Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2020 | Jun. 16, 2020 | Oct. 31, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Apr. 30, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Smith & Wesson Brands, Inc. | ||
Entity Central Index Key | 0001092796 | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity File Number | 1-31552 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 87-0543688 | ||
Entity Address, Address Line One | 2100 Roosevelt Avenue | ||
Entity Address, City or Town | Springfield | ||
Entity Common Stock, Shares Outstanding | 55,520,481 | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01104 | ||
City Area Code | 800 | ||
Local Phone Number | 331-0852 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Public Float | $ 332,064,156 | ||
Title of each Class | Common Stock, Par Value $.001 per Share | ||
Trading Symbol | SWBI | ||
Name of exchange on which registered | NASDAQ | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for the 2020 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 125,398 | $ 41,015 |
Accounts receivable, net of allowance for doubtful accounts of $1,438 on April 30, 2020 and $1,899 on April 30, 2019 | 93,433 | 84,907 |
Inventories | 164,191 | 163,770 |
Prepaid expenses and other current assets | 8,838 | 6,528 |
Deferred income taxes | 2,396 | |
Income tax receivable | 1,595 | 2,464 |
Total current assets | 395,851 | 298,684 |
Property, plant, and equipment, net | 157,417 | 183,268 |
Intangibles, net | 73,754 | 91,840 |
Goodwill | 83,605 | 182,269 |
Other assets | 18,334 | 10,728 |
Assets, Total | 728,961 | 766,789 |
Current liabilities: | ||
Accounts payable | 39,196 | 35,584 |
Accrued expenses and deferred revenue | 64,602 | 39,322 |
Accrued payroll and incentives | 14,623 | 21,473 |
Accrued income taxes | 5,503 | 175 |
Accrued profit sharing | 2,414 | 2,830 |
Accrued warranty | 3,633 | 5,599 |
Current portion of notes and loans payable | 6,300 | |
Total current liabilities | 129,971 | 111,283 |
Deferred income taxes | 9,776 | |
Notes and loans payable, net of current portion | 159,171 | 149,434 |
Finance lease payable, net of current portion | 39,873 | 45,400 |
Other non-current liabilities | 12,828 | 6,452 |
Total liabilities | 341,843 | 322,345 |
Commitments and contingencies (Note 18) | ||
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, 73,526,790 issued and 55,359,928 shares outstanding on April 30, 2020 and 72,863,624 shares issued and 54,696,762 shares outstanding on April 30, 2019 | 74 | 73 |
Additional paid-in capital | 267,630 | 263,180 |
Retained earnings | 341,716 | 402,946 |
Accumulated other comprehensive income | 73 | 620 |
Treasury stock, at cost (18,166,862 shares on April 30, 2020 and April 30, 2019) | (222,375) | (222,375) |
Total stockholders’ equity | 387,118 | 444,444 |
Liabilities and Equity, Total | $ 728,961 | $ 766,789 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 1,438 | $ 1,899 |
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 | 73,526,790 | 72,863,624 |
Common stock, shares outstanding | 55,359,928 | 54,696,762 |
Treasury stock, shares | 18,166,862 | 18,166,862 |
Consolidated Statements of (Los
Consolidated Statements of (Loss)/Income and Comprehensive (Loss)/Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||||
Income Statement [Abstract] | ||||||
Net sales | [1] | $ 678,390 | $ 638,277 | $ 606,850 | ||
Cost of sales | [1] | 443,685 | 412,046 | 411,098 | ||
Gross profit | [1] | 234,705 | 226,231 | 195,752 | ||
Operating expenses: | ||||||
Research and development | 12,362 | 12,866 | 11,361 | |||
Selling, marketing, and distribution | 74,515 | 57,263 | 55,805 | |||
General and administrative | 97,985 | 107,650 | 101,538 | |||
Goodwill impairment | 98,662 | 10,396 | ||||
Total operating expenses | 283,524 | 188,175 | 168,704 | |||
Operating (loss)/income | [1] | (48,819) | 38,056 | 27,048 | ||
Other (expense)/income, net: | ||||||
Other income/(expense), net | 83 | 33 | 1,737 | |||
Interest expense, net | (11,213) | (9,351) | (11,168) | |||
Total other (expense)/income, net | (11,130) | (9,318) | (9,431) | |||
(Loss)/income from operations before income taxes | (59,949) | 28,738 | 17,617 | |||
Income tax expense/(benefit) | [1] | 1,281 | 10,328 | (2,511) | ||
Net (loss)/income | (61,230) | 18,410 | 20,128 | |||
Comprehensive loss/(income): | ||||||
Change in unrealized loss/(income) on interest rate swap | (710) | (1,393) | 1,531 | |||
Other comprehensive loss/(income), before income taxes | (710) | (1,393) | 1,531 | |||
Income tax benefit/(loss) on other comprehensive loss | 163 | 324 | (424) | |||
Other comprehensive loss/(income), net of tax | (547) | (1,069) | 1,107 | |||
Comprehensive (loss)/income: | $ (61,777) | $ 17,341 | $ 21,235 | |||
Net (loss)/income per share: | ||||||
Basic | $ (1.11) | [2] | $ 0.34 | [2] | $ 0.37 | |
Diluted | $ (1.11) | [2] | $ 0.33 | [2] | $ 0.37 | |
Weighted average number of common shares outstanding: | ||||||
Basic | 54,983 | 54,483 | 54,061 | |||
Diluted | 54,983 | 55,216 | 54,834 | |||
[1] | For the years ended April 30, 2020, 2019, and 2018, we allocated all of corporate overhead expenses except for interest and income taxes, | |||||
[2] | Basic and diluted earnings per share may not equal the sum of the quarterly basic and diluted earnings per share due to rounding. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Treasury Stock |
Balance at Apr. 30, 2017 | $ 393,162 | $ 72 | $ 245,865 | $ 369,164 | $ 436 | $ (222,375) |
Balance (in shares) at Apr. 30, 2017 | 72,017,000 | |||||
Treasury stock, shares at Apr. 30, 2017 | 18,167,000 | |||||
Proceeds from exercise of employee stock options | $ 67 | 67 | ||||
Proceeds from exercise of employee stock options (in shares) | 19,000 | 19,000 | ||||
Stock-based compensation | $ 7,815 | 7,815 | ||||
Shares issued under employee stock purchase plan | 2,146 | 2,146 | ||||
Shares issued under employee stock purchase plan (in shares) | 203,000 | |||||
Change in unrealized income (loss) on interest rate swap, net of tax effect | 1,107 | 1,107 | ||||
Reclassification due to U.S. Tax Reform | (146) | 146 | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered | (2,277) | (2,277) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares) | 195,000 | |||||
Net (loss)/income | 20,128 | 20,128 | ||||
Balance at Apr. 30, 2018 | 422,148 | $ 72 | 253,616 | 389,146 | 1,689 | $ (222,375) |
Balance (in shares) at Apr. 30, 2018 | 72,434,000 | |||||
Treasury stock, shares at Apr. 30, 2018 | 18,167,000 | |||||
Proceeds from exercise of employee stock options | $ 304 | 304 | ||||
Proceeds from exercise of employee stock options (in shares) | 48,399 | 48,000 | ||||
Stock-based compensation | $ 7,992 | 7,992 | ||||
Shares issued under employee stock purchase plan | 1,918 | 1,918 | ||||
Shares issued under employee stock purchase plan (in shares) | 231,000 | |||||
Change in unrealized income (loss) on interest rate swap, net of tax effect | (1,069) | (1,069) | ||||
Impact of adoption of accounting standard updates | (4,610) | (4,610) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered | (649) | $ 1 | (650) | |||
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares) | 151,000 | |||||
Net (loss)/income | 18,410 | 18,410 | ||||
Balance at Apr. 30, 2019 | $ 444,444 | $ 73 | 263,180 | 402,946 | 620 | $ (222,375) |
Balance (in shares) at Apr. 30, 2019 | 54,696,762 | 72,864,000 | ||||
Treasury stock, shares at Apr. 30, 2019 | 18,166,862 | 18,167,000 | ||||
Proceeds from exercise of employee stock options | $ 254 | 254 | ||||
Proceeds from exercise of employee stock options (in shares) | 67,094 | 67,000 | ||||
Stock-based compensation | $ 2,921 | 2,921 | ||||
Shares issued under employee stock purchase plan | 1,873 | 1,873 | ||||
Shares issued under employee stock purchase plan (in shares) | 380,000 | |||||
Change in unrealized income (loss) on interest rate swap, net of tax effect | (547) | (547) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered | (597) | $ 1 | (598) | |||
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares) | 216,000 | |||||
Net (loss)/income | (61,230) | (61,230) | ||||
Balance at Apr. 30, 2020 | $ 387,118 | $ 74 | $ 267,630 | $ 341,716 | $ 73 | $ (222,375) |
Balance (in shares) at Apr. 30, 2020 | 55,359,928 | 73,527,000 | ||||
Treasury stock, shares at Apr. 30, 2020 | 18,166,862 | 18,167,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Cash flows from operating activities: | |||
Net (loss)/income | $ (61,230) | $ 18,410 | $ 20,128 |
Adjustments to reconcile net (loss)/income to net cash provided by operating activities: | |||
Depreciation and amortization | 54,058 | 53,859 | 52,075 |
Loss/(gain) on sale/disposition of assets | 991 | (454) | 44 |
Provision for losses on notes and accounts receivable | 104 | 1,060 | 991 |
Impairment of long-lived tangible assets | 976 | 282 | |
Goodwill impairment | 98,662 | 10,396 | |
Deferred income taxes | (12,009) | (2,795) | (8,775) |
Change in fair value of contingent consideration | 100 | (60) | (1,640) |
Stock-based compensation expense | 2,921 | 7,992 | 7,815 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (8,630) | (28,997) | 51,380 |
Inventories | (421) | (10,533) | (16,971) |
Prepaid expenses and other current assets | (2,310) | 359 | 514 |
Income taxes | 6,197 | 1,780 | 5,848 |
Accounts payable | 3,681 | 3,392 | (20,998) |
Accrued payroll and incentives | (6,850) | 10,959 | (10,754) |
Accrued profit sharing | (416) | 1,547 | (11,721) |
Accrued expenses and deferred revenue | 21,908 | (7,193) | (8,424) |
Accrued warranty | (1,966) | (1,224) | 1,915 |
Other assets | 2,719 | (671) | (417) |
Other non-current liabilities | (3,524) | (377) | 351 |
Net cash provided by operating activities | 94,961 | 57,450 | 61,643 |
Cash flows from investing activities: | |||
Acquisition of businesses, net of cash acquired | (1,772) | (23,120) | |
Receipts from note receivable | 786 | 74 | |
Payments to acquire patents and software | (812) | (516) | (560) |
Proceeds from sale of property and equipment | 1,336 | 6 | |
Payments to acquire property and equipment | (13,932) | (33,949) | (18,490) |
Net cash used in investing activities | (13,958) | (34,827) | (42,164) |
Cash flows from financing activities: | |||
Proceeds from loans and notes payable | 228,225 | 50,000 | 150,000 |
Cash paid for debt issuance costs | (875) | (158) | |
Payments on finance lease obligation | (900) | (741) | (646) |
Payments on notes and loans payable | (224,600) | (81,300) | (181,300) |
Proceeds from exercise of options to acquire common stock, including employee stock purchase plan | 2,127 | 2,222 | 2,213 |
Payment of employee withholding tax related to restricted stock units | (597) | (649) | (2,277) |
Net cash provided by/(used in) financing activities | 3,380 | (30,468) | (32,168) |
Net increase/(decrease) in cash and cash equivalents | 84,383 | (7,845) | (12,689) |
Cash and cash equivalents, beginning of period | 41,015 | 48,860 | 61,549 |
Cash and cash equivalents, end of period | 125,398 | 41,015 | 48,860 |
Supplemental disclosure of cash flow information Cash paid for: | |||
Interest | 11,103 | 9,473 | 10,624 |
Income taxes | 6,935 | 10,567 | 1,387 |
Supplemental Disclosure of Non-cash Investing and Financing Activities: | |||
Purchases of property and equipment included in accounts payable | 479 | 565 | 2,406 |
Change in fair value of interest rate swap | 670 | 1,393 | 1,631 |
Contingent consideration | 100 | ||
Purchases of property and equipment funded by capital lease | 24,271 | 21,974 | |
Capital lease obligation | 24,271 | $ 21,974 | |
Changes in note receivable | 1,007 | ||
Adoption of ASU 2016-02: | |||
Change in adoption of accounting standard updates | $ (4,610) | ||
ASU 2016-02 | |||
Adoption of ASU 2016-02: | |||
Changes in other assets for operating lease obligations | 11,821 | ||
Changes in lease liabilities for operating lease obligations | 12,790 | ||
ASU 2016-02 | Change in Property and Equipment | |||
Adoption of ASU 2016-02: | |||
Change in adoption of accounting standard updates | 3,276 | ||
ASU 2016-02 | Changes in Finance Lease Liabilities | |||
Adoption of ASU 2016-02: | |||
Change in adoption of accounting standard updates | $ (4,245) |
Organization
Organization | 12 Months Ended |
Apr. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | 1. Organization We are a leading manufacturer, designer, and provider of consumer products for the shooting, hunting, and rugged outdoor enthusiast. 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 and suppressor markets. We are also a leading provider of shooting, hunting, and rugged outdoor products and accessories, including knives and cutting tools, sighting lasers, shooting supplies, tree saws, and survival gear. We have two reporting segments: (1) Firearms and (2) Outdoor Products & Accessories. In our Firearms segment, we manufacture a wide array of handguns (including revolvers and pistols), long guns (including modern sporting rifles, bolt action rifles, and muzzleloaders), handcuffs, suppressors, and other firearm-related products 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 sell our firearm products under the Smith & Wesson, M&P, Performance Center, Thompson/Center Arms, and Gemtech brands. We manufacture our firearm products at our facilities in Springfield, Massachusetts, Houlton, Maine, and Deep River, Connecticut. We also sell our manufacturing services to other businesses to level-load our factories. We sell those services under our Smith & Wesson and Smith & Wesson Precision Components brands. In our OP&A segment, we are a leading provider of outdoor products and accessories encompassing hunting, fishing, camping, shooting, and personal security and defense products for rugged outdoor enthusiasts. We conceive, design, produce or source, and sell products and accessories, including shooting supplies, rests, vaults, and other related accessories; premium sportsman knives and tools for fishing and hunting; land management tools for hunting preparedness; harvesting products for post-hunt or post-fishing activities; electro-optical devices, including hunting optics, firearm aiming devices, flashlights, and laser grips; reloading, gunsmithing, and firearm cleaning supplies; and survival, camping, and emergency preparedness products. We develop and market our products at our facility in Columbia, Missouri and contract for the manufacture and assembly of most of our products with third parties located in Asia. We also manufacture some of our electro-optics products at our facility in Wilsonville, Oregon. On November 13, 2019, we announced that we were proceeding with a plan to spin-off our outdoor products and accessories business, or the Separation, and create an independent publicly traded company to conduct that business. We believe that separating the our outdoor products and accessories business from our firearm business and forming a new company to conduct the outdoor products and accessories business will enable the management team of each company to focus on its specific strategies, including, among others, (1) structuring its business to take advantage of growth opportunities in its specific markets, (2) tailoring its business operation and financial model to its specific long-term strategies, and (3) aligning its external financial resources, such as stock, access to markets, credit, and insurance factors, with its particular type of business. In our view, the Separation is in the best interests of our company and our stockholders and would create two industry-leading companies with attributes that best position each company for long-term success. In preparation for the Separation, on May 29, 2020, we changed our name to Smith & Wesson Brands, Inc., and on June 1, 2020, we changed the name of the company that will operate our outdoor products and accessories business through its subsidiaries to American Outdoor Brands, Inc., or AOUT. Subject to the satisfaction or waiver of certain conditions, the Separation will be completed by way of a pro rata distribution, or the Distribution, of all the outstanding shares of AOUT common stock to our stockholders of record as of the close of business on the record date of the Distribution. Each of our stockholders will receive shares of AOUT common stock for the shares of our common stock held by such stockholders as of the close of business on the record date, so that our stockholders would own stock of our company as well as 100% of the stock of AOUT and we will retain no ownership interest in that company. We expect to receive an opinion from counsel to the effect that, among other things, the transfer of the assets and legal entities, subject to any related liabilities, associated with the outdoor products and accessories business, to AOUT, will qualify as a transaction that is tax-free for U.S. federal income tax purposes, except to the extent of any cash received in lieu of fractional shares. The Distribution does not require the approval of our stockholders. Our common stock will continue to trade on the Nasdaq Global Select Market under the new ticker symbol “SWBI,” and AOUT has applied to have its shares of common stock listed on the Nasdaq Global Market under the ticker symbol “AOUT.” The Separation is subject to the satisfaction or waiver of certain conditions, and we cannot provide any assurance that we will complete the Separation. |
Acquisitions
Acquisitions | 12 Months Ended |
Apr. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions LaserLyte Acquisition In January 2019, we acquired substantially all of the LaserLyte branded products and other assets from P&L Industries, Inc., for a purchase price of $2.0 million, subject to certain adjustments, utilizing cash on hand. P&L Industries was a provider of laser training and sighting products for the consumer market. The operations of LaserLyte were fully integrated into our facility located in Wilsonville, Oregon and reported in our Outdoor Products & Accessories segment. This acquisition did not have a material impact on our condensed consolidated financial statements for all periods presented. Included in general and administrative costs are $28,000 of acquisition-related costs incurred for the LaserLyte Acquisition during the year ended April 30, 2019. Pro forma results of operations assuming that the LaserLyte Acquisitions had occurred as of May 1, 2017 are not required because of the immaterial impact on our consolidated financial statements for all periods presented. 2018 Acquisitions In August 2017, in two separate transactions, we acquired (1) substantially all of the net assets of Gemtech and (2) Bubba Blade branded products and other assets from Fish Tales, LLC. The aggregate purchase price for the two acquisitions was $23.1 million, subject to certain adjustments, utilizing a combination of cash on hand and borrowings under our revolving line of credit. In connection with the Gemtech acquisition, additional consideration of up to a maximum of $17.1 million may be paid contingent upon the cumulative three year sales volume of Gemtech products. The valuation of this contingent consideration liability was established in accordance with ASC 805 — Business Combinations |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 3. Significant Accounting Policies Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the financial statement dates and the reported amounts of revenue and expenses during the reporting periods. Our significant estimates include the accrual for warranty, reserves for excess and obsolete inventory, rebates and other promotions, and valuation of intangible assets. Actual results could differ from those estimates. Principles of Consolidation — The accompanying consolidated financial statements include the accounts of Smith & Wesson Brands, Inc. and its wholly owned subsidiaries, including Smith & Wesson Inc., Smith & Wesson Sales Company, and SWPC Plastics, LLC, reported in our Firearms segment; AOB Products Company, Crimson Trace Corporation, and AOB Consulting (Shenzhen), Co., LTD., reported in our Outdoor Products & Accessories segment; and SWSS LLC, formerly Smith & Wesson Security Solutions, Inc., or SWSS, our former security services division. 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 April 30, 2020 and 2019 and for the periods presented, have been included. All intercompany accounts and transactions have been eliminated in consolidation. Fair Value of Financial Instruments — Unless otherwise indicated, the fair values of all reported assets and liabilities, which represent financial instruments not held for trading purposes, approximate the carrying values of such amounts because of their short-term nature or market rates of interest. Cash and Cash Equivalents — We consider all highly liquid investments purchased with original maturities of three months or less at the date of acquisition to be cash equivalents. We maintain our cash in bank deposit accounts that, at times, may exceed federally insured limits. We have not experienced any losses in such accounts. As of April 30, 2020, all of our accounts exceeded federally insured limits. Financial Instruments — We account for derivative instruments under Accounting Standards Codification (“ASC”) 815-10, , which establishes accounting and reporting standards for derivative instruments and hedging activities and requires us to recognize these instruments as either assets or liabilities on the balance sheet and measure them at fair value. As of April 30, 2020, we did not have any Level 2 financial instruments within the hierarchy. See Note 7 – for more information regarding our financial instruments. Trade Receivables — We extend credit to our domestic customers and some foreign distributors based on their financial condition. We sometimes offer discounts for early payment on invoices. When we believe the extension of credit is not advisable, we rely on either a prepayment or a letter of credit. We write off balances deemed uncollectible by us against our allowance for doubtful accounts. We estimate our allowance for doubtful accounts through current past due balances, knowledge of our customers’ financial situations, and past payment history. Concentrations of Credit Risk — Financial instruments that potentially subject us to concentration of credit risk consist principally of cash, cash equivalents, and trade receivables. We place our cash and cash equivalents in overnight U.S. government securities. Concentrations of credit risk with respect to trade receivables are limited by the large number of customers comprising our customer base and their geographic and business dispersion. We perform ongoing credit evaluations of our customers’ financial condition and generally do not require collateral. For the year ended April 30, 2020, one of our customers accounted for approximately 10.5% of our net sales but did not exceed 10% of our accounts receivable. Three other customers each had greater than 10% of our accounts receivable and combined for a total of 37.7%. For the fiscal year ended April 30, 2019, none of our customers exceeded 10% of our net sales and one of our customers accounted for approximately 19.8% of our accounts receivable. For the fiscal year ended April 30, 2018, one of our customers accounted for 11.9% of our net sales and none of our customers accounted for 10% or more of our accounts receivable. Inventories — We value inventories at the lower cost, using the first-in, first-out, or FIFO method, or net realizable value. An allowance for potential non-saleable inventory due to excess stock or obsolescence is based upon a detailed review of inventory, past history, and expected future usage. Property, Plant, and Equipment — We record property, plant, and equipment, consisting of land, building, improvements, machinery, equipment, software, hardware, furniture, and fixtures, at cost and depreciate them using the straight-line method over their estimated useful lives. We charge expenditures for maintenance and repairs to earnings as incurred, and we capitalize additions, renewals, and betterments. Upon the retirement or other disposition of property and equipment, we remove the related cost and accumulated depreciation from the respective accounts and include any gain or loss in operations. We lease certain of our real estate, machinery, photocopiers, and vehicles under non-cancelable operating lease agreements, and we recognize expenses under our operating lease assets and liabilities at the commencement date based on the present value of lease payments over the lease term. The depreciable life of assets and leasehold improvements are based on the expected life of the lease. A summary of the estimated useful lives is as follows: Description Useful Life Building and improvements 10 to 40 years Software and hardware 2 to 7 years Machinery and equipment 2 to 10 years We include tooling, dies, and fixtures as part of machinery and equipment and depreciate them over a period generally not exceeding ten years. Intangible Assets — We record intangible assets at cost or based on the fair value of the assets acquired. Intangible assets consist of developed technology, customer relationships, trademarks, trade names, and patents. We amortize intangible assets over their estimated useful lives or in proportion to expected yearly revenue generated from the intangibles that were acquired. Revenue Recognition — We recognize revenue in