Cover Page
Cover Page - shares | 9 Months Ended | |
Dec. 29, 2019 | Jan. 27, 2020 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 29, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-36597 | |
Entity Registrant Name | Vista Outdoor Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-1016855 | |
Entity Address, Address Line One | 1 Vista Way | |
Entity Address, City or Town | Anoka | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55303 | |
City Area Code | 763 | |
Local Phone Number | 433-1000 | |
Title of 12(b) Security | Common Stock, par value $.01 | |
Trading Symbol | VSTO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 57,876,765 | |
Entity Central Index Key | 0001616318 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Dec. 29, 2019 | Mar. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 32,068 | $ 21,935 |
Net receivables | 319,990 | 344,249 |
Net inventories | 334,729 | 344,491 |
Income tax receivable | 564 | 0 |
Assets held for sale | 0 | 207,607 |
Other current assets | 18,075 | 21,180 |
Total current assets | 705,426 | 939,462 |
Net property, plant, and equipment | 191,945 | 215,592 |
Operating lease assets | 67,934 | 0 |
Goodwill | 204,496 | 204,496 |
Net intangible assets | 345,615 | 360,520 |
Deferred charges and other non-current assets, net | 33,517 | 17,953 |
Total assets | 1,548,933 | 1,738,023 |
Current liabilities: | ||
Current portion of long-term debt | 0 | 19,335 |
Accounts payable | 96,555 | 99,283 |
Accrued compensation | 27,263 | 36,456 |
Accrued Income Taxes | 0 | 436 |
Federal excise, use, and other taxes | 18,707 | 18,482 |
Liabilities held for sale | 0 | 46,030 |
Other current liabilities | 100,984 | 97,175 |
Total current liabilities | 243,509 | 317,197 |
Long-term debt | 523,860 | 684,670 |
Deferred income tax liabilities | 17,677 | 17,757 |
Operating lease liabilities | 72,347 | 0 |
Accrued pension and postemployment benefits | 41,001 | 46,083 |
Other long-term liabilities | 45,589 | 63,276 |
Total liabilities | 943,983 | 1,128,983 |
Commitments and contingencies (Notes 3, 13, and 16) | ||
Issued and outstanding — 57,909,645 shares as of December 29, 2019 and 57,710,934 shares as of March 31, 2019 | 578 | 577 |
Additional paid-in capital | 1,749,545 | 1,752,419 |
Accumulated deficit | (818,834) | (804,969) |
Accumulated other comprehensive loss | (78,242) | (82,967) |
Common stock in treasury, at cost — 6,054,794 shares held as of December 29, 2019 and 6,253,505 shares held as of March 31, 2019 | (248,097) | (256,020) |
Total stockholders' equity | 604,950 | 609,040 |
Total liabilities and stockholders' equity | $ 1,548,933 | $ 1,738,023 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Dec. 29, 2019 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 57,909,645 | 57,710,934 |
Common stock, outstanding (in shares) | 57,909,645 | 57,710,934 |
Common stock in treasury (in shares) | 6,054,794 | 6,253,505 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Statement [Abstract] | ||||
Sales, net | $ 424,770 | $ 467,771 | $ 1,329,560 | $ 1,543,192 |
Cost of sales | 335,980 | 373,535 | 1,055,428 | 1,226,861 |
Gross profit | 88,790 | 94,236 | 274,132 | 316,331 |
Operating expenses: | ||||
Research and development | 5,703 | 6,503 | 17,750 | 20,681 |
Selling, general, and administrative | 64,418 | 86,418 | 231,298 | 284,754 |
Intangibles impairment | 0 | 432,612 | 0 | 456,023 |
Impairment of held-for-sale assets | 0 | 83,854 | 9,429 | 128,775 |
Income (loss) before interest, income taxes, and other | 18,669 | (515,151) | 15,655 | (573,902) |
Other income (expense), net | 0 | (1,871) | (433) | (6,796) |
Interest expense, net | (8,373) | (16,003) | (31,811) | (46,340) |
Earnings (loss) before income taxes | 10,296 | (533,025) | (16,589) | (627,038) |
Income tax provision (benefit) | (4,352) | (18,383) | (2,724) | (27,230) |
Net income (loss) | $ 14,648 | $ (514,642) | $ (13,865) | $ (599,808) |
Earnings (loss) per common share: | ||||
Basic and Diluted (in dollars per share) | $ 0.25 | $ (8.94) | $ (0.24) | $ (10.43) |
Weighted-average number of common shares outstanding: | ||||
Basic (in shares) | 57,878 | 57,572 | 57,812 | 57,525 |
Diluted (in shares) | 57,978 | 57,572 | 57,812 | 57,525 |
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 $0 and $19 for the three months ended, respectively, and $0 and $57 for the nine months ended, respectively. | $ (79) | $ (60) | $ (235) | $ (180) |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $0 and $(172) for the three months ended, respectively, and $0 and $(516) for the nine months ended, respectively. | 812 | 543 | 2,435 | 1,629 |
Change in derivatives, net of tax benefit (expense) of $0 and $88 for the three months ended, respectively, and $0 and $235 for the nine months ended, respectively. | (725) | (279) | (1,175) | (743) |
Currency translation gains reclassified from accumulated other comprehensive loss | 0 | 0 | 3,150 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 263 | 76 | 550 | 29,592 |
Total other comprehensive income (loss) | 271 | 280 | 4,725 | 30,298 |
Comprehensive income (loss) | $ 14,919 | $ (514,362) | $ (9,140) | $ (569,510) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Statement [Abstract] | ||||
Reclassification of prior service credits for pension and postretirement benefit plans recorded to net income, net of tax benefit | $ 0 | $ 19 | $ 0 | $ 57 |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense | 0 | (172) | 0 | (516) |
Change in derivatives, net of tax expense | $ 0 | $ 88 | $ 0 | $ 235 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2018 | |
Operating Activities | ||
Net income (loss) | $ (13,865) | $ (599,808) |
Adjustments to net income (loss) to arrive at cash provided by operating activities: | ||
Depreciation | 36,207 | 40,112 |
Amortization of intangible assets | 14,996 | 19,284 |
Impairment of held-for-sale assets | 9,429 | 128,775 |
Intangibles impairment | 0 | 456,023 |
Amortization of deferred financing costs | 5,569 | 10,458 |
Deferred income taxes | 348 | (26,610) |
(Gain) loss on disposal of property, plant, and equipment | (48) | 8,098 |
Loss on divestitures | 431 | 4,925 |
Share-based compensation | 5,167 | 5,838 |
Changes in assets and liabilities: | ||
Net receivables | 38,098 | 47,088 |
Net inventories | (7,510) | (88,657) |
Accounts payable | (4,676) | 36,961 |
Accrued compensation | (9,865) | (6,911) |
Accrued income taxes | (3,744) | (4,872) |
Federal excise, use, and other taxes | (2,243) | (3,630) |
Pension and other postretirement benefits | (2,521) | (555) |
Other assets and liabilities | (2,719) | 34,429 |
Cash provided by operating activities | 63,054 | 60,948 |
Investing Activities: | ||
Capital expenditures | (21,977) | (30,911) |
Proceeds from sale of our Firearms business and Eyewear business (Note 7) | 156,567 | 151,595 |
Proceeds from the disposition of property, plant, and equipment | 270 | 365 |
Cash provided by investing activities | 134,860 | 121,049 |
Financing Activities: | ||
Borrowings on lines of credit | 272,321 | 440,000 |
Payments on lines of credit | (312,623) | (180,000) |
Proceeds from Issuance of Long-term Debt | 0 | 149,343 |
Payments made on long-term debt | (144,509) | (576,000) |
Payments made for debt issuance costs and prepayment premiums | (903) | (10,271) |
Settlement from former parent | 0 | 13,047 |
Other Payments to Acquire Businesses | 1,348 | 1,348 |
Shares withheld for payroll taxes | (507) | (1,001) |
Cash used for financing activities | (187,569) | (166,230) |
Effect of foreign exchange rate fluctuations on cash | (212) | (1,013) |
Increase in cash and cash equivalents | 10,133 | 14,754 |
Cash and cash equivalents at beginning of period | 21,935 | 22,870 |
Cash and cash equivalents at end of period | 32,068 | 37,624 |
Non-cash investing activity: | ||
Capital expenditures included in accounts payable | $ 1,331 | $ 1,756 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Total | Common Stock $.01 Par Value | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock |
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 | ||||||
Net Income (Loss) | (599,808) | (599,808) | ||||
Comprehensive income (loss) | (569,510) | 30,298 | ||||
Share-based compensation | 5,838 | 5,940 | (102) | |||
Restricted stock vested and shares withheld (in shares) | 71,192 | |||||
Restricted stock vested and shares withheld | (438) | (3,577) | 3,139 | |||
Employee stock purchase plan (in shares) | 13,083 | |||||
Employee stock purchase plan | 206 | (334) | 540 | |||
Settlement from former parent | 13,047 | 13,047 | ||||
Other (in shares) | 58,139 | |||||
Other | (7) | $ 2 | (1,183) | 1,174 | ||
Balance (in shares) at Dec. 30, 2018 | 57,573,713 | |||||
Balance at Dec. 30, 2018 | 666,626 | $ 576 | 1,760,075 | (756,334) | (73,998) | (263,693) |
Balance (in shares) at Sep. 30, 2018 | 57,551,275 | |||||
Balance at Sep. 30, 2018 | 1,179,199 | $ 576 | 1,759,481 | (241,692) | (74,278) | (264,888) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income (Loss) | (514,642) | |||||
Comprehensive income (loss) | (514,362) | 280 | ||||
Share-based compensation | 1,958 | 1,958 | ||||
Restricted stock vested and shares withheld (in shares) | 23,234 | |||||
Restricted stock vested and shares withheld | (156) | (1,368) | 1,212 | |||
Other (in shares) | (796) | |||||
Other | (13) | 4 | (17) | |||
Balance (in shares) at Dec. 30, 2018 | 57,573,713 | |||||
Balance at Dec. 30, 2018 | 666,626 | $ 576 | 1,760,075 | (756,334) | (73,998) | (263,693) |
Balance (in shares) at Mar. 31, 2019 | 57,710,934 | |||||
Balance at Mar. 31, 2019 | 609,040 | $ 577 | 1,752,419 | (804,969) | (82,967) | (256,020) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income (Loss) | (13,865) | (13,865) | ||||
Comprehensive income (loss) | (9,140) | 4,725 | ||||
Share-based compensation | 5,167 | 5,167 | ||||
Restricted stock vested and shares withheld (in shares) | 91,110 | |||||
Restricted stock vested and shares withheld | (348) | (5,785) | 5,437 | |||
Employee stock purchase plan (in shares) | 23,008 | |||||
Employee stock purchase plan | 163 | (777) | 940 | |||
Settlement from former parent | 0 | |||||
Other (in shares) | 84,593 | |||||
Other | 68 | $ 1 | (1,479) | 1,546 | ||
Balance (in shares) at Dec. 29, 2019 | 57,909,645 | |||||
Balance at Dec. 29, 2019 | 604,950 | $ 578 | 1,749,545 | (818,834) | (78,242) | (248,097) |
Balance (in shares) at Sep. 29, 2019 | 57,787,433 | |||||
Balance at Sep. 29, 2019 | 588,501 | $ 578 | 1,752,175 | (833,482) | (78,513) | (252,257) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income (Loss) | 14,648 | 14,648 | ||||
Comprehensive income (loss) | 14,919 | 271 | ||||
