Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 01, 2018 | Jul. 30, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | VISTA OUTDOOR INC. | |
Entity Central Index Key | 1,616,318 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 1, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 57,528,344 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jul. 01, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 63,360 | $ 22,870 |
Net receivables | 395,644 | 421,763 |
Net inventories | 413,224 | 382,278 |
Income tax receivable | 4,390 | 3,379 |
Assets held for sale | 154,031 | 200,440 |
Other current assets | 21,613 | 27,962 |
Total current assets | 1,052,262 | 1,058,692 |
Net property, plant, and equipment | 270,325 | 277,207 |
Goodwill | 657,399 | 657,536 |
Net intangible assets | 585,281 | 592,279 |
Deferred charges and other non-current assets | 26,157 | 29,122 |
Total assets | 2,591,424 | 2,614,836 |
Current liabilities: | ||
Current portion of long-term debt | 32,000 | 32,000 |
Accounts payable | 164,016 | 114,549 |
Accrued compensation | 26,857 | 36,346 |
Federal excise tax | 22,572 | 22,701 |
Liabilities held for sale | 48,087 | 42,177 |
Other current liabilities | 110,316 | 97,447 |
Total current liabilities | 403,848 | 345,220 |
Long-term debt | 848,908 | 883,399 |
Deferred income tax liabilities | 62,815 | 66,196 |
Accrued pension and postemployment benefits | 37,375 | 38,196 |
Other long-term liabilities | 64,541 | 64,335 |
Total liabilities | 1,417,487 | 1,397,346 |
Commitments and contingencies (Notes 11 and 14) | ||
Issued and outstanding — 57,521,905 shares as of July 1, 2018 and 57,431,299 shares as of March 31, 2018 | 575 | 574 |
Additional paid-in capital | 1,758,682 | 1,746,182 |
Accumulated deficit | (208,874) | (156,526) |
Accumulated other comprehensive loss | (110,759) | (104,296) |
Common stock in treasury, at cost — 6,442,534 shares held as of July 1, 2018 and 6,533,140 shares held as of March 31, 2018 | (265,687) | (268,444) |
Total stockholders' equity | 1,173,937 | 1,217,490 |
Total liabilities and stockholders' equity | $ 2,591,424 | $ 2,614,836 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Jul. 01, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 500,000,000 | 500,000,000 |
Common stock, issued shares | 57,521,905 | 57,431,299 |
Common stock, outstanding shares | 57,521,905 | 57,431,299 |
Common stock in treasury, shares | 6,442,534 | 6,533,140 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Income Statement [Abstract] | ||
Sales, net | $ 528,836 | $ 568,749 |
Cost of sales | 415,498 | 422,191 |
Gross profit | 113,338 | 146,558 |
Operating expenses: | ||
Research and development | 6,968 | 7,791 |
Selling, general, and administrative | 101,054 | 99,426 |
Impairment of held-for-sale assets | 44,921 | 0 |
Income (loss) before interest and income taxes | (39,605) | 39,341 |
Interest expense, net | (13,472) | (12,393) |
Income (loss) before income taxes | (53,077) | 26,948 |
Income tax provision (benefit) | (729) | 10,296 |
Net income (loss) | $ (52,348) | $ 16,652 |
Earnings (loss) per common share: | ||
Basic | $ (0.91) | $ 0.29 |
Diluted | $ (0.91) | $ 0.29 |
Weighted-average number of common shares outstanding: | ||
Basic | 57,454 | 56,916 |
Diluted | 57,454 | 56,957 |
Pension and other postretirement benefit liabilities: | ||
Reclassification of prior service credits for pension and postretirement benefit plans recorded to net income, net of tax benefit of $19 and $163, respectively. | $ (60) | $ (274) |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $(171) and $(666), respectively. | 543 | 1,122 |
Valuation adjustment for pension and postretirement benefit plans, net of tax benefit of $0 and $2,154, respectively. | 0 | (3,628) |
Change in derivatives, net of tax expense of $(63) and $(14), respectively. | 200 | 23 |
Change in cumulative translation adjustment. | (7,146) | 8,571 |
Total other comprehensive income (loss) | (6,463) | 5,814 |
Comprehensive income (loss) | $ (58,811) | $ 22,466 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Income Statement [Abstract] | ||
Reclassification of prior service credits for pension and postretirement benefit plans recorded to net income, net of tax benefit | $ 19 | $ 163 |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense | (171) | (666) |
Valuation adjustment for pension and postretirement benefit plans, net of tax benefit | 0 | 2,154 |
Change in derivatives, net of tax expense | (63) | (14) |
Change in cumulative translation adjustment, net of tax benefit | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Operating Activities | ||
Net income (loss) | $ (52,348) | $ 16,652 |
Adjustments to net income (loss) to arrive at cash provided by operating activities: | ||
Depreciation | 14,139 | 13,552 |
Amortization of intangible assets | 6,842 | 9,110 |
Impairment of held-for-sale assets | 44,921 | 0 |
Amortization of deferred financing costs | 1,268 | 728 |
Deferred income taxes | (3,302) | 2 |
(Gain) loss on disposal of property, plant, and equipment | (50) | 77 |
Stock-based compensation | 2,368 | 3,357 |
Changes in assets and liabilities: | ||
Net receivables | 26,935 | (2,323) |
Net inventories | (36,620) | 17,550 |
Accounts payable | 55,945 | (20,953) |
Accrued compensation | (9,555) | (178) |
Accrued income taxes | (617) | 8,423 |
Federal excise tax | (52) | (4,036) |
Pension and other postretirement benefits | (184) | (4,841) |
Other assets and liabilities | 24,482 | 4,170 |
Cash provided by operating activities | 74,172 | 41,290 |
Investing Activities: | ||
Capital expenditures | (9,949) | (16,430) |
Proceeds from the disposition of property, plant, and equipment | 65 | 13 |
Cash used for investing activities | (9,884) | (16,417) |
Financing Activities: | ||
Borrowings on line of credit | 40,000 | 145,000 |
Payments made on line of credit | (40,000) | (150,000) |
Settlement from former parent | 13,047 | 0 |
Payments made on long-term debt | (33,000) | (8,000) |
Payments made for debt issuance costs | (2,759) | (1,805) |
Shares withheld for payroll taxes | (830) | (2,381) |
Proceeds from employee stock compensation plans | 0 | 298 |
Cash used for financing activities | (23,542) | (16,888) |
Effect of foreign exchange rate fluctuations on cash | (256) | 490 |
Increase in cash and cash equivalents | 40,490 | 8,475 |
Cash and cash equivalents at beginning of period | 22,870 | 45,075 |
Cash and cash equivalents at end of period | 63,360 | 53,550 |
Non-cash investing activity: | ||
Capital expenditures included in accounts payable | $ 2,613 | $ 5,598 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Total | Common Stock $.01 Par Value | Additional Paid-In Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance (in shares) at Mar. 31, 2017 | 57,014,319 | |||||
Balance at Mar. 31, 2017 | $ 1,245,065 | $ 571 | $ 1,752,903 | $ (108,033) | $ (112,992) | $ (287,384) |
Increase (Decrease) in Stockholders' Equity | ||||||
Comprehensive income (loss) | 22,466 | 16,652 | 5,814 | |||
Exercise of stock options (in shares) | 18,476 | |||||
Exercise of stock options | 298 | (465) | 763 | |||
Restricted stock grants net of forfeitures (in shares) | (16,286) | |||||
Restricted stock grants net of forfeitures | (446) | (89) | (357) | |||
Share-based compensation | 3,357 | 3,357 | ||||
Restricted stock vested and shares withheld (in shares) | 6,827 | |||||
Restricted stock vested and shares withheld | (246) | (423) | 177 | |||
Employee stock purchase plan (in shares) | 6,510 | |||||
Employee stock purchase plan | 139 | (130) | 269 | |||
Settlement from former parent | 0 | |||||
Other (in shares) | 688 | |||||
Other | 0 | $ (1) | (34) | 35 | ||
Balance (in shares) at Jul. 02, 2017 | 57,030,534 | |||||
Balance at Jul. 02, 2017 | 1,270,633 | $ 570 | 1,755,119 | (91,381) | (107,178) | (286,497) |
Balance (in shares) at Mar. 31, 2018 | 57,431,299 | |||||
Balance at Mar. 31, 2018 | 1,217,490 | $ 574 | 1,746,182 | (156,526) | (104,296) | (268,444) |
Increase (Decrease) in Stockholders' Equity | ||||||
Comprehensive income (loss) | (58,811) | (52,348) | (6,463) | |||
Share-based compensation | 2,368 | 2,380 | (12) | |||
Restricted stock vested and shares withheld (in shares) | 24,430 | |||||
Restricted stock vested and shares withheld | (269) | (1,755) | 1,486 | |||
Employee stock purchase plan (in shares) | 7,241 | |||||
Employee stock purchase plan | 107 | (192) | 299 | |||
Settlement from former parent | 13,047 | 13,047 | ||||
Other (in shares) | 58,935 | |||||
Other | 5 | $ 1 | (980) | 984 | ||
Balance (in shares) at Jul. 01, 2018 | 57,521,905 | |||||
Balance at Jul. 01, 2018 | $ 1,173,937 | $ 575 | $ 1,758,682 | $ (208,874) | $ (110,759) | $ (265,687) |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Jul. 01, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Nature of Operations —Vista Outdoor Inc. (together with our subsidiaries, "Vista Outdoor", "we", "our", and "us") is a leading global designer, manufacturer and marketer of consumer products in the growing outdoor sports and recreation markets. We operate in two segments, Outdoor Products and Shooting Sports. Vista Outdoor is headquartered in Farmington, Utah and has manufacturing operations and facilities in 18 locations in the United States, Canada, Mexico, and Puerto Rico along with international customer service, sales and sourcing operations in Asia, Australia, Canada, and Europe. Vista Outdoor was incorporated in Delaware in 2014. This Quarterly Report on Form 10-Q should be read in conjunction with our consolidated financial statements and notes included in our annual report on Form 10-K for the fiscal year ended March 31, 2018 (“fiscal 2018”). Basis of Presentation —Our unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of the Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain disclosures and other financial information that normally are required by accounting principles generally accepted in the United States can be condensed or omitted. Our accounting policies are described in the notes to the consolidated and combined financial statements in our Annual Report on Form 10-K for fiscal 2018. Management is responsible for the condensed consolidated financial statements included in this report, which are unaudited but, in the opinion of management, include all adjustments necessary for a fair presentation of our financial position as of July 1, 2018 and March 31, 2018 , our results of operations for the quarters ended July 1, 2018 and July 2, 2017 , and our cash flows for the quarters ended July 1, 2018 and July 2, 2017 . New Accounting Pronouncements —Effective April 1, 2018, we adopted Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes existing revenue recognition requirements. We adopted this standard effective April 1, 2018 using the modified retrospective transition method. The adoption of this standard did not have a material impact on our consolidated financial statements. See Note 3, Revenue Recognition, for our enhanced disclosures about revenue in accordance with the new standard. On February 25, 2016, the FASB issued Accounting Standard Update ("ASU") 2016-02, Leases . The new guidance was issued to increase transparency and comparability among companies by requiring most leases to be included on the balance sheet and by expanding disclosure requirements. Based on the current effective dates, the new guidance would first apply in the first quarter of our fiscal 2020. Although we expect adoption of the standard to materially increase the assets and liabilities recorded on our balance sheet, we are still evaluating the overall impact on our financial statements. Other than the standards noted above and in our fiscal 2018 financial statements, there are no other new accounting pronouncements that are expected to have a significant impact on our condensed consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Jul. 01, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The current authoritative guidance on fair value prescribes a framework for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value, and requires disclosures about the use of fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The valuation techniques required by the current authoritative literature are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1—Quoted prices for identical instruments in active markets. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3—Significant inputs to the valuation model are unobservable. The following section describes the valuation methodologies we used to measure our financial instruments at fair value. Long-term debt —The fair value of our outstanding variable-rate long-term debt is calculated based on current market rates for debt of the same risk and maturities. The fair value of the fixed-rate long-term debt is based on market quotes for the outstanding notes. We consider these to be Level 2 instruments. Interest rate swaps —We periodically enter into floating-to-fixed interest rate swap agreements in order to hedge our forecasted interest payments on our outstanding variable-rate debt. The fair value of those swaps is determined using a pricing model based on observable inputs for similar instruments and other market assumptions. We consider these to be Level 2 instruments. See Note 11 , Long-term Debt , for additional information. Contingent consideration —The acquisition-related contingent consideration liability represents the estimated fair value of additional future earn-outs payable for acquisitions of businesses that included earn-out clauses. The valuation of the contingent consideration is evaluated on an ongoing basis and is based on management estimates and entity-specific assumptions which are considered Level 3 inputs. On September 1, 2016, we completed the acquisition of privately owned Logan Outdoor Products, LLC and Peak Trades, LLC ("Camp Chef"), a leading provider of outdoor cooking solutions. Under the terms of the transaction, approximately $10,000 of the purchase price is payable over a three-year period from the closing date if certain incremental growth milestones are met and key members of Camp Chef management continue their employment with us through the respective milestone dates. The approximately $10,000 is being expensed over the three-year measurement period and is to be paid in three equal installments as each milestone is achieved. The growth milestones for the first year were met and, therefore, we paid $3,371 during the quarter ended December 31, 2017. The following table presents our financial assets and liabilities that are not measured at fair value on a recurring basis. The carrying values and estimated fair values were as follows: July 1, 2018 March 31, 2018 Carrying Fair Carrying Fair Fixed-rate debt $ 350,000 $ 334,075 $ 350,000 $ 328,248 Variable-rate debt 543,000 543,000 576,000 576,000 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Jul. