Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | May 20, 2024 | Sep. 24, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --03-31 | ||
Document Period End Date | Mar. 31, 2024 | ||
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 | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,780 | ||
Entity Common Stock, Shares Outstanding | 58,335,995 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated by reference into Part III. | ||
Entity Central Index Key | 0001616318 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2024 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Minneapolis, Minnesota |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 60,271 | $ 86,208 |
Net receivables | 355,903 | 339,373 |
Net inventories | 609,999 | 709,897 |
Income tax receivable | 9,113 | 0 |
Other current assets | 39,836 | 60,636 |
Total current assets | 1,075,122 | 1,196,114 |
Net property, plant, and equipment | 201,864 | 228,247 |
Operating lease assets | 107,007 | 106,828 |
Goodwill | 318,251 | 465,709 |
Net intangible assets | 627,636 | 733,176 |
Deferred income tax assets | 12,895 | 0 |
Deferred charges and other non-current assets, net | 59,605 | 68,808 |
Total assets | 2,402,380 | 2,798,882 |
Current liabilities: | ||
Current portion of long-term debt | 0 | 65,000 |
Accounts payable | 163,411 | 136,556 |
Accrued compensation | 56,983 | 60,719 |
Accrued income taxes | 0 | 6,676 |
Federal excise, use, and other taxes | 35,552 | 38,543 |
Other current liabilities | 129,352 | 146,377 |
Total current liabilities | 385,298 | 453,871 |
Long-term debt | 717,238 | 984,658 |
Deferred income tax liabilities | 0 | 40,749 |
Long-term operating lease liabilities | 105,699 | 103,313 |
Accrued pension and postemployment benefits | 22,866 | 25,114 |
Other long-term liabilities | 44,982 | 59,384 |
Total liabilities | 1,276,083 | 1,667,089 |
Commitments and contingencies (Notes 14 and 17) | ||
Issued and outstanding—58,238,276 shares as of March 31, 2024 and 57,085,756 shares as of March 31, 2023 | 582 | 570 |
Additional paid-in-capital | 1,653,089 | 1,711,155 |
Accumulated deficit | (236,033) | (230,528) |
Accumulated other comprehensive loss | (74,348) | (80,802) |
Common stock in treasury, at cost—5,726,163 shares held as of March 31, 2024 and 6,878,683 shares held as of March 31, 2023 | (216,993) | (268,602) |
Total stockholders' equity | 1,126,297 | 1,131,793 |
Total liabilities and stockholders' equity | $ 2,402,380 | $ 2,798,882 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2024 | Mar. 31, 2023 |
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) | 58,238,276 | 57,085,756 |
Common stock, outstanding (in shares) | 58,238,276 | 57,085,756 |
Common stock in treasury (in shares) | 5,726,163 | 6,878,683 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | |||
Sales, net | $ 2,746,063 | $ 3,079,807 | $ 3,044,621 |
Cost of sales | 1,887,078 | 2,048,910 | 1,935,389 |
Gross profit | 858,985 | 1,030,897 | 1,109,232 |
Operating expenses: | |||
Research and development | 49,644 | 44,209 | 28,737 |
Selling, general, and administrative | 540,076 | 504,478 | 434,273 |
Impairment of goodwill and intangibles (Note 11) | 218,812 | 374,355 | 0 |
Operating income | 50,453 | 107,855 | 646,222 |
Other (expense) income, net (Note 4) | (1,988) | 2,124 | 0 |
Interest expense, net | (62,949) | (59,317) | (25,264) |
Income (loss) before income taxes | (14,484) | 50,662 | 620,958 |
Income tax benefit (provision) | 8,979 | (60,380) | (147,732) |
Net income (loss) | $ (5,505) | $ (9,718) | $ 473,226 |
Earnings (loss) per common share: | |||
Basic (in dollars per share) | $ (0.10) | $ (0.17) | $ 8.27 |
Diluted (in dollars per share) | $ (0.10) | $ (0.17) | $ 8 |
Weighted-average number of common shares outstanding: | |||
Basic (in shares) | 57,946 | 56,600 | 57,190 |
Diluted (in shares) | 57,946 | 56,600 | 59,137 |
Pension and other postretirement benefit liabilities: | |||
Reclassification of prior service credits for pension and postretirement benefit plans recorded to net income, net of tax benefit of $0, $0, and $434 | $ 0 | $ 0 | $ (1,336) |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $(704), $(884), and $(1,215) | 2,248 | 2,776 | 3,744 |
Valuation adjustment for pension and postretirement benefit plans, net of tax benefit (expense) of $(150), $1,003, and $(1,434) | 479 | (3,150) | 4,683 |
Change in derivative instruments, net of tax benefit (expense) of $(1,105), $1,707, and $168 | 3,528 | (3,187) | (517) |
Net change in cumulative translation adjustment | 199 | (562) | (58) |
Total other comprehensive income (loss) | 6,454 | (4,123) | 6,516 |
Comprehensive income (loss) | $ 949 | $ (13,841) | $ 479,742 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Pension and other postretirement benefit liabilities: | |||
Reclassification of prior service credits for pension and postretirement benefit plans recorded to net income, tax benefit | $ 0 | $ 0 | $ 434 |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, tax expense | (704) | (884) | (1,215) |
Valuation adjustment for pension and postretirement benefit plans, tax benefit (expense) | (150) | 1,003 | (1,434) |
Change in derivative instruments, tax benefit (expense) | 1,105 | (1,707) | 168 |
Change in cumulative translation adjustment, tax benefit (expense) | $ 20 | $ (317) | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Activities | |||
Net income (loss) | $ (5,505) | $ (9,718) | $ 473,226 |
Adjustments to net income (loss) to arrive at cash provided by operating activities: | |||
Depreciation | 49,145 | 48,126 | 46,094 |
Amortization of intangible assets | 50,146 | 43,963 | 26,246 |
Amortization of deferred financing costs | 10,098 | 6,702 | 1,411 |
Impairment of goodwill and intangibles (Note 11) | 218,812 | 374,355 | 0 |
Impairment of long-lived assets | 4,462 | 0 | 0 |
Change in fair value of contingent consideration | 5,855 | (27,510) | 955 |
Deferred income taxes | (54,988) | (43,177) | 11,857 |
Gain on foreign exchange | (624) | (1,249) | 0 |
Loss on disposal of property, plant, and equipment | 1,326 | 1,719 | 796 |
Share-based compensation | 11,450 | 28,119 | 27,407 |
Changes in assets and liabilities: | |||
Net receivables | (13,480) | 66,860 | (50,631) |
Net inventories | 105,884 | 18,537 | (172,741) |
Accounts payable | 29,500 | (33,596) | (24,350) |
Accrued compensation | (3,847) | (25,803) | 14,370 |
Accrued income taxes | (19,627) | 59,679 | (3,968) |
Federal excise, use, and other taxes | (2,991) | (3,311) | 8,111 |
Pension and other postretirement benefits | 1,333 | 1,988 | (1,561) |
Other assets and liabilities | 13,938 | (19,499) | (38,911) |
Cash provided by operating activities | 400,887 | 486,185 | 318,311 |
Investing Activities | |||
Capital expenditures | (30,534) | (38,810) | (42,782) |
Proceeds from note receivable | 0 | 10,683 | 0 |
Acquisition of businesses, net of cash received | 16,478 | 761,589 | 545,467 |
Proceeds from the disposition of property, plant, and equipment | 328 | 47 | 411 |
Cash used for investing activities | (46,684) | (789,669) | (587,838) |
Financing Activities | |||
Proceeds from credit facility | 204,000 | 468,000 | 400,000 |
Repayments of credit facility | (339,000) | (283,000) | (230,000) |
Proceeds from issuance of long-term debt | 0 | 350,000 | 0 |
Payments on long-term debt | (205,000) | (145,000) | 0 |
Payments made for debt issue costs and prepayment premiums | (63) | (17,209) | (1,061) |
Proceeds from exercise of stock options | 162 | 4,213 | 533 |
Payments made for contingent consideration | (22,573) | (706) | 0 |
Purchase of treasury shares | 0 | 0 | (113,195) |
Payment of employee taxes related to vested stock awards | (17,967) | (9,090) | (7,310) |
Cash (used for) provided by financing activities | (380,441) | 367,208 | 48,967 |
Effect of foreign currency exchange rate fluctuations on cash | 301 | (100) | (121) |
Increase (decrease) in cash and cash equivalents | (25,937) | 63,624 | (220,681) |
Cash and cash equivalents at beginning of year | 86,208 | 22,584 | 243,265 |
Cash and cash equivalents at end of year | 60,271 | 86,208 | 22,584 |
Noncash investing activity: | |||
Capital expenditures included in accounts payable and other accrued liabilities | 1,529 | 4,751 | 1,656 |
Contingent consideration in connection with business combinations | $ 0 | $ (11,400) | $ (35,964) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' 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, 2021 | 58,561,016 | |||||
Beginning 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) |
Increase (Decrease) in Stockholders' Equity | ||||||
Comprehensive income (loss) | (13,841) | (9,718) | (4,123) | |||
Exercise of stock options (in shares) | 321,260 | |||||
Exercise of stock options | 4,213 | (8,384) | 12,597 | |||
Share-based compensation | 28,119 | 28,119 | ||||
Restricted stock vested and shares withheld (in shares) | 602,574 | |||||
Restricted stock vested and shares withheld | (11,680) | (37,409) | 25,729 | |||
Employee stock purchase program (in shares) | 23,556 | |||||
Employee stock purchase program | $ 583 | (340) | 923 | |||
Treasury shares purchased (in shares) | 0 | |||||
Other (in shares) | 44,910 | |||||
Other | $ 0 | $ 10 | (1,758) | 1,748 | ||
Ending balance (in shares) at Mar. 31, 2023 | 57,085,756 | 57,085,756 | ||||
Ending balance at Mar. 31, 2023 | $ 1,131,793 | $ 570 | 1,711,155 | (230,528) | (80,802) | (268,602) |
Increase (Decrease) in Stockholders' Equity | ||||||
Comprehensive income (loss) | 949 | (5,505) | 6,454 | |||
Exercise of stock options (in shares) | 15,120 | |||||
Exercise of stock options | 162 | (414) | 576 | |||
Share-based compensation | 11,450 | 11,450 | ||||
Restricted stock vested and shares withheld (in shares) | 1,045,551 | |||||
Restricted stock vested and shares withheld | (18,411) | (65,954) | 47,543 | |||
Employee stock purchase program (in shares) | 12,426 | |||||
Employee stock purchase program | $ 353 | (119) | 472 | |||
Treasury shares purchased (in shares) | 0 | |||||
Other (in shares) | 79,423 | |||||
Other | $ 1 | $ 12 | (3,029) | 3,018 | ||
Ending balance (in shares) at Mar. 31, 2024 | 58,238,276 | 58,238,276 | ||||
Ending balance at Mar. 31, 2024 | $ 1,126,297 | $ 582 | $ 1,653,089 | $ (236,033) | $ (74,348) | $ (216,993) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Nature of Operations. Vista Outdoor Inc. (together with our subsidiaries, "Vista Outdoor", "we", "our", and "us", unless the context otherwise requires) is a leading global designer, manufacturer, and marketer of outdoor recreation and shooting sports products. We made changes to our reporting units and reportable segments during the fourth quarter of fiscal year 2024. See Note 11, Goodwill and Intangible Assets and Note 19, Operating Segment Information , for further information. We operate through four reportable segments, The Kinetic Group, Revelyst Outdoor Performance, Revelyst Adventure Sports, and Revelyst Precision Sports Technology. We are headquartered in Anoka, Minnesota and have manufacturing and distribution facilities in the United States, Mexico, and Puerto Rico along with international customer service, sales and sourcing operations in Asia and Europe. We have a robust global distribution network serving customers in over 100 countries. Vista Outdoor was incorporated in Delaware in 2014. Basis of Presentation. 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. 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. Sale of The Kinetic Group and Planned Separation On October 15, 2023, we entered into a definitive agreement (the “Merger Agreement”) to sell The Kinetic Group business (formerly the Sporting Products business) to CZECHOSLOVAK GROUP a.s. (“CSG”), for an enterprise value of $1,910,000 ("the base purchase price") on a cash-free, debt-free basis subject to working capital adjustments, in an all-cash transaction (the “Sporting Products Sale”). The Sporting Products Sale represents the next step in Vista Outdoor’s plan to split Vista Outdoor into two separate entities, which was previously announced on May 5, 2022. Pursuant to a Separation Agreement entered into between Vista Outdoor and Revelyst, Inc. (“Revelyst”) simultaneously with the entry into the Merger Agreement, Vista Outdoor will separate its Revelyst Outdoor Performance, Revelyst Adventure Sports and Revelyst Precision Sports Technology segments (together, the “Revelyst business”, formerly the Outdoor Products business) from The Kinetic Group business by transferring the assets and liabilities of the Revelyst business to a wholly owned subsidiary of Vista Outdoor, Revelyst, and CSG will merge one of its subsidiaries with Vista Outdoor (holding only The Kinetic Group business), with each share of common stock, par value $0.01 per share, of Vista Outdoor, ("Vista Outdoor Common Stock") outstanding as of immediately prior to the closing of such transaction (other than shares held by Vista Outdoor, its subsidiaries or CSG, which will be canceled, and shares subject to appraisal demands in connection with the Sporting Products Sale) being converted into the right to receive (a) one fully paid and non-assessable share of common stock of Revelyst and (b) $12.90 in cash (“Cash Consideration”). On May 27, 2024, the parties entered into the first amendment to the Sporting Products Sale (the “First Amendment”). The First Amendment: 1. increases the base purchase price from $1,910,000 to $1,960,000; 2. increases the Cash Consideration from $12.90 to $16.00 in cash per share of Vista Outdoor Common Stock; and 3. provides that certain Vista Outdoor restricted stock units held by Company employees will be converted into restricted cash awards, subject to the same terms and conditions as the corresponding Vista Outdoor restricted stock units , including vesting terms, to the extent necessary to address adverse tax consequences to such employees and the Company under Sections 280G and 4999 of the Internal Revenue Code of 1986, as amended from time to time. The Sporting Products Sale is expected to close in calendar year 2024, subject to approval of our stockholders, receipt of clearance by the Committee on Foreign Investment in the United States and other customary closing conditions. There can be no assurance regarding the ultimate timing of the proposed transaction or that the Sporting Products Sale will be completed. 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 $58,259 , $59,189, and $58,028 for the fiscal years ended March 31, 2024, 2023, and 2022, 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 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 during the fourth quarter, and concluded there were no indicators of impairment. See Note 11, Goodwill and Intangible Assets , for discussion and details. During the third quarter of fiscal year 2024, as a result of an increasingly challenging economic environment for consumers due to higher interest rate expectations continuing, and other factors affecting the market for our products, we reduced our projections for fiscal year 2024 and beyond for the majority of our reporting units within the former Revelyst reportable segment. See Note 11, Goodwill and Intangible Assets and Note 19, Operating Segment Information , for further information on changes to our reporting units and reportable segments during the fourth quarter of fiscal year 2024. As a result of a downward revision of forecasted cash flows due to lower volume and profitability expectations, combined with the decline in our stock price in the third fiscal quarter, we concluded that triggering events had occurred potentially indicating that the fair values of certain reporting units within our former Revelyst reportable segment were less than their carrying values. Based on these events, we completed an interim quantitative goodwill impairment analysis and recognized goodwill impairment losses of $161,714 related to reporting units within our former Revelyst reportable segment, which are included in "Impairment of goodwill and intangibles" on our consolidated statements of comprehensive income (loss) for the fiscal year 2024. See Note 11, Goodwill and Intangible Assets , for further information. For the third quarter fiscal year 2024 interim quantitative goodwill impairment analysis, we determined the estimated fair value of each reporting unit and compared it to their respective carrying amounts, including goodwill. The fair value of each reporting unit was determined considering both an income and market approach. We weighted the valuations of our former Revelyst segment reporting units using 100% of the income approach, specifically the discounted cash flow method. The weighted average cost of capital used in the income approach ranged between 12.5% and 16.0%, which was derived from the financial structures of comparable companies corresponding to the industry of each reporting unit. We weighted the value of The Kinetic Group reporting unit using 100% of the market approach, based on the offer accepted in the Sporting Products Sale. This market approach method estimates the price reasonably expected to be realized. 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 during the fourth quarter, and concluded there were no indicators of impairment on our indefinite-lived intangibles. See Note 11, Goodwill and Intangible Assets , for discussion and details. In conjunction with our interim quantitative goodwill impairment analysis, we performed a fair value analysis on our indefinite-lived trademarks and trade names within the former Revelyst reportable segment, which resulted in impairment losses of $50,300, related to indefinite-lived intangible assets. These losses are included in "Impairment of goodwill and intangibles" on our consolidated statements of comprehensive income (loss) for the fiscal year of 2024. We also performed a step zero analysis on The Kinetic Group indefinite-lived trade names during the third fiscal quarter of 2024. See Note 11, Goodwill and Intangible Assets , for further information. We calculated the fair value of our indefinite-lived intangibles 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. We estimated the future revenue for the related brands and technology, the appropriate royalty rate, and the weighted average cost of capital. We based our fair values and estimates on assumptions we believed to be reasonable, but which are unpredictable and inherently uncertain. Our assumptions used to develop the discounted cash flow analysis and the relief-from-royalty calculation require us to make significant estimates. 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, it is possible that the estimated fair value of certain reporting units or trade names 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 trade names for impairment indicators and update assumptions used in the most recent calculation of the estimated fair value of a reporting unit or trade names as appropriate. Amortizing Intangible Assets and Long-Lived Assets. Our long-lived assets consist primarily of property, plant, and equipment, amortizing right-of-use assets related to our operating leases and amortizing costs related to cloud computing arrangements. Our primary identifiable intangible assets include trademarks and trade names, patented technology, and customer relationships. 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. In conjunction with our interim quantitative goodwill impairment analysis, we performed recoverability tests of our long-lived assets, including amortizing intangible assets, by comparing the net book value of our long-lived assets or asset groups, to the future undiscounted net cash flows attributable to such assets. Based on the results of the recoverability test, we determined that the fair value of certain definite lived intangibles related to trade names and customer relationship within our former Outdoor Cooking reporting unit were less than their carrying value. The fair value of these intangibles was determined using the cost approach. As a result, we recorded impairment charges totaling $6,798 related to amortizing intangible assets, which are included in "Impairment of goodwill and intangibles" on our consolidated statements of comprehensive income (loss) for the fiscal year of 2024. See Note 11, Goodwill and Intangible Assets , for further information. 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, and 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 , for additional information. Derivatives and Hedging. We mitigate the impact of variable interest rates, foreign currency exchange rates, and commodity prices affecting the cost of raw materials with interest rate swaps, foreign currency, 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. We may use derivatives to hedge certain variable interest rates, foreign currency exchange rates, and commodity price risks, but do not use derivative financial instruments for trading or other speculative purposes. We utilize counterparties for our derivative instruments that we believe are creditworthy at the time the transactions are entered into and closely monitor the credit ratings of these counterparties. 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 is 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, for further information. 