Share-based compensation | 1,593 | 1,593 | ||||
Restricted stock vested and shares withheld (in shares) | 55,385 | |||||
Restricted stock vested and shares withheld | (201) | (3,392) | 3,191 | |||
Employee stock purchase plan (in shares) | 11,980 | |||||
Employee stock purchase plan | 70 | (419) | 489 | |||
Other (in shares) | 54,847 | |||||
Other | 68 | (412) | 480 | |||
Balance (in shares) at Dec. 29, 2019 | 57,909,645 | |||||
Balance at Dec. 29, 2019 | $ 604,950 | $ 578 | $ 1,749,545 | $ (818,834) | $ (78,242) | $ (248,097) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | Dec. 29, 2019 | Mar. 31, 2019 |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Dec. 29, 2019 | |
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 outdoor sports and recreation markets. We operate in two segments, Outdoor Products and Shooting Sports. Vista Outdoor is headquartered in Anoka, Minnesota and has manufacturing and distribution facilities in 15 U.S. States, Canada, Mexico, and Puerto Rico along with international customer service, sales and sourcing operations in Asia and Europe. Vista Outdoor was incorporated in Delaware in 2014. The condensed consolidated financial statements reflect our financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States. 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, 2019 (“fiscal 2019”). 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 have been condensed or omitted. Our accounting policies are described in the notes to the consolidated financial statements in our Annual Report on Form 10-K for fiscal 2019. 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 December 29, 2019 and March 31, 2019 , our results of operations for the three and nine months ended December 29, 2019 and December 30, 2018 , and our cash flows for the nine months ended December 29, 2019 and December 30, 2018 . New Accounting Pronouncements Our accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements included in our fiscal year 2019 Annual Report on Form 10-K. Such significant accounting policies are applicable for periods prior to the following new accounting standards. Accounting Standards Adopted During this Fiscal Year In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards update ("ASU") 2016-02, “Leases" (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. We adopted ASU 2016-02 prospectively starting on April 1, 2019. As part of the adoption, we elected the package of practical expedients, which permits us under the new standard not to reassess historical lease classification, not to recognize short-term leases on our balance sheet, and not to separate lease and non-lease components for all our leases. In addition, we elected the use of hindsight to determine the lease term of our leases and applied our incremental borrowing rate based on the remaining term of our leases as of the adoption date. The impact upon adoption, on April 1, 2019, resulted in the recognition of right-of-use assets of approximately $75,749 , and lease liabilities of approximately $91,604 on our unaudited condensed consolidated balance sheet. See Note 3 , Leases , for additional information. Accounting Standards Yet to Be Adopted In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” ASU 2018-15 clarifies the accounting treatment for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. ASU 2018-15 is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. ASU 2018-15 may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are currently assessing the impact that adoption of ASU 2018-15 will have on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021, although early adoption is permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We are currently evaluating the impacts of the provisions of ASU 2019-12 on our consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Dec. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The current authoritative guidance on fair value clarifies the definition of fair value, prescribes a framework for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value, and expands disclosures about the use of fair value measurements. Fair value is defined as 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 the 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 debt is based on market quotes for each issuance. 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 13 , Long-term Debt , for additional information. Commodity Price Hedging Instruments —We periodically enter into commodity forward contracts to hedge our exposure to price fluctuations on certain commodities we use for raw material components in our manufacturing process. When actual commodity prices exceed the fixed price provided by these contracts, we receive this difference from the counterparty, and when actual commodity prices are below the contractually provided fixed price, we pay this difference to the counterparty. We consider these to be Level 2 instruments. See Note 4 , Derivative Financial Instruments , for additional information. Note Receivable —In connection with the sale of our Firearms business in July 2019, we received a $12,000 interest-free, five-year pre-payable promissory note due June 2024. Based on the general market conditions and the credit quality of the buyer at the time of the sale, we discounted the Note Receivable at an effective interest rate of 10% and estimated fair value using a discounted cash flow approach. We consider this to be a Level 3 instrument. See Note 8 , Receivables , 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 earned 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 after each milestone is achieved. The growth milestones for all three years have been met and therefore, we paid $3,371 during fiscal 2020, 2019, and 2018. The final installment was paid during the three months ended December 29, 2019. 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: December 29, 2019 March 31, 2019 Carrying Fair Carrying Fair Fixed-rate debt $ 350,000 $ 337,750 $ 350,000 $ 326,375 Variable-rate debt 179,699 179,699 364,509 364,509 |
Leases
Leases | 9 Months Ended |
Dec. 29, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease certain warehouse and distribution space, manufacturing space, office space, retail locations, equipment and vehicles. All of these leases are classified as operating leases. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. These rates are assessed on a quarterly basis. The operating lease assets also include any lease payments made less lease incentives. Leases with an initial term of twelve months or less are not recorded on the balance sheet. For operating leases, expense is recognized on a straight-line basis over the lease term. Variable lease payments associated with the Company's leases are recognized upon occurrence of the event, activity, or circumstance in the lease agreement on which those payments are assessed. Tenant improvement allowances were recorded as leasehold improvements with an offsetting adjustment included in the Company’s calculation of its right-of-use asset. Many leases include one or more options to renew, with renewal terms that can extend the lease term for three years or more. The exercise of lease renewal options is at our sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term. The amounts of assets and liabilities related to our operating leases follow. Balance Sheet Caption December 29, 2019 Assets: Operating lease assets Operating lease assets $ 67,934 Liabilities: Current: Operating lease liabilities Other current liabilities $ 11,431 Long-term: Operating lease liabilities Long-term operating lease liabilities 72,347 Total lease liabilities $ 83,778 The components of lease expense are recorded to cost of sales and selling, general and administration expenses in the unaudited condensed consolidated statements of comprehensive income (loss). The components of lease expense were as follows: Three months ended December 29, 2019 Nine months ended December 29, 2019 Fixed operating lease costs (1) $ 5,733 $ 15,349 Variable operating lease costs 846 2,085 Sublease income — (386 ) Net Lease costs $ 6,579 $ 17,048 (1) Includes short-term leases, which are immaterial. December 29, 2019 Weighted Average Remaining Lease Term (Years): Operating leases 9.74 Weighted Average Discount Rate: Operating leases 8.65 % The approximate future minimum lease payments under operating leases as of December 29, 2019 are as follows: Remainder of fiscal 2020 $ 4,855 Fiscal 2021 17,157 Fiscal 2022 13,813 Fiscal 2023 12,061 Fiscal 2024 10,650 Thereafter 70,013 Total lease payments 128,549 Less imputed interest (44,771 ) Present value of lease liabilities $ 83,778 Supplemental cash flow information related to leases is as follows: Nine months ended December 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 15,111 Right of use assets obtained in exchange for lease liabilities: Operating leases 1,848 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Dec. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We are exposed to market risks arising from adverse changes in: • commodity prices affecting the cost of raw materials, • interest rates, and • foreign exchange risks. In the normal course of business, these risks are managed through a variety of strategies, including the use of derivative instruments. See Note 13 , Long-term Debt , for additional information on our interest rate swaps. We entered into various commodity forward contracts during fiscal 2020 and 2019. These contracts are used to hedge our exposure to price fluctuations on lead we purchase for raw material components in our ammunition manufacturing process and are designated and qualify as effective cash flow hedges. The effectiveness of cash flow hedge contracts is assessed quantitatively at inception and qualitatively thereafter considering transactions critical terms and counterparty credit quality. The gains and losses on these hedges are included in accumulated other comprehensive income (loss) and are reclassified into earnings at the time the forecasted revenue or expense is recognized. The fair value of the lead forward contracts is recorded within other assets or liabilities, as appropriate. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the related change in fair value of the derivative instrument would be reclassified from accumulated other comprehensive income (loss) and recognized in earnings. The gains or losses on the lead forward contracts are recorded in inventory as the commodities are purchased and in cost of sales when the related inventory is sold. As of December 29, 2019 , we had outstanding lead forward contracts on 8.6 million pounds of lead. The derivative gains or losses in the unaudited condensed consolidated statements of comprehensive income (loss) related to lead forward contracts during the nine months ended December 29, 2019 were immaterial. The liability related to the lead forward contracts is immaterial and is recorded as part of other current liabilities. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Dec. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The following tables disaggregate our net sales by major category: Three months ended December 29, 2019 Three months ended December 30, 2018 Outdoor Products Shooting Sports Total Outdoor Products Shooting Sports Total Ammunition $ — $ 202,316 $ 202,316 $ — $ 197,554 $ 197,554 Firearms — — — — 43,775 43,775 Hunting and Shooting Accessories 101,674 — 101,674 109,287 — 109,287 Action Sports 75,661 — 75,661 73,682 — 73,682 Outdoor Recreation 45,119 — 45,119 43,473 — 43,473 Total $ 222,454 $ 202,316 $ 424,770 $ 226,442 $ 241,329 $ 467,771 Geographic Region United States $ 165,137 $ 179,864 $ 345,001 $ 160,582 $ 208,541 $ 369,123 Rest of the World 57,317 22,452 79,769 65,860 32,788 98,648 Total $ 222,454 $ 202,316 $ 424,770 $ 226,442 $ 241,329 $ 467,771 Nine months ended December 29, 2019 Nine months ended December 30, 2018 Outdoor Products Shooting Sports Total Outdoor Products Shooting Sports Total Ammunition $ — $ 626,298 $ 626,298 $ — $ 639,158 $ 639,158 Firearms — 24,577 24,577 — 134,347 134,347 Hunting and Shooting Accessories 303,484 — 303,484 327,211 — 327,211 Action Sports 227,531 — 227,531 230,117 — 230,117 Outdoor Recreation 147,670 — 147,670 160,500 — 160,500 Eyewear — — — 51,859 — 51,859 Total $ 678,685 $ 650,875 $ 1,329,560 $ 769,687 $ 773,505 $ 1,543,192 Geographic Region United States $ 516,142 $ 582,483 $ 1,098,625 $ 541,646 $ 679,144 $ 1,220,790 Rest of the World 162,543 68,392 230,935 228,041 94,361 322,402 Total $ 678,685 $ 650,875 $ 1,329,560 $ 769,687 $ 773,505 $ 1,543,192 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. Sales taxes, firearms and ammunition excise tax and other similar taxes are excluded from revenue. 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. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Dec. 29, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computation of basic earnings per share ("EPS") is based on the weighted average number of shares that were outstanding during the period. The computation of diluted EPS is based on the number of basic weighted average shares outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares, such as common stock to be issued upon exercise of options, contingently issuable shares and restricted stock units, using the treasury stock method. The following tables set forth the computation of basic and diluted earnings per share: Three months ended Nine months ended (Amounts in thousands except per share data unless otherwise indicated) December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Numerator: Net income (loss) $ 14,648 $ (514,642 ) $ (13,865 ) $ (599,808 ) Denominator: Weighted-average number of common shares outstanding basic: 57,878 57,572 57,812 57,525 Dilutive effect of share-based awards (1) 100 — — — Diluted shares 57,978 57,572 57,812 57,525 Earnings (loss) per common share: Basic and Diluted $ 0.25 $ (8.94 ) $ (0.24 ) $ (10.43 ) (1) Due to the loss from continuing operations for the three months ended December 30, 2018 and for the nine months ended December 29, 2019 and December 30, 2018 , there are no common shares added to calculate dilutive EPS because the effect would be antidilutive. Potentially dilutive securities, which were not included in the computation of diluted earnings per share, because either the effect would have been anti-dilutive or the options’ exercise prices were greater than the average market price of the common stock, were 958 for the three months ended December 29, 2019 . |
Divestitures and Held for Sale
Divestitures and Held for Sale | 9 Months Ended |
Dec. 29, 2019 | |
Divestitures and Held for Sale [Abstract] | |
Divestitures and Held for Sale | Divestitures and Held for Sale On July 5, 2019, Vista Outdoor Inc. and one of its subsidiaries, Vista Outdoor Operations LLC, sold our Firearms business, which was part of our Shooting Sports segment and comprised our Firearms reporting unit, for a total purchase price of $170,000 . We received cash proceeds net of transactions costs of $154,123 and $12,000 in the form of a sellers note due on July 5, 2024. See Notes 2 , Fair Value of Financial Instruments and 8 , Receivables for additional information. The proceeds from this sale were used to pay off the balance of our Term Loan and reduce our ABL Revolving Credit Facility. See Note 13 , Long-term Debt . During the nine months ended December 29, 2019 , we recognized a pretax loss on this divestiture of $433 , which is included in other expense. During the nine months ended December 29, 2019 , we recognized an impairment of $9,429 related to the expected loss on the sale of our Firearms business when it was held for sale. |
Receivables
Receivables | 9 Months Ended |
Dec. 29, 2019 | |
Receivables [Abstract] | |
Receivables | Receivables Net receivables are summarized as follows: December 29, 2019 March 31, 2019 Trade receivables $ 330,483 $ 356,035 Other receivables 4,102 7,106 Less: allowance for doubtful accounts and discounts (14,595 ) (18,892 ) Net receivables $ 319,990 $ 344,249 Walmart represented 12% and 14% of the total trade receivables balance as of December 29, 2019 and March 31, 2019 , respectively. No other customer represented more than 10% of our total trade receivables balance as of December 29, 2019 and March 31, 2019 . Note Receivable is summarized as follows: December 29, 2019 March 31, 2019 Principal $ 12,000 $ — Less: unamortized discount (4,176 ) — Note receivable, net, included within Deferred charges and other non-current assets $ 7,824 $ — |
Inventories
Inventories | 9 Months Ended |
Dec. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Net inventories consist of the following: December 29, 2019 March 31, 2019 Raw materials $ 75,320 $ 65,240 Work in process 35,619 32,213 Finished goods 223,790 247,038 Net inventories $ 334,729 $ 344,491 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 $24,595 and $16,227 as of December 29, 2019 and March 31, 2019 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (AOCL) | 9 Months Ended |
Dec. 29, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss (AOCL) | Accumulated Other Comprehensive Loss (AOCL) The components of AOCL, net of income taxes, are as follows: December 29, 2019 March 31, 2019 Pension and other postretirement benefits $ (72,470 ) $ (74,670 ) Derivatives (440 ) 735 Cumulative translation adjustment (5,332 ) (9,032 ) Total AOCL $ (78,242 ) $ (82,967 ) The following tables summarize the changes in the balance of AOCL, net of income tax: Three months ended December 29, 2019 Nine months ended December 29, 2019 Pension and other postretirement benefits Derivatives Cumulative translation adjustment Total Pension and other postretirement benefits Derivatives Cumulative translation adjustment Total Beginning balance in AOCL $ (73,203 ) $ 285 $ (5,595 ) $ (78,513 ) $ (74,670 ) $ 735 $ (9,032 ) $ (82,967 ) Net actuarial losses reclassified from AOCL (1) 812 — — 812 2,435 — — 2,435 Prior service costs reclassified from AOCL (1) (79 ) — — (79 ) (235 ) — — (235 ) Net change in fair value of derivatives — (725 ) — (725 ) — (1,175 ) — (1,175 ) Currency translation gains reclassified from AOCL (2) — — — — — — 3,150 3,150 Net change in cumulative translation adjustment — — 263 263 — — 550 550 Ending balance in AOCL $ (72,470 ) $ (440 ) $ (5,332 ) $ (78,242 ) $ (72,470 ) $ (440 ) $ (5,332 ) $ (78,242 ) (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) Amounts related to the foreign currency translation gains realized upon the divestiture of our Firearms business in the three months ended September 29, 2019. Three months ended December 30, 2018 Nine months ended December 30, 2018 Pension and other postretirement benefits Derivatives Cumulative translation adjustment Total Pension and other postretirement benefits Derivatives Cumulative translation adjustment Total Beginning balance in AOCL $ (65,690 ) $ 1,440 $ (10,028 ) $ (74,278 ) $ (66,656 ) $ 1,904 $ (39,544 ) $ (104,296 ) Net actuarial losses reclassified from AOCL (1) 543 — — 543 1,629 — — 1,629 Prior service costs reclassified from AOCL (1) (60 ) — — (60 ) (180 ) — — (180 ) Net change in fair value of derivatives — (279 ) — (279 ) — (743 ) — (743 ) Net change in cumulative translation adjustment — — 76 76 — — 29,592 29,592 Ending balance in AOCL $ (65,207 ) $ 1,161 $ (9,952 ) $ (73,998 ) $ (65,207 ) $ 1,161 $ (9,952 ) $ (73,998 ) (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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Dec. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets There were no changes in the carrying amount of goodwill during the nine months ended December 29, 2019 . The carrying amounts of goodwill for our Outdoor Products and Shooting Sports segments as of December 29, 2019 were $121,329 and $83,167 , respectively, for a consolidated balance of $204,496 . Net intangible assets other than goodwill consisted of the following: December 29, 2019 March 31, 2019 Gross Accumulated Total Gross Accumulated Total Trade names $ 48,360 $ (13,494 ) $ 34,866 $ 48,360 $ (10,694 ) $ 37,666 Patented technology 16,684 (10,273 ) 6,411 16,684 (9,604 ) 7,080 Customer relationships and other 238,742 (79,768 ) 158,974 238,595 (68,185 ) 170,410 Total 303,786 (103,535 ) 200,251 303,639 (88,483 ) 215,156 Non-amortizing trade names 145,364 — 145,364 145,364 — 145,364 Net intangible assets $ 449,150 $ (103,535 ) $ 345,615 $ 449,003 $ (88,483 ) $ 360,520 Amortization expense for the three months ended December 29, 2019 and December 30, 2018 was $5,214 and $5,664 , respectively, and for the nine months ended December 29, 2019 and December 30, 2018 was $14,996 and $19,284 , respectively. As of December 29, 2019 , we expect amortization expense related to these assets to be as follows: Remainder of fiscal 2020 $ 4,974 Fiscal 2021 19,886 Fiscal 2022 19,831 Fiscal 2023 19,715 Fiscal 2024 19,663 Thereafter 116,182 Total $ 200,251 |
Other Current and Non-current L
Other Current and Non-current Liabilities | 9 Months Ended |