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The following tables disaggregate our net sales by major category for the quarters ended July 1, 2018 and July 2, 2017 : Quarter ended July 1, 2018 Quarter ended July 2, 2017 Outdoor Products Shooting Sports Total Outdoor Products Shooting Sports Total Ammunition $ — $ 217,122 $ 217,122 $ — $ 240,926 $ 240,926 Firearms — 40,934 40,934 — 37,840 37,840 Hunting and Shooting Accessories 103,688 — 103,688 115,842 — 115,842 Action Sports 71,708 — 71,708 76,477 — 76,477 Outdoor Recreation 63,113 — 63,113 64,659 — 64,659 Eyewear 32,271 — 32,271 33,005 — 33,005 Total $ 270,780 $ 258,056 $ 528,836 $ 289,983 $ 278,766 $ 568,749 Geographic Region United States $ 196,649 $ 231,894 $ 428,543 $ 209,006 $ 249,445 $ 458,451 Rest of the World 74,131 26,162 100,293 80,977 29,321 110,298 Total $ 270,780 $ 258,056 $ 528,836 $ 289,983 $ 278,766 $ 568,749 Effective April 1, 2018, we implemented Accounting Standards Update No. 2014-09 Revenue from Contracts with Customers (Topic 606), using the modified retrospective method. The standard did not have a material effect on our financial statements. The vast majority of our revenues are from the sale of consumer products in the outdoor recreation and shooting sports markets. Our customers consist primarily of retailers and distributors, as well as government, law enforcement, and military professionals. We also sell some of our products online directly to consumers. Our top customer is Walmart , representing 14% and 15% of our sales for the quarters ended July 1, 2018 and July 2, 2017 , respectively. No other single customer contributed 10% or more of our sales for the quarters ended July 1, 2018 and July 2, 2017 . Typically, our contracts require customers to pay within 30 - 60 days of product delivery with a discount available to some customers for early payment. In some cases, we offer extended payment terms to customers. However, we do not consider these extended payment terms to be a significant financing component of the contract because the payment terms are less than a year. We recognize revenue for our products at a point in time upon the transfer of control of the products to the customer, which typically occurs upon shipment and coincides with our right to payment, the transfer of legal title, and the transfer of the significant risks and rewards of ownership of the product. In limited circumstances, our contract with a customer may have shipping terms that indicate a transfer of control of the products upon their arrival at the destination rather than upon shipment. In those cases, we recognize revenue only when the product reaches the customer destination, which may require us to estimate the timing of transfer of control based on the expected delivery date. In all cases, however, we consider our costs related to shipping and handling to be a cost of fulfilling the contract with the customer. The total amount of revenue we recognize for the sale of our products reflects various sales adjustments for discounts, returns, refunds, allowances, rebates, and other customer incentives. These sales adjustments can vary based on market conditions, customer preferences, timing of customer payments, volume of products sold, and timing of new product launches. These adjustments require management to make reasonable estimates of the amount we expect to receive from the customer. We estimate sales adjustments by customer or by product category on the basis of our historical experience with similar contracts with customers, adjusted as necessary to reflect current facts and circumstances and our expectations for the future. Incentives in the form of cash paid to the customer (or a reduction of a customer cash payment to us) typically are recognized as a reduction of sales unless the incentive is for a distinct benefit that we receive from the customer (e.g., advertising or marketing). We provide consumer warranties against manufacturing defects on certain products within the Shooting Sports and Outdoor Products segments. Our warranty periods typically range from one year to the lifetime of the product. The costs of such product warranties are recognized upon delivery of the product at the time the sale is recorded, and are estimated based on our past experience. We pay commissions to some of our employees based on agreed-upon sales targets. We recognize the incremental costs of obtaining a contract as an expense when incurred because our sales contracts with commissions are a year or less. We did not recognize any revenue in the reporting period from performance obligations satisfied (or partially satisfied) in previous reporting periods. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jul. 01, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The computation of earnings per share ("EPS") includes Basic EPS computed based upon the weighted average number of common shares outstanding for each period. Diluted EPS is computed based on the weighted average number of common shares and common equivalent shares. Common equivalent shares represent the effect of stock-based awards during each period presented, which, if exercised or earned, would have a dilutive effect on EPS. In computing EPS for the quarters ended July 1, 2018 and July 2, 2017 , earnings, as reported for each respective period, is divided by the number of shares below: Quarter ended July 1, 2018 July 2, 2017 Net income (loss) $ (52,348 ) $ 16,652 Weighted-average number of common shares outstanding: Basic EPS shares outstanding 57,454 56,916 Dilutive effect of stock-based awards (1) — 41 Diluted EPS shares outstanding 57,454 56,957 Shares excluded from the calculation of diluted EPS because the option exercise/threshold price was greater than the average market price of the common shares 481 358 Earnings (loss) per common share: Basic $ (0.91 ) $ 0.29 Diluted $ (0.91 ) $ 0.29 (1) Due to the loss from continuing operations in the quarter ended July 1, 2018 , there are no common shares added to calculate dilutive EPS for that quarter because the effect would be antidilutive. |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale | 3 Months Ended |
Jul. 01, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale | In November 2017, we announced our intention to sell our eyewear business consisting of the Bollé, Serengeti, and Cébé brands, which are part of our Outdoor Products segment. The decision to sell this business reflects our ongoing review of our portfolio of brands to focus on assets that are core to our mission and strategy. As of March 31, 2018, we had received multiple bids for the eyewear business with a wide range of potential purchase prices. When we performed our required held-for-sale impairment analysis for the quarter ended March 31, 2018, the fair value estimates at the time exceeded the eyewear book value. Negotiations progressed throughout the quarter ended July 1, 2018 and the range of estimated values narrowed. On July 9, 2018, we announced that we entered into a definitive agreement to sell the legal entities operating the Bollé, Cébé, and Serengeti brands to an entity controlled by a European private equity fund. The gross proceeds from the divestiture are expected to be approximately $158,000 , subject to net working capital adjustments and transaction costs. The sale of these legal entities is expected to be completed in the quarter ended September 30, 2018. During the quarter ended July 1, 2018 , we recognized an impairment of $44,921 related to an expected loss on the sale of our held-for-sale assets. The loss is attributable primarily to cumulative foreign currency translation adjustments for these entities that will be reclassified to earnings upon sale of the entities. The operating results of this business do not qualify for reporting as discontinued operations. For the quarters ended July 1, 2018 and July 2, 2017 , the earnings before taxes for this business were approximately $5,393 and $1,977 , respectively. The earnings before taxes above include $0 and $2,093 of total depreciation and amortization expense for the quarters ended July 1, 2018 and July 2, 2017 , respectively. The following table presents information related to the assets and liabilities of the business that were classified as held for sale at July 1, 2018 : (Amounts in thousands) July 1, 2018 Assets Net receivables $ 23,245 Net inventories 33,682 Other current assets 2,309 Net property, plant, and equipment 3,877 Goodwill 61,599 Net intangible assets 74,240 Total assets held for sale $ 198,952 Liabilities Accounts payable $ 12,202 Accrued compensation 2,284 Deferred tax liabilities 18,506 Other accrued liabilities 15,095 Total liabilities held for sale $ 48,087 Total net assets held for sale $ 150,865 The following table presents the calculation of our expected loss on sale as of July 1, 2018 : (Amounts in thousands) July 1, 2018 Total net assets held for sale $ 150,865 Currency translation adjustment attributable to eyewear business 35,853 Total net assets including currency translation adjustment 186,718 Proceeds from sale, net of expected transaction costs and net working capital adjustments (141,797 ) Impairment of held-for-sale assets $ 44,921 The following table presents the reconciliation of the eyewear gross held-for-sale assets above to our consolidated balance sheet as of July 1, 2018 : (Amounts in thousands) July 1, 2018 Total assets held for sale $ 198,952 Impairment of held-for-sale assets (44,921 ) Adjusted assets held for sale $ 154,031 |
Receivables
Receivables | 3 Months Ended |
Jul. 01, 2018 | |
Receivables [Abstract] | |
Receivables | Net receivables are summarized as follows: July 1, 2018 March 31, 2018 Trade receivables $ 410,269 $ 453,939 Other receivables 3,835 4,017 Less: allowance for doubtful accounts and discounts (18,460 ) (36,193 ) Net receivables $ 395,644 $ 421,763 As of July 1, 2018 and March 31, 2018 , Walmart represented 17% and 14% , respectively, of the total trade receivables balance. No other customer represented more than 10% of our total trade receivables balance as of July 1, 2018 and March 31, 2018 . |
Inventories
Inventories | 3 Months Ended |
Jul. 01, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Net inventories consist of the following: July 1, 2018 March 31, 2018 Raw materials $ 107,546 $ 88,588 Work in process 42,385 40,812 Finished goods 263,293 252,878 Net inventories $ 413,224 $ 382,278 We consider inventories to be long-term if they are not expected to be sold within one year. Long-term inventories are presented on the balance sheet net of reserves within deferred charges and other non-current assets and totaled $22,923 and $24,040 as of July 1, 2018 and March 31, 2018 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (AOCL) | 3 Months Ended |
Jul. 01, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss (AOCL) | The components of AOCL, net of income taxes, are as follows: July 1, 2018 March 31, 2018 Pension and other postretirement benefits $ (66,173 ) $ (66,656 ) Derivatives 2,104 1,904 Cumulative translation adjustment (46,690 ) (39,544 ) Total AOCL $ (110,759 ) $ (104,296 ) The following tables summarize the changes in the balance of AOCL, net of income tax: Quarter ended July 1, 2018 Derivatives Pension and other postretirement benefits Cumulative translation adjustment Total Beginning balance in AOCL $ 1,904 $ (66,656 ) $ (39,544 ) $ (104,296 ) Net actuarial losses reclassified from AOCL (1) — 543 — 543 Prior service costs reclassified from AOCL (1) — (60 ) — (60 ) Net increase in fair value of derivatives 200 — — 200 Net change in cumulative translation adjustment — — (7,146 ) (7,146 ) Ending balance in AOCL $ 2,104 $ (66,173 ) $ (46,690 ) $ (110,759 ) (1) Amounts related to our pension and other postretirement benefits that were reclassified from AOCL were recorded as a component of net periodic benefit cost for each period presented. Quarter ended July 2, 2017 Derivatives Pension and other postretirement benefits Cumulative translation adjustment Total Beginning balance in AOCL $ — $ (56,929 ) $ (56,063 ) $ (112,992 ) Net actuarial losses reclassified from AOCL (1) — 1,122 — 1,122 Prior service costs reclassified from AOCL (1) — (274 ) — (274 ) Valuation adjustment for pension and postretirement benefit plans (2) — (3,628 ) — (3,628 ) Net increase in fair value of derivatives 23 — — 23 Net change in cumulative translation adjustment — — 8,571 8,571 Ending balance in AOCL $ 23 $ (59,709 ) $ (47,492 ) $ (107,178 ) (1) Amounts related to our pension and other postretirement benefits that were reclassified from AOCL were recorded as a component of net periodic benefit cost for each period presented. (2) See Note 12 , Employee Benefit Plans , for a description of the pension curtailment gain recognized in the quarter ended July 2, 2017. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jul. 01, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | The changes in the carrying amount of goodwill by segment were as follows: Outdoor Products Shooting Sports Total Balance, March 31, 2018 $ 452,627 $ 204,909 $ 657,536 Effect of foreign currency exchange rates — (137 ) (137 ) Balance, July 1, 2018 $ 452,627 $ 204,772 $ 657,399 The goodwill recorded within the Outdoor Products segment is presented net of $545,106 of accumulated impairment losses, of which $401,706 was recorded prior to fiscal 2018 and $143,400 was recorded in fiscal 2018. The goodwill recorded within the Shooting Sports segment is presented net of $41,020 of accumulated impairment losses, which were recorded in fiscal 2015. The remeasurement of goodwill and intangible assets is classified as a Level 3 fair value assessment as described in Note 2 , Fair Value of Financial Instruments , due to the significance of unobservable inputs developed using company-specific information. Net intangible assets other than goodwill consisted of the following: July 1, 2018 March 31, 2018 Gross Accumulated Total Gross Accumulated Total Trade names $ 62,657 $ (13,196 ) $ 49,461 $ 62,657 $ (11,993 ) $ 50,664 Patented technology 16,466 (8,376 ) 8,090 16,466 (8,157 ) 8,309 Customer relationships and other 318,368 (96,561 ) 221,807 318,476 (91,093 ) 227,383 Total 397,491 (118,133 ) 279,358 397,599 (111,243 ) 286,356 Non-amortizing trade names 305,923 — 305,923 305,923 — 305,923 Net intangible assets $ 703,414 $ (118,133 ) $ 585,281 $ 703,522 $ (111,243 ) $ 592,279 The amortizable assets in the table above are being amortized using a straight-line method over a weighted average remaining period of approximately 12.2 years. The amount of amortizing tradename and technology intangible assets for the Outdoor Products segment is presented net of a $61,054 impairment charge recorded in fiscal 2017. The amount of non-amortizing tradename intangible assets in the Outdoor Products segment is presented net of $8,920 and $34,230 of impairment losses recorded in fiscal 2018 and fiscal 2017, respectively; and, the amount of non-amortizing tradename intangible assets in the Shooting Sports segment is presented net of $11,200 of impairment losses recorded in fiscal 2015. Amortization expense for the quarters ended July 1, 2018 and July 2, 2017 was $6,842 and $9,110 , respectively. As of July 1, 2018 , we expect amortization expense related to these assets to be as follows: Remainder of fiscal 2019 $ 20,538 Fiscal 2020 26,553 Fiscal 2021 26,537 Fiscal 2022 26,529 Fiscal 2023 26,414 Thereafter 152,787 Total $ 279,358 |