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 18, Stockholders' Equity , provide for the grant of various types of stock-based incentive awards, including performance awards, performance awards with a total shareholder return (TSR) modifier, 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 $9,662 and $8,198 as of March 31, 2024 and 2023, respectively. Translation of Foreign Currencies. Assets and liabilities of foreign subsidiaries are translated at current exchange rates. Income and expenses in foreign currencies are translated at the average exchange rate during the period. Gains and losses from the translation of foreign subsidiary financial statements into U.S. dollars are reported as a component of accumulated other comprehensive loss ("AOCL") in stockholders' equity. Gains and losses from assets and liabilities denominated in a currency other than the functional currency of the entity in which they reside are generally recognized during the current period in the consolidated statements of comprehensive income (loss), as part of other (expense) income, net. Other (Expense) Income, Net. Other (expense) income, net primarily includes gains and losses on foreign currency forward contracts and foreign currency transactions. See Note 4, Derivative Financial Instruments , for additional information. Accumulated Other Comprehensive Loss. The components of AOCL, net of income taxes, are as follows: March 31, 2024 2023 Derivatives $ (15) $ (3,543) Pension and other postretirement benefit liabilities (68,722) (71,449) Cumulative translation adjustment (5,611) (5,810) Total accumulated other comprehensive loss $ (74,348) $ (80,802) 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, 2024 2023 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 $ (3,543) $ (71,449) $ (5,810) $ (80,802) $ (356) $ (71,075) $ (5,248) $ (76,679) Change in fair value of derivatives 2,607 — — 2,607 (4,829) — — (4,829) Income tax impact on derivative instruments (1,104) — — (1,104) 1,707 — — 1,707 Net loss (gain) reclassified from AOCL 2,025 — — 2,025 (65) — — (65) Net actuarial losses reclassified from AOCL (1) — 2,248 — 2,248 — 2,776 — 2,776 Valuation adjustment for pension and postretirement benefit plans (1) — 479 — 479 — (3,150) — (3,150) Net change in cumulative translation adjustment — — 199 199 — — (562) (562) End of year AOCL $ (15) $ (68,722) $ (5,611) $ (74,348) $ (3,543) $ (71,449) $ (5,810) $ (80,802) (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 15, Employee Benefit Plans . Recent Accounting Pronouncements — In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures .” This ASU improves financial reporting by requiring disclosure of incremental segment information. The new guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU 2023-07 on our consolidated financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which improves the transparency of income tax disclosures by requiring companies to (1) disclose consistent categories and greater disaggregation of information in the effective rate reconciliation and (2) provide information on income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, although early adoption is permitted. The guidance should be applied on a prospective basis with the option to apply the standard retrospectively. We are currently evaluating the impact of adopting this ASU 2023-09 on our consolidated financial statements and disclosures. Accounting Standards Adopted During this Fiscal Year —In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations , which requires a buyer in a supplier finance program to disclose qualitative and quantitative information about its program to allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The amendments in ASU 2022-04 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with the exception for the amendment on roll-forward information, which is effective for fiscal years beginning after December 15, 2023. The guidance should be applied retrospectively, except for the amendment on roll-forward information, which should be applied prospectively. This ASU was effective for us in the first quarter of fiscal year 2024, with the exception of the amendment on roll-forward information, which will be effective for us in our Form 10-K for fiscal year 2025. We adopted this ASU during the first quarter of fiscal year 2024 and the adoption did not have an impact on our consolidated financial statement disclosures. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Mar. 31, 2024 | |
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: Derivative Financial Instruments Hedging instruments (see Note 4, Derivative Financial Instruments), are re-measured on a recurring basis using broker quotes, daily market foreign currency rates, and interest rate curves as applicable and are therefore categorized within Level 2 of the fair value hierarchy. 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, originally 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 considered this to be a Level 3 instrument. The note was paid in full during the fourth quarter of fiscal year 2023. 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). The estimated fair values of contingent consideration payable related to our acquisitions of QuietKat, Stone Glacier, and Fox Racing as of March 31, 2024 are $750, $2,806, and $0, respectively. See Note 7, Acquisitions , for additional information. Following is a summary of our contingent consideration liability Level 3 activity during fiscal year 2024: Balance, March 31, 2023 $ 20,274 Increase in fair value 5,855 Payments made (22,573) Balance, March 31, 2024 $ 3,556 Contingent consideration liabilities are reported under the following captions in the consolidated balance sheets: March 31, 2024 2023 Other current liabilities $ 750 $ 8,586 Other long-term liabilities 2,806 11,688 Total $ 3,556 $ 20,274 Disclosures about the Fair Value of Financial Instruments The carrying amount of our receivables, inventory, accounts payable, and accrued liabilities as of March 31, 2024 and March 31, 2023 approximates fair value because of the short maturity of these instruments. The carrying values of cash and cash equivalents as of March 31, 2024 and March 31, 2023 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, 2024 2023 Carrying Fair Carrying Fair Fixed rate debt (1) $ 500,000 $ 500,865 $ 500,000 $ 404,000 Variable rate debt (2) 220,000 220,000 560,000 560,000 (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 14, 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, 2024. 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 14, Long-term Debt, for additional information on our credit facilities, including related certain risks and uncertainties. During the third fiscal quarter of 2024, we recognized impairment losses related to our goodwill and indefinite-lived intangible assets. The fair value of these assets are categorized within Level 3 of the fair value hierarchy. See Note 1, Significant Accounting Policies, and Note 11, Goodwill and Intangible Assets , for discussion and details of the impairment losses recorded in the third fiscal quarter of 2024. We periodically evaluate the recoverability of the carrying amount of our long-lived assets, including amortizing intangible 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. 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, and Note 11, Goodwill and Intangible Assets , for discussion of an identified trigger event and impairment expense related to certain amortizing intangibles during third fiscal quarter of 2024. See Note 3, Leases , for discussion of right of use asset (ROU) impairments during the fiscal year. Significant assumptions were used to estimate fair value of long-lived assets, which were categorized within Level 3 of the fair value hierarchy. See Note 13, Restructuring, for discussion of long-lived asset impairments related to our restructuring plan during fiscal year 2024. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2024 | |
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 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 2024 2023 Assets: Operating lease assets Operating lease assets $ 107,007 $ 106,828 Liabilities: Current: Operating lease liabilities Other current liabilities $ 14,673 $ 16,351 Long-term: Operating lease liabilities Long-term operating lease liabilities 105,699 103,313 Total lease liabilities $ 120,372 $ 119,664 The components of lease expense are recorded to cost of sales and selling, general, and administrative expenses in the consolidated statements of comprehensive income (loss). The components of lease expense were as follows: Years ended March 31, 2024 2023 Fixed operating lease costs (1) $ 27,212 $ 28,128 Variable operating lease costs 4,635 3,200 Operating and sublease income (893) (602) Net lease costs $ 30,954 $ 30,726 (1) Includes short-term leases, which are immaterial. The weighted average remaining lease term and weighted average discount rate is as follows: March 31, 2024 2023 Weighted average remaining lease term (years): Operating leases 8.82 9.71 Weighted average discount rate: Operating leases 8.64 % 8.43 % The approximate future minimum lease payments under operating leases were as follows: Fiscal year 2025 $ 24,245 Fiscal year 2026 23,457 Fiscal year 2027 21,064 Fiscal year 2028 18,336 Fiscal year 2029 16,345 Thereafter 72,867 Total lease payments 176,314 Less imputed interest (55,942) Present value of lease liabilities $ 120,372 Supplemental cash flow information related to leases is as follows: Years ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 26,817 $ 22,760 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 22,045 $ 35,046 ROU asset re-measurement (5,747) 10,237 As part of our restructuring plans in fiscal years 2024 and 2023, we made strategic decisions to close and impair office locations that were no longer being used as intended or weren't able to be subleased. Accordingly, during fiscal years 2024 and 2023, we recognized ROU asset impairment of $3,116 and $1,812, respectively, reducing the carrying value of the lease asset to its estimated fair value. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Commodity Price Risk We use designated cash flow hedges to hedge our exposure to price fluctuations on lead we purchase for raw material components in our ammunition manufacturing process that are designated and qualify as effective cash flow hedges. The effectiveness of cash flow hedge contracts is assessed quantitatively at inception and qualitatively thereafter considering the transactions critical terms and counterparty credit quality. The gains and losses on these hedges are included in accumulated other comprehensive loss and are reclassified into earnings at the time the forecasted revenue or expense is recognized. The gains or losses on the lead forward contracts are recorded in inventory as the commodities are purchased and in cost of sales when the related inventory is sold. As of March 31, 2024, we had outstanding lead forward contracts on approximately 6.25 million pounds of lead. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the related change in fair value of the derivative instrument would be reclassified from accumulated other comprehensive loss and recognized in earnings. The short-term liability related to the lead forward contracts is immaterial and is recorded as part of other current liabilities. The long-term asset related to the lead forward contracts is immaterial and is recorded as part of deferred charges and other non-current assets, net. Foreign Exchange Risk In the normal course of business, we are exposed to gains and losses resulting from fluctuations in foreign currency exchange rates relating to transactions of our international subsidiaries. We use designated cash flow hedges and non-designated hedges in the form of foreign currency forward contracts as part of our strategy to manage the level of exposure to the risk of fluctuations in foreign currency exchange rates and to mitigate the impact of foreign currency translation on transactions that are denominated primarily in British Pounds, Euros, and Canadian Dollars. Cash Flow Hedging Instrument We use foreign currency forward contracts designated as qualifying cash flow hedging instruments to help mitigate our exposure on our foreign subsidiaries' inventory purchases and intercompany transactions, which is different than their functional currency. Certain U.S. subsidiaries also hedge a portion of their future sales in Canadian Dollars. These contracts generally mature within 12 months to 15 months from their inception. As of March 31, 2024, the notional amounts of our foreign currency forward contracts designated as cash flow hedge instruments were approximately $4,064. The effectiveness of cash flow hedge contracts is assessed quantitatively at inception and qualitatively thereafter considering the transactions critical terms and counterparty credit quality. As of March 31, 2024 , we have no remaining foreign currency forward contracts not designated as cash flow hedge instruments. During the fiscal years ended 2024, 2023, and 2022, we recorded net foreign currency translation loss of $2,991, $588, and $0, respectively, on the consolidated statements of comprehensive income (loss) within other income (expense), net. Interest Rate Swaps During fiscal year 2023, we entered into floating-to-fixed interest rate swaps in order to mitigate the risk of changes in our interest rates on our outstanding variable-rate debt. We will receive variable interest payments from the counterparty lenders in exchange for fixed interest rate payments made by us. As of March 31, 2024, we had the following interest rate swaps outstanding: Notional Fair value Pay fixed Receive floating Maturity date Non-amortizing swap $ 50,000 $ 73 4.491% 5.324% Feb 2026 Non-amortizing swap 25,000 (60) 4.650% 5.321% Mar 2026 The amount paid or received under these swaps is recorded as an adjustment to interest expense. All unrealized gains and losses as shown as of March 31, 2024 will be recognized in the consolidated statements of comprehensive income (loss) in interest expense within the next two fiscal years, at their then-current value. The following tables summarize the fair value of our derivative instruments as well as the location of the asset and/or liability on the consolidated balance sheets: Asset derivatives March 31, Derivatives not designated as hedging instruments Balance sheet location 2024 2023 Foreign currency forward contracts Other current assets $ — $ 91 Total $ — $ 91 Asset (Liability) derivatives March 31, Derivatives designated as cash flow hedging instruments Balance sheet location 2024 2023 Interest rate swap contract Deferred charges and other non-current assets, net $ 13 $ — Foreign currency forward contracts Other current liabilities (4) (3,252) Interest rate swap contract Other long-term liabilities — (1,760) Total $ 9 $ (5,012) The following tables summarize the net effect of all cash flow hedges for each of our derivative contracts on the consolidated financial statements: Gain (loss) recognized in other comprehensive income Years ended March 31, Derivatives designated as cash flow hedging instruments: 2024 2023 2022 Foreign currency forward contracts $ 199 $ (3,782) $ — Lead forward contracts 115 713 — Interest rate swap contracts 2,293 (1,760) — Total gain (loss) $ 2,607 $ (4,829) $ — Gain (loss) reclassified from other comprehensive income into earnings Years ended March 31, Derivatives designated as cash flow hedging instruments: Location 2024 2023 2022 Foreign currency forward contracts Cost of sales $ (1,349) $ (588) $ — Foreign currency forward contracts Other income (expense), net (1,642) — — Lead forward contracts Cost of sales 446 653 — Interest rate swap contracts Interest expense, net 520 — — Total gain (loss) $ (2,025) $ 65 $ — |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company's disaggregated revenue is fully disclosed by reportable segments and by geographic area in Note 19, Operating Segment Information. The principal activities from which the Company recognizes its revenue by reportable segment is discussed below and in Note 1, Significant Accounting Policies . 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. 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, 2024 | |
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, 2024 2023 2022 Numerator: Net income (loss) $ (5,505) $ (9,718) $ 473,226 Denominator: Weighted-average number of common shares outstanding, basic 57,946 56,600 57,190 Dilutive effect of stock-based awards (1) — — 1,947 Diluted shares 57,946 56,600 59,137 Earnings (loss) per common share: Basic $ (0.10) $ (0.17) $ 8.27 Diluted $ (0.10) $ (0.17) $ 8.00 (1) Due to the loss from continuing operations for the fiscal year ended March 31, 2024 and 2023, there are no common shares added to calculate dilutive EPS because the effect would be anti-dilutive. Potentially dilutive securities of 300 and 1,504 were excluded from diluted EPS in fiscal years 2024 and 2023, respectively, as we had a net loss. There were no potentially dilutive securities, which were not included in the computation of diluted earnings per share, because either the effect would have been anti-dilutive, or the options’ exercise prices were greater than the average market price of the common stock, for the fiscal year ended March 31, 2022. |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions PinSeeker During the fourth quarter of fiscal year 2024, we acquired PinSeeker, a leader in virtual network of golfers, allowing players to complete globally in real-time. The results of this business are reported within the Revelyst Precision Sports Technology reportable 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. 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. Simms Fishing During the second quarter of fiscal year 2023, we acquired Simms Fishing Products ("Simms"), a premium fishing brand and leading manufacturer of waders, outerwear, footwear and technical apparel. The results of this business are reported within the Revelyst Outdoor Performance reportable segment. 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. We finalized the purchase price allocation during the fourth quarter of fiscal year 2023, and no significant changes were recorded from the original estimation. 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 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. Fox Racing During the second quarter of fiscal year 2023, we acquired Fox (Parent) Holdings, Inc. (“Fox Racing”), a leader in motocross industry and a growing brand in the mountain bike category. We finalized the purchase price allocation during the fourth quarter of fiscal year 2023, and no significant changes were recorded from the original estimation. The results of this business are reported within the Revelyst Adventure Sports reportable segment. Fox Racing purchase price allocation: August 5, 2022 Cash consideration to the Seller $ 564,134 Fair value of contingent consideration payable 11,400 Total estimated purchase consideration $ 575,534 Fair value of assets acquired: Accounts receivable $ 39,174 Inventories 96,142 Intangible assets 255,200 Property, plant, and equipment 23,570 Operating lease assets 16,078 Other current assets 17,145 Other long-term assets 5,347 Total assets 452,656 Fair value of liabilities assumed: Accounts payable 18,584 Long-term operating lease liabilities 11,971 Deferred income taxes 55,488 Other liabilities 39,292 Other long-term liabilities 41 Total liabilities 125,376 Net assets acquired 327,280 Goodwill $ 248,254 Value Useful life (years) Tradenames $ 106,200 Indefinite Customer relationships 149,000 5 to 15 Fox Racing supplemental pro forma data: Fox Racing's net sales of $180,320 and net loss of $18,857 s ince the acquisition date, August 5, 2022, were included in our consolidated results for the fiscal year ended March 31, 2023, and are reflected in the Revelyst Adventure Sports reportable segment. The following unaudited pro forma financial information presents our results as if the Fox Racing acquisition had occurred on April 1, 2021: Years ended March 31, 2023 2022 Sales, net $ 3,185,662 $ 3,344,338 Net income (loss) (6,930) 433,199 The unaudited supplemental pro forma data above includes the following significant non-recurring adjustments to net income (loss) to account for certain costs which would have been incurred if the Fox Racing acquisition had been completed on April 1, 2021: Years ended March 31, 2023 2022 Fees for advisory, legal, and accounting services (1) $ (6,064) $ 6,064 Inventory step-up, net (2) (7,544) 7,544 Interest (3) 10,627 30,406 Depreciation (4) 969 2,482 Amortization (5) 4,245 12,257 Management Fees (6) (530) (1,413) Income tax provision (benefit) (7) (910) (13,260) (1) During the fiscal year ended March 31, 2023, we incurred a total of $6,064 in acquisition related costs, including legal and other professional fees, all of which were reported in selling, general, and administrative expense in the consolidated statements of comprehensive income (loss). This adjustment is to show the results as if those fees were incurred during the first quarter of fiscal year 2022. (2) Adjustment reflects the increased cost of goods sold expense resulting from the fair value step-up in inventory, which was expensed over inventory turns. (3) Adjustment for the estimated interest expense and debt issuance amortization expense on $580,000 in borrowings from Vista's 2022 ABL Revolving Credit Facility and 2022 Term Loan, used to finance the acquisition of Fox Racing. The interest rate assumed for purposes of preparing this pro forma financial information is 5.58%. This rate is the weighted average interest rate for our borrowings under the 2022 ABL Revolving Credit Facility and 2022 Term Loan during the quarter of the acquisition. (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) Represents an adjustment for management fees historically charged by the previous owner of Fox Racing under the terms of their management agreement. (7) Income tax effect of the adjustments made at a blended federal, state, and international statutory rate adjusted for any non-deductible acquisition costs. 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 Fox Racing. Stone Glacier 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 Revelyst Outdoor Performance reportable 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 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. We finalized the purchase price allocation during the fourth quarter of fiscal year 2023, and no significant changes were recorded from the original estimation. 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. Fiber Energy During the third quarter of fiscal year 2022, we acquired Fiber Energy Products, a leader in all-natural wood grilling pellets. The results of this business are reported within the Revelyst Outdoor Performance reportable 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. 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. Foresight Sports During the third quarter of fiscal year 2022, we acquired Foresight Sports ("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 Revelyst Precision Sports Technology reportable 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 Revelyst Precision Sports Technology reportable 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. We finalized the purchase price allocation during the third quarter of fiscal year 2023, and no significant changes were recorded from the original estimation. 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 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 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 (loss) 515,345 268,547 The unaudited supplemental pro forma data above includes the following significant non-recurring adjustments to net income (loss): 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 and 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 (loss). 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 valua tion 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. QuietKat 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 Revelyst Adventure Sports reportable segment. 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. We finalized the purchase price allocation during the first quarter of fiscal year 2023 and no significant changes were recorded from the original estimation. 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. |
