Units, Forfeited | (82,390) | (96,204) |
Restricted Stock Units, RSUs and PSUs outstanding, end of period | 1,028,056 | 1,100,300 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, beginning of year | $ 12.45 | $ 10.56 |
Weighted Average Grant Date Fair Value, Awarded | 14.44 | 10.51 |
Weighted Average Grant Date Fair Value, Vested | 10.36 | 8.75 |
Weighted Average Grant Date Fair Value, Forfeited | 10.81 | 12.42 |
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, end of period | $ 13.65 | $ 11.87 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Jan. 31, 2016 | Apr. 30, 2015 | May. 05, 2014 | |
Schedule Of Commitments And Contingencies [Line Items] | |||
Environmental reserve in non-current liabilities | $ 675,000 | $ 675,000 | |
Amount placed in escrow | $ 3,000,000 | ||
Escrow deposit, remaining amount | $ 250,000 | ||
General and Administrative Expense | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Insurance recovery as a result of an insurance settlement agreement | 1,800,000 | ||
Minimum | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Compensatory damages sought | 75,000 | ||
Maximum | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Compensatory damages sought | $ 1,500,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 |
Segment Reporting Information [Line Items] | ||
Property, plant, and equipment, net | $ 136,202 | $ 133,844 |
Goodwill | 76,164 | 75,426 |
Total assets | 577,030 | 490,925 |
Firearms Division | ||
Segment Reporting Information [Line Items] | ||
Intangible assets | 3,100 | |
Property, plant, and equipment, net | 133,700 | |
Goodwill | 13,770 | 13,770 |
Total assets | 429,900 | |
Accessories Division | ||
Segment Reporting Information [Line Items] | ||
Intangible assets | 61,900 | |
Property, plant, and equipment, net | 2,500 | |
Goodwill | 62,394 | $ 61,656 |
Total assets | $ 147,200 |
Segment Information - Schedule
Segment Information - Schedule of Results by Business Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Jan. 31, 2016 | Jan. 31, 2015 | [2] | Jan. 31, 2016 | Jan. 31, 2015 | [2] | ||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | $ 210,786 | [1] | $ 130,550 | $ 501,791 | [1] | $ 370,865 | |||
Cost of sales | 124,128 | [1] | 86,726 | 300,048 | [1] | 243,083 | |||
Gross margin | 86,658 | [1] | 43,824 | 201,743 | [1] | 127,782 | |||
Operating income | 50,148 | [1] | 15,611 | 101,747 | [1] | 52,058 | |||
Income tax expense | 16,630 | [1] | 4,554 | 31,844 | [1] | 16,526 | |||
Intersegment eliminations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | [1] | (861) | (1,504) | ||||||
Cost of sales | [1] | (923) | (1,504) | ||||||
Gross margin | [1] | 62 | |||||||
Operating income | [1] | 62 | |||||||
Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | 210,786 | [1] | 130,550 | 501,791 | [1] | 370,865 | |||
Firearms Division | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | 194,650 | [1] | 124,490 | 453,961 | [1] | 364,805 | |||
Firearms Division | Intersegment eliminations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | [1] | 795 | 795 | ||||||
Firearms Division | Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | 195,445 | [1] | 124,490 | 454,756 | [1] | 364,805 | |||
Cost of sales | 117,284 | [1] | 81,958 | 278,147 | [1] | 238,315 | |||
Gross margin | 78,160 | [1] | 42,532 | 177,174 | [1] | 126,490 | |||
Operating income | 49,137 | [1] | 17,571 | 99,104 | [1] | 54,018 | |||
Income tax expense | 16,427 | [1] | 5,280 | 31,110 | [1] | 17,252 | |||
Accessories | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | 16,136 | [1] | 6,060 | 47,830 | [1] | 6,060 | |||
Accessories | Intersegment eliminations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | [1] | (66) | (709) | ||||||
Accessories | Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | 16,202 | [1] | 6,060 | 48,539 | [1] | 6,060 | |||
Cost of sales | 7,767 | [1] | 4,768 | [3] | 23,405 | [1] | 4,768 | [3] | |
Gross margin | 8,436 | [1] | 1,292 | [3] | 24,569 | [1] | 1,292 | [3] | |
Operating income | 949 | [1],[4] | (1,960) | [5] | 2,643 | [1],[4] | (1,960) | [5] | |
Income tax expense | $ 203 | [1] | $ (726) | $ 734 | [1] | $ (726) | |||
[1] | We allocate all of corporate overhead expenses, such as general and administrative expenses and other corporate-level expenses, to both our firearm and accessories segments. | ||||||||
[2] | Results of operations for the three and nine months ended January 31, 2015 include activity for the period subsequent to the BTI Acquisition. Due to the timing of the BTI Acquisition, the segment data above includes all corporate overhead expenses in our firearms segment. | ||||||||
[3] | Amount includes $1.8 million of additional cost of goods sold from the fair value step-up in inventory at the date of the BTI Acquisition. | ||||||||
[4] | Amount includes $2.6 million and $7.2 million for the three and nine months ended January 31, 2016, respectively, of amortization of intangible assets identified as a result of the BTI Acquisition. | ||||||||
[5] | Amount includes $1.3 million for the three and nine months ended January 31, 2015, of amortization of intangible assets identified as a result of the BTI Acquisition. |
Segment Information - Schedul45
Segment Information - Schedule of Results by Business Segment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Amortization of intangible assets | $ 2.8 | $ 1.6 | $ 7.9 | $ 4.6 |
BTI Acquisition | ||||
Segment Reporting Information [Line Items] | ||||
Amortization of intangible assets | $ 2.6 | $ 1.3 | 7.2 | $ 1.3 |
Additional cost of goods sold | $ 1.8 |