Other Current and Non-current L
Other Current and Non-current Liabilities | 3 Months Ended |
Jul. 01, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Current and Non-current Liabilities | Other current and non-current liabilities consisted of the following: July 1, 2018 March 31, 2018 Other current liabilities: Accrual for in-transit inventory $ 31,397 $ 29,200 Rebate accrual 18,056 14,827 Other 60,863 53,420 Total other current liabilities $ 110,316 $ 97,447 Other non-current liabilities: Non-current portion of accrued income tax liability $ 35,092 $ 34,716 Other 29,449 29,619 Total other non-current liabilities $ 64,541 $ 64,335 We provide consumer warranties against manufacturing defects on certain products within the Shooting Sports and Outdoor Products segments with warranty periods ranging from one year to the expected lifetime of the product. The estimated costs of such product warranties are recorded at the time the sale is recorded based upon our past experience. The warranty liability recorded at each balance sheet date reflects the estimated liability for warranty coverage for products delivered based on historical information and current trends. The following is a reconciliation of the changes in our product warranty liability during the periods presented: Balance, March 31, 2018 $ 10,247 Payments made (654 ) Warranties issued 927 Changes related to preexisting warranties (622 ) Balance, July 1, 2018 $ 9,898 |
Long-term Debt
Long-term Debt | 3 Months Ended |
Jul. 01, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt, including the current portion, consisted of the following: July 1, 2018 March 31, 2018 Credit Agreement: Term Loan $ 543,000 $ 576,000 Revolving Credit Facility — — Total principal amount of Credit Agreement 543,000 576,000 5.875% Senior Notes 350,000 350,000 Principal amount of long-term debt 893,000 926,000 Less: unamortized deferred financing costs (12,092 ) (10,601 ) Carrying amount of long-term debt 880,908 915,399 Less: current portion (32,000 ) (32,000 ) Carrying amount of long-term debt, excluding current portion $ 848,908 $ 883,399 Credit Agreement —On April 1, 2016, we entered into an Amended and Restated Credit Agreement (the "Credit Agreement"), which replaced our 2014 Credit Agreement. The Credit Agreement is comprised of a Term A Loan of $640,000 and a $200,000 Revolving Credit Facility, both of which mature on April 1, 2021. The Term A Loan is subject to quarterly principal payments of $8,000 , with the remaining balance due on April 1, 2021. During the quarter ended July 1, 2018, we repaid an additional $25,000 of the Term A Loan. Substantially all domestic tangible and intangible assets of Vista Outdoor and our subsidiaries, as well as the tangible and intangible assets of Advanced Arrow S. de R.L. de C.V. and Hydrosport, S. de R.L. de C.V., are pledged as collateral under the Credit Agreement. Borrowings under the Credit Agreement bear interest at a rate equal to either the sum of a base rate plus a specified margin or the sum of a Eurodollar rate plus a specified margin. Each margin is based on our consolidated leverage ratio, as defined in the Credit Agreement, and based on the ratio in effect as of July 1, 2018 , the base rate margin was 2.25% and the Eurodollar margin was 3.25% . The weighted average interest rate for our borrowings under the Credit Agreement as of July 1, 2018 was 5.34% , excluding the impact of the interest rate swaps that are discussed below. We pay a commitment fee on the unused portion of the Revolving Credit Facility based on our consolidated leverage ratio, and based on the current ratio, this fee is 0.50% . As of July 1, 2018 , we had no borrowings against our $200,000 Revolving Credit Facility and had outstanding letters of credit of $23,288 , which reduced amounts available on the Revolving Credit Facility to $176,712 . Debt issuance costs of approximately $14,000 are being amortized over the term of the Credit Agreement. During fiscal 2018, we conducted a review of our outstanding debt instruments and initiated discussions with our banks regarding refinancing our Credit Agreement with an asset-based loan ("ABL") and a new term loan. We believe that this change could provide us with additional flexibility to operate efficiently in a challenging market environment. Subject to debt market conditions, we anticipate finalizing the refinancing by the end of our second fiscal quarter. In order to allow us sufficient time to execute the refinancing, we received from our lenders a waiver of our Consolidated Leverage Ratio requirement for the quarter ended March 31, 2018 and, in May 2018, we executed an amendment to the Credit Agreement to amend, among other things, certain financial covenants during our fiscal 2019 (the "May 2018 Amendment"). The May 2018 Amendment provides for the following maximum ratios as defined in the Credit Agreement: Maximum leverage ratios per the Credit Agreement Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Consolidated Leverage Ratio 7.25 8.25 8.00 6.75 Consolidated Senior Secured Leverage Ratio 5.00 5.50 5.25 4.50 The May 2018 Amendment also provides that the Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) must be greater than 2.00 to 1.00 through the fiscal quarter ended December 31, 2018, and 2.50 to 1.00 for the quarter ended March 31, 2019. In addition, the May 2018 Amendment reduces the Revolving Credit Facility from $400,000 to $200,000, amends the borrowing rates under the Revolving Credit Facility and Term A Loan and the fee for unused commitments under the Revolving Credit Facility, all of which vary depending on our Consolidated Leverage Ratio, and further restricts our ability to enter into certain transactions. Debt issuance costs related to the May 2018 Amendment of approximately $2,800 will be amortized over the term of the amendment. 5.875% Notes —In fiscal 2016, we issued $350,000 aggregate principal amount of 5.875% Senior Notes (the "5.875% Notes") that mature on October 1, 2023. These notes are unsecured and senior obligations. Interest on the notes is payable semi-annually in arrears on April 1 and October 1 of each year. We have the right to redeem some or all of these notes from time to time on or after October 1, 2018, at specified redemption prices. Prior to October 1, 2018, we may redeem some or all of these notes at a price equal to 100% of their principal amount plus accrued and unpaid interest to the date of redemption and a specified make-whole premium. In addition, prior to October 1, 2018, we may redeem up to 35% of the aggregate principal amount of these notes with the net cash proceeds of certain equity offerings, at a price equal to 105.875% of their principal amount plus accrued and unpaid interest to the date of redemption. Debt issuance costs of approximately $4,300 are being amortized to interest expense over 8 years, the term of the notes. The Credit Agreement and the indenture governing the 5.875% Notes contain cross-default provisions so that non-compliance with the covenants within one debt agreement could also cause a default under the other debt agreement. As of July 1, 2018, we were in compliance with the covenants of both debt agreements. However, we cannot provide assurance that we will be able to comply with such financial covenants in the future, or complete a refinancing of our Credit Agreement mentioned above, because of various risks and uncertainties some of which may be beyond our control. Rank and guarantees —The Credit Agreement obligations are guaranteed on a secured basis, jointly and severally and fully and unconditionally by substantially all of our domestic subsidiaries and by Advanced Arrow S. de R.L. de C.V. and Hydrosport, S. de R.L. de C.V. Vista Outdoor (the parent company issuer) has no independent assets or operations. We own 100% of all of these guarantor subsidiaries. The 5.875% Notes are senior unsecured obligations of Vista Outdoor and will rank equally in right of payment with any future senior unsecured indebtedness and senior in right of payment to any future subordinated indebtedness of Vista Outdoor. The 5.875% Notes are fully and unconditionally guaranteed, jointly and severally, by our existing and future domestic subsidiaries that guarantee indebtedness under our Credit Agreement or that guarantee certain of our other indebtedness, or indebtedness of any subsidiary guarantor, in an aggregate principal amount in excess of $50,000 . These guarantees are senior unsecured obligations of the applicable subsidiary guarantors. The guarantee by any subsidiary guarantor of our obligations in respect of the 5.875% Notes will be released in any of the following circumstances: • if, as a result of the sale of its capital stock, such subsidiary guarantor ceases to be a restricted subsidiary; • if such subsidiary guarantor is designated as an “Unrestricted Subsidiary”; • upon defeasance or satisfaction and discharge of the 5.875% Notes; or • if such subsidiary guarantor has been released from its guarantees of indebtedness under the Credit Agreement and all capital markets debt securities. Interest rate swaps —During the quarter ended July 2, 2017, we entered into floating-to-fixed interest rate swap agreements in order to hedge our forecasted interest payments on our outstanding variable-rate debt. As of July 1, 2018 , we had the following cash flow hedge interest rate swaps in place: Notional Fair Value Pay Fixed Receive Floating Maturity Date Non-amortizing swap $ 100,000 $ 864 1.519% 2.094% June 2019 Non-amortizing swap 100,000 1,909 1.629% 2.094% June 2020 The amount to be paid or received under these swaps is recorded as an adjustment to interest expense. The asset related to the swaps is recorded as part of other current assets. Cash paid for interest on debt —Cash paid for interest on debt, including commitment fees, for the quarters ended July 1, 2018 and July 2, 2017 totaled $7,073 and $16,197 , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Jul. 01, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | During the quarter ended July 1, 2018 , we recognized an aggregate net benefit for employee defined benefit plans of $186 compared to a net benefit of $4,352 during the quarter ended July 2, 2017 . The decrease was primarily due to the pension curtailment recognized in the quarter ended July 2, 2017, as discussed below. Employer contributions and distributions —During the quarter ended July 1, 2018 , there were no required contributions to the pension trust, and we made no contributions to our other postretirement benefit plans, and no distributions to retirees under the non-qualified supplemental executive retirement plan. During the quarter ended July 2, 2017 , we contributed $1,600 directly to the pension trust, made no contributions to our other postretirement benefit plans, and made no distributions to retirees under the non-qualified supplemental executive retirement plan. During the remainder of fiscal 2019 , we do not expect to make additional contributions to the pension trust, to our other postretirement benefit plans, or directly to retirees under our non-qualified supplemental executive retirement plans. Pension curtailment —In June 2017, we announced changes to our qualified and non-qualified defined benefit pension plans. The benefits under the affected plans are determined by a cash balance formula that provides participating employees with an annual “pay credit” as a percentage of their eligible pay based on their age and eligible service. The curtailment was effective July 31, 2017, with employees receiving a pro-rated pay credit for 2017 and no future pay credits beginning in 2018. However, a participating employee’s benefit will continue to grow based on annual interest credits applied to the employee’s cash balance account until commencement of the employee’s benefit. As a result of the changes, we recognized a one-time gain of $5,783 during the quarter ended July 2, 2017. |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 01, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Our provision for income taxes includes federal, foreign, and state income taxes. Income tax provisions for interim periods are based on the year-to-date effective tax rate for the current year and on estimated effective annual income tax rate for the prior year. The income tax provisions for the quarters ended July 1, 2018 and July 2, 2017 represent effective tax rates of 1.4% and 38.2% , respectively. The decrease in the rate from the prior year quarter is primarily caused by an impairment of held-for-sale assets and the income tax effects of The Tax Cuts and Jobs Act (the "Tax Legislation") including the decrease in the federal statutory tax rate, repeal of the domestic manufacturing deduction, and the implementation of a territorial tax system. The effective tax rate for the quarter ended July 1, 2018 was lower than the statutory rate primarily because of the loss in the first quarter, which caused the unfavorable tax adjustments to decrease the rate. The effective tax rate for the quarter ended July 2, 2017 was higher than the statutory rate, primarily because of state tax expense and unfavorable tax adjustments, partially offset by the domestic manufacturing deduction and tax credits. On December 22, 2017, Tax Legislation was enacted in the United States. The Tax Legislation significantly revises the corporate income tax by, among other things, lowering corporate income tax rates, limiting various deductions, repealing the domestic manufacturing deduction, implementing a territorial tax system, and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. We estimate the impact of the Tax Legislation, based on currently available information and interpretations of the law, to be a benefit to us of approximately $48 million , which was included in our prior period tax benefit. The majority of the tax benefit was due to remeasurement of the U.S. deferred tax liabilities at lower enacted corporate tax rates, which did not have a cash impact on the prior quarter. The actual impact of the Tax Legislation may differ from this estimate, possibly materially, due to, among other things, changes in interpretations and assumptions we have made, guidance that may be issued, and actions we may take as a result of the Tax Legislation. On February 9, 2015, we entered into a Tax Matters Agreement with Orbital ATK that governs the respective rights, responsibilities and obligations of Vista Outdoor and Orbital ATK following the distribution of all of the shares of our common stock on a pro rata basis to the holders of Alliant Techsystems Inc. common stock (the “Spin-Off”) with respect to tax liabilities and benefits, tax attributes, tax contests and other tax sharing regarding U.S. federal, state, local and foreign income taxes, other tax matters and related tax returns. We have joint and several liability with Orbital ATK to the IRS for the consolidated U.S. federal income taxes of the Orbital ATK consolidated group relating to the taxable periods in which we were part of that group. However, the Tax Matters Agreement specifies the portion, if any, of this tax liability for which we bear responsibility, and Orbital ATK agrees to indemnify us against any amounts for which we are not responsible. The Tax Matters Agreement also provides special rules for allocating tax liabilities in the event that the Spin-Off is determined not to be tax-free. Though valid between the parties, the Tax Matters Agreement is not binding on the IRS. The allocation of tax liabilities for the period from April 1, 2014 through the date of the Spin-Off was settled on June 15, 2018. Orbital ATK paid Vista $13,047 to settle this matter, which was reflected as an adjustment to the distribution from Vista to Orbital ATK at the time of the Spin-Off. Prior to the Spin-Off, Orbital ATK or one of its subsidiaries filed income tax returns in the U.S. federal and various U.S. state jurisdictions that included Vista Outdoor. In addition, certain of our subsidiaries filed income tax returns in foreign jurisdictions. Since the Spin-Off, we file income tax returns in the U.S. federal, foreign and various U.S. state jurisdictions. With a few exceptions, Orbital ATK and its subsidiaries and Vista are no longer subject to U.S. federal, state and local, or foreign income tax examinations by tax authorities prior to 2011. The IRS has completed the audits of Orbital ATK through fiscal 2014 and is currently auditing Orbital ATK's tax return for fiscal 2015. The IRS has also completed the audit of our tax return for the period that began after the Spin-Off (February 9, 2015) and ended on March 31, 2015. We believe appropriate provisions for all outstanding issues relating to our portion of these returns have been made for all remaining open years in all jurisdictions. Although the timing and outcome of income tax audit settlements are uncertain, it is reasonably possible that a $4,557 reduction of the uncertain tax benefits will occur in the next 12 months. The settlement of these unrecognized tax benefits could result in earnings from $0 to $3,877 . |