Receivables
Receivables | 12 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Receivables | Receivables Our trade accounts receivables 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, 2024 2023 Trade receivables $ 357,672 $ 349,424 Other receivables 17,585 8,899 Less: allowance for estimated credit losses and discounts (19,354) (18,950) Net receivables $ 355,903 $ 339,373 Walmart represented 11% and 10% of the total trade receivables balance as of March 31, 2024 and 2023, respectively. 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, 2022 $ 14,510 Provision for credit losses 2,289 Write-off of uncollectible amounts, net of recoveries (259) Purchase accounting (Note 7) 2,410 Balance, March 31, 2023 18,950 Provision for credit losses 1,915 Write-off of uncollectible amounts, net of recoveries (1,511) Balance, March 31, 2024 $ 19,354 |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Net inventories consist of the following: March 31, 2024 2023 Raw materials $ 179,308 $ 199,225 Work in process 57,093 63,652 Finished goods 373,598 447,020 Net inventories $ 609,999 $ 709,897 We consider inventories to be long-term if they are not expected to be sold within one year. Long-term inventories are presented on the balance sheet net of reserves within deferred charges and other non-current assets and totaled $38,683 and $45,929 as of March 31, 2024 and 2023, respectively. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Mar. 31, 2024 | |
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 10 years and buildings and improvements are depreciated over 1 to 30 years. Depreciation expense was $49,145, $48,126, and $46,094 in fiscal years 2024, 2023, and 2022, respectively. As discussed in Note 1, Significant Accounting Policies, w e 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. On February 6, 2024, a fire occurred at our Fiber Energy Seymour, Missouri pellet manufacturing location. There were no injuries or environmental issues from the fire. The damage was principally limited to the inventory, raw materials, plant equipment and building structures. We have adequate property damage and business interruption insurance, subject to an applicable deductible. We completed our final damage assessment, and discussions with the insurance carrier is ongoing. We assessed incurred costs and lost earnings related to business interruption and property damage to our facility, as well as timing of recognition under applicable insurance recovery guidance, and recorded accruals of $3,242 in fiscal year 2024 for insurance recoveries that offset the impairment expense of the damaged fixed assets and inventory of $4,242. The net expense of $1,000 is included in Selling, general, and administrative expenses in the consolidated statements of comprehensive income (loss). Property, plant, and equipment consists of the following: March 31, 2024 2023 Land $ 13,301 $ 13,276 Buildings and improvements 108,753 108,377 Machinery and equipment 516,337 498,266 Property not yet in service 15,357 22,639 Gross property, plant, and equipment 653,748 642,558 Less: accumulated depreciation (451,884) (414,311) Net property, plant, and equipment $ 201,864 $ 228,247 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2024 | |
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: The Kinetic Group Revelyst Outdoor Performance Revelyst Adventure Sports Revelyst Precision Sports Technology Total Balance, March 31, 2022 $ 86,105 $ 39,973 $ 12,349 $ 343,430 $ 481,857 Acquisitions — 68,353 248,254 — 316,607 Impairment — (72,152) (260,603) — (332,755) Balance, March 31, 2023 86,105 36,174 — 343,430 465,709 Acquisitions — — — 14,256 14,256 Impairment — (36,174) — (125,540) (161,714) Balance, March 31, 2024 $ 86,105 $ — $ — $ 232,146 $ 318,251 The increase in goodwill in fiscal year 2024 was due to our PinSeeker acquisition. See Note 7, Acquisitions . The decrease in fiscal year 2024 was due to an impairment charge of $161,714 recognized in the third quarter of fiscal year 2024 as discussed below. As of March 31, 2024, th ere were $745,957 , $617,179 , and $125,540 of accumu lated impairment losses, related to the Revelyst Outdoor Performance, Revelyst Adventure Sports, and Revelyst Precision Sports Technology reportable segments, respectively. As of March 31, 2023 there were $709,783, $617,179, and $0 of accumulated impairment losses, related to the Revelyst Outdoor Performance, Revelyst Adventure Sports, and Revelyst Precision Sports Technology reportable segments, respectively. The goodwill recorded within The Kinetic Group segment has no accumulated impairment losses. Fiscal year 2024 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 during the fourth quarter, and concluded there were no indicators of impairment. During the fourth quarter of fiscal year 2024 we determined there was a change to our reporting units, based on the change in our reportable segments. See Note 19, Operating Segment Information , for additional information. Our reporting units are now the same as our reportable segments. There was no goodwill recorded in the reporting units affected by the reorganization. Results of our interim testing During the third quarter of fiscal year 2024, as a result of an increasingly challenging economic environment for consumers due to higher interest rate expectations continuing, and other factors affecting the market for our products, we reduced our projections for fiscal year 2024 and beyond for the majority of our reporting units within the former Revelyst reportable segment. As a result of a downward revision of forecasted cash flows due to lower volume and profitability expectations, combined with the decline in our stock price in the third fiscal quarter, we concluded that triggering events had occurred potentially indicating that the fair values of certain reporting units within our former Revelyst reportable segment were less than their carrying values. We recognized impairment losses equal to the full carrying value of goodwill of $26,219 and $9,955, related to the former reporting units of Outdoor Cooking and Stone Glacier, respectively, and a partial goodwill impairment loss of $125,540 related to our Golf reporting unit. Goodwill relating to the Ammunition reporting unit was not impaired as the fair value exceeded the carrying value. Our Ammunition and Golf reporting units comprise our remaining goodwill at March 31, 2024. For the third quarter of fiscal year 2024 interim quantitative goodwill impairment analysis, we determined the estimated fair value of each reporting unit and compared it to their respective carrying amounts, including goodwill. The fair value of each reporting unit was determined considering both an income and market approach. We weighted the valuations of our former Revelyst segment reporting units using 100% of the income approach, specifically the discounted cash flow method. The weighted average cost of capital used in the income approach ranged between 12.5% and 16.0%, which was derived from the financial structures of comparable companies corresponding to the industry of each reporting unit. We weighted the value of The Kinetic Group reporting unit using 100% of the market approach, based on the offer accepted in the Sporting Products Sale. This market approach method estimates the price reasonably expected to be realized. See Sale of The Kinetic Group and Planned Separation in the Executive Summary and Financial Highlights of Part II, Item 7 of this Annual Report for further discussion of the Sporting Products Sale. Before completing our interim goodwill impairment test, we performed a fair value analysis on our indefinite-lived trademarks and trade names within the former Revelyst reportable segment, which we recorded impairment losses of $26,600, $9,600, $6,100, $4,500 $1,800, $1,100, and $600 related to the Fox Racing, CamelBak, Bell Cycling, Simms Fishing, Giro, Bushnell, and Bell Powersports indefinite-lived tradename assets, respectively. The carrying value of the indefinite-lived intangible assets related to Fox Racing, CamelBak, Bell Cycling, Simms Fishing, Giro, Bushnell, and Bell Powersports after the impairment was $58,400, $13,300, $12,000, $25,500, $15,300, $14,900, and $3,500, respectively, at March 31, 2024. We determined the fair value of our Fox Racing, CamelBak, Bell Cycling, Simms Fishing, Giro, Bushnell, and Bell Powersports indefinite-lived trade names using royalty rates of 3%, 1.5%, 1.5%, 3%, 1.5%, 1%, and 1%, respectively. Fiscal year 2023 assessment We performed our annual testing of goodwill in accordance with our accounting policies described in Note 1, Significant Accounting Policies . To perform the annual quantitative goodwill impairment testing, we prepared valuations of our reporting units using both an income and market approach, which were compared with the respective carrying values of the reporting units to determine whether any goodwill impairment existed. The decline in fair value of our reporting units was significantly impacted by a sudden decline in the demand of products related to certain of our recent acquisitions, which resulted in lower forecasted revenues, operating margins, and operating cash flows as compared to our valuation at acquisition date. Our estimates of the fair values of the reporting units were also influenced by higher discount rates in the income-based valuation approach as a result of increasing market to equity risk premiums, company specific risk premiums and higher treasury rates, since the acquisition dates. The weighted average cost of capital used in the goodwill impairment testing ranged between 10.5% and 17.0%, which was derived from the financial structures of comparable companies corresponding to the industry of each reporting unit. As a result, we recognized impairment losses equal to the full carrying value of goodwill of $248,254, $68,353, and $12,349 allocated to the former reporting units of Fox Racing, Simms Fishing, and QuietKat, respectively, and partial goodwill impairment charges of $3,799 related to our former Stone Glacier reporting unit. We determined that the goodwill relating to our other reporting units was not impaired as the fair value exceeded the carrying value. Our Ammunition, Golf, Stone Glacier, and Outdoor Cooking reporting units comprise our remaining goodwill at March 31, 2023. As of the fiscal year 2023 annual testing measurement date, the fair value of our former Stone Glacier and former Outdoor Cooking reporting units was less than 10% higher than their carrying values. In order to assess the reasonableness of the calculated fair values of our reporting units, we also compared the sum of the reporting units’ fair values to our market capitalization and calculated an implied control premium (the excess of the sum of the reporting units’ fair values over the market capitalization). We evaluated the control premium by comparing it to control premiums of recent comparable transactions. If the implied control premium was not reasonable in light of this assessment, we would have reevaluated our fair value estimates of the reporting units by adjusting the discount rates and other assumptions as necessary. Before completing our goodwill impairment test, we first tested our indefinite-lived intangible assets. We performed a step zero analysis on nine of our indefinite-lived tradenames. We performed a step one analysis on our remaining indefinite-lived tradenames, which resulted in 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. Intangible assets Net intangibles consisted of the following: March 31, 2024 2023 Gross Accumulated Total Gross Accumulated Total Trade names $ 113,636 $ (37,646) $ 75,990 $ 113,915 $ (30,848) $ 83,067 Patented technology 37,604 (19,252) 18,352 36,854 (16,313) 20,541 Customer relationships and other 523,059 (190,068) 332,991 530,237 (151,272) 378,965 Total 674,299 (246,966) 427,333 681,006 (198,433) 482,573 Non-amortizing trade names 200,303 — 200,303 250,603 — 250,603 Net intangible assets $ 874,602 $ (246,966) $ 627,636 $ 931,609 $ (198,433) $ 733,176 The decrease in the gross carrying amount of amortizing intangible assets in fiscal year 2024 was due to impairment , less increases due to the acquisition of PinSeeker and the impact of foreign exchange rates. See Note 1, Significant Accounting Policies for discussion of impairment recorded during fiscal year 2024. We recorded impairment 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 2025 $ 49,991 Fiscal year 2026 46,981 Fiscal year 2027 45,531 Fiscal year 2028 40,361 Fiscal year 2029 33,871 Thereafter 210,598 Total $ 427,333 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities The major categories of current liabilities are as follows: March 31, 2024 2023 Warranty liability $ 8,083 $ 5,441 Accrual for in-transit inventory 5,570 9,810 Operating lease liabilities 14,673 16,351 Contingent consideration 750 8,586 Other 100,276 106,189 Total other current liabilities $ 129,352 $ 146,377 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 current and long-term liability for warranty coverage for products delivered based on historical information and current trends. The following is a reconciliation of the changes in our combined current and long-term product warranty liability during the periods presented: Balance as of March 31, 2022 $ 9,073 Payments made (4,676) Warranties issued 4,827 Changes related to pre-existing warranties and other adjustments 328 Balance as of March 31, 2023 9,552 Payments made (6,834) Warranties issued 12,119 Changes related to pre-existing warranties and other adjustments (3,785) Balance as of March 31, 2024 $ 11,052 |
Restructuring
Restructuring | 12 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 13. Restructuring As part of our restructuring plans, we have and will incur severance and employee related costs, professional fees, ROU asset impairments and other exit and disposal costs which are recorded in Selling, general, and administrative in the consolidated statements of comprehensive income (loss). Severance and employee related costs consist primarily of salary continuation benefits, outplacement services and continuation of health benefits. Severance and employee related benefits are pursuant to our severance plan and are accounted for in accordance with ASC 712, Compensation - Nonretirement Postemployment Benefits , based upon the characteristics of the termination benefits being provided in the restructuring, pursuant to our severance plan. Severance and employee related costs are recognized when the benefits are determined to be probable of being paid and reasonably estimable. Professional fees, contract termination costs and other exit and disposal costs are accounted for in accordance with ASC 420, Exit or Disposal Cost Obligations and are recognized as incurred. Asset impairments are accounted for in accordance with ASC 360-10, Impairment and Disposal of Long-Lived Assets . Restructuring accruals are based upon management estimates at the time and are subject to change depending upon changes in facts and circumstances subsequent to the date the original liability was recorded. During fiscal year 2024, we initiated the GEAR Up transformation program. GEAR Up is an efficiency and cost savings initiative program, to accelerate growth and transformation within our Revelyst Outdoor Performance, Revelyst Adventure Sports, and Revelyst Precision Sports Technology reportable segments. We made changes to the structure of our organization during the fourth fiscal quarter of 2024, which resulted in our pre vious Revelyst reportable segment being reorganized into three new reportable segments. We further finalized plans to centralize certain functions under shared services to better support our segments. We also announced plans to geographically consolidate the businesses within Revelyst Adventure Sports, Revelyst Outdoor Performance and Revelyst Precision Sports Technology. These geographic relocations are expected to be completed during fiscal 2025. For GEAR Up, we are estimating pre-tax restructuring charges of approximately $40,000 to $50,000 over the duration of the plan. We expect these charges to be completed during fiscal 2027. All of pre-tax restructuring charges will be recorded as corporate expense, and not allocated to our reportable segments. During fiscal year 2024, we incurred $8,279 , of pre-tax restructuring costs in connection with GEAR Up, which are recorded in Selling, general, and administrative expense in the consolidated statements of comprehensive income (loss). In the fourth quarter of fiscal year 2023, we announced a cost reduction and earnings improvement program. We recorded $5,604 and $15,668 of pre-tax restructuring charges for the fiscal years 2024 and 2023, respectively. These restructuring charges are included in selling, general, and administrative expense The following tables summarize restructuring charges recorded as a result of our restructuring programs for the periods presented: Years ended March 31, Incurred since GEAR Up restructuring costs 2024 2023 inception Employee severance and related expenses $ 6,056 $ — $ 6,056 Professional fees 1,720 — 1,720 Right-of-use asset impairments 129 — 129 Impairment on technology assets 306 — 306 Other 68 — 68 Total $ 8,279 $ — $ 8,279 Years ended March 31, Incurred since Cost reduction and earnings improvement program 2024 2023 inception Other asset impairments $ — $ 7,628 $ 7,628 Employee severance and related expenses 614 5,225 5,839 Right-of-use asset impairments 3,825 1,812 5,637 Impairment on technology assets — 1,003 1,003 Contract termination costs 1,165 — 1,165 Total $ 5,604 $ 15,668 $ 21,272 The tables below present a roll forward of our accruals or (deposits) related to GEAR Up, which are included in Accounts payable, Other current liabilities, or Other current assets: GEAR Up Balance as of March 31, 2023 Charges Payments Balance as of March 31, 2024 Employee severance and related expenses $ — $ 6,056 $ (657) $ 5,399 Professional fees — 1,720 (2,688) (968) Other — 68 (61) 7 Total $ — $ 7,844 $ (3,406) $ 4,438 Cost reduction and earnings improvement program Balance as of March 31, 2023 Charges Payments Balance as of March 31, 2024 Employee severance and related expenses $ 5,225 $ 614 $ (4,835) $ 1,004 Total $ 5,225 $ 614 $ (4,835) $ 1,004 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term Debt March 31, 2024 2023 2022 ABL Revolving Credit Facility $ 220,000 $ 355,000 2022 Term Loan — 205,000 Total Principal Amount of Credit Agreements 220,000 560,000 4.5% Senior Notes 500,000 500,000 Total Principal Amount of Long-Term Debt 720,000 1,060,000 Less: unamortized deferred financing costs (2,762) (10,342) Carrying amount of long-term debt 717,238 1,049,658 Less: current portion — (65,000) Carrying amount of long-term debt, excluding current portion $ 717,238 $ 984,658 Credit Agreements —In fiscal year 2023, we refinanced our 2021 ABL Revolving Credit Facility by entering into the 2022 ABL Revolving Credit Facility, which provides for a $600,000 senior secured asset-based revolving credit facility. The amount available under the 2022 ABL Revolving Credit Facility is the lesser of the total commitment of $600,000 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 2022 ABL Revolving Credit Facility described below. As of March 31, 2024, the Excess Availability, or the amount available to borrow under the 2022 ABL Revolving Credit Facility, based on the borrowing base less outstanding borrowings of $220,000 and outstanding letters of credit of $14,612, less the minimum required borrowing base of $57,000, was $237,109. The 2022 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 2022 ABL Revolving Credit Facility will be payable in full on the Maturity Date. Concurrently with the effectiveness of the 2022 ABL Revolving Credit Facility, we also obtained a $350,000 senior secured asset-based term loan facility (the “2022 Term Loan”). The 2022 Term Loan was paid off during the fourth quarter of fiscal year 2024. Borrowings under the 2022 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 Term Secured Overnight Financing Rate ("Term SOFR") plus a credit spread adjustment of 0.10%, plus a margin ranging from 1.25% to 1.75%. The margins vary based on our Average Excess Availability under the 2022 ABL Revolving Credit Facility. As of March 31, 2024, the margin under the 2022 ABL Revolving Credit Facility was 0.50% for base rate loans and 1.50% for Term SOFR loans. We pay a commitment fee on the unused commitments under the 2022 ABL Revolving Credit Facility of 0.175% per annum. As of March 31, 2024, the weighted average interest rate for our borrowings under the 2022 ABL Revolving Credit Facility was 6.66%. Debt issuance costs incurred to date related to the 2022 ABL Revolving Credit Facility were approximately $11,310, which includes remaining unamortized debt issuance costs related to the 2021 ABL Credit Facility. The costs are being amortized over the term of the 2022 ABL Revolving Credit Facility, and are included within other current and non-current assets. Unamortized debt issuance costs of $2,423 related to the 2022 Term Loan were written off