Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | May 16, 2022 | Sep. 26, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2022 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,340 | ||
Entity Common Stock, Shares Outstanding | 56,506,406 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for the 2022 Annual Meeting of Stockholders are incorporated by reference into Part III. | ||
Entity Central Index Key | 0001616318 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --03-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Salt Lake City, Utah |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 22,584 | $ 243,265 |
Net receivables | 356,773 | 301,575 |
Net inventories | 642,976 | 454,504 |
Income tax receivable | 43,560 | 37,870 |
Other current assets | 45,050 | 27,018 |
Total current assets | 1,110,943 | 1,064,232 |
Net property, plant, and equipment | 211,087 | 197,531 |
Operating lease assets | 78,252 | 72,400 |
Goodwill | 481,857 | 86,082 |
Net intangible assets | 459,795 | 314,955 |
Deferred charges and other non-current assets | 54,267 | 29,739 |
Total assets | 2,396,201 | 1,764,939 |
Current liabilities: | ||
Accounts payable | 146,697 | 163,839 |
Accrued compensation | 79,171 | 63,318 |
Federal excise, use, and other taxes | 40,825 | 23,092 |
Other current liabilities | 127,180 | 120,568 |
Total current liabilities | 393,873 | 370,817 |
Long-term debt | 666,114 | 495,564 |
Deferred income tax liabilities | 29,304 | 8,235 |
Long-term operating lease liabilities | 80,083 | 77,375 |
Accrued pension and postemployment benefits | 22,634 | 33,503 |
Other long-term liabilities | 79,794 | 42,448 |
Total liabilities | 1,271,802 | 1,027,942 |
Commitments and contingencies (Notes 13 and 16) | ||
Issued and outstanding—56,093,456 shares as of March 31, 2022 and 58,561,016 shares as of March 31, 2021 | 560 | 585 |
Additional paid-in-capital | 1,730,927 | 1,731,479 |
Accumulated deficit | (220,810) | (694,036) |
Accumulated other comprehensive loss | (76,679) | (83,195) |
Common stock in treasury, at cost—7,870,983 shares held as of March 31, 2022 and 5,403,423 shares held as of March 31, 2021 | (309,599) | (217,836) |
Total stockholders' equity | 1,124,399 | 736,997 |
Total liabilities and stockholders' equity | $ 2,396,201 | $ 1,764,939 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Mar. 31, 2021 |
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) | 56,093,456 | 58,561,016 |
Common stock, outstanding (in shares) | 56,093,456 | 58,561,016 |
Common stock in treasury (in shares) | 7,870,983 | 5,403,423 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | |||
Sales, net | $ 3,044,621 | $ 2,225,522 | $ 1,755,871 |
Cost of sales | 1,935,389 | 1,592,562 | 1,397,105 |
Gross profit | 1,109,232 | 632,960 | 358,766 |
Operating expenses: | |||
Research and development | 28,737 | 22,538 | 22,998 |
Selling, general, and administrative | 434,273 | 337,460 | 302,554 |
Impairment of goodwill and intangibles (Note 11) | 0 | 0 | 155,588 |
Impairment of held-for-sale assets (Notes 7) | 0 | 0 | 9,429 |
Earnings (loss) before interest, income taxes, and other | 646,222 | 272,962 | (131,803) |
Other income (expense): | |||
Gain (loss) on divestitures (Note 7) | 0 | 18,467 | (433) |
Loss on extinguishment of debt (Note 13) | 0 | (6,471) | 0 |
Earnings (loss) before interest and income taxes | 646,222 | 284,958 | (132,236) |
Interest expense, net | (25,264) | (25,574) | (38,791) |
Earnings (loss) before income taxes | 620,958 | 259,384 | (171,027) |
Income tax (provision) benefit | (147,732) | 6,628 | 15,948 |
Net income (loss) | $ 473,226 | $ 266,012 | $ (155,079) |
Earnings (loss) per common share: | |||
Basic (in dollars per share) | $ 8.27 | $ 4.57 | $ (2.68) |
Diluted (in dollars per share) | $ 8 | $ 4.44 | $ (2.68) |
Weighted-average number of common shares outstanding: | |||
Basic (in shares) | 57,190,000 | 58,241,000 | 57,846,000 |
Diluted (in shares) | 59,137,000 | 59,905,000 | 57,846,000 |
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 $434, $77, and $0 | $ (1,336) | $ (236) | $ (313) |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $(1,215), $(950), and $0 | 3,744 | 2,927 | 3,247 |
Valuation adjustment for pension and postretirement benefit plans, net of tax benefit (expense) of $(1,434), $(4,055), and $0 | 4,683 | 12,496 | (21,617) |
Valuation adjustment for pension and postretirement benefit plans, net of tax benefit (expense) of $(1,434), $(4,055), and $0 | (517) | 1,587 | (2,161) |
Reclassification of currency translation gains | 0 | 0 | 3,150 |
Change in cumulative translation adjustment | (58) | 1,025 | (333) |
Total other comprehensive income (loss) | 6,516 | 17,799 | (18,027) |
Comprehensive income (loss) | $ 479,742 | $ 283,811 | $ (173,106) |
CONSOLIDATED STATEMENT OF COM_2
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Pension and other postretirement benefit liabilities: | |||
Reclassification of prior service credits for pension and postretirement benefit plans recorded to net income, tax benefit | $ (434) | $ (77) | $ 0 |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, tax expense | (1,215) | (950) | 0 |
Valuation adjustment for pension and postretirement benefit plans, tax benefit | (1,434) | (4,055) | 0 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ (168) | $ 515 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Activities | |||
Net income (loss) | $ 473,226 | $ 266,012 | $ (155,079) |
Adjustments to net income (loss) to arrive at cash provided by operating activities: | |||
Depreciation | 46,094 | 45,264 | 47,863 |
Amortization of intangible assets | 26,246 | 19,846 | 19,995 |
Amortization of deferred financing costs | 1,411 | 2,922 | 6,087 |
Change in fair value of contingent consideration | 955 | 0 | 0 |
Impairment of held-for-sale assets | 0 | 0 | 9,429 |
Impairment of goodwill and intangibles (Note 11) | 0 | 0 | 155,588 |
(Gain) loss on sale of businesses (Note 7) | 0 | (18,467) | 433 |
Deferred income taxes | 11,857 | (10,106) | (4,521) |
Loss (gain) on disposal of property, plant, and equipment | 796 | 4,565 | (1,117) |
Loss on extinguishment of debt (Note 13) | 0 | 6,471 | 0 |
Share-based compensation | 27,407 | 13,303 | 6,810 |
Changes in assets and liabilities: | |||
Net receivables | (50,631) | 17,495 | 44,256 |
Net inventories | (172,741) | (84,185) | (7,675) |
Accounts payable | (24,350) | 72,946 | (12,543) |
Accrued compensation | 14,370 | 22,617 | 1,481 |
Accrued income taxes | (3,968) | (37,397) | (12,053) |
Federal excise, use, and other taxes | 8,111 | 3,323 | (1,227) |
Pension and other postretirement benefits | (1,561) | (6,607) | (4,542) |
Other assets and liabilities | (38,911) | 27,372 | (16,440) |
Cash provided by operating activities | 318,311 | 345,374 | 76,745 |
Investing Activities | |||
Capital expenditures | (42,782) | (30,166) | (23,768) |
Proceeds from the sale of businesses | 0 | 23,654 | 156,567 |
Payments to Acquire Businesses, Net of Cash Acquired | 545,467 | 95,605 | 0 |
Proceeds from the disposition of property, plant, and equipment | 411 | 99 | 277 |
Cash (used for) provided by investing activities | (587,838) | (102,018) | 133,076 |
Financing Activities | |||
Borrowings on lines of credit | 400,000 | 73,077 | 410,634 |
Payments made on lines of credit | (230,000) | (240,333) | (463,382) |
Proceeds from issuance of long-term debt | 0 | 500,000 | 0 |
Payments made on long-term debt | 0 | (350,000) | (144,509) |
Payments made for debt issue costs and prepayment premiums | (1,061) | (6,496) | (1,033) |
Early redemption of long-term debt | 0 | (5,141) | 0 |
Deferred payments for acquisitions | 0 | 0 | (1,348) |
Proceeds from exercise of stock options | 533 | 1,386 | 315 |
Purchase of treasury shares | (113,195) | 0 | 0 |
Payment of employee taxes related to vested stock awards | (7,310) | (4,133) | (735) |
Cash provided by (used for) financing activities | 48,967 | (31,640) | (200,058) |
Effect of foreign currency exchange rate fluctuations on cash | (121) | 174 | (323) |
(Decrease) increase in cash and cash equivalents | (220,681) | 211,890 | 9,440 |
Cash and cash equivalents at beginning of year | 243,265 | 31,375 | 21,935 |
Cash and cash equivalents at end of year | 22,584 | 243,265 | 31,375 |
Noncash investing activity: | |||
Capital expenditures included in accounts payable and other accrued liabilities | 1,656 | 2,004 | 2,923 |
Contingent consideration in connection with business combinations | $ (35,964) | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock $.01 Par Value | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (in shares) at Mar. 31, 2019 | 57,710,934 | |||||
Beginning balance at Mar. 31, 2019 | $ 609,040 | $ 577 | $ 1,752,419 | $ (804,969) | $ (82,967) | $ (256,020) |
Increase (Decrease) in Stockholders' Equity | ||||||
Comprehensive income (loss) | (173,106) | (155,079) | (18,027) | |||
Share-based compensation | 6,810 | 6,810 | ||||
Restricted stock vested and shares withheld (in shares) | 202,172 | |||||
Restricted stock vested and shares withheld | (621) | (12,200) | 11,579 | |||
Employee stock purchase program (in shares) | 43,225 | |||||
Employee stock purchase program | $ 315 | (1,451) | 1,766 | |||
Treasury shares purchased (in shares) | 0 | |||||
Other (in shares) | 82,491 | |||||
Other | $ 67 | $ 3 | (1,482) | 1,546 | ||
Ending balance (in shares) at Mar. 31, 2020 | 58,038,822 | |||||
Ending Balance at Mar. 31, 2020 | 442,505 | $ 580 | 1,744,096 | (960,048) | (100,994) | (241,129) |
Increase (Decrease) in Stockholders' Equity | ||||||
Comprehensive income (loss) | 283,811 | 266,012 | 17,799 | |||
Exercise of stock options (in shares) | 92,604 | |||||
Exercise of stock options | 1,386 | (2,370) | 3,756 | |||
Share-based compensation | 13,303 | 13,303 | ||||
Restricted stock vested and shares withheld (in shares) | 304,099 | |||||
Restricted stock vested and shares withheld | (4,329) | (18,773) | 14,444 | |||
Employee stock purchase program (in shares) | 15,742 | |||||
Employee stock purchase program | $ 316 | (322) | 638 | |||
Treasury shares purchased (in shares) | 0 | |||||
Other (in shares) | 109,749 | |||||
Other | $ 5 | $ 5 | (4,455) | 4,455 | ||
Ending balance (in shares) at Mar. 31, 2021 | 58,561,016 | |||||
Ending Balance at Mar. 31, 2021 | 736,997 | $ 585 | 1,731,479 | (694,036) | (83,195) | (217,836) |
Increase (Decrease) in Stockholders' Equity | ||||||
Comprehensive income (loss) | 479,742 | 473,226 | 6,516 | |||
Exercise of stock options (in shares) | 28,921 | |||||
Exercise of stock options | 533 | (607) | 1,140 | |||
Share-based compensation | 27,407 | 27,407 | ||||
Restricted stock vested and shares withheld (in shares) | 406,691 | |||||
Restricted stock vested and shares withheld | (7,617) | (24,823) | 17,206 | |||
Employee stock purchase program (in shares) | 12,799 | |||||
Employee stock purchase program | $ 502 | (2) | 504 | |||
Treasury shares purchased (in shares) | (2,981) | (2,980,681) | ||||
Treasury shares purchased | $ (113,195) | $ (30) | (113,165) | |||
Other (in shares) | 64,710 | |||||
Other | 30 | $ 5 | (2,527) | 2,552 | ||
Ending balance (in shares) at Mar. 31, 2022 | 56,093,456 | |||||
Ending Balance at Mar. 31, 2022 | $ 1,124,399 | $ 560 | $ 1,730,927 | $ (220,810) | $ (76,679) | $ (309,599) |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Significant Accounting Policies Nature of Operations and Basis of Presentation. 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, Sporting Products and Outdoor Products. We are headquartered in Anoka, Minnesota and have 26 manufacturing and distribution facilities in the U.S., Canada, Mexico, and Puerto Rico along with international customer service, sales and sourcing operations in Asia and Europe. We were incorporated in Delaware in 2014. The consolidated financial statements reflect our financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the U.S. Reclassifications. Changes to the mathematical sign used to denote income taxes for fiscal year 2020 were made to conform to the current period presentation in the consolidated statements of comprehensive income. This reclassification had no impact to our key metrics including Earnings (loss) before income taxes or Net income (loss). Principles of Consolidation. The consolidated financial statements include our net assets and results of operations as described above. All intercompany transactions and accounts within the businesses have been eliminated. Fiscal Year. References in this report to a particular fiscal year refer to the year ended March 31 of that calendar year. Our interim quarterly periods are based on 13-week periods and end on Sundays. Use of Estimates. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ from those estimates. We review our estimates to ensure that these estimates properly reflect changes in our business or as new information becomes available. Revenue Recognition. For the majority of our contracts with customers, 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. For our contracts that include bundled and hardware and software sales, revenue related to delivered hardware and bundled software is recognized when control has transferred to the customer, which typically occurs upon shipment. Revenue allocated to unspecified software update rights is deferred and recognized on a straight-line basis over the estimated period they are expected to be provided. 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. Revenue recognition is discussed in further detail in Note 5, Revenue Recognition . For the immaterial amount of our contracts that have multiple performance obligations, which represent promises within an arrangement that are distinct, we allocate revenue to all distinct performance obligations based on their relative stand-alone selling prices (“SSPs”). When available, we use observable prices to determine SSPs. When observable prices are not available, SSPs are established that reflect our best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis. We allocate revenue and any related discounts to these performance obligations based on their relative SSPs. Cost of Sales. Cost of sales includes material, labor, and overhead costs associated with product manufacturing, including depreciation, amortization, purchasing and receiving, inspection, warehousing, product liability, warranty, and inbound and outbound shipping and handling costs. Research and Development Costs. Research and development costs consist primarily of compensation and benefits and experimental work materials for our employees who are responsible for the development and enhancement of new and existing products. Research and development costs incurred to develop new products and to enhance existing products are charged to expense as incurred. Selling, General, and Administrative Expense. Selling, general, and administrative expense includes, among other items, administrative salaries, benefits, commissions, advertising, insurance, and professional fees. Advertising Costs. Advertising and promotional costs including print ads, commercials, catalogs, and brochures are expensed in the period when the first advertisement is run. Our co-op program is structured so that certain customers are eligible for reimbursement for certain types of advertisements on qualifying product purchases and are accrued as purchases are made. Advertising costs totaled $58,028, $44,600, and $37,950 for the fiscal years ended March 31, 2022, 2021, and 2020, respectively. Cash Equivalents. Cash equivalents are all highly liquid cash investments purchased with original maturities of three months or less. Allowance for Estimated Credit Losses. We maintain an allowance for credit losses related to accounts receivable for future expected credit losses resulting from the inability or unwillingness of our customers to make required payments. We estimate the allowance based upon historical bad debts, current customer receivable balances, age of customer receivable balances, and the customers' financial condition and in relation to a representative pool of assets consisting of a large number of customers with similar risk characteristics. The allowance is adjusted as appropriate to reflect differences in current conditions as well as changes in forecasted macroeconomic conditions. Inventories. Inventories are stated at the lower of cost, determined using the first-in, first-out ("FIFO") method, or net realizable value. Inventory costs associated with work in process inventory and finished goods include material, labor, and manufacturing overhead, while costs associated with raw materials and purchased finished goods include material and inbound freight costs. We provide inventory allowances for any excess and obsolete inventories and periodically write inventory amounts down to market when costs exceed market value. Warranty Costs. We provide consumer warranties against manufacturing defects on certain products within the Sporting Products and Outdoor Products segments with warranty periods typically 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. Estimated future warranty costs are accrued at the time of sale based upon actual past experience, our current production environment as well as specific and identifiable warranties as applicable. See Note 12, Other Current Liabilities, for additional detail. Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability (the exit price) in the principal and most advantageous market for the asset or liability in an orderly transaction between market participants. We measure and disclose the fair value of nonfinancial and financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. This hierarchy requires the use of observable market data when available. The measurement of assets and liabilities at fair value are classified using the following three-tier 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—One or more significant inputs to the valuation model are unobservable. See Note 2, Fair Value of Financial Instruments, for additional disclosure regarding fair value of financial instruments. Goodwill. We test goodwill for impairment on the first day of the fourth fiscal quarter or upon the occurrence of events or changes in circumstances that indicate that the asset might be impaired. Goodwill is assigned to our reporting units, which are our operating segments, or components of an operating segment, that constitute a business for which discrete financial information is available, and for which segment management regularly reviews the operating results. During the annual impairment review process we have the option to first perform a qualitative assessment (commonly referred to as “step zero”) over relative events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value or to perform a quantitative assessment (“step one”) where we estimate the fair value of each reporting unit using both an income and market approach. We completed a step zero assessment as of January 1, 2022, and concluded there were no indicators of impairment. See Note 11, Goodwill and Intangible Assets , for discussion and details. When we perform a step one analysis to assess the recoverability of our goodwill, we determine the estimated fair value of each reporting unit and compare it to the carrying value of the reporting unit, including goodwill. When fair value is less than the carrying value of the net assets and related goodwill, an impairment charge is recognized for the excess. The fair value of each reporting unit is determined using both an income and market approach. The value estimated using a discounted cash flow model is weighted equally against the estimated value derived from the guideline company market approach method. This market approach method estimates the price reasonably expected to be realized from the sale of the reporting unit based on comparable companies. In developing the discounted cash flow analysis, our assumptions about future revenues and expenses, capital expenditures, and changes in working capital are based on our plan, as reviewed by the Board of Directors, and assume a terminal growth rate thereafter. A separate discount rate is determined for each reporting unit and these cash flows are then discounted to determine the fair value of the reporting unit. The discounted cash flow analysis is derived from valuation techniques in which one or more significant inputs are not observable (Level 3 fair value measures). Indefinite Lived Intangible Assets. Indefinite lived intangibles are not amortized and are tested for impairment annually on the first day of the fourth fiscal quarter or upon the occurrence of events or changes in circumstances that indicate that the assets might be impaired. We completed a step zero assessment as of January 1, 2022, and concluded there were no indicators of impairment on our indefinite lived intangibles. See Note 11, Goodwill and Intangible Asset s, for discussion and details. Our identifiable intangibles with indefinite lives consist of certain trademarks and tradenames. When we complete a step one assessment, the impairment test consists of a comparison of the estimated fair value of the specific intangible asset with its carrying value. The estimated fair value of these assets is measured using the relief-from-royalty method which assumes that the asset has value to the extent that the owner is relieved of the obligation to pay royalties for the benefits received from them. This method requires that we estimate the future revenue for the related brands and technology, the appropriate royalty rate, and the weighted average cost of capital. We base our fair values and estimates on assumptions we believe to be reasonable, but which are unpredictable and inherently uncertain. If the carrying amount of an asset is higher than its fair value, an impairment exists and the asset would be recorded at the estimated fair value . Our assumptions used to develop the discounted cash flow analysis require us to make significant estimates regarding future revenues and expenses, projected capital expenditures, changes in working capital, and the appropriate discount rate. The projections also take into account several factors including current and estimated economic trends and outlook, costs of raw materials and other factors that are beyond our control. If the current economic conditions were to deteriorate, or if we were to lose significant business, causing a reduction in estimated discounted cash flows, it is possible that the estimated fair value of certain reporting units or tradenames could fall below their carrying value resulting in the necessity to conduct additional impairment tests in future periods. We continually monitor the reporting units and tradenames for impairment indicators and update assumptions used in the most recent calculation of the estimated fair value of a reporting unit or tradenames as appropriate. Amortizing Intangible Assets, Long-Lived Assets. Our primary identifiable intangible assets include trademarks and tradenames, patented technology, and customer relationships. Our long-lived assets consist primarily of property, plant, and equipment, amortizing right-of-use asset related to our operating leases and amortizing costs related to cloud computing arrangements. We periodically evaluate the recoverability of the carrying amount of our long-lived assets whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable or exceeds its fair value. Business Combinations . We allocate the purchase price, including contingent consideration, of our acquisitions to the assets and liabilities acquired, including identifiable intangible assets, based on their fair values at the date of acquisition. The fair values are primarily based on third-party valuations using our management assumptions that require significant judgments and estimates. The purchase price allocated to intangibles is based on unobservable factors, including but not limited to, projected revenues, expenses, customer attrition rates, royalty rates, a weighted average cost of capital, among others. The weighted average cost of capital uses a market participant’s cost of equity and after-tax cost of debt and reflects the risks inherent in the cash flows. The fair value calculation of initial contingent consideration associated with the purchase price also uses unobservable factors such as projected revenues and expenses over the term of the contingent earn-out period, discounted for the period over which the contingent consideration is measured, and volatility rates. Based upon these assumptions, the initial contingent consideration is then valued using a Monte Carlo simulation analysis in a risk-neutral framework. The inputs used to calculate the fair value of the contingent consideration liabilities are considered to be Level 3 inputs due to the lack of relevant market activity and significant management judgment. See Note 2, Fair Value of Financial Instruments, for additional disclosure regarding fair value of financial instruments. During the measurement period of one year from the acquisition date, we continue to collect information and reevaluate our estimates and assumptions, and record any adjustments to these estimates to goodwill. See Note 7, Acquisitions