Contingencies
Contingencies | 3 Months Ended |
Jul. 01, 2018 | |
Loss Contingency [Abstract] | |
Contingencies | Litigation —From time to time, we are subject to various legal proceedings, including lawsuits, which arise out of, and are incidental to, the conduct of our business. We do not consider any of such proceedings that are currently pending, individually or in the aggregate to be material to our business or likely to result in a material adverse effect on our operating results, financial condition, or cash flows. Environmental liabilities —Our operations and ownership or use of real property are subject to a number of federal, state, and local environmental laws and regulations, as well as applicable foreign laws and regulations, including those governing the discharge of hazardous materials, remediation of contaminated sites, and restoration of damage to the environment. We are obligated to conduct investigation and/or remediation activities at certain sites that we own or operate or formerly owned or operated. We have been identified as a potentially responsible party (“PRP”), along with other parties, in regulatory agency actions associated with hazardous waste sites. As a PRP, we may be required to pay a share of the costs of the investigation and clean-up of these sites. While uncertainties exist with respect to the amounts and timing of the ultimate environmental liabilities, based on currently available information, we have concluded that these matters, individually or in the aggregate, will not have a material adverse effect on our operating results, financial condition, or cash flows. We have recorded a liability for environmental remediation of $729 and $731 as of July 1, 2018 and March 31, 2018 , respectively. We could incur substantial additional costs, including cleanup costs, resource restoration, fines, and penalties or third-party property damage or personal injury claims, as a result of violations or liabilities under environmental laws or non-compliance with environmental permits. While environmental laws and regulations have not had a material adverse effect on our operating results, financial condition, or cash flows in the past, and we have environmental management programs in place to mitigate these risks, it is difficult to predict whether they will have a material impact in the future. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 3 Months Ended |
Jul. 01, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | In accordance with the provisions of the 5.875% Notes, the outstanding notes are guaranteed on an unsecured basis, jointly and severally and fully and unconditionally, by substantially all of Vista Outdoor domestic subsidiaries and by Advanced Arrow S. de R.L. de C.V. and Hydrosport, S. de R.L. de C.V. The parent company has no independent assets or operations. All of these guarantor subsidiaries are 100% owned by Vista Outdoor. These guarantees are senior or senior subordinated obligations, as applicable, of the applicable subsidiary guarantors. The consolidating financial information of the guarantor and non-guarantor subsidiaries is presented on the following pages. VISTA OUTDOOR INC. CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) Quarter ended July 1, 2018 (Amounts in thousands) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Sales, net $ — $ 498,173 $ 54,622 $ (23,959 ) $ 528,836 Cost of sales — 404,551 34,442 (23,495 ) 415,498 Gross profit — 93,622 20,180 (464 ) 113,338 Operating expenses: Research and development — 6,880 88 — 6,968 Selling, general, and administrative — 88,447 12,607 — 101,054 Impairment of held-for-sale assets (Note 5) — 44,921 — — 44,921 Income (loss) before interest and income taxes — (46,626 ) 7,485 (464 ) (39,605 ) Equity in income of subsidiaries (42,075 ) 4,771 — 37,304 — Interest expense, net (13,472 ) — — (13,472 ) Income (loss) before income taxes (55,547 ) (41,855 ) 7,485 36,840 (53,077 ) Income tax provision (benefit) (3,199 ) 220 2,360 (110 ) (729 ) Net income (loss) $ (52,348 ) $ (42,075 ) $ 5,125 $ 36,950 $ (52,348 ) Other comprehensive income (loss), net of tax: Net income (loss) (from above) $ (52,348 ) $ (42,075 ) $ 5,125 $ 36,950 $ (52,348 ) Total other comprehensive income (6,463 ) (6,463 ) (7,146 ) 13,609 (6,463 ) Comprehensive income (loss) $ (58,811 ) $ (48,538 ) $ (2,021 ) $ 50,559 $ (58,811 ) Quarter ended July 2, 2017 (Amounts in thousands) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Sales, net $ — $ 539,559 $ 50,697 $ (21,507 ) $ 568,749 Cost of sales — 410,957 33,229 (21,995 ) 422,191 Gross profit — 128,602 17,468 488 146,558 Operating expenses: Research and development — 7,791 — — 7,791 Selling, general, and administrative — 87,296 12,130 — 99,426 Income before interest and income taxes — 33,515 5,338 488 39,341 Equity in income of subsidiaries 24,399 3,965 — (28,364 ) — Interest expense, net (12,393 ) — — — (12,393 ) Income before income taxes 12,006 37,480 5,338 (27,876 ) 26,948 Income tax provision (benefit) (4,646 ) 13,081 1,706 155 10,296 Net income $ 16,652 $ 24,399 $ 3,632 $ (28,031 ) $ 16,652 Other comprehensive income, net of tax: Net income (from above) $ 16,652 $ 24,399 $ 3,632 $ (28,031 ) $ 16,652 Total other comprehensive income 5,814 5,814 8,571 (14,385 ) 5,814 Comprehensive income (loss) $ 22,466 $ 30,213 $ 12,203 $ (42,416 ) $ 22,466 See the beginning of this footnote for additional information about our guarantor and non-guarantor subsidiaries. VISTA OUTDOOR INC. CONDENSED CONSOLIDATING BALANCE SHEET (unaudited) July 1, 2018 (Amounts in thousands) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 53,440 $ 9,920 $ — $ 63,360 Net receivables — 370,495 25,149 — 395,644 Due from affiliates, current — — 9,264 (9,264 ) — Net inventories — 393,813 22,389 (2,978 ) 413,224 Income tax receivable — 2,111 (1,014 ) 3,293 4,390 Assets held for sale — 35,003 119,028 — 154,031 Other current assets — 21,788 (175 ) — 21,613 Total current assets — 876,650 184,561 (8,949 ) 1,052,262 Net property, plant, and equipment — 262,968 7,357 — 270,325 Investment in subsidiaries 2,262,625 144,882 — (2,407,507 ) — Goodwill — 652,266 5,133 — 657,399 Net intangible assets — 577,732 7,549 — 585,281 Long-term due from affiliates — 237,971 — (237,971 ) — Deferred charges and other non-current assets — 20,811 5,346 — 26,157 Total assets $ 2,262,625 $ 2,773,280 $ 209,946 $ (2,654,427 ) $ 2,591,424 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 32,000 $ — $ — $ — $ 32,000 Accounts payable — 161,375 2,641 — 164,016 Due to affiliates, current — 9,264 — (9,264 ) — Accrued compensation — 26,045 812 — 26,857 Federal excise tax — 21,423 1,149 — 22,572 Liabilities held for sale — 24,762 23,325 — 48,087 Other current liabilities — 104,742 5,574 — 110,316 Total current liabilities 32,000 347,611 33,501 (9,264 ) 403,848 Long-term debt 848,908 — — — 848,908 Deferred income tax liabilities — 60,945 (234 ) 2,104 62,815 Accrued pension and postemployment benefits — 37,375 — — 37,375 Long-term due to affiliates 207,780 — 30,191 (237,971 ) — Other long-term liabilities — 63,645 896 — 64,541 Total liabilities 1,088,688 509,576 64,354 (245,131 ) 1,417,487 EQUITY Total stockholders' equity 1,173,937 2,263,704 145,592 (2,409,296 ) 1,173,937 Total liabilities and stockholders' equity $ 2,262,625 $ 2,773,280 $ 209,946 $ (2,654,427 ) $ 2,591,424 See the beginning of this footnote for additional information about our guarantor and non-guarantor subsidiaries. VISTA OUTDOOR INC. CONDENSED CONSOLIDATING BALANCE SHEET (unaudited) March 31, 2018 (Amounts in thousands) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 3,359 $ 19,511 $ — $ 22,870 Net receivables — 395,054 26,709 — 421,763 Due from affiliates, current — — 2,490 (2,490 ) — Net inventories — 364,904 20,148 (2,774 ) 382,278 Income tax receivable — 974 (181 ) 2,586 3,379 Assets held for sale — 73,453 126,987 — 200,440 Other current assets — 27,253 709 — 27,962 Total current assets — 864,997 196,373 (2,678 ) 1,058,692 Net property, plant, and equipment — 269,403 7,804 — 277,207 Investment in subsidiaries 2,333,155 153,181 — (2,486,336 ) — Goodwill — 652,266 5,270 — 657,536 Net intangible assets — 584,388 7,891 — 592,279 Long-term due from affiliates — 233,013 — (233,013 ) — Deferred charges and other non-current assets — 22,705 6,417 — 29,122 Total assets $ 2,333,155 $ 2,779,953 $ 223,755 $ (2,722,027 ) $ 2,614,836 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 32,000 $ — $ — $ — $ 32,000 Accounts payable — 110,303 4,246 — 114,549 Due to affiliates, current — 2,490 — (2,490 ) — Accrued compensation — 35,448 898 — 36,346 Federal excise tax — 21,286 1,415 — 22,701 Liabilities held for sale — 19,918 22,259 — 42,177 Other current liabilities — 90,490 6,957 — 97,447 Total current liabilities 32,000 279,935 35,775 (2,490 ) 345,220 Long-term debt 883,399 — — — 883,399 Deferred income tax liabilities — 64,507 181 1,508 66,196 Accrued pension and postemployment benefits — 38,196 — — 38,196 Long-term due to affiliates 200,266 — 32,747 (233,013 ) — Other long-term liabilities — 63,372 963 — 64,335 Total liabilities 1,115,665 446,010 69,666 (233,995 ) 1,397,346 EQUITY Total stockholders' equity 1,217,490 2,333,943 154,089 (2,488,032 ) 1,217,490 Total liabilities and stockholders' equity $ 2,333,155 $ 2,779,953 $ 223,755 $ (2,722,027 ) $ 2,614,836 See the beginning of this footnote for additional information about our guarantor and non-guarantor subsidiaries. VISTA OUTDOOR INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (unaudited) Quarter ended July 1, 2018 (Amounts in thousands) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Operating Activities: Cash provided by (used for) operating activities $ (9,003 ) $ 83,780 $ (605 ) $ — $ 74,172 Investing Activities: Capital expenditures — (9,671 ) (278 ) — (9,949 ) Due from affiliates — (44,851 ) — 44,851 — Proceeds from the disposition of property, plant, and equipment — 54 11 — 65 Cash provided by (used for) investing activities — (54,468 ) (267 ) 44,851 (9,884 ) Financing Activities: Due to (from) affiliates 45,592 — (741 ) (44,851 ) — Borrowings on line of credit 40,000 — — — 40,000 Payments made on line of credit (40,000 ) — — — (40,000 ) Settlement from former parent — 20,769 (7,722 ) — 13,047 Payments made on long-term debt (33,000 ) — — — (33,000 ) Payments made for debt issuance costs (2,759 ) — — — (2,759 ) Shares withheld for payroll taxes (830 ) — — — (830 ) Cash provided by (used for) financing activities 9,003 20,769 (8,463 ) (44,851 ) (23,542 ) Effect of foreign exchange rate fluctuations on cash — — (256 ) — (256 ) (Decrease) increase in cash and cash equivalents — 50,081 (9,591 ) — 40,490 Cash and cash equivalents at beginning of period — 3,359 19,511 — 22,870 Cash and cash equivalents at end of period $ — $ 53,440 $ 9,920 $ — $ 63,360 See the beginning of this footnote for additional information about our guarantor and non-guarantor subsidiaries. VISTA OUTDOOR INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (unaudited) Quarter ended July 2, 2017 (Amounts in thousands) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Operating Activities: Cash provided by (used for) operating activities $ (7,018 ) $ 42,650 $ 5,658 $ — $ 41,290 Investing Activities: Capital expenditures — (16,248 ) (182 ) — (16,430 ) Due from affiliates — (18,833 ) — 18,833 — Proceeds from the disposition of property, plant, and equipment — — 13 — 13 Cash used for investing activities — (35,081 ) (169 ) 18,833 (16,417 ) Financing Activities: Due to (from) affiliates 23,906 — (5,073 ) (18,833 ) — Borrowings on line of credit 145,000 — — — 145,000 Payments made on line of credit (150,000 ) — — — (150,000 ) Payments made on long-term debt (8,000 ) — — — (8,000 ) Payments made for debt issuance costs (1,805 ) — — — (1,805 ) Shares withheld for payroll taxes (2,381 ) — — — (2,381 ) Proceeds from employee stock compensation plans 298 — — — 298 Cash provided by financing activities 7,018 — (5,073 ) (18,833 ) (16,888 ) Effect of foreign exchange rate fluctuations on cash — — 490 — 490 (Decrease) in cash and cash equivalents — 7,569 906 — 8,475 Cash and cash equivalents at beginning of period — 23,027 22,048 — 45,075 Cash and cash equivalents at end of period $ — $ 30,596 $ 22,954 $ — $ 53,550 See the beginning of this footnote for additional information about our guarantor and non-guarantor subsidiaries. |
Operating Segment Information
Operating Segment Information | 3 Months Ended |
Jul. 01, 2018 | |
Segment Reporting [Abstract] | |