during the fourth quarter of fiscal year 2024. This expense is included in interest expense in the consolidated statements of comprehensive income (loss). Substantially all domestic tangible and intangible assets of Vista Outdoor and our domestic subsidiaries are pledged as collateral under the 2022 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 had the right to redeem some or all of these notes on or after March 15, 2024 at specified redemption prices. Debt issuance costs of approximately $4,491 are being amortized to interest expense over eight years, the term of the notes. Rank and guarantees —The 2022 ABL Revolving Credit Facility obligation is 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 2022 ABL Revolving Credit Facility 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, or • if such subsidiary guarantor has been released from its guarantees of indebtedness under the 2022 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, 2024: Fiscal year 2026 $ 220,000 Fiscal year 2029 500,000 Total $ 720,000 Covenants 2022 ABL Revolving Credit Facility —Our 2022 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 2022 ABL Revolving Credit Facility contains a financial covenant which requires that Excess Availability under the 2022 ABL Revolving Credit Facility cannot fall below the greater of (a) 10% of the line cap or (b) $57,000. As a result of this financial covenant, we must maintain Excess Availability of at least the greater of 10% of the line cap or $57,000 at all times in order to satisfy the financial covenant. The 2022 ABL Revolving Credit Facility includes a covenant that prohibits the “Planned Separation” (as defined in Vista Outdoor’s Form 10-K filing for the fiscal year ended March 31, 2022) with respect to the separation of Vista Outdoor’s Revelyst and The Kinetic Group segments or any analogous transaction with respect to any line of business, business segment or division (or any part thereof) of Vista Outdoor or any subsidiary thereof. In October 2023, we announced our entry into a definitive agreement to sell The Kinetic Group business to Czechoslovak Group a.s. (“CSG”) on a cash-free, debt-free basis with a normalized level of working capital (the "The Kinetic Group Sale" or the “Sporting Products Sale”). See Sale of The Kinetic Group and Planned Separation in the Executive Summary and Financial Highlights of Part II, Item 7 of this Annual Report for further discussion of the Sporting Products Sale. Vista Outdoor anticipates that the 2022 ABL Revolving Credit Facility will be repaid in full (or amended to unconditionally release all The Kinetic Group entities from their obligations thereunder) prior to or upon the consummation of the Sporting Products Sale. If we do not comply with the covenants in the 2022 ABL Revolving Credit Facility, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under such facility. As noted above, the Excess Availability less the minimum required borrowing base under the 2022 ABL Revolving Credit Facility was $237,109 as of March 31, 2024. Vista Outdoor has the option to increase the amount of the 2022 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 2022 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, make other distributions, repurchase, or redeem our capital stock, prepay, redeem or repurchase certain debt and make loans and investments. The 2022 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, 2024, we were in compliance with the covenants of all 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 2022 ABL Revolving Credit Facility may prevent us from drawing under these loans and may result in an event of default under the 2022 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. Cash Paid for Interest on Debt |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Effective February 9, 2015, we sponsored a qualified defined benefit pension and OPEB plan subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and a SERP plan. These are designed to provide employees with additional security for their retirement. The OPEB Plan was terminated in fiscal 2022 and in fiscal 2018 the pension plan was amended to freeze the accrued benefits and cash balances of the plan, except with respect to additional interest credits required to be made. The SERP plan is immaterial. Defined Benefit Plan During fiscal years 2024, 2023, and 2022, we recognized an aggregate net expense for employee defined benefit plans of $951, $1,525, and $426 respectively. We recognize the funded status of our defined benefit pension plan 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 plan. The weighted average discount rate used to determine the PBO was 5.2% and 4.9% as of March 31, 2024 and 2023, respectively, which decreases the PBO. The fair value of the plan assets was $138,247 and $143,658 as of March 31, 2024 and 2023, respectively. The decrease in fair value from prior year related to benefit payments of $(13,190) partially offset by return on plan assets of $7,779. The benefit obligation was $159,006 and $167,047 as of March 31, 2024 and 2023, respectively. The decrease was related to benefit payments of $(13,190) and actuarial gain of $(2,700) partially offset by interest cost Since 2018, participating employee’s benefits continue to grow based on annual interest credits applied to the employee’s cash balance account until the commencement of the employee’s benefit. Prior to the amendments, the benefits under the affected plans were determined by a cash balance formula that provided participating employees with an annual pay credit as a percentage of their eligible pay based on their age and eligible service. The weighted average interest crediting rate was 4% for fiscal years 2024 and 2023, 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 6.25% and 6.5% over the long-term within reasonable and prudent levels of risk as of March 31, 2024 and 2023, respectively, 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 —During fiscal year 2024, we made contributions of $0 directly to the pension trust, made contributions of $0 to our other postretirement benefit plans, and made distributions of $0 directly to retirees under our non-qualified supplemental executive retirement plans, respectively. During fiscal year 2023, we made contributions of $0 directly to our pension trust, made contributions of $0 to our other postretirement benefit plans, and made distributions of $0 directly to retirees under our non-qualified supplemental executive retirement plans, respectively. During fiscal year 2022, we made contributions of $1,300 directly to our pension trust, made contributions of $0 to our other postretirement benefit plans, and made distributions of $0 directly to retirees under our non-qualified supplemental executive retirement plans, respectively. Substantially all contributions made to our pension trust were required by local funding requirements. We currently expect to make contributions of $4,300 during fiscal year 2025. 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 2025 $ 14,854 Fiscal year 2026 13,488 Fiscal year 2027 13,212 Fiscal year 2028 13,113 Fiscal year 2029 13,439 Fiscal years 2030 through 2034 61,959 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, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before income taxes is as follows: Years ended March 31, 2024 2023 2022 Current: U.S. $ (16,081) $ 44,494 $ 619,464 Non-U.S. 1,597 6,168 1,494 Income (loss) before income taxes $ (14,484) $ 50,662 $ 620,958 Our income tax (provision) benefit consists of: Years ended March 31, 2024 2023 2022 Current: Federal $ (39,516) $ (94,041) $ (107,429) State (6,467) (9,263) (28,119) Non-US (836) (324) (739) Deferred: Federal 49,592 42,445 (10,327) State 5,991 (253) (1,483) Non-US 215 1,056 365 Income tax benefit (provision) $ 8,979 $ (60,380) $ (147,732) The items responsible for the differences between the federal statutory rate and our effective rate are as follows: Years ended March 31, 2024 2023 2022 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal impact (2.5) % 14.2 % 3.9 % Foreign derived intangible income 37.7 % (13.1) % (1.0) % Nondeductible goodwill impairment (30.2) % 110.1 % — % Nondeductible earnouts (15.3) % (7.5) % 0.2 % Change in tax contingency 47.0 % (1.4) % (0.7) % Other 4.3 % (4.1) % 0.4 % Effective income tax rate 62.0 % 119.2 % 23.8 % The effective tax rate for the current year is reflective of the federal statutory rate of 21% increased by the beneficial deductions for foreign derived intangible income and changes in tax contingency, partially offset by nondeductible impairment of goodwill and non-deductible earnouts. The current year decrease in the effective tax rate as compared to the prior fiscal year is primarily due to the impact of nondeductible impairment of goodwill. 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, 2024 and 2023, the components of deferred tax assets and liabilities were as follows: March 31, 2024 2023 Deferred tax assets: Inventories $ 19,123 $ 18,628 Retirement benefits 4,628 6,228 Accounts receivable 6,503 8,245 Accruals for employee benefits 6,497 9,063 Other reserves 4,146 3,597 Loss and credit carryforwards 6,679 5,368 Capital loss carryforward 19,472 19,390 Operating lease liabilities 22,230 25,922 Other 13,386 9,511 Total deferred tax assets 102,664 105,952 Valuation allowance (21,605) (21,382) Total net deferred assets 81,059 84,570 Deferred tax liabilities: Intangible assets (47,428) (86,956) Property, plant, and equipment (273) (13,970) Operating lease assets (20,463) (24,393) Total deferred tax liabilities (68,164) (125,319) Net deferred income tax asset (liability) $ 12,895 $ (40,749) We have capital loss carryforwards totaling $19,472 as of March 31, 2024, which, if unused, will expire in fiscal year 2025. As of March 31, 2024, there are federal and state net operating loss and credit carryovers of $5,726, which, if unused, will expire in years March 31, 2025 through March 31, 2045. The carryforwards expiring in fiscal year 2025 are not material. We have valuation allowances on certain deferred tax assets of $21,605 and $21,382 at March 31, 2024 and 2023, respectively. The increase in valuation allowance from year end 2023 to year end 2024 is primarily due to U.S. state tax attributes. 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 $65,161 and $43,201 in fiscal years 2024 and 2023, respectively. As of March 31, 2024 and 2023, unrecognized tax benefits, including interest and penalties, that have not been recorded in the financial statements amounted to $24,853 and $28,692, respectively. Of these amounts, inclusive of interest and penalties,$20,327 and $24,419, for fiscal years 2024 and 2023, respectively, would affect the effective tax rate. It is expected that an $716 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, 2024 2023 2022 Unrecognized tax benefits—beginning of period $ 22,719 $ 19,455 $ 18,071 Gross increases—tax positions in prior periods — — 304 Gross decreases—tax positions in prior periods — — — Gross increases—current-period tax positions 2,636 5,258 6,581 Gross decreases—current-period tax positions — — — Settlements — — — Lapse of statute of limitations (6,903) (1,994) (5,501) Unrecognized tax benefits—end of period $ 18,452 $ 22,719 $ 19,455 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, 2024 and 2023, $2,708 and $2,462 of income tax-related interest and $3,691 and $3,509 of penalties were included in accrued income taxes, respectively. As of March 31, 2024, 2023, and 2022, our current tax provision included $2,635, $2,503, and $2,128, respectively, of expense related to interest and penalties. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2024 | |
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 $176,314. See Note 3, Leases . As of March 31, 2024, we have known purchase commitments of $146,733 wh ich are d efined 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 $14,612 as of March 31, 2024. 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 position, 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 position, or cash flows. We have recorded a liability for environmental remediation of $280 as of March 31, 2024 and $717 as of March 31, 2023. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024, 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, 2024, 251,349 common shares remain available to be granted. Performance Based Awards We currently grant two types of stock-based performance based awards: 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 performance against specified metrics over a two 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 90,847 performance awards during fiscal year 2024. We granted 258,538 performance awards with a TSR modifier during fiscal year 2024. There were 6,763 performance awards earned during fiscal year 2024. There were 87,124 performance awards with a TSR modifier shares earned during fiscal year 2024 that were subject to a three-year performance period related to certain performance goals. Based on our performance, participants earned 100% of the performance awards granted to them and the TSR modifier was not applicable. The weighted average grant date fair value for performance based award grants was $27.42, $29.66, and $37.88 in fiscal years 2024, 2023, and 2022, respectively. A summary of our performance based awards for fiscal year 2024 is presented below: Shares Weighted average grant date fair value Nonvested as of March 31, 2023 242,904 $ 35.72 Cancelled/forfeited (74,888) 30.27 Earned (1) (93,887) 39.88 Awarded 349,385 27.42 Nonvested as of March 31, 2024 423,514 $ 29.25 (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. As of March 31, 2024, the unamortized compensation expense related to these awards was $5,840, which is expected to be recognized over a weighted-average period of 1.8 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 2024 is presented below: Shares Weighted average exercise price Weighted average remaining contractual life (in years) Aggregate intrinsic value Outstanding and exercisable as of March 31,2023 45,270 $ 17.86 4.1 $ 536 Forfeited/expired (11,056) 35.86 Exercised (10,915) 14.92 Outstanding and exercisable as of March 31,2024 23,299 $ 10.71 4.7 $ 514 There were 10,915, 321,260, and 28,921 options exercised during fiscal years 2024, 2023, and 2022, respectively. The total intrinsic value of options exercised during fiscal years 2024, 2023, and 2022 was $143, $4,828, and $1,102, respectively. Cash received from options exercised during fiscal years 2024, 2023, and 2022 was $162, $4,213, and $533, respectively. As of March 31, 2024, 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 958,618 shares in fiscal year 2024. The weighted average grant date fair value of restricted stock units granted was $30.66, $27.82, and $34.58 in fiscal years 2024, 2023, and 2022, respectively. Restricted stock units vest over periods generally ranging from one A summary of our restricted stock unit award activity for fiscal year 2024 is presented below. Shares Weighted average grant date fair value Nonvested as of March 31, 2023 741,023 $ 27.43 Granted 958,618 30.66 Vested (423,418) 26.41 Forfeited (46,595) 29.43 Nonvested as of March 31, 2024 1,229,628 $ 30.29 As of March 31, 2024, the total unrecognized compensation cost related to non-vested restricted stock units was $29,943 and is expected to be realized over a weighted average period of 1.9 years. Total pre-tax stock-based compensation expense of $11,450, $28,119, and $27,407 was recognized during fiscal years 2024, 2023, and 2022, respectively. The total income tax benefit recognized in the consolidated statements of comprehensive income (loss) for share-based compensation was $2,023, $6,020, and $4,882 during fiscal years 2024, 2023, and 2022, respectively. Share Repurchases Repurchases of shares during fiscal years 2024, 2023, and 2022 were 0, 0, and 2,981, respectively. 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, 2024 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Operating Segment Information We are currently organized into four operating and reportable segments. During the third fiscal quarter of 2024, we changed the name of the formerly named Outdoor Products reportable segment to Revelyst and our formerly named Sporting Products reportable segment to The Kinetic Group. During the fourth fiscal quarter of 2024, we reorganized the former Revelyst reportable segment into three reportable segments, Revelyst Outdoor Performance, Revelyst Adventure Sports, and Revelyst Precision Sports Technology based on brand portfolios. Our segment reporting is based upon the "management approach," i.e., how we organize operating segments for which separate financial information is (1) available and (2) evaluated regularly by the Chief Operating Decision Maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our Chief Operating Decision Makers (CODMs) are our two Co-Chief Executive Officers. • The Kinetic Group consists of our ammunition brands. The primary products of this segment include ammunition used for training, hunting, target shooting and personal protection. • Revelyst Outdoor Performance primarily consists of our outdoor cooking, fishing, outdoor accessories and technical gear and apparel brands. The primary products of this segment include waders, sportswear, outerwear, footwear and fishing tools and accessories, performance optics, outdoor accessories and outdoor cooking equipment. • Revelyst Adventure Sports primarily consists of our protective gear and apparel, footwear, hydration and e-mobility brands. The primary products of this segment include motocross, mountain biking, cycling, and snow sports protection and accessories, as well as bike hydration packs and water bottles, and e-bikes. • Revelyst Precision Sports Technology primarily consists of our golf technology brands. The primary products of this segment include high-performance golf GPS devices, laser rangefinders and launch monitors. Our CODMs rely on internal management reporting that analyzes our segment operating income. 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. As segment assets are not reported to or used by the CODMs to measure business performance or allocate resources, total segment assets are not presented below. No customer contributed more than 10% of sales during fiscal years 2024, 2023, and 2022. Our sales to foreign customers were $476,686, $530,197, and $435,175 in fiscal years 2024, 2023, and 2022, respectively. During fiscal year 2024, approximately 30%, 10%, 50%, 10% of these sales were in The Kinetic Group, Revelyst Outdoor Performance, Revelyst Adventure Sports, and Revelyst Precision Sports Technology, respectively. Sales to no individual country outside the U.S. accounted for more than 5% of our sales in fiscal years 2024, 2023, and 2022. The following table contains information used to evaluate our operating segments for the periods presented below: Fiscal year ended March 31, 2024 The Kinetic Group Revelyst Outdoor Performance Revelyst Adventure Sports Revelyst Precision Sports Technology Reportable segment totals Corporate and other reconciling items (a) Total Sales, net $ 1,452,627 $ 450,064 $ 607,518 $ 235,854 $ 2,746,063 $ — $ 2,746,063 Gross profit 485,763 107,511 161,674 104,037 858,985 — 858,985 Operating income $ 389,960 $ (2,590) $ (7,864) $ 39,061 $ 418,567 $ (368,114) $ 50,453 Other (expense) income, net (1,988) Interest expense, net (62,949) Income (loss) before income taxes $ (14,484) Capital expenditures $ 12,192 $ 3,024 $ 8,831 $ 1,267 $ 25,314 $ 1,998 $ 27,312 Depreciation and amortization 25,813 22,844 36,513 10,320 95,490 3,801 99,291 Fiscal year ended March 31, 2023 The Kinetic Group (b) Revelyst Outdoor Performance (b) Revelyst Adventure Sports (b) Revelyst Precision Sports Technology Reportable segment totals Corporate and other reconciling items (a) Total Sales, net $ 1,757,932 $ 460,800 $ 625,250 $ 235,825 $ 3,079,807 $ — $ 3,079,807 Gross profit 653,516 105,446 168,878 112,590 1,040,430 (9,533) 1,030,897 Operating income $ 552,232 $ (825) $ 7,305 $ 55,943 $ 614,655 $ (506,800) $ 107,855 Other (expense) income, net 2,124 Interest expense, net (59,317) Income (loss) before income taxes $ 50,662 Capital expenditures $ 25,886 $ 4,054 $ 8,491 $ 662 $ 39,093 $ 2,407 $ 41,500 Depreciation and amortization 25,087 22,299 30,371 10,159 87,916 4,173 92,089 Fiscal year ended March 31, 2022 The Kinetic Group (b) Revelyst Outdoor Performance (b) Revelyst Adventure Sports (b) Revelyst Precision Sports Technology Reportable segment totals Corporate and other reconciling items (a) Total Sales, net $ 1,737,891 $ 564,144 $ 556,521 $ 186,065 $ 3,044,621 $ — $ 3,044,621 Gross profit 712,160 154,565 156,315 88,567 1,111,607 (2,375) 1,109,232 Operating income $ 600,415 $ 58,531 $ 54,527 $ 51,436 $ 764,909 $ (118,687) $ 646,222 Other (expense) income, net — Interest expense, net (25,264) Income (loss) before income taxes $ 620,958 Capital expenditures $ 25,637 $ 5,699 $ 7,039 $ 152 $ 38,527 $ 3,907 $ 42,434 Depreciation and amortization 25,602 17,705 18,802 5,520 67,629 4,711 72,340 (a) includes corporate general and administrative expenses of $140,861, $126,185, and $107,325 for the fiscal years 2024, 2023, and 2022, respectively, plus other non-recurring costs that are not allocated to the segments in order to present comparable results as presented to the CODMs. Reconciling items in fiscal year 2024 included goodwill and intangibles impairment of $220,070, post-acquisition compensation expense of $1,328 allocated from the businesses acquired, and change in the estimated fair value of the contingent consideration payable of $5,855. Reconciling items in fiscal year 2023 included goodwill and intangibles impairment of $374,355, inventory fair value step-up expenses related to the Fox Racing and Simms Fishing acquisitions of $8,079, restructuring expense of $11,620, transition expense of $2,941, post-acquisition compensation expense of $11,130 allocated from the businesses acquired, and non-cash income for the change in the estimated fair value of the contingent consideration payable of $(27,510) related to acquisitions. 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. (b) During the fourth quarter of fiscal year 2024, we modified our reportable segments. Accordingly, prior comparative periods have been restated to conform to the change. Sales, net exclude all intercompany sales between our reportable segments, which were not material for any of the fiscal years presented. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn May 1, 2024, we completed the divestiture of the RCBS brand. This business was part of The Revelyst Outdoor Performance reportable segment. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Insider Trading Policies and Pr