Dec. 29, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current and Non-current Liabilities | Other Current and Non-Current Liabilities Other current and non-current liabilities consisted of the following: December 29, 2019 March 31, 2019 Other current liabilities: Accrual for in-transit inventory $ 10,374 $ 11,275 Rebate accrual 15,692 13,911 Other 74,918 71,989 Total other current liabilities $ 100,984 $ 97,175 Other non-current liabilities: Non-current portion of accrued income tax liability $ 31,402 $ 34,118 Other 14,187 29,158 Total other non-current liabilities $ 45,589 $ 63,276 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 actual past experience, our current production environment as well as specific and identifiable warranties as applicable. 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, 2019 $ 8,144 Payments made (2,786 ) Warranties issued 3,753 Other adjustments (100 ) Changes related to pre-existing warranties (79 ) Balance, December 29, 2019 $ 8,932 |
Long-term Debt
Long-term Debt | 9 Months Ended |
Dec. 29, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Long-term debt, including the current portion, consisted of the following: December 29, 2019 March 31, 2019 Credit Agreements: ABL Revolving Credit Facility $ 179,699 $ 220,000 Term Loan — 104,509 Junior Term Loan — 40,000 Total principal amount of Credit Agreements 179,699 364,509 5.875% Senior Notes 350,000 350,000 Principal amount of long-term debt 529,699 714,509 Less: unamortized deferred financing costs (5,839 ) (10,504 ) Carrying amount of long-term debt 523,860 704,005 Less: current portion — (19,335 ) Carrying amount of long-term debt, excluding current portion $ 523,860 $ 684,670 Credit Agreements —In fiscal 2019, we refinanced our Amended and Restated Credit Agreement dated April 1, 2016, by entering into the New Credit Facilities, which provide for (a) a $450,000 senior secured asset-based revolving credit facility (the “ABL Revolving Credit Facility”), comprised of $20,000 in first-in, last-out (“FILO”) revolving credit commitments and $430,000 in non-FILO revolving credit commitments, (b) a $109,343 senior secured asset-based term loan facility (the “Term Loan”) and (c) the $40,000 Junior Term Loan. The amount available under the ABL Revolving Credit Facility is the lesser of the total commitment of $450,000 or a borrowing base based on percentages of eligible receivables, inventory, and cash, minus certain reserves. As of December 29, 2019 , based on the borrowing base less outstanding borrowings of $179,699 and outstanding letters of credit of $28,436 , the amount available to us under the ABL Revolving Credit Facility was $150,072 . The New Credit Facilities each mature on November 19, 2023 (the “Maturity Date”), subject to a customary springing maturity in respect of the 5.875% Notes due 2023. The Term Loan was subject to quarterly principal repayments of $4,834 on the first business day of each January, April, July, and October, with the remaining balance due on the Maturity Date. During the nine months ended December 29, 2019 , we used proceeds from the sale of our Firearms business to pay off the balance of the Term Loan and the Junior Term Loan, and have no future required principal payments. The FILO commitments under the ABL Revolving Credit Facility are subject to reductions of $1,667 on the first business day of each fiscal quarter beginning on April 1, 2019. The balance of the FILO revolving credit commitment as of December 29, 2019 was $14,999 . Any outstanding revolving loans under the ABL Revolving Credit Facility will be payable in full on the Maturity Date. The payoff of Term Loan and the Junior Term Loan reduced our interest rate on the ABL revolving Credit Facility. As of December 29, 2019, borrowings under the ABL Revolving Credit Facility bear interest at a rate equal to, in the case of (a) non-FILO revolving credit loans, either the sum of a base rate plus a margin ranging from 0.25% to 0.75% or the sum of a LIBO rate plus a margin ranging from 1.25% to 1.75% , and (b) FILO revolving credit loans, a rate that is 1.00% higher than the rate paid on the non-FILO revolving credit loans. All such rates vary based on our Average Excess Availability under the ABL Revolving Credit Facility. As of December 29, 2019 , the margin under the (1) ABL Revolving Credit Facility was, in the case of (a) non-FILO revolving credit loans, 0.50% for base rate loans and 1.50% for LIBO rate loans and (b) FILO revolving credit loans, 1.50% for base rate loans and 2.50% for LIBO rate loans. The weighted average interest rate for our borrowings under the New Credit Facilities as of December 29, 2019 was 3.51% , excluding the impact of the interest rate swaps that are discussed below. We pay a commitment fee on the unused commitments under the ABL Revolving Credit Facility of 0.25% per annum. Substantially all domestic tangible and intangible assets of Vista Outdoor and our domestic 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 New Credit Facilities. In connection with the repayment of the Term Loan and the Junior Term Loan, unamortized debt issuance costs of $3,428 were written off during the nine months ended December 29, 2019. This expense is included in interest expense in the condensed consolidated statements of comprehensive income (loss). The remaining debt issuance costs of approximately $6,300 are being amortized over the term of the New Credit Facilities. 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 at specified redemption prices. Debt issuance costs of approximately $4,300 are being amortized to interest expense over eight years , the term of the notes. Rank and guarantees —The New Credit Facilities' 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 New Credit Facilities 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 • if such subsidiary guarantor has been released from its guarantees of indebtedness under the New Credit Facilities and all capital markets debt securities Interest rate swaps —During fiscal 2018, 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 December 29, 2019 , we had the following cash flow hedge interest rate swap in place: Notional Fair Value Pay Fixed Receive Floating Maturity Date Non-amortizing swap 100,000 24 1.629% 1.691% June 2020 The amount 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. Covenants New Credit Facilities — Our New Credit Facilities impose restrictions on us, including limitations on our ability to pay cash dividends, incur debt or liens, redeem or repurchase Vista Outdoor stock, enter into transactions with affiliates, make investments, merge or consolidate with others or dispose of assets. During the three months ending September 30, 2019, the Term Loan was paid in full, and during the three months ended December 29, 2019, the Junior Term Loan was paid in full, which triggered the financial covenants of the New Credit Facilities to be reduced. Our new requirement which is in effect beginning with the quarter ending December 29, 2019 is to maintain Excess Availability under the ABL Revolving Credit Facility of $42,500 at all times. If Excess Availability falls below $42,500 we must maintain a Consolidated Fixed Charge Coverage Ratio ("FCCR"), as defined below, of not less than 1.00 :1.00. As noted above, the Excess Availability under the ABL Revolving Credit Facility was $150,072 at December 29, 2019. If we do not comply with the covenants in any of the New Credit Facilities, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under each of the New Credit Facilities. The FCCR is Covenant EBITDA ("earnings before interest, taxes, depreciation, and amortization"), (which includes adjustments for items such as non-recurring or extraordinary items, non-cash charges related to stock-based compensation, and intangible asset impairment charges, as well as adjustments for acquired or divested business units on a pro forma basis) less capital expenditures (subject to certain adjustments) for the past four fiscal quarters, divided by fixed charges (which includes debt principal and interest payments made over the past four fiscal quarters; plus income tax payments and restricted payments over the past four fiscal quarters). 5.875% Notes —The indenture governing the 5.875% Notes contains covenants that, among other things, limit our ability to incur or permit to exist certain liens, sell, transfer or otherwise dispose of assets, consolidate, amalgamate, merge or sell all or substantially all of our assets, enter into transactions with affiliates, enter into agreements restricting our subsidiaries’ ability to pay dividends, incur additional indebtedness, pay dividends or make other distributions or repurchase or redeem our capital stock, prepay, redeem or repurchase certain debt and make loans and investments. The New Credit Facilities and the indenture governing the 5.875% Notes contain cross-default provisions so that noncompliance with the covenants within one debt agreement could also cause a default under the other debt agreements. As of December 29, 2019 , we were in compliance with the covenants of all of the debt agreements. However, we cannot provide assurance that we will be able to comply with such financial covenants in the future because of various risks and uncertainties some of which may be beyond our control. Any failure to comply with the restrictions in the New Credit Facilities may prevent us from drawing under the ABL Revolving Credit Facility and may result in an event of default under the New Credit Facilities, which default may allow the creditors to accelerate the related indebtedness and the indebtedness under our 5.875% Notes and proceed against the collateral that secures the indebtedness. We may not have sufficient liquidity to repay the indebtedness in such circumstances. Cash paid for interest on debt —Cash paid for interest on debt, including commitment fees and prepayment premium fees, for the three months ended December 29, 2019 and December 30, 2018 totaled $12,880 and $15,108 , respectively. Cash paid for interest on debt, including commitment fees, for the nine months ended December 29, 2019 and December 30, 2018 totaled $32,912 and $29,646 , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Dec. 29, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans During the three months ended December 29, 2019 , we recognized an aggregate net benefit for employee defined benefit plans of $101 compared to $186 during the three months ended December 30, 2018 . The decrease in income was primarily due to expected return on plan assets. During the nine months ended December 29, 2019 , we recognized an aggregate net benefit for employee defined benefit plans of $305 compared to $556 during the nine months ended December 30, 2018 . The decrease in income was primarily due to expected return on plan assets. Employer contributions and distributions —We made required contributions to the pension trust during the three and nine months ended December 29, 2019 and December 30, 2018 of $2,400 and $0 , respectively. For those same periods, we made no contributions to our other postretirement benefit plans, and we made no distributions to retirees under the non-qualified supplemental executive retirement plan. During the remainder of fiscal 2020 , we expect to make additional contributions to the pension trust of $1,200 . There are no expected contributions to our other postretirement benefit plans, or directly to retirees under our non-qualified supplemental executive retirement plans. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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 both the current and prior year. The income tax provisions for the three months ended December 29, 2019 and December 30, 2018 represent effective tax rates of (42.3)% and 3.4% , respectively. The decrease in the rate from the prior year quarter is primarily caused by release of uncertain tax positions in the current period. The effective tax rate for the three months ended December 29, 2019 was lower than the statutory rate primarily because of the release of uncertain tax positions. The effective tax rate for the three months ended December 30, 2018 was lower than the statutory rate primarily because of the recognition of nondeductible impairment charges. The income tax provisions for the nine months ended December 29, 2019 and December 30, 2018 represent effective tax rates of 16.4% and 4.3% , respectively. The increase in the rate from the prior year period is primarily due to the release of tax reserves for uncertain tax positions in the current period. Because of losses in the current and prior period, favorable tax adjustments cause an increase in the rate. The effective tax rate for the nine months ended December 29, 2019 was lower than the statutory rate primarily because of the loss in the current period, which caused unfavorable tax adjustments such as interest expense on uncertain tax positions, to decrease the rate, partially offset by the release of uncertain tax positions. The effective tax rate for the nine months ended December 30, 2018 was lower than the statutory rate primarily because of the nondeductible impairment charges. 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 Outdoor $13,047 to settle this matter, which was reflected as an adjustment to the distribution from Vista Outdoor 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 2012. 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. Income taxes paid, net of refunds, totaled $294 and $3,780 for the nine months ended December 29, 2019 and December 30, 2018 , respectively. Although the timing and outcome of income tax audit settlements are uncertain, it is reasonably possible that a $13,414 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 $12,286 . |
Contingencies
Contingencies | 9 Months Ended |
Dec. 29, 2019 | |
Loss Contingency [Abstract] | |
Contingencies | 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. Certain of our former subsidiaries have been identified as potentially responsible parties (“PRP”), along with other parties, in regulatory agency actions associated with hazardous waste sites. As a PRP, those former subsidiaries may be required to pay a share of the costs of the investigation and clean-up of these sites. In that event, we would be obligated to indemnify those subsidiaries for those costs. 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 $710 and $729 as of December 29, 2019 and March 31, 2019 , 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 | 9 Months Ended |
Dec. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Financial Statements | 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 and any subsidiaries of the parent company other than the subsidiary guarantors are minor. There are no significant restrictions on the Company’s ability, or the ability of any guarantor, to obtain funds from its subsidiaries through dividends or loans, and there are no material restrictions on the ability of our consolidated and unconsolidated subsidiaries to transfer funds to the Company in the form of cash dividends, loans or advances. These guarantees are senior or senior subordinated obligations, as applicable, of the applicable subsidiary guarantors. |
Operating Segment Information
Operating Segment Information | 9 Months Ended |
Dec. 29, 2019 | |
Segment Reporting [Abstract] | |
Operating Segment Information | 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. Each segment is described below: • Outdoor Products generated approximately 51% of our external sales in the nine months ended December 29, 2019 . The Outdoor Products product lines are action sports, archery/hunting accessories, outdoor cooking, golf, hydration products, optics, shooting accessories, and tactical products. 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 decoys. 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. • Shooting Sports generated approximately 49% of our external sales in the nine months ended December 29, 2019 . Shooting Sports product lines include centerfire ammunition, rimfire ammunition, shotshell ammunition, reloading components, and firearms. Our Firearms business was divested early in the second quarter ending September 29, 2019. Sales to Walmart represented 14% of our sales in the nine months ended December 29, 2019 and December 30, 2018 . No other single customer contributed 10% or more of our sales in the nine months ended December 29, 2019 and December 30, 2018 . The following summarizes our results by segment: Three months ended Nine months ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Sales to external customers: Outdoor Products $ 222,454 $ 226,442 $ 678,685 $ 769,687 Shooting Sports 202,316 241,329 650,875 773,505 Total sales to external customers $ 424,770 $ 467,771 $ 1,329,560 $ 1,543,192 Gross Profit Outdoor Products $ 56,035 $ 54,143 $ 173,190 $ 186,759 Shooting Sports 32,755 40,095 100,942 129,577 Corporate — (2 ) — (5 ) Total gross profit $ 88,790 $ 94,236 $ 274,132 $ 316,331 The sales above exclude intercompany sales between Outdoor Products and Shooting Sports of $118 and $1,749 , and of $1,251 and $5,530 for the three and nine months ended December 29, 2019 and December 30, 2018 , respectively. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 29, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Our accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements included in our fiscal year 2019 Annual Report on Form 10-K. Such significant accounting policies are applicable for periods prior to the following new accounting standards. Accounting Standards Adopted During this Fiscal Year In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards update ("ASU") 2016-02, “Leases" (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. We adopted ASU 2016-02 prospectively starting on April 1, 2019. As part of the adoption, we elected the package of practical expedients, which permits us under the new standard not to reassess historical lease classification, not to recognize short-term leases on our balance sheet, and not to separate lease and non-lease components for all our leases. In addition, we elected the use of hindsight to determine the lease term of our leases and applied our incremental borrowing rate based on the remaining term of our leases as of the adoption date. The impact upon adoption, on April 1, 2019, resulted in the recognition of right-of-use assets of approximately $75,749 , and lease liabilities of approximately $91,604 on our unaudited condensed consolidated balance sheet. See Note 3 , Leases , for additional information. Accounting Standards Yet to Be Adopted In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” ASU 2018-15 clarifies the accounting treatment for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. ASU 2018-15 is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. ASU 2018-15 may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are currently assessing the impact that adoption of ASU 2018-15 will have on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021, although early adoption is permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We are currently evaluating the impacts of the provisions of ASU 2019-12 on our consolidated financial statements. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Dec. 29, 2019 | |
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: December 29, 2019 March 31, 2019 Carrying Fair Carrying Fair Fixed-rate debt $ 350,000 $ 337,750 $ 350,000 $ 326,375 Variable-rate debt 179,699 179,699 364,509 364,509 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 29, 2019 | |
Leases [Abstract] | |
Assets And Liabilities, Lessee | The amounts of assets and liabilities related to our operating leases follow. Balance Sheet Caption December 29, 2019 Assets: Operating lease assets Operating lease assets $ 67,934 Liabilities: Current: Operating lease liabilities Other current liabilities $ 11,431 Long-term: Operating lease liabilities Long-term operating lease liabilities 72,347 Total lease liabilities $ 83,778 |
Lessee, Operating Lease, Liability, Maturity | The approximate future minimum lease payments under operating leases as of December 29, 2019 are as follows: Remainder of fiscal 2020 $ 4,855 Fiscal 2021 17,157 Fiscal 2022 13,813 Fiscal 2023 12,061 Fiscal 2024 10,650 Thereafter 70,013 Total lease payments 128,549 Less imputed interest (44,771 ) Present value of lease liabilities $ 83,778 |