accordance with the provisions of Accounting Standards Update, or ASU, , which became effective for us on May 1, 2018. Generally, all performance obligations are satisfied and revenue is recognized when the risks and rewards of ownership have transferred to the customer, which is generally upon shipment but could be delayed until the receipt of customer acceptance. In some instances, sales include multiple performance obligations. The most common of these instances relates to sales promotion programs under which customers are entitled to receive free goods based upon their purchase of our products, which we have identified as a material right. The fulfillment of these free goods are our responsibility. In such instances, we allocate the revenue of the promotional sales based on the estimated level of participation in the sales promotional program and the timing of the shipment of all of the products included in the promotional program, including the free goods. We recognize revenue related to the material right proportionally as each performance obligation is satisfied. The net change in contract liabilities for a given period is reported as an increase or decrease to sales. Our product sales are generally sold free on board, or FOB, shipping point and provide payment terms to most commercial customers ranging from 20 to 90 days of product shipment with a discount available to some customers for early payment. Generally, framework contracts define the general terms of sales, including payment terms, freight terms, insurance requirements, and cancelation provisions. Purchase orders define the terms for specific sales, including description, quantity, and price of each product purchased. We estimate variable consideration relative to the amount of cash discounts to which customers are likely to be entitled. In some instances, we provide longer payment terms, particularly as it relates to our hunting dating programs, which represent payment terms due in the fall for certain orders of hunting products received in the spring and summer. As a result of utilizing practical expedience upon the adoption of ASC 606, we do not consider these extended terms to be a significant financing component of the contract because the payment terms are less than one year. In all cases, we consider our costs related to shipping and handling to be a cost of fulfilling the contract with the customer. Segment Information — We have two reporting segments: Firearms, which includes our Firearms and Manufacturing Services divisions; and Outdoor Products & Accessories. See Note 20 – Segment Reporting for more information regarding our segments. Research and Development — We engage in both internal and external research and development, or R&D, in order to remain competitive and to exploit possible untapped market opportunities. We approve prospective R&D projects after analysis of the cost and benefits associated with the potential product. Costs in R&D expense include, among other items, salaries, materials, utilities, and administrative costs. (Loss)/ Earnings per Share Earnings Per Share The following table provides a reconciliation of the net (loss)/income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted (loss)/earnings per common share (in thousands, except per share data): For the Year Ended April 30, 2020 2019 2018 Net Per Share Net Per Share Net Per Share Loss Shares Amount Income Shares Amount Income Shares Amount Basic (loss)/earnings $ (61,230 ) 54,983 $ (1.11 ) $ 18,410 54,483 $ 0.34 $ 20,128 54,061 $ 0.37 Effect of dilutive stock awards — — — — 733 (0.01 ) — 773 — Diluted (loss)/earnings $ (61,230 ) 54,983 $ (1.11 ) $ 18,410 55,216 $ 0.33 $ 20,128 54,834 $ 0.37 All of our outstanding stock options and restricted stock units, or RSUs, were included in the computation of diluted earnings per share for the years ended April 30, 2019 and 2018. Valuation of Long-lived Tangible and Intangible Assets — We evaluate the recoverability of long-lived assets, or asset groups, whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. When such evaluations indicate that the related future undiscounted cash flows are not sufficient to recover the carrying values of the assets, such carrying values are reduced to fair value and this adjusted carrying value becomes the asset’s new cost basis. We determine fair value primarily using future anticipated cash flows that are directly associated with and are expected to arise as a direct result of the use and eventual disposition of the asset, or asset group, discounted using an interest rate commensurate with the risk involved. We have significant long-lived tangible and intangible assets, which are susceptible to valuation adjustments as a result of changes in various factors or conditions. The most significant long-lived tangible and intangible assets, other than goodwill, are property, plant, and equipment, developed technology, customer relationships, patents, trademarks, and trade names. We amortize all finite-lived intangible assets either on a straight-line basis or based upon patterns in which we expect to utilize the economic benefits of such assets. We initially determine the values of intangible assets by a risk-adjusted, discounted cash flow approach. We assess the potential impairment of identifiable intangible assets and fixed assets whenever events or changes in circumstances indicate that the carrying values may not be recoverable and at least annually. Factors we consider important, which could trigger an impairment of such assets, include the following: • significant underperformance relative to historical or projected future operating results; • significant changes in the manner or use of the assets or the strategy for our overall business; • significant negative industry or economic trends; • a significant decline in our stock price for a sustained period; and • a decline in our market capitalization below net book value. Future adverse changes in these or other unforeseeable factors could result in an impairment charge that could materially impact future results of operations and financial position in the reporting period identified. In accordance with ASC 350, Intangibles-Goodwill and Other, we test goodwill for impairment on an annual basis on February 1 and between annual tests if indicators of potential impairment exist. The impairment test compares the fair value of the operating units to their carrying amounts to assess whether impairment is present. We have reviewed the provisions of ASC 350-20, with respect to the criteria necessary to evaluate the number of reporting units that exist. Based on this review, we have two operating units when reviewing ASC 350-20: Firearms and Outdoor Products & Accessories. We estimate the fair value of our Firearms and Outdoor Products & Accessories operating units using an equal weighting of the fair values derived from the income approach and the market approach because we believe a market participant would equally weight both approaches when valuing the operating units. The income approach is based on the projected cash flows that are discounted to their present value using discount rates that consider the timing and risk of the forecasted cash flows. Fair value is estimated using internally developed forecasts and assumptions. The discount rate used is the average estimated value of a market participant’s cost of capital and debt, derived using customary market metrics. Other significant assumptions include revenue growth rates, profitability projections, and terminal value growth rates. The market approach estimates fair values based on the determination of appropriate publicly traded market comparison companies and market multiples of revenue and earnings derived from those companies with similar operating and investment characteristics as the operating unit being valued. Finally, we compare and reconcile our overall fair value to our market capitalization in order to assess the reasonableness of the calculated fair values of our operating units. We recognize an impairment loss for goodwill if the implied fair value of goodwill is less than the carrying value. As of our valuation date, February 1, 2020, our Firearms operating unit had $19.0 million of goodwill and its fair value significantly exceeded its carrying value. Our Outdoor Products & Accessories operating unit had $163.2 million of goodwill and its fair value exceeded its carrying value by approximately 1.5%. On March 23, 2020, we determined that business in our Outdoor Products & Accessories segment was expected to be negatively impacted by several factors related to the COVID-19 pandemic, including a major online retail customer’s decision to halt or delay most non-essential product orders, COVID-19-related supply chain issues, as well as COVID-19-related “stay at home” orders and sporting goods store closures, which reduced retail foot traffic in many states. Given the extreme market volatility, we relied solely on the income approach to derive the current value of the Outdoor Products & Accessories segment. Based on these factors, we expect reduced cash flows in our Outdoor Products & Accessories segment, and we believe this constituted a triggering event under generally accepted accounting principles. Based on the results of this evaluation, we recorded a non-cash impairment charge of $98.7 million of goodwill in our Outdoor Products & Accessories segment. As of April 30, 2020, our Outdoor Products & Accessories operating unit had $64.6 million of goodwill. Income Taxes — We use the asset and liability approach for financial accounting and reporting income taxes. The provision for income taxes is based upon income reported in the accompanying consolidated financial statements as required by ASC 740-10, We determine deferred tax assets and liabilities based on temporary differences between financial reporting and tax bases in assets and liabilities and measure them by applying enacted rates and laws expected to be in place when the deferred items become subject to income tax or deductible for income tax purposes. We recognize the effect on deferred taxes and liabilities of a change in tax rates in the period that includes the enactment date. In assessing the realization of our deferred income tax assets, we consider whether it is more likely than not that the deferred income tax assets will be realized. The ultimate realization of our deferred income tax assets depends upon generating future taxable income during the periods in which our temporary differences become deductible and before our net operating loss carryforwards expire. We evaluate the recoverability of our deferred income tax assets by assessing the need for a valuation allowance on a quarterly basis. If we determine that it is more likely than not that our deferred income tax assets will not be recovered, we establish a valuation allowance against some or all of our deferred income tax assets. Recording or reversing a valuation allowance could have a significant effect on our future results of operations and financial position. Warranty — We generally provide a limited one-year warranty and a lifetime service policy to the original purchaser of our new firearm products. We either provide a limited one year or limited lifetime warranty program to the original purchaser of most of our outdoor products and accessories products and we will repair or replace any of our electro-optics products or parts that are found to be defective under normal use and service with an item of equivalent value, at our option, without charge during the warranty period. We provide for estimated warranty obligations in the period in which we recognize the related revenue. We quantify and record an estimate for warranty-related costs based on our actual historical claims experience and current repair costs. We make adjustments to accruals as warranty claims data and historical experience warrant. Should we experience actual claims and repair costs that are higher than the estimated claims and repair costs used to calculate the provision, our operating results for the period or periods in which such returns or additional costs materialize would be adversely impacted. From time to time, we have experienced certain manufacturing and design issues with respect to some of our firearms and have initiated some product recalls and safety alerts in the past. In November 2011, we initiated a recall of all Thompson/Center Arms Venture rifles manufactured since the products’ introduction in mid-2009. In June 2013, we also initiated a recall of all Thompson/Center Arms bolt action rifles manufactured since the products’ introduction in 2007. In April 2018, we initiated a consumer advisory for certain models of our M&P Shield EZ pistols because in rare circumstances the safety on the pistol will move from the fire position to the “safety on” position when using ammunition that produces a high level of felt recoil. In May 2018, we initiated a recall of certain models of our electro-optics products that incorporated diodes manufactured by a particular third party because the diodes failed to comply with a Food and Drug Administration, or FDA, standard for laser products. We have made efforts to notify all consumers that may be impacted by this recall. The remaining cost of all recalls, safety alerts, and consumer advisories is $683,000, which is recorded in accrued warranty on our consolidated balance sheet. Warranty expense for the fiscal years ended April 30, 2020, 2019, and 2018 amounted to $1.6 million, $2.9 million, and $5.8 million, respectively. The following table sets forth the change in accrued warranties, a portion of which is recorded as a non-current liability, in the fiscal years ended April 30, 2020, 2019, and 2018 (in thousands): Balance as of April 30, 2018 7,513 Warranties issued and adjustments to provisions 2,852 Warranty claims (4,163 ) Balance as of April 30, 2019 6,202 Warranties issued and adjustments to provisions 1,570 Warranty claims (3,536 ) Balance as of April 30, 2020 $ 4,236 Sales and Promotional Related Expenses — We present product sales in our consolidated financial statements, net of customer promotional program costs that depend upon the volume of sales. For promotional program costs that are not dependent on the volume of sales, we record promotional costs in cost of goods sold. The total of all our promotional programs amounted to $47.5 million, $39.2 million, and $58.2 million for the fiscal years ended April 30, 2020, 2019, and 2018, respectively. We have a co-op advertising program at the retail level. We expensed costs amounting to $26.3 million, $23.8 million, and $23.3 million for fiscal 2020, 2019, and 2018, respectively, as selling and marketing expenses. Shipping and Handling — In the accompanying consolidated financial statements, we included amounts billed to customers for shipping and handling in net sales. Beginning in fiscal 2020, inbound freight charges and internal transfer costs are included in cost of goods sold; however, costs incurred to distribute products to customers is included in selling, marketing, and distribution expenses. As a result of this change, we recorded $4.4 million of costs in selling, marketing, and distribution expenses that would have been recorded in cost of sales in the prior fiscal year. Prior to fiscal 2020, in our Firearms segment, we included costs relating to shipping and handling charges, including inbound freight charges, internal transfer costs, and the other costs of our distribution network, in cost of goods sold. Insurance Reserves — In January 2020, we formed a wholly owned captive insurance company, which provides product liability insurance to us and our subsidiaries. This captive insurance company was recorded in our consolidated financial statements for the fiscal year ended April 30, 2020. We are self-insured through retentions or deductibles for the majority of our workers’ compensation, automobile, general liability, product liability, and group health insurance programs. Self-insurance amounts vary up to $10.0 million per occurrence; however, we believe the likelihood of reaching the maximum per occurrence limit is remote. We record our liability for estimated premiums and incurred losses in the accompanying consolidated financial statements on an undiscounted basis. Recently Issued Accounting Standards — In February 2016, the Financial Accounting Standards Board, or FASB, issued ASU 2016-02, Leases (Topic 842), or ASU 2016-02, which amends the existing guidance to require lessees to recognize right-of-use assets and lease liabilities in a classified balance sheet. The most prominent among the changes in the standard is the requirement for lessees to recognize right-of-use assets and lease liabilities for those leases classified as operating leases under current GAAP. The requirements of ASU 2016-02 are effective for financial statements for annual periods beginning after December 15, 2018, and early adoption is permitted. We utilized leasing software to assist us in the accounting and tracking of leases and used the optional transitional method allowed by ASU 2018-11, Leases (Topic 842): Targeted Improvements. Under this method, we applied the standard using the modified retrospective method with an adoption date of May 1, 2019. We elected to use the package of practical expedients, which permits us to not reassess certain lease contract provisions. We adopted ASU 2016-02 effective May 1, 2019 and recognized right-of-use assets of $11.5 million and lease liabilities of $12.8 million. The difference between the right-of-use assets and the lease liabilities of $1.3 million is a result of the reclassification of deferred rent and lease incentive liabilities primarily relating to our real estate operating leases into the right-of use assets, which had no impact to retained earnings. See also Note 4 — Leases, for more information. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses |
Leases
Leases | 12 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Leases | 4. Leases: We lease certain of our real estate, machinery, photocopiers, and vehicles under non-cancelable operating lease agreements. We recognize expenses under our operating lease assets and liabilities at the commencement date based on the present value of lease payments over the lease term. Our leases do not provide an implicit interest rate. We use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Our lease agreements do not require material variable lease payments, residual value guarantees, or restrictive covenants. For operating leases, we recognize expense on a straight-line basis over the lease term. Tenant improvement allowances are recorded as an offsetting adjustment included in our calculation of the respective right-of-use asset. Many of our leases include renewal options that can extend the lease term. The execution of those renewal options is at our sole discretion and are reflected in the lease term when they are reasonably certain to be exercised. The depreciable life of assets and leasehold improvements are limited by the expected lease term. The amounts of assets and liabilities related to our operating and financing leases as of April 30, 2020 were as follows (in thousands): Balance Sheet Caption April 30, 2020 Operating Leases Right-of-use assets $ 10,802 Accumulated amortization (2,232 ) Right-of-use assets, net Other assets $ 8,570 Current liabilities Accrued expenses and deferred revenue $ 2,663 Non-current liabilities Other non-current liabilities 7,488 Total operating lease liabilities $ 10,151 Finance Leases Right-of-use assets $ 40,986 Accumulated depreciation (2,098 ) Right-of-use assets, net Property, plant, and equipment, net $ 38,888 Current liabilities Accrued expenses and deferred revenue 996 Non-current liabilities Finance lease payable, net of current portion 39,873 Total finance lease liabilities $ 40,869 During the fiscal year ended April 30, 2020, we recorded $4.3 million of operating lease costs, of which $1.1 million related to short-term leases, and not recorded as right-of-use assets. We recorded $2.1 million of financing lease amortization, and $2.1 million of financing lease interest expense during fiscal 2020. As of April 30, 2020, our weighted average lease term and weighted average discount rate for our operating leases was 4.0 years and 4.5%, respectively. As of April 30, 2020, our weighted average lease term and weighted average discount rate for our financing leases was 18.5 years and 5.0%, respectively, and consisted primarily of our distribution center located in Columbia, Missouri. The building is pledged to secure the amounts outstanding. The depreciable lives of right-of-use assets are limited by the lease term and are amortized on a straight-line basis over the life of the lease. Future lease payments for all our operating and finance leases for succeeding fiscal years is as follows (in thousands): Operating Financing Total 2021 $ 3,174 $ 3,016 $ 6,190 2022 2,958 3,056 6,014 2023 2,769 3,071 5,840 2024 1,722 3,125 4,847 2025 330 3,180 3,510 Thereafter 679 48,784 49,532 Total future lease payments 11,632 64,232 75,933 Less amounts representing interest (1,481 ) (23,363 ) (24,844 ) Present value of lease payments 10,151 40,869 51,089 Less current maturities of lease liabilities (2,663 ) (996 ) (3,659 ) Long-term maturities of lease liabilities $ 7,488 $ 39,873 $ 47,430 During the fiscal year ended April 30, 2020, the cash paid for amounts included in the measurement of the liabilities and the operating cash flows was $6.0 million |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 12 Months Ended |
Apr. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition and Contracts with Customers | 5. Revenue Recognition and Contracts with Customers: On May 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Segment Reporting. The following table outlines the impact of the adoption of ASU 2014-09 on revenue recognized during the year ended April 30, 2019 (in thousands): 2020 2019 Outstanding performance obligations at beginning of period $ 12,213 $ 23,305 Revenue recognized (48,576 ) (51,213 ) Revenue deferred 50,406 40,121 Outstanding performance obligations at end of period $ 14,043 $ 12,213 During fiscal 2020, we recognized $48.6 million of deferred revenue, of which $10.5 million was previously deferred as of April 30, 2019, as the performance obligations relating to sales promotions were satisfied. This recognition of revenue was partially offset by $50.4 million of additional deferred revenue for outstanding performance obligations incurred during fiscal 2020. This resulted in a $1.8 million net decrease in revenue recognized during fiscal 2020. We estimate that the majority of the revenue from the outstanding performance obligations as of April 30, 2020 will be recognized during our first quarter of fiscal 2021. During fiscal 2019, we recognized $22.2 million of revenue previously deferred as of May 1, 2018 as the performance obligations relating to sales promotions were satisfied. In addition, we deferred $11.1 million during fiscal 2019, net of revenue recognized, as the performance obligations related to sales promotions were not satisfied, resulting in an outstanding performance obligation liability of $12.2 million that is recorded in accrued expenses in the consolidated balance sheet. During fiscal 2019, we recognized an $11.1 million net increase of revenue relating to the adoption of ASU 2014-09. As a result of the adoption of ASU 2014-09, for the year ended April 30, 2019, gross margin was unfavorably impacted by 400 basis points and earnings per share was increased by $0.03. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Apr. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets The changes in the carrying amount of goodwill by reporting segment are as follows (in thousands): Outdoor Products & Firearm Segment Accessories Segment Total Goodwill Balance as of April 30, 2018 $ 18,490 $ 172,797 $ 191,287 Adjustments 534 — 534 Acquisitions — 844 844 Goodwill impairment — (10,396 ) (10,396 ) Balance as of April 30, 2019 19,024 163,245 182,269 Adjustments — (2 ) (2 ) Goodwill impairment — (98,662 ) (98,662 ) Balance as of April 30, 2020 $ 19,024 $ 64,581 $ 83,605 For more information regarding goodwill impairment testing, see Note 3 — Significant Accounting Policies — Valuation of Long-lived Tangible and Intangible Assets As of April 30, 2020, the goodwill recorded within our Outdoor Products & Accessories segment is presented net of $109.1 million of accumulated impairment losses, all of which was recorded during fiscal 2020 and 2019. The goodwill within our Firearms segment has no accumulated impairment losses. The following table presents a summary of intangible assets as of April 30, 2020 and 2019 (in thousands): April 30, 2020 April 30, 2019 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 92,560 $ (52,981 ) $ 39,579 $ 92,560 $ (41,643 ) $ 50,917 Developed technology 21,788 (12,705 ) 9,083 21,230 (10,428 ) 10,802 Patents, trademarks, and trade names 57,837 (34,320 ) 23,517 57,477 (28,479 ) 28,998 Backlog 1,150 (1,150 ) — 1,150 (1,150 ) — 173,335 (101,156 ) 72,179 172,417 (81,700 ) 90,717 Patents in progress 1,145 — 1,145 897 — 897 Total definite-lived intangible assets 174,480 (101,156 ) 73,324 173,314 (81,700 ) 91,614 Indefinite-lived intangible assets 430 — 430 226 — 226 Total intangible assets $ 174,910 $ (101,156 ) $ 73,754 $ 173,540 $ (81,700 ) $ 91,840 We amortize intangible assets with determinable lives over a weighted-average period of approximately five 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 $19.5 million, $22.0 million, and $21.0 million for the fiscal years ended April 30, 2020, 2019, and 2018, respectively. The following table represents future expected amortization expense as of April 30, 2020, which will primarily be recorded in our Outdoor Products & Accessories segment (in thousands): Fiscal Amount 2021 $ 16,798 2022 14,412 2023 11,857 2024 10,109 2025 6,456 Thereafter 12,547 Total $ 72,179 |