Insider Trading Policies and Procedures | 12 Months Ended |
Mar. 31, 2024 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Adopted | true |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. 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. |
Principles of Consolidation | Principles of Consolidation. |
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. |
Research and Development Costs | Research and Development Costs. |
Selling, General and Administrative Expense | Selling, General, and Administrative Expense. |
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. Advertising costs totaled $58,259 |
Cash Equivalents | Cash Equivalents. |
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. |
Warranty Costs | Warranty Costs. We provide consumer warranties against manufacturing defects on certain products 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. |
Goodwill | 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 during the fourth quarter, and concluded there were no indicators of impairment. See Note 11, Goodwill and Intangible Assets , for discussion and details. During the third quarter of fiscal year 2024, as a result of an increasingly challenging economic environment for consumers due to higher interest rate expectations continuing, and other factors affecting the market for our products, we reduced our projections for fiscal year 2024 and beyond for the majority of our reporting units within the former Revelyst reportable segment. See Note 11, Goodwill and Intangible Assets and Note 19, Operating Segment Information , for further information on changes to our reporting units and reportable segments during the fourth quarter of fiscal year 2024. As a result of a downward revision of forecasted cash flows due to lower volume and profitability expectations, combined with the decline in our stock price in the third fiscal quarter, we concluded that triggering events had occurred potentially indicating that the fair values of certain reporting units within our former Revelyst reportable segment were less than their carrying values. Based on these events, we completed an interim quantitative goodwill impairment analysis and recognized goodwill impairment losses of $161,714 related to reporting units within our former Revelyst reportable segment, which are included in "Impairment of goodwill and intangibles" on our consolidated statements of comprehensive income (loss) for the fiscal year 2024. See Note 11, Goodwill and Intangible Assets , for further information. |
Indefinite-Lived Intangible Assets | 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 during the fourth quarter, and concluded there were no indicators of impairment on our indefinite-lived intangibles. See Note 11, Goodwill and Intangible Assets , for discussion and details. In conjunction with our interim quantitative goodwill impairment analysis, we performed a fair value analysis on our indefinite-lived trademarks and trade names within the former Revelyst reportable segment, which resulted in impairment losses of $50,300, related to indefinite-lived intangible assets. These losses are included in "Impairment of goodwill and intangibles" on our consolidated statements of comprehensive income (loss) for the fiscal year of 2024. We also performed a step zero analysis on The Kinetic Group indefinite-lived trade names during the third fiscal quarter of 2024. See Note 11, Goodwill and Intangible Assets , for further information. We calculated the fair value of our indefinite-lived intangibles 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. We estimated the future revenue for the related brands and technology, the appropriate royalty rate, and the weighted average cost of capital. We based our fair values and estimates on assumptions we believed to be reasonable, but which are unpredictable and inherently uncertain. Our assumptions used to develop the discounted cash flow analysis and the relief-from-royalty calculation require us to make significant estimates. 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, it is possible that the estimated fair value of certain reporting units or trade names 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 trade names for impairment indicators and update assumptions used in the most recent calculation of the estimated fair value of a reporting unit or trade names as appropriate. |
Amortizing Intangible Assets and Long-Lived Assets | Amortizing Intangible Assets and Long-Lived Assets. Our long-lived assets consist primarily of property, plant, and equipment, amortizing right-of-use assets related to our operating leases and amortizing costs related to cloud computing arrangements. Our primary identifiable intangible assets include trademarks and trade names, patented technology, and customer relationships. 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. In conjunction with our interim quantitative goodwill impairment analysis, we performed recoverability tests of our long-lived assets, including amortizing intangible assets, by comparing the net book value of our long-lived assets or asset groups, to the future undiscounted net cash flows attributable to such assets. Based on the results of the recoverability test, we determined that the fair value of certain definite lived intangibles related to trade names and customer relationship within our former Outdoor Cooking reporting unit were less than their carrying value. The fair value of these intangibles was determined using the cost approach. As a result, we recorded impairment charges totaling $6,798 related to amortizing intangible assets, which are included in "Impairment of goodwill and intangibles" on our consolidated statements of comprehensive income (loss) for the fiscal year of 2024. See Note 11, Goodwill and Intangible Assets , for further information. |
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, and 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 , for additional information. |
Derivatives and Hedging | Derivatives and Hedging. We mitigate the impact of variable interest rates, foreign currency exchange rates, and commodity prices affecting the cost of raw materials with interest rate swaps, foreign currency, 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. We may use derivatives to hedge certain variable interest rates, foreign currency exchange rates, and commodity price risks, but do not use derivative financial instruments for trading or other speculative purposes. We utilize counterparties for our derivative instruments that we believe are creditworthy at the time the transactions are entered into and closely monitor the credit ratings of these counterparties. 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 is 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, for further information. |
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 18, Stockholders' Equity , provide for the grant of various types of stock-based incentive awards, including performance awards, performance awards with a total shareholder return (TSR) modifier, 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. |
Translation of Foreign Currencies | Translation of Foreign Currencies. |
Other (Expense) Income, Net | Other (Expense) Income, Net. Other (expense) income, net primarily includes gains and losses on foreign currency forward contracts and foreign currency transactions. See Note 4, Derivative Financial Instruments , for additional information. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss. The components of AOCL, net of income taxes, are as follows: March 31, 2024 2023 Derivatives $ (15) $ (3,543) Pension and other postretirement benefit liabilities (68,722) (71,449) Cumulative translation adjustment (5,611) (5,810) Total accumulated other comprehensive loss $ (74,348) $ (80,802) 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, 2024 2023 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 $ (3,543) $ (71,449) $ (5,810) $ (80,802) $ (356) $ (71,075) $ (5,248) $ (76,679) Change in fair value of derivatives 2,607 — — 2,607 (4,829) — — (4,829) Income tax impact on derivative instruments (1,104) — — (1,104) 1,707 — — 1,707 Net loss (gain) reclassified from AOCL 2,025 — — 2,025 (65) — — (65) Net actuarial losses reclassified from AOCL (1) — 2,248 — 2,248 — 2,776 — 2,776 Valuation adjustment for pension and postretirement benefit plans (1) — 479 — 479 — (3,150) — (3,150) Net change in cumulative translation adjustment — — 199 199 — — (562) (562) End of year AOCL $ (15) $ (68,722) $ (5,611) $ (74,348) $ (3,543) $ (71,449) $ (5,810) $ (80,802) (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 15, Employee Benefit Plans |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures .” This ASU improves financial reporting by requiring disclosure of incremental segment information. The new guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU 2023-07 on our consolidated financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which improves the transparency of income tax disclosures by requiring companies to (1) disclose consistent categories and greater disaggregation of information in the effective rate reconciliation and (2) provide information on income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, although early adoption is permitted. The guidance should be applied on a prospective basis with the option to apply the standard retrospectively. We are currently evaluating the impact of adopting this ASU 2023-09 on our consolidated financial statements and disclosures. Accounting Standards Adopted During this Fiscal Year —In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations , which requires a buyer in a supplier finance program to disclose qualitative and quantitative information about its program to allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The amendments in ASU 2022-04 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with the exception for the amendment on roll-forward information, which is effective for fiscal years beginning after December 15, 2023. The guidance should be applied retrospectively, except for the amendment on roll-forward information, which should be applied prospectively. This ASU was effective for us in the first quarter of fiscal year 2024, with the exception of the amendment on roll-forward information, which will be effective for us in our Form 10-K for fiscal year 2025. We adopted this ASU during the first quarter of fiscal year 2024 and the adoption did not have an impact on our consolidated financial statement disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Derivatives $ (15) $ (3,543) Pension and other postretirement benefit liabilities (68,722) (71,449) Cumulative translation adjustment (5,611) (5,810) Total accumulated other comprehensive loss $ (74,348) $ (80,802) |
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, 2024 2023 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 $ (3,543) $ (71,449) $ (5,810) $ (80,802) $ (356) $ (71,075) $ (5,248) $ (76,679) Change in fair value of derivatives 2,607 — — 2,607 (4,829) — — (4,829) Income tax impact on derivative instruments (1,104) — — (1,104) 1,707 — — 1,707 Net loss (gain) reclassified from AOCL 2,025 — — 2,025 (65) — — (65) Net actuarial losses reclassified from AOCL (1) — 2,248 — 2,248 — 2,776 — 2,776 Valuation adjustment for pension and postretirement benefit plans (1) — 479 — 479 — (3,150) — (3,150) Net change in cumulative translation adjustment — — 199 199 — — (562) (562) End of year AOCL $ (15) $ (68,722) $ (5,611) $ (74,348) $ (3,543) $ (71,449) $ (5,810) $ (80,802) (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 15, Employee Benefit Plans |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Long-Term Contingent Consideration Liability | Following is a summary of our contingent consideration liability Level 3 activity during fiscal year 2024: Balance, March 31, 2023 $ 20,274 Increase in fair value 5,855 Payments made (22,573) Balance, March 31, 2024 $ 3,556 Contingent consideration liabilities are reported under the following captions in the consolidated balance sheets: March 31, 2024 2023 Other current liabilities $ 750 $ 8,586 Other long-term liabilities 2,806 11,688 Total $ 3,556 $ 20,274 |
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, 2024 2023 Carrying Fair Carrying Fair Fixed rate debt (1) $ 500,000 $ 500,865 $ 500,000 $ 404,000 Variable rate debt (2) 220,000 220,000 560,000 560,000 (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 14, 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, 2024. 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 14, Long-term Debt, for additional information on our credit facilities, including related certain risks and uncertainties. During the third fiscal quarter of 2024, we recognized impairment losses related to our goodwill and indefinite-lived intangible assets. The fair value of these assets are categorized within Level 3 of the fair value hierarchy. See Note 1, Significant Accounting Policies, and Note 11, Goodwill and Intangible Assets , for discussion and details of the impairment losses recorded in the third fiscal quarter of 2024. We periodically evaluate the recoverability of the carrying amount of our long-lived assets, including amortizing intangible 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. 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, and Note 11, Goodwill and Intangible Assets , for discussion of an identified trigger event and impairment expense related to certain amortizing intangibles during third fiscal quarter of 2024. See Note 3, Leases , for discussion of right of use asset (ROU) impairments during the fiscal year. Significant assumptions were used to estimate fair value of long-lived assets, which were categorized within Level 3 of the fair value hierarchy. See Note 13, Restructuring, for discussion of long-lived asset impairments related to our restructuring plan during fiscal year 2024. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Assets: Operating lease assets Operating lease assets $ 107,007 $ 106,828 Liabilities: Current: Operating lease liabilities Other current liabilities $ 14,673 $ 16,351 Long-term: Operating lease liabilities Long-term operating lease liabilities 105,699 103,313 Total lease liabilities $ 120,372 $ 119,664 |
Schedule of lease cost and supplemental cash flow information | The components of lease expense are recorded to cost of sales and selling, general, and administrative expenses in the consolidated statements of comprehensive income (loss). The components of lease expense were as follows: Years ended March 31, 2024 2023 Fixed operating lease costs (1) $ 27,212 $ 28,128 Variable operating lease costs 4,635 3,200 Operating and sublease income (893) (602) Net lease costs $ 30,954 $ 30,726 (1) Includes short-term leases, which are immaterial. The weighted average remaining lease term and weighted average discount rate is as follows: March 31, 2024 2023 Weighted average remaining lease term (years): Operating leases 8.82 9.71 Weighted average discount rate: Operating leases 8.64 % 8.43 % Supplemental cash flow information related to leases is as follows: Years ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 26,817 $ 22,760 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 22,045 $ 35,046 ROU asset re-measurement (5,747) 10,237 |
Schedule of future minimum lease payments | The approximate future minimum lease payments under operating leases were as follows: Fiscal year 2025 $ 24,245 Fiscal year 2026 23,457 Fiscal year 2027 21,064 Fiscal year 2028 18,336 Fiscal year 2029 16,345 Thereafter 72,867 Total lease payments 176,314 Less imputed interest (55,942) Present value of lease liabilities $ 120,372 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | As of March 31, 2024, we had the following interest rate swaps outstanding: Notional Fair value Pay fixed Receive floating Maturity date Non-amortizing swap $ 50,000 $ 73 4.491% 5.324% Feb 2026 Non-amortizing swap 25,000 (60) 4.650% 5.321% Mar 2026 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables summarize the fair value of our derivative instruments as well as the location of the asset and/or liability on the consolidated balance sheets: Asset derivatives March 31, Derivatives not designated as hedging instruments Balance sheet location 2024 2023 Foreign currency forward contracts Other current assets $ — $ 91 Total $ — $ 91 Asset (Liability) derivatives March 31, Derivatives designated as cash flow hedging instruments Balance sheet location 2024 2023 Interest rate swap contract Deferred charges and other non-current assets, net $ 13 $ — Foreign currency forward contracts Other current liabilities (4) (3,252) Interest rate swap contract Other long-term liabilities — (1,760) Total $ 9 $ (5,012) |
Derivative Instruments, Gain (Loss) | The following tables summarize the net effect of all cash flow hedges for each of our derivative contracts on the consolidated financial statements: Gain (loss) recognized in other comprehensive income Years ended March 31, Derivatives designated as cash flow hedging instruments: 2024 2023 2022 Foreign currency forward contracts $ 199 $ (3,782) $ — Lead forward contracts 115 713 — Interest rate swap contracts 2,293 (1,760) — Total gain (loss) $ 2,607 $ (4,829) $ — Gain (loss) reclassified from other comprehensive income into earnings Years ended March 31, Derivatives designated as cash flow hedging instruments: Location 2024 2023 2022 Foreign currency forward contracts Cost of sales $ (1,349) $ (588) $ — Foreign currency forward contracts Other income (expense), net (1,642) — — Lead forward contracts Cost of sales 446 653 — Interest rate swap contracts Interest expense, net 520 — — Total gain (loss) $ (2,025) $ 65 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 2022 Numerator: Net income (loss) $ (5,505) $ (9,718) $ 473,226 Denominator: Weighted-average number of common shares outstanding, basic 57,946 56,600 57,190 Dilutive effect of stock-based awards (1) — — 1,947 Diluted shares 57,946 56,600 59,137 Earnings (loss) per common share: Basic $ (0.10) $ (0.17) $ 8.27 Diluted $ (0.10) $ (0.17) $ 8.00 (1) Due to the loss from continuing operations for the fiscal year ended March 31, 2024 and 2023, there are no common shares added to calculate dilutive EPS because the effect would be anti-dilutive. Potentially dilutive securities of 300 and 1,504 were excluded from diluted EPS in fiscal years 2024 and 2023, respectively, as we had a net loss. There were no potentially dilutive securities, which were not included in the computation of diluted earnings per share, because either the effect would have been anti-dilutive, or the options’ exercise prices were greater than the average market price of the common stock, for the fiscal year ended March 31, 2022. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Fox Racing purchase price allocation: August 5, 2022 Cash consideration to the Seller $ 564,134 Fair value of contingent consideration payable 11,400 Total estimated purchase consideration $ 575,534 Fair value of assets acquired: Accounts receivable $ 39,174 Inventories 96,142 Intangible assets 255,200 Property, plant, and equipment 23,570 Operating lease assets 16,078 Other current assets 17,145 Other long-term assets 5,347 Total assets 452,656 Fair value of liabilities assumed: Accounts payable 18,584 Long-term operating lease liabilities 11,971 Deferred income taxes 55,488 Other liabilities 39,292 Other long-term liabilities 41 Total liabilities 125,376 Net assets acquired 327,280 Goodwill $ 248,254 Foresight 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 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | Value Useful life (years) Tradenames $ 106,200 Indefinite Customer relationships 149,000 5 to 15 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 Fox Racing acquisition had occurred on April 1, 2021: Years ended March 31, 2023 2022 Sales, net $ 3,185,662 $ 3,344,338 Net income (loss) (6,930) 433,199 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 (loss) 515,345 268,547 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments | The unaudited supplemental pro forma data above includes the following significant non-recurring adjustments to net income (loss) to account for certain costs which would have been incurred if the Fox Racing acquisition had been completed on April 1, 2021: Years ended March 31, 2023 2022 Fees for advisory, legal, and accounting services (1) $ (6,064) $ 6,064 Inventory step-up, net (2) (7,544) 7,544 Interest (3) 10,627 30,406 Depreciation (4) 969 2,482 Amortization (5) 4,245 12,257 Management Fees (6) (530) (1,413) Income tax provision (benefit) (7) (910) (13,260) (1) During the fiscal year ended March 31, 2023, we incurred a total of $6,064 in acquisition related costs, including legal and other professional fees, all of which were reported in selling, general, and administrative expense in the consolidated statements of comprehensive income (loss). This adjustment is to show the results as if those fees were incurred during the first quarter of fiscal year 2022. (2) Adjustment reflects the increased cost of goods sold expense resulting from the fair value step-up in inventory, which was expensed over inventory turns. (3) Adjustment for the estimated interest expense and debt issuance amortization expense on $580,000 in borrowings from Vista's 2022 ABL Revolving Credit Facility and 2022 Term Loan, used to finance the acquisition of Fox Racing. The interest rate assumed for purposes of preparing this pro forma financial information is 5.58%. This rate is the weighted average interest rate for our borrowings under the 2022 ABL Revolving Credit Facility and 2022 Term Loan during the quarter of the acquisition. (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) Represents an adjustment for management fees historically charged by the previous owner of Fox Racing under the terms of their management agreement. (7) Income tax effect of the adjustments made at a blended federal, state, and international statutory rate adjusted for any non-deductible acquisition costs. The unaudited supplemental pro forma data above includes the following significant non-recurring adjustments to net income (loss): 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 and 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 (loss). 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 valua tion allowance. |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables | Net receivables are summarized as follows: March 31, 2024 2023 Trade receivables $ 357,672 $ 349,424 Other receivables 17,585 8,899 Less: allowance for estimated credit losses and discounts (19,354) (18,950) Net receivables $ 355,903 $ 339,373 |