Lease, Cost | Supplemental cash flow information related to leases is as follows: Nine months ended December 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 15,111 Right of use assets obtained in exchange for lease liabilities: Operating leases 1,848 The components of lease expense are recorded to cost of sales and selling, general and administration expenses in the unaudited condensed consolidated statements of comprehensive income (loss). The components of lease expense were as follows: Three months ended December 29, 2019 Nine months ended December 29, 2019 Fixed operating lease costs (1) $ 5,733 $ 15,349 Variable operating lease costs 846 2,085 Sublease income — (386 ) Net Lease costs $ 6,579 $ 17,048 (1) Includes short-term leases, which are immaterial. December 29, 2019 Weighted Average Remaining Lease Term (Years): Operating leases 9.74 Weighted Average Discount Rate: Operating leases 8.65 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Dec. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate our net sales by major category: Three months ended December 29, 2019 Three months ended December 30, 2018 Outdoor Products Shooting Sports Total Outdoor Products Shooting Sports Total Ammunition $ — $ 202,316 $ 202,316 $ — $ 197,554 $ 197,554 Firearms — — — — 43,775 43,775 Hunting and Shooting Accessories 101,674 — 101,674 109,287 — 109,287 Action Sports 75,661 — 75,661 73,682 — 73,682 Outdoor Recreation 45,119 — 45,119 43,473 — 43,473 Total $ 222,454 $ 202,316 $ 424,770 $ 226,442 $ 241,329 $ 467,771 Geographic Region United States $ 165,137 $ 179,864 $ 345,001 $ 160,582 $ 208,541 $ 369,123 Rest of the World 57,317 22,452 79,769 65,860 32,788 98,648 Total $ 222,454 $ 202,316 $ 424,770 $ 226,442 $ 241,329 $ 467,771 Nine months ended December 29, 2019 Nine months ended December 30, 2018 Outdoor Products Shooting Sports Total Outdoor Products Shooting Sports Total Ammunition $ — $ 626,298 $ 626,298 $ — $ 639,158 $ 639,158 Firearms — 24,577 24,577 — 134,347 134,347 Hunting and Shooting Accessories 303,484 — 303,484 327,211 — 327,211 Action Sports 227,531 — 227,531 230,117 — 230,117 Outdoor Recreation 147,670 — 147,670 160,500 — 160,500 Eyewear — — — 51,859 — 51,859 Total $ 678,685 $ 650,875 $ 1,329,560 $ 769,687 $ 773,505 $ 1,543,192 Geographic Region United States $ 516,142 $ 582,483 $ 1,098,625 $ 541,646 $ 679,144 $ 1,220,790 Rest of the World 162,543 68,392 230,935 228,041 94,361 322,402 Total $ 678,685 $ 650,875 $ 1,329,560 $ 769,687 $ 773,505 $ 1,543,192 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Dec. 29, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following tables set forth the computation of basic and diluted earnings per share: Three months ended Nine months ended (Amounts in thousands except per share data unless otherwise indicated) December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Numerator: Net income (loss) $ 14,648 $ (514,642 ) $ (13,865 ) $ (599,808 ) Denominator: Weighted-average number of common shares outstanding basic: 57,878 57,572 57,812 57,525 Dilutive effect of share-based awards (1) 100 — — — Diluted shares 57,978 57,572 57,812 57,525 Earnings (loss) per common share: Basic and Diluted $ 0.25 $ (8.94 ) $ (0.24 ) $ (10.43 ) (1) Due to the loss from continuing operations for the three months ended December 30, 2018 and for the nine months ended December 29, 2019 and December 30, 2018 , there are no common shares added to calculate dilutive EPS because the effect would be antidilutive. Potentially dilutive securities, which were not included in the computation of diluted earnings per share, because either the effect would have been anti-dilutive or the options’ exercise prices were greater than the average market price of the common stock, were 958 for the three months ended December 29, 2019 . |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Dec. 29, 2019 | |
Receivables [Abstract] | |
Schedule of receivables, including amounts due under long-term contracts (contract receivables) | Note Receivable is summarized as follows: December 29, 2019 March 31, 2019 Principal $ 12,000 $ — Less: unamortized discount (4,176 ) — Note receivable, net, included within Deferred charges and other non-current assets $ 7,824 $ — Net receivables are summarized as follows: December 29, 2019 March 31, 2019 Trade receivables $ 330,483 $ 356,035 Other receivables 4,102 7,106 Less: allowance for doubtful accounts and discounts (14,595 ) (18,892 ) Net receivables $ 319,990 $ 344,249 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Dec. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Net inventories consist of the following: December 29, 2019 March 31, 2019 Raw materials $ 75,320 $ 65,240 Work in process 35,619 32,213 Finished goods 223,790 247,038 Net inventories $ 334,729 $ 344,491 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (AOCL) (Tables) | 9 Months Ended |
Dec. 29, 2019 | |
Equity [Abstract] | |
Schedule of components of AOCL, net of income taxes | The components of AOCL, net of income taxes, are as follows: December 29, 2019 March 31, 2019 Pension and other postretirement benefits $ (72,470 ) $ (74,670 ) Derivatives (440 ) 735 Cumulative translation adjustment (5,332 ) (9,032 ) Total AOCL $ (78,242 ) $ (82,967 ) |
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: Three months ended December 29, 2019 Nine months ended December 29, 2019 Pension and other postretirement benefits Derivatives Cumulative translation adjustment Total Pension and other postretirement benefits Derivatives Cumulative translation adjustment Total Beginning balance in AOCL $ (73,203 ) $ 285 $ (5,595 ) $ (78,513 ) $ (74,670 ) $ 735 $ (9,032 ) $ (82,967 ) Net actuarial losses reclassified from AOCL (1) 812 — — 812 2,435 — — 2,435 Prior service costs reclassified from AOCL (1) (79 ) — — (79 ) (235 ) — — (235 ) Net change in fair value of derivatives — (725 ) — (725 ) — (1,175 ) — (1,175 ) Currency translation gains reclassified from AOCL (2) — — — — — — 3,150 3,150 Net change in cumulative translation adjustment — — 263 263 — — 550 550 Ending balance in AOCL $ (72,470 ) $ (440 ) $ (5,332 ) $ (78,242 ) $ (72,470 ) $ (440 ) $ (5,332 ) $ (78,242 ) (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) Amounts related to the foreign currency translation gains realized upon the divestiture of our Firearms business in the three months ended September 29, 2019. Three months ended December 30, 2018 Nine months ended December 30, 2018 Pension and other postretirement benefits Derivatives Cumulative translation adjustment Total Pension and other postretirement benefits Derivatives Cumulative translation adjustment Total Beginning balance in AOCL $ (65,690 ) $ 1,440 $ (10,028 ) $ (74,278 ) $ (66,656 ) $ 1,904 $ (39,544 ) $ (104,296 ) Net actuarial losses reclassified from AOCL (1) 543 — — 543 1,629 — — 1,629 Prior service costs reclassified from AOCL (1) (60 ) — — (60 ) (180 ) — — (180 ) Net change in fair value of derivatives — (279 ) — (279 ) — (743 ) — (743 ) Net change in cumulative translation adjustment — — 76 76 — — 29,592 29,592 Ending balance in AOCL $ (65,207 ) $ 1,161 $ (9,952 ) $ (73,998 ) $ (65,207 ) $ 1,161 $ (9,952 ) $ (73,998 ) (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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Dec. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill by segment | There were no changes in the carrying amount of goodwill during the nine months ended December 29, 2019 . The carrying amounts of goodwill for our Outdoor Products and Shooting Sports segments as of December 29, 2019 were $121,329 and $83,167 , respectively, for a consolidated balance of $204,496 . |
Schedule of net intangibles | Net intangible assets other than goodwill consisted of the following: December 29, 2019 March 31, 2019 Gross Accumulated Total Gross Accumulated Total Trade names $ 48,360 $ (13,494 ) $ 34,866 $ 48,360 $ (10,694 ) $ 37,666 Patented technology 16,684 (10,273 ) 6,411 16,684 (9,604 ) 7,080 Customer relationships and other 238,742 (79,768 ) 158,974 238,595 (68,185 ) 170,410 Total 303,786 (103,535 ) 200,251 303,639 (88,483 ) 215,156 Non-amortizing trade names 145,364 — 145,364 145,364 — 145,364 Net intangible assets $ 449,150 $ (103,535 ) $ 345,615 $ 449,003 $ (88,483 ) $ 360,520 |
Schedule of expected future amortization expense | As of December 29, 2019 , we expect amortization expense related to these assets to be as follows: Remainder of fiscal 2020 $ 4,974 Fiscal 2021 19,886 Fiscal 2022 19,831 Fiscal 2023 19,715 Fiscal 2024 19,663 Thereafter 116,182 Total $ 200,251 |
Other Current and Non-current_2
Other Current and Non-current Liabilities (Tables) | 9 Months Ended |
Dec. 29, 2019 | |
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: December 29, 2019 March 31, 2019 Other current liabilities: Accrual for in-transit inventory $ 10,374 $ 11,275 Rebate accrual 15,692 13,911 Other 74,918 71,989 Total other current liabilities $ 100,984 $ 97,175 Other non-current liabilities: Non-current portion of accrued income tax liability $ 31,402 $ 34,118 Other 14,187 29,158 Total other non-current liabilities $ 45,589 $ 63,276 |
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, 2019 $ 8,144 Payments made (2,786 ) Warranties issued 3,753 Other adjustments (100 ) Changes related to pre-existing warranties (79 ) Balance, December 29, 2019 $ 8,932 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Dec. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, including the current portion | Long-term debt, including the current portion, consisted of the following: December 29, 2019 March 31, 2019 Credit Agreements: ABL Revolving Credit Facility $ 179,699 $ 220,000 Term Loan — 104,509 Junior Term Loan — 40,000 Total principal amount of Credit Agreements 179,699 364,509 5.875% Senior Notes 350,000 350,000 Principal amount of long-term debt 529,699 714,509 Less: unamortized deferred financing costs (5,839 ) (10,504 ) Carrying amount of long-term debt 523,860 704,005 Less: current portion — (19,335 ) Carrying amount of long-term debt, excluding current portion $ 523,860 $ 684,670 |
Schedule of Interest Rate Derivatives | As of December 29, 2019 , we had the following cash flow hedge interest rate swap in place: Notional Fair Value Pay Fixed Receive Floating Maturity Date Non-amortizing swap 100,000 24 1.629% 1.691% June 2020 |
Operating Segment Information (
Operating Segment Information (Tables) | 9 Months Ended |
Dec. 29, 2019 | |
Segment Reporting [Abstract] | |
Summary Results by Segment | The following summarizes our results by segment: Three months ended Nine months ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Sales to external customers: Outdoor Products $ 222,454 $ 226,442 $ 678,685 $ 769,687 Shooting Sports 202,316 241,329 650,875 773,505 Total sales to external customers $ 424,770 $ 467,771 $ 1,329,560 $ 1,543,192 Gross Profit Outdoor Products $ 56,035 $ 54,143 $ 173,190 $ 186,759 Shooting Sports 32,755 40,095 100,942 129,577 Corporate — (2 ) — (5 ) Total gross profit $ 88,790 $ 94,236 $ 274,132 $ 316,331 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) $ in Thousands | 9 Months Ended | ||
Dec. 29, 2019USD ($)segmentlocation | Apr. 01, 2019USD ($) | Mar. 31, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of states in which the entity operates | location | 15 | ||
Number of operating segments | segment | 2 | ||
Operating lease assets | $ 67,934 | $ 0 | |
Present value of lease liabilities | $ 83,778 | ||
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 75,749 | ||
Present value of lease liabilities | $ 91,604 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) $ in Thousands | Jul. 05, 2019 | Sep. 01, 2016USD ($)installment | Dec. 29, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) |