Operating Segment Information | We operate our business structure within two operating segments, which are defined based on the reporting and review process used by the chief operating decision maker, our Chief Executive Officer. Management reviews the operating segments based on net sales and gross profit. Certain significant selling and general and administrative expenses are not allocated to the segments. In addition, certain significant asset balances are not readily identifiable with individual segments and therefore cannot be allocated. Each segment is described below: • Outdoor Products, which generated approximately 51% of our external sales in the quarter ended July 1, 2018 . The Outdoor Products product lines are action sports, archery/hunting accessories, camping, eyewear and sport protection products, golf, hydration products, optics, shooting accessories, tactical products and water sports. Action sports includes helmets, goggles, and accessories for cycling, snow sports, action sports and powersports. Archery/hunting accessories include high-performance hunting arrows, game calls, hunting blinds, game cameras and waterfowl decoys. Camping products include our outdoor cooking solutions. Eyewear and sport protection products include safety and protective eyewear, as well as fashion and sports eyewear. Golf products include laser rangefinders. Hydration products include hydration packs and water bottles. Optics products include binoculars, riflescopes and telescopes. Shooting accessories products include reloading equipment, clay targets, and premium gun care products. Tactical products include holsters, duty gear, bags and packs. Water sports products include stand up paddle boards. • Shooting Sports, which generated approximately 49% of our external sales in the quarter ended July 1, 2018 . Shooting Sports product lines include centerfire ammunition, rimfire ammunition, shotshell ammunition, reloading components, and firearms. Walmart contributed 14% and 15% of our sales in the quarters ended July 1, 2018 and July 2, 2017 , respectively. No other single customer contributed 10% or more of our sales in the quarters ended July 1, 2018 and July 2, 2017 . The following summarizes our results by segment: Quarter ended July 1, 2018 July 2, 2017 Sales to external customers: Outdoor Products $ 270,780 $ 289,983 Shooting Sports 258,056 278,766 Total sales to external customers $ 528,836 $ 568,749 Gross Profit Outdoor Products $ 70,950 $ 76,510 Shooting Sports 42,388 70,318 Corporate — (270 ) Total gross profit $ 113,338 $ 146,558 The sales above exclude intercompany sales between Outdoor Products and Shooting Sports of $1,622 and $861 for the quarters ended July 1, 2018 and July 2, 2017 , respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jul. 01, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events There were no subsequent events for the quarter ended July 1, 2018. |
Significant Accounting Polici25
Significant Accounting Policies (Policies) | 3 Months Ended |
Jul. 01, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements —Effective April 1, 2018, we adopted Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes existing revenue recognition requirements. We adopted this standard effective April 1, 2018 using the modified retrospective transition method. The adoption of this standard did not have a material impact on our consolidated financial statements. See Note 3, Revenue Recognition, for our enhanced disclosures about revenue in accordance with the new standard. On February 25, 2016, the FASB issued Accounting Standard Update ("ASU") 2016-02, Leases . The new guidance was issued to increase transparency and comparability among companies by requiring most leases to be included on the balance sheet and by expanding disclosure requirements. Based on the current effective dates, the new guidance would first apply in the first quarter of our fiscal 2020. Although we expect adoption of the standard to materially increase the assets and liabilities recorded on our balance sheet, we are still evaluating the overall impact on our financial statements. Other than the standards noted above and in our fiscal 2018 financial statements, there are no other new accounting pronouncements that are expected to have a significant impact on our condensed consolidated financial statements. |
Fair Value of Financial Instr26
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying values and estimated fair values of assets and liabilities that are not measured on a recurring basis | The following table presents our financial assets and liabilities that are not measured at fair value on a recurring basis. The carrying values and estimated fair values were as follows: July 1, 2018 March 31, 2018 Carrying Fair Carrying Fair Fixed-rate debt $ 350,000 $ 334,075 $ 350,000 $ 328,248 Variable-rate debt 543,000 543,000 576,000 576,000 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate our net sales by major category for the quarters ended July 1, 2018 and July 2, 2017 : Quarter ended July 1, 2018 Quarter ended July 2, 2017 Outdoor Products Shooting Sports Total Outdoor Products Shooting Sports Total Ammunition $ — $ 217,122 $ 217,122 $ — $ 240,926 $ 240,926 Firearms — 40,934 40,934 — 37,840 37,840 Hunting and Shooting Accessories 103,688 — 103,688 115,842 — 115,842 Action Sports 71,708 — 71,708 76,477 — 76,477 Outdoor Recreation 63,113 — 63,113 64,659 — 64,659 Eyewear 32,271 — 32,271 33,005 — 33,005 Total $ 270,780 $ 258,056 $ 528,836 $ 289,983 $ 278,766 $ 568,749 Geographic Region United States $ 196,649 $ 231,894 $ 428,543 $ 209,006 $ 249,445 $ 458,451 Rest of the World 74,131 26,162 100,293 80,977 29,321 110,298 Total $ 270,780 $ 258,056 $ 528,836 $ 289,983 $ 278,766 $ 568,749 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | In computing EPS for the quarters ended July 1, 2018 and July 2, 2017 , earnings, as reported for each respective period, is divided by the number of shares below: Quarter ended July 1, 2018 July 2, 2017 Net income (loss) $ (52,348 ) $ 16,652 Weighted-average number of common shares outstanding: Basic EPS shares outstanding 57,454 56,916 Dilutive effect of stock-based awards (1) — 41 Diluted EPS shares outstanding 57,454 56,957 Shares excluded from the calculation of diluted EPS because the option exercise/threshold price was greater than the average market price of the common shares 481 358 Earnings (loss) per common share: Basic $ (0.91 ) $ 0.29 Diluted $ (0.91 ) $ 0.29 (1) Due to the loss from continuing operations in the quarter ended July 1, 2018 , there are no common shares added to calculate dilutive EPS for that quarter because the effect would be antidilutive. |
Assets and Liabilities Held f29
Assets and Liabilities Held for Sale (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table presents information related to the assets and liabilities of the business that were classified as held for sale at July 1, 2018 : (Amounts in thousands) July 1, 2018 Assets Net receivables $ 23,245 Net inventories 33,682 Other current assets 2,309 Net property, plant, and equipment 3,877 Goodwill 61,599 Net intangible assets 74,240 Total assets held for sale $ 198,952 Liabilities Accounts payable $ 12,202 Accrued compensation 2,284 Deferred tax liabilities 18,506 Other accrued liabilities 15,095 Total liabilities held for sale $ 48,087 Total net assets held for sale $ 150,865 The following table presents the calculation of our expected loss on sale as of July 1, 2018 : (Amounts in thousands) July 1, 2018 Total net assets held for sale $ 150,865 Currency translation adjustment attributable to eyewear business 35,853 Total net assets including currency translation adjustment 186,718 Proceeds from sale, net of expected transaction costs and net working capital adjustments (141,797 ) Impairment of held-for-sale assets $ 44,921 The following table presents the reconciliation of the eyewear gross held-for-sale assets above to our consolidated balance sheet as of July 1, 2018 : (Amounts in thousands) July 1, 2018 Total assets held for sale $ 198,952 Impairment of held-for-sale assets (44,921 ) Adjusted assets held for sale $ 154,031 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Receivables [Abstract] | |
Schedule of receivables, including amounts due under long-term contracts (contract receivables) | Net receivables are summarized as follows: July 1, 2018 March 31, 2018 Trade receivables $ 410,269 $ 453,939 Other receivables 3,835 4,017 Less: allowance for doubtful accounts and discounts (18,460 ) (36,193 ) Net receivables $ 395,644 $ 421,763 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Net inventories consist of the following: July 1, 2018 March 31, 2018 Raw materials $ 107,546 $ 88,588 Work in process 42,385 40,812 Finished goods 263,293 252,878 Net inventories $ 413,224 $ 382,278 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Loss (AOCL) (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Equity [Abstract] | |
Schedule of components of AOCL, net of income taxes | The components of AOCL, net of income taxes, are as follows: July 1, 2018 March 31, 2018 Pension and other postretirement benefits $ (66,173 ) $ (66,656 ) Derivatives 2,104 1,904 Cumulative translation adjustment (46,690 ) (39,544 ) Total AOCL $ (110,759 ) $ (104,296 ) |
Schedule of changes in balance of AOCL, net of income taxes | The following tables summarize the changes in the balance of AOCL, net of income tax: Quarter ended July 1, 2018 Derivatives Pension and other postretirement benefits Cumulative translation adjustment Total Beginning balance in AOCL $ 1,904 $ (66,656 ) $ (39,544 ) $ (104,296 ) Net actuarial losses reclassified from AOCL (1) — 543 — 543 Prior service costs reclassified from AOCL (1) — (60 ) — (60 ) Net increase in fair value of derivatives 200 — — 200 Net change in cumulative translation adjustment — — (7,146 ) (7,146 ) Ending balance in AOCL $ 2,104 $ (66,173 ) $ (46,690 ) $ (110,759 ) (1) Amounts related to our pension and other postretirement benefits that were reclassified from AOCL were recorded as a component of net periodic benefit cost for each period presented. Quarter ended July 2, 2017 Derivatives Pension and other postretirement benefits Cumulative translation adjustment Total Beginning balance in AOCL $ — $ (56,929 ) $ (56,063 ) $ (112,992 ) Net actuarial losses reclassified from AOCL (1) — 1,122 — 1,122 Prior service costs reclassified from AOCL (1) — (274 ) — (274 ) Valuation adjustment for pension and postretirement benefit plans (2) — (3,628 ) — (3,628 ) Net increase in fair value of derivatives 23 — — 23 Net change in cumulative translation adjustment — — 8,571 8,571 Ending balance in AOCL $ 23 $ (59,709 ) $ (47,492 ) $ (107,178 ) (1) Amounts related to our pension and other postretirement benefits that were reclassified from AOCL were recorded as a component of net periodic benefit cost for each period presented. (2) See Note 12 , Employee Benefit Plans , for a description of the pension curtailment gain recognized in the quarter ended July 2, 2017. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill by segment | The changes in the carrying amount of goodwill by segment were as follows: Outdoor Products Shooting Sports Total Balance, March 31, 2018 $ 452,627 $ 204,909 $ 657,536 Effect of foreign currency exchange rates — (137 ) (137 ) Balance, July 1, 2018 $ 452,627 $ 204,772 $ 657,399 |
Schedule of net intangibles | Net intangible assets other than goodwill consisted of the following: July 1, 2018 March 31, 2018 Gross Accumulated Total Gross Accumulated Total Trade names $ 62,657 $ (13,196 ) $ 49,461 $ 62,657 $ (11,993 ) $ 50,664 Patented technology 16,466 (8,376 ) 8,090 16,466 (8,157 ) 8,309 Customer relationships and other 318,368 (96,561 ) 221,807 318,476 (91,093 ) 227,383 Total 397,491 (118,133 ) 279,358 397,599 (111,243 ) 286,356 Non-amortizing trade names 305,923 — 305,923 305,923 — 305,923 Net intangible assets $ 703,414 $ (118,133 ) $ 585,281 $ 703,522 $ (111,243 ) $ 592,279 |
Schedule of expected future amortization expense | As of July 1, 2018 , we expect amortization expense related to these assets to be as follows: Remainder of fiscal 2019 $ 20,538 Fiscal 2020 26,553 Fiscal 2021 26,537 Fiscal 2022 26,529 Fiscal 2023 26,414 Thereafter 152,787 Total $ 279,358 |
Other Current and Non-current34
Other Current and Non-current Liabilities (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of major categories of other current and non-current liabilities | Other current and non-current liabilities consisted of the following: July 1, 2018 March 31, 2018 Other current liabilities: Accrual for in-transit inventory $ 31,397 $ 29,200 Rebate accrual 18,056 14,827 Other 60,863 53,420 Total other current liabilities $ 110,316 $ 97,447 Other non-current liabilities: Non-current portion of accrued income tax liability $ 35,092 $ 34,716 Other 29,449 29,619 Total other non-current liabilities $ 64,541 $ 64,335 |
Schedule of reconciliation of the changes in product warranty liability | The following is a reconciliation of the changes in our product warranty liability during the periods presented: Balance, March 31, 2018 $ 10,247 Payments made (654 ) Warranties issued 927 Changes related to preexisting warranties (622 ) Balance, July 1, 2018 $ 9,898 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, including the current portion | The May 2018 Amendment provides for the following maximum ratios as defined in the Credit Agreement: Maximum leverage ratios per the Credit Agreement Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Consolidated Leverage Ratio 7.25 8.25 8.00 6.75 Consolidated Senior Secured Leverage Ratio 5.00 5.50 5.25 4.50 Long-term debt, including the current portion, consisted of the following: July 1, 2018 March 31, 2018 Credit Agreement: Term Loan $ 543,000 $ 576,000 Revolving Credit Facility — — Total principal amount of Credit Agreement 543,000 576,000 5.875% Senior Notes 350,000 350,000 Principal amount of long-term debt 893,000 926,000 Less: unamortized deferred financing costs (12,092 ) (10,601 ) Carrying amount of long-term debt 880,908 915,399 Less: current portion (32,000 ) (32,000 ) Carrying amount of long-term debt, excluding current portion $ 848,908 $ 883,399 |
Schedule of Interest Rate Derivatives | As of July 1, 2018 , we had the following cash flow hedge interest rate swaps in place: Notional Fair Value Pay Fixed Receive Floating Maturity Date Non-amortizing swap $ 100,000 $ 864 1.519% 2.094% June 2019 Non-amortizing swap 100,000 1,909 1.629% 2.094% June 2020 |
Condensed Consolidating Finan36
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidated Statement of Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) Quarter ended July 1, 2018 (Amounts in thousands) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Sales, net $ — $ 498,173 $ 54,622 $ (23,959 ) $ 528,836 Cost of sales — 404,551 34,442 (23,495 ) 415,498 Gross profit — 93,622 20,180 (464 ) 113,338 Operating expenses: Research and development — 6,880 88 — 6,968 Selling, general, and administrative — 88,447 12,607 — 101,054 Impairment of held-for-sale assets (Note 5) — 44,921 — — 44,921 Income (loss) before interest and income taxes — (46,626 ) 7,485 (464 ) (39,605 ) Equity in income of subsidiaries (42,075 ) 4,771 — 37,304 — Interest expense, net (13,472 ) — — (13,472 ) Income (loss) before income taxes (55,547 ) (41,855 ) 7,485 36,840 (53,077 ) Income tax provision (benefit) (3,199 ) 220 2,360 (110 ) (729 ) Net income (loss) $ (52,348 ) $ (42,075 ) $ 5,125 $ 36,950 $ (52,348 ) Other comprehensive income (loss), net of tax: Net income (loss) (from above) $ (52,348 ) $ (42,075 ) $ 5,125 $ 36,950 $ (52,348 ) Total other comprehensive income (6,463 ) (6,463 ) (7,146 ) 13,609 (6,463 ) Comprehensive income (loss) $ (58,811 ) $ (48,538 ) $ (2,021 ) $ 50,559 $ (58,811 ) Quarter ended July 2, 2017 (Amounts in thousands) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Sales, net $ — $ 539,559 $ 50,697 $ (21,507 ) $ 568,749 Cost of sales — 410,957 33,229 (21,995 ) 422,191 Gross profit — 128,602 17,468 488 146,558 Operating expenses: Research and development — 7,791 — — 7,791 Selling, general, and administrative — 87,296 12,130 — 99,426 Income before interest and income taxes — 33,515 5,338 488 39,341 Equity in income of subsidiaries 24,399 3,965 — (28,364 ) — Interest expense, net (12,393 ) — — — (12,393 ) Income before income taxes 12,006 37,480 5,338 (27,876 ) 26,948 Income tax provision (benefit) (4,646 ) 13,081 1,706 155 10,296 Net income $ 16,652 $ 24,399 $ 3,632 $ (28,031 ) $ 16,652 Other comprehensive income, net of tax: Net income (from above) $ 16,652 $ 24,399 $ 3,632 $ (28,031 ) $ 16,652 Total other comprehensive income 5,814 5,814 8,571 (14,385 ) 5,814 Comprehensive income (loss) $ 22,466 $ 30,213 $ 12,203 $ (42,416 ) $ 22,466 |