Notes and Loans Payable and Fin
Notes and Loans Payable and Financing Arrangements | 12 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
Notes and Loans Payable and Financing Arrangements | 7. Notes and Loans Payable and Financing Arrangements Credit Facilities – On June 15, 2015, we and certain of our domestic subsidiaries entered into an 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. The Term Loan was paid in full on November 19, 2019 with proceeds from the Revolving Line. The Revolving Line provides for availability 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. On October 27, 2016, we entered into a second amendment to our Credit Agreement, or the Second Amendment, which, among other things, increased the Revolving Line to $350.0 million, increased the option to expand the credit commitment to an additional $150.0 million, and extended the maturity of the Revolving Line from June 15, 2020 to October 27, 2021. On November 22, 2019, we entered into a fifth amendment to our Credit Agreement, or the Fifth Amendment, which, among other things, provides the Lenders’ consent to the spin-off of our outdoor products and accessories business, provided that certain financial conditions are satisfied, including (x) granting the Lenders security interest in the assets of the remaining business, (y) reducing the Revolving Line to $250.0 million at the time of the spin-off, and (z) reducing the option to expand the credit agreement to $50.0 million at the time of the spin-off. Other than the changes described in the Second and Fifth Amendments, we otherwise remain subject to the terms of the Credit Agreement, as described below. We incurred $ 875,000 of debt issuance costs related to the Fifth Amendment. As of April 30, 2020, we had $160.0 million of borrowings outstanding under the Revolving Line, which bore interest at 2.95%, which is equal to the LIBOR rate plus an applicable margin based on our consolidated leverage ratio. We were required to obtain 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 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 required us to pay interest at a defined rate of 1.56% while receiving interest at a defined variable rate equal to the one-month LIBOR rate. This swap, when combined with the applicable margin based on our consolidated leverage ratio, effectively fixed our interest rate on the Term Loan, which was subject to change based on changes in our consolidated leverage ratio. In accordance with the repayment of the Term Loan on November 19, 2019, the interest rate swap was terminated resulting in a realized gain of approximately $40,000. 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 April 30, 2019, the interest rate swap was considered effective and had no effect on earnings. The fair value of the interest rate swap on April 30, 2019 and 2018 was an asset of $710,000 and $2.1 million, respectively, and was recorded in other assets on our consolidated balance sheet. 2018 Senior Notes – During fiscal 2015, we issued an aggregate of $75.0 million of 5.000% Senior Notes due 2018, or the 2018 Senior Notes, to various institutional investors pursuant to the terms and conditions of an indenture and purchase agreements. The 2018 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 2018 Senior Notes. As discussed below, the 2018 Senior Notes were redeemed on March 8, 2018 with proceeds from the issuance of 5.000% Senior Notes due 2020. As part of the redemption, in fiscal 2018, we wrote off $226,000 of debt issuance costs related to the 2018 Senior Notes. 2020 Senior Notes – On February 28, 2018, we issued an aggregate of $75.0 million of 5.000% Senior Notes due 2020, or the 2020 Senior Notes, to various institutional investors pursuant to the terms and conditions of an indenture, or the 2020 Senior Notes Indenture, and purchase agreements. The 2020 Senior Notes bore interest at a rate of 5.000% per annum payable on February 28 and August 28 of each year, beginning on August 28, 2018. We incurred $158,000 of debt issuance costs related to the issuance of the 2020 Senior Notes. On January 6, 2020, or the Redemption Date, we redeemed 100% of the principal amount of the 2020 Senior Notes, plus accrued and unpaid interest to, but not including, the Redemption Date, with proceeds from the Revolving Line. As part of the redemption, we wrote off $42,000 of debt issuance costs related to the 2020 Senior Notes. Debt Issuance Costs — We recorded, in notes payable, $875,000 of debt issuance costs for the fiscal year ended April 30, 2020. We did not record any debt issuance costs during the fiscal year ended April 30, 2019. We recorded, in notes payable, $158,000 of debt issuance costs for the fiscal years ended April 30, 2018. These costs are being amortized to expense over the life of the credit facility. In total, we amortized $687,000, $431,000, and $1.1 million to interest expense for all debt issuance costs in fiscal 2020, 2019, and 2018, respectively, including write-offs related to extinguishment. The Credit Agreement for our credit facility contains financial covenants relating to maintaining maximum leverage and minimum debt service coverage. Letters of Credit — At April 30, 2020, we had outstanding letters of credit aggregating $2.2 million, which included a $1.5 million letter of credit to collateralize our newly created captive insurance company. |
Net Sales
Net Sales | 12 Months Ended |
Apr. 30, 2020 | |
Disclosure Net Sales [Abstract] | |
Net Sales | 8. Net Sales The following table sets forth the breakdown of net sales for the fiscal years ended April 30, 2020, 2019, and 2018 (in thousands): For the Years Ended April 30, 2020 2019 2018 Handguns $ 390,712 $ 336,901 $ 326,290 Long Guns 101,540 107,717 90,222 Other Products & Services 33,775 33,859 32,474 Firearms Segment 526,027 478,477 448,986 Outdoor Products & Accessories Segment 152,363 159,800 157,864 Total Net Sales $ 678,390 $ 638,277 $ 606,850 We sell our products and services in our Firearms segment under our Smith & Wesson, M&P, Performance Center, Gemtech, Thompson/Center Arms, and Smith & Wesson Precision Components brands. Depending upon the product or service, our firearm customers primarily include distributors; federal, state, and municipal law enforcement agencies and officers; government and military agencies; businesses; and retailers. We sell our outdoor products & accessories products under our Caldwell, Wheeler, Tipton, Frankford Arsenal, Hooyman, BOG, MEAT!, Uncle Henry, Old Timer, Imperial, Crimson Trace, LaserLyte, Lockdown, UST, BUBBA, and Schrade, and we license from our Firearms segment for use in association with certain products that we sell, including M&P, Smith & Wesson, Performance Center by Smith & Wesson, and Thompson/Center Arms. We sell our products worldwide. The following table sets forth the breakdown of export net sales included in the above table. Our export net sales accounted for 4%, 5%, and 5% of total net sales for the fiscal years ended April 30, 2020, 2019, and 2018, respectively (in thousands): For the Years Ended April 30, Region 2020 2019 2018 Europe $ 8,443 $ 11,860 $ 9,586 Asia 6,247 3,866 4,725 Latin America 2,411 3,268 2,038 All others international 9,086 14,030 12,388 Total international net sales (a) $ 26,187 $ 33,024 $ 28,737 (a) Our international sales were negatively impacted in our fourth fiscal quarter as a result of COVID-19 pandemic. Our Firearm and Outdoor Products & Accessories segments own tooling that is located at various suppliers in Asia and North America. |
Advertising Costs
Advertising Costs | 12 Months Ended |
Apr. 30, 2020 | |
Marketing And Advertising Expense [Abstract] | |
Advertising Costs | 9. Advertising Costs We expense advertising costs, primarily consisting of magazine advertisements, printed materials, and television advertisements, either as incurred or upon the first occurrence of the advertising. Advertising expense, included in selling and marketing expenses for the fiscal years ended April 30, 2020, 2019, and 2018, amounted to $28.1 million, $24.3 million, and $25.8 million, respectively. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Apr. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant, and Equipment | 10. Property, Plant, and Equipment The following table summarizes property, plant, and equipment as of April 30, 2020 and 2019 (in thousands): April 30, 2020 April 30, 2019 Machinery and equipment $ 279,005 $ 270,815 Software and hardware 50,671 47,587 Building and improvements 36,186 34,584 Land and improvements 3,787 3,787 Right of use assets 40,986 46246 410,635 403,019 Less: Accumulated depreciation and amortization (260,475 ) (228,306 ) 150,160 174,713 Construction in progress 7,257 8,555 Total property, plant, and equipment, net $ 157,417 $ 183,268 Depreciation of tangible assets and amortization of software expense amounted to $33.9 million, $31.4 million, and $30.0 million for the fiscal years ended April 30, 2020, 2019, and 2018, respectively. The following table summarizes depreciation and amortization expense, which includes amortization of intangibles and debt financing costs, by line item for the fiscal years ended April 30, 2020, 2019, and 2018 (in thousands): For the Years Ended April 30, 2020 2019 2018 Cost of sales $ 24,217 $ 23,797 $ 24,582 Research and development 659 625 557 Selling and marketing 456 530 619 General and administrative (a) 28,039 28,476 25,212 Interest expense 687 431 1,105 Total depreciation and amortization $ 54,058 $ 53,859 $ 52,075 (a) General and administrative expenses included $19.0 million, $21.8 million, and $20.8 million of amortization for the fiscal years ended April 30, 2020, 2019, and 2018, respectively, which were recorded as a result of our acquisitions. |
Inventories
Inventories | 12 Months Ended |
Apr. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 11. Inventories The following table sets forth a summary of inventories, net of reserves, stated at lower of cost or market, as of April 30, 2020 and 2019 (in thousands): April 30, 2020 April 30, 2019 Finished goods $ 111,169 $ 108,247 Finished parts 32,721 36,181 Work in process 7,037 7,576 Raw material 13,264 11,766 Total inventories $ 164,191 $ 163,770 |
Accrued Expenses and Deferred R
Accrued Expenses and Deferred Revenue | 12 Months Ended |
Apr. 30, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Deferred Revenue | 12. Accrued Expenses and Deferred Revenue The following table sets forth other accrued expenses as of April 30, 2020 and 2019 (in thousands): April 30, 2020 April 30, 2019 Accrued taxes other than income $ 21,461 $ 6,078 Deferred revenue 14,744 12,213 Accrued rebates and promotions 5,189 4,877 Accrued employee benefits 4,705 5,241 Accrued professional fees 4,058 2,649 Right-of-use lease liabilities 2,663 — Accrued distributor incentives 2,253 1,895 Accrued commissions 967 1,004 Interest payable 349 737 Current portion of capital lease obligation 996 681 Accrued other 7,217 3,947 Total accrued expenses and deferred revenue $ 64,602 $ 39,322 (a) Increase in accrued taxes other than income is due to the deferral of federal excise tax payments allowed by the Tax and Trade Bureau as a result of the COVID-19 pandemic . |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 13. 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 and cash equivalents, which are measured at fair value on a recurring basis, totaled $125.4 million and $41.0 million as of April 30, 2020 and 2019, 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 which 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). 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 2 or Level 3 financial assets or liabilities. |
Self-Insurance Reserves
Self-Insurance Reserves | 12 Months Ended |
Apr. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Self-Insurance Reserves | 14. Self-Insurance Reserves As of April 30, 2020 and 2019, we had reserves for workers’ compensation, product liability, municipal liability, and medical/dental costs totaling $9.4 million and $8.9 million, respectively, of which $4.6 million and $4.8 million was classified as other non-current liabilities, respectively. As of April 30, 2020 and 2019, $3.7 million and $3.6 million, respectively, were included in accrued expenses on the accompanying consolidated balance sheets. In addition, as of April 30, 2020 and 2019, 620,000 of workers’ compensation recoverable was classified as other assets. While we believe these reserves to be adequate, it is possible that the ultimate liabilities will exceed such estimates. The following table summarizes the activity in the workers’ compensation, product liability, municipal liability, and medical/dental reserves in the fiscal years ended April 30, 2020, 2019, and 2018 (in thousands): For the Year Ended April 30, 2020 2019 2018 Beginning balance $ 8,859 $ 9,173 $ 8,663 Additional provision charged to expense 21,317 21,602 22,802 Payments (20,763 ) (21,916 ) (22,292 ) Ending balance $ 9,413 $ 8,859 $ 9,173 It is our policy to provide an estimate for loss as a result of expected adverse findings or legal settlements on product liability, municipal liability, workers’ compensation, and other matters when such losses are probable and are reasonably estimable. It is also our policy to accrue for reasonable estimable legal costs associated with defending such litigation. While such estimates involve a range of possible costs, we determine, in consultation with counsel, the most likely cost within such range on a case-by-case basis. We also record receivables from insurance carriers relating to these matters when their collection is probable. As of April 30, 2020 and 2019, we had accrued reserves for product and municipal litigation liabilities of $3.6 million and $3.3 million, respectively (of which $2.6 million and $2.8 million was non-current, respectively), consisting entirely of expected legal defense costs. In addition, as of April 30, 2020 and 2019, we had recorded receivables from insurance carriers related to these liabilities of $1.9 million, nearly all of which has been classified as other assets. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 15. Stockholders’ Equity Treasury Stock We did not repurchase any shares of our common stock during fiscal 2020, 2019, or 2018, and we do not have an authorized repurchase program as of April 30, 2020. Incentive Stock and Employee Stock Purchase Plans We have two stock incentive plans, or SPs: 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. The 2013 Incentive Stock Plan authorizes the issuance of 3,000,000 shares, plus any shares that were reserved and remained available for grant and delivery under the 2004 Incentive Stock Plan as of September 23, 2013, the effective date of the 2013 Incentive Stock Plan. The plan permits the grant of options to acquire common stock, restricted stock awards, RSUs, stock appreciation rights, bonus stock and awards in lieu of obligations, performance awards, and dividend equivalents. Our board of directors, or a committee established by our board, administers the SPs, selects recipients to whom awards are granted, and determines the grants to be awarded. Options granted under the SPs are exercisable at a price determined by our board or committee at the time of grant, but in no event, less than fair market value of our common stock on the date granted. Grants of options may be made to employees and directors without regard to any performance measures. All options issued pursuant to the SPs are generally nontransferable and subject to forfeiture. Unless terminated earlier by our board of directors, the 2013 Incentive Stock Plan will terminate at the earliest of (1) the tenth anniversary of the effective date of the 2013 Stock Plan, or (2) such time as no shares of common stock remain available for issuance under the plan and we have no further rights or obligations with respect to outstanding awards under the plan. The date of grant of an award is deemed to be the date upon which our board of directors or board committee authorizes the granting of such award. Except in specific circumstances, grants vest over a period of four years and grants of stock options are exercisable for a period of 10 years. The plan also permits the grant of awards to non-employees, which our board of directors or committee has authorized in the past. The number of shares and weighted average exercise prices of options for the fiscal years ended April 30, 2020, 2019, and 2018 are as follows: For the Year Ended April 30, 2020 2019 2018 Weighted Weighted Weighted Average Average Average Shares Exercise Price Shares Exercise Price Shares Exercise Price Options outstanding, beginning of year 267,761 $ 6.76 316,160 $ 6.69 335,160 $ 6.58 Exercised during the period (67,094 ) 3.97 (48,399 ) 6.28 (19,000 ) 4.70 Options outstanding, end of period 200,667 $ 7.70 267,761 $ 6.76 316,160 $ 6.69 Weighted average remaining contractual life 0.43 years 2.35 years 3.16 years Options exercisable, end of period 200,667 $ 7.70 267,761 $ 6.76 316,160 $ 6.69 Weighted average remaining contractual life 0.43 years 2.35 years 3.16 years As of April 30, 2020, there were 4,137,967 shares available for grant under the 2013 Incentive Stock Plan. We use our unissued share pool for all shares issued for options, restricted stock awards, RSUs, performance share units, performance-based restricted stock units, or PSUs, and shares issued under our Employee Stock Purchase Plan, or ESPP. The aggregate intrinsic value of outstanding and exercisable stock options as of April 30, 2020, 2019, and 2018 was $356,000, $826,000, and $1.4 million, respectively. The aggregate intrinsic value of the options exercised for the years ended April 30, 2020, 2019, and 2018 was $260,000, $285,000, and $116,000, respectively. At April 30, 2020, there was no unrecognized compensation cost of outstanding options. The following table summarizes stock compensation expense by line item for the fiscal years ended April 30, 20 20 , 20 19 , and 20 18 (in thousands): For the Years Ended April 30, 2020 2019 2018 Cost of sales $ 704 $ 746 $ 882 Research and development 121 99 187 Selling and marketing 340 489 382 General and administrative 1,756 (a) 6,658 6,364 Total stock-based compensation $ 2,921 $ 7,992 $ 7,815 (a) The decrease in general and administrative stock-based compensation expense from fiscal 2019 was because of the separation of our former President and Chief Executive Officer. 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. The aggregate fair value of our RSU grants is amortized to compensation expense over the applicable vesting period. We grant PSUs to our executive officers and certain management employees who are not executive officers. At the time of grant, we calculate the fair value of our PSUs using the Monte-Carlo simulation. We incorporate the following variables into the valuation model: For the Years Ended April 30, 2020 2019 2018 Grant date fair market value Smith & Wesson Brands, Inc. $ 7.80 $ 9.85 $ 11.11 Russell 2000 Index $ 1,138.78 $ 1,591.21 $ 1,557.89 Volatility (a) Smith & Wesson Brands, Inc. 54.02 % 45.19 % 42.27 % Russell 2000 Index 24.65 % 15.65 % 16.26 % Correlation coefficient (b) 0.11 0.14 0.19 Risk-free interest rate (c) 0.35 % 2.23 % 2.61 % Dividend yield (d) 0 % 0 % 0 % (a) Expected volatility is calculated over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years. (b) The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions. (c) The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year (d) We did not pay dividends in fiscal 2020, 2019, and 2018. The PSUs vest, and the fair value of such PSUs will be recognized, over the corresponding three-year In certain circumstances, 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 fiscal year ended April 30, 2020, we granted 105,767 PSUs to certain of our executive officers and 32,050 PSUs to non-executive officer employees. We also granted 440,483 service-based RSUs during the year ended April 30, 2020, including 113,770 RSUs to certain of our executive officers, 115,600 RSUs to our directors, and 211,073 RSUs to non-executive officer employees. Compensation expense recognized related to grants of RSUs and PSUs was $2.3 million for the fiscal year ended April 30, 2020. During the fiscal year ended April 30, 2020, we canceled 232,793 service-based RSUs as a result of the service period condition not being met and 367,025 PSUs as the three year stock performance targets were not achieved. We delivered 296,139 shares of common stock to current employees under vested RSUs with a total market value of $2.6 million. During the fiscal year ended April 30, 2019, we granted 181,600 PSUs to certain of our executive officers. We also granted 360,185 service-based RSUs during the year ended April 30, 2019, including 167,818 RSUs to certain of our executive officers, 49,509 RSUs to our directors, and 142,858 RSUs to non-executive officer employees. Compensation expense recognized related to grants of RSUs and PSUs was $7.3 million for the fiscal year ended April 30, 2019. During the fiscal year ended April 30, 2019, we canceled 33,899 service-based RSUs as a result of the service period condition not being met and 112,000 PSUs as the three year stock performance targets were not achieved. We delivered 206,572 shares of common stock to current employees under vested RSUs with a total market value of $2.5 million. During the year ended April 30, 2018, we granted 157,700 PSUs to certain of our executive officers. We also granted 388,186 service-based RSUs during the year ended April 30, 2018, including 159,167 RSUs to certain of our executive officers, 52,826 RSUs to our directors, and 176,193 RSUs to non-executive officer employees. In addition, in connection with a 2014 grant of 105,000 PSUs (i.e., the target amount granted), which achieved 115.2% of the targeted award, we vested and delivered awards totaling 121,504 shares to certain of our executive officers. Compensation expense recognized related to grants of RSUs and PSUs was $7.1 million for the fiscal year ended April 30, 2018. During the fiscal year ended April 30, 2018, we canceled 208,496 service-based RSUs and 39,429 PSUs as a result of the service period condition not being met and delivered 300,496 shares of common stock to current employees under vested RSUs and PSUs with a total market value of $6.2 million. The grant date fair value of RSUs and PSUs that vested in fiscal 2020, 2019, and 2018 was $5.0 million, $3.9 million, and $5.0 million, respectively. A summary of activity for unvested RSUs and PSUs for fiscal years 2020, 2019, and 2018 is as follows: For the Year Ended April 30, 2020 2019 2018 Weighted Weighted Weighted Total # of Average Total # of Average Total # of Average Restricted Grant Date Restricted Grant Date Restricted Grant Stock Units Fair Value Stock Units Fair Value Stock Units Fair Value RSUs and PSUs outstanding, beginning of period 1,631,631 $ 15.44 1,442,317 $ 17.80 1,428,848 $ 18.58 Awarded 578,300 5.75 541,785 10.65 561,890 15.09 Vested (296,139 ) 17.05 (206,572 ) 19.11 (300,496 ) 16.53 Forfeited (599,818 ) 15.34 (145,899 ) 16.11 (247,925 ) 17.04 RSUs and PSUs outstanding, end of period 1,313,974 $ 10.86 1,631,631 $ 15.44 1,442,317 $ 17.80 As of April 30, 2020, there was $3.3 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 1.7 years. On September 26, 2011, our stockholders approved our 2011 ESPP, which authorizes the sale of up to 6,000,000 shares of our common stock to employees. All options and rights to participate in our ESPP are nontransferable and subject to forfeiture in accordance with our ESPP guidelines. Our current ESPP will be implemented in a series of successive offering periods, each with a maximum duration of 12 months. If the fair market value, or FMV, per share of our common stock on any purchase date is less than the FMV per share on the start date of a 12-month offering period, then that offering period will automatically terminate, and a new 12-month offering period will begin on the next business day. Each offering period will begin on April 1 or October 1, as applicable, immediately following the end of the previous offering period. Payroll deductions will be on an after-tax basis, in an amount of not less than 1% and not more than 20% (or such greater percentage as the committee appointed to administer our ESPP may establish from time to time before the first day of an offering period) of a participant’s compensation on each payroll date. The option exercise price per share will equal 85% of the lower of the FMV on the first day of the offering period or the FMV on the exercise date. The maximum number of shares that a participant may purchase during any purchase period is 12,500 shares, or a total of $25,000 in shares, based on the FMV on the first day of the offering period. Our ESPP will remain in effect until the earliest of (a) the exercise date that participants become entitled to purchase a number of shares greater than the number of reserved shares available for purchase under our ESPP, (b) such date as is determined by our board of directors in its discretion, or (c) March 31, 2022. 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. During fiscal 2020, 2019, and 2018, 380,209, 230,282, and 203,002 shares, respectively, were purchased by our employees under our ESPP. 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 were 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. The following assumptions were used in valuing our ESPP purchases during the years ended April 30, 2020, 2019, and 2018: For the Years Ended April 30, 2020 2019 2018 Risk-free interest rate 1.24 % 2.21 % 1.62 % Expected term (a) 4 months 6 months 6 months Expected volatility (b) 63.6 % 45.3 % 42.3 % Dividend yield 0 % 0 % 0 % (a) We expect to have an abbreviated purchase period for the first half of fiscal 2021 because of our expected spin-off of our outdoor products and accessories business. (b) We believe our expected volatility increased in fiscal 2020 primarily due to market and stock price fluctuations as a result of the COVID-19 pandemic. 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, as noted in the above table). The total stock-based compensation expense, including stock options, purchases under our ESPP, and RSU and PSU awards, was $2.9 million, $8.0 million, and $7.8 million, for fiscal years 2020, 2019, and 2018, respectively. |