and Divestitures , for additional information. Derivatives and Hedging. We mitigate the impact of changes in interest rates and commodity prices affecting the cost of raw materials with interest rate swaps and commodity forward contracts that are accounted for as designated hedges pursuant to ASC Topic 815, “Derivatives and Hedging” ("ASC Topic 815"). ASC Topic 815 requires that an entity recognize all derivatives as either assets or liabilities on the balance sheet, measure those instruments at fair value and recognize changes in the fair value of derivatives in earnings in the period of change unless the derivative qualifies as designated cash flow hedge that offsets certain exposures. Certain criteria must be satisfied in order for derivative financial instruments to be classified and accounted for as a cash flow hedge. Derivatives that are not elected for hedge accounting treatment are recorded immediately in earnings. See Note 4, Derivative Financial Instruments , for additional information. We would discontinue hedge accounting prospectively (i) if it is determined that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item, (ii) when the derivative expires or is sold, terminated, or exercised, (iii) if it becomes probable that the forecasted transaction being hedged by the derivative will not occur, (iv) if a hedged firm commitment no longer meets the definition of a firm commitment, or (v) if it is determined that designation of the derivative as a hedge instrument is no longer appropriate. The fair value of our forward contracts based on pricing models using current market rates. These contracts are classified under Level 2 of the fair value hierarchy (see Note 2, Fair Value of Financial Instruments ). Stock-Based Compensation. We account for our share-based compensation arrangements in accordance with ASC Topic 718, "Compensation—Stock Compensation" ("ASC Topic 718") which requires the measurement and recognition of compensation expense for all share-based payment awards to employees and directors based on estimated fair values. Our stock-based compensation plans, which are described more fully in Note 17, Stockholders' Equity , provide for the grant of various types of stock-based incentive awards, including performance awards, total stockholder return performance awards ("TSR awards"), performance awards with a TSR modifier, restricted stock/restricted stock units, and options to purchase common stock. The types and mix of stock-based incentive awards are evaluated on an ongoing basis and may vary based on our overall strategy regarding compensation, including consideration of the impact of expensing stock awards on our results of operations. Income Taxes. We account for income taxes under the asset and liability method in accordance with the accounting standard for income taxes. The asset and liability method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities. Under this method, changes in tax rates and laws are recognized in income in the period such changes are enacted. We record net deferred tax assets to the extent that we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations. Significant estimates are required for this analysis. If we were to determine that the amount of deferred income tax assets we would be able to realize in the future had changed, we would make an adjustment to the valuation allowance which would decrease or increase the provision for income taxes. The provision for federal, foreign, and state and local income taxes is calculated on income before income taxes based on current tax law and includes the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provision differs from the amounts currently payable because certain items of income and expense are recognized in different reporting periods for financial reporting purposes than for income tax purposes. We periodically assess our liabilities and contingencies for all periods that are currently open to examination or have not been effectively settled based on the most current available information. Where it is not more likely than not that our tax position will be sustained, we record the entire resulting tax liability and when it is more likely than not of being sustained, we record our best estimate of the resulting tax liability. To the extent our assessment of the tax outcome of these matters changes, such change in estimate will impact the income tax provision in the period of change. It is our policy to record interest and penalties related to income taxes as part of the income tax expense for financial reporting purposes. Worker's Compensation. The liability for losses under our worker's compensation program has been actuarially determined. The balance for worker's compensation liability was $7,354 and $6,214 as of March 31, 2022 and 2021, respectively. Translation of Foreign Currencies. Assets and liabilities of foreign subsidiaries are translated at current exchange rates and the effects of these translation adjustments are reported as a component of accumulated other comprehensive loss ("AOCL") in stockholders' equity. Income and expenses in foreign currencies are translated at the average exchange rate during the period. Accumulated Other Comprehensive Loss. The components of AOCL, net of income taxes, are as follows: March 31, 2022 2021 Derivatives $ (356) $ 161 Pension and other postretirement benefit liabilities (71,075) (78,166) Cumulative translation adjustment (5,248) (5,190) Total accumulated other comprehensive loss $ (76,679) $ (83,195) The following table details the amounts reclassified from AOCL to earnings as well as the changes in derivatives, pension and other postretirement benefits and foreign currency translation, net of income tax: Years ended March 31, 2022 2021 Derivatives Pension and other Postretire-ment Benefits Cumulative translation adjustment Total Derivatives Pension and other Postretire-ment Benefits Cumulative translation adjustment Total Beginning of year AOCL $ 161 $ (78,166) $ (5,190) $ (83,195) $ (1,426) $ (93,353) $ (6,215) $ (100,994) Change in fair value of derivatives 1,224 — — 1,224 1,309 — — 1,309 Net loss (gain) reclassified from AOCL (1,741) — — (1,741) 278 — — 278 Net actuarial losses reclassified from AOCL (1) — 3,744 — 3,744 — 2,927 — 2,927 Prior service costs reclassified from AOCL (1) — (1,336) — (1,336) — (236) — (236) Valuation adjustment for pension and postretirement benefit plans (1) — 4,683 — 4,683 — 12,496 — 12,496 Net change in cumulative translation adjustment — — (58) (58) — — 1,025 1,025 End of year AOCL $ (356) $ (71,075) $ (5,248) $ (76,679) $ 161 $ (78,166) $ (5,190) $ (83,195) (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. See Note 14, Employee Benefit Plans . Accounting Standards Adopted by us in Fiscal Year 2022 In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06, " Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. " This ASU simplifies the accounting for convertible instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. Also, this ASU requires the application of the if-converted method for calculating diluted earnings per share and provided that the treasury stock method will be no longer available. The new guidance is effective for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. Entities may adopt the guidance through either a modified retrospective method of transition or a fully retrospective method of transition. We early adopted ASU 2020-06 on April 1, 2021 with no impact on our financial statements. On April 1, 2021, we adopted ASU No. 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ” This ASU removes specific exceptions to the general principles of ASC Topic 740, "Accounting for Income Taxes" and simplifies certain U.S. GAAP requirements. This update is effective for fiscal years beginning after December 15, 2020. The adoption of this standard does not have a material impact on our consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU No. 2021-08, “ Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ” This ASU requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, “Revenue from Contracts with Customers”. At the acquisition date, the company acquiring the business should record related revenue, as if it had originated the contract. Before the update such amounts were recognized by the acquiring company at fair value. This update is effective for fiscal years beginning after December 15, 2022. We early adopted ASU 2021-08 during the third quarter of fiscal year 2022, and retroactively applied it to periods beginning on April 1, 2021. The adoption of this standard did not have a material impact to our purchase accounting and our consolidated financial statements and related disclosures. There are no other new accounting pronouncements that are expected to have a significant impact on our consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We measure and disclose our financial assets and liabilities at fair value on a recurring and nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability (the exit price) in the principal and most advantageous market for the asset or liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified using the three-tier hierarchy. See Note 1, Significant Accounting Policies, for additional information. The following section describes the valuation methodologies we use to measure our financial instruments at fair value on a recurring basis: 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, fiscal year 2020, 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 and below for fair value amounts related to the Note Receivable. Contingent Consideration In connection with some of our acquisitions, we recorded contingent consideration liabilities that can be earned by the sellers upon achievement of certain milestones. The liabilities are measured on a recurring basis and recorded at fair value, using a discounted cash flow analysis or a Monte Carlo simulation analysis in a risk-neutral framework with assumptions for volatility, market price of risk adjustment, risk-free rate, and cost of debt, utilizing revenue projections for the respective earn-out period, corresponding targets and approximate timing of payments as outlined in the purchase agreements. The inputs used to calculate the fair value of the contingent consideration liabilities are considered to be Level 3 inputs due to the lack of relevant market activity and significant management judgment. Changes in the fair value of the contingent consideration obligation results from changes in discount periods and rates, and changes in probability assumptions with respect to the likelihood of achieving the performance targets. The fair value adjustments are recorded in Selling, general, and administrative in the consolidated statement of comprehensive income (loss). As of March 31, 2022, the estimated fair values of earn-outs payable related to our acquisitions of QuietKat, Fiber, Stone Glacier, and HEVI-Shot are $23,134, $3,625, $9,939, and $392, respectively. See Note 7, Acquisitions and Divestitures , for additional information. Following is a summary of our long-term contingent consideration liability Level 3 activity during fiscal year 2022: Balance, March 31, 2021 $ 153 Additions 35,964 Reclassification to current liabilities (78) Increase in fair value 955 Balance, March 31, 2022 $ 36,994 Contingent consideration liabilities are reported under the following captions in the consolidated balance sheets: March 31, 2022 2021 Other current liabilities $ 96 $ 18 Other long-term liabilities 36,994 153 Total $ 37,090 $ 171 Disclosures about the Fair Value of Financial Instruments The carrying amount of our receivables, inventory, accounts payable, and accrued liabilities as of March 31, 2022 and March 31, 2021 approximates fair value because of the short maturity of these instruments. The carrying values of cash and cash equivalents as of March 31, 2022 and March 31, 2021 are categorized within Level 1 of the fair value hierarchy. The table below discloses information about carrying values and estimated fair value relating to our financial assets and liabilities: March 31, 2022 2021 Carrying Fair Carrying Fair Fixed rate debt (1) $ 500,000 $ 460,000 $ 500,000 $ 493,750 Variable rate debt (2) 170,000 170,000 — — (1) Fixed rate debt —In fiscal year 2021, we issued $500,000 aggregate principal amount o f 4.5% S enior Notes which will mature on March 15, 2029. These notes are unsecured and senior obligations. The fair value of the fixed-rate debt is based on market quotes for each issuance. We consider these to be Level 2 instruments. See Note 13, Long-term Debt, for information on our credit facilities, including certain risks and uncertainties. (2) Variable rate debt — The carrying value of the amounts outstanding under our ABL Revolving Credit Facility approximates the fair value because the interest rates are variable and reflective of market rates as of March 31, 2022. The fair value of this debt is categorized within Level 2 of the fair value hierarchy based on the observable market borrowing rates. See Note 13, Long-term Debt, for additional information on our credit facilities, including related certain risks and uncertainties. We measure certain nonfinancial assets at fair value on a nonrecurring basis if certain indicators are present. These assets include long-lived assets that are written down to fair value when they are held for sale or determined to be impaired. See Note 1, Significant Accounting Policies, |
Leases
Leases | 12 Months Ended |
Mar. 31, 2022 | |
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 our leases are recognized upon occurrence of the event, activity, or circumstance in the lease agreement on which those payments are assessed. Tenant improvement allowances are recorded as leasehold improvements with an offsetting adjustment included in our 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 up to five years. 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 were as follows. March 31, Balance Sheet Caption 2022 2021 Assets: Operating lease assets Operating lease assets $ 78,252 $ 72,400 Liabilities: Current: Operating lease liabilities Other current liabilities $ 11,804 $ 10,044 Long-term: Operating lease liabilities Long-term operating lease liabilities 80,083 77,375 Total lease liabilities $ 91,887 $ 87,419 The components of lease expense are recorded to cost of sales and selling, general, and administration expenses in the consolidated statements of comprehensive income (loss). The components of lease expense were as follows: Years ended March 31, 2022 2021 Fixed operating lease costs (1) $ 22,917 $ 20,759 Variable operating lease costs 3,322 2,756 Operating and Sublease income (483) (802) Net lease costs $ 25,756 $ 22,713 (1) Includes short-term leases, which are immaterial. The weighted average remaining lease term and weighted average discount rate is as follows: March 31, 2022 2021 Weighted Average Remaining Lease Term (Years): Operating leases 8.65 9.32 Weighted Average Discount Rate: Operating leases 7.99 % 8.64 % The approximate future minimum lease payments under operating leases were as follows: Fiscal year 2023 $ 18,484 Fiscal year 2024 16,353 Fiscal year 2025 14,698 Fiscal year 2026 13,200 Fiscal year 2027 12,319 Thereafter 55,576 Total lease payments 130,630 Less imputed interest (38,743) Present value of lease liabilities $ 91,887 Supplemental cash flow information related to leases is as follows: Years ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 19,268 $ 17,524 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 15,537 $ 13,167 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments In the normal course of business, we are exposed to market risks arising from adverse changes in: • commodity prices affecting the cost of raw materials, and • interest rates We use designated cash flow hedges to manage our level of exposure. We entered into various commodity forward contracts during fiscal year 2022 in accordance with our accounting policies in Note 1, Significant Accounting Policies . These contracts are used to hedge our exposure to price fluctuations on lead we |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Consistent with our changes in reportable segments during the third quarter of fiscal year 2022, see Note 17, Operating Segment Information, for additional information, we changed our presentation of disaggregated revenue to align with the new segment structure and names. Prior comparative periods have been restated to conform to the change in our reportable segments. The following tables disaggregate our net sales by major product category: Years ended March 31, 2022 2021 Sporting Products Outdoor Products Total Sporting Products Outdoor Products Total Sporting Products (1) $ 1,737,891 $ — $ 1,737,891 $ 1,119,754 $ — $ 1,119,754 Outdoor Accessories (2) — 442,348 442,348 — 398,938 398,938 Action Sports (3) — 401,984 401,984 — 364,454 364,454 Outdoor Recreation (4) — 462,398 462,398 — 342,376 342,376 Total $ 1,737,891 $ 1,306,730 $ 3,044,621 $ 1,119,754 $ 1,105,768 $ 2,225,522 Geographic Region United States $ 1,632,507 $ 976,939 $ 2,609,446 $ 1,038,403 $ 867,551 $ 1,905,954 Rest of the World 105,384 329,791 435,175 81,351 238,217 319,568 Total $ 1,737,891 $ 1,306,730 $ 3,044,621 $ 1,119,754 $ 1,105,768 $ 2,225,522 (1) Sporting Products includes the Ammunition operating segment. (2) Outdoor Accessories includes the Outdoor Accessories (formerly named Hunting and Shooting) operating segment and our Stone Glacier business. (3) Action Sports includes the operating segments: Sports Protection and Cycling. (4) Outdoor Recreation includes the operating segments: Hydration, Outdoor Cooking, and Golf. We sell our products in the U.S. and internationally. A majority of our sales are concentrated in the U.S. See Note 18, Operating Segment Information for information on international revenues. Product Sales For the majority of our contracts with customers, 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. For our contracts that include bundled and hardware and software sales, revenue related to delivered hardware and bundled software is recognized when control has transferred to the customer, which typically occurs upon shipment. Revenue allocated to unspecified software update rights is deferred and recognized on a straight-line basis over the estimated period they are expected to be provided. 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. 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, federal excise taxes, and other similar taxes are excluded from revenue. For the immaterial amount of our contracts that have multiple performance obligations, which represent promises within an arrangement that are distinct, we allocate revenue to all distinct performance obligations based on their relative stand-alone selling prices (“SSPs”). When available, we use observable prices to determine SSPs. When observable prices are not available, SSPs are established that reflect our best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis. We allocate revenue and any related discounts to these performance obligations based on their relative SSPs. 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. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Mar. 31, 2022 | |
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. In computing EPS for the fiscal years presented, earnings, as reported for each respective period, is divided by the number of shares below: Years ended March 31, 2022 2021 2020 Numerator: Net income (loss) $ 473,226 $ 266,012 $ (155,079) Denominator: Weighted-average number of common shares outstanding, basic 57,190 58,241 57,846 Dilutive effect of stock-based awards (1) 1,947 1,664 — Diluted shares 59,137 59,905 57,846 Earnings (loss) per common share: Basic $ 8.27 $ 4.57 $ (2.68) Diluted $ 8.00 $ 4.44 $ (2.68) |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures During the fourth quarter of fiscal year 2022, we acquired Stone Glacier, a premium brand focused on ultralightweight, performance hunting gear designed for backcountry use. The addition of Stone Glacier allows us to enter the packs, camping equipment, and technical apparel categories with a fast-growing brand and provide a foundation for us to leverage camping category synergies. The results of this business are reported within the Outdoor Products segment. Contingent consideration with an initial fair value of $9,939 was included in the purchase price. See Note 2, Fair Value of Financial Instruments , for information related to the fair value calculation. We accounted for the acquisition as a business combination using the acquisition method of accounting, and performed a preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The preliminary fair values of acquired assets and liabilities assumed represent management’s estimate of fair value and are subject to change if additional information, such as post-close working capital adjustments becomes available. We expect to finalize the purchase price allocation as soon as practicable within the measurement period, but not later than one year following the acquisition date. The acquisition is not significant to our consolidated financial statements and as such we have not included disclosures of the allocation of the purchase price or any pro forma information. During the third quarter of fiscal year 2022, we acquired Fiber Energy Products, a leader in all-natural wood grilling pellets. This strategic transaction secures a continuous supply of pellets for our Camp Chef business and expands our revenue in a consumable category. The results of this business are reported within the Outdoor Products segment. Contingent consideration with an initial fair value of $3,625 was included in the purchase price. See Note 2, Fair Value of Financial Instruments , for more information related to the fair value calculation. We accounted for the acquisition as a business combination using the acquisition method of accounting, and performed an allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair values of acquired assets and liabilities assumed represent management’s estimate of fair value. We finalized the purchase price allocation during the fourth quarter of fiscal year 2022, and no significant changes were recorded. The acquisition is not significant to our consolidated financial statements and as such we have not included disclosures of the allocation of the purchase price or any pro forma information. During the third quarter of fiscal year 2022, we acquired Foresight, a leading designer and manufacturer of golf performance analysis, entertainment, and game enhancement technologies for approximately $470,772. The purchase agreement includes $5,599 related to employee retention payments, which will be accounted for separately from the business combination as post combination compensation expense. Contingent payments of up to $25,000 if certain net sales targets are met will also be accounted for separately from the business combination as post combination compensation expense. We used cash on hand and available liquidity under our 2021 ABL Revolving Credit Facility to complete the transaction. The results of this business are reported within the Outdoor Products segment. Foresight's net sales of $61,173 and net income of $18,423 since the acquisition date, September 28, 2021, are included in our consolidated results for the fiscal year ended March 31, 2022, and are reflected in the Outdoor Products segment. We accounted for the acquisition as a business combination using the acquisition method of accounting. The purchase price allocation below was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The preliminary fair values of acquired assets and liabilities assumed represent management’s estimate of fair value and are subject to change if additional information becomes available. We expect to finalize the purchase price allocation as soon as practicable within the measurement period, but not later than one year following the acquisition date. The excess of the consideration transferred over the estimated fair value of the net assets received has been recorded as goodwill. The factors that contributed to the recognition of goodwill primarily relate to acquisition-driven anticipated cost savings and synergies. Assembled workforce is not recognized separate and apart from goodwill as it is neither separable nor contractual in nature. The goodwill is deductible for tax purposes. Foresight preliminary purchase price allocation: September 28, 2021 Total consideration transferred $ 470,772 Fair value of assets acquired: Accounts receivable $ 2,806 Inventories 10,780 Intangible assets 131,500 Property, plant, and equipment 1,870 Operating lease assets 6,506 Other assets 2,006 Total assets 155,468 Fair value of liabilities assumed: Accounts payable 6,177 Customer deposits 2,084 Long-term operating lease liabilities 5,961 Contract liabilities 2,992 Other liabilities 1,729 Other long-term liabilities 9,182 Total liabilities 28,125 Net assets acquired 127,343 Goodwill $ 343,429 Foresight intangible assets above include: Value Useful life (years) Tradenames $ 42,500 20 Patented technology 19,900 5 to 10 Customer Relationships 69,100 5 to 15 Foresight supplemental pro forma data: The following unaudited pro forma financial information presents our results as if the Foresight acquisition had been completed on April 1, 2020: Years ended March 31, 2022 2021 Sales, net $ 3,088,220 $ 2,296,413 Net income 515,345 268,547 The unaudited supplemental pro forma data above includes the following significant non-recurring adjustments to net income: Years ended March 31, 2022 2021 Fees for advisory, legal, and accounting services (1) $ (3,080) $ 3,080 Inventory step-up, net (2) (1,247) $1,247 Interest (3) 2,203 6,565 Depreciation & amortization (4) (5) 4,961 8,122 Income tax provision (6) 3,520 5,520 (1) During the fiscal year ended March 31, 2022, we incurred a total of $3,080 in acquisition related costs, including legal and other professional fees, related to the acquisition, all of which were reported in selling, general, and administrative expense in the consolidated statements of comprehensive income. This adjustment is to show the results as if those fees were incurred during the first quarter of fiscal 2021. (2) Adjustment reflects the increased cost of goods sold expense resulting from the fair value step-up in inventory which was expensed in full during the third quarter of fiscal year 2022. This adjustment is to show the results as if that expense was incurred during the first quarter of fiscal 2021. (3) Adjustment to reflect an increase in interest expense resulting from assumed advances to complete the transaction on our 2018 New Credit Facilities prior to March 31, 2021 and our 2021 ABL Revolving Credit Facility after March 31, 2021. (4) Adjustment for depreciation related to the revised fair-value basis of the acquired property, plant and equipment and change in estimated useful lives. (5) Adjustment for amortization of acquired intangible assets. (6) Income tax effect of the adjustments made at a blended federal and state statutory rate including the impact of the valuation allowance. The unaudited pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of results of operations that would have been achieved had the acquisition taken place on the date indicated, or of our future consolidated results of operations. The pro forma financial information presented above has been derived from our historical consolidated financial statements and from the historical accounting records of Foresight. During the first quarter of fiscal year 2022, we acquired QuietKat, an electric bicycle company that specializes in designing, manufacturing, and marketing rugged, all-terrain eBikes. The results of this business are reported within the Outdoor Products segment. We accounted for the acquisition as a business combination using the acquisition method of accounting, and performed a preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The preliminary fair values of acquired assets and liabilities assumed represent management’s estimate of fair value and are subject to change if additional information, such as post-close working capital adjustments becomes available. We expect to finalize the purchase price allocation as soon as practicable within the measurement period, but not later than one year following the acquisition date. Contingent consideration with an initial fair value of $22,400 was included in the purchase price. See Note 2, Fair Value of Financial Instruments , for information related to the fair value calculation. In addition to the consideration we paid at closing, $13,000 was paid to key members of QuietKat management and is considered compensation that will be expensed over approximately three years, provided the key members continue their employment with us through the respective milestone dates. The acquisition is not significant to our consolidated financial statements and as such we have not included disclosures of the allocation of the purchase price or any pro forma information. During the fourth quarter of fiscal year 2021, we acquired HEVI-Shot Ammunition, which added specialized lead-free ammunition capabilities and another iconic brand to our ammunition portfolio. Contingent consideration with an initial fair value of $176 was included in the purchase price. See Note 2, Fair Value of Financial Instruments , for information related to the fair value calculation. We accounted for the acquisition as a business combination using the acquisition method of accounting, and performed an allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair values of acquired assets and liabilities assumed represent management’s estimate of fair value. We finalized the purchase price allocation during the first quarter of fiscal year 2022, and no significant changes were recorded. During the third quarter of fiscal year 2021, we acquired certain assets related to Remington Outdoor Company, Inc.’s ("Remington") ammunition and accessories businesses, including Remington's ammunition manufacturing facility in Lonoke, Arkansas and related intellectual property. The aggregate consideration of the transaction including working capital adjustments was $81,691 for the net assets acquired, subject to certain customary closing adjustments. We funded the acquisition using a combination of approximately $51,691 of cash on hand and approximately $30,000 drawn from our existing asset-based revolving credit facility. The acquisition will allow us to leverage our current manufacturing infrastructure, distribution channels and scale to restore efficiency, profitability and sustainability to the Remington ammunition and accessories business. We accounted for the acquisition of Remington as a business combination using the acquisition method of accounting. The purchase price allocation below was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair values of acquired assets and liabilities assumed represent management’s estimate of fair value. We finalized the purchase price allocation during the fourth quarter of fiscal year 2021, and no significant changes were recorded. The excess of the consideration transferred over the estimated fair value of the net assets received has been recorded as goodwill. The factors that contributed to the recognition of goodwill primarily relate to acquisition-driven anticipated cost savings and synergies along with the assembled workforce acquired. Assembled workforce is not recognized separate and apart from goodwill as it is neither separable nor contractual in nature. The goodwill is deductible for tax purposes. The results of this business are reported in our Sporting Products segment. Remington Purchase Price Allocation: October 12, 2020 Total purchase price: Cash paid $ 81,400 Cash paid for working capital 291 Total purchase price 81,691 Fair value of assets acquired: Inventories $ 20,021 Intangible assets 26,200 Property, plant, and equipment 31,200 Other assets 3,363 Total assets 80,784 Fair value of liabilities assumed: Accounts payable 311 Other liabilities 2,969 Total liabilities 3,280 Net assets acquired 77,504 Goodwill $ 4,187 Intangible assets above include: Intangible assets above include: Value Useful life (years) Indefinite lived tradenames $ 24,500 Indefinite Customer relationships 1,700 20 Supplemental Pro Forma Data: The following pro forma financial information presents our results as if the Remington acquisition had been completed on April 1, 2019: Years ended March 31, 2021 2020 Sales, net $ 2,298,396 $ 1,933,699 Net income (loss) 255,022 (205,399) The unaudited supplemental pro forma data above include the following significant non-recurring adjustments to net income: Years ended March 31, 2021 2020 Fees for advisory, legal, and accounting services (1) $ (3,429) $ 3,429 Inventory step-up, net (2) (400) 400 Interest (3) 835 3,538 Depreciation (4) 1,902 3,804 Amortization (5) 42 84 Income taxes (6) 2,324 — (1) Adjustment for fees that were incurred in connection with the acquisition of Remington during fiscal year 2021 as if those fees were incurred during the first quarter of fiscal year 2020. Costs were recorded in selling, general, and administrative expense. We paid a total of $3,429 in transaction costs. (2) Adjustment reflects the increased cost of goods sold expense resulting from the fair value step-up in inventory which was expensed over the first inventory cycle. (3) Adjustment to reflect an increase in interest expense resulting from interest on the 2018 ABL Revolving Credit Facility . (4) Adjustment for depreciation related to the revised basis of the acquired property, plant, and equipment and change in estimated useful lives. (5) Adjustment for amortization of acquired intangible assets. (6) Income tax effect of the adjustments made at a blended federal and state statutory rate including the impact of the valuation allowance. The unaudited pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of results of operations that would have been achieved had the acquisition taken place on the date indicated, or of our future consolidated results of operations. The pro forma financial information presented above has been derived from our historical consolidated financial statements and from the historical accounting records of Remington. Divestiture of Businesses During the third quarter of fiscal year 2021, we sold a non-strategic business in our Sporting Products segment. As part of the agreement, we provided limited transition services during fiscal 2021. During the three months ended December 27, 2020, we recognized a pretax gain on this divestiture of approximately $18,467, which was included in other income/(expense) on the consolidated statement of comprehensive income (loss). This transaction did not meet the criteria for discontinued operations as it did not represent a strategic shift that will have a major effect on our ongoing operations. The assets of this business represented a portion of our Ammunition reporting unit. During the fourth quarter of fiscal year 2020, Vista Outdoor Inc. and one of its subsidiaries, Vista Outdoor Operations LLC, sold our Firearms business, which was part of our Sporting Products 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. During fiscal year 2020, we recognized a pretax loss on this divestiture of $433, which is included in other income/(expense) on the consolidated statement of comprehensive income (loss). |
Receivables
Receivables | 12 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Receivables | Receivables Our trade accounts receivable are recorded at net realizable value, which includes an appropriate allowance for estimated credit losses as described in Note 1, Significant Accounting Policies . We maintain an allowance for credit losses related to accounts receivable for future expected credit losses resulting from the inability or unwillingness of our customers to make required payments. We estimate the allowance based upon historical bad debts, current customer receivable balances, age of customer receivable balances and the customers' financial condition, and in relation to a representative pool of assets consisting of a large number of customers with similar risk characteristics. The allowance is adjusted as appropriate to reflect differences in current conditions as well as changes in forecasted macroeconomic conditions. Receivables that do not share risk characteristics are evaluated on an individual basis, including those associated with customers that have a higher probability of default. Net receivables are summarized as follows: March 31, 2022 2021 Trade receivables $ 357,584 $ 307,098 Other receivables 13,699 7,899 Less: allowance for estimated credit losses and discounts (14,510) (13,422) Net receivables $ 356,773 $ 301,575 Walmart accounted for 14% and 18% of the total trade receivables balance as of March 31, 2022 and 2021, respectively. No other customer represented more than 10% of total trade receivables balance as of March 31, 2022 and 2021. The following provides a reconciliation of the activity related to the allowance for estimated credit losses and discounts for the periods presented: Balance, March 31, 2020 $ 14,760 Provision for credit losses 1,817 Write-off of uncollectible amounts, net of recoveries (1,875) Other adjustments (1,280) Balance, March 31, 2021 13,422 Provision for credit losses 2,350 Write-off of uncollectible amounts, net of recoveries (1,188) Other adjustments (74) Balance, March 31, 2022 $ 14,510 Note Receivable, see Note 2, Fair Value of Financial Instruments , is summarized as follows: March 31, 2022 2021 Principal $ 12,000 $ 12,000 Less: unamortized discount (2,308) (3,189) Note receivable, net, included within deferred charges and other non-current assets $ 9,692 $ 8,811 |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Net inventories consist of the following: March 31, 2022 2021 Raw materials $ 220,425 $ 133,970 Work in process 60,390 47,829 Finished goods 362,161 272,705 Net inventories $ 642,976 $ 454,504 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment is stated at cost and depreciated over estimated useful lives using a straight-line method. Machinery and equipment are depreciated over 1 to 20 years and buildings and improvements are depreciated over 1 to 30 years. Depreciation expense was $46,094, $45,264, and $47,863 in fiscal years 2022, 2021, and 2020, respectively. We review property, plant, and equipment for impairment when indicators of potential impairment are present. When such impairment is identified, it is recorded as a loss in that period. Maintenance and repairs are charged to expense as incurred. Major improvements that extend useful lives are capitalized and depreciated. The cost and accumulated depreciation of property, plant, and equipment retired or otherwise disposed of are removed from the related accounts, and any residual values are charged or credited to income. Property, plant, and equipment consists of the following: March 31, 2022 2021 Land $ 12,575 $ 10,844 Buildings and improvements 84,916 78,185 Machinery and equipment 461,635 456,001 Property not yet in service 19,672 17,952 Gross property, plant, and equipment 578,798 562,982 Less: accumulated depreciation (367,711) (365,451) Net property, plant, and equipment $ 211,087 $ 197,531 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The change in the carrying value of goodwill was as follows: Sporting Products Outdoor Products Total Balance, March 31, 2020 $ 83,167 $ — $ 83,167 Acquisitions 5,680 — 5,680 Divestitures (2,765) — (2,765) Balance, March 31, 2021 86,082 — 86,082 Acquisitions 23 395,752 395,775 Balance, March 31, 2022 $ 86,105 $ 395,752 $ 481,857 See Note 7, Acquisitions and Divestitures , for details of our acquisitions and divestitures during fiscal years 2022 and 2021. As of March 31, 2022, there are $994,207 of accumulated impairment losses recorded within the Outdoor Products segment, all of which were recorded prior to March 31, 2021. The goodwill recorded within the Sporting Products segment has no accumulated impairment losses. Fiscal year 2022 annual assessment We performed our annual testing of goodwill in accordance with our accounting policies described in Note 1, Significant Accounting Policies. We completed a step zero assessment as of January 1, 2022 and concluded there were no indicators of impairment. Our indefinite lived intangibles are not amortized and are tested for impairment annually or upon the occurrence of events or changes in circumstances that indicate that the assets might be impaired. We completed a step zero assessment as of January 1, 2022, in accordance with our accounting policies described in Note 1, Significant Accounting Policies, and concluded there were no indicators of impairment. Fiscal year 2021 annual assessment We performed our annual testing of goodwill in accordance with our accounting policies described in Note 1, Significant Accounting Policies. We completed a step zero assessment as of January 1, 2021 and concluded there were no indicators of impairment. Our indefinite lived intangibles are not amortized and are tested for impairment annually on the first day of the fourth fiscal quarter or upon the occurrence of events or changes in circumstances that indicate that the assets might be impaired. We completed a step zero assessment as of January 1, 2021, in accordance with our accounting policies described in Note 1, Significant Accounting Policies, and concluded there were no indicators of impairment for the majority of our indefinite lived intangibles. We completed a step one assessment as of January 1, 2021, related to our CamelBak indefinite-lived tradename and concluded there was no impairment. We determined the fair value of the CamelBak indefinite-lived tradename using a royalty rate of 2.5%. Fiscal year 2020 assessment At the beginning of the fourth quarter of fiscal year 2020, we determined there was a change to our reporting units. Hydration and Outdoor Cooking, which were historically components of the Outdoor Recreation reporting unit, were identified as two separate reporting units. Accordingly, we were required to evaluate whether there was impairment at the historical Outdoor Recreation reporting unit and allocate to Hydration and Outdoor Cooking a portion of the respective historical reporting unit goodwill. Concurrent with our annual goodwill impairment testing, we performed a quantitative impairment analysis on the historical Outdoor Recreation reporting unit and concluded there was excess carrying value over fair value. As a result, we recorded goodwill impairment of $121,329, which left no remaining goodwill in the historical Outdoor Recreation reporting unit, or the newly identified reporting units of Hydration and Outdoor Cooking. We also performed a quantitative impairment analysis on the Ammunition reporting unit and concluded there was excess fair value over carrying value, therefore no impairment was recorded on this reporting unit. To determine the fair value under the income approach, we used, based on our judgment, a discount rate of 12.5% and a terminal growth rate of 3.0%. In our fiscal year 2020 annual testing, management calculated the fair value of our reporting units based on the accounting policy discussed in Note 1, Significant Accounting Policies . The trading price of our common stock on the annual testing date resulted in a large difference between the market value of Vista Outdoor equity and the book value of the assets recorded on our balance sheet, implying that investors may believe that the fair value of our reporting units is lower than their book value. Our estimates of the fair values of the reporting units was significantly influenced by higher discount rates in the income-based valuation approach as a result of increasing market to equity risk premiums and company specific risk premiums. Our fair value estimates were also negatively impacted by the performance of our reporting units compared to comparable companies, which required that we apply lower valuation multiples in estimating the fair value of these reporting units using the market-based approach. In addition, as a result of tariffs and other factors affecting the market for our products, we reduced our sales projections for fiscal year 2021 and beyond for a number of our reporting units for purposes of our long-range financial plan, which is updated annually beginning in our third quarter. During the fourth quarter of fiscal year 2020, we recorded $34,259 of impairment in our historical Outdoor Products segment. Impairment charges of $13,100 were recorded against our CamelBak indefinite-lived tradename. We determined the fair value of this indefinite-lived tradename using a royalty rate of 2.0%. We also recorded impairment charges related to our Bushnell and Weaver's indefinite-lived tradenames of $7,459. We determined the fair values of these indefinite-lived tradenames using royalty rates of 1.0%. In addition, impairment expense of $13,700 was recorded related to our Giro, Bell Cycling, and Bell Power Sports indefinite-lived tradenames. We determined the fair value of these indefinite-lived tradenames using royalty rates ranging from 1.0% to 1.5%. Net intangibles consisted of the following: March 31, 2022 2021 Gross Accumulated Total Gross Accumulated Total Trade names $ 113,915 $ (23,756) $ 90,159 $ 49,560 $ (18,174) $ 31,386 Patented technology 36,854 (13,324) 23,530 16,954 (11,354) 5,600 Customer relationships and other 328,168 (117,664) 210,504 241,306 (98,939) 142,367 Total 478,937 (154,744) 324,193 307,820 (128,467) 179,353 Non-amortizing trade names 135,602 — 135,602 135,602 — 135,602 Net intangible assets $ 614,539 $ (154,744) $ 459,795 $ 443,422 $ (128,467) $ 314,955 The amortizable intangible assets in the table above are being amortized using a straight-line method over a weighted average remaining period of approximately 12.5 years. Amortization expense related to these assets was $26,246, $19,846 and $19,995 in fiscal years 2022, 2021, and 2020, respectively, which is included within cost of sales. We expect amortization expense related to these assets in each of the next five fiscal years and beyond to be incurred as follows: Fiscal year 2023 $ 32,323 Fiscal year 2024 32,271 Fiscal year 2025 32,253 Fiscal year 2026 29,244 Fiscal year 2027 27,794 Thereafter 170,308 Total $ 324,193 |
Other Current and Non-current L
Other Current and Non-current Liabilities | 12 Months Ended |