Condensed Consolidated Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET (unaudited) July 1, 2018 (Amounts in thousands) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 53,440 $ 9,920 $ — $ 63,360 Net receivables — 370,495 25,149 — 395,644 Due from affiliates, current — — 9,264 (9,264 ) — Net inventories — 393,813 22,389 (2,978 ) 413,224 Income tax receivable — 2,111 (1,014 ) 3,293 4,390 Assets held for sale — 35,003 119,028 — 154,031 Other current assets — 21,788 (175 ) — 21,613 Total current assets — 876,650 184,561 (8,949 ) 1,052,262 Net property, plant, and equipment — 262,968 7,357 — 270,325 Investment in subsidiaries 2,262,625 144,882 — (2,407,507 ) — Goodwill — 652,266 5,133 — 657,399 Net intangible assets — 577,732 7,549 — 585,281 Long-term due from affiliates — 237,971 — (237,971 ) — Deferred charges and other non-current assets — 20,811 5,346 — 26,157 Total assets $ 2,262,625 $ 2,773,280 $ 209,946 $ (2,654,427 ) $ 2,591,424 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 32,000 $ — $ — $ — $ 32,000 Accounts payable — 161,375 2,641 — 164,016 Due to affiliates, current — 9,264 — (9,264 ) — Accrued compensation — 26,045 812 — 26,857 Federal excise tax — 21,423 1,149 — 22,572 Liabilities held for sale — 24,762 23,325 — 48,087 Other current liabilities — 104,742 5,574 — 110,316 Total current liabilities 32,000 347,611 33,501 (9,264 ) 403,848 Long-term debt 848,908 — — — 848,908 Deferred income tax liabilities — 60,945 (234 ) 2,104 62,815 Accrued pension and postemployment benefits — 37,375 — — 37,375 Long-term due to affiliates 207,780 — 30,191 (237,971 ) — Other long-term liabilities — 63,645 896 — 64,541 Total liabilities 1,088,688 509,576 64,354 (245,131 ) 1,417,487 EQUITY Total stockholders' equity 1,173,937 2,263,704 145,592 (2,409,296 ) 1,173,937 Total liabilities and stockholders' equity $ 2,262,625 $ 2,773,280 $ 209,946 $ (2,654,427 ) $ 2,591,424 See the beginning of this footnote for additional information about our guarantor and non-guarantor subsidiaries. VISTA OUTDOOR INC. CONDENSED CONSOLIDATING BALANCE SHEET (unaudited) March 31, 2018 (Amounts in thousands) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 3,359 $ 19,511 $ — $ 22,870 Net receivables — 395,054 26,709 — 421,763 Due from affiliates, current — — 2,490 (2,490 ) — Net inventories — 364,904 20,148 (2,774 ) 382,278 Income tax receivable — 974 (181 ) 2,586 3,379 Assets held for sale — 73,453 126,987 — 200,440 Other current assets — 27,253 709 — 27,962 Total current assets — 864,997 196,373 (2,678 ) 1,058,692 Net property, plant, and equipment — 269,403 7,804 — 277,207 Investment in subsidiaries 2,333,155 153,181 — (2,486,336 ) — Goodwill — 652,266 5,270 — 657,536 Net intangible assets — 584,388 7,891 — 592,279 Long-term due from affiliates — 233,013 — (233,013 ) — Deferred charges and other non-current assets — 22,705 6,417 — 29,122 Total assets $ 2,333,155 $ 2,779,953 $ 223,755 $ (2,722,027 ) $ 2,614,836 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 32,000 $ — $ — $ — $ 32,000 Accounts payable — 110,303 4,246 — 114,549 Due to affiliates, current — 2,490 — (2,490 ) — Accrued compensation — 35,448 898 — 36,346 Federal excise tax — 21,286 1,415 — 22,701 Liabilities held for sale — 19,918 22,259 — 42,177 Other current liabilities — 90,490 6,957 — 97,447 Total current liabilities 32,000 279,935 35,775 (2,490 ) 345,220 Long-term debt 883,399 — — — 883,399 Deferred income tax liabilities — 64,507 181 1,508 66,196 Accrued pension and postemployment benefits — 38,196 — — 38,196 Long-term due to affiliates 200,266 — 32,747 (233,013 ) — Other long-term liabilities — 63,372 963 — 64,335 Total liabilities 1,115,665 446,010 69,666 (233,995 ) 1,397,346 EQUITY Total stockholders' equity 1,217,490 2,333,943 154,089 (2,488,032 ) 1,217,490 Total liabilities and stockholders' equity $ 2,333,155 $ 2,779,953 $ 223,755 $ (2,722,027 ) $ 2,614,836 |
Condensed Consolidated Cash Flow Statement | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (unaudited) Quarter ended July 1, 2018 (Amounts in thousands) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Operating Activities: Cash provided by (used for) operating activities $ (9,003 ) $ 83,780 $ (605 ) $ — $ 74,172 Investing Activities: Capital expenditures — (9,671 ) (278 ) — (9,949 ) Due from affiliates — (44,851 ) — 44,851 — Proceeds from the disposition of property, plant, and equipment — 54 11 — 65 Cash provided by (used for) investing activities — (54,468 ) (267 ) 44,851 (9,884 ) Financing Activities: Due to (from) affiliates 45,592 — (741 ) (44,851 ) — Borrowings on line of credit 40,000 — — — 40,000 Payments made on line of credit (40,000 ) — — — (40,000 ) Settlement from former parent — 20,769 (7,722 ) — 13,047 Payments made on long-term debt (33,000 ) — — — (33,000 ) Payments made for debt issuance costs (2,759 ) — — — (2,759 ) Shares withheld for payroll taxes (830 ) — — — (830 ) Cash provided by (used for) financing activities 9,003 20,769 (8,463 ) (44,851 ) (23,542 ) Effect of foreign exchange rate fluctuations on cash — — (256 ) — (256 ) (Decrease) increase in cash and cash equivalents — 50,081 (9,591 ) — 40,490 Cash and cash equivalents at beginning of period — 3,359 19,511 — 22,870 Cash and cash equivalents at end of period $ — $ 53,440 $ 9,920 $ — $ 63,360 See the beginning of this footnote for additional information about our guarantor and non-guarantor subsidiaries. VISTA OUTDOOR INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (unaudited) Quarter ended July 2, 2017 (Amounts in thousands) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Operating Activities: Cash provided by (used for) operating activities $ (7,018 ) $ 42,650 $ 5,658 $ — $ 41,290 Investing Activities: Capital expenditures — (16,248 ) (182 ) — (16,430 ) Due from affiliates — (18,833 ) — 18,833 — Proceeds from the disposition of property, plant, and equipment — — 13 — 13 Cash used for investing activities — (35,081 ) (169 ) 18,833 (16,417 ) Financing Activities: Due to (from) affiliates 23,906 — (5,073 ) (18,833 ) — Borrowings on line of credit 145,000 — — — 145,000 Payments made on line of credit (150,000 ) — — — (150,000 ) Payments made on long-term debt (8,000 ) — — — (8,000 ) Payments made for debt issuance costs (1,805 ) — — — (1,805 ) Shares withheld for payroll taxes (2,381 ) — — — (2,381 ) Proceeds from employee stock compensation plans 298 — — — 298 Cash provided by financing activities 7,018 — (5,073 ) (18,833 ) (16,888 ) Effect of foreign exchange rate fluctuations on cash — — 490 — 490 (Decrease) in cash and cash equivalents — 7,569 906 — 8,475 Cash and cash equivalents at beginning of period — 23,027 22,048 — 45,075 Cash and cash equivalents at end of period $ — $ 30,596 $ 22,954 $ — $ 53,550 |
Operating Segment Information (
Operating Segment Information (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Segment Reporting [Abstract] | |
Summary Results by Segment | The following summarizes our results by segment: Quarter ended July 1, 2018 July 2, 2017 Sales to external customers: Outdoor Products $ 270,780 $ 289,983 Shooting Sports 258,056 278,766 Total sales to external customers $ 528,836 $ 568,749 Gross Profit Outdoor Products $ 70,950 $ 76,510 Shooting Sports 42,388 70,318 Corporate — (270 ) Total gross profit $ 113,338 $ 146,558 |
Significant Accounting Polici38
Significant Accounting Policies (Details) | 3 Months Ended |
Jul. 01, 2018segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 2 |
Number of States in which Entity Operates | 18 |
Fair Value of Financial Instr39
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2017 | Jul. 01, 2018 | Mar. 31, 2018 | Sep. 01, 2016 | |
Assets and liabilities that are not measured on a recurring basis | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ (3,371) | |||
Fair value of assets and liabilities that are not measured on a recurring basis | Carrying amount | ||||
Assets and liabilities that are not measured on a recurring basis | ||||
Fixed-rate debt | $ 350,000 | $ 350,000 | ||
Variable-rate debt | 543,000 | 576,000 | ||
Fair value of assets and liabilities that are not measured on a recurring basis | Fair value | ||||
Assets and liabilities that are not measured on a recurring basis | ||||
Fixed-rate debt | 334,075 | 328,248 | ||
Variable-rate debt | $ 543,000 | $ 576,000 | ||
Camp Chef | ||||
Assets and liabilities that are not measured on a recurring basis | ||||
Business Combination, Contingent Consideration, Liability | $ 10,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Sales, net | $ 528,836 | $ 568,749 |
Segment Reporting, Disclosure of Major Customers | Walmart | |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, payment terms | 30 days | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, payment terms | 60 days | |
Sales Revenue, Net | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 14.00% | 15.00% |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | $ 428,543 | $ 458,451 |
Rest of the World | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 100,293 | 110,298 |
Ammunition | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 217,122 | 240,926 |
Firearms | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 40,934 | 37,840 |
Hunting and Shooting Accessories | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 103,688 | 115,842 |
Action Sports | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 71,708 | 76,477 |
Outdoor Recreation | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 63,113 | 64,659 |
Eyewear | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 32,271 | 33,005 |
Outdoor Products | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 270,780 | 289,983 |
Outdoor Products | United States | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 196,649 | 209,006 |
Outdoor Products | Rest of the World | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 74,131 | 80,977 |
Outdoor Products | Ammunition | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 0 | 0 |
Outdoor Products | Firearms | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 0 | 0 |
Outdoor Products | Hunting and Shooting Accessories | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 103,688 | 115,842 |
Outdoor Products | Action Sports | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 71,708 | 76,477 |
Outdoor Products | Outdoor Recreation | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 63,113 | 64,659 |
Outdoor Products | Eyewear | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 32,271 | 33,005 |
Shooting Sports | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 258,056 | 278,766 |
Shooting Sports | United States | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 231,894 | 249,445 |
Shooting Sports | Rest of the World | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 26,162 | 29,321 |
Shooting Sports | Ammunition | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 217,122 | 240,926 |
Shooting Sports | Firearms | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 40,934 | 37,840 |
Shooting Sports | Hunting and Shooting Accessories | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 0 | 0 |
Shooting Sports | Action Sports | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 0 | 0 |
Shooting Sports | Outdoor Recreation | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | 0 | 0 |
Shooting Sports | Eyewear | ||
Disaggregation of Revenue [Line Items] | ||
Sales, net | $ 0 | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (52,348) | $ 16,652 |
Basic EPS shares outstanding | 57,454 | 56,916 |
Dilutive effect of stock-based awards (1) | 0 | 41 |
Diluted EPS shares outstanding | 57,454 | 56,957 |
Shares excluded from the calculation of diluted EPS because the option exercise/threshold price was greater than the average market price of the common shares | 481 | 358 |
Basic | $ (0.91) | $ 0.29 |
Diluted | $ (0.91) | $ 0.29 |
Assets and Liabilities Held f42
Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jul. 01, 2018 | Jul. 02, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 158,000 | |||
Impairment of held-for-sale assets | 44,921 | $ 0 | ||
Earnings before taxes for disposal group held for sale | 5,393 | 1,977 | ||
Assets held for sale | 154,031 | $ 200,440 | ||
Liabilities held for sale | 48,087 | $ 42,177 | ||
Eyewear business | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment of held-for-sale assets | 44,921 | |||
Depreciation and amortization for disposal group included in earnings before taxes | 0 | $ 2,093 | ||
Net receivables | $ 23,245 | |||
Net inventories | 33,682 | |||
Other current assets | 2,309 | |||
Net property, plant, and equipment | 3,877 | |||
Goodwill | 61,599 | |||
Net intangible assets | 74,240 | |||
Assets held for sale | 198,952 | 198,952 | ||
Accounts payable | 12,202 | |||
Accrued compensation | 2,284 | |||
Deferred tax liabilities | 18,506 | |||
Other accrued liabilities | 15,095 | |||
Liabilities held for sale | 48,087 | |||
Net Assets held for sale | $ 150,865 | $ 150,865 |
Assets and Liabilities Held f43
Assets and Liabilities Held for Sale (Summary of Loss on Sale) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment of held-for-sale assets | $ 44,921 | $ 0 | |
Eyewear business | Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total net assets held for sale | 150,865 | $ 150,865 | |
Currency translation adjustment attributable to eyewear business | 35,853 | ||
Total net assets including currency translation adjustment | 186,718 | ||
Proceeds from sale, net of expected transaction costs and net working capital adjustments | (141,797) | ||
Impairment of held-for-sale assets | $ 44,921 |
Assets and Liabilities Held f44
Assets and Liabilities Held for Sale (Reconciliation of Gross Assets-held-for-sale) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jul. 01, 2018 | Jul. 02, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total assets held for sale | $ 154,031 | $ 200,440 | ||
Impairment of held-for-sale assets | (44,921) | $ 0 | ||
Eyewear business | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total assets held for sale | 198,952 | $ 198,952 | ||
Impairment of held-for-sale assets | (44,921) | |||
Adjusted assets held for sale | $ 154,031 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jul. 01, 2018 | Mar. 31, 2018 | |