Employer Sponsored Benefit Plan
Employer Sponsored Benefit Plans | 12 Months Ended |
Apr. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employer Sponsored Benefit Plans | 16. Employer Sponsored Benefit Plans Contributory Defined Investment Plan — We offer two contributory defined investment plans covering substantially all employees, subject to service requirements. Employees may contribute up to 100% of their annual pay, depending on the plan. We generally make discretionary matching contributions of up to 50% of the first 6% of employee contributions to the plan. We contributed $2.5 million, $2.9 million, and $3.0 million for the fiscal years ended April 30, 2020, 2019, and 2018, respectively. Non-Contributory Profit Sharing Plan — We have a non-contributory profit sharing plan covering substantially all of our employees. Employees become eligible on May 1 following the completion of a full fiscal year of continuous service. Our contributions to the plan are discretionary. For fiscal 2020, we plan to contribute approximately $2.4 million, which has been recorded in general and administrative costs. We contributed $2.8 million and $1.3 million for the fiscal years ended April 30, 2019 and 2018, respectively. Contributions are funded after the fiscal year-end. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. Income Taxes Income tax expense/(benefit) from continuing operations consists of the following (in thousands): For the Year Ended April 30, 2020 2019 2018 Current: Federal $ 11,690 $ 8,999 $ 5,081 State 1,596 2,600 1,184 Foreign 4 5 — Total current 13,290 11,604 6,265 Deferred: Deferred federal (10,877 ) (879 ) (9,081 ) Deferred state (1,132 ) (397 ) 305 Total deferred (12,009 ) (1,276 ) (8,776 ) Total income tax expense/(benefit) $ 1,281 $ 10,328 $ (2,511 ) The following table presents a reconciliation of the provision for income taxes from continuing operations at statutory rates to the provision (benefit) in the consolidated financial statements (in thousands): For the Year Ended April 30, 2020 2019 2018 Federal income taxes expected at the statutory rate (a) $ (12,589 ) $ 6,035 $ 5,355 State income taxes, less federal income tax benefit 325 1,804 1,460 Stock compensation 1,163 708 (322 ) Business meals and entertainment 275 181 302 Domestic production activity deduction — — (335 ) Research and development tax credit (598 ) (567 ) (426 ) Goodwill impairment 11,925 2,183 — Non-deductible Separation expenses 688 — — Other 92 54 (403 ) Federal tax rate change on deferred taxes — (70 ) (8,142 ) Total income tax expense/(benefit) $ 1,281 $ 10,328 $ (2,511 ) (a) We had a statutory rate of 21% in fiscal 2020 and 2019 and a blended statutory rate of 30.4% in fiscal 2018 because of Tax Reform. Deferred tax assets (liabilities) related to temporary differences are the following (in thousands): For the Years Ended April 30, 2020 2019 Non-current tax assets (liabilities): Net operating loss carryforwards and tax credits $ 3,158 $ 3,256 Inventories 6,955 6,741 Accrued expenses, including compensation 5,095 5,800 Environmental reserves — 181 Product liability 434 360 Accrued promotions 69 73 Workers' compensation 512 478 Warranty reserve 1,065 1,525 Stock-based compensation 2,568 3,884 State bonus depreciation 1,328 1,454 Property taxes (254 ) (185 ) Property, plant, and equipment (17,512 ) (20,392 ) Intangible assets 1,275 (10,006 ) Right-of-use assets (2,086 ) — Right-of-use liabilities 2,458 — Pension 231 234 Other 286 397 Less valuation allowance (3,186 ) (3,576 ) Net deferred tax asset/(liability) — total $ 2,396 $ (9,776 ) We had no federal net operating loss carryforwards in fiscal 2020. There were $17.7 million and $17.9 million in state net operating loss carryforwards as of April 30, 2020 and 2019, respectively. The state net operating loss carryforwards will expire between April 30, 2025 and April 30, 2038. There were $2.9 million of state tax credit carryforwards as of April 30, 2020 and 2019. The state tax credit carryforwards will expire between April 30, 2023 and April 30, 2025 or have no expiration date. As of April 30, 2020, valuation allowances of $904,000 and $2.3 million were provided on our deferred tax assets for those state net operating loss carryforwards, and state tax credits, respectively, that we do not anticipate using prior to their expiration. As of April 30, 2019, valuation allowances of $911,000 and $2.3 million were provided on our deferred tax assets for those state net operating loss carryforwards and state tax credits, respectively, that we do not anticipate using prior to their expiration. Additional valuation allowances of $29,000 were provided on our deferred income tax assets as of April 30, 2020, as we believe that it is more likely than not that all such assets will not be realized. These allowances related to IRC Section 162(m) limitations on the deductibility of certain executive compensation. Recording a valuation allowance or reversing a valuation allowance could have an effect on our future results of operations and financial position. On December 22, 2017, the SEC issued Staff Accounting Bulletin 118, or SAB118, that provided additional guidance allowing companies to use a measurement period, similar to that used in business combinations, to account for the impacts of Tax Reform in their financial statements. This measurement period was not permitted to extend beyond one year from the Tax reform enactment date. In accordance with SAB 118, to the extent that a company’s accounting for certain income tax effects of the Tax Reform is incomplete, but the company was able to determine a reasonably estimating the effects, we were permitted to record a provisional estimate in our financial statements. All provisional estimates related to Tax Reform were finalized within the measurement period. The income tax provisions represent effective tax rates of (2.1%) and 35.9% for the fiscal year ended April 30, 2020 and 2019, respectively. U.S. income taxes have not been provided on $84,000 of undistributed earnings of our foreign subsidiary since it is our intention to permanently reinvest such earnings offshore. If the earnings were distributed in the form of dividends, we would not be subject to U.S. tax as a result of the Tax Act but could be subject to foreign income and withholding taxes. Determination of the amount of this unrecognized deferred income tax liability is not practical. At April 30, 2020 and 2019, we did not have any gross tax-effected unrecognized tax benefits. With limited exception, we are subject to U.S. federal, state, and local, or non-U.S. income tax audits by tax authorities for fiscal years subsequent to April 30, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies Litigation In January 2018, Gemini Technologies, Incorporated, or Gemini, commenced an action against us and Smith & Wesson Corp. in the United States District Court for the District of Idaho, or District Court. The complaint alleges, among other things, that the defendants breached the earn-out and other provisions of the Asset Purchase Agreement and ancillary agreements between the parties in connection with Smith & Wesson Corp.’s acquisition of the Gemtech business from Gemini. The complaint seeks a declaratory judgment interpreting various terms of the Asset Purchase Agreement and damages in the sum of $18.6 million. In May 2018, the District Court dismissed the complaint on the grounds of forum non conveniens . We are a defendant in seven product liability cases and are aware of five other product liability claims, primarily alleging 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 monetary damages, as well as injunctive relief, allegedly arising out of the misuse of firearms by third parties. In January 2018, the trial court granted defendants’ Motion for Judgment on the Pleadings, dismissing the case in its entirety. In February 2018, plaintiffs appealed the dismissal to the Indiana Court of Appeals. On May 23, 2019, the Indiana Court of Appeals issued a decision, which affirmed in part and reversed in part and remanded for further proceedings, the trial court’s dismissal of the City’s complaint. On July 8, 2019, defendants filed a Petition to Transfer jurisdiction to the Indiana Supreme Court. Briefing was completed in the Indiana Supreme Court on August 5, 2019. On November 26, 2019, the Indiana Supreme Court denied our petition to transfer. The case was returned to the trial court. In May 2018, we were named in an action related to the Parkland, Florida shooting, filed in the Circuit Court, Broward County, Florida, seeking a declaratory judgment that a Florida statute that provides firearm manufacturers and dealers immunity from liability when their legally manufactured and lawfully sold firearms are later used in criminal acts only applies to civil actions commenced by governmental agencies not private litigants. In August 2018, we moved to dismiss the complaint on the grounds that it seeks an impermissible advisory opinion. On December 6, 2018, the court granted defendants’ motion to dismiss without prejudice and granted plaintiffs leave to amend their complaint. On December 10, 2018, plaintiffs filed a Second Amended Complaint for Declaratory Relief. On December 13, 2018, defendants filed a Motion to Dismiss Plaintiffs’ Second Amended Complaint. On November 21, 2019, the court granted defendants’ motion to dismiss plaintiffs’ second amended complaint, with prejudice. In August 2019, Primus Group, LLC filed an action in the U.S. District Court for the Southern District of Ohio Eastern Division against us and other firearms manufacturers, alleging Racketeer Influenced Corrupt Organizations Act (RICO) violations, racketeering enterprise, and intentional misrepresentation. Plaintiff, which operates as an “entertainment venue” in Columbus, Ohio, purports to bring this action on behalf of “all persons entitled to freely attend schools, shopping locations, churches, entertainment venues, and workplaces in the United States without the intrusion of individuals armed with assault weapons.” In addition to compensatory and punitive damages, plaintiff seeks preliminary and permanent injunctive relief enjoining the distribution and sale of “assault weapons.” On August 20, 2019, the court denied without prejudice plaintiff’s Motion for Temporary Restraining Order. On September 3, 2019, defendants moved to dismiss plaintiff’s complaint. On September 16, 2019, plaintiff filed an amended complaint, adding claims of public nuisance, negligent design, and failure to warn. On October 9, 2019, the U.S. District Court granted defendants’ motion, dismissing the case in its entirety. On October 11, 2019, plaintiff filed a notice of appeal with the U.S. Court of Appeals for the Sixth Circuit. On November 1, 2019, the Sixth Circuit dismissed plaintiff’s appeal for failure to pay the required fee. On November 4, 2019, plaintiff-appellant filed, and the Sixth Circuit granted, a motion to reinstate the case. However, on March 13, 2020, at the request of the Appellant and based on the death of co-counsel, the Sixth Circuit held the case in abeyance and ordered that the Appellant file a status report every 30 days. On April 14, 2020, the Appellant filed a Status Report stating that it intended to reactivate the case or dismiss the appeal within 60 days. The Appellant has filed no further Status Reports. We are a defendant in a putative class proceeding before the Ontario Superior Court of Justice in Toronto, Canada. The action was filed on December 16, 2019. The action claims CAD$50 million in aggregate general damages, CAD$100 million in aggregate punitive damages, special damages in an unspecified amount, together with interest and legal costs. The named plaintiffs are two victims of a shooting that took place in Toronto on July 22, 2018, and their family members. One victim was shot and injured during the shooting. The other suffered unspecified injuries while fleeing the shooting. The plaintiffs are seeking to certify a claim on behalf of classes that include all persons who were killed or injured in the shooting and their immediate family members. The plaintiffs allege negligent design and public nuisance. The case has not been certified as a class action. We intend to vigorously oppose the proceedings. In May 2020, we were named in an action related to the Chabad of Poway synagogue shooting that took place on April 27, 2019. The complaint was filed in the Superior Court of the State of California, for the County of San Diego – Central, and asserts claims against us for product liability, unfair competition, negligence, and public nuisance. The plaintiffs allege they were present at the synagogue on the day of the incident, and suffered physical and/or emotional injury. The plaintiffs seek compensatory and punitive damages, attorneys’ fees, and injunctive relief. We have not yet been served in the litigation. On July 31, 2019, our competitor, Sturm, Ruger & Co., Inc., filed a complaint and motion for preliminary injunction against us in the U.S. District Court, District of New Hampshire, seeking injunctive relief and damages. Plaintiff alleges trade dress infringement, involving our Thompson/Center brand T/CR22 rifle, as well as violation of the New Hampshire Consumer Protection Act. A hearing on plaintiff’s motion for preliminary injunction was held in November 2019. On December 2, 2019, plaintiff withdrew its motion for preliminary injunction. John Pidcock, as trustee of the ASPC Creditor Trust (appointed under the plan of reorganization of AcuSport Corp., or AcuSport, as debtor in possession under chapter 11 of the U.S. Bankruptcy Code), is the plaintiff in three separate actions against us in the U.S. Bankruptcy Court for the Southern District of Ohio. Two seek recovery of alleged preferential transfers received by us from AcuSport in the aggregate amount of $ 4.2 million. The third seeks turnover of goods allegedly owed to AcuSport by us under one or more of our promotional programs in the amount of $ 1.5 million. We deny all material allegations and have asserted affirmative defenses. We believe we have strong defenses to these actions and intend to continue to vigorously defend them. We believe that the various allegations as described above are unfounded , and that any incident and any results from them or any injuries were due to negligence or misuse of the firearm by the claimant or a third party. In addition, from time to time, 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 $50.0million, with punitive damages up to approximately $100.0 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, 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. In the future, should 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 adequate accruals for defense costs. For the fiscal years ended April 30, 2020, 2019, and 2018, we paid $584,000, $322,000, and $473,000, respectively, in defense and administrative costs relative to product liability and municipal litigation. In addition, we spent an aggregate of $3,000, $180,000, and $129,000, respectively, in those fiscal years in settlement fees related to product liability cases. We have recorded our liability for defense costs before consideration for reimbursement from insurance carriers. We have also recorded the amount due as reimbursement under existing policies from the insurance carriers as a receivable shown in other current assets and other assets. We recognize gains and expenses for changes in our product liability provisions and municipal litigation liabilities. In fiscal 2020, we recorded expense of $892,000; in fiscal 2019, we recorded expense of $293,000; and in fiscal 2018, we recorded expense of $540,000. 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 and regulations that regulate the health and safety of our workforce, including, but not limited to, those regulations monitored by the Occupational Health and Safety Administration, or OSHA, the National Fire Protection Association, and the Department of Public Health. Though not exhaustive, examples of applicable regulations include confined space safety, walking and working surfaces, machine guarding, and life safety. We are also subject to numerous federal, state and local environmental laws and regulations concerning, among other things, emissions in the air, discharges to land, surface, subsurface strata and water and the generation, handling, storage, transportation, treatment and disposal of hazardous wastes and other materials. These laws have required 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 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 April 30, 2020, we do not have an open environmental reserve recorded in our consolidated balance sheet. As of April 30, 2019, we recorded approximately $725,000 of environmental reserve in non-current liabilities. 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. The environmental reserve in fiscal 2019 was calculated using undiscounted amounts based on environmental remediation reports obtained from independent third-parties. 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 the cost of resolving 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. Contracts Employment Agreements — We have employment, severance, and change of control agreements with certain officers and managers. Other Agreements — We have distribution agreements with various third parties in the ordinary course of business. Leases The following summarizes our operating leases for office and/or manufacturing space: Location of Lease Expiration Date Springfield, Massachusetts November 30, 2020 Scottsdale, Arizona April 30, 2021 Somersworth, New Hampshire June 30, 2021 Shenzhen, China August 31, 2021 Houlton, Maine January 31, 2022 Wilsonville, Oregon October 31, 2022 Columbia, Missouri (1) April 30, 2023 Bentonville, Arkansas December 31, 2023 Deep River, Connecticut May 4, 2024 Park City , Utah August 31, 2024 Herstal, Belgium January 21, 2027 Meridian, Idaho (1) October 14, 2027 Columbia, Missouri November 25, 2038 (1) Properties are subleased. We also lease machinery, photocopiers, and vehicles for our national sales force with various expiration dates. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Apr. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | 19. Quarterly Financial Information (Unaudited) The following table summarizes quarterly financial results in fiscal 2020 and 2019. In our opinion, all adjustments necessary to present fairly the information for such quarters have been reflected (in thousands, except per share data): For the Year Ended April 30, 2020 First Second Third Fourth Full Quarter Quarter Quarter Quarter Year Net sales $ 123,665 $ 154,388 $ 166,695 $ 233,642 $ 678,390 Gross profit 47,854 50,306 55,203 81,342 234,705 Net (loss)/income $ (2,108 ) $ 1,293 $ 5,731 $ (66,146 ) (b) $ (61,230 ) Per common share (a) Basic - total $ (0.04 ) $ 0.02 $ 0.10 $ (1.19 ) $ (1.11 ) Diluted - total $ (0.04 ) $ 0.02 $ 0.10 $ (1.19 ) $ (1.11 ) For the Year Ended April 30, 2019 First Second Third Fourth Full Quarter Quarter Quarter Quarter Year Net sales $ 138,833 $ 161,703 $ 162,008 $ 175,733 $ 638,277 Gross profit 52,422 56,386 54,059 63,364 226,231 Net income/(loss) $ 7,645 $ 6,665 $ (5,725 ) (c) $ 9,825 $ 18,410 Per common share (a) Basic – total $ 0.14 $ 0.12 $ (0.10 ) $ 0.18 $ 0.34 Diluted – total $ 0.14 $ 0.12 $ (0.10 ) $ 0.18 $ 0.33 (a) Basic and diluted earnings per share may not equal the sum of the quarterly basic and diluted earnings per share due to rounding. (b) Amounts includes a $98.7 million non-cash goodwill impairment relating to our Outdoor Products & Accessories segment. (c) Amounts includes a $10.4 million non-cash goodwill impairment relating to our Outdoor Products & Accessories segment. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | 20. Segment Reporting We report our results of operations in two segments: (1) Firearms (which includes Firearms and Manufacturing Services divisions) The Firearms segment includes our firearms, services, and other components, which we manufacture or provide at our facilities in Springfield, Massachusetts, Houlton, Maine, and Deep River, Connecticut and our firearm products, which we develop, assemble, and market in our Springfield, Massachusetts facility. The Outdoor Products & Accessories Segment assets are those directly used in or clearly allocable to a reportable segment’s operations. Assets by business segment are presented in the following table as of April 30, 2020 and 2019 (in thousands): As of April 30, 2020 As of April 30, 2019 Firearms Outdoor Products Accessories Total Firearms Outdoor Products & Accessories Total Total assets $ 467,978 $ 260,983 $ 728,961 $ 389,719 $ 377,070 $ 766,789 Property, plant, and equipment, net 147,642 9,775 157,417 170,549 12,719 183,268 Intangibles, net 4,982 68,772 73,754 4,661 87,179 91,840 Goodwill 19,024 64,581 83,605 19,024 163,245 182,269 Results by business segment are presented in the following table for the years ended April 30, 2020, 2019, and 2018 (in thousands): For the Year Ended April 30, 2020 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 526,027 $ 152,363 $ — $ — $ 678,390 Intersegment revenue 3,587 15,110 — (18,697 ) — Total gross revenue 529,614 167,473 — (18,697 ) 678,390 Cost of sales 363,924 98,143 — (18,382 ) 443,685 Gross margin 165,690 69,330 — (315 ) 234,705 Operating income/(loss) 58,911 (111,337 ) (b) (43,780 ) 47,387 (48,819 ) Income tax expense/(benefit) 13,497 (7,890 ) (4,326 ) — 1,281 For the Year Ended April 30, 2019 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 478,477 $ 159,800 $ — $ — $ 638,277 Intersegment revenue 2,858 17,469 — (20,327 ) — Total gross revenue 481,335 177,269 — (20,327 ) 638,277 Cost of sales 335,051 97,143 — (20,148 ) 412,046 Gross margin 146,284 80,126 — (179 ) 226,231 Operating income/(loss) 59,663 (18,414 ) (c) (44,831 ) 41,638 38,056 Income tax expense/(benefit) 12,068 (966 ) (774 ) — 10,328 For the Year Ended April 30, 2018 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 448,986 $ 157,864 $ — $ — $ 606,850 Intersegment revenue 3,807 13,816 — (17,623 ) — Total net sales 452,793 171,680 — (17,623 ) 606,850 Cost of sales 332,889 (d) 93,822 — (15,613 ) 411,098 Gross margin 119,903 77,859 — (2,010 ) 195,752 Operating income/(loss) 30,213 (5,508 ) (44,128 ) 46,471 27,048 Income tax expense/(benefit) 16,729 (8,059 ) (11,181 ) — (2,511 ) (a) For the years ended April 30, 2020, 2019, and 2018, we allocated all of corporate overhead expenses except for interest and income taxes, (b) Amount includes a non-cash goodwill charge of $98.7 million. ( c ) Amount includes a non-cash goodwill charge of $10.4 million. ( d ) Amount includes $500,000 of additional cost of goods sold from the fair value inventory step-up related to our 2018 Acquisitions. |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Apr. 30, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | SCHEDULE II SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS For the Years Ended April 30, 2020, 2019, and 2018 Additions Charged to Charged to Balance at Costs and Other Balance at May 1, Expenses Accounts Deductions April 30, 2020 Allowance for doubtful accounts $ 1,899 $ 281 $ — $ (742 ) $ 1,438 Deferred tax valuation allowance 3,576 (390 ) — — 3,186 2019 Allowance for doubtful accounts $ 1,824 $ 631 $ — $ (556 ) $ 1,899 Deferred tax valuation allowance 3,336 240 — — 3,576 2018 Allowance for doubtful accounts $ 598 $ 1,000 $ 401 (1) $ (175 ) (3) $ 1,824 Deferred tax valuation allowance 2,792 544 — — 3,336 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the financial statement dates and the reported amounts of revenue and expenses during the reporting periods. Our significant estimates include the accrual for warranty, reserves for excess and obsolete inventory, rebates and other promotions, and valuation of intangible assets. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation — The accompanying consolidated financial statements include the accounts of Smith & Wesson Brands, Inc. and its wholly owned subsidiaries, including Smith & Wesson Inc., Smith & Wesson Sales Company, and SWPC Plastics, LLC, reported in our Firearms segment; AOB Products Company, Crimson Trace Corporation, and AOB Consulting (Shenzhen), Co., LTD., reported in our Outdoor Products & Accessories segment; and SWSS LLC, formerly Smith & Wesson Security Solutions, Inc., or SWSS, our former security services division. 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 April 30, 2020 and 2019 and for the periods presented, have been included. All intercompany accounts and transactions have been eliminated in consolidation. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — Unless otherwise indicated, the fair values of all reported assets and liabilities, which represent financial instruments not held for trading purposes, approximate the carrying values of such amounts because of their short-term nature or market rates of interest. |