Mar. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities | Other Current Liabilities The major categories over 5% of current liabilities are as follows: March 31, 2022 2021 Accrual for in-transit inventory $ 11,620 $ 24,356 Other 115,560 96,212 Total other current liabilities $ 127,180 $ 120,568 We provide consumer warranties against manufacturing defects on certain products 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 as of March 31, 2020 $ 9,149 Payments made (4,475) Warranties issued 4,382 Changes related to pre-existing warranties and other adjustments (360) Balance as of March 31, 2021 8,696 Payments made (4,169) Warranties issued 4,479 Changes related to pre-existing warranties and other adjustments 67 Balance as of March 31, 2022 $ 9,073 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term Debt March 31, 2022 2021 2021 ABL Revolving Credit Facility $ 170,000 $ — 4.5% Senior Notes 500,000 500,000 Less: unamortized deferred financing costs (3,886) (4,436) Carrying amount of long-term debt $ 666,114 $ 495,564 Credit Agreements —In fiscal year 2021, we refinanced our 2018 ABL Revolving Credit Facility, by entering into the 2021 ABL Revolving Credit Facility, which provides for a $450,000 senior secured asset-based revolving credit facility. The amount available under the 2021 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, but, in each case, subject to the excess availability financial covenant under the 2021 ABL Revolving Credit Facility described below. As of March 31, 2022, the Excess Availability, based on the borrowing base less outstanding borrowings of $170,000 and outstanding letters of credit of $16,791, less the minimum required borrowing base of $45,000, the amount available under the 2021 ABL Revolving Credit Facility was $218,209. The 2021 ABL Revolving Credit Facility matures on March 31, 2026 (the “Maturity Date”), subject to a customary springing maturity in respect of the 4.5% Notes due 2029 (described below). Any outstanding revolving loans under the 2021 ABL Revolving Credit Facility will be payable in full on the Maturity Date. Borrowings under the 2021 ABL Revolving Credit Facility bear interest at a rate equal to 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%. The rates vary based on our Average Excess Availability under the 2021 ABL Revolving Credit Facility. As of March 31, 2022, the margin under the 2021 ABL Revolving Credit Facility was 0.50% for base rate loans and 1.50% for LIBO rate loans. The weighted average interest rate for our borrowings under the 2021 ABL Revolving Credit Facility as of March 31, 2022 was 1.94%. We pay a commitment fee on the unused commitments under the 2021 ABL Revolving Credit Facility of 0.175% per annum. Debt issuance costs incurred with the refinancing of approximately $6,004, are being amortized over the remaining term of the 2021 ABL Revolving Credit Facility. The debt issuance costs associated with the 2021 ABL Revolving Credit Facility are included within other current and non-current assets. Substantially all domestic tangible and intangible assets of Vista Outdoor and our domestic subsidiaries are pledged as collateral under the 2021 ABL Revolving Credit Facility. 4.5% Notes —In fiscal year 2021, we issued $500,000 aggregate principal amount of 4.5% Notes that mature on March 15, 2029. These notes are unsecured and senior obligations. Interest on the notes is payable semi-annually in arrears on March 15 and September 15 of each year. We have the right to redeem some or all of these notes on or after March 15, 2024 at specified redemption prices. Prior to March 15, 2024, we may redeem some or all of these notes at a price equal to 100% of their principal amount plus accrued and unpaid interest to the date of redemption and a specified make-whole premium. In addition, prior to March 15, 2024, we may redeem up to 40% of the aggregate principal amount of these notes with the net cash proceeds of certain equity offerings, at a price equal to 104.5% of their principal amount plus accrued and unpaid interest to the date of redemption. Debt issuance costs of approximately $4,481 are being amortized to interest expense over eight years, the term of the notes. Rank and guarantees —The 2021 ABL Revolving Credit Facility obligations are guaranteed on a secured basis, jointly and severally and fully and unconditionally by substantially all of our domestic subsidiaries. Vista Outdoor (the parent company issuer) has no independent assets or operations. We own 100% of all of these guarantor subsidiaries. The 4.5% 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 4.5% Notes are fully and unconditionally guaranteed, jointly and severally, by our existing and future domestic subsidiaries that guarantee indebtedness under our 2021 ABL Revolving Credit Facility or that incur or guarantee certain of our other indebtedness, or indebtedness of any subsidiary guarantor, in an aggregate principal amount in excess of $75,000. These guarantees are senior unsecured obligations of the applicable subsidiary guarantors. The guarantee by any subsidiary guarantor of our obligations in respect of the 4.5% 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 4.5% Notes • if such subsidiary guarantor has been released from its guarantees of indebtedness under the 2021 ABL Revolving Credit Facility and all capital markets debt securities Scheduled Minimum Payments —The scheduled minimum payments on outstanding long-term debt were as follows as of March 31, 2022: Fiscal year 2023 $ — Fiscal year 2024 — Fiscal year 2025 — Fiscal year 2026 170,000 Fiscal year 2027 — Thereafter 500,000 Total $ 670,000 Covenants 2021 ABL Revolving Credit Facility —Our 2021 ABL Revolving Credit Facility imposes 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. The 2021 ABL Revolving Credit Facility contains a financial covenant that the Excess Availability under the 2021 ABL Revolving Credit Facility cannot fall below the greater of (a) 10% of the line cap or (b) $42,500. As a result of this financial covenant, we must maintain the greater of 10% of the line cap or $42,500 of availability in order to satisfy the financial covenant. If we do not comply with the covenants in the 2021 ABL Revolving Credit Facility, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under the 2021 ABL Revolving Credit Facility. As noted above, the Excess Availability less the minimum required borrowing base under the 2021 ABL Revolving Credit Facility was $218,209 as of March 31, 2022. Vista Outdoor has the option to increase the amount of the 2021 ABL Revolving Credit Facility in an aggregate principal amount not to exceed $150,000, to the extent that any one or more lenders, whether or not currently party to the 2021 ABL Revolving Credit Facility, commits to be a lender for such amount. 4.5% Notes —The indenture governing the 4.5% 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 2021 ABL Revolving Credit Facility and the indenture governing the 4.5% Notes contain cross-default provisions so that noncompliance with the covenants within one debt agreement could also cause a default under the other debt agreement. As of March 31, 2022, we were in compliance with the covenants of both of our debt agreements. However, we cannot provide assurance that we will be able to comply with such financial covenants in the future due to various risks and uncertainties, some of which may be beyond our control. Any failure to comply with the restrictions in the 2021 ABL Revolving Credit Facility may prevent us from drawing under the 2021 ABL Revolving Credit Facility and may result in an event of default under the 2021 ABL Revolving Credit Facility, which default may allow the creditors to accelerate the related indebtedness and the indebtedness under our 4.5% Notes and proceed against the collateral that secures such indebtedness. We may not have sufficient liquidity to repay the indebtedness in such circumstances. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Benefit Plan During fiscal year 2022, we recognized an aggregate net expense for employee defined benefit plans of $426. During fiscal years 2021 and 2020, we recognized an aggregate net benefit for employee defined benefit plans of $86 and $406, respectively. We recognize the funded status of our defined benefit pension plans and other postretirement benefit plans, measured as the difference between the fair value of the plan assets and the benefit obligation. Benefit obligation balances reflect the projected benefit obligation ("PBO") for our pension plans and accumulated post-retirement benefit obligations ("APBO") for our other post-retirement benefit plans. The weighted average discount rate used to determine the pension benefit obligation was 3.60% and 3.05% as of March 31, 2022 and 2021, respectively. The increase in the discount rate decreases the benefit obligation and takes into consideration the actual return on the plan assets. The fair value of the plan assets was $171,573 and $176,268 as of March 31, 2022 and 2021, respectively. The benefit obligation was $192,945 and $209,021 as of March 31, 2022 and 2021, respectively. This resulted in an unfunded liability of $21,372 and $32,753 as of March 31, 2022 and 2021, respectively, which is primarily recorded within accrued pension and post-employment benefits liability on the consolidated balance sheet. In June 2017, we announced changes to our qualified and non-qualified defined benefit pension plans. The benefits under the affected plans were determined by a cash balance formula that provides participating employees with an annual “pay credit” as a percentage of their eligible pay based on their age and eligible service. The changes were effective July 31, 2017, with employees receiving a pro-rated pay credit for fiscal year 2017 and no future pay credits beginning in fiscal year 2018. However, a participating employee’s benefit will continue to grow based on annual interest credits applied to the employee’s cash balance account until commencement of the employee’s benefit. The weighted average interest crediting rate was 4% for fiscal years 2022 and 2021, respectively. The plan assets are invested in a variety of financial funds which have investments in a variety of financial instruments including equities, fixed income, and hedge funds. Plan assets are invested in various asset classes that are expected to produce a sufficient level of diversification and investment return over the long-term. The investment goals are (1) to meet or exceed the assumed actuarial rate of return of 5.5% and 6.0% over the long-term within reasonable and prudent levels of risk as of March 31, 2022 and 2021, and (2) to preserve the real purchasing power of assets to meet future obligations. Investments in financial funds are valued by multiplying the fund's net asset value ("NAV") per share with the number of units or shares owned as of the valuation date. NAV per share is determined by the fund's administrator or our custodian by deducting from the value of the assets of the fund all its liabilities and the resulting number is divided by the outstanding number of shares or units. Investments held by the funds are valued on the basis of valuations furnished by a pricing service approved by the fund's investment manager, which determines valuations using methods based on market transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders, or at fair value as determined in good faith by the fund's investment manager. For those assets that are invested within hedge funds there are certain restrictions on redemption of those assets including a one-year lockup period from initial investment and thereafter a 65-day notice period prior to redemption. There are no other significant restrictions on redemption of assets within other asset categories. Employer contributions and distributions —We made contributions of $1,300, $7,100, and $3,600 directly to our pension trust; made contributions of $0, $0, and $0 to our other postretirement benefit plans; and, distributed $0, $0, and $1 directly to retirees under our non-qualified supplemental executive retirement plans during fiscal years 2022, 2021, and 2020, respectively. Substantially all contributions made to our pension trust were required by local funding requirements. We currently expect to make contributions of $0 during fiscal year 2023. The final amount of pension contributions we make in fiscal year 2023 and future years is dependent on our election of various implementation options provided to us by the American Rescue Plan Act of 2021, which was signed into law in March 2021. Required future pension contributions are estimated based upon assumptions such as discount rates on future obligations, assumed rates of return on plan assets, and legislative changes. Actual future pension costs and required funding obligations will be affected by changes to these assumptions. The following benefit payments, which reflect expected future service, are expected to be paid primarily out of the pension trust: Fiscal year 2023 $ 13,737 Fiscal year 2024 13,279 Fiscal year 2025 14,063 Fiscal year 2026 13,481 Fiscal year 2027 13,152 Fiscal years 2028 through 2032 63,305 Defined Contribution Plan We sponsor a defined contribution retirement plan, a 401(k) savings plan. The plan is a tax-qualified retirement plan subject to the Employee Retirement Income Security Act of 1974 and covers most employees in the U.S. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before income taxes is as follows: Years ended March 31, 2022 2021 2020 Current: U.S. $ 619,464 $ 259,009 $ (173,255) Non-U.S. 1,494 375 2,228 Income (loss) before income taxes $ 620,958 $ 259,384 $ (171,027) Our income tax (provision) benefit consists of: Years ended March 31, 2022 2021 2020 Current: Federal $ (107,429) $ 15,723 $ 10,210 State (28,119) (18,684) 1,585 Non-US (739) (350) (197) Deferred: Federal (10,327) 2,668 2,799 State (1,483) 7,271 1,703 Non-US 365 — (152) Income tax (provision) benefit $ (147,732) $ 6,628 $ 15,948 The items responsible for the differences between the federal statutory rate and our effective rate are as follows: Years ended March 31, 2022 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal impact 3.9 % 4.6 % 1.1 % Nondeductible goodwill impairment — % — % (11.3) % Nondeductible loss on divestiture — % (0.4) % (1.0) % Change in tax contingency (0.7) % (3.6) % 4.5 % Impact of law changes — % (4.1) % 1.8 % Valuation allowance — % (19.0) % (4.8) % Other (0.4) % (1.1) % (2.0) % Effective income tax rate 23.8 % (2.6) % 9.3 % The effective tax rate for the current year is reflective of the federal statutory rate of 21% increased by the state taxes and partially offset by changes in tax contingency. The current year increase in the effective tax rate as compared to the prior year is primarily due to the impact of the prior year decreases in the valuation allowance driven by earnings, the 2021 benefit of the loss carrybacks to prior profitable years as permitted under IRS regulations issued under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) which permitted us to realize previously valued tax assets, and the release of a greater amount of reserves for uncertain tax positions due to statute expiration last year. Deferred income taxes arise because of differences in the timing of the recognition of income and expense items for financial statement reporting and income tax purposes. The net effect of these temporary differences between the carrying amounts of assets and liabilities are classified in the consolidated financial statements of financial position as non-current assets or liabilities. As of March 31, 2022 and 2021, the components of deferred tax assets and liabilities were as follows: March 31, 2022 2021 Deferred tax assets: Inventories $ 7,178 $ 7,359 Retirement benefits 5,384 8,174 Accounts receivable 6,664 8,417 Accruals for employee benefits 7,917 11,216 Other reserves 3,146 3,906 Loss and credit carryforwards 3,082 4,040 Capital loss carryforward 19,598 19,666 Operating lease liabilities 18,984 18,623 Other 4,926 2,970 Total deferred tax assets 76,879 84,371 Valuation allowance (20,417) (22,528) Total net deferred assets 56,462 61,843 Deferred tax liabilities: Intangible assets (43,957) (29,847) Property, plant, and equipment (24,571) (23,420) Operating lease assets (17,238) (16,811) Total deferred tax liabilities (85,766) (70,078) Net deferred income tax liability $ (29,304) $ (8,235) As of March 31, 2022, our deferred tax assets were primarily the result of capital loss carryforwards and other deferred tax assets. We have capital loss carryforwards totaling $19,598 as of March 31, 2022, which, if unused, will expire in 2025. As of March 31, 2022, there are federal and state net operating loss and credit carryovers of $3,082, which, if unused, will expire in years March 31, 2023 through March 31, 2043. The carryforwards expiring in fiscal year 2023 are not material. We have valuation allowances on certain deferred tax assets of $20,417 and $22,528 at March 31, 2022 and 2021, respectively. The decrease in valuation allowance from year end 2021 to year end 2022 was primarily due to U.S. state tax attributes. For the fiscal year ended March 31, 2021, we recorded a net valuation allowance release of $49,537 on the basis of management's reassessment of the amount of its deferred tax assets that are more likely than not to be realized. We have outside basis differences from foreign subsidiaries for which no deferred tax liability has been recorded, as we intend to indefinitely reinvest these balances. Determination of the amount of any unrecognized deferred income tax liability on the temporary difference for these indefinitely reinvested undistributed earnings is not practicable. Income taxes paid, net of refunds, totaled $139,238 and $40,793 in fiscal year 2022 and fiscal year 2021, respectively. We filed amended income tax returns in fiscal year 2021 requesting total refunds of $42,193, as permitted by the CARES Act. These refunds remain outstanding and are properly reflected in our net income tax receivable of $43,560. As of March 31, 2022 and 2021, unrecognized tax benefits, including interest and penalties, that have not been recorded in the financial statements amounted to $24,719 and $23,000. Of these amounts, inclusive of interest and penalties, $21,139 and $20,283, respectively, would affect the effective tax rate. It is expected that a $3,419 reduction of the liability for unrecognized tax benefits will occur in the next 12 months. We have classified uncertain tax positions as non-current income tax liabilities unless expected to be paid within one year. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows: Years ended March 31, 2022 2021 2020 Unrecognized Tax Benefits—beginning of period $ 18,071 $ 23,513 $ 27,252 Gross increases—tax positions in prior periods 304 2,713 — Gross decreases—tax positions in prior periods — — — Gross increases—current-period tax positions 6,581 2,716 1,949 Gross decreases—current-period tax positions — — — Settlements — — (171) Lapse of statute of limitations (5,501) (10,871) (5,517) Unrecognized Tax Benefits—end of period $ 19,455 $ 18,071 $ 23,513 We report income tax-related interest income within the income tax provision. Penalties and tax-related interest expense are also reported as a component of the income tax provision. As of March 31, 2022 and 2021, $2,406 and $3,043 of income tax-related interest and $2,856 and $1,886 of penalties were included in accrued income taxes, respectively. As of March 31, 2022, 2021, and 2020, our current tax provision included $2,128, $1,676, and $2,126, respectively, of expense related to interest and penalties. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We lease certain warehouse, distribution and office facilities, vehicles, and office equipment under operating leases. These operating lease liabilities represent commitments for minimum lease payments under non-cancelable operating leases in the amount of $130,630. See Note 3, Leases . As of March 31, 2022, we have known purchase commitments of $259,108 which are defined as an agreement to purchase goods or services that is enforceable and legally binding on us and that specifies all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. We also issued guarantees in the form of standby letters of credit of $16,791 as of March 31, 2022. 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 PRPs, 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 $697 as of March 31, 2022 and $696 as of March 31, 2021. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity We have authorized 50,000,000 shares of preferred stock, par value $1.00, none of which have been issued. As of March 31, 2022, we maintain an equity incentive plan (the “2020 Vista Outdoor Inc. Stock Incentive Plan” or the “Plan”), which became effective on August 4, 2020. The Plan was established to govern equity awards granted to our employees and directors and provides for awards of incentive stock options, stock appreciation rights, restricted stock and restricted stock units, dividend equivalents, performance awards, stock awards and other stock-based awards. We issue shares from the Plan upon the vesting of performance awards, restricted stock units, grant of restricted stock, or exercise of stock options and the awards are accounted for as equity-based compensation. As of August 4, 2020, we were authorized to issue up to 3,351,200 common shares under the Plan. As of March 31, 2022, 2,265,601 common shares remain available to be granted. Performance Based Awards We have granted three types of stock-based performance based awards: performance awards, TSR performance awards, and performance awards with a TSR award modifier. The number of shares that could be issued range from 0% to 200% of the participant's target award. Performance awards are awards in which the number of shares ultimately received depends on our performance against specified metrics over a three-year performance period. These performance metrics are established on the grant date. At the end of the performance period, the number of shares of stock that could be issued is fixed based upon the degree of achievement of the performance goals. Performance awards are initially valued at our closing stock price on the date of grant. Stock compensation expense is recognized on a straight-line basis over the vesting period. The expense recognized over the vesting period is adjusted up or down based on the anticipated performance level during the performance period. If the performance metrics are not probable of achievement during the performance period, compensation expense would be reversed. The awards are forfeited if the threshold performance metrics are not achieved as of the end of the performance period. The performance share vest at the end of the performance period. TSR performance awards are stock-based awards that compare the performance of our common stock over a three-year period to that of our peer group. The fair value of these awards is derived using the Monte Carlo simulation which utilizes the stock volatility, dividend yield and market correlation of Vista to its peer group. The Monte Carlo fair value is expensed on a straight-line basis over the vesting period. The awards are forfeited if the threshold performance metrics are not achieved as of the end of the performance period. The performance awards vest at the end of the performance period. Performance awards with a TSR modifier are stock-based awards for which the number of shares ultimately received depends on our performance against specified metrics over a three-year performance period and the performance of our common stock over a three-year period relative to that of our peer group. These performance metrics are established on the grant date. At the end of the performance period, the number of shares of stock that could be issued is based upon the degree of achievement of the performance goals. The participants could earn from 0% up to 200% of the three-year target award shares, subject to continued service through the vesting date. After the number of shares earned based on our performance goals is determined, the relative TSR modifier may either increase or decrease the number of shares earned from +20% to -20%, but not over 200% of target shares, based on the performance of our common stock over a three-year period relative to that of our peer group. The fair value of these awards is derived using the Monte Carlo simulation which utilizes our closing stock price on the date of grant and the stock volatility, dividend yield and market correlation of Vista to its peer group. The expense recognized over the vesting period is adjusted up or down based on the anticipated performance level during the performance period. If the performance metrics are not probable of achievement during the performance period, compensation expense would be reversed. The awards are forfeited if the threshold performance metrics are not achieved as of the end of the performance period. The performance shares vest at the end of the performance period. We granted 5,980 performance awards during fiscal year 2022. There were 390,012 performance award shares earned during fiscal year 2022 that were subject to a three-year performance period related to certain performance goals. The participants could earn from 0% up to 200% of the three-year target award shares, subject to their continued service through the vesting date. Based on our performance, participants earned 200% of the performance awards granted to them. No TSR performance awards were granted during fiscal year 2022. There were 167,150 TSR performance award shares earned during fiscal year 2022 that were subject to a three-year performance period related to the performance of our common stock over a three-year period compared to that of our peer group. The participants could earn from 0% up to 200% of the three-year target award shares, subject to continued service through the vesting date. Based on the performance of our common stock over the applicable three-year period compared to that of our peer group, participants earned 200% of these awards. We granted 312,206, performance awards with a TSR modifier during fiscal year 2022. No shares were earned during fiscal year 2022. The weighted average grant date fair value for performance based award grants was $37.88 and $27.11 in fiscal years 2022 and 2021, respectively. There were no performance based awards granted in fiscal year 2020. A summary of our performance based awards for fiscal year 2022 is presented below: Shares Weighted average grant date fair value Nonvested as of March 31, 2021 1,002,037 $ 21.87 Earned (1) (557,162) 9.29 Adjustment for payout (2) 278,581 9.29 Awarded 318,186 37.88 Nonvested as of March 31, 2022 1,041,642 $ 30.12 (1) Performance shares are earned and vest at the end of the performance period based on the performance criteria achieved, subject to continued service through the vesting date. (2) Adjustment equals the difference between performance shares issued at target and the 200% of target shares earned during fiscal year 2022. As of March 31, 2022, the unamortized compensation expense related to these awards was $28,232, which is expected to be recognized over a weighted-average period of 1.5 years. Stock Option awards Stock options may be granted periodically, with an exercise price equal to the fair value of common stock on the date of grant, and generally vest from one A summary of our stock option activity for fiscal year 2022 is presented below: Shares Weighted average exercise price Weighted average remaining contractual life (in years) Aggregate intrinsic value Outstanding as of March 31,2021 397,610 $ 13.99 6.8 $ 7,244 Exercised (28,921) 18.41 Outstanding and exercisable as of March 31,2022 368,689 $ 13.65 6.1 $ 8,128 There were 28,921 and 92,604 options exercised during fiscal years 2022 and 2021, respectively. There were no options exercised during fiscal year 2020. The total intrinsic value of options exercised during fiscal years 2022 and 2021 was $1,102 and $1,896, respectively. Cash received from options exercised during fiscal years 2022 and 2021 was $533 and $1,386, respectively. As of March 31, 2022, there was no unrecognized compensation cost related to stock option awards. Restricted Stock Units Restricted stock units granted to certain key employees and non-employee directors totaled 352,716 shares in fiscal year 2022. The weighted average grant date fair value of restricted stock units granted was $34.58, $17.31, and $6.03 in fiscal years 2022, 2021, and 2020, respectively. Restricted stock units vest over periods generally ranging from one A summary of our restricted stock unit award activity for fiscal year 2022 is presented below. Shares Weighted average grant date fair value Nonvested as of March 31, 2021 1,064,580 $ 13.56 Granted 352,716 34.58 Vested (509,861) 12.08 Forfeited (16,862) 19.54 Nonvested as of March 31, 2022 890,573 $ 22.56 As of March 31, 2022, the total unrecognized compensation cost related to non-vested restricted stock units was $16,107 and is expected to be realized over a weighted average period of 1.8 years. Total pre-tax stock-based compensation expense of $27,407, $13,303, and $6,810 was recognized during fiscal years 2022, 2021, and 2020, respectively. The total income tax benefit recognized in the consolidated statements of comprehensive income for share-based compensation was $4,882, $2,673, and $371 during fiscal years 2022, 2021, and 2020, respectively. Share Repurchases We had repurchases of 2,981 shares in fiscal year 2022 and no repurchases of shares during fiscal years 2021 and 2020. See Part II, Item 5 of this Annual Report, for details on our share repurchase programs. |