Receivables [Abstract] | ||
Trade receivables | $ 410,269 | $ 453,939 |
Other receivables | 3,835 | 4,017 |
Less: allowance for doubtful accounts and discounts | (18,460) | (36,193) |
Net receivables | $ 395,644 | $ 421,763 |
Accounts Receivable | Credit Concentration Risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration Risk, Percentage | 17.00% | 14.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Mar. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 107,546 | $ 88,588 |
Work in process | 42,385 | 40,812 |
Finished goods | 263,293 | 252,878 |
Net inventories | 413,224 | 382,278 |
Long-term inventories | $ 22,923 | $ 24,040 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Loss (AOCL) (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Mar. 31, 2018 | Jul. 02, 2017 | Mar. 31, 2017 |
Equity [Abstract] | ||||
Pension and other postretirement benefits | $ 66,173 | $ 66,656 | ||
Derivatives | 2,104 | 1,904 | $ 23 | $ 0 |
Cumulative translation adjustment | (46,690) | (39,544) | ||
Total AOCL | $ (110,759) | $ (104,296) | $ (107,178) | $ (112,992) |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Loss (AOCL) (Changes in the Balance of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jul. 01, 2018 | Jul. 02, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Derivatives | $ 2,104 | $ 23 | $ 1,904 | $ 0 |
Pension and other postretirement benefits | (66,173) | (66,656) | ||
Cumulative translation adjustment | (46,690) | (39,544) | ||
Total AOCL | (110,759) | (107,178) | (104,296) | (112,992) |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $(171) and $(666), respectively. | 543 | 1,122 | ||
Net actuarial losses reclassified from AOCL | 543 | 1,122 | ||
Prior service costs reclassified from AOCL | (60) | (274) | ||
Valuation adjustment for pension and postretirement benefit plans | 0 | (3,628) | ||
Net increase in fair value of derivatives | 200 | 23 | ||
Net increase in fair value of derivatives | 200 | 23 | ||
Net change in cumulative translation adjustment | (7,146) | 8,571 | ||
Pension and Other Postretirement Benefits Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Pension and other postretirement benefits | (66,173) | (59,709) | (66,656) | (56,929) |
Cumulative Translation Adjustment | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Cumulative translation adjustment | $ (46,690) | $ (47,492) | $ (39,544) | $ (56,063) |
Goodwill and Intangible Asset49
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jul. 01, 2018 | Jul. 02, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years 1 month 27 days | ||||
Amortization expense | $ 6,842 | $ 9,110 | |||
Trade Names | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 8,920 | $ 34,230 | $ 11,200 | ||
Trade Names | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment of Intangible Assets, Finite-lived | 61,054 | ||||
Outdoor Products | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 545,106 | $ 143,400 | $ 401,706 | ||
Shooting Sports | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 41,020 |
Goodwill and Intangible Asset50
Goodwill and Intangible Assets (Goodwill Rollforward) (Details) $ in Thousands | 3 Months Ended |
Jul. 01, 2018USD ($) | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | $ 657,536 |
Effect of foreign currency exchange rates | (137) |
Balance at the end of the period | 657,399 |
Outdoor Products | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 452,627 |
Effect of foreign currency exchange rates | 0 |
Balance at the end of the period | 452,627 |
Shooting Sports | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 204,909 |
Effect of foreign currency exchange rates | (137) |
Balance at the end of the period | $ 204,772 |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets (Schedule of Net Intangible Assets) (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Mar. 31, 2018 |
Amortizing assets | ||
Gross carrying amount | $ 397,491 | $ 397,599 |
Accumulated amortization | (118,133) | (111,243) |
Total | 279,358 | 286,356 |
Intangible assets, gross | 703,414 | 703,522 |
Net intangible assets | 585,281 | 592,279 |
Non-amortizing trade names | ||
Amortizing assets | ||
Non-amortizing trade names | 305,923 | 305,923 |
Trade names | ||
Amortizing assets | ||
Gross carrying amount | 62,657 | 62,657 |
Accumulated amortization | (13,196) | (11,993) |
Total | 49,461 | 50,664 |
Patented technology | ||
Amortizing assets | ||
Gross carrying amount | 16,466 | 16,466 |
Accumulated amortization | (8,376) | (8,157) |
Total | 8,090 | 8,309 |
Customer relationships and other | ||
Amortizing assets | ||
Gross carrying amount | 318,368 | 318,476 |
Accumulated amortization | (96,561) | (91,093) |
Total | $ 221,807 | $ 227,383 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets (Future Amortization Expense) (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Mar. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of fiscal 2019 | $ 20,538 | |
Fiscal 2,020 | 26,553 | |
Fiscal 2,021 | 26,537 | |
Fiscal 2,022 | 26,529 | |
Fiscal 2,023 | 26,414 | |
Thereafter | 152,787 | |
Total | $ 279,358 | $ 286,356 |
Other Current and Non-current53
Other Current and Non-current Liabilities (Components of Current and Non-current Liabilities) (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Mar. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Accrual for in-transit inventory | $ 31,397 | $ 29,200 |
Rebate accrual | 18,056 | 14,827 |
Other | 60,863 | 53,420 |
Total other current liabilities | 110,316 | 97,447 |
Non-current portion of accrued income tax liability | 35,092 | 34,716 |
Other | 29,449 | 29,619 |
Total other non-current liabilities | $ 64,541 | $ 64,335 |
Other Current and Non-current54
Other Current and Non-current Liabilities (Product Warranty Rollforward) (Details) $ in Thousands | 3 Months Ended |
Jul. 01, 2018USD ($) | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |
Balance at the beginning of the period | $ 10,247 |
Payments made | (654) |
Warranties issued | 927 |
Changes related to preexisting warranties | (622) |
Balance at the end of period | $ 9,898 |
Long-term Debt (Components of L
Long-term Debt (Components of Long-term Debt) (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Mar. 31, 2018 | Apr. 01, 2016 | Aug. 11, 2015 |
Long-Term Debt | ||||
Principal amount of long-term debt | $ 893,000 | $ 926,000 | ||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (12,092) | (10,601) | ||
Carrying amount of long-term debt | 880,908 | 915,399 | ||
Less: current portion | (32,000) | (32,000) | ||
Carrying amount of long-term debt, excluding current portion | 848,908 | 883,399 | ||
Credit Agreement | ||||
Long-Term Debt | ||||
Principal amount of long-term debt | 543,000 | 576,000 | ||
Term A Loan due 2021 | ||||
Long-Term Debt | ||||
Principal amount of long-term debt | 543,000 | 576,000 | $ 640,000 | |
Line of Credit due 2021 | ||||
Long-Term Debt | ||||
Principal amount of long-term debt | 0 | 0 | ||
Carrying amount of long-term debt | 0 | |||
5.875% notes | ||||
Long-Term Debt | ||||
Principal amount of long-term debt | $ 350,000 | $ 350,000 | ||
Carrying amount of long-term debt | $ 350,000 |
Long-term Debt (Narrative - Cre
Long-term Debt (Narrative - Credit Agreement) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Jul. 01, 2018 | May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Apr. 01, 2016 | |
Long-Term Debt | |||||
Principal amount of long-term debt | $ 893,000 | $ 926,000 | |||
Debt Instrument, Periodic Payment, Principal | 25,000 | ||||
Long-term Debt | 880,908 | 915,399 | |||
Letters of Credit Outstanding, Amount | 23,288 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 176,712 | ||||
Credit Agreement | |||||
Long-Term Debt | |||||
Consolidated Interest Coverage Ratio, from March 31, 2019 and thereafter | 2.50 | ||||
Unamortized debt issuance costs | $ 2,800 | ||||
Term A Loan due 2021 | |||||
Long-Term Debt | |||||
Principal amount of long-term debt | 543,000 | 576,000 | $ 640,000 | ||
Debt Instrument, Periodic Payment, Principal | $ 8,000 | ||||
Weighted average interest rate (as a percent) | 5.34% | ||||
Deferred Finance Costs Gross, Accordion Feature | $ 14,000 | ||||
Term A Loan due 2021 | Base Rate | |||||
Long-Term Debt | |||||
Basis spread on variable rate margin (as a percent) | 2.25% | ||||
Term A Loan due 2021 | Eurodollar | |||||
Long-Term Debt | |||||
Basis spread on variable rate margin (as a percent) | 3.25% | ||||
Line of Credit due 2021 | |||||
Long-Term Debt | |||||
Principal amount of long-term debt | $ 0 | 0 | |||
Annual commitment fee on the unused portion (as a percent) | 0.50% | ||||
Long-term Debt | $ 0 | ||||
Line of Credit due 2021 | Credit Agreement | |||||
Long-Term Debt | |||||
Principal amount of long-term debt | $ 200,000 | ||||
May 2018 Amendment | |||||
Long-Term Debt | |||||
Principal amount of long-term debt | $ 200,000 | ||||
May 2018 Amendment | Credit Agreement | |||||
Long-Term Debt | |||||
Principal amount of long-term debt | $ 400,000 | ||||
Credit Agreement | |||||
Long-Term Debt | |||||
Principal amount of long-term debt | $ 543,000 | $ 576,000 | |||
Consolidated Interest Coverage Ratio, from July 2, 2017 through December 30, 2018 | 2 |
Long-term Debt (Narrative - 5.8
Long-term Debt (Narrative - 5.875% Notes) (Details) - USD ($) | Aug. 11, 2015 | Jul. 01, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 880,908,000 | $ 915,399,000 | ||
5.875% notes | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 350,000,000 | |||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.875% | |||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||
Debt Instrument, Redemption with Net Proceeds from Equity Offerings as Percentage of Original Principal | 35.00% | |||
Debt Instrument, Redemption Price with Net Proceeds from Equity Offerings as Percentage of Original Principal | 105.875% | |||
Debt Issuance Costs, Gross | $ 4,300,000 | |||
Debt Instrument, Term | 8 years | |||
Bottom threshhold of guarantee | $ 50,000,000 |
Long-term Debt (Interest Rate S
Long-term Debt (Interest Rate Swaps) (Details) - Cash Flow Hedging - Designated as Hedging Instrument | Jul. 01, 2018USD ($) |
Interest Rate Swap Maturing June 2019 | |
Derivative [Line Items] | |
Notional | $ 100,000,000 |
Fair Value | $ 864,000 |
Pay Fixed | 1.519% |
Receive Floating | 2.094% |
Interest Rate Swap Maturing June 2020 | |
Derivative [Line Items] | |
Notional | $ 100,000,000 |
Fair Value | $ 1,909,000 |
Pay Fixed | 1.629% |
Receive Floating | 2.094% |
Long-term Debt (Narrative - Cas
Long-term Debt (Narrative - Cash Paid for Interest on Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Debt Disclosure [Abstract] | ||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 7,073 | $ 16,197 |
Long-term Debt (Summary of Long
Long-term Debt (Summary of Long Term Debt Leverage Ratios) (Details) - May 2018 Amendment - Credit Agreement | 3 Months Ended |
Jul. 01, 2018 | |
Debt Instrument [Line Items] | |
Consolidated Leverage Ratio, Q1 FY19 | 7.25 |
Consolidated Leverage Ratio, Q2 FY19 | 8.25 |
Consolidated Leverage Ratio, Q3 FY19 | 8 |
Consolidated Leverage Ratio, Q4 FY19 | 6.75 |
Consolidated Senior Secured Leverage Ratio, Q1 FY19 | 5 |
Consolidated Senior Secured Leverage Ratio, Q2 FY19 | 5.50 |
Consolidated Senior Secured Leverage Ratio, Q3 FY19 | 5.25 |
Consolidated Senior Secured Leverage Ratio, Q4 FY19 | 4.50 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Defined Benefit Plans | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ (186,000) | $ (4,352,000) |
Pension Curtailment Gain | 5,783,000 | |
Pension Plan | ||
Defined Benefit Plans | ||
Contribution by employer | 1,600,000 | |
Other Postretirement Benefit Plans, Defined Benefit | ||
Defined Benefit Plans | ||
Contribution by employer | 0 | 0 |
Supplemental Employee Retirement Plan | ||
Defined Benefit Plans | ||
Distributions by employer | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision (as a percent) | 1.40% | 38.20% |
Estimated income tax benefit arising from recent tax reform legislation | $ 48,000 | |
Settlement from former parent | 13,047 | $ 0 |
Potential reduction of uncertain tax benefits over the next 12 months from audit settlements | (4,557) | |
Minimum | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Unrecognized tax benefits that would impact effective tax rate | 0 | |
Maximum | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Unrecognized tax benefits that would impact effective tax rate | $ 3,877 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Mar. 31, 2018 |
Loss Contingency [Abstract] | ||
Accrual for Environmental Loss Contingencies | $ 729 | $ 731 |
Condensed Consolidating Finan64
Condensed Consolidating Financial Statements (Condensed Consolidated Statement of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Condensed Income Statements, Captions [Abstract] | ||
Sales, net | $ 528,836 | $ 568,749 |
Cost of sales | 415,498 | 422,191 |
Gross profit | 113,338 | 146,558 |
Research and development | 6,968 | 7,791 |
Selling, general, and administrative | 101,054 | 99,426 |
Impairment of held-for-sale assets | 44,921 | 0 |
Income (loss) before interest and income taxes | (39,605) | 39,341 |
Equity in income of subsidiaries | 0 | 0 |
Interest expense, net | (13,472) | (12,393) |
Income (loss) before income taxes | (53,077) | 26,948 |
Income tax provision (benefit) | (729) | 10,296 |
Net income (loss) | (52,348) | 16,652 |
Total other comprehensive income | (6,463) | 5,814 |
Comprehensive income (loss) | (58,811) | 22,466 |
Eliminations | ||
Condensed Income Statements, Captions [Abstract] | ||
Sales, net | (23,959) | (21,507) |
Cost of sales | (23,495) | (21,995) |
Gross profit | (464) | 488 |
Research and development | 0 | 0 |
Selling, general, and administrative | 0 | 0 |
Impairment of held-for-sale assets | 0 | |
Income (loss) before interest and income taxes | (464) | 488 |
Equity in income of subsidiaries | 37,304 | (28,364) |
Interest expense, net | 0 | |
Income (loss) before income taxes | 36,840 | (27,876) |
Income tax provision (benefit) | (110) | 155 |
Net income (loss) | 36,950 | (28,031) |
Total other comprehensive income | 13,609 | (14,385) |
Comprehensive income (loss) | 50,559 | (42,416) |
Parent Issuer | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Abstract] | ||
Sales, net | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Research and development | 0 | 0 |
Selling, general, and administrative | 0 | 0 |
Impairment of held-for-sale assets | 0 | |
Income (loss) before interest and income taxes | 0 | 0 |
Equity in income of subsidiaries | (42,075) | 24,399 |
Interest expense, net | (13,472) | (12,393) |
Income (loss) before income taxes | (55,547) | 12,006 |
Income tax provision (benefit) | (3,199) | (4,646) |
Net income (loss) | (52,348) | 16,652 |
Total other comprehensive income | (6,463) | 5,814 |
Comprehensive income (loss) | (58,811) | 22,466 |
Guarantors | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Abstract] | ||
Sales, net | 498,173 | 539,559 |
Cost of sales | 404,551 | 410,957 |
Gross profit | 93,622 | 128,602 |
Research and development | 6,880 | 7,791 |
Selling, general, and administrative | 88,447 | 87,296 |
Impairment of held-for-sale assets | 44,921 | |