Cash and Cash Equivalents | Cash and Cash Equivalents — We consider all highly liquid investments purchased with original maturities of three months or less at the date of acquisition to be cash equivalents. We maintain our cash in bank deposit accounts that, at times, may exceed federally insured limits. We have not experienced any losses in such accounts. As of April 30, 2020, all of our accounts exceeded federally insured limits. |
Financial Instruments | Financial Instruments — We account for derivative instruments under Accounting Standards Codification (“ASC”) 815-10, , which establishes accounting and reporting standards for derivative instruments and hedging activities and requires us to recognize these instruments as either assets or liabilities on the balance sheet and measure them at fair value. As of April 30, 2020, we did not have any Level 2 financial instruments within the hierarchy. See Note 7 – for more information regarding our financial instruments. |
Trade Receivables | Trade Receivables — We extend credit to our domestic customers and some foreign distributors based on their financial condition. We sometimes offer discounts for early payment on invoices. When we believe the extension of credit is not advisable, we rely on either a prepayment or a letter of credit. We write off balances deemed uncollectible by us against our allowance for doubtful accounts. We estimate our allowance for doubtful accounts through current past due balances, knowledge of our customers’ financial situations, and past payment history. |
Concentrations of Credit Risk | Concentrations of Credit Risk — Financial instruments that potentially subject us to concentration of credit risk consist principally of cash, cash equivalents, and trade receivables. We place our cash and cash equivalents in overnight U.S. government securities. Concentrations of credit risk with respect to trade receivables are limited by the large number of customers comprising our customer base and their geographic and business dispersion. We perform ongoing credit evaluations of our customers’ financial condition and generally do not require collateral. For the year ended April 30, 2020, one of our customers accounted for approximately 10.5% of our net sales but did not exceed 10% of our accounts receivable. Three other customers each had greater than 10% of our accounts receivable and combined for a total of 37.7%. For the fiscal year ended April 30, 2019, none of our customers exceeded 10% of our net sales and one of our customers accounted for approximately 19.8% of our accounts receivable. For the fiscal year ended April 30, 2018, one of our customers accounted for 11.9% of our net sales and none of our customers accounted for 10% or more of our accounts receivable. |
Inventories | Inventories — We value inventories at the lower cost, using the first-in, first-out, or FIFO method, or net realizable value. An allowance for potential non-saleable inventory due to excess stock or obsolescence is based upon a detailed review of inventory, past history, and expected future usage. |
Property, Plant, and Equipment | Property, Plant, and Equipment — We record property, plant, and equipment, consisting of land, building, improvements, machinery, equipment, software, hardware, furniture, and fixtures, at cost and depreciate them using the straight-line method over their estimated useful lives. We charge expenditures for maintenance and repairs to earnings as incurred, and we capitalize additions, renewals, and betterments. Upon the retirement or other disposition of property and equipment, we remove the related cost and accumulated depreciation from the respective accounts and include any gain or loss in operations. We lease certain of our real estate, machinery, photocopiers, and vehicles under non-cancelable operating lease agreements, and we recognize expenses under our operating lease assets and liabilities at the commencement date based on the present value of lease payments over the lease term. The depreciable life of assets and leasehold improvements are based on the expected life of the lease. A summary of the estimated useful lives is as follows: Description Useful Life Building and improvements 10 to 40 years Software and hardware 2 to 7 years Machinery and equipment 2 to 10 years We include tooling, dies, and fixtures as part of machinery and equipment and depreciate them over a period generally not exceeding ten years. |
Intangible Assets | Intangible Assets — We record intangible assets at cost or based on the fair value of the assets acquired. Intangible assets consist of developed technology, customer relationships, trademarks, trade names, and patents. We amortize intangible assets over their estimated useful lives or in proportion to expected yearly revenue generated from the intangibles that were acquired. |
Revenue Recognition | Revenue Recognition — We recognize revenue in accordance with the provisions of Accounting Standards Update, or ASU, , which became effective for us on May 1, 2018. Generally, all performance obligations are satisfied and revenue is recognized when the risks and rewards of ownership have transferred to the customer, which is generally upon shipment but could be delayed until the receipt of customer acceptance. In some instances, sales include multiple performance obligations. The most common of these instances relates to sales promotion programs under which customers are entitled to receive free goods based upon their purchase of our products, which we have identified as a material right. The fulfillment of these free goods are our responsibility. In such instances, we allocate the revenue of the promotional sales based on the estimated level of participation in the sales promotional program and the timing of the shipment of all of the products included in the promotional program, including the free goods. We recognize revenue related to the material right proportionally as each performance obligation is satisfied. The net change in contract liabilities for a given period is reported as an increase or decrease to sales. Our product sales are generally sold free on board, or FOB, shipping point and provide payment terms to most commercial customers ranging from 20 to 90 days of product shipment with a discount available to some customers for early payment. Generally, framework contracts define the general terms of sales, including payment terms, freight terms, insurance requirements, and cancelation provisions. Purchase orders define the terms for specific sales, including description, quantity, and price of each product purchased. We estimate variable consideration relative to the amount of cash discounts to which customers are likely to be entitled. In some instances, we provide longer payment terms, particularly as it relates to our hunting dating programs, which represent payment terms due in the fall for certain orders of hunting products received in the spring and summer. As a result of utilizing practical expedience upon the adoption of ASC 606, we do not consider these extended terms to be a significant financing component of the contract because the payment terms are less than one year. In all cases, we consider our costs related to shipping and handling to be a cost of fulfilling the contract with the customer. |
Segment Information | Segment Information — We have two reporting segments: Firearms, which includes our Firearms and Manufacturing Services divisions; and Outdoor Products & Accessories. See Note 20 – Segment Reporting for more information regarding our segments. |
Research and Development | Research and Development — We engage in both internal and external research and development, or R&D, in order to remain competitive and to exploit possible untapped market opportunities. We approve prospective R&D projects after analysis of the cost and benefits associated with the potential product. Costs in R&D expense include, among other items, salaries, materials, utilities, and administrative costs. |
(Loss)/Earnings per Share | (Loss)/ Earnings per Share Earnings Per Share The following table provides a reconciliation of the net (loss)/income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted (loss)/earnings per common share (in thousands, except per share data): For the Year Ended April 30, 2020 2019 2018 Net Per Share Net Per Share Net Per Share Loss Shares Amount Income Shares Amount Income Shares Amount Basic (loss)/earnings $ (61,230 ) 54,983 $ (1.11 ) $ 18,410 54,483 $ 0.34 $ 20,128 54,061 $ 0.37 Effect of dilutive stock awards — — — — 733 (0.01 ) — 773 — Diluted (loss)/earnings $ (61,230 ) 54,983 $ (1.11 ) $ 18,410 55,216 $ 0.33 $ 20,128 54,834 $ 0.37 All of our outstanding stock options and restricted stock units, or RSUs, were included in the computation of diluted earnings per share for the years ended April 30, 2019 and 2018. |
Valuation of Long Lived Tangible and Intangible Assets | Valuation of Long-lived Tangible and Intangible Assets — We evaluate the recoverability of long-lived assets, or asset groups, whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. When such evaluations indicate that the related future undiscounted cash flows are not sufficient to recover the carrying values of the assets, such carrying values are reduced to fair value and this adjusted carrying value becomes the asset’s new cost basis. We determine fair value primarily using future anticipated cash flows that are directly associated with and are expected to arise as a direct result of the use and eventual disposition of the asset, or asset group, discounted using an interest rate commensurate with the risk involved. We have significant long-lived tangible and intangible assets, which are susceptible to valuation adjustments as a result of changes in various factors or conditions. The most significant long-lived tangible and intangible assets, other than goodwill, are property, plant, and equipment, developed technology, customer relationships, patents, trademarks, and trade names. We amortize all finite-lived intangible assets either on a straight-line basis or based upon patterns in which we expect to utilize the economic benefits of such assets. We initially determine the values of intangible assets by a risk-adjusted, discounted cash flow approach. We assess the potential impairment of identifiable intangible assets and fixed assets whenever events or changes in circumstances indicate that the carrying values may not be recoverable and at least annually. Factors we consider important, which could trigger an impairment of such assets, include the following: • significant underperformance relative to historical or projected future operating results; • significant changes in the manner or use of the assets or the strategy for our overall business; • significant negative industry or economic trends; • a significant decline in our stock price for a sustained period; and • a decline in our market capitalization below net book value. Future adverse changes in these or other unforeseeable factors could result in an impairment charge that could materially impact future results of operations and financial position in the reporting period identified. In accordance with ASC 350, Intangibles-Goodwill and Other, we test goodwill for impairment on an annual basis on February 1 and between annual tests if indicators of potential impairment exist. The impairment test compares the fair value of the operating units to their carrying amounts to assess whether impairment is present. We have reviewed the provisions of ASC 350-20, with respect to the criteria necessary to evaluate the number of reporting units that exist. Based on this review, we have two operating units when reviewing ASC 350-20: Firearms and Outdoor Products & Accessories. We estimate the fair value of our Firearms and Outdoor Products & Accessories operating units using an equal weighting of the fair values derived from the income approach and the market approach because we believe a market participant would equally weight both approaches when valuing the operating units. The income approach is based on the projected cash flows that are discounted to their present value using discount rates that consider the timing and risk of the forecasted cash flows. Fair value is estimated using internally developed forecasts and assumptions. The discount rate used is the average estimated value of a market participant’s cost of capital and debt, derived using customary market metrics. Other significant assumptions include revenue growth rates, profitability projections, and terminal value growth rates. The market approach estimates fair values based on the determination of appropriate publicly traded market comparison companies and market multiples of revenue and earnings derived from those companies with similar operating and investment characteristics as the operating unit being valued. Finally, we compare and reconcile our overall fair value to our market capitalization in order to assess the reasonableness of the calculated fair values of our operating units. We recognize an impairment loss for goodwill if the implied fair value of goodwill is less than the carrying value. As of our valuation date, February 1, 2020, our Firearms operating unit had $19.0 million of goodwill and its fair value significantly exceeded its carrying value. Our Outdoor Products & Accessories operating unit had $163.2 million of goodwill and its fair value exceeded its carrying value by approximately 1.5%. On March 23, 2020, we determined that business in our Outdoor Products & Accessories segment was expected to be negatively impacted by several factors related to the COVID-19 pandemic, including a major online retail customer’s decision to halt or delay most non-essential product orders, COVID-19-related supply chain issues, as well as COVID-19-related “stay at home” orders and sporting goods store closures, which reduced retail foot traffic in many states. Given the extreme market volatility, we relied solely on the income approach to derive the current value of the Outdoor Products & Accessories segment. Based on these factors, we expect reduced cash flows in our Outdoor Products & Accessories segment, and we believe this constituted a triggering event under generally accepted accounting principles. Based on the results of this evaluation, we recorded a non-cash impairment charge of $98.7 million of goodwill in our Outdoor Products & Accessories segment. As of April 30, 2020, our Outdoor Products & Accessories operating unit had $64.6 million of goodwill. |
Income Taxes | Income Taxes — We use the asset and liability approach for financial accounting and reporting income taxes. The provision for income taxes is based upon income reported in the accompanying consolidated financial statements as required by ASC 740-10, We determine deferred tax assets and liabilities based on temporary differences between financial reporting and tax bases in assets and liabilities and measure them by applying enacted rates and laws expected to be in place when the deferred items become subject to income tax or deductible for income tax purposes. We recognize the effect on deferred taxes and liabilities of a change in tax rates in the period that includes the enactment date. In assessing the realization of our deferred income tax assets, we consider whether it is more likely than not that the deferred income tax assets will be realized. The ultimate realization of our deferred income tax assets depends upon generating future taxable income during the periods in which our temporary differences become deductible and before our net operating loss carryforwards expire. We evaluate the recoverability of our deferred income tax assets by assessing the need for a valuation allowance on a quarterly basis. If we determine that it is more likely than not that our deferred income tax assets will not be recovered, we establish a valuation allowance against some or all of our deferred income tax assets. Recording or reversing a valuation allowance could have a significant effect on our future results of operations and financial position. |
Warranty | Warranty — We generally provide a limited one-year warranty and a lifetime service policy to the original purchaser of our new firearm products. We either provide a limited one year or limited lifetime warranty program to the original purchaser of most of our outdoor products and accessories products and we will repair or replace any of our electro-optics products or parts that are found to be defective under normal use and service with an item of equivalent value, at our option, without charge during the warranty period. We provide for estimated warranty obligations in the period in which we recognize the related revenue. We quantify and record an estimate for warranty-related costs based on our actual historical claims experience and current repair costs. We make adjustments to accruals as warranty claims data and historical experience warrant. Should we experience actual claims and repair costs that are higher than the estimated claims and repair costs used to calculate the provision, our operating results for the period or periods in which such returns or additional costs materialize would be adversely impacted. From time to time, we have experienced certain manufacturing and design issues with respect to some of our firearms and have initiated some product recalls and safety alerts in the past. In November 2011, we initiated a recall of all Thompson/Center Arms Venture rifles manufactured since the products’ introduction in mid-2009. In June 2013, we also initiated a recall of all Thompson/Center Arms bolt action rifles manufactured since the products’ introduction in 2007. In April 2018, we initiated a consumer advisory for certain models of our M&P Shield EZ pistols because in rare circumstances the safety on the pistol will move from the fire position to the “safety on” position when using ammunition that produces a high level of felt recoil. In May 2018, we initiated a recall of certain models of our electro-optics products that incorporated diodes manufactured by a particular third party because the diodes failed to comply with a Food and Drug Administration, or FDA, standard for laser products. We have made efforts to notify all consumers that may be impacted by this recall. The remaining cost of all recalls, safety alerts, and consumer advisories is $683,000, which is recorded in accrued warranty on our consolidated balance sheet. Warranty expense for the fiscal years ended April 30, 2020, 2019, and 2018 amounted to $1.6 million, $2.9 million, and $5.8 million, respectively. The following table sets forth the change in accrued warranties, a portion of which is recorded as a non-current liability, in the fiscal years ended April 30, 2020, 2019, and 2018 (in thousands): Balance as of April 30, 2018 7,513 Warranties issued and adjustments to provisions 2,852 Warranty claims (4,163 ) Balance as of April 30, 2019 6,202 Warranties issued and adjustments to provisions 1,570 Warranty claims (3,536 ) Balance as of April 30, 2020 $ 4,236 |
Sales and Promotional Related Expenses | Sales and Promotional Related Expenses — We present product sales in our consolidated financial statements, net of customer promotional program costs that depend upon the volume of sales. For promotional program costs that are not dependent on the volume of sales, we record promotional costs in cost of goods sold. The total of all our promotional programs amounted to $47.5 million, $39.2 million, and $58.2 million for the fiscal years ended April 30, 2020, 2019, and 2018, respectively. We have a co-op advertising program at the retail level. We expensed costs amounting to $26.3 million, $23.8 million, and $23.3 million for fiscal 2020, 2019, and 2018, respectively, as selling and marketing expenses. |
Shipping and Handling | Shipping and Handling — In the accompanying consolidated financial statements, we included amounts billed to customers for shipping and handling in net sales. Beginning in fiscal 2020, inbound freight charges and internal transfer costs are included in cost of goods sold; however, costs incurred to distribute products to customers is included in selling, marketing, and distribution expenses. As a result of this change, we recorded $4.4 million of costs in selling, marketing, and distribution expenses that would have been recorded in cost of sales in the prior fiscal year. Prior to fiscal 2020, in our Firearms segment, we included costs relating to shipping and handling charges, including inbound freight charges, internal transfer costs, and the other costs of our distribution network, in cost of goods sold. |
Insurance Reserves | Insurance Reserves — In January 2020, we formed a wholly owned captive insurance company, which provides product liability insurance to us and our subsidiaries. This captive insurance company was recorded in our consolidated financial statements for the fiscal year ended April 30, 2020. We are self-insured through retentions or deductibles for the majority of our workers’ compensation, automobile, general liability, product liability, and group health insurance programs. Self-insurance amounts vary up to $10.0 million per occurrence; however, we believe the likelihood of reaching the maximum per occurrence limit is remote. We record our liability for estimated premiums and incurred losses in the accompanying consolidated financial statements on an undiscounted basis. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards — In February 2016, the Financial Accounting Standards Board, or FASB, issued ASU 2016-02, Leases (Topic 842), or ASU 2016-02, which amends the existing guidance to require lessees to recognize right-of-use assets and lease liabilities in a classified balance sheet. The most prominent among the changes in the standard is the requirement for lessees to recognize right-of-use assets and lease liabilities for those leases classified as operating leases under current GAAP. The requirements of ASU 2016-02 are effective for financial statements for annual periods beginning after December 15, 2018, and early adoption is permitted. We utilized leasing software to assist us in the accounting and tracking of leases and used the optional transitional method allowed by ASU 2018-11, Leases (Topic 842): Targeted Improvements. Under this method, we applied the standard using the modified retrospective method with an adoption date of May 1, 2019. We elected to use the package of practical expedients, which permits us to not reassess certain lease contract provisions. We adopted ASU 2016-02 effective May 1, 2019 and recognized right-of-use assets of $11.5 million and lease liabilities of $12.8 million. The difference between the right-of-use assets and the lease liabilities of $1.3 million is a result of the reclassification of deferred rent and lease incentive liabilities primarily relating to our real estate operating leases into the right-of use assets, which had no impact to retained earnings. See also Note 4 — Leases, for more information. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses |
Fair Value Measurements and Disclosures Topic | 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 and cash equivalents, which are measured at fair value on a recurring basis, totaled $125.4 million and $41.0 million as of April 30, 2020 and 2019, 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 which 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). 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 2 or Level 3 financial assets or liabilities. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Lives | A summary of the estimated useful lives is as follows: Description Useful Life Building and improvements 10 to 40 years Software and hardware 2 to 7 years Machinery and equipment 2 to 10 years |