Operating Segment Information
Operating Segment Information | 12 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Operating Segment Information As of March 31, 2022, we had seven operating segments which have been aggregated into two reportable segments, Sporting Products and Outdoor Products. This is consistent with how our chief operating decision maker (CODM), our Chief Executive Officer, allocates resources and makes decisions. During the third quarter of fiscal year 2022, we made changes in the aggregation of our operating segments to reflect recent business and economic changes. As a result of these changes, our Hunting and Shooting operating segment is now included in our Outdoor Products reportable segment and has been renamed Outdoor Accessories. Our Ammunition operating segment is in its own reportable segment which has been renamed Sporting Products. Previously, similarities in market demand dynamics and distribution channels were the most critical factors used in aggregating our operating segments into reportable segments. As a result, we previously aggregated our Ammunition and Outdoor Accessories (formerly named Hunting and Shooting) operating segment into a single reportable segment, due to similarities in those operating segments’ underlying market demand, distribution channels and economic characteristic at that time. During fiscal year 2022, demand for our products has remained strong, while supply chain, logistics and other factors have affected the key metrics for all other operating segments except Ammunition. These key metrics are used by our CODM, in evaluating the performance of our operating segments and in making resource allocation decisions. These factors also impacted the qualitative characteristics that are considered in the aggregation of our operating segments. The operating segments we are now aggregating into our Outdoor Products reportable segment rely primarily on international suppliers to manufacture the products they sell, which impacts their economic characteristics in a similar manner. These operating segments also share other commonalities or risks, such as technology or intellectual property sharing, common regulated environments, similar input cost risks, and nature of their products. Consumers of the products in these operating segments are typically looking to upgrade or replace their products in a similar time frame. Based on the impact on their economic characteristics discussed above and the shared qualitative characteristics of these operating segments, we are now aggregating our Outdoor Accessories operating segment with our Sports Protection, Outdoor Cooking, Hydration, Golf, and Cycling operating segments into the Outdoor Products reportable segment. Our CODM relies on internal management reporting that analyzes consolidated results to the net income level and our operating segment's EBIT, which is defined as earnings before interest and income taxes. Certain corporate-related costs and other non-recurring costs are not allocated to the segments in order to present comparable results from period to period and are not utilized by management in determining segment profitability . No customer contributed more than 10% of sales during fiscal years 2022 and 2021; however, Walmart accounted for approximately 13% of our total fiscal year 2020 sales. Our sales to foreign customers were $435,175, $319,568, and $301,648 in fiscal year 2022, 2021, and 2020, respectively. During fiscal year 2022, approximately 24% of these sales were in Sporting Products and 76% were in Outdoor Products. Sales to no individual country outside the U.S. accounted for more than 5% of our sales in fiscal years 2022, 2021, and 2020. The following summarizes our results by segment: Year ended March 31, 2022 Sporting Products Outdoor Products (a) Corporate and other reconciling items Total Sales, net $ 1,737,891 $ 1,306,730 $ — $ 3,044,621 Gross Profit 712,160 399,447 (2,375) 1,109,232 EBIT 600,415 164,494 (118,687) 646,222 Capital expenditures 25,637 12,890 3,907 42,434 Depreciation and amortization 25,602 42,027 4,711 72,340 Total assets 743,960 1,539,542 112,699 2,396,201 Year ended March 31, 2021 (b) Sporting Products Outdoor Products (a) Corporate and other reconciling items Total Sales, net $ 1,119,754 $ 1,105,768 $ — $ 2,225,522 Gross Profit 312,230 321,423 (693) 632,960 EBIT 222,713 137,942 (75,697) 284,958 Capital expenditures 14,209 10,942 4,096 29,247 Depreciation and amortization 23,292 37,935 3,883 65,110 Total assets 655,788 794,961 314,190 1,764,939 Year ended March 31, 2020 (b) Sporting Products Outdoor Products (a) Corporate and other reconciling items Total Sales, net $ 871,550 $ 884,321 $ — $ 1,755,871 Gross Profit 137,914 222,372 (1,520) 358,766 EBIT 66,898 43,125 (242,259) (132,236) Capital expenditures 10,577 4,827 3,857 19,261 Depreciation and amortization 20,077 41,094 6,687 67,858 Total assets 552,337 760,217 82,323 1,394,877 (a) Reconciling items represent corporate general and administrative expenses and other income (expense) not included by management in determining segment EBIT. Reconciling items in fiscal year 2022 included fair value step-up in inventory of $2,375, and post-acquisition compensation expense of $8,987 allocated from businesses acquired. Reconciling items in fiscal year 2021 included an $18,467 gain on divestiture and $690 in inventory step-up expense from businesses acquired. Reconciling items in fiscal year 2020 include non-cash goodwill and intangible impairment charges of $121,329 and $34,259, respectively, related to the historical outdoor products segment, $9,429 of held for sale impairment charges related to the historical Sporting Products segment, restructuring charges of $9,210, contingent consideration expenses of $1,685, restructuring costs of $1,520, merger and acquisition costs of $644, and loss on the sale of our Firearms business of $433. (b) During the third quarter of fiscal year 2022, we modified and renamed our reportable segments. Accordingly fiscal year 2021 and 2020 have been restated to conform to the change. Sales, net exclude all intercompany sales between Sporting Products and Outdoor Products, which were not material for any of the fiscal years presented. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn May 5, 2022, we announced that our Board of Directors has unanimously approved preparations for the separation of our Outdoor Products and Sporting Products reportable segments into two independent, publicly-traded companies (the “Planned Separation”). We anticipate that the transaction will be in the form of a distribution to our shareholders of 100% of the stock of Outdoor Products, which will become a new, independent publicly traded company. The distribution is intended to be tax-free to U.S. shareholders for U.S. federal income tax purposes. We currently expect the transaction will be completed in calendar year 2023, subject to final approval by our Board of Directors, a Form 10 registration statement being declared effective by the U.S. Securities and Exchange Commission, regulatory approvals and satisfaction of other conditions. There can be no assurance regarding the ultimate timing of the proposed transaction or that the transaction will be completed. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Combination | Principles of Consolidation. The consolidated financial statements include our net assets and results of operations as described above. All intercompany transactions and accounts within the businesses have been eliminated. |
Fiscal Year | Fiscal Year. References in this report to a particular fiscal year refer to the year ended March 31 of that calendar year. Our interim quarterly periods are based on 13-week periods and end on Sundays. |
Use of Estimates | Use of Estimates. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ from those estimates. We review our estimates to ensure that these estimates properly reflect changes in our business or as new information becomes available. |
Revenue Recognition | Revenue Recognition. For the majority of our contracts with customers, 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. For our contracts that include bundled and hardware and software sales, revenue related to delivered hardware and bundled software is recognized when control has transferred to the customer, which typically occurs upon shipment. Revenue allocated to unspecified software update rights is deferred and recognized on a straight-line basis over the estimated period they are expected to be provided. 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. Revenue recognition is discussed in further detail in Note 5, Revenue Recognition . For the immaterial amount of our contracts that have multiple performance obligations, which represent promises within an arrangement that are distinct, we allocate revenue to all distinct performance obligations based on their relative stand-alone selling prices (“SSPs”). When available, we use observable prices to determine SSPs. When observable prices are not available, SSPs are established that reflect our best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis. We allocate revenue and any related discounts to these performance obligations based on their relative SSPs. |
Cost of Sales | Cost of Sales. Cost of sales includes material, labor, and overhead costs associated with product manufacturing, including depreciation, amortization, purchasing and receiving, inspection, warehousing, product liability, warranty, and inbound and outbound shipping and handling costs. |
Research and Development Costs | Research and Development Costs. Research and development costs consist primarily of compensation and benefits and experimental work materials for our employees who are responsible for the development and enhancement of new and existing |
Selling, General and Administrative Expense | Selling, General, and Administrative Expense. Selling, general, and administrative expense includes, among other items, administrative salaries, benefits, commissions, advertising, insurance, and professional fees. |
Advertising Costs | Advertising Costs. Advertising and promotional costs including print ads, commercials, catalogs, and brochures are expensed in the period when the first advertisement is run. Our co-op program is structured so that certain customers are eligible for reimbursement for certain types of advertisements on qualifying product purchases and are accrued as purchases are made. |
Cash Equivalents | Cash Equivalents. Cash equivalents are all highly liquid cash investments purchased with original maturities of three months or less. |
Allowance for Estimated Credit Losses | Allowance for Estimated Credit Losses. We maintain an allowance for credit losses related to accounts receivable for future expected credit losses resulting from the inability or unwillingness of our customers to make required payments. We estimate the allowance based upon historical bad debts, current customer receivable balances, age of customer receivable balances, and the customers' financial condition and in relation to a representative pool of assets consisting of a large number of customers with similar risk characteristics. The allowance is adjusted as appropriate to reflect differences in current conditions as well as changes in forecasted macroeconomic conditions. |
Inventories | Inventories. Inventories are stated at the lower of cost, determined using the first-in, first-out ("FIFO") method, or net realizable value. Inventory costs associated with work in process inventory and finished goods include material, labor, and manufacturing overhead, while costs associated with raw materials and purchased finished goods include material and inbound freight costs. We provide inventory allowances for any excess and obsolete inventories and periodically write inventory amounts down to market when costs exceed market value. |
Warranty Costs | Warranty Costs. We provide consumer warranties against manufacturing defects on certain products within the Sporting Products and Outdoor Products segments with warranty periods typically 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. Estimated future warranty costs are accrued at the time of sale based upon actual past experience, our current production environment as well as specific and identifiable warranties as applicable. See Note 12, Other Current Liabilities, for additional detail. |
Fair Value Measurements | Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability (the exit price) in the principal and most advantageous market for the asset or liability in an orderly transaction between market participants. We measure and disclose the fair value of nonfinancial and financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. This hierarchy requires the use of observable market data when available. The measurement of assets and liabilities at fair value are classified using the following three-tier 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—One or more significant inputs to the valuation model are unobservable. See Note 2, Fair Value of Financial Instruments, for additional disclosure regarding fair value of financial instruments. |
Accounting for Goodwill and Identifiable Intangible Assets | Goodwill. We test goodwill for impairment on the first day of the fourth fiscal quarter or upon the occurrence of events or changes in circumstances that indicate that the asset might be impaired. Goodwill is assigned to our reporting units, which are our operating segments, or components of an operating segment, that constitute a business for which discrete financial information is available, and for which segment management regularly reviews the operating results. During the annual impairment review process we have the option to first perform a qualitative assessment (commonly referred to as “step zero”) over relative events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value or to perform a quantitative assessment (“step one”) where we estimate the fair value of each reporting unit using both an income and market approach. We completed a step zero assessment as of January 1, 2022, and concluded there were no indicators of impairment. See Note 11, Goodwill and Intangible Assets , for discussion and details. When we perform a step one analysis to assess the recoverability of our goodwill, we determine the estimated fair value of each reporting unit and compare it to the carrying value of the reporting unit, including goodwill. When fair value is less than the carrying value of the net assets and related goodwill, an impairment charge is recognized for the excess. The fair value of each reporting unit is determined using both an income and market approach. The value estimated using a discounted cash flow model is weighted equally against the estimated value derived from the guideline company market approach method. This market approach method estimates the price reasonably expected to be realized from the sale of the reporting unit based on comparable companies. In developing the discounted cash flow analysis, our assumptions about future revenues and expenses, capital expenditures, and changes in working capital are based on our plan, as reviewed by the Board of Directors, and assume a terminal growth rate thereafter. A separate discount rate is determined for each reporting unit and these cash flows are then discounted to determine the fair value of the reporting unit. The discounted cash flow analysis is derived from valuation techniques in which one or more significant inputs are not observable (Level 3 fair value measures). Indefinite Lived Intangible Assets. Indefinite lived intangibles are not amortized and are tested for impairment annually on the first day of the fourth fiscal quarter or upon the occurrence of events or changes in circumstances that indicate that the assets might be impaired. We completed a step zero assessment as of January 1, 2022, and concluded there were no indicators of impairment on our indefinite lived intangibles. See Note 11, Goodwill and Intangible Asset s, for discussion and details. Our identifiable intangibles with indefinite lives consist of certain trademarks and tradenames. When we complete a step one assessment, the impairment test consists of a comparison of the estimated fair value of the specific intangible asset with its carrying value. The estimated fair value of these assets is measured using the relief-from-royalty method which assumes that the asset has value to the extent that the owner is relieved of the obligation to pay royalties for the benefits received from them. This method requires that we estimate the future revenue for the related brands and technology, the appropriate royalty rate, and the weighted average cost of capital. We base our fair values and estimates on assumptions we believe to be reasonable, but which are unpredictable and inherently uncertain. If the carrying amount of an asset is higher than its fair value, an impairment exists and the asset would be recorded at the estimated fair value . Our assumptions used to develop the discounted cash flow analysis require us to make significant estimates regarding future revenues and expenses, projected capital expenditures, changes in working capital, and the appropriate discount rate. The projections also take into account several factors including current and estimated economic trends and outlook, costs of raw materials and other factors that are beyond our control. If the current economic conditions were to deteriorate, or if we were to lose significant business, causing a reduction in estimated discounted cash flows, it is possible that the estimated fair value of certain reporting units or tradenames could fall below their carrying value resulting in the necessity to conduct additional impairment tests in future periods. We continually monitor the reporting units and tradenames for impairment indicators and update assumptions used in the most recent calculation of the estimated fair value of a reporting unit or tradenames as appropriate. |
Amortizing Intangible Assets, Long-Lived Assets | Amortizing Intangible Assets, Long-Lived Assets. Our primary identifiable intangible assets include trademarks and tradenames, patented technology, and customer relationships. Our long-lived assets consist primarily of property, plant, and equipment, amortizing right-of-use asset related to our operating leases and amortizing costs related to cloud computing arrangements. We periodically evaluate the recoverability of the carrying amount of our long-lived assets whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable or exceeds its fair value. |
Business Combinations | Business Combinations . We allocate the purchase price, including contingent consideration, of our acquisitions to the assets and liabilities acquired, including identifiable intangible assets, based on their fair values at the date of acquisition. The fair values are primarily based on third-party valuations using our management assumptions that require significant judgments and estimates. The purchase price allocated to intangibles is based on unobservable factors, including but not limited to, projected revenues, expenses, customer attrition rates, royalty rates, a weighted average cost of capital, among others. The weighted average cost of capital uses a market participant’s cost of equity and after-tax cost of debt and reflects the risks inherent in the cash flows. The fair value calculation of initial contingent consideration associated with the purchase price also uses unobservable factors such as projected revenues and expenses over the term of the contingent earn-out period, discounted for the period over which the contingent consideration is measured, and volatility rates. Based upon these assumptions, the initial contingent consideration is then valued using a Monte Carlo simulation analysis in a risk-neutral framework. The inputs used to calculate the fair value of the contingent consideration liabilities are considered to be Level 3 inputs due to the lack of relevant market activity and significant management judgment. See Note 2, Fair Value of Financial Instruments, for additional disclosure regarding fair value of financial instruments. During the measurement period of one year from the acquisition date, we continue to collect information and reevaluate our estimates and assumptions, and record any adjustments to these estimates to goodwill. See Note 7, Acquisitions and Divestitures , for additional information. |
Derivatives and Hedging | Derivatives and Hedging. We mitigate the impact of changes in interest rates and commodity prices affecting the cost of raw materials with interest rate swaps and commodity forward contracts that are accounted for as designated hedges pursuant to ASC Topic 815, “Derivatives and Hedging” ("ASC Topic 815"). ASC Topic 815 requires that an entity recognize all derivatives as either assets or liabilities on the balance sheet, measure those instruments at fair value and recognize changes in the fair value of derivatives in earnings in the period of change unless the derivative qualifies as designated cash flow hedge that offsets certain exposures. Certain criteria must be satisfied in order for derivative financial instruments to be classified and accounted for as a cash flow hedge. Derivatives that are not elected for hedge accounting treatment are recorded immediately in earnings. See Note 4, Derivative Financial Instruments , for additional information. We would discontinue hedge accounting prospectively (i) if it is determined that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item, (ii) when the derivative expires or is sold, terminated, or exercised, (iii) if it becomes probable that the forecasted transaction being hedged by the derivative will not occur, (iv) if a hedged firm commitment no longer meets the definition of a firm commitment, or (v) if it is determined that designation of the derivative as a hedge instrument is no longer appropriate. The fair value of our forward contracts based on pricing models using current market rates. These contracts are classified under Level 2 of the fair value hierarchy (see Note 2, Fair Value of Financial Instruments ). |
Stock-Based Compensation | Stock-Based Compensation. We account for our share-based compensation arrangements in accordance with ASC Topic 718, "Compensation—Stock Compensation" ("ASC Topic 718") which requires the measurement and recognition of compensation expense for all share-based payment awards to employees and directors based on estimated fair values. Our stock-based compensation plans, which are described more fully in Note 17, Stockholders' Equity , provide for the grant of various types of stock-based incentive awards, including performance awards, total stockholder return performance awards ("TSR awards"), performance awards with a TSR modifier, restricted stock/restricted stock units, and options to purchase common stock. The types and mix of stock-based incentive awards are evaluated on an ongoing basis and may vary based on our overall strategy regarding compensation, including consideration of the impact of expensing stock awards on our results of operations. |
Income Taxes | Income Taxes. We account for income taxes under the asset and liability method in accordance with the accounting standard for income taxes. The asset and liability method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities. Under this method, changes in tax rates and laws are recognized in income in the period such changes are enacted. We record net deferred tax assets to the extent that we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations. Significant estimates are required for this analysis. If we were to determine that the amount of deferred income tax assets we would be able to realize in the future had changed, we would make an adjustment to the valuation allowance which would decrease or increase the provision for income taxes. The provision for federal, foreign, and state and local income taxes is calculated on income before income taxes based on current tax law and includes the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provision differs from the amounts currently payable because certain items of income and expense are recognized in different reporting periods for financial reporting purposes than for income tax purposes. |