Fair value of assets and liabilities | |||||
Note receivable principal | $ 12,000 | $ 0 | |||
Fair value of assets and liabilities that are measured on a recurring basis | Fair value | |||||
Fair value of assets and liabilities | |||||
Note receivable principal | $ 12,000 | ||||
Note receivable term | 5 years | ||||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 10.00% | ||||
Fair value of assets and liabilities that are not measured on a recurring basis | Carrying amount | |||||
Fair value of assets and liabilities | |||||
Fixed-rate debt | $ 350,000 | 350,000 | |||
Variable-rate debt | 179,699 | 364,509 | |||
Fair value of assets and liabilities that are not measured on a recurring basis | Fair value | |||||
Fair value of assets and liabilities | |||||
Fixed-rate debt | 337,750 | 326,375 | |||
Variable-rate debt | 179,699 | 364,509 | |||
Camp Chef | Fair value of assets and liabilities that are measured on a recurring basis | Fair value | |||||
Fair value of assets and liabilities | |||||
Contingent consideration, liability | $ 10,000 | ||||
Contingent consideration, liability, measurement period | 3 years | ||||
Contingent consideration, liability, number of installments | installment | 3 | ||||
Change in amount of contingent consideration, liability | $ 3,371 | $ 3,371 | $ 3,371 |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Mar. 31, 2019 |
Leases [Abstract] | ||
Operating lease assets | $ 67,934 | $ 0 |
Operating lease liabilities | 11,431 | |
Operating lease liabilities | 72,347 | $ 0 |
Total lease liabilities | $ 83,778 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 29, 2019USD ($) | Dec. 29, 2019USD ($) | |
Leases [Abstract] | ||
Fixed operating lease costs (1) | $ 5,733 | $ 15,349 |
Variable operating lease costs | 846 | 2,085 |
Sublease income | 0 | (386) |
Net Lease costs | $ 6,579 | $ 17,048 |
Weighted Average Remaining Lease Term (Years): | 9 years 8 months 26 days | 9 years 8 months 26 days |
Weighted Average Discount Rate: | 8.65% | 8.65% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Leases [Abstract] | |
Remainder of fiscal 2020 | $ 4,855 |
Fiscal 2021 | 17,157 |
Fiscal 2022 | 13,813 |
Fiscal 2023 | 12,061 |
Fiscal 2024 | 10,650 |
Thereafter | 70,013 |
Total lease payments | 128,549 |
Less imputed interest | (44,771) |
Present value of lease liabilities | $ 83,778 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Dec. 29, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities: | $ 15,111 |
Right of use assets obtained in exchange for lease liabilities: | $ 1,848 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) lb in Millions | 9 Months Ended |
Dec. 29, 2019lb | |
Lead Forward Contract | |
Derivative [Line Items] | |
Derivative, notional amount, mass | 8.6 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Sales, net | $ 424,770 | $ 467,771 | $ 1,329,560 | $ 1,543,192 |
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 | |||
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 345,001 | 369,123 | $ 1,098,625 | 1,220,790 |
Rest of the World | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 79,769 | 98,648 | 230,935 | 322,402 |
Ammunition | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 202,316 | 197,554 | 626,298 | 639,158 |
Firearms | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 0 | 43,775 | 24,577 | 134,347 |
Hunting and Shooting Accessories | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 101,674 | 109,287 | 303,484 | 327,211 |
Action Sports | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 75,661 | 73,682 | 227,531 | 230,117 |
Outdoor Recreation | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 45,119 | 43,473 | 147,670 | 160,500 |
Eyewear | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 0 | 51,859 | ||
Outdoor Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 222,454 | 226,442 | 678,685 | 769,687 |
Outdoor Products | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 165,137 | 160,582 | 516,142 | 541,646 |
Outdoor Products | Rest of the World | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 57,317 | 65,860 | 162,543 | 228,041 |
Outdoor Products | Hunting and Shooting Accessories | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 101,674 | 109,287 | 303,484 | 327,211 |
Outdoor Products | Action Sports | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 75,661 | 73,682 | 227,531 | 230,117 |
Outdoor Products | Outdoor Recreation | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 45,119 | 43,473 | 147,670 | 160,500 |
Outdoor Products | Eyewear | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 0 | 51,859 | ||
Shooting Sports | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 202,316 | 241,329 | 650,875 | 773,505 |
Shooting Sports | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 179,864 | 208,541 | 582,483 | 679,144 |
Shooting Sports | Rest of the World | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 22,452 | 32,788 | 68,392 | 94,361 |
Shooting Sports | Ammunition | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 202,316 | 197,554 | 626,298 | 639,158 |
Shooting Sports | Firearms | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | $ 0 | $ 43,775 | $ 24,577 | $ 134,347 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 14,648 | $ (514,642) | $ (13,865) | $ (599,808) |
Basic EPS shares outstanding (in shares) | 57,878 | 57,572 | 57,812 | 57,525 |
Dilutive effect of stock-based awards (in shares) | 100 | 0 | 0 | 0 |
Diluted EPS shares outstanding (in shares) | 57,978 | 57,572 | 57,812 | 57,525 |
Basic and Diluted (in dollars per share) | $ 0.25 | $ (8.94) | $ (0.24) | $ (10.43) |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 958 |
Divestitures and Held for Sale
Divestitures and Held for Sale (Details) - USD ($) $ in Thousands | Jul. 05, 2019 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash proceeds received from sale of business | $ 156,567 | $ 151,595 | |||
Impairment of held-for-sale assets | $ 0 | $ 83,854 | 9,429 | $ 128,775 | |
Firearm Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture | $ 170,000 | ||||
Cash proceeds received from sale of business | 154,123 | ||||
Sellers note received from sale of business | $ 12,000 | ||||
Firearm 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 | 9,429 | ||||
Other Expense | Firearm Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Pretax loss on divestiture | $ (433) |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 29, 2019 | Mar. 31, 2019 | |
Receivables [Abstract] | ||
Trade receivables | $ 330,483 | $ 356,035 |
Other receivables | 4,102 | 7,106 |
Less: allowance for doubtful accounts and discounts | (14,595) | (18,892) |
Net receivables | 319,990 | 344,249 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal | 12,000 | 0 |
Less: unamortized discount | (4,176) | 0 |
Note receivable, net, included within Deferred charges and other non-current assets | $ 7,824 | $ 0 |
Walmart | Accounts Receivable | Credit Concentration Risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 12.00% | 14.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Mar. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 75,320 | $ 65,240 |
Work in process | 35,619 | 32,213 |
Finished goods | 223,790 | 247,038 |
Net inventories | 334,729 | 344,491 |
Long-term inventories | $ 24,595 | $ 16,227 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (AOCL) (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Sep. 29, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Mar. 31, 2018 |
Equity [Abstract] | ||||||
Pension and other postretirement benefits | $ (72,470) | $ (74,670) | ||||
Derivatives | (440) | $ 285 | 735 | $ 1,161 | $ 1,440 | $ 1,904 |
Cumulative translation adjustment | (5,332) | (9,032) | ||||
Total AOCL | $ (78,242) | $ (78,513) | $ (82,967) | $ (73,998) | $ (74,278) | $ (104,296) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (AOCL) (Changes in the Balance of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Sep. 29, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Pension and other postretirement benefits | $ (72,470) | $ (72,470) | $ (74,670) | |||||
Derivatives | (440) | $ 1,161 | (440) | $ 1,161 | $ 285 | 735 | $ 1,440 | $ 1,904 |
Cumulative translation adjustment | (5,332) | (5,332) | (9,032) | |||||
Total AOCL | (78,242) | (73,998) | (78,242) | (73,998) | (78,513) | (82,967) | (74,278) | (104,296) |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $0 and $(172) for the three months ended, respectively, and $0 and $(516) for the nine months ended, respectively. | 812 | 543 | 2,435 | 1,629 | ||||
Net actuarial losses reclassified from AOCL | 812 | 543 | 2,435 | 1,629 | ||||
Prior service costs reclassified from AOCL | (79) | (60) | (235) | (180) | ||||
Net change in fair value of derivatives | (725) | (279) | (1,175) | (743) | ||||
Total net change in fair value of derivatives | (725) | (279) | (1,175) | (743) | ||||
Currency translation gains reclassified from accumulated other comprehensive loss | 0 | 0 | (3,150) | 0 | ||||
Net change in cumulative translation adjustment | 263 | 76 | 550 | 29,592 | ||||
Pension and Other Postretirement Benefits Adjustments | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Pension and other postretirement benefits | (72,470) | 65,207 | (72,470) | 65,207 | (73,203) | (74,670) | (65,690) | (66,656) |
Cumulative Translation Adjustment | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Cumulative translation adjustment | $ (5,332) | $ (9,952) | $ (5,332) | $ (9,952) | $ (5,595) | $ (9,032) | $ (10,028) | $ (39,544) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Mar. 31, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | $ 204,496 | $ 204,496 | $ 204,496 | ||
Amortization expense | 5,214 | $ 5,664 | 14,996 | $ 19,284 | |
Outdoor Products | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | 121,329 | 121,329 | |||
Shooting Sports | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | $ 83,167 | $ 83,167 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Goodwill Rollforward) (Details) - USD ($) | 3 Months Ended | |
Dec. 29, 2019 | Mar. 31, 2019 | |
Goodwill [Line Items] | ||
Goodwill, Period Increase (Decrease) | $ 0 | |
Goodwill | 204,496,000 | $ 204,496,000 |
Outdoor Products | ||
Goodwill [Line Items] | ||
Goodwill | 121,329,000 | |
Shooting Sports | ||
Goodwill [Line Items] | ||
Goodwill | $ 83,167,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Net Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Mar. 31, 2019 |
Amortizing assets | ||
Gross carrying amount | $ 303,786 | $ 303,639 |
Accumulated amortization | (103,535) | (88,483) |