Reconciliation of Net (Loss)/Income Amounts and Weighted Average Number of Common and Common Equivalent Shares Used to Determine Basic and Diluted (Loss)/Earnings per Common Share | The following table provides a reconciliation of the net (loss)/income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted (loss)/earnings per common share (in thousands, except per share data): For the Year Ended April 30, 2020 2019 2018 Net Per Share Net Per Share Net Per Share Loss Shares Amount Income Shares Amount Income Shares Amount Basic (loss)/earnings $ (61,230 ) 54,983 $ (1.11 ) $ 18,410 54,483 $ 0.34 $ 20,128 54,061 $ 0.37 Effect of dilutive stock awards — — — — 733 (0.01 ) — 773 — Diluted (loss)/earnings $ (61,230 ) 54,983 $ (1.11 ) $ 18,410 55,216 $ 0.33 $ 20,128 54,834 $ 0.37 |
Change in Accrued Warranties Recorded as Non-Current Liability | The following table sets forth the change in accrued warranties, a portion of which is recorded as a non-current liability, in the fiscal years ended April 30, 2020, 2019, and 2018 (in thousands): Balance as of April 30, 2018 7,513 Warranties issued and adjustments to provisions 2,852 Warranty claims (4,163 ) Balance as of April 30, 2019 6,202 Warranties issued and adjustments to provisions 1,570 Warranty claims (3,536 ) Balance as of April 30, 2020 $ 4,236 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities Related to Operating and Financing Leases | The amounts of assets and liabilities related to our operating and financing leases as of April 30, 2020 were as follows (in thousands): Balance Sheet Caption April 30, 2020 Operating Leases Right-of-use assets $ 10,802 Accumulated amortization (2,232 ) Right-of-use assets, net Other assets $ 8,570 Current liabilities Accrued expenses and deferred revenue $ 2,663 Non-current liabilities Other non-current liabilities 7,488 Total operating lease liabilities $ 10,151 Finance Leases Right-of-use assets $ 40,986 Accumulated depreciation (2,098 ) Right-of-use assets, net Property, plant, and equipment, net $ 38,888 Current liabilities Accrued expenses and deferred revenue 996 Non-current liabilities Finance lease payable, net of current portion 39,873 Total finance lease liabilities $ 40,869 |
Summary of Future Lease Payments for Operating and Finance Leases | Future lease payments for all our operating and finance leases for succeeding fiscal years is as follows (in thousands): Operating Financing Total 2021 $ 3,174 $ 3,016 $ 6,190 2022 2,958 3,056 6,014 2023 2,769 3,071 5,840 2024 1,722 3,125 4,847 2025 330 3,180 3,510 Thereafter 679 48,784 49,532 Total future lease payments 11,632 64,232 75,933 Less amounts representing interest (1,481 ) (23,363 ) (24,844 ) Present value of lease payments 10,151 40,869 51,089 Less current maturities of lease liabilities (2,663 ) (996 ) (3,659 ) Long-term maturities of lease liabilities $ 7,488 $ 39,873 $ 47,430 |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Impact of Adoption of ASU 2014-09 on Revenue Recognized | The following table outlines the impact of the adoption of ASU 2014-09 on revenue recognized during the year ended April 30, 2019 (in thousands): 2020 2019 Outstanding performance obligations at beginning of period $ 12,213 $ 23,305 Revenue recognized (48,576 ) (51,213 ) Revenue deferred 50,406 40,121 Outstanding performance obligations at end of period $ 14,043 $ 12,213 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill by reporting segment are as follows (in thousands): Outdoor Products & Firearm Segment Accessories Segment Total Goodwill Balance as of April 30, 2018 $ 18,490 $ 172,797 $ 191,287 Adjustments 534 — 534 Acquisitions — 844 844 Goodwill impairment — (10,396 ) (10,396 ) Balance as of April 30, 2019 19,024 163,245 182,269 Adjustments — (2 ) (2 ) Goodwill impairment — (98,662 ) (98,662 ) Balance as of April 30, 2020 $ 19,024 $ 64,581 $ 83,605 |
Summary of Intangible Assets | The following table presents a summary of intangible assets as of April 30, 2020 and 2019 (in thousands): April 30, 2020 April 30, 2019 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 92,560 $ (52,981 ) $ 39,579 $ 92,560 $ (41,643 ) $ 50,917 Developed technology 21,788 (12,705 ) 9,083 21,230 (10,428 ) 10,802 Patents, trademarks, and trade names 57,837 (34,320 ) 23,517 57,477 (28,479 ) 28,998 Backlog 1,150 (1,150 ) — 1,150 (1,150 ) — 173,335 (101,156 ) 72,179 172,417 (81,700 ) 90,717 Patents in progress 1,145 — 1,145 897 — 897 Total definite-lived intangible assets 174,480 (101,156 ) 73,324 173,314 (81,700 ) 91,614 Indefinite-lived intangible assets 430 — 430 226 — 226 Total intangible assets $ 174,910 $ (101,156 ) $ 73,754 $ 173,540 $ (81,700 ) $ 91,840 |
Schedule of Future Expected Amortization Expense | The following table represents future expected amortization expense as of April 30, 2020, which will primarily be recorded in our Outdoor Products & Accessories segment (in thousands): Fiscal Amount 2021 $ 16,798 2022 14,412 2023 11,857 2024 10,109 2025 6,456 Thereafter 12,547 Total $ 72,179 |
Net Sales (Tables)
Net Sales (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Disclosure Net Sales [Abstract] | |
Breakdown of Net Sales | The following table sets forth the breakdown of net sales for the fiscal years ended April 30, 2020, 2019, and 2018 (in thousands): For the Years Ended April 30, 2020 2019 2018 Handguns $ 390,712 $ 336,901 $ 326,290 Long Guns 101,540 107,717 90,222 Other Products & Services 33,775 33,859 32,474 Firearms Segment 526,027 478,477 448,986 Outdoor Products & Accessories Segment 152,363 159,800 157,864 Total Net Sales $ 678,390 $ 638,277 $ 606,850 |
Breakdown of Export Net Sales | We sell our products worldwide. The following table sets forth the breakdown of export net sales included in the above table. Our export net sales accounted for 4%, 5%, and 5% of total net sales for the fiscal years ended April 30, 2020, 2019, and 2018, respectively (in thousands): For the Years Ended April 30, Region 2020 2019 2018 Europe $ 8,443 $ 11,860 $ 9,586 Asia 6,247 3,866 4,725 Latin America 2,411 3,268 2,038 All others international 9,086 14,030 12,388 Total international net sales (a) $ 26,187 $ 33,024 $ 28,737 (a) Our international sales were negatively impacted in our fourth fiscal quarter as a result of COVID-19 pandemic. |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant, and Equipment | The following table summarizes property, plant, and equipment as of April 30, 2020 and 2019 (in thousands): April 30, 2020 April 30, 2019 Machinery and equipment $ 279,005 $ 270,815 Software and hardware 50,671 47,587 Building and improvements 36,186 34,584 Land and improvements 3,787 3,787 Right of use assets 40,986 46246 410,635 403,019 Less: Accumulated depreciation and amortization (260,475 ) (228,306 ) 150,160 174,713 Construction in progress 7,257 8,555 Total property, plant, and equipment, net $ 157,417 $ 183,268 |
Summary of Depreciation and Amortization Expense | The following table summarizes depreciation and amortization expense, which includes amortization of intangibles and debt financing costs, by line item for the fiscal years ended April 30, 2020, 2019, and 2018 (in thousands): For the Years Ended April 30, 2020 2019 2018 Cost of sales $ 24,217 $ 23,797 $ 24,582 Research and development 659 625 557 Selling and marketing 456 530 619 General and administrative (a) 28,039 28,476 25,212 Interest expense 687 431 1,105 Total depreciation and amortization $ 54,058 $ 53,859 $ 52,075 (a) General and administrative expenses included $19.0 million, $21.8 million, and $20.8 million of amortization for the fiscal years ended April 30, 2020, 2019, and 2018, respectively, which were recorded as a result of our acquisitions. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
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 April 30, 2020 and 2019 (in thousands): April 30, 2020 April 30, 2019 Finished goods $ 111,169 $ 108,247 Finished parts 32,721 36,181 Work in process 7,037 7,576 Raw material 13,264 11,766 Total inventories $ 164,191 $ 163,770 |
Accrued Expenses and Deferred_2
Accrued Expenses and Deferred Revenue (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses | The following table sets forth other accrued expenses as of April 30, 2020 and 2019 (in thousands): April 30, 2020 April 30, 2019 Accrued taxes other than income $ 21,461 $ 6,078 Deferred revenue 14,744 12,213 Accrued rebates and promotions 5,189 4,877 Accrued employee benefits 4,705 5,241 Accrued professional fees 4,058 2,649 Right-of-use lease liabilities 2,663 — Accrued distributor incentives 2,253 1,895 Accrued commissions 967 1,004 Interest payable 349 737 Current portion of capital lease obligation 996 681 Accrued other 7,217 3,947 Total accrued expenses and deferred revenue $ 64,602 $ 39,322 (a) Increase in accrued taxes other than income is due to the deferral of federal excise tax payments allowed by the Tax and Trade Bureau as a result of the COVID-19 pandemic . |
Self-Insurance Reserves (Tables
Self-Insurance Reserves (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Other Liabilities | The following table summarizes the activity in the workers’ compensation, product liability, municipal liability, and medical/dental reserves in the fiscal years ended April 30, 2020, 2019, and 2018 (in thousands): For the Year Ended April 30, 2020 2019 2018 Beginning balance $ 8,859 $ 9,173 $ 8,663 Additional provision charged to expense 21,317 21,602 22,802 Payments (20,763 ) (21,916 ) (22,292 ) Ending balance $ 9,413 $ 8,859 $ 9,173 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
Share Based Compensation Stock Options Activity | The number of shares and weighted average exercise prices of options for the fiscal years ended April 30, 2020, 2019, and 2018 are as follows: For the Year Ended April 30, 2020 2019 2018 Weighted Weighted Weighted Average Average Average Shares Exercise Price Shares Exercise Price Shares Exercise Price Options outstanding, beginning of year 267,761 $ 6.76 316,160 $ 6.69 335,160 $ 6.58 Exercised during the period (67,094 ) 3.97 (48,399 ) 6.28 (19,000 ) 4.70 Options outstanding, end of period 200,667 $ 7.70 267,761 $ 6.76 316,160 $ 6.69 Weighted average remaining contractual life 0.43 years 2.35 years 3.16 years Options exercisable, end of period 200,667 $ 7.70 267,761 $ 6.76 316,160 $ 6.69 Weighted average remaining contractual life 0.43 years 2.35 years 3.16 years |
Summary of Stock Compensation Expense | The following table summarizes stock compensation expense by line item for the fiscal years ended April 30, 20 20 , 20 19 , and 20 18 (in thousands): For the Years Ended April 30, 2020 2019 2018 Cost of sales $ 704 $ 746 $ 882 Research and development 121 99 187 Selling and marketing 340 489 382 General and administrative 1,756 (a) 6,658 6,364 Total stock-based compensation $ 2,921 $ 7,992 $ 7,815 (a) The decrease in general and administrative stock-based compensation expense from fiscal 2019 was because of the separation of our former President and Chief Executive Officer. |
Share Based Payment Award Performance Shares Valuation Assumptions | We incorporate the following variables into the valuation model: For the Years Ended April 30, 2020 2019 2018 Grant date fair market value Smith & Wesson Brands, Inc. $ 7.80 $ 9.85 $ 11.11 Russell 2000 Index $ 1,138.78 $ 1,591.21 $ 1,557.89 Volatility (a) Smith & Wesson Brands, Inc. 54.02 % 45.19 % 42.27 % Russell 2000 Index 24.65 % 15.65 % 16.26 % Correlation coefficient (b) 0.11 0.14 0.19 Risk-free interest rate (c) 0.35 % 2.23 % 2.61 % Dividend yield (d) 0 % 0 % 0 % (a) Expected volatility is calculated over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years. (b) The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions. (c) The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year (d) We did not pay dividends in fiscal 2020, 2019, and 2018. |
Summary of Activity for Unvested RSUs and PSUs | A summary of activity for unvested RSUs and PSUs for fiscal years 2020, 2019, and 2018 is as follows: For the Year Ended April 30, 2020 2019 2018 Weighted Weighted Weighted Total # of Average Total # of Average Total # of Average Restricted Grant Date Restricted Grant Date Restricted Grant Stock Units Fair Value Stock Units Fair Value Stock Units Fair Value RSUs and PSUs outstanding, beginning of period 1,631,631 $ 15.44 1,442,317 $ 17.80 1,428,848 $ 18.58 Awarded 578,300 5.75 541,785 10.65 561,890 15.09 Vested (296,139 ) 17.05 (206,572 ) 19.11 (300,496 ) 16.53 Forfeited (599,818 ) 15.34 (145,899 ) 16.11 (247,925 ) 17.04 RSUs and PSUs outstanding, end of period 1,313,974 $ 10.86 1,631,631 $ 15.44 1,442,317 $ 17.80 |
Schedule of Assumptions used in Valuing ESPP Purchases | The following assumptions were used in valuing our ESPP purchases during the years ended April 30, 2020, 2019, and 2018: For the Years Ended April 30, 2020 2019 2018 Risk-free interest rate 1.24 % 2.21 % 1.62 % Expected term (a) 4 months 6 months 6 months Expected volatility (b) 63.6 % 45.3 % 42.3 % Dividend yield 0 % 0 % 0 % (a) We expect to have an abbreviated purchase period for the first half of fiscal 2021 because of our expected spin-off of our outdoor products and accessories business. (b) We believe our expected volatility increased in fiscal 2020 primarily due to market and stock price fluctuations as a result of the COVID-19 pandemic. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense/(Benefit) from Continuing Operations | Income tax expense/(benefit) from continuing operations consists of the following (in thousands): For the Year Ended April 30, 2020 2019 2018 Current: Federal $ 11,690 $ 8,999 $ 5,081 State 1,596 2,600 1,184 Foreign 4 5 — Total current 13,290 11,604 6,265 Deferred: Deferred federal (10,877 ) (879 ) (9,081 ) Deferred state (1,132 ) (397 ) 305 Total deferred (12,009 ) (1,276 ) (8,776 ) Total income tax expense/(benefit) $ 1,281 $ 10,328 $ (2,511 ) |
Reconciliation of Provision for Income Taxes from Continuing Operations | The following table presents a reconciliation of the provision for income taxes from continuing operations at statutory rates to the provision (benefit) in the consolidated financial statements (in thousands): For the Year Ended April 30, 2020 2019 2018 Federal income taxes expected at the statutory rate (a) $ (12,589 ) $ 6,035 $ 5,355 State income taxes, less federal income tax benefit 325 1,804 1,460 Stock compensation 1,163 708 (322 ) Business meals and entertainment 275 181 302 Domestic production activity deduction — — (335 ) Research and development tax credit (598 ) (567 ) (426 ) Goodwill impairment 11,925 2,183 — Non-deductible Separation expenses 688 — — Other 92 54 (403 ) Federal tax rate change on deferred taxes — (70 ) (8,142 ) Total income tax expense/(benefit) $ 1,281 $ 10,328 $ (2,511 ) (a) We had a statutory rate of 21% in fiscal 2020 and 2019 and a blended statutory rate of 30.4% in fiscal 2018 because of Tax Reform. |
Deferred Tax Assets (Liabilities) Related to Temporary Differences | Deferred tax assets (liabilities) related to temporary differences are the following (in thousands): For the Years Ended April 30, 2020 2019 Non-current tax assets (liabilities): Net operating loss carryforwards and tax credits $ 3,158 $ 3,256 Inventories 6,955 6,741 Accrued expenses, including compensation 5,095 5,800 Environmental reserves — 181 Product liability 434 360 Accrued promotions 69 73 Workers' compensation 512 478 Warranty reserve 1,065 1,525 Stock-based compensation 2,568 3,884 State bonus depreciation 1,328 1,454 Property taxes (254 ) (185 ) Property, plant, and equipment (17,512 ) (20,392 ) Intangible assets 1,275 (10,006 ) Right-of-use assets (2,086 ) — Right-of-use liabilities 2,458 — Pension 231 234 Other 286 397 Less valuation allowance (3,186 ) (3,576 ) Net deferred tax asset/(liability) — total $ 2,396 $ (9,776 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Operating Leases for Office and/or Manufacturing Space | The following summarizes our operating leases for office and/or manufacturing space: Location of Lease Expiration Date Springfield, Massachusetts November 30, 2020 Scottsdale, Arizona April 30, 2021 Somersworth, New Hampshire June 30, 2021 Shenzhen, China August 31, 2021 Houlton, Maine January 31, 2022 Wilsonville, Oregon October 31, 2022 Columbia, Missouri (1) April 30, 2023 Bentonville, Arkansas December 31, 2023 Deep River, Connecticut May 4, 2024 Park City , Utah August 31, 2024 Herstal, Belgium January 21, 2027 Meridian, Idaho (1) October 14, 2027 Columbia, Missouri November 25, 2038 (1) Properties are subleased. |
Quarterly Financial Informati_2
Quarterly Financial Information (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Results | The following table summarizes quarterly financial results in fiscal 2020 and 2019. In our opinion, all adjustments necessary to present fairly the information for such quarters have been reflected (in thousands, except per share data): For the Year Ended April 30, 2020 First Second Third Fourth Full Quarter Quarter Quarter Quarter Year Net sales $ 123,665 $ 154,388 $ 166,695 $ 233,642 $ 678,390 Gross profit 47,854 50,306 55,203 81,342 234,705 Net (loss)/income $ (2,108 ) $ 1,293 $ 5,731 $ (66,146 ) (b) $ (61,230 ) Per common share (a) Basic - total $ (0.04 ) $ 0.02 $ 0.10 $ (1.19 ) $ (1.11 ) Diluted - total $ (0.04 ) $ 0.02 $ 0.10 $ (1.19 ) $ (1.11 ) For the Year Ended April 30, 2019 First Second Third Fourth Full Quarter Quarter Quarter Quarter Year Net sales $ 138,833 $ 161,703 $ 162,008 $ 175,733 $ 638,277 Gross profit 52,422 56,386 54,059 63,364 226,231 Net income/(loss) $ 7,645 $ 6,665 $ (5,725 ) (c) $ 9,825 $ 18,410 Per common share (a) Basic – total $ 0.14 $ 0.12 $ (0.10 ) $ 0.18 $ 0.34 Diluted – total $ 0.14 $ 0.12 $ (0.10 ) $ 0.18 $ 0.33 (a) Basic and diluted earnings per share may not equal the sum of the quarterly basic and diluted earnings per share due to rounding. (b) Amounts includes a $98.7 million non-cash goodwill impairment relating to our Outdoor Products & Accessories segment. (c) Amounts includes a $10.4 million non-cash goodwill impairment relating to our Outdoor Products & Accessories segment. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Assets by Business Segment | Assets by business segment are presented in the following table as of April 30, 2020 and 2019 (in thousands): As of April 30, 2020 As of April 30, 2019 Firearms Outdoor Products Accessories Total Firearms Outdoor Products & Accessories Total Total assets $ 467,978 $ 260,983 $ 728,961 $ 389,719 $ 377,070 $ 766,789 Property, plant, and equipment, net 147,642 9,775 157,417 170,549 12,719 183,268 Intangibles, net 4,982 68,772 73,754 4,661 87,179 91,840 Goodwill 19,024 64,581 83,605 19,024 163,245 182,269 |
Schedule of Results by Business Segment | Results by business segment are presented in the following table for the years ended April 30, 2020, 2019, and 2018 (in thousands): For the Year Ended April 30, 2020 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 526,027 $ 152,363 $ — $ — $ 678,390 Intersegment revenue 3,587 15,110 — (18,697 ) — Total gross revenue 529,614 167,473 — (18,697 ) 678,390 Cost of sales 363,924 98,143 — (18,382 ) 443,685 Gross margin 165,690 69,330 — (315 ) 234,705 Operating income/(loss) 58,911 (111,337 ) (b) (43,780 ) 47,387 (48,819 ) Income tax expense/(benefit) 13,497 (7,890 ) (4,326 ) — 1,281 For the Year Ended April 30, 2019 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 478,477 $ 159,800 $ — $ — $ 638,277 Intersegment revenue 2,858 17,469 — (20,327 ) — Total gross revenue 481,335 177,269 — (20,327 ) 638,277 Cost of sales 335,051 97,143 — (20,148 ) 412,046 Gross margin 146,284 80,126 — (179 ) 226,231 Operating income/(loss) 59,663 (18,414 ) (c) (44,831 ) 41,638 38,056 Income tax expense/(benefit) 12,068 (966 ) (774 ) — 10,328 For the Year Ended April 30, 2018 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 448,986 $ 157,864 $ — $ — $ 606,850 Intersegment revenue 3,807 13,816 — (17,623 ) — Total net sales 452,793 171,680 — (17,623 ) 606,850 Cost of sales 332,889 (d) 93,822 — (15,613 ) 411,098 Gross margin 119,903 77,859 — (2,010 ) 195,752 Operating income/(loss) 30,213 (5,508 ) (44,128 ) 46,471 27,048 Income tax expense/(benefit) 16,729 (8,059 ) (11,181 ) — (2,511 ) (a) For the years ended April 30, 2020, 2019, and 2018, we allocated all of corporate overhead expenses except for interest and income taxes, (b) Amount includes a non-cash goodwill charge of $98.7 million. ( c ) Amount includes a non-cash goodwill charge of $10.4 million. ( d ) Amount includes $500,000 of additional cost of goods sold from the fair value inventory step-up related to our 2018 Acquisitions. |
Organization - Additional Infor
Organization - Additional Information (Detail) - Segment | 12 Months Ended | |
Apr. 30, 2020 | Nov. 13, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of reporting segments | 2 | |
American Outdoor Brands Inc. | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Stockholders ownership percentage | 100.00% | |
Firearms Segment | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of reporting segments | 1 | |
Outdoor Products & Accessories Segment | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of reporting segments | 1 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2019USD ($) | Aug. 31, 2017USD ($)Transaction | Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | |
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | $ 1,772,000 | $ 23,120,000 | |||
General and administrative | $ 97,985,000 | 107,650,000 | 101,538,000 | ||
Reduction in fair value of contingent liability | 100,000 | (60,000) | $ (1,640,000) | ||
P&L Industries Inc. | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | $ 2,000,000 | ||||
LaserLyte Acquisition | |||||
Business Acquisition [Line Items] | |||||
General and administrative | $ 28,000 | ||||
Gemini Technologies, Incorporated and Bubba Blade Branded Products from Fish Tales, LLC | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | $ 23,100,000 | ||||
Number of transactions for acquisition | Transaction | 2 | ||||
Gemini Technologies, Incorporated | |||||
Business Acquisition [Line Items] | |||||
Contingent consideration maximum payout | $ 17,100,000 | ||||
Business combination, contingent consideration payable performance period | 3 years | ||||
Reduction in fair value of contingent liability | (100,000) | ||||
Business combination contingent consideration liability | $ 0 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | Feb. 01, 2020USD ($) | Apr. 30, 2020USD ($)SegmentCustomer | Apr. 30, 2019USD ($)Customer | Apr. 30, 2018USD ($)Customer | May 01, 2019USD ($) |
Product Information [Line Items] | |||||
Maximum maturity period of all highly liquid investments to be considered cash equivalents | 3 months | ||||
Number of reporting segments | Segment | 2 | ||||
Goodwill | $ 83,605,000 | $ 182,269,000 | $ 191,287,000 | ||
Goodwill impairment | 98,662,000 | 10,396,000 | |||
Warranty expense | 1,600,000 | 2,900,000 | 5,800,000 | ||
Promotional programs amount | 47,500,000 | 39,200,000 | 58,200,000 | ||
Selling and marketing expenses | 26,300,000 | 23,800,000 | 23,300,000 | ||
Right-of-use assets recognition | 8,570,000 | ||||
Lease liabilities recognition | 10,151,000 | ||||
Self Insurance | |||||
Product Information [Line Items] | |||||
Maximum amount of self-insurance per occurrence | 10,000,000 | ||||
Cost of sales | |||||
Product Information [Line Items] | |||||
Costs in selling, marketing, and distribution expenses | 4,400,000 | ||||
Thompson/Center Arms | |||||
Product Information [Line Items] | |||||
Remaining cost related to recalls, safety alerts, and consumer advisories | $ 683,000 | ||||
Firearms Segment | |||||
Product Information [Line Items] | |||||
Number of reporting segments | Segment | 1 | ||||
Goodwill | $ 19,000,000 | $ 19,024,000 | 19,024,000 | 18,490,000 | |
Additional goodwill impairment | $ 0 | ||||
Outdoor Products & Accessories Segment | |||||
Product Information [Line Items] | |||||
Number of reporting segments | Segment | 1 | ||||
Goodwill | $ 163,200,000 | $ 64,581,000 | 163,245,000 | $ 172,797,000 | |
Additional goodwill impairment | 0 | ||||
Goodwill impairment | $ 98,662,000 | $ 10,396,000 | |||
Fair value in excess of carrying value of goodwill | 1.50% | ||||
ASU 2014-09 | |||||
Product Information [Line Items] | |||||
Description of payment terms | Our product sales are generally sold free on board, or FOB, shipping point and provide payment terms to most commercial customers ranging from 20 to 90 days of product shipment with a discount available to some customers for early payment. Generally, framework contracts define the general terms of sales, including payment terms, freight terms, insurance requirements, and cancelation provisions. Purchase orders define the terms for specific sales, including description, quantity, and price of each product purchased. We estimate variable consideration relative to the amount of cash discounts to which customers are likely to be entitled. In some instances, we provide longer payment terms, particularly as it relates to our hunting dating programs, which represent payment terms due in the fall for certain orders of hunting products received in the spring and summer. As a result of utilizing practical expedience upon the adoption of ASC 606, we do not consider these extended terms to be a significant financing component of the contract because the payment terms are less than one year. | ||||
ASU 2016-02 | |||||
Product Information [Line Items] | |||||
Right-of-use assets recognition | $ 11,500,000 | ||||
Lease liabilities recognition | 12,800,000 | ||||
Reclassification of deferred rent and lease incentive liabilities related to real estate operating leases | $ 1,300,000 | ||||