Worker's Compensation | Worker's Compensation. The liability for losses under our worker's compensation program has been actuarially determined. The balance for worker's compensation liability was $7,354 and $6,214 as of March 31, 2022 and 2021, respectively. |
Translation of Foreign Currencies | Translation of Foreign Currencies. Assets and liabilities of foreign subsidiaries are translated at current exchange rates and the effects of these translation adjustments are reported as a component of accumulated other comprehensive loss ("AOCL") in stockholders' equity. Income and expenses in foreign currencies are translated at the average exchange rate during the period. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss. The components of AOCL, net of income taxes, are as follows: March 31, 2022 2021 Derivatives $ (356) $ 161 Pension and other postretirement benefit liabilities (71,075) (78,166) Cumulative translation adjustment (5,248) (5,190) Total accumulated other comprehensive loss $ (76,679) $ (83,195) The following table details the amounts reclassified from AOCL to earnings as well as the changes in derivatives, pension and other postretirement benefits and foreign currency translation, net of income tax: Years ended March 31, 2022 2021 Derivatives Pension and other Postretire-ment Benefits Cumulative translation adjustment Total Derivatives Pension and other Postretire-ment Benefits Cumulative translation adjustment Total Beginning of year AOCL $ 161 $ (78,166) $ (5,190) $ (83,195) $ (1,426) $ (93,353) $ (6,215) $ (100,994) Change in fair value of derivatives 1,224 — — 1,224 1,309 — — 1,309 Net loss (gain) reclassified from AOCL (1,741) — — (1,741) 278 — — 278 Net actuarial losses reclassified from AOCL (1) — 3,744 — 3,744 — 2,927 — 2,927 Prior service costs reclassified from AOCL (1) — (1,336) — (1,336) — (236) — (236) Valuation adjustment for pension and postretirement benefit plans (1) — 4,683 — 4,683 — 12,496 — 12,496 Net change in cumulative translation adjustment — — (58) (58) — — 1,025 1,025 End of year AOCL $ (356) $ (71,075) $ (5,248) $ (76,679) $ 161 $ (78,166) $ (5,190) $ (83,195) (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. See Note 14, Employee Benefit Plans |
Adoption of New Accounting Pronouncements and Recent Accounting Pronouncements | In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06, " Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. " This ASU simplifies the accounting for convertible instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. Also, this ASU requires the application of the if-converted method for calculating diluted earnings per share and provided that the treasury stock method will be no longer available. The new guidance is effective for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. Entities may adopt the guidance through either a modified retrospective method of transition or a fully retrospective method of transition. We early adopted ASU 2020-06 on April 1, 2021 with no impact on our financial statements. On April 1, 2021, we adopted ASU No. 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ” This ASU removes specific exceptions to the general principles of ASC Topic 740, "Accounting for Income Taxes" and simplifies certain U.S. GAAP requirements. This update is effective for fiscal years beginning after December 15, 2020. The adoption of this standard does not have a material impact on our consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU No. 2021-08, “ Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ” This ASU requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, “Revenue from Contracts with Customers”. At the acquisition date, the company acquiring the business should record related revenue, as if it had originated the contract. Before the update such amounts were recognized by the acquiring company at fair value. This update is effective for fiscal years beginning after December 15, 2022. We early adopted ASU 2021-08 during the third quarter of fiscal year 2022, and retroactively applied it to periods beginning on April 1, 2021. The adoption of this standard did not have a material impact to our purchase accounting and our consolidated financial statements and related disclosures. There are no other new accounting pronouncements that are expected to have a significant impact on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of components of accumulated OCI, net of income taxes | The components of AOCL, net of income taxes, are as follows: March 31, 2022 2021 Derivatives $ (356) $ 161 Pension and other postretirement benefit liabilities (71,075) (78,166) Cumulative translation adjustment (5,248) (5,190) Total accumulated other comprehensive loss $ (76,679) $ (83,195) |
Schedule of Changes in Accumulated Other Comprehensive Loss | The following table details the amounts reclassified from AOCL to earnings as well as the changes in derivatives, pension and other postretirement benefits and foreign currency translation, net of income tax: Years ended March 31, 2022 2021 Derivatives Pension and other Postretire-ment Benefits Cumulative translation adjustment Total Derivatives Pension and other Postretire-ment Benefits Cumulative translation adjustment Total Beginning of year AOCL $ 161 $ (78,166) $ (5,190) $ (83,195) $ (1,426) $ (93,353) $ (6,215) $ (100,994) Change in fair value of derivatives 1,224 — — 1,224 1,309 — — 1,309 Net loss (gain) reclassified from AOCL (1,741) — — (1,741) 278 — — 278 Net actuarial losses reclassified from AOCL (1) — 3,744 — 3,744 — 2,927 — 2,927 Prior service costs reclassified from AOCL (1) — (1,336) — (1,336) — (236) — (236) Valuation adjustment for pension and postretirement benefit plans (1) — 4,683 — 4,683 — 12,496 — 12,496 Net change in cumulative translation adjustment — — (58) (58) — — 1,025 1,025 End of year AOCL $ (356) $ (71,075) $ (5,248) $ (76,679) $ 161 $ (78,166) $ (5,190) $ (83,195) (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. See Note 14, Employee Benefit Plans |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying values and estimated fair values of assets and liabilities that are measured on a recurring basis | The table below discloses information about carrying values and estimated fair value relating to our financial assets and liabilities: March 31, 2022 2021 Carrying Fair Carrying Fair Fixed rate debt (1) $ 500,000 $ 460,000 $ 500,000 $ 493,750 Variable rate debt (2) 170,000 170,000 — — (1) Fixed rate debt —In fiscal year 2021, we issued $500,000 aggregate principal amount o f 4.5% S enior Notes which will mature on March 15, 2029. These notes are unsecured and senior obligations. The fair value of the fixed-rate debt is based on market quotes for each issuance. We consider these to be Level 2 instruments. See Note 13, Long-term Debt, for information on our credit facilities, including certain risks and uncertainties. (2) Variable rate debt — The carrying value of the amounts outstanding under our ABL Revolving Credit Facility approximates the fair value because the interest rates are variable and reflective of market rates as of March 31, 2022. The fair value of this debt is categorized within Level 2 of the fair value hierarchy based on the observable market borrowing rates. See Note 13, Long-term Debt, for additional information on our credit facilities, including related certain risks and uncertainties. |
Schedule of Long-Term Contingent Consideration Liability | Following is a summary of our long-term contingent consideration liability Level 3 activity during fiscal year 2022: Balance, March 31, 2021 $ 153 Additions 35,964 Reclassification to current liabilities (78) Increase in fair value 955 Balance, March 31, 2022 $ 36,994 Contingent consideration liabilities are reported under the following captions in the consolidated balance sheets: March 31, 2022 2021 Other current liabilities $ 96 $ 18 Other long-term liabilities 36,994 153 Total $ 37,090 $ 171 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of operating lease assets and liabilities | The amounts of assets and liabilities related to our operating leases were as follows. March 31, Balance Sheet Caption 2022 2021 Assets: Operating lease assets Operating lease assets $ 78,252 $ 72,400 Liabilities: Current: Operating lease liabilities Other current liabilities $ 11,804 $ 10,044 Long-term: Operating lease liabilities Long-term operating lease liabilities 80,083 77,375 Total lease liabilities $ 91,887 $ 87,419 |
Schedule of lease cost and supplemental cash flow information | The components of lease expense are recorded to cost of sales and selling, general, and administration expenses in the consolidated statements of comprehensive income (loss). The components of lease expense were as follows: Years ended March 31, 2022 2021 Fixed operating lease costs (1) $ 22,917 $ 20,759 Variable operating lease costs 3,322 2,756 Operating and Sublease income (483) (802) Net lease costs $ 25,756 $ 22,713 (1) Includes short-term leases, which are immaterial. The weighted average remaining lease term and weighted average discount rate is as follows: March 31, 2022 2021 Weighted Average Remaining Lease Term (Years): Operating leases 8.65 9.32 Weighted Average Discount Rate: Operating leases 7.99 % 8.64 % Supplemental cash flow information related to leases is as follows: Years ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 19,268 $ 17,524 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 15,537 $ 13,167 |
Schedule of future minimum lease payments | The approximate future minimum lease payments under operating leases were as follows: Fiscal year 2023 $ 18,484 Fiscal year 2024 16,353 Fiscal year 2025 14,698 Fiscal year 2026 13,200 Fiscal year 2027 12,319 Thereafter 55,576 Total lease payments 130,630 Less imputed interest (38,743) Present value of lease liabilities $ 91,887 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate our net sales by major product category: Years ended March 31, 2022 2021 Sporting Products Outdoor Products Total Sporting Products Outdoor Products Total Sporting Products (1) $ 1,737,891 $ — $ 1,737,891 $ 1,119,754 $ — $ 1,119,754 Outdoor Accessories (2) — 442,348 442,348 — 398,938 398,938 Action Sports (3) — 401,984 401,984 — 364,454 364,454 Outdoor Recreation (4) — 462,398 462,398 — 342,376 342,376 Total $ 1,737,891 $ 1,306,730 $ 3,044,621 $ 1,119,754 $ 1,105,768 $ 2,225,522 Geographic Region United States $ 1,632,507 $ 976,939 $ 2,609,446 $ 1,038,403 $ 867,551 $ 1,905,954 Rest of the World 105,384 329,791 435,175 81,351 238,217 319,568 Total $ 1,737,891 $ 1,306,730 $ 3,044,621 $ 1,119,754 $ 1,105,768 $ 2,225,522 (1) Sporting Products includes the Ammunition operating segment. (2) Outdoor Accessories includes the Outdoor Accessories (formerly named Hunting and Shooting) operating segment and our Stone Glacier business. (3) Action Sports includes the operating segments: Sports Protection and Cycling. (4) Outdoor Recreation includes the operating segments: Hydration, Outdoor Cooking, and Golf. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | In computing EPS for the fiscal years presented, earnings, as reported for each respective period, is divided by the number of shares below: Years ended March 31, 2022 2021 2020 Numerator: Net income (loss) $ 473,226 $ 266,012 $ (155,079) Denominator: Weighted-average number of common shares outstanding, basic 57,190 58,241 57,846 Dilutive effect of stock-based awards (1) 1,947 1,664 — Diluted shares 59,137 59,905 57,846 Earnings (loss) per common share: Basic $ 8.27 $ 4.57 $ (2.68) Diluted $ 8.00 $ 4.44 $ (2.68) |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Foresight preliminary purchase price allocation: September 28, 2021 Total consideration transferred $ 470,772 Fair value of assets acquired: Accounts receivable $ 2,806 Inventories 10,780 Intangible assets 131,500 Property, plant, and equipment 1,870 Operating lease assets 6,506 Other assets 2,006 Total assets 155,468 Fair value of liabilities assumed: Accounts payable 6,177 Customer deposits 2,084 Long-term operating lease liabilities 5,961 Contract liabilities 2,992 Other liabilities 1,729 Other long-term liabilities 9,182 Total liabilities 28,125 Net assets acquired 127,343 Goodwill $ 343,429 Remington Purchase Price Allocation: October 12, 2020 Total purchase price: Cash paid $ 81,400 Cash paid for working capital 291 Total purchase price 81,691 Fair value of assets acquired: Inventories $ 20,021 Intangible assets 26,200 Property, plant, and equipment 31,200 Other assets 3,363 Total assets 80,784 Fair value of liabilities assumed: Accounts payable 311 Other liabilities 2,969 Total liabilities 3,280 Net assets acquired 77,504 Goodwill $ 4,187 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | Foresight intangible assets above include: Value Useful life (years) Tradenames $ 42,500 20 Patented technology 19,900 5 to 10 Customer Relationships 69,100 5 to 15 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma financial information presents our results as if the Foresight acquisition had been completed on April 1, 2020: Years ended March 31, 2022 2021 Sales, net $ 3,088,220 $ 2,296,413 Net income 515,345 268,547 The following pro forma financial information presents our results as if the Remington acquisition had been completed on April 1, 2019: Years ended March 31, 2021 2020 Sales, net $ 2,298,396 $ 1,933,699 Net income (loss) 255,022 (205,399) |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments | The unaudited supplemental pro forma data above includes the following significant non-recurring adjustments to net income: Years ended March 31, 2022 2021 Fees for advisory, legal, and accounting services (1) $ (3,080) $ 3,080 Inventory step-up, net (2) (1,247) $1,247 Interest (3) 2,203 6,565 Depreciation & amortization (4) (5) 4,961 8,122 Income tax provision (6) 3,520 5,520 (1) During the fiscal year ended March 31, 2022, we incurred a total of $3,080 in acquisition related costs, including legal and other professional fees, related to the acquisition, all of which were reported in selling, general, and administrative expense in the consolidated statements of comprehensive income. This adjustment is to show the results as if those fees were incurred during the first quarter of fiscal 2021. (2) Adjustment reflects the increased cost of goods sold expense resulting from the fair value step-up in inventory which was expensed in full during the third quarter of fiscal year 2022. This adjustment is to show the results as if that expense was incurred during the first quarter of fiscal 2021. (3) Adjustment to reflect an increase in interest expense resulting from assumed advances to complete the transaction on our 2018 New Credit Facilities prior to March 31, 2021 and our 2021 ABL Revolving Credit Facility after March 31, 2021. (4) Adjustment for depreciation related to the revised fair-value basis of the acquired property, plant and equipment and change in estimated useful lives. (5) Adjustment for amortization of acquired intangible assets. (6) Income tax effect of the adjustments made at a blended federal and state statutory rate including the impact of the valuation allowance. The unaudited supplemental pro forma data above include the following significant non-recurring adjustments to net income: Years ended March 31, 2021 2020 Fees for advisory, legal, and accounting services (1) $ (3,429) $ 3,429 Inventory step-up, net (2) (400) 400 Interest (3) 835 3,538 Depreciation (4) 1,902 3,804 Amortization (5) 42 84 Income taxes (6) 2,324 — (1) Adjustment for fees that were incurred in connection with the acquisition of Remington during fiscal year 2021 as if those fees were incurred during the first quarter of fiscal year 2020. Costs were recorded in selling, general, and administrative expense. We paid a total of $3,429 in transaction costs. (2) Adjustment reflects the increased cost of goods sold expense resulting from the fair value step-up in inventory which was expensed over the first inventory cycle. (3) Adjustment to reflect an increase in interest expense resulting from interest on the 2018 ABL Revolving Credit Facility . (4) Adjustment for depreciation related to the revised basis of the acquired property, plant, and equipment and change in estimated useful lives. (5) Adjustment for amortization of acquired intangible assets. (6) Income tax effect of the adjustments made at a blended federal and state statutory rate including the impact of the valuation allowance. |
Schedule of Acquired Indefinite-lived Intangible Assets by Major Class | Intangible assets above include: Intangible assets above include: Value Useful life (years) Indefinite lived tradenames $ 24,500 Indefinite Customer relationships 1,700 20 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables | Net receivables are summarized as follows: March 31, 2022 2021 Trade receivables $ 357,584 $ 307,098 Other receivables 13,699 7,899 Less: allowance for estimated credit losses and discounts (14,510) (13,422) Net receivables $ 356,773 $ 301,575 Note Receivable, see Note 2, Fair Value of Financial Instruments , is summarized as follows: March 31, 2022 2021 Principal $ 12,000 $ 12,000 Less: unamortized discount (2,308) (3,189) Note receivable, net, included within deferred charges and other non-current assets $ 9,692 $ 8,811 |
Schedule of Reconciliation of Changes in Allowance for Doubtful Accounts | The following provides a reconciliation of the activity related to the allowance for estimated credit losses and discounts for the periods presented: Balance, March 31, 2020 $ 14,760 Provision for credit losses 1,817 Write-off of uncollectible amounts, net of recoveries (1,875) Other adjustments (1,280) Balance, March 31, 2021 13,422 Provision for credit losses 2,350 Write-off of uncollectible amounts, net of recoveries (1,188) Other adjustments (74) Balance, March 31, 2022 $ 14,510 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of classification of inventories | Net inventories consist of the following: March 31, 2022 2021 Raw materials $ 220,425 $ 133,970 Work in process 60,390 47,829 Finished goods 362,161 272,705 Net inventories $ 642,976 $ 454,504 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant, and equipment consists of the following: March 31, 2022 2021 Land $ 12,575 $ 10,844 Buildings and improvements 84,916 78,185 Machinery and equipment 461,635 456,001 Property not yet in service 19,672 17,952 Gross property, plant, and equipment 578,798 562,982 Less: accumulated depreciation (367,711) (365,451) Net property, plant, and equipment $ 211,087 $ 197,531 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of carrying amount of goodwill by operating segment | The change in the carrying value of goodwill was as follows: Sporting Products Outdoor Products Total Balance, March 31, 2020 $ 83,167 $ — $ 83,167 Acquisitions 5,680 — 5,680 Divestitures (2,765) — (2,765) Balance, March 31, 2021 86,082 — 86,082 Acquisitions 23 395,752 395,775 Balance, March 31, 2022 $ 86,105 $ 395,752 $ 481,857 |
Schedule of amortizing assets | Net intangibles consisted of the following: March 31, 2022 2021 Gross Accumulated Total Gross Accumulated Total Trade names $ 113,915 $ (23,756) $ 90,159 $ 49,560 $ (18,174) $ 31,386 Patented technology 36,854 (13,324) 23,530 16,954 (11,354) 5,600 Customer relationships and other 328,168 (117,664) 210,504 241,306 (98,939) 142,367 Total 478,937 (154,744) 324,193 307,820 (128,467) 179,353 Non-amortizing trade names 135,602 — 135,602 135,602 — 135,602 Net intangible assets $ 614,539 $ (154,744) $ 459,795 $ 443,422 $ (128,467) $ 314,955 |
Schedule of expected future amortization expense | We expect amortization expense related to these assets in each of the next five fiscal years and beyond to be incurred as follows: Fiscal year 2023 $ 32,323 Fiscal year 2024 32,271 Fiscal year 2025 32,253 Fiscal year 2026 29,244 Fiscal year 2027 27,794 Thereafter 170,308 Total $ 324,193 |
Other Current and Non-current_2
Other Current and Non-current Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of major categories of other current and long-term accrued liabilities | The major categories over 5% of current liabilities are as follows: March 31, 2022 2021 Accrual for in-transit inventory $ 11,620 $ 24,356 Other 115,560 96,212 Total other current liabilities $ 127,180 $ 120,568 |
Schedule of reconciliation of the changes in product warranty liability | Balance as of March 31, 2020 $ 9,149 Payments made (4,475) Warranties issued 4,382 Changes related to pre-existing warranties and other adjustments (360) Balance as of March 31, 2021 8,696 Payments made (4,169) Warranties issued 4,479 Changes related to pre-existing warranties and other adjustments 67 Balance as of March 31, 2022 $ 9,073 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, including the current portion | March 31, 2022 2021 2021 ABL Revolving Credit Facility $ 170,000 $ — 4.5% Senior Notes 500,000 500,000 Less: unamortized deferred financing costs (3,886) (4,436) Carrying amount of long-term debt $ 666,114 $ 495,564 |
Schedule of minimum payments on outstanding long-term debt | The scheduled minimum payments on outstanding long-term debt were as follows as of March 31, 2022: Fiscal year 2023 $ — Fiscal year 2024 — Fiscal year 2025 — Fiscal year 2026 170,000 Fiscal year 2027 — Thereafter 500,000 Total $ 670,000 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of expected future benefit payments | The following benefit payments, which reflect expected future service, are expected to be paid primarily out of the pension trust: Fiscal year 2023 $ 13,737 Fiscal year 2024 13,279 Fiscal year 2025 14,063 Fiscal year 2026 13,481 Fiscal year 2027 13,152 Fiscal years 2028 through 2032 63,305 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income taxes and noncontrolling interest | Income (loss) before income taxes is as follows: Years ended March 31, 2022 2021 2020 Current: U.S. $ 619,464 $ 259,009 $ (173,255) Non-U.S. 1,494 375 2,228 Income (loss) before income taxes $ 620,958 $ 259,384 $ (171,027) |
Schedule of income tax provision | Our income tax (provision) benefit consists of: Years ended March 31, 2022 2021 2020 Current: Federal $ (107,429) $ 15,723 $ 10,210 State (28,119) (18,684) 1,585 Non-US (739) (350) (197) Deferred: Federal (10,327) 2,668 2,799 State (1,483) 7,271 1,703 Non-US 365 — (152) Income tax (provision) benefit $ (147,732) $ 6,628 $ 15,948 |
Schedule of items responsible for the differences between the federal statutory rate and ATK's effective rate | The items responsible for the differences between the federal statutory rate and our effective rate are as follows: Years ended March 31, 2022 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal impact 3.9 % 4.6 % 1.1 % Nondeductible goodwill impairment — % — % (11.3) % Nondeductible loss on divestiture — % (0.4) % (1.0) % Change in tax contingency (0.7) % (3.6) % 4.5 % Impact of law changes — % (4.1) % 1.8 % Valuation allowance — % (19.0) % (4.8) % Other (0.4) % (1.1) % (2.0) % Effective income tax rate 23.8 % (2.6) % 9.3 % |
Schedule of components of deferred tax assets and liabilities | As of March 31, 2022 and 2021, the components of deferred tax assets and liabilities were as follows: March 31, 2022 2021 Deferred tax assets: Inventories $ 7,178 $ 7,359 Retirement benefits 5,384 8,174 Accounts receivable 6,664 8,417 Accruals for employee benefits 7,917 11,216 Other reserves 3,146 3,906 Loss and credit carryforwards 3,082 4,040 Capital loss carryforward 19,598 19,666 Operating lease liabilities 18,984 18,623 Other 4,926 2,970 Total deferred tax assets 76,879 84,371 Valuation allowance (20,417) (22,528) Total net deferred assets 56,462 61,843 Deferred tax liabilities: Intangible assets (43,957) (29,847) Property, plant, and equipment (24,571) (23,420) Operating lease assets (17,238) (16,811) Total deferred tax liabilities (85,766) (70,078) Net deferred income tax liability $ (29,304) $ (8,235) |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows: Years ended March 31, 2022 2021 2020 Unrecognized Tax Benefits—beginning of period $ 18,071 $ 23,513 $ 27,252 Gross increases—tax positions in prior periods 304 2,713 — Gross decreases—tax positions in prior periods — — — Gross increases—current-period tax positions 6,581 2,716 1,949 Gross decreases—current-period tax positions — — — Settlements — — (171) Lapse of statute of limitations (5,501) (10,871) (5,517) Unrecognized Tax Benefits—end of period $ 19,455 $ 18,071 $ 23,513 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of performance based awards activity | A summary of our performance based awards for fiscal year 2022 is presented below: Shares Weighted average grant date fair value Nonvested as of March 31, 2021 1,002,037 $ 21.87 Earned (1) (557,162) 9.29 Adjustment for payout (2) 278,581 9.29 Awarded 318,186 37.88 Nonvested as of March 31, 2022 1,041,642 $ 30.12 (1) Performance shares are earned and vest at the end of the performance period based on the performance criteria achieved, subject to continued service through the vesting date. (2) Adjustment equals the difference between performance shares issued at target and the 200% of target shares earned during fiscal year 2022. |