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, 2022 $ 14,510 Provision for credit losses 2,289 Write-off of uncollectible amounts, net of recoveries (259) Purchase accounting (Note 7) 2,410 Balance, March 31, 2023 18,950 Provision for credit losses 1,915 Write-off of uncollectible amounts, net of recoveries (1,511) Balance, March 31, 2024 $ 19,354 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of classification of inventories | Net inventories consist of the following: March 31, 2024 2023 Raw materials $ 179,308 $ 199,225 Work in process 57,093 63,652 Finished goods 373,598 447,020 Net inventories $ 609,999 $ 709,897 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant, and equipment consists of the following: March 31, 2024 2023 Land $ 13,301 $ 13,276 Buildings and improvements 108,753 108,377 Machinery and equipment 516,337 498,266 Property not yet in service 15,357 22,639 Gross property, plant, and equipment 653,748 642,558 Less: accumulated depreciation (451,884) (414,311) Net property, plant, and equipment $ 201,864 $ 228,247 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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: The Kinetic Group Revelyst Outdoor Performance Revelyst Adventure Sports Revelyst Precision Sports Technology Total Balance, March 31, 2022 $ 86,105 $ 39,973 $ 12,349 $ 343,430 $ 481,857 Acquisitions — 68,353 248,254 — 316,607 Impairment — (72,152) (260,603) — (332,755) Balance, March 31, 2023 86,105 36,174 — 343,430 465,709 Acquisitions — — — 14,256 14,256 Impairment — (36,174) — (125,540) (161,714) Balance, March 31, 2024 $ 86,105 $ — $ — $ 232,146 $ 318,251 |
Schedule of amortizing assets | Net intangibles consisted of the following: March 31, 2024 2023 Gross Accumulated Total Gross Accumulated Total Trade names $ 113,636 $ (37,646) $ 75,990 $ 113,915 $ (30,848) $ 83,067 Patented technology 37,604 (19,252) 18,352 36,854 (16,313) 20,541 Customer relationships and other 523,059 (190,068) 332,991 530,237 (151,272) 378,965 Total 674,299 (246,966) 427,333 681,006 (198,433) 482,573 Non-amortizing trade names 200,303 — 200,303 250,603 — 250,603 Net intangible assets $ 874,602 $ (246,966) $ 627,636 $ 931,609 $ (198,433) $ 733,176 |
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 2025 $ 49,991 Fiscal year 2026 46,981 Fiscal year 2027 45,531 Fiscal year 2028 40,361 Fiscal year 2029 33,871 Thereafter 210,598 Total $ 427,333 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of major categories of other current and long-term accrued liabilities | The major categories of current liabilities are as follows: March 31, 2024 2023 Warranty liability $ 8,083 $ 5,441 Accrual for in-transit inventory 5,570 9,810 Operating lease liabilities 14,673 16,351 Contingent consideration 750 8,586 Other 100,276 106,189 Total other current liabilities $ 129,352 $ 146,377 |
Schedule of reconciliation of the changes in product warranty liability | The following is a reconciliation of the changes in our combined current and long-term product warranty liability during the periods presented: Balance as of March 31, 2022 $ 9,073 Payments made (4,676) Warranties issued 4,827 Changes related to pre-existing warranties and other adjustments 328 Balance as of March 31, 2023 9,552 Payments made (6,834) Warranties issued 12,119 Changes related to pre-existing warranties and other adjustments (3,785) Balance as of March 31, 2024 $ 11,052 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following tables summarize restructuring charges recorded as a result of our restructuring programs for the periods presented: Years ended March 31, Incurred since GEAR Up restructuring costs 2024 2023 inception Employee severance and related expenses $ 6,056 $ — $ 6,056 Professional fees 1,720 — 1,720 Right-of-use asset impairments 129 — 129 Impairment on technology assets 306 — 306 Other 68 — 68 Total $ 8,279 $ — $ 8,279 Years ended March 31, Incurred since Cost reduction and earnings improvement program 2024 2023 inception Other asset impairments $ — $ 7,628 $ 7,628 Employee severance and related expenses 614 5,225 5,839 Right-of-use asset impairments 3,825 1,812 5,637 Impairment on technology assets — 1,003 1,003 Contract termination costs 1,165 — 1,165 Total $ 5,604 $ 15,668 $ 21,272 |
Schedule of Restructuring Reserve by Type of Cost | The tables below present a roll forward of our accruals or (deposits) related to GEAR Up, which are included in Accounts payable, Other current liabilities, or Other current assets: GEAR Up Balance as of March 31, 2023 Charges Payments Balance as of March 31, 2024 Employee severance and related expenses $ — $ 6,056 $ (657) $ 5,399 Professional fees — 1,720 (2,688) (968) Other — 68 (61) 7 Total $ — $ 7,844 $ (3,406) $ 4,438 Cost reduction and earnings improvement program Balance as of March 31, 2023 Charges Payments Balance as of March 31, 2024 Employee severance and related expenses $ 5,225 $ 614 $ (4,835) $ 1,004 Total $ 5,225 $ 614 $ (4,835) $ 1,004 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, including the current portion | March 31, 2024 2023 2022 ABL Revolving Credit Facility $ 220,000 $ 355,000 2022 Term Loan — 205,000 Total Principal Amount of Credit Agreements 220,000 560,000 4.5% Senior Notes 500,000 500,000 Total Principal Amount of Long-Term Debt 720,000 1,060,000 Less: unamortized deferred financing costs (2,762) (10,342) Carrying amount of long-term debt 717,238 1,049,658 Less: current portion — (65,000) Carrying amount of long-term debt, excluding current portion $ 717,238 $ 984,658 |
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, 2024: Fiscal year 2026 $ 220,000 Fiscal year 2029 500,000 Total $ 720,000 |
Schedule of Interest Rate Derivatives | As of March 31, 2024, we had the following interest rate swaps outstanding: Notional Fair value Pay fixed Receive floating Maturity date Non-amortizing swap $ 50,000 $ 73 4.491% 5.324% Feb 2026 Non-amortizing swap 25,000 (60) 4.650% 5.321% Mar 2026 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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 2025 $ 14,854 Fiscal year 2026 13,488 Fiscal year 2027 13,212 Fiscal year 2028 13,113 Fiscal year 2029 13,439 Fiscal years 2030 through 2034 61,959 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 2022 Current: U.S. $ (16,081) $ 44,494 $ 619,464 Non-U.S. 1,597 6,168 1,494 Income (loss) before income taxes $ (14,484) $ 50,662 $ 620,958 |
Schedule of income tax provision | Our income tax (provision) benefit consists of: Years ended March 31, 2024 2023 2022 Current: Federal $ (39,516) $ (94,041) $ (107,429) State (6,467) (9,263) (28,119) Non-US (836) (324) (739) Deferred: Federal 49,592 42,445 (10,327) State 5,991 (253) (1,483) Non-US 215 1,056 365 Income tax benefit (provision) $ 8,979 $ (60,380) $ (147,732) |
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, 2024 2023 2022 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal impact (2.5) % 14.2 % 3.9 % Foreign derived intangible income 37.7 % (13.1) % (1.0) % Nondeductible goodwill impairment (30.2) % 110.1 % — % Nondeductible earnouts (15.3) % (7.5) % 0.2 % Change in tax contingency 47.0 % (1.4) % (0.7) % Other 4.3 % (4.1) % 0.4 % Effective income tax rate 62.0 % 119.2 % 23.8 % |
Schedule of components of deferred tax assets and liabilities | As of March 31, 2024 and 2023, the components of deferred tax assets and liabilities were as follows: March 31, 2024 2023 Deferred tax assets: Inventories $ 19,123 $ 18,628 Retirement benefits 4,628 6,228 Accounts receivable 6,503 8,245 Accruals for employee benefits 6,497 9,063 Other reserves 4,146 3,597 Loss and credit carryforwards 6,679 5,368 Capital loss carryforward 19,472 19,390 Operating lease liabilities 22,230 25,922 Other 13,386 9,511 Total deferred tax assets 102,664 105,952 Valuation allowance (21,605) (21,382) Total net deferred assets 81,059 84,570 Deferred tax liabilities: Intangible assets (47,428) (86,956) Property, plant, and equipment (273) (13,970) Operating lease assets (20,463) (24,393) Total deferred tax liabilities (68,164) (125,319) Net deferred income tax asset (liability) $ 12,895 $ (40,749) |
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, 2024 2023 2022 Unrecognized tax benefits—beginning of period $ 22,719 $ 19,455 $ 18,071 Gross increases—tax positions in prior periods — — 304 Gross decreases—tax positions in prior periods — — — Gross increases—current-period tax positions 2,636 5,258 6,581 Gross decreases—current-period tax positions — — — Settlements — — — Lapse of statute of limitations (6,903) (1,994) (5,501) Unrecognized tax benefits—end of period $ 18,452 $ 22,719 $ 19,455 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of performance based awards activity | A summary of our performance based awards for fiscal year 2024 is presented below: Shares Weighted average grant date fair value Nonvested as of March 31, 2023 242,904 $ 35.72 Cancelled/forfeited (74,888) 30.27 Earned (1) (93,887) 39.88 Awarded 349,385 27.42 Nonvested as of March 31, 2024 423,514 $ 29.25 (1) |
Schedule of stock option activity | A summary of our stock option activity for fiscal year 2024 is presented below: Shares Weighted average exercise price Weighted average remaining contractual life (in years) Aggregate intrinsic value Outstanding and exercisable as of March 31,2023 45,270 $ 17.86 4.1 $ 536 Forfeited/expired (11,056) 35.86 Exercised (10,915) 14.92 Outstanding and exercisable as of March 31,2024 23,299 $ 10.71 4.7 $ 514 |
Schedule of restricted stock unit award activity | A summary of our restricted stock unit award activity for fiscal year 2024 is presented below. Shares Weighted average grant date fair value Nonvested as of March 31, 2023 741,023 $ 27.43 Granted 958,618 30.66 Vested (423,418) 26.41 Forfeited (46,595) 29.43 Nonvested as of March 31, 2024 1,229,628 $ 30.29 |
Operating Segment Information (
Operating Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table contains information used to evaluate our operating segments for the periods presented below: Fiscal year ended March 31, 2024 The Kinetic Group Revelyst Outdoor Performance Revelyst Adventure Sports Revelyst Precision Sports Technology Reportable segment totals Corporate and other reconciling items (a) Total Sales, net $ 1,452,627 $ 450,064 $ 607,518 $ 235,854 $ 2,746,063 $ — $ 2,746,063 Gross profit 485,763 107,511 161,674 104,037 858,985 — 858,985 Operating income $ 389,960 $ (2,590) $ (7,864) $ 39,061 $ 418,567 $ (368,114) $ 50,453 Other (expense) income, net (1,988) Interest expense, net (62,949) Income (loss) before income taxes $ (14,484) Capital expenditures $ 12,192 $ 3,024 $ 8,831 $ 1,267 $ 25,314 $ 1,998 $ 27,312 Depreciation and amortization 25,813 22,844 36,513 10,320 95,490 3,801 99,291 Fiscal year ended March 31, 2023 The Kinetic Group (b) Revelyst Outdoor Performance (b) Revelyst Adventure Sports (b) Revelyst Precision Sports Technology Reportable segment totals Corporate and other reconciling items (a) Total Sales, net $ 1,757,932 $ 460,800 $ 625,250 $ 235,825 $ 3,079,807 $ — $ 3,079,807 Gross profit 653,516 105,446 168,878 112,590 1,040,430 (9,533) 1,030,897 Operating income $ 552,232 $ (825) $ 7,305 $ 55,943 $ 614,655 $ (506,800) $ 107,855 Other (expense) income, net 2,124 Interest expense, net (59,317) Income (loss) before income taxes $ 50,662 Capital expenditures $ 25,886 $ 4,054 $ 8,491 $ 662 $ 39,093 $ 2,407 $ 41,500 Depreciation and amortization 25,087 22,299 30,371 10,159 87,916 4,173 92,089 Fiscal year ended March 31, 2022 The Kinetic Group (b) Revelyst Outdoor Performance (b) Revelyst Adventure Sports (b) Revelyst Precision Sports Technology Reportable segment totals Corporate and other reconciling items (a) Total Sales, net $ 1,737,891 $ 564,144 $ 556,521 $ 186,065 $ 3,044,621 $ — $ 3,044,621 Gross profit 712,160 154,565 156,315 88,567 1,111,607 (2,375) 1,109,232 Operating income $ 600,415 $ 58,531 $ 54,527 $ 51,436 $ 764,909 $ (118,687) $ 646,222 Other (expense) income, net — Interest expense, net (25,264) Income (loss) before income taxes $ 620,958 Capital expenditures $ 25,637 $ 5,699 $ 7,039 $ 152 $ 38,527 $ 3,907 $ 42,434 Depreciation and amortization 25,602 17,705 18,802 5,520 67,629 4,711 72,340 (a) includes corporate general and administrative expenses of $140,861, $126,185, and $107,325 for the fiscal years 2024, 2023, and 2022, respectively, plus other non-recurring costs that are not allocated to the segments in order to present comparable results as presented to the CODMs. Reconciling items in fiscal year 2024 included goodwill and intangibles impairment of $220,070, post-acquisition compensation expense of $1,328 allocated from the businesses acquired, and change in the estimated fair value of the contingent consideration payable of $5,855. Reconciling items in fiscal year 2023 included goodwill and intangibles impairment of $374,355, inventory fair value step-up expenses related to the Fox Racing and Simms Fishing acquisitions of $8,079, restructuring expense of $11,620, transition expense of $2,941, post-acquisition compensation expense of $11,130 allocated from the businesses acquired, and non-cash income for the change in the estimated fair value of the contingent consideration payable of $(27,510) related to acquisitions. Reconciling items in fiscal year 2022 included fair value step-up in inventory of $2,375, and post-acquisition compensation expense of $8,987 allocated from businesses acquired. (b) During the fourth quarter of fiscal year 2024, we modified our reportable segments. Accordingly, prior comparative periods have been restated to conform to the change. Sales, net exclude all intercompany sales between our reportable segments, which were not material for any of the fiscal years presented. |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||
May 27, 2024 USD ($) $ / shares | Oct. 15, 2023 USD ($) $ / shares | Mar. 31, 2024 USD ($) numberOfCountriesWithSalesCustomers operating_segment $ / shares | Dec. 24, 2023 USD ($) | Mar. 31, 2024 USD ($) reportable_segment numberOfCountriesWithSalesCustomers $ / shares | Mar. 31, 2023 USD ($) $ / shares | Mar. 31, 2022 USD ($) $ / shares | |
Summary of Significant Accounting Policies [Line Items] | |||||||
Number of reportable segments | 4 | 4 | |||||
Number if countries in which entity operates | numberOfCountriesWithSalesCustomers | 100 | 100 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||
Advertising expense | $ 58,259,000 | $ 59,189,000 | $ 58,028,000 | ||||
Maximum term of original maturity to classify investments as cash equivalents (in months) | 3 months | ||||||
Impairment | $ (161,714,000) | (332,755,000) | |||||
Workers' compensation liability | $ 9,662,000 | $ 9,662,000 | 8,198,000 | ||||
Selling, general, and administrative | 540,076,000 | 504,478,000 | $ 434,273,000 | ||||
Fire | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Accruals for insurance recoveries | $ 3,242,000 | 3,242,000 | |||||
Impairment expense of damaged fixed assets | 4,242,000 | ||||||
Selling, general, and administrative | 1,000,000 | ||||||
Revelyst | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Impairment | (161,714,000) | ||||||
Impairment of indefinite-lived intangible assets | 50,300,000 | ||||||
Revelyst | Outdoor Cooking | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Impairment | $ (26,219,000) | ||||||
Impairment charges, amortizing intangible assets | 6,798,000 | ||||||
Sporting Products Reportable Segment | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Cash paid per acquiree share (in dollars per share) | $ / shares | $ 12.90 | ||||||
Sporting Products Reportable Segment | Subsequent Event | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Cash paid per acquiree share (in dollars per share) | $ / shares | $ 16 | ||||||
The Kinetic Group | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Enterprise value | $ 1,910,000,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||
Impairment | $ 0 | $ 0 | |||||
The Kinetic Group | Subsequent Event | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Enterprise value | $ 1,960,000,000 | ||||||
Minimum | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Product warranty term | one year | ||||||
Weighted average cost of capital (in percent) | 12.50% | 12.50% | 12.50% | 10.50% | |||
Minimum | Performance Shares | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Vesting period | 2 years | ||||||
Maximum | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Weighted average cost of capital (in percent) | 16% | 16% | 16% | 17% | |||
Maximum | Performance Shares | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Vesting period | 3 years |
Significant Accounting Polici_5
Significant Accounting Policies (Components of AOCL) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Accounting Policies [Abstract] | ||
Derivatives | $ (15) | $ (3,543) |
Pension and other postretirement benefit liabilities | (68,722) | (71,449) |
Cumulative translation adjustment | (5,611) | (5,810) |
Total accumulated other comprehensive loss | $ (74,348) | $ (80,802) |
Significant Accounting Polici_6
Significant Accounting Policies (Changes in the Balance of AOCL) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,131,793 | ||
Net actuarial losses reclassified from AOCL | (2,248) | $ (2,776) | $ (3,744) |
Net change in cumulative translation adjustment | 6,454 | (4,123) | 6,516 |
Ending balance | 1,126,297 | 1,131,793 | |
Derivatives | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (3,543) | (356) | |
Change in fair value of derivatives | 2,607 | (4,829) | |
Income tax impact on derivative instruments | (1,104) | 1,707 | |
Net loss (gain) reclassified from AOCL | 2,025 | (65) | |
Ending balance | (15) | (3,543) | (356) |
Pension and other postretirement benefits liabilities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (71,449) | (71,075) | |
Net actuarial losses reclassified from AOCL | 2,248 | 2,776 | |
Valuation adjustment for pension and postretirement benefit plans | 479 | (3,150) | |
Ending balance | (68,722) | (71,449) | (71,075) |
Cumulative translation adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (5,810) | (5,248) | |
Net change in cumulative translation adjustment | 199 | (562) | |
Ending balance | (5,611) | (5,810) | (5,248) |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (80,802) | (76,679) | |
Change in fair value of derivatives | 2,607 | (4,829) | |
Income tax impact on derivative instruments | (1,104) | 1,707 | |
Net loss (gain) reclassified from AOCL | 2,025 | (65) | |
Net actuarial losses reclassified from AOCL | 2,248 | 2,776 | |
Valuation adjustment for pension and postretirement benefit plans | 479 | (3,150) | |
Net change in cumulative translation adjustment | 199 | (562) | |
Ending balance | $ (74,348) | $ (80,802) | $ (76,679) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) $ in Thousands | Jul. 05, 2019 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Receivable with imputed interest, face amount | $ 12,000 |
Note receivable with imputed interest, term of contract | 5 years |
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% |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Contingent Consideration Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Business Combination, Contingent Consideration, Liability [Roll Forward] | |||
Beginning balance | $ 8,586 | ||
Increase in fair value | 5,855 | $ (27,510) | $ 955 |
Payments made | (22,573) | (706) | $ 0 |
Ending balance | 750 | 8,586 | |
Fair Value, Inputs, Level 3 | Fair Value, Recurring | |||
Business Combination, Contingent Consideration, Liability [Roll Forward] | |||
Beginning balance | 20,274 | ||
Increase in fair value | (5,855) | ||
Payments made | (22,573) | ||
Ending balance | 3,556 | 20,274 | |
Other current liabilities | Fair Value, Inputs, Level 3 | Fair Value, Recurring | |||
Business Combination, Contingent Consideration, Liability [Roll Forward] | |||
Ending balance | 750 | ||
Other long-term liabilities | Fair Value, Inputs, Level 3 | Fair Value, Recurring | |||
Business Combination, Contingent Consideration, Liability [Roll Forward] | |||
Beginning balance | 11,688 | ||
Ending balance | $ 2,806 | $ 11,688 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Fair value of assets and liabilities | ||
Long-term debt | $ 717,238 | $ 1,049,658 |
4.5% Senior Notes | ||
Fair value of assets and liabilities | ||
Long-term debt | $ 500,000 | |
Long-term debt, percentage bearing fixed interest, percentage rate | 4.50% | |
4.5% Senior Notes | Carrying Amount | Fair Value, Recurring | ||
Fair value of assets and liabilities | ||
Fixed rate debt | $ 500,000 | 500,000 |
4.5% Senior Notes | Fair Value | Fair Value, Recurring | ||
Fair value of assets and liabilities | ||
Fixed rate debt | 500,865 | 404,000 |
2022 ABL Revolving Credit Facility and 2022 Term Loan Facility | Carrying Amount | Fair Value, Recurring | ||
Fair value of assets and liabilities | ||
Variable-rate debt | 220,000 | 560,000 |
2022 ABL Revolving Credit Facility and 2022 Term Loan Facility | Fair Value | Fair Value, Recurring | ||
Fair value of assets and liabilities | ||
Variable-rate debt | $ 220,000 | $ 560,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease, impairment loss | $ 3,116 | $ 1,812 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term (in years) | 5 years |
Leases - Operating Lease Assets
Leases - Operating Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Leases [Abstract] | ||