Other Capitalized Property Plant and Equipment | Maximum | |||||
Product Information [Line Items] | |||||
Estimated useful life | 10 years | ||||
Sales, net | Customer Concentration Risk | |||||
Product Information [Line Items] | |||||
Number of Customers Accounted for Net Sales. | Customer | 1 | 0 | 1 | ||
Sales, net | Customer Concentration Risk | Customer One | |||||
Product Information [Line Items] | |||||
Concentration of risk, percentage | 10.50% | 10.00% | 11.90% | ||
Accounts Receivable | Customer Concentration Risk | |||||
Product Information [Line Items] | |||||
Number of Customers Accounted for Accounts Receivable | Customer | 1 | 1 | 0 | ||
Accounts Receivable | Customer Concentration Risk | Customer One | |||||
Product Information [Line Items] | |||||
Concentration of risk, percentage | 10.00% | 19.80% | 10.00% | ||
Accounts Receivable | Customer Concentration Risk | Customer Two | |||||
Product Information [Line Items] | |||||
Concentration of risk, percentage | 10.00% | ||||
Accounts Receivable | Customer Concentration Risk | Customer Three | |||||
Product Information [Line Items] | |||||
Concentration of risk, percentage | 10.00% | ||||
Accounts Receivable | Customer Concentration Risk | Customer Four | |||||
Product Information [Line Items] | |||||
Concentration of risk, percentage | 10.00% | ||||
Accounts Receivable | Customer Concentration Risk | Customer Two And Three And Four | |||||
Product Information [Line Items] | |||||
Concentration of risk, percentage | 37.70% | ||||
Level 2 | |||||
Product Information [Line Items] | |||||
Fair value of financial instrument | $ 0 |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Estimated Useful Lives (Detail) | 12 Months Ended |
Apr. 30, 2020 | |
Building and improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 10 years |
Building and improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 40 years |
Software and hardware | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 2 years |
Software and hardware | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 7 years |
Machinery and equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 2 years |
Machinery and equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 10 years |
Significant Accounting Polici_6
Significant Accounting Policies - Reconciliation of Net (Loss)/Income Amounts and Weighted Average Number of Common and Common Equivalent Shares Used to Determine Basic and Diluted (Loss)/Earnings per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||
Net (loss) income | $ (66,146) | [1] | $ 5,731 | $ 1,293 | $ (2,108) | $ 9,825 | $ (5,725) | [2] | $ 6,665 | $ 7,645 | $ (61,230) | $ 18,410 | $ 20,128 | ||||||||
Basic (loss)/earnings, Shares | 54,983 | 54,483 | 54,061 | ||||||||||||||||||
Effect of dilutive stock awards, Shares | 733 | 773 | |||||||||||||||||||
Diluted (loss)/earnings, Shares | 54,983 | 55,216 | 54,834 | ||||||||||||||||||
Basic (loss)/earnings, Per Share Amount | $ (1.19) | [3] | $ 0.10 | [3] | $ 0.02 | [3] | $ (0.04) | [3] | $ 0.18 | [3] | $ (0.10) | [3] | $ 0.12 | [3] | $ 0.14 | [3] | $ (1.11) | [3] | $ 0.34 | [3] | $ 0.37 |
Effect of dilutive stock awards, Per Share Amount | (0.01) | ||||||||||||||||||||
Diluted | $ (1.19) | [3] | $ 0.10 | [3] | $ 0.02 | [3] | $ (0.04) | [3] | $ 0.18 | [3] | $ (0.10) | [3] | $ 0.12 | [3] | $ 0.14 | [3] | $ (1.11) | [3] | $ 0.33 | [3] | $ 0.37 |
[1] | Amounts includes a $98.7 million non-cash goodwill impairment relating to our Outdoor Products & Accessories segment. | ||||||||||||||||||||
[2] | Amounts includes a $10.4 million non-cash goodwill impairment relating to our Outdoor Products & Accessories segment. | ||||||||||||||||||||
[3] | Basic and diluted earnings per share may not equal the sum of the quarterly basic and diluted earnings per share due to rounding. |
Significant Accounting Polici_7
Significant Accounting Policies - Change in Accrued Warranties Recorded as Non-Current Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Accounting Policies [Abstract] | ||
Beginning Balance | $ 6,202 | $ 7,513 |
Warranties issued and adjustments to provisions | 1,570 | 2,852 |
Warranty claims | (3,536) | (4,163) |
Ending Balance | $ 4,236 | $ 6,202 |
Leases - Schedule of Assets and
Leases - Schedule of Assets and Liabilities Related to Operating and Financing Leases (Detail) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Operating Leases | ||
Right-of-use assets | $ 10,802 | |
Accumulated amortization | (2,232) | |
Right-of-use assets, net | $ 8,570 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | |
Current liabilities | $ 2,663 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | swbi:AccruedExpensesAndDeferredRevenueCurrent | |
Non-current liabilities | $ 7,488 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | |
Total operating lease liabilities | $ 10,151 | |
Finance Leases | ||
Right-of-use assets | 40,986 | $ 46,246 |
Accumulated depreciation | (2,098) | |
Right-of-use assets, net | $ 38,888 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | swbi:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | |
Current liabilities | $ 996 | 681 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | swbi:AccruedExpensesAndDeferredRevenueCurrent | |
Non-current liabilities | $ 39,873 | $ 45,400 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:FinanceLeaseLiabilityNoncurrent | |
Total finance lease liabilities | $ 40,869 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 12 Months Ended |
Apr. 30, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 4.3 |
Short-term operating lease costs | 1.1 |
Financing lease Amortization | 2.1 |
Financing lease interest expense | $ 2.1 |
Operating leases, weighted average lease term | 4 years |
Operating leases, weighted average discount rate | 4.50% |
Financing leases, weighted average lease term | 18 years 6 months |
Financing leases, weighted average discount rate | 5.00% |
Cash paid for amounts included in measurement of liabilities and operating cash flows | $ 6 |
Leases - Summary of Future Leas
Leases - Summary of Future Lease Payments for Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Operating and Finance Lease liabilities payments | ||
2021 | $ 6,190 | |
2022 | 6,014 | |
2023 | 5,840 | |
2024 | 4,847 | |
2025 | 3,510 | |
Thereafter | 49,532 | |
Total future lease payments | 75,933 | |
Less amounts representing interest | (24,844) | |
Present value of lease payments | 51,089 | |
Less current maturities of lease liabilities | (3,659) | |
Long-term maturities of lease liabilities | 47,430 | |
Operating Leases | ||
2021 | 3,174 | |
2022 | 2,958 | |
2023 | 2,769 | |
2024 | 1,722 | |
2025 | 330 | |
Thereafter | 679 | |
Total future lease payments | 11,632 | |
Less amounts representing interest | (1,481) | |
Total operating lease liabilities | 10,151 | |
Less current maturities of lease liabilities | (2,663) | |
Long-term maturities of lease liabilities | 7,488 | |
Financing Leases | ||
2021 | 3,016 | |
2022 | 3,056 | |
2023 | 3,071 | |
2024 | 3,125 | |
2025 | 3,180 | |
Thereafter | 48,784 | |
Total future lease payments | 64,232 | |
Less amounts representing interest | (23,363) | |
Total finance lease liabilities | 40,869 | |
Less current maturities of lease liabilities | (996) | $ (681) |
Non-current liabilities | $ 39,873 | $ 45,400 |
Revenue Recognition and Contr_3
Revenue Recognition and Contracts with Customers - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | May 01, 2018 | Apr. 30, 2020 | Apr. 30, 2019 |
Disaggregation Of Revenue [Line Items] | |||
Deferred revenue recognized | $ 22,200 | $ 48,600 | $ 10,500 |
Additional deferred revenue for outstanding performance obligations | 50,400 | ||
Revenue deferred, net of revenue recognized | 11,100 | ||
Outstanding performance obligation liability | 12,200 | ||
Net increase (decrease) of revenue | (1,800) | 11,100 | |
ASU 2014-09 | |||
Disaggregation Of Revenue [Line Items] | |||
Deferred revenue recognized | 48,576 | 51,213 | |
Additional deferred revenue for outstanding performance obligations | $ 50,406 | $ 40,121 | |
ASU 2014-09 | Accounting Standard Adjustments | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of unfavorable impact on gross margin | 4.00% | ||
Increase in earnings per share basic | $ 0.03 | ||
Increase in earnings per share diluted | $ 0.03 | ||
Total Net Sales | ASU 2014-09 | Geographic Concentration Risk | Domestic | |||
Disaggregation Of Revenue [Line Items] | |||
Concentration risk percentage | 95.00% |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Schedule of Impact of Adoption of ASU 2014-09 on Revenue Recognized (Detail) - USD ($) $ in Thousands | May 01, 2018 | Apr. 30, 2020 | Apr. 30, 2019 |
Disaggregation Of Revenue [Line Items] | |||
Revenue recognized | $ (22,200) | $ (48,600) | $ (10,500) |
Revenue deferred | 50,400 | ||
ASU 2014-09 | |||
Disaggregation Of Revenue [Line Items] | |||
Outstanding performance obligations at beginning of period | $ 23,305 | 12,213 | 23,305 |
Revenue recognized | (48,576) | (51,213) | |
Revenue deferred | 50,406 | 40,121 | |
Outstanding performance obligations at end of period | $ 14,043 | $ 12,213 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Goodwill [Line Items] | ||
Beginning Balance | $ 182,269 | $ 191,287 |
Adjustments | (2) | 534 |
Acquisitions | 844 | |
Goodwill impairment | (98,662) | (10,396) |
Ending Balance | 83,605 | 182,269 |
Firearms Segment | ||
Goodwill [Line Items] | ||
Beginning Balance | 19,024 | 18,490 |
Adjustments | 534 | |
Ending Balance | 19,024 | 19,024 |
Outdoor Products & Accessories Segment | ||
Goodwill [Line Items] | ||
Beginning Balance | 163,245 | 172,797 |
Adjustments | (2) | |
Acquisitions | 844 | |
Goodwill impairment | (98,662) | (10,396) |
Ending Balance | $ 64,581 | $ 163,245 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | $ 19,500,000 | $ 22,000,000 | $ 21,000,000 |
Weighted-average period for amortization of intangible assets | 5 years | ||
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 | ||
Outdoor Products & Accessories Segment | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Accumulated impairment loss | $ 109,100,000 | $ 109,100,000 | |
Firearms Segment | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Accumulated impairment loss | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | $ 174,480 | $ 173,314 |
Total definite-lived intangible assets, Accumulated Amortization | (101,156) | (81,700) |
Total definite-lived intangible assets, Net Carrying Amount | 73,324 | 91,614 |
Indefinite-lived intangible assets, Net Carrying Amount | 430 | 226 |
Total Intangible assets, Gross Carrying Amount | 174,910 | 173,540 |
Total Intangible assets, Net Carrying Amount | 73,754 | 91,840 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 92,560 | 92,560 |
Total definite-lived intangible assets, Accumulated Amortization | (52,981) | (41,643) |
Total definite-lived intangible assets, Net Carrying Amount | 39,579 | 50,917 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 21,788 | 21,230 |
Total definite-lived intangible assets, Accumulated Amortization | (12,705) | (10,428) |
Total definite-lived intangible assets, Net Carrying Amount | 9,083 | 10,802 |
Patents, trademarks, and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 57,837 | 57,477 |
Total definite-lived intangible assets, Accumulated Amortization | (34,320) | (28,479) |
Total definite-lived intangible assets, Net Carrying Amount | 23,517 | 28,998 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 1,150 | 1,150 |
Total definite-lived intangible assets, Accumulated Amortization | (1,150) | (1,150) |
Definite-lived intangible assets excluding patents in progress | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 173,335 | 172,417 |
Total definite-lived intangible assets, Accumulated Amortization | (101,156) | (81,700) |
Total definite-lived intangible assets, Net Carrying Amount | 72,179 | 90,717 |
Patents in progress | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 1,145 | 897 |
Total definite-lived intangible assets, Net Carrying Amount | $ 1,145 | $ 897 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Future Expected Amortization Expense (Detail) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Net Carrying Amount | $ 73,324 | $ 91,614 |
Outdoor Products & Accessories Segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
2021 | 16,798 | |
2022 | 14,412 | |
2023 | 11,857 | |
2024 | 10,109 | |
2025 | 6,456 | |
Thereafter | 12,547 | |
Total definite-lived intangible assets, Net Carrying Amount | $ 72,179 |
Notes and Loans Payable and F_2
Notes and Loans Payable and Financing Arrangements - Additional Information (Detail) - USD ($) | Jan. 06, 2020 | Nov. 19, 2019 | Mar. 08, 2018 | Oct. 27, 2016 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | Nov. 22, 2019 | Feb. 28, 2018 | Jul. 06, 2015 | Jun. 18, 2015 | Jun. 15, 2015 | Apr. 30, 2015 |
Debt Instrument [Line Items] | |||||||||||||
Credit facility, maturity | Jun. 15, 2020 | ||||||||||||
Interest description of revolving line of credit | The Revolving Line provides for availability 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 asset | $ 710,000 | $ 2,100,000 | |||||||||||
Amortization to interest expense for all debt issuance costs | $ 687,000 | 431,000 | 1,100,000 | ||||||||||
Notes payable | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance cost | 875,000 | $ 0 | 158,000 | ||||||||||
Interest Rate Swap | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Percentage of floating rate debt covered | 100.00% | ||||||||||||
Derivative, notional amount | $ 105,000,000 | ||||||||||||
Derivative, fixed interest rate | 1.56% | ||||||||||||
Gain on termination of interest rate swap | $ 40,000 | ||||||||||||
Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding debt | $ 105,000,000 | ||||||||||||
5.000% Senior Notes due 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance cost | $ 2,300,000 | ||||||||||||
Notes issued | $ 75,000,000 | ||||||||||||
Debt instrument, interest rate | 5.00% | ||||||||||||
Debt instrument, redemption date | Mar. 8, 2018 | ||||||||||||
Debt issuance write-off costs | $ 226,000 | ||||||||||||
5.000% Senior Notes due 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance cost | $ 158,000 | ||||||||||||
Notes issued | $ 75,000,000 | ||||||||||||
Debt instrument, interest rate | 5.00% | ||||||||||||
Debt issuance write-off costs | $ 42,000 | ||||||||||||
Description of redemption for senior notes | On January 6, 2020, or the Redemption Date, we redeemed 100% of the principal amount of the 2020 Senior Notes, plus accrued and unpaid interest to, but not including, the Redemption Date, with proceeds from the Revolving Line. As part of the redemption, we wrote off $42,000 of debt issuance costs related to the 2020 Senior Notes. | ||||||||||||
Debt instrument redemption date | Jan. 6, 2020 | ||||||||||||
Redemption price of senior notes | 100.00% | ||||||||||||
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 | $ 160,000,000 | ||||||||||||
Outstanding letters of credit | 2,200,000 | ||||||||||||
Credit Facilities | Self Insurance | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding letters of credit | $ 1,500,000 | ||||||||||||
Credit Facilities | LIBOR Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate on borrowings | 2.95% | ||||||||||||
Second Amendment | Unsecured Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility, borrowing capacity | $ 350,000,000 | ||||||||||||
Credit facility additional borrowing capacity option to increase maximum borrowing capacity | $ 150,000,000 | ||||||||||||
Credit facility, maturity | Oct. 27, 2021 | ||||||||||||
Fifth Amendment | Unsecured Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility, borrowing capacity | $ 250,000,000 | ||||||||||||
Credit facility additional borrowing capacity option to increase maximum borrowing capacity | (50,000,000) | ||||||||||||
Debt issuance cost | $ 875,000 |
Net Sales - Breakdown of Net sa
Net Sales - Breakdown of Net sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||||||
Total Net Sales | $ 233,642 | $ 166,695 | $ 154,388 | $ 123,665 | $ 175,733 | $ 162,008 | $ 161,703 | $ 138,833 | $ 678,390 | [1] | $ 638,277 | [1] | $ 606,850 | [1] | |
Firearms Segment | |||||||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||||||
Total Net Sales | [1] | 526,027 | 478,477 | 448,986 | |||||||||||
Firearms Segment | Handguns | |||||||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||||||
Total Net Sales | 390,712 | 336,901 | 326,290 | ||||||||||||
Firearms Segment | Long Guns | |||||||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||||||
Total Net Sales | 101,540 | 107,717 | 90,222 | ||||||||||||
Firearms Segment | Other products and services | |||||||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||||||
Total Net Sales | 33,775 | 33,859 | 32,474 | ||||||||||||
Outdoor Products & Accessories Segment | |||||||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||||||
Total Net Sales | [1] | $ 152,363 | $ 159,800 | $ 157,864 | |||||||||||
[1] | For the years ended April 30, 2020, 2019, and 2018, we allocated all of corporate overhead expenses except for interest and income taxes, |
Net Sales - Additional Informat
Net Sales - Additional Information (Detail) | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Disclosure Net Sales [Abstract] | |||
Export sales as percentage of revenue | 4.00% | 5.00% | 5.00% |
Net Sales - Breakdown of Export
Net Sales - Breakdown of Export Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |||||
Concentration Risk [Line Items] | |||||||||||||||
Net sales | $ 233,642 | $ 166,695 | $ 154,388 | $ 123,665 | $ 175,733 | $ 162,008 | $ 161,703 | $ 138,833 | $ 678,390 | [1] | $ 638,277 | [1] | $ 606,850 | [1] | |
Europe | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Net sales | 8,443 | 11,860 | 9,586 | ||||||||||||
Asia | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Net sales | 6,247 | 3,866 | 4,725 | ||||||||||||
Latin America | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Net sales | 2,411 | 3,268 | 2,038 | ||||||||||||
All others international | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Net sales | 9,086 | 14,030 | 12,388 | ||||||||||||
Total International | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Net sales | [2] | $ 26,187 | $ 33,024 | $ 28,737 | |||||||||||
[1] | For the years ended April 30, 2020, 2019, and 2018, we allocated all of corporate overhead expenses except for interest and income taxes, | ||||||||||||||
[2] | Our international sales were negatively impacted in our fourth fiscal quarter as a result of COVID-19 pandemic. |
Advertising Costs - Additional
Advertising Costs - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Selling and Marketing Expense | |||
Advertising Costs [Line Items] | |||
Advertising expense for continuing operations | $ 28.1 | $ 24.3 | $ 25.8 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Summary of Property, Plant, and Equipment (Detail) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Property Plant And Equipment [Abstract] | ||
Machinery and equipment | $ 279,005 | $ 270,815 |
Software and hardware | 50,671 | 47,587 |
Building and improvements | 36,186 | 34,584 |
Land and improvements | 3,787 | 3,787 |
Right-of-use assets | 40,986 | 46,246 |
Property plant and equipment gross | 410,635 | 403,019 |
Less: Accumulated depreciation and amortization | (260,475) | (228,306) |
Property plant and equipment before construction in progress | 150,160 | 174,713 |
Construction in progress | 7,257 | 8,555 |
Total property, plant, and equipment, net | $ 157,417 | $ 183,268 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense | $ 54,058 | $ 53,859 | $ 52,075 |
Software | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense | $ 33,900 | $ 31,400 | $ 30,000 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment - Summary of Depreciation and Amortization Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Depreciation and Other Amortization Expenses [Line Items] | ||||
Depreciation and amortization | $ 54,058 | $ 53,859 | $ 52,075 | |
Cost of sales | ||||
Depreciation and Other Amortization Expenses [Line Items] | ||||
Depreciation and amortization | 24,217 | 23,797 | 24,582 | |
Research and development | ||||
Depreciation and Other Amortization Expenses [Line Items] | ||||
Depreciation and amortization | 659 | 625 | 557 | |
Selling and marketing | ||||
Depreciation and Other Amortization Expenses [Line Items] | ||||
Depreciation and amortization | 456 | 530 | 619 | |
General and administrative | ||||
Depreciation and Other Amortization Expenses [Line Items] | ||||
Depreciation and amortization | [1] | 28,039 | 28,476 | 25,212 |
Interest expense | ||||
Depreciation and Other Amortization Expenses [Line Items] | ||||
Depreciation and amortization | $ 687 | $ 431 | $ 1,105 | |
[1] | General and administrative expenses included $19.0 million, $21.8 million, and $20.8 million of amortization for the fiscal years ended April 30, 2020, 2019, and 2018, respectively, which were recorded as a result of our acquisitions. |
Property, Plant, and Equipmen_5
Property, Plant, and Equipment - Summary of Depreciation and Amortization Expense (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Property Plant And Equipment [Abstract] | |||
Amortization expenses recorded as a result of acquisition | $ 19 | $ 21.8 | $ 20.8 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 111,169 | $ 108,247 |
Finished parts | 32,721 | 36,181 |
Work in process | 7,037 | 7,576 |
Raw material | 13,264 | 11,766 |
Total inventories | $ 164,191 | $ 163,770 |
Accrued Expenses and Deferred_3
Accrued Expenses and Deferred Revenue - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Payables And Accruals [Abstract] | ||
Accrued taxes other than income | $ 21,461 | $ 6,078 |
Deferred revenue | 14,744 | 12,213 |
Accrued rebates and promotions | 5,189 | 4,877 |
Accrued employee benefits | 4,705 | 5,241 |
Accrued professional fees | 4,058 | 2,649 |
Right-of-use lease liabilities | 2,663 | |
Accrued distributor incentives | 2,253 | 1,895 |
Accrued commissions | 967 | 1,004 |
Interest payable | 349 | 737 |
Current portion of capital lease obligation | 996 | 681 |
Accrued other | 7,217 | 3,947 |
Total accrued expenses and deferred revenue | $ 64,602 | $ 39,322 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
(Level 1) | Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 125,400,000 | $ 41,000,000 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | |
Financial liabilities | 0 | |
(Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | |
Financial liabilities | $ 0 |
Self-Insurance Reserves - Addit
Self-Insurance Reserves - Additional Information (Detail) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 |
Commitments And Contingencies Disclosure [Abstract] | ||||
Reserves for workers' compensation, product liability, municipal liability, and medical/dental costs | $ 9,413,000 | $ 8,859,000 | $ 9,173,000 | $ 8,663,000 |
Reserves for workers' compensation, product liability, municipal liability, and medical/dental costs, Non-current portion | 4,600,000 | 4,800,000 | ||
Reserves for workers' compensation, product liability, municipal liability, and medical/dental costs, included in accrued expenses | 3,700,000 | 3,600,000 | ||
Workers' compensation receivable classified as an other assets | 620,000 | 620,000 | ||
Accrued reserves for product and municipal litigation liabilities | 3,600,000 | 3,300,000 | ||
Accrued reserves for product and municipal litigation liabilities, Non-current portion | 2,600,000 | 2,800,000 | ||
Receivables from insurance carriers, included in other assets | $ 1,900,000 | $ 1,900,000 |
Self-Insurance Reserves - Summa
Self-Insurance Reserves - Summary of Other Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Beginning balance | $ 8,859 | $ 9,173 | $ 8,663 |
Additional provision charged to expense | 21,317 | 21,602 | 22,802 |
Payments | (20,763) | (21,916) | (22,292) |
Ending balance | $ 9,413 | $ 8,859 | $ 9,173 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 12 Months Ended | ||||
Apr. 30, 2020USD ($)OptionPlanshares | Apr. 30, 2019USD ($)shares | Apr. 30, 2018USD ($)shares | Sep. 23, 2013shares | Sep. 26, 2011shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Repurchase of common stock | 0 | 0 | 0 | ||
Number of stock incentive plans | OptionPlan | 2 | ||||
Intrinsic value of stock outstanding | $ | $ 356,000 | $ 826,000 | $ 1,400,000 | ||
Intrinsic value of stock exercisable | $ | 356,000 | 826,000 | 1,400,000 | ||
Intrinsic value of stock exercised | $ | 260,000 | 285,000 | 116,000 | ||
Unrecognized compensation cost of outstanding options | $ | $ 0 | ||||
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% | ||||
Stock-based compensation expense | $ | $ 2,921,000 | 7,992,000 | 7,815,000 | ||
Grant date fair value of vested RSUs and PSUs | $ | $ 5,000,000 | $ 3,900,000 | $ 5,000,000 | ||
2011 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option exercise price per share as a percentage of fair market value | 85.00% | ||||
Number of shares an employee may purchase under the stock purchase plan | 12,500 | ||||
Fair market value of shares an employee may purchase under the stock purchase plan | $ | $ 25,000 | ||||
Shares issued under employee stock purchase plan | 380,209 | 230,282 | 203,002 | ||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period | 3 years | ||||