Schedule of stock option activity | A summary of our stock option activity for fiscal year 2022 is presented below: Shares Weighted average exercise price Weighted average remaining contractual life (in years) Aggregate intrinsic value Outstanding as of March 31,2021 397,610 $ 13.99 6.8 $ 7,244 Exercised (28,921) 18.41 Outstanding and exercisable as of March 31,2022 368,689 $ 13.65 6.1 $ 8,128 |
Schedule of restricted stock unit award activity | A summary of our restricted stock unit award activity for fiscal year 2022 is presented below. Shares Weighted average grant date fair value Nonvested as of March 31, 2021 1,064,580 $ 13.56 Granted 352,716 34.58 Vested (509,861) 12.08 Forfeited (16,862) 19.54 Nonvested as of March 31, 2022 890,573 $ 22.56 |
Operating Segment Information (
Operating Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments | Year ended March 31, 2022 Sporting Products Outdoor Products (a) Corporate and other reconciling items Total Sales, net $ 1,737,891 $ 1,306,730 $ — $ 3,044,621 Gross Profit 712,160 399,447 (2,375) 1,109,232 EBIT 600,415 164,494 (118,687) 646,222 Capital expenditures 25,637 12,890 3,907 42,434 Depreciation and amortization 25,602 42,027 4,711 72,340 Total assets 743,960 1,539,542 112,699 2,396,201 Year ended March 31, 2021 (b) Sporting Products Outdoor Products (a) Corporate and other reconciling items Total Sales, net $ 1,119,754 $ 1,105,768 $ — $ 2,225,522 Gross Profit 312,230 321,423 (693) 632,960 EBIT 222,713 137,942 (75,697) 284,958 Capital expenditures 14,209 10,942 4,096 29,247 Depreciation and amortization 23,292 37,935 3,883 65,110 Total assets 655,788 794,961 314,190 1,764,939 Year ended March 31, 2020 (b) Sporting Products Outdoor Products (a) Corporate and other reconciling items Total Sales, net $ 871,550 $ 884,321 $ — $ 1,755,871 Gross Profit 137,914 222,372 (1,520) 358,766 EBIT 66,898 43,125 (242,259) (132,236) Capital expenditures 10,577 4,827 3,857 19,261 Depreciation and amortization 20,077 41,094 6,687 67,858 Total assets 552,337 760,217 82,323 1,394,877 (a) Reconciling items represent corporate general and administrative expenses and other income (expense) not included by management in determining segment EBIT. Reconciling items in fiscal year 2022 included fair value step-up in inventory of $2,375, and post-acquisition compensation expense of $8,987 allocated from businesses acquired. Reconciling items in fiscal year 2021 included an $18,467 gain on divestiture and $690 in inventory step-up expense from businesses acquired. Reconciling items in fiscal year 2020 include non-cash goodwill and intangible impairment charges of $121,329 and $34,259, respectively, related to the historical outdoor products segment, $9,429 of held for sale impairment charges related to the historical Sporting Products segment, restructuring charges of $9,210, contingent consideration expenses of $1,685, restructuring costs of $1,520, merger and acquisition costs of $644, and loss on the sale of our Firearms business of $433. (b) During the third quarter of fiscal year 2022, we modified and renamed our reportable segments. Accordingly fiscal year 2021 and 2020 have been restated to conform to the change. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022USD ($)reportable_segmentstate | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Accounting Policies [Abstract] | |||
Number of reportable segments | reportable_segment | 2 | ||
Number of states in which entity operates | state | 26 | ||
Advertising expense | $ 58,028 | $ 44,600 | $ 37,950 |
Maximum term of original maturity to classify investments as cash equivalents (in months) | 3 months | ||
Workers' compensation liability | $ 7,354 | $ 6,214 | |
Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Product warranty term | one year |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Components of AOCL) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Accounting Policies [Abstract] | ||
Derivatives | $ (356) | $ 161 |
Pension and other postretirement benefit liabilities | (71,075) | (78,166) |
Cumulative translation adjustment | (5,248) | (5,190) |
Total accumulated other comprehensive loss | $ (76,679) | $ (83,195) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Changes to AOCL) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Pension and other Postretirement Benefits, beginning period | $ (78,166) | ||
Cumulative translation adjustment, beginning period | (5,190) | ||
Accumulated other comprehensive loss, beginning period | (83,195) | ||
Change in fair value of derivatives | 1,224 | $ 1,309 | |
Net loss (gain) reclassified from AOCL | (1,741) | 278 | |
Net acturarial losses reclassified from AOCL | 3,744 | 2,927 | $ 3,247 |
Prior service costs reclassified from AOCL | (1,336) | (236) | (313) |
Valuation adjustment for pension and postretirement benefit plans | 4,683 | 12,496 | |
Net change in cumulative translation adjustment | (58) | 1,025 | (333) |
Pension and other Postretirement Benefits, end of period | (71,075) | (78,166) | |
Cumulative translation adjustment, end of period | (5,248) | (5,190) | |
Accumulated other comprehensive loss, end of period | (76,679) | (83,195) | |
AOCI Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive loss, beginning period | (83,195) | (100,994) | |
Accumulated other comprehensive loss, end of period | (76,679) | (83,195) | (100,994) |
Derivatives | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Derivatives, beginning of the period | 161 | (1,426) | |
Change in fair value of derivatives | 1,224 | 1,309 | |
Net loss (gain) reclassified from AOCL | (1,741) | 278 | |
Derivatives, end of the period | (356) | 161 | (1,426) |
Pension and other Postretire-ment Benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Pension and other Postretirement Benefits, beginning period | (78,166) | (93,353) | |
Net acturarial losses reclassified from AOCL | 3,744 | 2,927 | |
Prior service costs reclassified from AOCL | (1,336) | (236) | |
Valuation adjustment for pension and postretirement benefit plans | 4,683 | 12,496 | |
Pension and other Postretirement Benefits, end of period | (71,075) | (78,166) | (93,353) |
Cumulative translation adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative translation adjustment, beginning period | (5,190) | (6,215) | |
Net change in cumulative translation adjustment | (58) | 1,025 | |
Cumulative translation adjustment, end of period | $ (5,248) | $ (5,190) | $ (6,215) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | Jul. 05, 2019 | Mar. 31, 2022 | Dec. 26, 2021 | Jun. 27, 2021 | Mar. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Principal | $ 12,000 | $ 12,000 | $ 12,000 | ||
Note receivable with imputed interest, term of contract | 5 years | ||||
QuietKat | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Business combination, contingent consideration, liability | 23,134 | $ 22,400 | |||
Fiber Energy Products | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Business combination, contingent consideration, liability | 3,625 | $ 3,625 | |||
Stone Glacier | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Business combination, contingent consideration, liability | 9,939 | ||||
HEVI-Shot | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Business combination, contingent consideration, liability | $ 392 | $ 176 | |||
Fair Value | Fair Value, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Note receivable with imputed interest, effective yield (interest rate) | 10.00% |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Long-term Contingent Consideration Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Long-Term Contingent Consideration Liability [Line Items] | |||
Additions | $ 35,964 | $ 0 | $ 0 |
Increase in fair value | 955 | 0 | $ 0 |
Fair Value, Inputs, Level 3 | Fair Value, Recurring | |||
Long-Term Contingent Consideration Liability [Line Items] | |||
Balance at the beginning of the period | 171 | ||
Additions | 35,964 | ||
Reclassification to current liabilities | (78) | ||
Increase in fair value | 955 | ||
Balance at the end of the period | 37,090 | 171 | |
Other current liabilities | Fair Value, Inputs, Level 3 | Fair Value, Recurring | |||
Long-Term Contingent Consideration Liability [Line Items] | |||
Balance at the beginning of the period | 18 | ||
Balance at the end of the period | 96 | 18 | |
Other long-term liabilities | Fair Value, Inputs, Level 3 | Fair Value, Recurring | |||
Long-Term Contingent Consideration Liability [Line Items] | |||
Balance at the beginning of the period | 153 | ||
Balance at the end of the period | $ 36,994 | $ 153 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Assets and liabilities that are measured on a recurring basis | ||
Long-term debt | $ 666,114 | $ 495,564 |
4.5% Senior Notes | ||
Assets and liabilities that are measured on a recurring basis | ||
Long-term debt | $ 500,000 | |
Long-term debt, percentage bearing fixed interest, percentage rate | 4.50% | |
4.5% Senior Notes | Reported Value Measurement | ||
Assets and liabilities that are measured on a recurring basis | ||
Fixed rate debt | $ 500,000 | 500,000 |
4.5% Senior Notes | Fair Value | Fair Value, Recurring | ||
Assets and liabilities that are measured on a recurring basis | ||
Fixed rate debt | 460,000 | 493,750 |
ABL Revolving Credit Facility, 2018 | Reported Value Measurement | Fair Value, Recurring | ||
Assets and liabilities that are measured on a recurring basis | ||
Variable rate debt | 170,000 | 0 |
ABL Revolving Credit Facility, 2018 | Fair Value | Fair Value, Recurring | ||
Assets and liabilities that are measured on a recurring basis | ||
Variable rate debt | $ 170,000 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2022 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term (in years) | 5 years |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Leases [Abstract] | ||
Operating lease assets | $ 78,252 | $ 72,400 |
Operating lease liabilities, current | $ 11,804 | $ 10,044 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Operating lease liabilities, long-term | $ 80,083 | $ 77,375 |
Total lease liabilities | $ 91,887 | $ 87,419 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Fixed operating lease costs | $ 22,917 | $ 20,759 |
Variable operating lease costs | 3,322 | 2,756 |
Operating and Sublease income | (483) | (802) |
Net lease costs | $ 25,756 | $ 22,713 |
Operating leases, weighted average remaining lease term (in years) | 8 years 7 months 24 days | 9 years 3 months 25 days |
Operating leases, weighted average discount rate | 7.99% | 8.64% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Leases [Abstract] | ||
Fiscal year 2023 | $ 18,484 | |
Fiscal year 2024 | 16,353 | |
Fiscal year 2025 | 14,698 | |
Fiscal year 2026 | 13,200 | |
Fiscal year 2027 | 12,319 | |
Thereafter | 55,576 | |
Total lease payments | 130,630 | |
Less imputed interest | (38,743) | |
Present value of lease liabilities | $ 91,887 | $ 87,419 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities: | $ 19,268 | $ 17,524 |
Right-of-use assets obtained in exchange for lease liabilities: | $ 15,537 | $ 13,167 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) lb in Thousands | 12 Months Ended |
Mar. 31, 2022lb | |
Lead Forward Contract | |
Derivative [Line Items] | |
Derivative, nonmonetary notional amount, mass | 1,800 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Sales, net | $ 3,044,621 | $ 2,225,522 | $ 1,755,871 |
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 | $ 2,609,446 | 1,905,954 | |
Rest of the World | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 435,175 | 319,568 | |
Sporting Products | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 1,737,891 | 1,119,754 | |
Outdoor Accessories | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 442,348 | 398,938 | |
Action Sports | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 401,984 | 364,454 | |
Outdoor Recreation | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 462,398 | 342,376 | |
Sporting Products | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 1,737,891 | 1,119,754 | |
Sporting Products | United States | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 1,632,507 | 1,038,403 | |
Sporting Products | Rest of the World | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 105,384 | 81,351 | |
Sporting Products | Sporting Products | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 1,737,891 | 1,119,754 | |
Outdoor Products | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 1,306,730 | 1,105,768 | |
Outdoor Products | United States | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 976,939 | 867,551 | |
Outdoor Products | Rest of the World | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 329,791 | 238,217 | |
Outdoor Products | Outdoor Accessories | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 442,348 | 398,938 | |
Outdoor Products | Action Sports | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 401,984 | 364,454 | |
Outdoor Products | Outdoor Recreation | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | $ 462,398 | $ 342,376 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income (loss) | $ 473,226 | $ 266,012 | $ (155,079) |
Weighted-average number of common shares outstanding, basic (in shares) | 57,190,000 | 58,241,000 | 57,846,000 |
Dilutive effect of stock-based awards (in shares) | 1,947,000 | 1,664,000 | 0 |
Diluted shares (in shares) | 59,137,000 | 59,905,000 | 57,846,000 |
Earnings (loss) per common share: | |||
Basic (in dollars per share) | $ 8.27 | $ 4.57 | $ (2.68) |
Diluted (in dollars per share) | $ 8 | $ 4.44 | $ (2.68) |
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 543,000 | 0 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Thousands | Sep. 28, 2021 | Oct. 12, 2020 | Dec. 26, 2021 | Jun. 27, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Revolving Credit Facility | New Credit Facilities | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from issuance of debt | $ 30,000 | |||||
Stone Glacier | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, contingent consideration, liability | $ 9,939 | |||||
Fiber Energy Products | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, contingent consideration, liability | $ 3,625 | 3,625 | ||||
Foresight Sports | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration transferred | $ 470,772 | |||||
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | 61,173 | |||||
Business combination, pro forma information, earnings or loss of acquiree since acquisition date, actual | $ 18,423 | |||||
Foresight Sports | Employee Retention Payments | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, separately recognized transactions, post combination compensation expense | 5,599 | |||||
Foresight Sports | Contingent Payments Related To Net Sales Targets Being Met | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, separately recognized transactions, post combination compensation expense | $ 25,000 | |||||
QuietKat | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, contingent consideration, liability | $ 22,400 | 23,134 | ||||
Other payments to acquire businesses | $ 13,000 | |||||
Business acquisition, milestone payment period (in years) | 3 years | |||||
HEVI-Shot | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, contingent consideration, liability | $ 392 | $ 176 | ||||
Remington Outdoor Company, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid | 81,691 | |||||
Payments to acquire businesses, gross, cash on hand | $ 51,691 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 28, 2021 | Oct. 12, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Total purchase price: | |||||
Goodwill | $ 481,857 | $ 86,082 | $ 83,167 | ||
Remington Outdoor Company, Inc. | |||||
Total purchase price: | |||||
Cash paid | $ 81,400 | ||||
Cash paid for working capital | 291 | ||||
Total purchase price | 81,691 | ||||
Inventories | 20,021 | ||||
Intangible assets | 26,200 | ||||
Property, plant, and equipment | 31,200 | ||||
Other assets | 3,363 | ||||
Total assets | 80,784 | ||||
Accounts payable | 311 | ||||
Other long-term liabilities | 2,969 | ||||
Total liabilities | 3,280 | ||||
Net assets acquired | 77,504 | ||||
Goodwill | $ 4,187 | ||||
Foresight Sports | |||||
Business Acquisition [Line Items] | |||||
Total consideration transferred | $ 470,772 | ||||
Total purchase price: | |||||
Accounts receivable | 2,806 | ||||
Inventories | 10,780 | ||||
Intangible assets | 131,500 | ||||
Property, plant, and equipment | 1,870 | ||||
Operating lease assets | 6,506 | ||||
Other assets | 2,006 | ||||
Total assets | 155,468 | ||||
Accounts payable | 6,177 | ||||
Customer deposits | 2,084 | ||||
Long-term operating lease liabilities | 5,961 | ||||
Contract liabilities | 2,992 | ||||
Other liabilities | 1,729 | ||||
Other long-term liabilities | 9,182 | ||||
Total liabilities | 28,125 | ||||
Net assets acquired | 127,343 | ||||
Goodwill | $ 343,429 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Indefinite and Finite-lived Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Sep. 28, 2021 | Oct. 12, 2020 | Mar. 31, 2022 |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 12 years 6 months | ||
Foresight Sports | Tradenames | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 42,500 | ||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 20 years | ||
Foresight Sports | Patented technology | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 19,900 | ||
Foresight Sports | Patented technology | Minimum | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 5 years | ||
Foresight Sports | Patented technology | Maximum | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 10 years | ||
Foresight Sports | Customer Relationships | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 69,100 | ||
Foresight Sports | Customer Relationships | Minimum | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 5 years | ||
Foresight Sports | Customer Relationships | Maximum | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 15 years | ||
Remington Outdoor Company, Inc. | Tradenames | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets acquired | $ 24,500 | ||
Remington Outdoor Company, Inc. | Customer Relationships | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 1,700 | ||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 20 years |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Supplemental Pro Forma Data (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Remington Outdoor Company, Inc. | ||
Business Acquisition [Line Items] | ||
Sales, net | $ 2,298,396 | $ 1,933,699 |
Net income (loss) | 255,022 | (205,399) |
Foresight Sports | ||
Business Acquisition [Line Items] | ||
Sales, net | 3,088,220 | 2,296,413 |
Net income (loss) | $ 515,345 | $ 268,547 |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Significant Nonrecurring Adjustments to Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 27, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Interest | $ 25,264 | $ 25,574 | $ 38,791 | |
Depreciation and amortization | 72,340 | 65,110 | 67,858 | |
Depreciation | 46,094 | 45,264 | 47,863 | |
Income tax provision (benefit) | 147,732 | (6,628) | $ (15,948) | |
Foresight Sports | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Fees for advisory, legal, accounting services | 3,080 | |||
Foresight Sports | Acquisition-related Costs | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Fees for advisory, legal, accounting services | (3,080) | 3,080 | ||
Inventory step-up, net | (1,247) | 1,247 | ||
Interest | 2,203 | 6,565 | ||
Depreciation and amortization | 4,961 | 8,122 | ||
Income tax provision (benefit) | 3,520 | 5,520 | ||
Remington Outdoor Company, Inc. | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Fees for advisory, legal, accounting services | $ 3,429 | |||
Remington Outdoor Company, Inc. | Acquisition-related Costs | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Fees for advisory, legal, accounting services | (3,429) | 3,429 | ||
Inventory step-up, net | (400) | 400 | ||
Interest | 835 | 3,538 | ||
Depreciation | 1,902 | 3,804 | ||
Amortization | 42 | 84 | ||
Income tax provision (benefit) | $ 2,324 | $ 0 |
Acquisitions and Divestitures_6
Acquisitions and Divestitures - Divestiture of Business (Details) - USD ($) $ in Thousands | Jul. 05, 2019 | Dec. 27, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on divestitures (Note 7) | $ 0 | $ 18,467 | $ (433) | ||
Proceeds from the sale of businesses | 0 | 23,654 | 156,567 | ||
Principal | $ 12,000 | $ 12,000 | 12,000 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on divestitures (Note 7) | $ 18,467 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Firearm Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gross proceeds from divestiture of business | 170,000 | ||||
Proceeds from the sale of businesses | 154,123 | ||||
Principal | $ 12,000 | ||||
Pretax loss on divestiture | $ 433 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Firearm Business | Other Expense | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Pretax loss on divestiture | $ 433 |
Receivables (Components of Rece
Receivables (Components of Receivables) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Receivables [Abstract] | |||
Trade receivables | $ 357,584 | $ 307,098 | |
Other receivables | 13,699 | 7,899 | |
Less: allowance for estimated credit losses and discounts | (14,510) | (13,422) | $ (14,760) |
Net receivables | $ 356,773 | $ 301,575 |
Receivables (Narrative) (Detail
Receivables (Narrative) (Details) | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Walmart | Accounts Receivable | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 14.00% | 18.00% |
Receivables (Reconciliation of
Receivables (Reconciliation of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Balance at beginning of period | $ 13,422 | $ 14,760 |
Provision for credit losses | 2,350 | 1,817 |
Write-off of uncollectible amounts, net of recoveries | (1,188) | (1,875) |
Other adjustments | (74) | (1,280) |
Balance at end of period | $ 14,510 | $ 13,422 |
Receivables (Note Receivable) (
Receivables (Note Receivable) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 | Jul. 05, 2019 |
Receivables [Abstract] | |||
Principal | $ 12,000 | $ 12,000 | $ 12,000 |
Less: unamortized discount | (2,308) | (3,189) | |
Note receivable, net, included within deferred charges and other non-current assets | $ 9,692 | $ 8,811 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 220,425 | $ 133,970 |
Work in process | 60,390 | 47,829 |
Finished goods | 362,161 | 272,705 |
Net inventories | 642,976 | 454,504 |
Noncurrent inventory | $ 14,662 | $ 12,226 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | $ 46,094 | $ 45,264 | $ 47,863 |
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 1 year | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 20 years | ||
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 1 year | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 30 years |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment (Schedule of Property, Plant, and Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant, and equipment | $ 578,798 | $ 562,982 |
Less: accumulated depreciation | (367,711) | (365,451) |
Net property, plant, and equipment | 211,087 | 197,531 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant, and equipment | 12,575 | 10,844 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant, and equipment | 84,916 | 78,185 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant, and equipment | 461,635 | 456,001 |
Property not yet in service | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant, and equipment | $ 19,672 | $ 17,952 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Goodwill Rollforward by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in the carrying amount of goodwill | ||
Balance at the beginning of the period | $ 86,082 | $ 83,167 |
Acquisitions | 395,775 | 5,680 |
Divestitures | (2,765) | |
Balance at the end of the period | 481,857 | 86,082 |
Sporting Products | ||
Changes in the carrying amount of goodwill | ||
Balance at the beginning of the period | 86,082 | 83,167 |
Acquisitions | 23 | 5,680 |
Divestitures | (2,765) | |
Balance at the end of the period | 86,105 | 86,082 |
Outdoor Products | ||
Changes in the carrying amount of goodwill | ||
Balance at the beginning of the period | 0 | 0 |
Acquisitions | 395,752 | 0 |
Divestitures | 0 | |
Balance at the end of the period | $ 395,752 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 27, 2020 | |
Goodwill [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 12 years 6 months | ||||
Amortization of intangible assets | $ 26,246 | $ 19,846 | $ 19,995 | ||
Outdoor Recreation | |||||
Goodwill [Line Items] | |||||
Goodwill, Impairment Loss | $ (121,329) | ||||
Measurement Input, Discount Rate | Outdoor Recreation | Valuation, Income Approach | |||||
Goodwill [Line Items] | |||||
Goodwill and intangibles, measurement input | 0.125 | ||||
Measurement Input, Terminal Growth Rate | Outdoor Recreation | Valuation, Income Approach | |||||