Income (loss) before interest and income taxes | (46,626) | 33,515 |
Equity in income of subsidiaries | 4,771 | 3,965 |
Interest expense, net | 0 | 0 |
Income (loss) before income taxes | (41,855) | 37,480 |
Income tax provision (benefit) | 220 | 13,081 |
Net income (loss) | (42,075) | 24,399 |
Total other comprehensive income | (6,463) | 5,814 |
Comprehensive income (loss) | (48,538) | 30,213 |
Non-Guarantors | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Abstract] | ||
Sales, net | 54,622 | 50,697 |
Cost of sales | 34,442 | 33,229 |
Gross profit | 20,180 | 17,468 |
Research and development | 88 | 0 |
Selling, general, and administrative | 12,607 | 12,130 |
Impairment of held-for-sale assets | 0 | |
Income (loss) before interest and income taxes | 7,485 | 5,338 |
Equity in income of subsidiaries | 0 | 0 |
Interest expense, net | 0 | 0 |
Income (loss) before income taxes | 7,485 | 5,338 |
Income tax provision (benefit) | 2,360 | 1,706 |
Net income (loss) | 5,125 | 3,632 |
Total other comprehensive income | (7,146) | 8,571 |
Comprehensive income (loss) | $ (2,021) | $ 12,203 |
Condensed Consolidating Finan65
Condensed Consolidating Financial Statements (Condensed Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Mar. 31, 2018 | Jul. 02, 2017 | Mar. 31, 2017 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 63,360 | $ 22,870 | $ 53,550 | $ 45,075 |
Net receivables | 395,644 | 421,763 | ||
Due from affiliates, current | 0 | 0 | ||
Net inventories | 413,224 | 382,278 | ||
Income tax receivable | 4,390 | 3,379 | ||
Assets held for sale | 154,031 | 200,440 | ||
Other current assets | 21,613 | 27,962 | ||
Total current assets | 1,052,262 | 1,058,692 | ||
Net property, plant, and equipment | 270,325 | 277,207 | ||
Investment in subsidiaries | 0 | 0 | ||
Goodwill | 657,399 | 657,536 | ||
Net intangible assets | 585,281 | 592,279 | ||
Long-term due from affiliates | 0 | 0 | ||
Deferred charges and other non-current assets | 26,157 | 29,122 | ||
Total assets | 2,591,424 | 2,614,836 | ||
Current portion of long-term debt | 32,000 | 32,000 | ||
Accounts payable | 164,016 | 114,549 | ||
Due to affiliates, current | 0 | 0 | ||
Accrued compensation | 26,857 | 36,346 | ||
Federal excise tax | 22,572 | 22,701 | ||
Liabilities held for sale | 48,087 | 42,177 | ||
Other current liabilities | 110,316 | 97,447 | ||
Total current liabilities | 403,848 | 345,220 | ||
Long-term debt | 848,908 | 883,399 | ||
Deferred income tax liabilities | 62,815 | 66,196 | ||
Accrued pension and postemployment benefits | 37,375 | 38,196 | ||
Long-term due to affiliates | 0 | 0 | ||
Other long-term liabilities | 64,541 | 64,335 | ||
Total liabilities | 1,417,487 | 1,397,346 | ||
Total stockholders' equity | 1,173,937 | 1,217,490 | ||
Total liabilities and stockholders' equity | 2,591,424 | 2,614,836 | ||
Eliminations | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Net receivables | 0 | 0 | ||
Due from affiliates, current | (9,264) | (2,490) | ||
Net inventories | (2,978) | (2,774) | ||
Income tax receivable | 3,293 | 2,586 | ||
Assets held for sale | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | (8,949) | (2,678) | ||
Net property, plant, and equipment | 0 | 0 | ||
Investment in subsidiaries | (2,407,507) | (2,486,336) | ||
Goodwill | 0 | 0 | ||
Net intangible assets | 0 | 0 | ||
Long-term due from affiliates | (237,971) | (233,013) | ||
Deferred charges and other non-current assets | 0 | 0 | ||
Total assets | (2,654,427) | (2,722,027) | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Due to affiliates, current | (9,264) | (2,490) | ||
Accrued compensation | 0 | 0 | ||
Federal excise tax | 0 | 0 | ||
Liabilities held for sale | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (9,264) | (2,490) | ||
Long-term debt | 0 | 0 | ||
Deferred income tax liabilities | 2,104 | 1,508 | ||
Accrued pension and postemployment benefits | 0 | 0 | ||
Long-term due to affiliates | (237,971) | (233,013) | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | (245,131) | (233,995) | ||
Total stockholders' equity | (2,409,296) | (2,488,032) | ||
Total liabilities and stockholders' equity | (2,654,427) | (2,722,027) | ||
Parent Issuer | Reportable Legal Entities | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Net receivables | 0 | 0 | ||
Due from affiliates, current | 0 | 0 | ||
Net inventories | 0 | 0 | ||
Income tax receivable | 0 | 0 | ||
Assets held for sale | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Net property, plant, and equipment | 0 | 0 | ||
Investment in subsidiaries | 2,262,625 | 2,333,155 | ||
Goodwill | 0 | 0 | ||
Net intangible assets | 0 | 0 | ||
Long-term due from affiliates | 0 | 0 | ||
Deferred charges and other non-current assets | 0 | 0 | ||
Total assets | 2,262,625 | 2,333,155 | ||
Current portion of long-term debt | 32,000 | 32,000 | ||
Accounts payable | 0 | 0 | ||
Due to affiliates, current | 0 | 0 | ||
Accrued compensation | 0 | 0 | ||
Federal excise tax | 0 | 0 | ||
Liabilities held for sale | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 32,000 | 32,000 | ||
Long-term debt | 848,908 | 883,399 | ||
Deferred income tax liabilities | 0 | 0 | ||
Accrued pension and postemployment benefits | 0 | 0 | ||
Long-term due to affiliates | 207,780 | 200,266 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 1,088,688 | 1,115,665 | ||
Total stockholders' equity | 1,173,937 | 1,217,490 | ||
Total liabilities and stockholders' equity | 2,262,625 | 2,333,155 | ||
Guarantors | Reportable Legal Entities | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 53,440 | 3,359 | 30,596 | 23,027 |
Net receivables | 370,495 | 395,054 | ||
Due from affiliates, current | 0 | 0 | ||
Net inventories | 393,813 | 364,904 | ||
Income tax receivable | 2,111 | 974 | ||
Assets held for sale | 35,003 | 73,453 | ||
Other current assets | 21,788 | 27,253 | ||
Total current assets | 876,650 | 864,997 | ||
Net property, plant, and equipment | 262,968 | 269,403 | ||
Investment in subsidiaries | 144,882 | 153,181 | ||
Goodwill | 652,266 | 652,266 | ||
Net intangible assets | 577,732 | 584,388 | ||
Long-term due from affiliates | 237,971 | 233,013 | ||
Deferred charges and other non-current assets | 20,811 | 22,705 | ||
Total assets | 2,773,280 | 2,779,953 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 161,375 | 110,303 | ||
Due to affiliates, current | 9,264 | 2,490 | ||
Accrued compensation | 26,045 | 35,448 | ||
Federal excise tax | 21,423 | 21,286 | ||
Liabilities held for sale | 24,762 | 19,918 | ||
Other current liabilities | 104,742 | 90,490 | ||
Total current liabilities | 347,611 | 279,935 | ||
Long-term debt | 0 | 0 | ||
Deferred income tax liabilities | 60,945 | 64,507 | ||
Accrued pension and postemployment benefits | 37,375 | 38,196 | ||
Long-term due to affiliates | 0 | 0 | ||
Other long-term liabilities | 63,645 | 63,372 | ||
Total liabilities | 509,576 | 446,010 | ||
Total stockholders' equity | 2,263,704 | 2,333,943 | ||
Total liabilities and stockholders' equity | 2,773,280 | 2,779,953 | ||
Non-Guarantors | Reportable Legal Entities | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 9,920 | 19,511 | $ 22,954 | $ 22,048 |
Net receivables | 25,149 | 26,709 | ||
Due from affiliates, current | 9,264 | 2,490 | ||
Net inventories | 22,389 | 20,148 | ||
Income tax receivable | (1,014) | (181) | ||
Assets held for sale | 119,028 | 126,987 | ||
Other current assets | (175) | 709 | ||
Total current assets | 184,561 | 196,373 | ||
Net property, plant, and equipment | 7,357 | 7,804 | ||
Investment in subsidiaries | 0 | 0 | ||
Goodwill | 5,133 | 5,270 | ||
Net intangible assets | 7,549 | 7,891 | ||
Long-term due from affiliates | 0 | 0 | ||
Deferred charges and other non-current assets | 5,346 | 6,417 | ||
Total assets | 209,946 | 223,755 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 2,641 | 4,246 | ||
Due to affiliates, current | 0 | 0 | ||
Accrued compensation | 812 | 898 | ||
Federal excise tax | 1,149 | 1,415 | ||
Liabilities held for sale | 23,325 | 22,259 | ||
Other current liabilities | 5,574 | 6,957 | ||
Total current liabilities | 33,501 | 35,775 | ||
Long-term debt | 0 | 0 | ||
Deferred income tax liabilities | (234) | 181 | ||
Accrued pension and postemployment benefits | 0 | 0 | ||
Long-term due to affiliates | 30,191 | 32,747 | ||
Other long-term liabilities | 896 | 963 | ||
Total liabilities | 64,354 | 69,666 | ||
Total stockholders' equity | 145,592 | 154,089 | ||
Total liabilities and stockholders' equity | $ 209,946 | $ 223,755 |
Condensed Consolidating Finan66
Condensed Consolidating Financial Statements (Condensed Consolidated Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Condensed Consolidated Cash Flow Statements, Captions [Line Items] | ||
Cash provided by (used for) operating activities | $ 74,172 | $ 41,290 |
Capital expenditures | (9,949) | (16,430) |
Due from affiliates | 0 | 0 |
Proceeds from the disposition of property, plant, and equipment | 65 | 13 |
Cash used for investing activities | (9,884) | (16,417) |
Due to (from) affiliates | 0 | 0 |
Borrowings on line of credit | 40,000 | 145,000 |
Payments made on line of credit | (40,000) | (150,000) |
Settlement from former parent | 13,047 | 0 |
Payments made on long-term debt | (33,000) | (8,000) |
Payments made for debt issuance costs | (2,759) | (1,805) |
Shares withheld for payroll taxes | (830) | (2,381) |
Proceeds from employee stock compensation plans | 0 | 298 |
Cash used for financing activities | (23,542) | (16,888) |
Effect of foreign exchange rate fluctuations on cash | (256) | 490 |
Increase in cash and cash equivalents | 40,490 | 8,475 |
Cash and cash equivalents at beginning of period | 22,870 | 45,075 |
Cash and cash equivalents at end of period | 63,360 | 53,550 |
Eliminations | ||
Condensed Consolidated Cash Flow Statements, Captions [Line Items] | ||
Cash provided by (used for) operating activities | 0 | 0 |
Capital expenditures | 0 | 0 |
Due from affiliates | 44,851 | 18,833 |
Proceeds from the disposition of property, plant, and equipment | 0 | 0 |
Cash used for investing activities | 44,851 | 18,833 |
Due to (from) affiliates | (44,851) | (18,833) |
Borrowings on line of credit | 0 | 0 |
Payments made on line of credit | 0 | 0 |
Settlement from former parent | 0 | |
Payments made on long-term debt | 0 | 0 |
Payments made for debt issuance costs | 0 | 0 |
Shares withheld for payroll taxes | 0 | 0 |
Proceeds from employee stock compensation plans | 0 | |
Cash used for financing activities | (44,851) | (18,833) |
Effect of foreign exchange rate fluctuations on cash | 0 | 0 |
Increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Parent Issuer | Reportable Legal Entities | ||
Condensed Consolidated Cash Flow Statements, Captions [Line Items] | ||
Cash provided by (used for) operating activities | (9,003) | (7,018) |
Capital expenditures | 0 | 0 |
Due from affiliates | 0 | 0 |
Proceeds from the disposition of property, plant, and equipment | 0 | 0 |
Cash used for investing activities | 0 | 0 |
Due to (from) affiliates | 45,592 | 23,906 |
Borrowings on line of credit | 40,000 | 145,000 |
Payments made on line of credit | (40,000) | (150,000) |
Settlement from former parent | 0 | |
Payments made on long-term debt | (33,000) | (8,000) |
Payments made for debt issuance costs | (2,759) | (1,805) |
Shares withheld for payroll taxes | (830) | (2,381) |
Proceeds from employee stock compensation plans | 298 | |
Cash used for financing activities | 9,003 | 7,018 |
Effect of foreign exchange rate fluctuations on cash | 0 | 0 |
Increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Guarantors | Reportable Legal Entities | ||
Condensed Consolidated Cash Flow Statements, Captions [Line Items] | ||
Cash provided by (used for) operating activities | 83,780 | 42,650 |
Capital expenditures | (9,671) | (16,248) |
Due from affiliates | (44,851) | (18,833) |
Proceeds from the disposition of property, plant, and equipment | 54 | 0 |
Cash used for investing activities | (54,468) | (35,081) |
Due to (from) affiliates | 0 | 0 |
Borrowings on line of credit | 0 | 0 |
Payments made on line of credit | 0 | 0 |
Settlement from former parent | 20,769 | |
Payments made on long-term debt | 0 | 0 |
Payments made for debt issuance costs | 0 | 0 |
Shares withheld for payroll taxes | 0 | 0 |
Proceeds from employee stock compensation plans | 0 | |
Cash used for financing activities | 20,769 | 0 |
Effect of foreign exchange rate fluctuations on cash | 0 | 0 |
Increase in cash and cash equivalents | 50,081 | 7,569 |
Cash and cash equivalents at beginning of period | 3,359 | 23,027 |
Cash and cash equivalents at end of period | 53,440 | 30,596 |
Non-Guarantors | Reportable Legal Entities | ||
Condensed Consolidated Cash Flow Statements, Captions [Line Items] | ||
Cash provided by (used for) operating activities | (605) | 5,658 |
Capital expenditures | (278) | (182) |
Due from affiliates | 0 | 0 |
Proceeds from the disposition of property, plant, and equipment | 11 | 13 |
Cash used for investing activities | (267) | (169) |
Due to (from) affiliates | (741) | (5,073) |
Borrowings on line of credit | 0 | 0 |
Payments made on line of credit | 0 | 0 |
Settlement from former parent | (7,722) | |
Payments made on long-term debt | 0 | 0 |
Payments made for debt issuance costs | 0 | 0 |
Shares withheld for payroll taxes | 0 | 0 |
Proceeds from employee stock compensation plans | 0 | |
Cash used for financing activities | (8,463) | (5,073) |
Effect of foreign exchange rate fluctuations on cash | (256) | 490 |
Increase in cash and cash equivalents | (9,591) | 906 |
Cash and cash equivalents at beginning of period | 19,511 | 22,048 |
Cash and cash equivalents at end of period | $ 9,920 | $ 22,954 |
Operating Segment Information67
Operating Segment Information (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Jul. 01, 2018USD ($)segment | Jul. 02, 2017USD ($) | |
Revenue, Major Customer [Line Items] | ||
Number of operating segments | segment | 2 | |
Segment Reporting, Disclosure of Major Customers | Walmart | |
Segment Reporting Information, Intersegment Revenue | $ | $ 1,622 | $ 861 |
Sales Revenue, Net | Customer Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 14.00% | 15.00% |
Outdoor Products | ||
Revenue, Major Customer [Line Items] | ||
Revenues from external customers, percentage | 51.00% | |
Shooting Sports | ||
Revenue, Major Customer [Line Items] | ||
Revenues from external customers, percentage | 49.00% |
Operating Segment Information68
Operating Segment Information (Schedule of Results by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Segment Reporting Information [Line Items] | ||
Sales, net | $ 528,836 | $ 568,749 |
Gross profit | 113,338 | 146,558 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 0 | (270) |
Outdoor Products | ||
Segment Reporting Information [Line Items] | ||
Sales, net | 270,780 | 289,983 |
Outdoor Products | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Sales, net | 270,780 | 289,983 |
Gross profit | 70,950 | 76,510 |
Shooting Sports | ||
Segment Reporting Information [Line Items] | ||
Sales, net | 258,056 | 278,766 |
Shooting Sports | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Sales, net | 258,056 | 278,766 |
Gross profit | $ 42,388 | $ 70,318 |