Stock units, awarded | 105,000 | ||||
Stock units, forfeited | 367,025 | 112,000 | 39,429 | ||
Share based payment award percentage of award achieved | 115.20% | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 440,483 | 360,185 | 388,186 | ||
Stock units, forfeited | 232,793 | 33,899 | 208,496 | ||
Grant date fair value of vested RSUs and PSUs | $ | $ 2,600,000 | $ 2,500,000 | |||
RSUs and PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 578,300 | 541,785 | 561,890 | ||
Stock units, forfeited | 599,818 | 145,899 | 247,925 | ||
Stock units, vested | 296,139 | 206,572 | 300,496 | ||
Grant date fair value of vested RSUs and PSUs | $ | $ 6,200,000 | ||||
Unrecognized compensation expense related to unvested RSUs and PSUs | $ | $ 3,300,000 | ||||
Weighted average remaining contractual term | 1 year 8 months 12 days | ||||
Executive Officer | PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 105,767 | 181,600 | 157,700 | ||
Stock units, vested | 121,504 | ||||
Executive Officer | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 113,770 | 167,818 | 159,167 | ||
Non-Executive Employees | PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 32,050 | ||||
Non-Executive Employees | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 211,073 | 142,858 | 176,193 | ||
Director | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 115,600 | 49,509 | 52,826 | ||
Employees And Consultants | RSUs and PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ | $ 2,300,000 | $ 7,300,000 | $ 7,100,000 | ||
Employees | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, vested | 296,139 | 206,572 | |||
Employees | RSUs and PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, vested | 300,496 | ||||
2013 Incentive Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized of common stock | 3,000,000 | ||||
Vesting period | 4 years | ||||
Stock option, exercisable period | 10 years | ||||
Shares available for grant under incentive stock option | 4,137,967 | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase authorization | $ | $ 0 | ||||
Payroll deduction of participant's compensation | 20.00% | ||||
Maximum | 2011 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved under employee stock purchase plan | 6,000,000 | ||||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payroll deduction of participant's compensation | 1.00% |
Stockholders' Equity - Share Ba
Stockholders' Equity - Share Based Compensation Stock Options Activity (Detail) - $ / shares | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Shares | |||
Options outstanding, beginning of year, Shares | 267,761 | 316,160 | 335,160 |
Exercised during the period, Shares | (67,094) | (48,399) | (19,000) |
Options outstanding, end of period, Shares | 200,667 | 267,761 | 316,160 |
Weighted average remaining contractual life | 5 months 4 days | 2 years 4 months 6 days | 3 years 1 month 28 days |
Options exercisable, end of period, Shares | 200,667 | 267,761 | 316,160 |
Weighted average remaining contractual life | 5 months 4 days | 2 years 4 months 6 days | 3 years 1 month 28 days |
Weighted-Average Exercise Price | |||
Options outstanding, beginning of year, Weighted-Average Exercise Price | $ 6.76 | $ 6.69 | $ 6.58 |
Exercised during period, Weighted-Average Exercise Price | 3.97 | 6.28 | 4.70 |
Options outstanding, end of period, Weighted-Average Exercise Price | 7.70 | 6.76 | 6.69 |
Options exercisable, end of period, Weighted-Average Exercise Price | $ 7.70 | $ 6.76 | $ 6.69 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2,921 | $ 7,992 | $ 7,815 | |
Cost of sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 704 | 746 | 882 | |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 121 | 99 | 187 | |
Selling and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 340 | 489 | 382 | |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,756 | [1] | $ 6,658 | $ 6,364 |
[1] | The decrease in general and administrative stock-based compensation expense from fiscal 2019 was because of the separation of our former President and Chief Executive Officer. |
Stockholders' Equity - Share _2
Stockholders' Equity - Share Based Payment Award Performance Shares Valuation Assumptions (Detail) - PSUs | 12 Months Ended | |||
Apr. 30, 2020CorrelationCoefficient$ / shares | Apr. 30, 2019CorrelationCoefficient$ / shares | Apr. 30, 2018CorrelationCoefficient$ / shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Correlation coefficient | CorrelationCoefficient | [1] | 0.11 | 0.14 | 0.19 |
Risk-free interest rate | [2] | 0.35% | 2.23% | 2.61% |
Dividend yield | [3] | 0.00% | 0.00% | 0.00% |
Smith & Wesson Brands, Inc. | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair market value | $ 7.80 | $ 9.85 | $ 11.11 | |
Volatility | [4] | 54.02% | 45.19% | 42.27% |
Russell 2000 Index | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair market value | $ 1,138.78 | $ 1,591.21 | $ 1,557.89 | |
Volatility | [4] | 24.65% | 15.65% | 16.26% |
[1] | The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions. | |||
[2] | The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year | |||
[3] | We did not pay dividends in fiscal 2020, 2019, and 2018. | |||
[4] | Expected volatility is calculated over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years. |
Stockholders' Equity - Share _3
Stockholders' Equity - Share Based Payment Award Performance Shares Valuation Assumptions (Parenthetical) (Detail) | 12 Months Ended |
Apr. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance based restricted stock unit performance period | 3 years |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance based restricted stock unit performance period | 3 years |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Activity for Unvested RSUs and PSUs (Detail) - RSUs and PSUs - $ / shares | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Summary of activity in unvested restricted stock units and performance share units | |||
Restricted Stock Units, RSUs and PSUs outstanding, beginning of period | 1,631,631 | 1,442,317 | 1,428,848 |
Restricted Stock Units, Awarded | 578,300 | 541,785 | 561,890 |
Restricted Stock Units, Vested | (296,139) | (206,572) | (300,496) |
Restricted Stock Units, Forfeited | (599,818) | (145,899) | (247,925) |
Restricted Stock Units, RSUs and PSUs outstanding, end of period | 1,313,974 | 1,631,631 | 1,442,317 |
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 period | $ 15.44 | $ 17.80 | $ 18.58 |
Weighted Average Grant Date Fair Value, Awarded | 5.75 | 10.65 | 15.09 |
Weighted Average Grant Date Fair Value, Vested | 17.05 | 19.11 | 16.53 |
Weighted Average Grant Date Fair Value, Forfeited | 15.34 | 16.11 | 17.04 |
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, end of period | $ 10.86 | $ 15.44 | $ 17.80 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Assumptions used in Valuing ESPP Purchases (Detail) - Employee Stock Purchase Plan | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate | 1.24% | 2.21% | 1.62% | |
Expected term | [1] | 4 months | 6 months | 6 months |
Expected volatility | [2] | 63.60% | 45.30% | 42.30% |
Dividend yield | 0.00% | 0.00% | 0.00% | |
[1] | We expect to have an abbreviated purchase period for the first half of fiscal 2021 because of our expected spin-off of our outdoor products and accessories business. | |||
[2] | We believe our expected volatility increased in fiscal 2020 primarily due to market and stock price fluctuations as a result of the COVID-19 pandemic. |
Employer Sponsored Benefit Pl_2
Employer Sponsored Benefit Plans - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020USD ($)InvestmentPlan | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | |
Contributory Defined Investment Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Number of contributory defined investment plan | InvestmentPlan | 2 | ||
Defined contribution plan, employee contribution percentage | 100.00% | ||
Defined contribution plan, matching contribution percentage | 6.00% | ||
Deferred compensation plan description | We offer two contributory defined investment plans covering substantially all employees, subject to service requirements. Employees may contribute up to 100% of their annual pay, depending on the plan. We generally make discretionary matching contributions of up to 50% of the first 6% of employee contributions to the plan. | ||
Employer contribution to defined benefit plan | $ 2.5 | $ 2.9 | $ 3 |
Contributory Defined Investment Plan | Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, matching contribution percentage of match | 50.00% | ||
Non-Contributory Profit Sharing Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan service period | 1 year | ||
Employer contribution to defined benefit plan | $ 2.8 | $ 1.3 | |
Defined contribution plan expected contribution | $ 2.4 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense/(Benefit) from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Current: | ||||
Federal | $ 11,690 | $ 8,999 | $ 5,081 | |
State | 1,596 | 2,600 | 1,184 | |
Foreign | 4 | 5 | ||
Total current | 13,290 | 11,604 | 6,265 | |
Deferred: | ||||
Deferred federal | (10,877) | (879) | (9,081) | |
Deferred state | (1,132) | (397) | 305 | |
Total deferred | (12,009) | (1,276) | (8,776) | |
Total income tax expense/(benefit) | [1] | $ 1,281 | $ 10,328 | $ (2,511) |
[1] | For the years ended April 30, 2020, 2019, and 2018, we allocated all of corporate overhead expenses except for interest and income taxes, |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Income Tax Disclosure [Abstract] | ||||
Federal income taxes expected at the statutory rate | [1] | $ (12,589) | $ 6,035 | $ 5,355 |
State income taxes, less federal income tax benefit | 325 | 1,804 | 1,460 | |
Stock compensation | 1,163 | 708 | (322) | |
Business meals and entertainment | 275 | 181 | 302 | |
Domestic production activity deduction | (335) | |||
Research and development tax credit | (598) | (567) | (426) | |
Goodwill impairment | 11,925 | 2,183 | ||
Non-deductible Separation expenses | 688 | |||
Other | 92 | 54 | (403) | |
Federal tax rate change on deferred taxes | (70) | (8,142) | ||
Total income tax expense/(benefit) | [2] | $ 1,281 | $ 10,328 | $ (2,511) |
[1] | We had a statutory rate of 21% in fiscal 2020 and 2019 and a blended statutory rate of 30.4% in fiscal 2018 because of Tax Reform. | |||
[2] | For the years ended April 30, 2020, 2019, and 2018, we allocated all of corporate overhead expenses except for interest and income taxes, |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Provision for Income Taxes from Continuing Operations (Parenthetical) (Detail) | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes, expected statutory rate | 21.00% | 21.00% | 30.40% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) Related to Temporary Differences (Detail) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Deferred tax assets (liabilities): | ||
Less valuation allowance | $ (29,000) | |
Net deferred tax assets | 2,396,000 | |
Net deferred tax (liability) | $ (9,776,000) | |
Non Current | ||
Deferred tax assets (liabilities): | ||
Net operating loss carryforwards and tax credits | 3,158,000 | 3,256,000 |
Inventories | 6,955,000 | 6,741,000 |
Accrued expenses, including compensation | 5,095,000 | 5,800,000 |
Environmental reserves | 181,000 | |
Product liability | 434,000 | 360,000 |
Accrued promotions | 69,000 | 73,000 |
Workers' compensation | 512,000 | 478,000 |
Warranty reserve | 1,065,000 | 1,525,000 |
Stock-based compensation | 2,568,000 | 3,884,000 |
State bonus depreciation | 1,328,000 | 1,454,000 |
Property taxes | (254,000) | (185,000) |
Property, plant, and equipment | (17,512,000) | (20,392,000) |
Intangible assets | 1,275,000 | (10,006,000) |
Right-of-use assets | (2,086,000) | |
Right-of-use liabilities | 2,458,000 | |
Pension | 231,000 | 234,000 |
Other | 286,000 | 397,000 |
Less valuation allowance | $ (3,186,000) | $ (3,576,000) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Dec. 22, 2017 | Apr. 30, 2020 | Apr. 30, 2019 |
Income Tax Contingency [Line Items] | |||
Additional valuation allowance deferred income tax assets | $ 29,000 | ||
Tax reform, accounting complete | false | ||
Tax reform, measurement period from enactment date | 1 year | ||
Effective income tax rate, provisions (benefit) | (2.10%) | 35.90% | |
Undistributed earnings of foreign subsidiary | $ 84,000,000 | ||
Gross tax-effected unrecognized tax benefits | 0 | $ 0 | |
Federal | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 0 | ||
State | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 17,700,000 | 17,900,000 | |
Tax credit carryforwards | 2,900,000 | 2,900,000 | |
Valuation allowances for net operating loss carryforward | 904,000 | 911,000 | |
Valuation allowances for tax credits | $ 2,300,000 | $ 2,300,000 | |
State | Minimum | |||
Income Tax Contingency [Line Items] | |||
Operating loss carry forwards expiration dates | Apr. 30, 2025 | ||
State tax credit carryforwards expire date | Apr. 30, 2023 | ||
State | Maximum | |||
Income Tax Contingency [Line Items] | |||
Operating loss carry forwards expiration dates | Apr. 30, 2038 | ||
State tax credit carryforwards expire date | Apr. 30, 2025 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2018USD ($) | Apr. 30, 2020USD ($)CaseClaimPlaintiff | Apr. 30, 2020CAD ($)CaseClaimPlaintiff | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | |
Schedule Of Commitments And Contingencies [Line Items] | |||||
Number of Product liability cases | Case | 7 | 7 | |||
Number of Other product liability claims | Claim | 5 | 5 | |||
Defense and administrative costs | $ 584,000 | $ 322,000 | $ 473,000 | ||
Settlement fees related to product liability cases | 3,000 | 180,000 | 129,000 | ||
Expense related to changes in product liability and municipal litigation liability | 892,000 | 293,000 | $ 540,000 | ||
Environmental reserve in non-current liabilities | 0 | $ 725,000 | |||
Minimum | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Compensatory damages sought | 75,000 | ||||
Maximum | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Compensatory damages sought | 50,000,000 | ||||
Compensatory or Punitive Damages | Maximum | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Aggregate damages claims | $ 100,000,000 | ||||
Putative Class | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Date of actions filed | December 16, 2019 | December 16, 2019 | |||
Number of plaintiffs | Plaintiff | 2 | 2 | |||
Putative Class | General Damages | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Aggregate damages claims | $ 50 | ||||
Putative Class | Compensatory or Punitive Damages | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Aggregate damages claims | $ 100 | ||||
John Pidcock | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Number of plaintiffs | Plaintiff | 3 | 3 | |||
John Pidcock | Preferential Transfers | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Compensatory damages sought | $ 4,200,000 | ||||
John Pidcock | Turnover of Goods | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Compensatory damages sought | $ 1,500,000 | ||||
Gemini Technologies, Incorporated | Smith & Wesson Corp | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Compensatory damages sought | $ 18,600,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Operating Leases for Office and/or Manufacturing Space (Detail) | 12 Months Ended |
Apr. 30, 2020 | |
Springfield, Massachusetts | November 30, 2020 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Lease Expiration Date | Nov. 30, 2020 |
Scottsdale, Arizona | April 30, 2021 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Lease Expiration Date | Apr. 30, 2021 |
Somersworth, New Hampshire | June 30, 2021 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Lease Expiration Date | Jun. 30, 2021 |
Shenzhen, China | August 31, 2021 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Lease Expiration Date | Aug. 31, 2021 |
Houlton, Maine | January 31, 2022 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Lease Expiration Date | Jan. 31, 2022 |
Wilsonville, Oregon | October 31, 2022 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Lease Expiration Date | Oct. 31, 2022 |
Columbia, Missouri | April 30, 2023 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Lease Expiration Date | Apr. 30, 2023 |
Columbia, Missouri | November 25, 2038 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Lease Expiration Date | Nov. 25, 2038 |
Bentonville, Arkansas | December 31, 2023 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Lease Expiration Date | Dec. 31, 2023 |
Deep River, Connecticut | May 4, 2024 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Lease Expiration Date | May 4, 2024 |
Park City , Utah | August 31, 2024 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Lease Expiration Date | Aug. 31, 2024 |
Herstal, Belgium | January 21, 2027 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Lease Expiration Date | Jan. 21, 2027 |
Meridian, Idaho | October 14, 2027 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Lease Expiration Date | Oct. 14, 2027 |
Quarterly Financial Informati_3
Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
Net sales | $ 233,642 | $ 166,695 | $ 154,388 | $ 123,665 | $ 175,733 | $ 162,008 | $ 161,703 | $ 138,833 | $ 678,390 | [1] | $ 638,277 | [1] | $ 606,850 | [1] | ||||||||
Gross profit | 81,342 | 55,203 | 50,306 | 47,854 | 63,364 | 54,059 | 56,386 | 52,422 | 234,705 | [1] | 226,231 | [1] | 195,752 | [1] | ||||||||
Net (loss)/income | $ (66,146) | [2] | $ 5,731 | $ 1,293 | $ (2,108) | $ 9,825 | $ (5,725) | [3] | $ 6,665 | $ 7,645 | $ (61,230) | $ 18,410 | $ 20,128 | |||||||||
Per common share | ||||||||||||||||||||||
Basic - total | $ (1.19) | [4] | $ 0.10 | [4] | $ 0.02 | [4] | $ (0.04) | [4] | $ 0.18 | [4] | $ (0.10) | [4] | $ 0.12 | [4] | $ 0.14 | [4] | $ (1.11) | [4] | $ 0.34 | [4] | $ 0.37 | |
Diluted - total | $ (1.19) | [4] | $ 0.10 | [4] | $ 0.02 | [4] | $ (0.04) | [4] | $ 0.18 | [4] | $ (0.10) | [4] | $ 0.12 | [4] | $ 0.14 | [4] | $ (1.11) | [4] | $ 0.33 | [4] | $ 0.37 | |
[1] | For the years ended April 30, 2020, 2019, and 2018, we allocated all of corporate overhead expenses except for interest and income taxes, | |||||||||||||||||||||
[2] | Amounts includes a $98.7 million non-cash goodwill impairment relating to our Outdoor Products & Accessories segment. | |||||||||||||||||||||
[3] | Amounts includes a $10.4 million non-cash goodwill impairment relating to our Outdoor Products & Accessories segment. | |||||||||||||||||||||
[4] | Basic and diluted earnings per share may not equal the sum of the quarterly basic and diluted earnings per share due to rounding. |
Quarterly Financial Informati_4
Quarterly Financial Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 | Jan. 31, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Quarterly Financial Information [Line Items] | ||||
Goodwill impairment | $ 98,662 | $ 10,396 | ||
Outdoor Products & Accessories Segment | ||||
Quarterly Financial Information [Line Items] | ||||
Goodwill impairment | 98,662 | 10,396 | ||
Operating Segments | Outdoor Products & Accessories Segment | ||||
Quarterly Financial Information [Line Items] | ||||
Goodwill impairment | $ 98,700 | $ 10,400 | $ 98,700 | $ 10,400 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Apr. 30, 2020Segment | |
Segment Reporting Information [Line Items] | |
Number of reporting segments | 2 |
Firearms Segment | |
Segment Reporting Information [Line Items] | |
Number of reporting segments | 1 |
Outdoor Products & Accessories Segment | |
Segment Reporting Information [Line Items] | |
Number of reporting segments | 1 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Assets by Business Segment (Detail) - USD ($) $ in Thousands | Apr. 30, 2020 | Feb. 01, 2020 | Apr. 30, 2019 | Apr. 30, 2018 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 728,961 | $ 766,789 | ||
Property, plant, and equipment, net | 157,417 | 183,268 | ||
Intangibles, net | 73,754 | 91,840 | ||
Goodwill | 83,605 | 182,269 | $ 191,287 | |
Firearms Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 467,978 | 389,719 | ||
Property, plant, and equipment, net | 147,642 | 170,549 | ||
Intangibles, net | 4,982 | 4,661 | ||
Goodwill | 19,024 | $ 19,000 | 19,024 | 18,490 |
Outdoor Products & Accessories Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 260,983 | 377,070 | ||
Property, plant, and equipment, net | 9,775 | 12,719 | ||
Intangibles, net | 68,772 | 87,179 | ||
Goodwill | $ 64,581 | $ 163,200 | $ 163,245 | $ 172,797 |
Segment Reporting - Schedule _2
Segment Reporting - Schedule of Results by Business Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Net Sales | $ 233,642 | $ 166,695 | $ 154,388 | $ 123,665 | $ 175,733 | $ 162,008 | $ 161,703 | $ 138,833 | $ 678,390 | [1] | $ 638,277 | [1] | $ 606,850 | [1] | |
Cost of sales | [1] | 443,685 | 412,046 | 411,098 | |||||||||||
Gross margin | $ 81,342 | $ 55,203 | $ 50,306 | $ 47,854 | $ 63,364 | $ 54,059 | $ 56,386 | $ 52,422 | 234,705 | [1] | 226,231 | [1] | 195,752 | [1] | |
Operating income/(loss) | [1] | (48,819) | 38,056 | 27,048 | |||||||||||
Income tax expense/(benefit) | [1] | 1,281 | 10,328 | (2,511) | |||||||||||
Firearms Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Net Sales | [1] | 526,027 | 478,477 | 448,986 | |||||||||||
Outdoor Products & Accessories Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Net Sales | [1] | 152,363 | 159,800 | 157,864 | |||||||||||
Intersegment Eliminations | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Net Sales | [1] | (18,697) | (20,327) | (17,623) | |||||||||||
Cost of sales | [1] | (18,382) | (20,148) | (15,613) | |||||||||||
Gross margin | [1] | (315) | (179) | (2,010) | |||||||||||
Operating income/(loss) | [1] | 47,387 | 41,638 | 46,471 | |||||||||||
Intersegment Eliminations | Firearms Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Net Sales | [1] | 3,587 | 2,858 | 3,807 | |||||||||||
Intersegment Eliminations | Outdoor Products & Accessories Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Net Sales | [1] | 15,110 | 17,469 | 13,816 | |||||||||||
Operating Segments | Firearms Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Net Sales | [1] | 529,614 | 481,335 | 452,793 | |||||||||||
Cost of sales | [1] | 363,924 | 335,051 | 332,889 | [2] | ||||||||||
Gross margin | [1] | 165,690 | 146,284 | 119,903 | |||||||||||
Operating income/(loss) | [1] | 58,911 | 59,663 | 30,213 | |||||||||||
Income tax expense/(benefit) | [1] | 13,497 | 12,068 | 16,729 | |||||||||||
Operating Segments | Outdoor Products & Accessories Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Net Sales | [1] | 167,473 | 177,269 | 171,680 | |||||||||||
Cost of sales | [1] | 98,143 | 97,143 | 93,822 | |||||||||||
Gross margin | [1] | 69,330 | 80,126 | 77,859 | |||||||||||
Operating income/(loss) | [1] | (111,337) | [3] | (18,414) | [4] | (5,508) | |||||||||
Income tax expense/(benefit) | [1] | (7,890) | (966) | (8,059) | |||||||||||
Corporate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating income/(loss) | [1] | (43,780) | (44,831) | (44,128) | |||||||||||
Income tax expense/(benefit) | [1] | $ (4,326) | $ (774) | $ (11,181) | |||||||||||
[1] | For the years ended April 30, 2020, 2019, and 2018, we allocated all of corporate overhead expenses except for interest and income taxes, | ||||||||||||||
[2] | Amount includes $500,000 of additional cost of goods sold from the fair value inventory step-up related to our 2018 Acquisitions. | ||||||||||||||
[3] | Amount includes a non-cash goodwill charge of $98.7 million. | ||||||||||||||
[4] | Amount includes a non-cash goodwill charge of $10.4 million. |
Segment Reporting - Schedule _3
Segment Reporting - Schedule of Results by Business Segment (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Apr. 30, 2020 | Jan. 31, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Segment Reporting Information [Line Items] | ||||||
Additional cost of goods sold | [1] | $ 443,685 | $ 412,046 | $ 411,098 | ||
Goodwill impairment | 98,662 | 10,396 | ||||
Outdoor Products & Accessories Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill impairment | 98,662 | 10,396 | ||||
Operating Segments | Outdoor Products & Accessories Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Additional cost of goods sold | [1] | 98,143 | 97,143 | 93,822 | ||
Goodwill impairment | $ 98,700 | $ 10,400 | $ 98,700 | $ 10,400 | ||
Gemini Technologies, Incorporated and Bubba Blade Branded Products from Fish Tales, LLC | ||||||
Segment Reporting Information [Line Items] | ||||||
Additional cost of goods sold | $ 500,000 | |||||
[1] | For the years ended April 30, 2020, 2019, and 2018, we allocated all of corporate overhead expenses except for interest and income taxes, |
Schedule II-Valuation and Qua_2
Schedule II-Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Allowance for doubtful accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning of Period | $ 1,899 | $ 1,824 | $ 598 |
Charged to Costs and Expenses | 281 | 631 | 1,000 |
Charged to Other Accounts | 401 | ||
Deductions | (742) | (556) | (175) |
End of Period | 1,438 | 1,899 | 1,824 |
Deferred tax valuation allowance | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning of Period | 3,576 | 3,336 | 2,792 |
Charged to Costs and Expenses | (390) | 240 | 544 |
End of Period | $ 3,186 | $ 3,576 | $ 3,336 |