Operating lease assets | $ 107,007 | $ 106,828 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Operating lease liabilities, current | $ 14,673 | $ 16,351 |
Operating lease liabilities, long-term | 105,699 | 103,313 |
Total lease liabilities | $ 120,372 | $ 119,664 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Fixed operating lease costs | $ 27,212 | $ 28,128 |
Variable operating lease costs | 4,635 | 3,200 |
Operating and sublease income | (893) | (602) |
Net lease costs | $ 30,954 | $ 30,726 |
Operating leases, weighted average remaining lease term (in years) | 8 years 9 months 25 days | 9 years 8 months 15 days |
Operating leases, weighted average discount rate | 8.64% | 8.43% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Leases [Abstract] | ||
Fiscal year 2025 | $ 24,245 | |
Fiscal year 2026 | 23,457 | |
Fiscal year 2027 | 21,064 | |
Fiscal year 2028 | 18,336 | |
Fiscal year 2029 | 16,345 | |
Thereafter | 72,867 | |
Total lease payments | 176,314 | |
Less imputed interest | (55,942) | |
Present value of lease liabilities | $ 120,372 | $ 119,664 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows - operating leases | $ 26,817 | $ 22,760 |
Right-of-use assets obtained in exchange for lease liabilities: | ||
Operating leases | 22,045 | 35,046 |
ROU asset re-measurement | $ (5,747) | $ 10,237 |
Derivative Financial Instrume_2
Derivative Financial Instruments - Narrative (Details) lb in Thousands | 12 Months Ended | ||
Mar. 31, 2024 USD ($) lb | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Derivatives, Fair Value [Line Items] | |||
Foreign currency translation gains (losses) | $ 2,991,000 | $ 588,000 | $ 0 |
Lead forward contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, notional amount, mass | lb | 6,250 | ||
Foreign currency forward contracts | Cash Flow Hedging | Derivatives designated as cash flow hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, notional amount | $ 4,064,000 | ||
Foreign currency forward contracts | Minimum | Cash Flow Hedging | Derivatives designated as cash flow hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, remaining maturity | 12 months | ||
Foreign currency forward contracts | Maximum | Cash Flow Hedging | Derivatives designated as cash flow hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, remaining maturity | 15 months |
Derivative Financial Instrume_3
Derivative Financial Instruments - Interest Rate Swaps (Details) | Mar. 31, 2024 USD ($) |
Interest Rate Swap, Maturing February 2026 | |
Derivative [Line Items] | |
Notional | $ 50,000,000 |
Fair value | $ 73,000 |
Pay fixed | 4.491% |
Receive floating | 5.324% |
Interest Rate Swap, Maturing March 2026 | |
Derivative [Line Items] | |
Notional | $ 25,000,000 |
Fair value | $ (60,000) |
Pay fixed | 4.65% |
Receive floating | 5.321% |
Derivative FInancial Instrume_4
Derivative FInancial Instruments - Fair Value by Balance Sheet Location (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 0 | $ 91 |
Cash Flow Hedging | Derivatives designated as cash flow hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset (Liability) derivatives | (9) | 5,012 |
Other current assets | Foreign currency forward contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 0 | 91 |
Deferred charges and other non-current assets, net | Interest rate swap contracts | Cash Flow Hedging | Derivatives designated as cash flow hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 13 | 0 |
Other current liabilities | Foreign currency forward contracts | Cash Flow Hedging | Derivatives designated as cash flow hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | (4) | (3,252) |
Other long-term liabilities | Interest rate swap contracts | Cash Flow Hedging | Derivatives designated as cash flow hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 0 | $ (1,760) |
Derivative FInancial Instrume_5
Derivative FInancial Instruments - Quantitative Disclosures of Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in other comprehensive income | $ 2,607 | $ (4,829) | $ 0 |
Gain (loss) reclassified from other comprehensive income into earnings | (2,025) | 65 | 0 |
Foreign currency forward contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in other comprehensive income | 199 | (3,782) | 0 |
Foreign currency forward contracts | Cost of sales | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) reclassified from other comprehensive income into earnings | (1,349) | (588) | 0 |
Foreign currency forward contracts | Other income (expense), net | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) reclassified from other comprehensive income into earnings | (1,642) | 0 | 0 |
Lead forward contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in other comprehensive income | 115 | 713 | 0 |
Lead forward contracts | Cost of sales | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) reclassified from other comprehensive income into earnings | 446 | 653 | 0 |
Interest rate swap contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in other comprehensive income | 2,293 | (1,760) | 0 |
Interest rate swap contracts | Interest expense, net | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) reclassified from other comprehensive income into earnings | $ 520 | $ 0 | $ 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) | 12 Months Ended |
Mar. 31, 2024 | |
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 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | |||
Net income (loss) | $ (5,505) | $ (9,718) | $ 473,226 |
Denominator: | |||
Weighted-average number of common shares outstanding, basic (in shares) | 57,946,000 | 56,600,000 | 57,190,000 |
Dilutive effect of stock-based awards (in shares) | 0 | 0 | 1,947,000 |
Diluted EPS shares outstanding (in shares) | 57,946,000 | 56,600,000 | 59,137,000 |
Earnings (loss) per common share: | |||
Basic (in dollars per share) | $ (0.10) | $ (0.17) | $ 8.27 |
Diluted (in dollars per share) | $ (0.10) | $ (0.17) | $ 8 |
Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted earnings per share, because either the effect would have been anti-dilutive, or the options’ exercise prices were greater than the average market price of the common stock | 300,000 | 1,504,000 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) | 3 Months Ended | 8 Months Ended | 12 Months Ended | ||||
Aug. 05, 2022 | Sep. 28, 2021 | Dec. 25, 2022 | Jun. 26, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2024 | |
Business Acquisition [Line Items] | |||||||
Contingent consideration | $ 8,586,000 | $ 750,000 | |||||
Fox Racing | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, pro forma information, revenue of acquiree since acquisition date | 180,320,000 | ||||||
Business combination, pro forma information, net income (loss) of acquiree since acquisition date | $ (18,857,000) | ||||||
Contingent consideration | 0 | ||||||
Business combination, consideration transferred | $ 575,534,000 | ||||||
Stone Glacier | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration | $ 9,939,000 | 2,806,000 | |||||
Fiber Energy Products | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration | $ 3,625,000 | ||||||
Foresight Sports | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, pro forma information, revenue of acquiree since acquisition date | 61,173,000 | ||||||
Business combination, pro forma information, net income (loss) of acquiree since acquisition date | $ 18,423,000 | ||||||
Business combination, consideration transferred | $ 470,772,000 | 470,772 | |||||
Foresight Sports | Employee Retention Payments | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, separately recognized transactions, post combination compensation expense | 5,599,000 | ||||||
Foresight Sports | Contingent Payments Related To Net Sales Targets Being Met | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, separately recognized transactions, post combination compensation expense | 25,000,000 | ||||||
QuietKat | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration | $ 22,400,000 | $ 750,000 | |||||
Other payments to acquire businesses | $ 13,000,000 | ||||||
Business acquisition, milestone payment period (in years) | 3 years |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) | 3 Months Ended | |||||
Aug. 05, 2022 | Sep. 28, 2021 | Dec. 25, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Fair value of liabilities assumed: | ||||||
Goodwill | $ 318,251,000 | $ 465,709,000 | $ 481,857,000 | |||
Fox Racing | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid | $ 564,134,000 | |||||
Fair value of contingent consideration payable | 11,400,000 | |||||
Total estimated purchase consideration | 575,534,000 | |||||
Fair value of assets acquired: | ||||||
Accounts receivable | 39,174,000 | |||||
Inventories | 96,142,000 | |||||
Intangible assets | 255,200,000 | |||||
Property, plant, and equipment | 23,570,000 | |||||
Operating lease assets | 16,078,000 | |||||
Other current assets | 17,145,000 | |||||
Other long-term assets | 5,347,000 | |||||
Total assets | 452,656,000 | |||||
Fair value of liabilities assumed: | ||||||
Accounts payable | 18,584,000 | |||||
Long-term operating lease liabilities | 11,971,000 | |||||
Deferred income taxes | 55,488,000 | |||||
Other liabilities | 39,292,000 | |||||
Other long-term liabilities | 41,000 | |||||
Total liabilities | 125,376,000 | |||||
Net assets acquired | 327,280,000 | |||||
Goodwill | $ 248,254,000 | |||||
Foresight Sports | ||||||
Business Acquisition [Line Items] | ||||||
Total estimated purchase consideration | $ 470,772,000 | $ 470,772 | ||||
Customer deposits | 2,084,000 | |||||
Contract liabilities | 2,992,000 | |||||
Fair value of assets acquired: | ||||||
Accounts receivable | 2,806,000 | |||||
Inventories | 10,780,000 | |||||
Intangible assets | 131,500,000 | |||||
Property, plant, and equipment | 1,870,000 | |||||
Operating lease assets | 6,506,000 | |||||
Other long-term assets | 2,006,000 | |||||
Total assets | 155,468,000 | |||||
Fair value of liabilities assumed: | ||||||
Accounts payable | 6,177,000 | |||||
Long-term operating lease liabilities | 5,961,000 | |||||
Other liabilities | 1,729,000 | |||||
Other long-term liabilities | 9,182,000 | |||||
Total liabilities | 28,125,000 | |||||
Net assets acquired | 127,343,000 | |||||
Goodwill | $ 343,429,000 |
Acquisitions - Indefinite and F
Acquisitions - Indefinite and Finite-lived Intangible Assets Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 05, 2022 | Sep. 28, 2021 | Mar. 31, 2024 | |
Finite-Lived And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 11 years 6 months | ||
Foresight Sports | Tradenames | |||
Finite-Lived And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |||
Finite-lived intangible assets acquired, value | $ 42,500 | ||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 20 years | ||
Foresight Sports | Patented technology | |||
Finite-Lived And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |||
Finite-lived intangible assets acquired, value | $ 19,900 | ||
Foresight Sports | Patented technology | Minimum | |||
Finite-Lived And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 5 years | ||
Foresight Sports | Patented technology | Maximum | |||
Finite-Lived And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 10 years | ||
Foresight Sports | Customer Relationships | |||
Finite-Lived And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |||
Finite-lived intangible assets acquired, value | $ 69,100 | ||
Foresight Sports | Customer Relationships | Minimum | |||
Finite-Lived And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 5 years | ||
Foresight Sports | Customer Relationships | Maximum | |||
Finite-Lived And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 15 years | ||
Fox Racing | Tradenames | |||
Finite-Lived And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |||
Finite-lived intangible assets acquired, value | $ 106,200 | ||
Fox Racing | Customer Relationships | |||
Finite-Lived And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |||
Finite-lived intangible assets acquired, value | $ 149,000 | ||
Fox Racing | Customer Relationships | Minimum | |||
Finite-Lived And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 5 years | ||
Fox Racing | Customer Relationships | Maximum | |||
Finite-Lived And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 15 years |
Acquisitions - Supplemental Pro
Acquisitions - Supplemental Pro Forma Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Fox Racing | |||
Business Acquisition [Line Items] | |||
Sales, net | $ 3,185,662 | $ 3,344,338 | |
Net income (loss) | $ (6,930) | 433,199 | |
Foresight Sports | |||
Business Acquisition [Line Items] | |||
Sales, net | 3,088,220 | $ 2,296,413 | |
Net income (loss) | $ 515,345 | $ 268,547 |
Acquisitions - Significant Nonr
Acquisitions - Significant Nonrecurring Adjustments to Net Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Aug. 05, 2022 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Depreciation | $ 49,145 | $ 48,126 | $ 46,094 | ||
Income tax provision | (8,979) | 60,380 | 147,732 | ||
Depreciation and amortization | $ 99,291 | 92,089 | 72,340 | ||
Revolving Credit Facility and Secured Debt | 2022 ABL Revolving Credit Facility and 2022 Term Loan Facility | Line of Credit | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Asset-based revolving credit facility | 580,000 | ||||
Weighted average interest rate (as a percent) | 5.58% | ||||
Fox Racing | Fees for advisory, legal, accounting services | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Fees for advisory, legal, and accounting services | (6,064) | 6,064 | |||
Inventory step-up, net | (7,544) | 7,544 | |||
Interest | 10,627 | 30,406 | |||
Depreciation | 969 | 2,482 | |||
Amortization | 4,245 | 12,257 | |||
Management Fees | (530) | (1,413) | |||
Income tax provision | $ (910) | (13,260) | |||
Foresight Sports | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Fees for advisory, legal, and accounting services | 3,080 | ||||
Foresight Sports | Fees for advisory, legal, accounting services | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Fees for advisory, legal, and accounting services | (3,080) | $ 3,080 | |||
Inventory step-up, net | (1,247) | 1,247 | |||
Interest | 2,203 | 6,565 | |||
Income tax provision | 3,520 | 5,520 | |||
Depreciation and amortization | $ 4,961 | $ 8,122 |
Receivables (Components of Rece
Receivables (Components of Receivables) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 |
Receivables [Abstract] | |||
Trade receivables | $ 357,672 | $ 349,424 | |
Other receivables | 17,585 | 8,899 | |
Less: allowance for estimated credit losses and discounts | (19,354) | (18,950) | $ (14,510) |
Net receivables | $ 355,903 | $ 339,373 |
Receivables (Narrative) (Detail
Receivables (Narrative) (Details) | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Walmart | Accounts Receivable | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11% | 10% |
Receivables (Reconciliation of
Receivables (Reconciliation of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 18,950 | $ 14,510 |
Provision for credit losses | 1,915 | 2,289 |
Write-off of uncollectible amounts, net of recoveries | (1,511) | (259) |
Purchase accounting (Note 7) | 2,410 | |
Balance at end of period | $ 19,354 | $ 18,950 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 179,308 | $ 199,225 |
Work in process | 57,093 | 63,652 |
Finished goods | 373,598 | 447,020 |
Net inventories | 609,999 | 709,897 |
Noncurrent inventory | $ 38,683 | $ 45,929 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | $ 49,145 | $ 48,126 | $ 46,094 |
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 | 10 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, 2024 | Mar. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant, and equipment | $ 653,748 | $ 642,558 |
Less: accumulated depreciation | (451,884) | (414,311) |
Net property, plant, and equipment | 201,864 | 228,247 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant, and equipment | 13,301 | 13,276 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant, and equipment | 108,753 | 108,377 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant, and equipment | 516,337 | 498,266 |
Property not yet in service | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant, and equipment | $ 15,357 | $ 22,639 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Goodwill Rollforward by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 24, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | $ 465,709 | $ 481,857 | |
Acquisitions | 14,256 | 316,607 | |
Impairment | $ (161,714) | (332,755) | |
Balance at the end of the period | 318,251 | 465,709 | |
The Kinetic Group | |||
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 86,105 | 86,105 | |
Acquisitions | 0 | 0 | |
Impairment | 0 | 0 | |
Balance at the end of the period | 86,105 | 86,105 | |
Revelyst Outdoor Performance | |||
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 36,174 | 39,973 | |
Acquisitions | 0 | 68,353 | |
Impairment | (36,174) | (72,152) | |
Balance at the end of the period | 0 | 36,174 | |
Revelyst Adventure Sports | |||
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 0 | 12,349 | |
Acquisitions | 0 | 248,254 | |
Impairment | 0 | (260,603) | |
Balance at the end of the period | 0 | 0 | |
Revelyst Precision Sports Technology | |||
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 343,430 | 343,430 | |
Acquisitions | 14,256 | 0 | |
Impairment | (125,540) | 0 | |
Balance at the end of the period | $ 232,146 | $ 343,430 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 24, 2023 | Dec. 24, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill [Line Items] | |||||
Impairment | $ (161,714,000) | $ (332,755,000) | |||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment of goodwill and intangibles (Note 11) | ||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment of goodwill and intangibles (Note 11) | Impairment of goodwill and intangibles (Note 11) | |||
Amortization of intangible assets | $ 50,146,000 | $ 43,963,000 | $ 26,246,000 | ||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 11 years 6 months | ||||
Minimum | |||||
Goodwill [Line Items] | |||||
Weighted average cost of capital (in percent) | 12.50% | 12.50% | 12.50% | 10.50% | |
Maximum | |||||
Goodwill [Line Items] | |||||
Weighted average cost of capital (in percent) | 16% | 16% | 16% | 17% | |
Tradenames | |||||
Goodwill [Line Items] | |||||
Non-amortizing trade names | $ 200,303,000 | $ 250,603,000 | |||
Stone Glacier | |||||
Goodwill [Line Items] | |||||
Impairment | (3,799,000) | ||||
Fox Racing | |||||
Goodwill [Line Items] | |||||
Impairment | (248,254,000) | ||||
Fox Racing | Tradenames | |||||
Goodwill [Line Items] | |||||
Impairment of indefinite-lived intangible assets | (21,200,000) | ||||
Carrying value of indefinite lived intangible assets | $ 85,000,000 | ||||
Fox Racing | Tradenames | Measurement Input, Royalty Rate | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.030 | ||||
Bell Cycling | Tradenames | Measurement Input, Royalty Rate | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.015 | ||||
Simms Fishing | |||||
Goodwill [Line Items] | |||||
Impairment | $ (68,353,000) | ||||
Simms Fishing | Tradenames | |||||
Goodwill [Line Items] | |||||
Impairment of indefinite-lived intangible assets | (20,400,000) | ||||
Carrying value of indefinite lived intangible assets | $ 30,000,000 | ||||
Simms Fishing | Tradenames | Measurement Input, Royalty Rate | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.030 | ||||
Giro | Tradenames | Measurement Input, Royalty Rate | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.015 | ||||
QuietKat | |||||
Goodwill [Line Items] | |||||
Impairment | $ (12,349,000) | ||||
Revelyst Precision Sports Technology | |||||
Goodwill [Line Items] | |||||
Accumulated impairment losses | 125,540,000 | 0 | |||
Impairment | (125,540,000) | 0 | |||
Revelyst Outdoor Performance | |||||
Goodwill [Line Items] | |||||
Accumulated impairment losses | 745,957,000 | 709,783,000 | |||
Impairment | (36,174,000) | (72,152,000) | |||
Revelyst Adventure Sports | |||||
Goodwill [Line Items] | |||||
Accumulated impairment losses | 617,179,000 | 617,179,000 | |||
Impairment | 0 | (260,603,000) | |||
The Kinetic Group | |||||
Goodwill [Line Items] | |||||
Accumulated impairment losses | 0 | ||||
Impairment | 0 | $ 0 | |||
Revelyst | |||||
Goodwill [Line Items] | |||||
Impairment | (161,714,000) | ||||
Impairment of indefinite-lived intangible assets | 50,300,000 | ||||
Revelyst | Outdoor Cooking | |||||
Goodwill [Line Items] | |||||
Impairment | $ (26,219,000) | ||||
Impairment charges, amortizing intangible assets | 6,798,000 | ||||
Revelyst | Outdoor Cooking | Customer Relationships | |||||
Goodwill [Line Items] | |||||
Impairment charges, amortizing intangible assets | $ 5,805,000 | ||||
Revelyst | Outdoor Cooking | Tradenames | |||||
Goodwill [Line Items] | |||||
Impairment charges, amortizing intangible assets | $ 993,000 | ||||
Revelyst | Stone Glacier | |||||
Goodwill [Line Items] | |||||
Impairment | (9,955,000) | ||||
Revelyst | Golf | |||||
Goodwill [Line Items] | |||||
Impairment | (125,540,000) | ||||
Revelyst | Fox Racing | |||||
Goodwill [Line Items] | |||||
Non-amortizing trade names | 58,400,000 | ||||
Revelyst | Fox Racing | Tradenames | |||||
Goodwill [Line Items] | |||||
Impairment of indefinite-lived intangible assets | $ 26,600,000 | ||||
Revelyst | Fox Racing | Tradenames | Measurement Input, Royalty Rate | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.03 | 0.03 | |||
Revelyst | Camelbak | |||||
Goodwill [Line Items] | |||||
Non-amortizing trade names | 13,300,000 | ||||
Revelyst | Camelbak | Tradenames | |||||
Goodwill [Line Items] | |||||
Impairment of indefinite-lived intangible assets | $ 9,600,000 | ||||
Revelyst | Camelbak | Tradenames | Measurement Input, Royalty Rate | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.015 | 0.015 | |||
Revelyst | Bell Cycling | |||||
Goodwill [Line Items] | |||||
Non-amortizing trade names | 12,000,000 | ||||
Revelyst | Bell Cycling | Tradenames | |||||
Goodwill [Line Items] | |||||
Impairment of indefinite-lived intangible assets | $ 6,100,000 | ||||
Revelyst | Bell Cycling | Tradenames | Measurement Input, Royalty Rate | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.015 | 0.015 | |||