Goodwill [Line Items] | |||||
Goodwill and intangibles, measurement input | 0.030 | ||||
Tradenames | Measurement Input, Royalty Rate | Camelbak | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.025 | ||||
Outdoor Products | |||||
Goodwill [Line Items] | |||||
Goodwill, impaired, accumulated impairment loss | $ (994,207) | ||||
Outdoor Products | Outdoor Accessories | Tradenames | |||||
Goodwill [Line Items] | |||||
Impairment of intangible assets, indefinite-lived,excluding goodwill | 7,459 | ||||
Outdoor Products | Tradenames | |||||
Goodwill [Line Items] | |||||
Impairment of intangible assets, indefinite-lived,excluding goodwill | $ 34,259 | ||||
Outdoor Products | Tradenames | Outdoor Recreation | |||||
Goodwill [Line Items] | |||||
Impairment of intangible assets, indefinite-lived,excluding goodwill | 13,100 | ||||
Outdoor Products | Tradenames | Action Sports | |||||
Goodwill [Line Items] | |||||
Impairment of intangible assets, indefinite-lived,excluding goodwill | $ 13,700 | ||||
Outdoor Products | Tradenames | Measurement Input, Royalty Rate | Outdoor Recreation | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.020 | 0.020 | |||
Outdoor Products | Tradenames | Measurement Input, Royalty Rate | Outdoor Accessories | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.010 | 0.010 | |||
Outdoor Products | Tradenames | Measurement Input, Royalty Rate | Action Sports | Minimum | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.010 | 0.010 | |||
Outdoor Products | Tradenames | Measurement Input, Royalty Rate | Action Sports | Maximum | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.015 | 0.015 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 478,937 | $ 307,820 |
Accumulated amortization | (154,744) | (128,467) |
Total | 324,193 | 179,353 |
Intangible assets, gross | 614,539 | 443,422 |
Net intangible assets | 459,795 | 314,955 |
Tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 113,915 | 49,560 |
Accumulated amortization | (23,756) | (18,174) |
Total | 90,159 | 31,386 |
Patented technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 36,854 | 16,954 |
Accumulated amortization | (13,324) | (11,354) |
Total | 23,530 | 5,600 |
Customer relationships and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 328,168 | 241,306 |
Accumulated amortization | (117,664) | (98,939) |
Total | 210,504 | 142,367 |
Tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing trade names | $ 135,602 | $ 135,602 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Future Amortization Expense) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Fiscal year 2023 | $ 32,323 | |
Fiscal year 2024 | 32,271 | |
Fiscal year 2025 | 32,253 | |
Fiscal year 2026 | 29,244 | |
Fiscal year 2027 | 27,794 | |
Thereafter | 170,308 | |
Total | $ 324,193 | $ 179,353 |
Other Current and Non-current_3
Other Current and Non-current Liabilities (Components of Current and Long-term Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Other Liabilities, Current [Abstract] | ||
Accrual for in-transit inventory | $ 11,620 | $ 24,356 |
Other | 115,560 | 96,212 |
Total other current liabilities | $ 127,180 | $ 120,568 |
Other Current and Non-current_4
Other Current and Non-current Liabilities (Warranty Liability Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reconciliation of the changes in product warranty liability | ||
Balance at the beginning of the period | $ 8,696 | $ 9,149 |
Payments made | (4,169) | (4,475) |
Warranties issued | 4,479 | 4,382 |
Changes related to pre-existing warranties and other adjustments | 67 | (360) |
Balance at the end of period | $ 9,073 | $ 8,696 |
Minimum | ||
Product Warranty Liability [Line Items] | ||
Product warranty term | one year |
Long-Term Debt (Components of L
Long-Term Debt (Components of Long-term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Long-Term Debt | ||
Long-term debt, gross | $ 670,000 | |
Less: unamortized deferred financing costs | (3,886) | $ (4,436) |
Carrying amount of long-term debt | 666,114 | 495,564 |
Line of Credit | Revolving Credit Facility | 2021 ABL Revolving Credit Facility | ||
Long-Term Debt | ||
Long-term debt, gross | 170,000 | 0 |
Senior Notes | 4.5% Senior Notes | ||
Long-Term Debt | ||
Long-term debt, gross | $ 500,000 | $ 500,000 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 670,000,000 | ||
Letters of credit outstanding, amount | 16,791,000 | ||
Interest paid | $ 25,328,000 | $ 28,262,000 | $ 38,839,000 |
Guarantors | |||
Debt Instrument [Line Items] | |||
Number of subsidiaries owned (as a percent) | 100.00% | ||
Line of Credit | |||
Debt Instrument [Line Items] | |||
Annual commitment fee on the unused portion (as a percent) | 0.175% | ||
4.5% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 4,481,000 | ||
Debt instrument, term | 8 years | ||
Guarantor obligations, maximum exposure, undiscounted | $ 75,000 | ||
4.5% Senior Notes | Carrying Amount | |||
Debt Instrument [Line Items] | |||
Fixed rate debt | 500,000,000 | 500,000,000 | |
4.5% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 500,000,000 | 500,000,000 | |
Debt instrument, interest rate (as a percent) | 4.50% | ||
4.5% Senior Notes | Senior Notes | Debt Instrument, Redemption, Period One | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage of principal amount redeemable (as a percent) | 1 | ||
4.5% Senior Notes | Senior Notes | Debt Instrument, Redemption, Period Two | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage of principal amount redeemable (as a percent) | 0.40 | ||
Debt instrument, redemption price, net cash proceeds, percentage of principal amount redeemable, period two (as a percent) | 104.50% | ||
Revolving Credit Facility | 2021 ABL Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Face amount on debt instrument | $ 450,000,000 | ||
Long-term debt, gross | 170,000,000 | 0 | |
Restricted payment limit | 45,000,000 | $ 42,500,000 | |
Line of credit facility, remaining borrowing capacity | 218,209,000 | ||
Debt issuance costs | $ 6,004,000 | ||
Debt instrument, covenant, minimum threshold line of capacity (as a percent) | 10.00% | ||
Revolving Credit Facility | 2021 ABL Revolving Credit Facility | Line of Credit | Maximum | |||
Debt Instrument [Line Items] | |||
Line of credit facility, increased borrowing capacity, amount | $ 150,000,000 | ||
Non-First-in, Last-out, Revolving Credit Facility | 2021 ABL Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate (as a percent) | 1.94% | ||
Non-First-in, Last-out, Revolving Credit Facility | 2021 ABL Revolving Credit Facility | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate (as a percent) | 0.50% | ||
Non-First-in, Last-out, Revolving Credit Facility | 2021 ABL Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate (as a percent) | 1.50% | ||
Non-First-in, Last-out, Revolving Credit Facility | 2021 ABL Revolving Credit Facility | Minimum | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate (as a percent) | 0.25% | ||
Non-First-in, Last-out, Revolving Credit Facility | 2021 ABL Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate (as a percent) | 1.25% | ||
Non-First-in, Last-out, Revolving Credit Facility | 2021 ABL Revolving Credit Facility | Maximum | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate (as a percent) | 0.75% | ||
Non-First-in, Last-out, Revolving Credit Facility | 2021 ABL Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate (as a percent) | 1.75% |
Long-Term Debt (Future Minimum
Long-Term Debt (Future Minimum Loan Payments) (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Minimum payments on outstanding long-term debt | |
Fiscal year 2023 | $ 0 |
Fiscal year 2024 | 0 |
Fiscal year 2025 | 0 |
Fiscal year 2026 | 170,000 |
Fiscal year 2027 | 0 |
Thereafter | 500,000 |
Total | $ 670,000 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, net periodic benefit cost (credit) | $ 426,000 | $ (86,000) | $ (406,000) |
Fair value of plan assets | 171,573,000 | 176,268,000 | |
Benefit obligation | 192,945,000 | 209,021,000 | |
Unfunded status | $ 21,372,000 | $ 32,753,000 | |
Lockup period of assets invested within hedge funds | 1 year | ||
Number of days advance notice after lockup period for redemption | 65 days | ||
Expected future employer contributions, next fiscal year | $ 0 | ||
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate (as a percent) | 3.60% | 3.05% | |
Weighted average interest crediting rate | 4.00% | 4.00% | |
Expected long-term rate of return on plan assets (as a percent) | 5.50% | 6.00% | |
Contributions by employer | $ 1,300,000 | $ 7,100,000 | 3,600,000 |
Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions by employer | 0 | 0 | 0 |
Supplemental Employee Retirement Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefits distributed | $ 0 | $ 0 | $ 1,000 |
Employee Benefit Plans (Future
Employee Benefit Plans (Future Expected Benefit Payments) (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Expected Future Benefit Payments | |
Fiscal year 2023 | $ 13,737 |
Fiscal year 2024 | 13,279 |
Fiscal year 2025 | 14,063 |
Fiscal year 2026 | 13,481 |
Fiscal year 2027 | 13,152 |
Fiscal years 2028 through 2032 | $ 63,305 |
Employee Benefit Plans (Defined
Employee Benefit Plans (Defined Contribution Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Postemployment Benefits [Abstract] | |||
Contribution cost recognized | $ 20,462 | $ 12,909 | $ 12,166 |
Income Taxes (Income Before Inc
Income Taxes (Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 619,464 | $ 259,009 | $ (173,255) |
Non-U.S. | 1,494 | 375 | 2,228 |
EBIT | $ 620,958 | $ 259,384 | $ (171,027) |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Current: | |||
Federal | $ (107,429) | $ 15,723 | $ 10,210 |
State | (28,119) | (18,684) | 1,585 |
Non-US | (739) | (350) | (197) |
Deferred: | |||
Federal | (10,327) | 2,668 | 2,799 |
State | (1,483) | 7,271 | 1,703 |
Non-US | 365 | 0 | (152) |
Income tax (provision) benefit | $ (147,732) | $ 6,628 | $ 15,948 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal impact | 3.90% | 4.60% | 1.10% |
Nondeductible goodwill impairment | 0.00% | 0.00% | (11.30%) |
Nondeductible loss on divestiture | 0.00% | (0.40%) | (1.00%) |
Change in tax contingency | (0.70%) | (3.60%) | 4.50% |
Impact of law changes | 0.00% | (4.10%) | 1.80% |
Valuation allowance | 0.00% | (19.00%) | (4.80%) |
Other | (0.40%) | (1.10%) | (2.00%) |
Effective income tax rate | 23.80% | (2.60%) | 9.30% |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Asset and Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Deferred tax assets: | ||
Inventories | $ 7,178 | $ 7,359 |
Retirement benefits | 5,384 | 8,174 |
Accounts receivable | 6,664 | 8,417 |
Accruals for employee benefits | 7,917 | 11,216 |
Other reserves | 3,146 | 3,906 |
Loss and credit carryforwards | 3,082 | 4,040 |
Capital loss carryforward | 19,598 | 19,666 |
Operating lease liabilities | 18,984 | 18,623 |
Other | 4,926 | 2,970 |
Total deferred tax assets | 76,879 | 84,371 |
Valuation allowance | (20,417) | (22,528) |
Total net deferred assets | 56,462 | 61,843 |
Deferred tax liabilities: | ||
Intangible assets | (43,957) | (29,847) |
Property, plant, and equipment | (24,571) | (23,420) |
Operating lease assets | (17,238) | (16,811) |
Total deferred tax liabilities | (85,766) | (70,078) |
Net deferred income tax liability | $ (29,304) | $ (8,235) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties | |||
Unrecognized Tax Benefits—beginning of period | $ 18,071 | $ 23,513 | $ 27,252 |
Gross increases—tax positions in prior periods | 304 | 2,713 | 0 |
Gross decreases—tax positions in prior periods | 0 | 0 | 0 |
Gross increases—current-period tax positions | 6,581 | 2,716 | 1,949 |
Gross decreases—current-period tax positions | 0 | 0 | 0 |
Settlements | 0 | 0 | (171) |
Lapse of statute of limitations | (5,501) | (10,871) | (5,517) |
Unrecognized Tax Benefits—end of period | $ 19,455 | $ 18,071 | $ 23,513 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance | $ 49,537 | ||
Valuation allowance | $ 20,417 | 22,528 | |
Capital loss carryforward | 19,598 | 19,666 | |
Income Taxes Paid, Net | 139,238 | 40,793 | |
Unrecognized tax benefit | 24,719 | 23,000 | |
Amount that would affect the effective tax rate if recognized | 21,139 | 20,283 | |
Amount of reasonably possible decrease in uncertain tax benefits | $ 3,419 | ||
Period after which tax positions classified as noncurrent income tax liabilities | 1 year | ||
Income tax-related interest included in accrued income taxes | $ 2,406 | 3,043 | |
Income tax penalties included in accrued income taxes | 2,856 | 1,886 | |
Tax penalties and interest | 2,128 | 1,676 | $ 2,126 |
Income Taxes Receivable | 42,193 | ||
Income tax receivable | 43,560 | $ 37,870 | |
Expiration Date in 2021 through 2040 | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss and credit carryovers | $ 3,082 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments for minimum lease payments under non-cancelable operating leases | $ 130,630 | |
Remaining minimum amount committed | 259,108 | |
Letters of credit outstanding, amount | 16,791 | |
Accrual for environmental loss contingencies | $ 697 | $ 696 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of authorized shares of preferred stock | 50,000,000 | ||
Par value of preferred stock (in dollars per share) | $ 1 | ||
Preferred stock, shares outstanding (in shares) | 0 | ||
Proceeds from exercise of stock options | $ 533 | $ 1,386 | $ 315 |
Total pre-tax stock-based compensation expense | 27,407 | ||
Share-based compensation | 27,407 | 13,303 | 6,810 |
Total income tax benefit recognized in the income statement for share-based compensation | $ 4,882 | $ 2,673 | $ 371 |
Stock repurchased during period (in shares) | 2,981 | 0 | 0 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Granted (in shares) | 0 | ||
Total unrecognized compensation cost related to nonvested stock-based compensation awards | $ 28,232 | ||
Nonvested stock-based compensation expected to be realized over a weighted average period (in years) | 1 year 6 months | ||
Performance Shares, Excluding TSR Performance Awards and Excluding TSR Modifier Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Granted (in shares) | 5,980 | ||
Performance awards earned in period (in shares) | 390,012 | ||
Percentage of awards earned based on sales goal performance | 200.00% | ||
TSR Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Granted (in shares) | 0 | ||
Performance awards earned in period (in shares) | 167,150 | ||
Percentage of awards earned based on sales goal performance | 200.00% | ||
Performance Shares, TSR Modifier | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of awards that can be earned | 200.00% | ||
Vesting period | 3 years | ||
Increase in award vesting rights percentage | 20.00% | ||
Decrease in award vesting rights percentage | 20.00% | ||
Granted (in shares) | 312,206 | ||
Awarded (in dollars per share) | $ 27.11 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum terms of options (in years) | 10 years | ||
Stock options granted (in shares) | 0 | ||
Exercised (in shares) | 28,921 | 92,604 | 0 |
Total intrinsic value of options exercised | $ 1,102 | $ 1,896 | |
Proceeds from exercise of stock options | 533 | $ 1,386 | |
Total unrecognized compensation cost related to stock option awards | $ 0 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 352,716 | ||
Performance awards earned in period (in shares) | 509,861 | ||
Awarded (in dollars per share) | $ 34.58 | $ 17.31 | $ 6.03 |
Total unrecognized compensation cost related to nonvested stock-based compensation awards | $ 16,107 | ||
Nonvested stock-based compensation expected to be realized over a weighted average period (in years) | 1 year 9 months 18 days | ||
Minimum | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of awards that can be earned | 0.00% | ||
Minimum | Performance Shares, Excluding TSR Performance Awards and Excluding TSR Modifier Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of awards that can be earned | 0.00% | ||
Minimum | Performance Shares, TSR Modifier | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of awards that can be earned | 0.00% | ||
Minimum | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Maximum | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of awards that can be earned | 200.00% | ||
Maximum | Performance Shares, Excluding TSR Performance Awards and Excluding TSR Modifier Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of awards that can be earned | 200.00% | ||
Maximum | Performance Shares, TSR Modifier | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of awards that can be earned | 200.00% | ||
Maximum | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock-based Incentive Plan 2014 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of authorized common shares | 3,351,200 | ||
Number of available shares to be granted | 2,265,601 |
Stockholders' Equity (Performan
Stockholders' Equity (Performance-Based Awards Activity) (Details) - $ / shares | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Performance Shares, TSR and Excluding TSR Performance Awards | ||
Shares | ||
Earned (in shares) | (557,162) | |
Adjustments for payout (in shares) | 278,581 | |
Weighted average grant date fair value | ||
Earned, Weighted average grant date fair value (in dollars per share) | $ 9.29 | |
Adjustments for payout (in dollars per share) | $ 9.29 | |
Percentage of awards that can be earned | 200.00% | |
Performance Shares, TSR Modifier | ||
Shares | ||
Awarded (in shares) | 312,206 | |
Weighted average grant date fair value | ||
Awarded (in dollars per share) | $ 27.11 | |
Percentage of awards that can be earned | 200.00% | |
Vesting period | 3 years | |
Performance Shares | ||
Shares | ||
Nonvested at the beginning of the period (in shares) | 1,002,037 | |
Awarded (in shares) | 0 | |
Nonvested at the end of the period (in shares) | 1,041,642 | 1,002,037 |
Weighted average grant date fair value | ||
Nonvested at beginning of the period, Weighted average grant date fair value (in dollars per share) | $ 21.87 | |
Nonvested at end of the period, Weighted average grant date fair value (in dollars per share) | $ 30.12 | $ 21.87 |
Vesting period | 3 years | |
Performance Shares, Including TSR Modifier Performance Awards | ||
Shares | ||
Awarded (in shares) | 318,186 | |
Weighted average grant date fair value | ||
Awarded (in dollars per share) | $ 37.88 | |
TSR Performance Awards | ||
Shares | ||
Earned (in shares) | (167,150) | |
Awarded (in shares) | 0 | |
Weighted average grant date fair value | ||
Vesting period | 3 years |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Option Activity) (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Shares | |||
Outstanding at beginning of period (in shares) | 397,610 | ||
Exercise of stock options (in shares) | (28,921) | (92,604) | 0 |
Outstanding at end of period (in shares) | 368,689 | 397,610 | |
Weighted average exercise price | |||
Outstanding at beginning of period (in dollars per share) | $ 13.99 | ||
Exercised (in dollars per share) | 18.41 | ||
Outstanding at end of period (in dollars per share) | $ 13.65 | $ 13.99 | |
Weighted average remaining contractual life (in years) | |||
Options outstanding | 6 years 1 month 6 days | 6 years 9 months 18 days | |
Aggregate Intrinsic Value | |||
Options outstanding | $ 8,128 | $ 7,244 |
Stockholders' Equity (Restricte
Stockholders' Equity (Restricted Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Shares | |||
Nonvested at the beginning of the period (in shares) | 1,064,580 | ||
Granted (in shares) | 352,716 | ||
Vested (in shares) | (509,861) | ||
Forfeited (in shares) | (16,862) | ||
Nonvested at the end of the period (in shares) | 890,573 | 1,064,580 | |
Weighted average grant date fair value | |||
Nonvested at beginning of the period, Weighted average grant date fair value (in dollars per share) | $ 13.56 | ||
Granted, Weighted average grant date fair value (in dollars per share) | 34.58 | $ 17.31 | $ 6.03 |
Vested, Weighted average grant date fair value (in dollars per share) | 12.08 | ||
Forfeited, Weighted average grant date fair value (in dollars per share) | 19.54 | ||
Nonvested at end of the period, Weighted average grant date fair value (in dollars per share) | $ 22.56 | $ 13.56 |
Operating Segment Information_2
Operating Segment Information (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)reportable_segment | Mar. 31, 2021USD ($)operating_segment | Mar. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Operating Segments | operating_segment | 7 | |||
Number of reportable segments | reportable_segment | 2 | |||
Sales, net | $ 3,044,621 | $ 2,225,522 | $ 1,755,871 | |
Impairment of held-for-sale assets | 0 | 0 | $ 9,429 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Firearm Business | ||||
Segment Reporting Information [Line Items] | ||||
Impairment of held-for-sale assets | 0 | |||
Outdoor Recreation | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill, Impairment Loss | $ (121,329) | |||
Sporting Products | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | 1,737,891 | 1,119,754 | ||
Sporting Products | Disposal Group, Held-for-sale, Not Discontinued Operations | Firearm Business | ||||
Segment Reporting Information [Line Items] | ||||
Impairment of held-for-sale assets | 9,429 | |||
Outdoor Products | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | $ 1,306,730 | 1,105,768 | ||
Outdoor Products | Tradenames | ||||
Segment Reporting Information [Line Items] | ||||
Impairment of intangible assets, indefinite-lived,excluding goodwill | 34,259 | |||
Outdoor Products | Outdoor Recreation | Tradenames | ||||
Segment Reporting Information [Line Items] | ||||
Impairment of intangible assets, indefinite-lived,excluding goodwill | $ 13,100 | |||
Walmart | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Disclosure of Major Customers | Walmart | |||
Walmart | Sales Revenue, Net | Customer Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 13.00% | |||
Foreign customers | Sales Revenue, Net | Geographic Concentration | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | $ 435,175 | $ 319,568 | $ 301,648 | |
Threshold percentage of sales accounted for by single contract or single commercial customer | 5.00% | 5.00% | 5.00% | |
Foreign customers | Sales Revenue, Net | Geographic Concentration | Sporting Products | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers, percent | 24.00% | |||
Foreign customers | Sales Revenue, Net | Geographic Concentration | Outdoor Products | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers, percent | 76.00% |
Operating Segment Information_3
Operating Segment Information (Schedule of Results by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 27, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Sales, net | $ 3,044,621 | $ 2,225,522 | $ 1,755,871 | |
Gross Profit | 1,109,232 | 632,960 | 358,766 | |
EBIT | 646,222 | 284,958 | (132,236) | |
Capital expenditures | 42,434 | 29,247 | 19,261 | |
Depreciation and amortization | 72,340 | 65,110 | 67,858 | |
Total assets | 2,396,201 | 1,764,939 | 1,394,877 | |
Gain (loss) on divestitures (Note 7) | 0 | 18,467 | (433) | |
Restructuring charges | 9,210 | |||
Contingent consideration expenses | 1,685 | |||
Restructuring costs | 1,520 | |||
Merger and acquisition costs | 644 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Segment Reporting Information [Line Items] | ||||
Gain (loss) on divestitures (Note 7) | $ 18,467 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Firearm Business | ||||
Segment Reporting Information [Line Items] | ||||
Pretax loss on divestiture | 433 | |||
Sporting Products | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | 1,737,891 | 1,119,754 | ||
Outdoor Products | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | 1,306,730 | 1,105,768 | ||
Operating Segments | Sporting Products | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | 1,737,891 | 1,119,754 | 871,550 | |
Gross Profit | 712,160 | 312,230 | 137,914 | |
EBIT | 600,415 | 222,713 | 66,898 | |
Capital expenditures | 25,637 | 14,209 | 10,577 | |
Depreciation and amortization | 25,602 | 23,292 | 20,077 | |
Total assets | 743,960 | 655,788 | 552,337 | |
Business combination, step acquisition, equity interest in acquiree, remeasurement loss | 2,375 | 690 | ||
Business combination, separately recognized transactions, post combination compensation expense | (8,987) | |||
Gain (loss) on divestitures (Note 7) | (18,467) | |||
Operating Segments | Outdoor Products | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | 1,306,730 | 1,105,768 | 884,321 | |
Gross Profit | 399,447 | 321,423 | 222,372 | |
EBIT | 164,494 | 137,942 | 43,125 | |
Capital expenditures | 12,890 | 10,942 | 4,827 | |
Depreciation and amortization | 42,027 | 37,935 | 41,094 | |
Total assets | 1,539,542 | 794,961 | 760,217 | |
Corporate and Other Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | 0 | 0 | 0 | |
Gross Profit | (2,375) | (693) | (1,520) | |
EBIT | (118,687) | (75,697) | (242,259) | |
Capital expenditures | 3,907 | 4,096 | 3,857 | |
Depreciation and amortization | 4,711 | 3,883 | 6,687 | |
Total assets | $ 112,699 | $ 314,190 | $ 82,323 |