Total | 200,251 | 215,156 |
Intangible assets, gross | 449,150 | 449,003 |
Net intangible assets | 345,615 | 360,520 |
Trade names | ||
Amortizing assets | ||
Non-amortizing trade names | 145,364 | 145,364 |
Trade names | ||
Amortizing assets | ||
Gross carrying amount | 48,360 | 48,360 |
Accumulated amortization | (13,494) | (10,694) |
Total | 34,866 | 37,666 |
Patented technology | ||
Amortizing assets | ||
Gross carrying amount | 16,684 | 16,684 |
Accumulated amortization | (10,273) | (9,604) |
Total | 6,411 | 7,080 |
Customer relationships and other | ||
Amortizing assets | ||
Gross carrying amount | 238,742 | 238,595 |
Accumulated amortization | (79,768) | (68,185) |
Total | $ 158,974 | $ 170,410 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Future Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Mar. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of fiscal 2020 | $ 4,974 | |
Fiscal 2021 | 19,886 | |
Fiscal 2022 | 19,831 | |
Fiscal 2023 | 19,715 | |
Fiscal 2024 | 19,663 | |
Thereafter | 116,182 | |
Total | $ 200,251 | $ 215,156 |
Other Current and Non-current_3
Other Current and Non-current Liabilities (Components of Current and Non-current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Mar. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Accrual for in-transit inventory | $ 10,374 | $ 11,275 |
Rebate accrual | 15,692 | 13,911 |
Other | 74,918 | 71,989 |
Total other current liabilities | 100,984 | 97,175 |
Non-current portion of accrued income tax liability | 31,402 | 34,118 |
Other | 14,187 | 29,158 |
Total other non-current liabilities | $ 45,589 | $ 63,276 |
Other Current and Non-current_4
Other Current and Non-current Liabilities (Product Warranty Rollforward) (Details) $ in Thousands | 9 Months Ended |
Dec. 29, 2019USD ($) | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |
Balance, March 31, 2019 | $ 8,144 |
Payments made | (2,786) |
Warranties issued | 3,753 |
Other adjustments | (100) |
Changes related to pre-existing warranties | (79) |
Balance, December 29, 2019 | $ 8,932 |
Long-term Debt (Components of L
Long-term Debt (Components of Long-term Debt) (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Mar. 31, 2019 | Aug. 11, 2015 |
Long-Term Debt | |||
Principal amount of long-term debt | $ 529,699 | $ 714,509 | |
Less: unamortized deferred financing costs | (5,839) | (10,504) | |
Carrying amount of long-term debt | 523,860 | 704,005 | |
Less: current portion | 0 | (19,335) | |
Carrying amount of long-term debt, excluding current portion | 523,860 | 684,670 | |
Credit Agreement | |||
Long-Term Debt | |||
Principal amount of long-term debt | 179,699 | 364,509 | |
Line of Credit Due 2023 | |||
Long-Term Debt | |||
Principal amount of long-term debt | 179,699 | 220,000 | |
Term Loan Due 2023 | |||
Long-Term Debt | |||
Principal amount of long-term debt | 0 | 104,509 | |
Junior Term Loan | |||
Long-Term Debt | |||
Principal amount of long-term debt | 0 | 40,000 | |
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 | 9 Months Ended | |||
Dec. 29, 2019 | Dec. 29, 2019 | Mar. 31, 2019 | Nov. 19, 2018 | Aug. 11, 2015 | |
Long-Term Debt | |||||
Principal amount of long-term debt | $ 529,699 | $ 529,699 | $ 714,509 | ||
Letters of credit outstanding, amount | 28,436 | 28,436 | |||
Line of credit facility, remaining borrowing capacity | 150,072 | 150,072 | |||
Write off of Deferred Debt Issuance Cost | 3,428 | ||||
Long-term debt | 523,860 | 523,860 | 704,005 | ||
Credit Agreement | |||||
Long-Term Debt | |||||
Unamortized debt issuance costs | 6,300 | 6,300 | |||
Term Loan Due 2023 | |||||
Long-Term Debt | |||||
Debt Instrument, Face Amount | $ 109,343 | ||||
Principal amount of long-term debt | $ 0 | 0 | 104,509 | ||
Debt instrument, periodic payment, principal | $ 4,834 | ||||
Weighted average interest rate (as a percent) | 3.51% | 3.51% | |||
Junior Term Loan | |||||
Long-Term Debt | |||||
Debt Instrument, Face Amount | 40,000 | ||||
Principal amount of long-term debt | $ 0 | $ 0 | 40,000 | ||
Line of Credit Due 2023 | |||||
Long-Term Debt | |||||
Principal amount of long-term debt | $ 179,699 | 179,699 | 220,000 | ||
Annual commitment fee on the unused portion (as a percent) | 0.25% | ||||
5.875% notes | |||||
Long-Term Debt | |||||
Principal amount of long-term debt | $ 350,000 | 350,000 | 350,000 | ||
Long-term debt, percentage bearing fixed interest, percentage rate | 5.875% | ||||
Long-term debt | $ 350,000 | ||||
Deferred finance costs gross, accordion feature | 4,300 | 4,300 | |||
Credit Agreement | |||||
Long-Term Debt | |||||
Principal amount of long-term debt | 179,699 | 179,699 | $ 364,509 | ||
Revolving Credit Facility | New Credit Facilities | |||||
Long-Term Debt | |||||
Debt Instrument, Face Amount | 450,000 | ||||
Line of Credit Facility, Current Borrowing Capacity | 42,500 | 42,500 | |||
First-in, Last-out, Revolving Credit Facility | ABL Revolving Credit Facility | |||||
Long-Term Debt | |||||
Debt Instrument, Face Amount | 20,000 | ||||
Debt instrument, periodic payment, principal | 1,667 | ||||
FILO Committment Balance - ABL Revolving Credit Facility | $ 14,999 | $ 14,999 | |||
Basis spread on variable rate margin (as a percent) | 1.00% | ||||
Non-First-in, Last-out, Revolving Credit Facility | ABL Revolving Credit Facility | |||||
Long-Term Debt | |||||
Debt Instrument, Face Amount | $ 430,000 | ||||
Non-First-in, Last-out, Revolving Credit Facility | Base Rate | ABL Revolving Credit Facility | |||||
Long-Term Debt | |||||
Basis spread on variable rate margin (as a percent) | 0.50% | ||||
Non-First-in, Last-out, Revolving Credit Facility | LIBOR | ABL Revolving Credit Facility | |||||
Long-Term Debt | |||||
Basis spread on variable rate margin (as a percent) | 1.50% | ||||
Minimum | |||||
Long-Term Debt | |||||
Debt Instrument, Consolidated Fixed Charge Coverage Ratio | 1 | ||||
Minimum | First-in, Last-out, Revolving Credit Facility | Base Rate | ABL Revolving Credit Facility | |||||
Long-Term Debt | |||||
Basis spread on variable rate margin (as a percent) | 1.50% | ||||
Minimum | First-in, Last-out, Revolving Credit Facility | LIBOR | ABL Revolving Credit Facility | |||||
Long-Term Debt | |||||
Basis spread on variable rate margin (as a percent) | 2.50% | ||||
Minimum | Non-First-in, Last-out, Revolving Credit Facility | Base Rate | ABL Revolving Credit Facility | |||||
Long-Term Debt | |||||
Basis spread on variable rate margin (as a percent) | 0.25% | ||||
Minimum | Non-First-in, Last-out, Revolving Credit Facility | LIBOR | ABL Revolving Credit Facility | |||||
Long-Term Debt | |||||
Basis spread on variable rate margin (as a percent) | 1.25% | ||||
Maximum | Non-First-in, Last-out, Revolving Credit Facility | Base Rate | ABL Revolving Credit Facility | |||||
Long-Term Debt | |||||
Basis spread on variable rate margin (as a percent) | 0.75% | ||||
Maximum | Non-First-in, Last-out, Revolving Credit Facility | LIBOR | ABL Revolving Credit Facility | |||||
Long-Term Debt | |||||
Basis spread on variable rate margin (as a percent) | 1.75% |
Long-term Debt (Narrative - 5.8
Long-term Debt (Narrative - 5.875% Notes) (Details) - USD ($) | 9 Months Ended | ||
Dec. 29, 2019 | Mar. 31, 2019 | Aug. 11, 2015 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 523,860,000 | $ 704,005,000 | |
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 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 - Interest Rate Swap Maturing June 2020 $ in Thousands | Dec. 29, 2019USD ($) |
Derivative [Line Items] | |
Notional | $ 100,000 |
Fair Value | $ 24 |
Pay Fixed | 1.629% |
Receive Floating | 1.691% |
Long-term Debt (Narrative - Cas
Long-term Debt (Narrative - Cash Paid for Interest on Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Debt Disclosure [Abstract] | ||||
Interest paid, including capitalized interest | $ 12,880 | $ 15,108 | $ 32,912 | $ 29,646 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Defined Benefit Plans | ||||
Defined benefit plan, net periodic benefit | $ 101,000 | $ 186,000 | $ 305,000 | $ 556,000 |
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 1,200,000 | 1,200,000 | ||
Pension Plan | ||||
Defined Benefit Plans | ||||
Contribution by employer | 2,400,000 | 0 | 1,200,000 | 0 |
Other Postretirement Benefit Plans, Defined Benefit | ||||
Defined Benefit Plans | ||||
Contribution by employer | 0 | 0 | 0 | 0 |
Supplemental Employee Retirement Plan | ||||
Defined Benefit Plans | ||||
Distributions by employer | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision (as a percent) | (42.30%) | 3.40% | 16.40% | 4.30% |
Settlement from former parent | $ 0 | $ (13,047) | ||
Income Taxes Paid, Net | $ 294 | $ 3,780 | ||
Potential reduction of uncertain tax benefits over the next 12 months from audit settlements | 13,414 | 13,414 | ||
Minimum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Unrecognized tax benefits that would impact effective tax rate | 0 | 0 | ||
Maximum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Unrecognized tax benefits that would impact effective tax rate | $ 12,286 | $ 12,286 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Mar. 31, 2019 |
Loss Contingency [Abstract] | ||
Accrual for environmental loss contingencies | $ 710 | $ 729 |
Operating Segment Information_2
Operating Segment Information (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2019USD ($) | Dec. 30, 2018USD ($) | Dec. 29, 2019USD ($)segment | Dec. 30, 2018USD ($) | |
Revenue, Major Customer [Line Items] | ||||
Number of operating segments | segment | 2 | |||
Major customer | Walmart | Walmart | ||
Segment Reporting Information, Intersegment Revenue | $ | $ 118 | $ 1,749 | $ 1,251 | $ 5,530 |
Sales Revenue, Net | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 14.00% | |||
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 Information_3
Operating Segment Information (Schedule of Results by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Sales, net | $ 424,770 | $ 467,771 | $ 1,329,560 | $ 1,543,192 |
Gross profit | 88,790 | 94,236 | 274,132 | 316,331 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | 0 | (2) | 0 | (5) |
Outdoor Products | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | 222,454 | 226,442 | 678,685 | 769,687 |
Outdoor Products | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | 222,454 | 226,442 | 678,685 | 769,687 |
Gross profit | 56,035 | 54,143 | 173,190 | 186,759 |
Shooting Sports | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | 202,316 | 241,329 | 650,875 | 773,505 |
Shooting Sports | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | 202,316 | 241,329 | 650,875 | 773,505 |
Gross profit | $ 32,755 | $ 40,095 | $ 100,942 | $ 129,577 |