Revelyst | Simms Fishing | |||||
Goodwill [Line Items] | |||||
Non-amortizing trade names | 25,500,000 | ||||
Revelyst | Simms Fishing | Tradenames | |||||
Goodwill [Line Items] | |||||
Impairment of indefinite-lived intangible assets | $ 4,500,000 | ||||
Revelyst | Simms Fishing | Tradenames | Measurement Input, Royalty Rate | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.03 | 0.03 | |||
Revelyst | Giro | |||||
Goodwill [Line Items] | |||||
Non-amortizing trade names | 15,300,000 | ||||
Revelyst | Giro | Tradenames | |||||
Goodwill [Line Items] | |||||
Impairment of indefinite-lived intangible assets | $ 1,800,000 | ||||
Revelyst | Giro | Tradenames | Measurement Input, Royalty Rate | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.015 | 0.015 | |||
Revelyst | Bushnell | |||||
Goodwill [Line Items] | |||||
Non-amortizing trade names | 14,900,000 | ||||
Revelyst | Bushnell | Tradenames | |||||
Goodwill [Line Items] | |||||
Impairment of indefinite-lived intangible assets | $ 1,100,000 | ||||
Revelyst | Bushnell | Tradenames | Measurement Input, Royalty Rate | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.01 | 0.01 | |||
Revelyst | Bell Powersports | |||||
Goodwill [Line Items] | |||||
Non-amortizing trade names | $ 3,500,000 | ||||
Revelyst | Bell Powersports | Tradenames | |||||
Goodwill [Line Items] | |||||
Impairment of indefinite-lived intangible assets | $ 600,000 | ||||
Revelyst | Bell Powersports | Tradenames | Measurement Input, Royalty Rate | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangibles, measurement input | 0.01 | 0.01 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Net Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 674,299 | $ 681,006 |
Accumulated amortization | (246,966) | (198,433) |
Total | 427,333 | 482,573 |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 874,602 | 931,609 |
Accumulated amortization | (246,966) | (198,433) |
Net intangible assets | 627,636 | 733,176 |
Tradenames | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Non-amortizing trade names | 200,303 | 250,603 |
Tradenames | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 113,636 | 113,915 |
Accumulated amortization | (37,646) | (30,848) |
Total | 75,990 | 83,067 |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Accumulated amortization | (37,646) | (30,848) |
Patented technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 37,604 | 36,854 |
Accumulated amortization | (19,252) | (16,313) |
Total | 18,352 | 20,541 |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Accumulated amortization | (19,252) | (16,313) |
Customer relationships and other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 523,059 | 530,237 |
Accumulated amortization | (190,068) | (151,272) |
Total | 332,991 | 378,965 |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (190,068) | $ (151,272) |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Future Amortization Expense) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Fiscal year 2025 | $ 49,991 | |
Fiscal year 2026 | 46,981 | |
Fiscal year 2027 | 45,531 | |
Fiscal year 2028 | 40,361 | |
Fiscal year 2029 | 33,871 | |
Thereafter | 210,598 | |
Total | $ 427,333 | $ 482,573 |
Other Current Liabilities (Comp
Other Current Liabilities (Components of Current and Long-term Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Other Liabilities, Current [Abstract] | ||
Warranty liability | $ 8,083 | $ 5,441 |
Accrual for in-transit inventory | 5,570 | 9,810 |
Operating lease liabilities | 14,673 | 16,351 |
Contingent consideration | 750 | 8,586 |
Other | 100,276 | 106,189 |
Total other current liabilities | $ 129,352 | $ 146,377 |
Other Current Liabilities (Warr
Other Current Liabilities (Warranty Liability Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reconciliation of the changes in product warranty liability | ||
Beginning of period | $ 9,552 | $ 9,073 |
Payments made | (6,834) | (4,676) |
Warranties issued | 12,119 | 4,827 |
Changes related to pre-existing warranties and other adjustments | (3,785) | 328 |
End of period | $ 11,052 | $ 9,552 |
Minimum | ||
Product Warranty Liability [Line Items] | ||
Product warranty term | one year |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general, and administrative | Selling, general, and administrative | ||
GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 8,279 | $ 8,279 | $ 0 | |
Cost reduction and earnings improvement program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 5,604 | $ 15,668 | $ 21,272 | |
Minimum | GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated pre-tax restructuring charges | 40,000 | 40,000 | 40,000 | |
Maximum | GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated pre-tax restructuring charges | $ 50,000 | $ 50,000 | $ 50,000 |
Restructuring - Restructuring C
Restructuring - Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | |
GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 8,279 | $ 8,279 | $ 0 | |
Cost reduction and earnings improvement program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 5,604 | 15,668 | $ 21,272 | |
Employee severance and related expenses | GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 6,056 | 6,056 | 0 | |
Employee severance and related expenses | Cost reduction and earnings improvement program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 614 | 5,225 | 5,839 | |
Professional fees | GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,720 | 1,720 | 0 | |
Right-of-use asset impairments | GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 129 | 129 | 0 | |
Right-of-use asset impairments | Cost reduction and earnings improvement program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 3,825 | 1,812 | 5,637 | |
Impairment on technology assets | GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 306 | 306 | 0 | |
Impairment on technology assets | Cost reduction and earnings improvement program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 1,003 | 1,003 | |
Other asset impairments | Cost reduction and earnings improvement program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 7,628 | 7,628 | |
Contract termination costs | Cost reduction and earnings improvement program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,165 | 0 | $ 1,165 | |
Other | GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 68 | $ 68 | $ 0 |
Restructuring - Accrual Rollfor
Restructuring - Accrual Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | |
GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 8,279 | $ 8,279 | $ 0 | |
Cost reduction and earnings improvement program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 5,604 | 15,668 | $ 21,272 | |
Employee severance and related expenses | GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 6,056 | 6,056 | 0 | |
Employee severance and related expenses | Cost reduction and earnings improvement program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 614 | 5,225 | 5,839 | |
Professional fees | GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 1,720 | 1,720 | 0 | |
Other | GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 68 | 68 | 0 | |
Accounts Payable, Other Current Liabilities, Or Other Current Assets | GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | 0 | |||
Charges | 7,844 | |||
Payments | (3,406) | |||
Ending balance | 4,438 | 4,438 | 0 | 4,438 |
Accounts Payable, Other Current Liabilities, Or Other Current Assets | Cost reduction and earnings improvement program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | 5,225 | |||
Charges | 614 | |||
Payments | (4,835) | |||
Ending balance | 1,004 | 1,004 | 5,225 | 1,004 |
Accounts Payable, Other Current Liabilities, Or Other Current Assets | Employee severance and related expenses | GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | 0 | |||
Charges | 6,056 | |||
Payments | (657) | |||
Ending balance | 5,399 | 5,399 | 0 | 5,399 |
Accounts Payable, Other Current Liabilities, Or Other Current Assets | Employee severance and related expenses | Cost reduction and earnings improvement program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | 5,225 | |||
Charges | 614 | |||
Payments | (4,835) | |||
Ending balance | 1,004 | 1,004 | 5,225 | 1,004 |
Accounts Payable, Other Current Liabilities, Or Other Current Assets | Professional fees | GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | 0 | |||
Charges | 1,720 | |||
Payments | (2,688) | |||
Ending balance | 0 | |||
Ending balance | (968) | (968) | (968) | |
Accounts Payable, Other Current Liabilities, Or Other Current Assets | Other | GEAR Up restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | 0 | |||
Charges | 68 | |||
Payments | (61) | |||
Ending balance | $ 7 | $ 7 | $ 0 | $ 7 |
Long-term Debt (Components of L
Long-term Debt (Components of Long-term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 720,000 | $ 1,060,000 |
Less: unamortized deferred financing costs related to term loans | (2,762) | (10,342) |
Long-term debt | 717,238 | 1,049,658 |
Less: current portion | 0 | (65,000) |
Carrying amount of long-term debt, excluding current portion | 717,238 | 984,658 |
Line of Credit and Senior Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 220,000 | 560,000 |
4.5% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 500,000 | 500,000 |
Revolving Credit Facility | 2022 ABL Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 220,000 | 355,000 |
Secured Debt | 2022 Term Loan | Senior Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | $ 205,000 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 720,000,000 | $ 1,060,000,000 | |
Letters of credit outstanding, amount | 14,612,000 | ||
Interest paid | $ 57,404,000 | 49,343,000 | $ 25,328,000 |
Guarantors | |||
Debt Instrument [Line Items] | |||
Number of subsidiaries owned (as a percent) | 100% | ||
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 instrument, interest rate (as a percent) | 4.50% | ||
Debt issuance costs | $ 4,491,000 | ||
Amortization of debt issuance costs, period (in years) | 8 years | ||
Guarantor obligations, maximum exposure, undiscounted | $ 75,000,000 | ||
4.5% Senior Notes | Carrying Amount | Fair Value, Recurring | |||
Debt Instrument [Line Items] | |||
Fixed rate debt | 500,000,000 | 500,000,000 | |
4.5% Senior Notes | Fair Value, Inputs, Level 2 | Carrying Amount | Fair Value, Recurring | |||
Debt Instrument [Line Items] | |||
Fixed rate debt | 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% | ||
Revolving Credit Facility | 2022 ABL Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Face amount on debt instrument | 600,000,000 | ||
Long-term debt, gross | $ 220,000,000 | 355,000,000 | |
Restricted payment limit | 57,000,000 | ||
Line of credit facility, remaining borrowing capacity | 237,109,000 | ||
Debt issuance costs | $ 11,310,000 | ||
Debt instrument, covenant, minimum threshold line of capacity (as a percent) | 10% | ||
Revolving Credit Facility | 2022 ABL Revolving Credit Facility | Line of Credit | Maximum | |||
Debt Instrument [Line Items] | |||
Line of credit facility, increased borrowing capacity, amount | $ 150,000 | ||
Secured Debt | 2022 Term Loan | Senior Loans | |||
Debt Instrument [Line Items] | |||
Face amount on debt instrument | 350,000,000 | ||
Long-term debt, gross | 0 | $ 205,000,000 | |
Debt issuance costs | $ 2,423,000 | ||
Non-First-in, Last-out, Revolving Credit Facility | 2022 ABL Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate (as a percent) | 6.66% | ||
Non-First-in, Last-out, Revolving Credit Facility | 2022 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 | 2022 ABL Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Credit spread adjustment (as a percent) | 0.10% | ||
Non-First-in, Last-out, Revolving Credit Facility | 2022 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 | 2022 ABL Revolving Credit Facility | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate (as a percent) | 1.25% | ||
Non-First-in, Last-out, Revolving Credit Facility | 2022 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 | 2022 ABL Revolving Credit Facility | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate (as a percent) | 1.75% | ||
Non-First-in, Last-out, Revolving Credit Facility | 2022 Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate (as a percent) | 1.50% |
Long-Term Debt (Future Minimum
Long-Term Debt (Future Minimum Loan Payments) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Minimum payments on outstanding long-term debt | ||
Fiscal year 2026 | $ 220,000 | |
Fiscal year 2029 | 500,000 | |
Total | $ 720,000 | $ 1,060,000 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, net periodic benefit cost (credit) | $ 951,000 | $ 1,525,000 | $ 426,000 |
Fair value of plan assets | 138,247,000 | 143,658,000 | |
Benefits paid | (13,190,000) | ||
Return on plan asset | 7,779,000 | ||
Benefit obligation | 159,006,000 | 167,047,000 | |
Benefits paid | (13,190,000) | ||
Actuarial gain | (2,700,000) | ||
Interest cost | $ 7,849,000 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of sales | ||
Unfunded status | $ 20,759,000 | 23,389,000 | |
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 | $ 4,300,000 | ||
Contribution cost recognized | $ 21,399,000 | $ 22,298,000 | 20,462,000 |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate (as a percent) | 5.20% | 4.90% | |
Weighted average interest crediting rate | 4% | 4% | |
Expected long-term rate of return on plan assets (as a percent) | 6.25% | 6.50% | |
Contributions by employer | $ 0 | $ 0 | 1,300,000 |
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 paid | $ 0 | $ 0 | $ 0 |
Employee Benefit Plans (Future
Employee Benefit Plans (Future Expected Benefit Payments) (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Expected Future Benefit Payments | |
Fiscal year 2025 | $ 14,854 |
Fiscal year 2026 | 13,488 |
Fiscal year 2027 | 13,212 |
Fiscal year 2028 | 13,113 |
Fiscal year 2029 | 13,439 |
Fiscal years 2030 through 2034 | $ 61,959 |
Employee Benefit Plans (Defined
Employee Benefit Plans (Defined Contribution Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Postemployment Benefits [Abstract] | |||
Contribution cost recognized | $ 21,399 | $ 22,298 | $ 20,462 |
Income Taxes (Income Before Inc
Income Taxes (Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (16,081) | $ 44,494 | $ 619,464 |
Non-U.S. | 1,597 | 6,168 | 1,494 |
Income (loss) before income taxes | $ (14,484) | $ 50,662 | $ 620,958 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Current: | |||
Federal | $ (39,516) | $ (94,041) | $ (107,429) |
State | (6,467) | (9,263) | (28,119) |
Non-US | (836) | (324) | (739) |
Deferred: | |||
Federal | 49,592 | 42,445 | (10,327) |
State | 5,991 | (253) | (1,483) |
Non-US | 215 | 1,056 | 365 |
Income tax benefit (provision) | $ 8,979 | $ (60,380) | $ (147,732) |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21% | 21% | 21% |
State income taxes, net of federal impact | (2.50%) | 14.20% | 3.90% |
Foreign derived intangible income | (37.70%) | (13.10%) | (1.00%) |
Nondeductible goodwill impairment | (30.20%) | 110.10% | 0% |
Nondeductible earnouts | (15.30%) | (7.50%) | 0.20% |
Change in tax contingency | 47% | (1.40%) | (0.70%) |
Other | 4.30% | (4.10%) | 0.40% |
Effective income tax rate | 62% | 119.20% | 23.80% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | |||
Capital loss carryforward | $ 19,472 | $ 19,390 | |
Valuation allowance | (21,605) | (21,382) | |
Income Taxes Paid, Net | 65,161 | 43,201 | |
Unrecognized tax benefit | 24,853 | 28,692 | |
Amount that would affect the effective tax rate if recognized | 20,327 | 24,419 | |
Amount of reasonably possible decrease in uncertain tax benefits | $ 716 | ||
Period after which tax positions classified as noncurrent income tax liabilities | 1 year | ||
Income tax-related interest included in accrued income taxes | $ 2,708 | 2,462 | |
Income tax penalties included in accrued income taxes | 3,691 | 3,509 | |
Tax penalties and interest | 2,635 | $ 2,503 | $ 2,128 |
Expiration Date in 2025 through 2045 | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss and credit carryovers | $ 5,726 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Asset and Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Deferred tax assets: | ||
Inventories | $ 19,123 | $ 18,628 |
Retirement benefits | 4,628 | 6,228 |
Accounts receivable | 6,503 | 8,245 |
Accruals for employee benefits | 6,497 | 9,063 |
Other reserves | 4,146 | 3,597 |
Loss and credit carryforwards | 6,679 | 5,368 |
Capital loss carryforward | 19,472 | 19,390 |
Operating lease liabilities | 22,230 | 25,922 |
Other | 13,386 | 9,511 |
Total deferred tax assets | 102,664 | 105,952 |
Valuation allowance | (21,605) | (21,382) |
Total net deferred assets | 81,059 | 84,570 |
Deferred tax liabilities: | ||
Intangible assets | (47,428) | (86,956) |
Property, plant, and equipment | (273) | (13,970) |
Operating lease assets | (20,463) | (24,393) |
Total deferred tax liabilities | (68,164) | (125,319) |
Deferred Income Tax Assets (Liabilities), Net | $ 12,895 | $ (40,749) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties | |||
Unrecognized tax benefits—beginning of period | $ 22,719 | $ 19,455 | $ 18,071 |
Gross increases—tax positions in prior periods | 0 | 0 | 304 |
Gross decreases—tax positions in prior periods | 0 | 0 | 0 |
Gross increases—current-period tax positions | 2,636 | 5,258 | 6,581 |
Gross decreases—current-period tax positions | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Lapse of statute of limitations | (6,903) | (1,994) | (5,501) |
Unrecognized tax benefits—end of period | $ 18,452 | $ 22,719 | $ 19,455 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments for minimum lease payments under non-cancelable operating leases | $ 176,314 | |
Remaining minimum amount committed | 146,733 | |
Letters of credit outstanding, amount | 14,612 | |
Liability for environmental remediation | $ 280 | $ 717 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
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 | $ 162,000 | $ 4,213,000 | $ 533,000 |
Total pre-tax stock-based compensation expense | 11,450,000 | 28,119,000 | 27,407,000 |
Total income tax benefit recognized in the income statement for share-based compensation | $ 2,023,000 | $ 6,020,000 | $ 4,882,000 |
Stock repurchased during period (in shares) | 0 | 0 | 2,981 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 90,847 | ||
Performance awards earned in period (in shares) | 6,763 | ||
Performance Shares, TSR Modifier | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of awards that can be earned | 100% | ||
Vesting period | 3 years | ||
Increase in award vesting rights percentage | 20% | ||
Decrease in award vesting rights percentage | 20% | ||
Granted (in shares) | 258,538 | ||
Performance awards earned in period (in shares) | 87,124 | ||
Performance Shares, Including TSR Modifier Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 349,385 | ||
Performance awards earned in period (in shares) | 93,887 | ||
Awarded (in dollars per share) | $ 27.42 | $ 29.66 | $ 37.88 |
Total unrecognized compensation cost related to nonvested stock-based compensation awards | $ 5,840,000 | ||
Nonvested stock-based compensation expected to be realized over a weighted average period (in years) | 1 year 9 months 18 days | ||
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 | 0 | 0 |
Exercised (in shares) | 10,915 | 321,260 | 28,921 |
Total intrinsic value of options exercised | $ 143,000 | $ 4,828,000 | $ 1,102,000 |
Proceeds from exercise of stock options | 162,000 | $ 4,213,000 | $ 533,000 |
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) | 958,618 | ||
Performance awards earned in period (in shares) | 423,418 | ||
Awarded (in dollars per share) | $ 30.66 | $ 27.82 | $ 34.58 |
Total unrecognized compensation cost related to nonvested stock-based compensation awards | $ 29,943,000 | ||
Nonvested stock-based compensation expected to be realized over a weighted average period (in years) | 1 year 10 months 24 days | ||
Minimum | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Minimum | Performance Shares, TSR Modifier | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of awards that can be earned | 0% | ||
Minimum | Performance Shares, Including TSR Modifier Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of awards that can be earned | 0% | ||
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] | |||
Vesting period | 3 years | ||
Maximum | Performance Shares, TSR Modifier | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of awards that can be earned | 200% | ||
Maximum | Performance Shares, Including TSR Modifier Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of awards that can be earned | 200% | ||
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 | 251,349 |
Stockholders' Equity (Performan
Stockholders' Equity (Performance-Based Awards Activity) (Details) - Performance Shares, Including TSR Modifier Performance Awards - $ / shares | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Shares | |||
Nonvested at the beginning of the period (in shares) | 242,904 | ||
Forfeited (in shares) | (74,888) | ||
Earned (in shares) | (93,887) | ||
Awarded (in shares) | 349,385 | ||
Nonvested at the end of the period (in shares) | 423,514 | 242,904 | |
Weighted average grant date fair value | |||
Nonvested at beginning of the period, Weighted average grant date fair value (in dollars per share) | $ 35.72 | ||
Canceled/forfeited, Weighted average grant date fair value (in dollars per share) | 30.27 | ||
Earned, Weighted average grant date fair value (in dollars per share) | 39.88 | ||
Awarded (in dollars per share) | 27.42 | $ 29.66 | $ 37.88 |
Nonvested at end of the period, Weighted average grant date fair value (in dollars per share) | $ 29.25 | $ 35.72 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Option Activity) (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Shares | |||
Outstanding at beginning of period (in shares) | 45,270 | ||
Forfeited/expired (in shares) | (11,056) | ||
Exercise of stock options (in shares) | (10,915) | (321,260) | (28,921) |
Outstanding at end of period (in shares) | 23,299 | 45,270 | |
Weighted average exercise price | |||
Outstanding at beginning of period (in dollars per share) | $ 17.86 | ||
Forfeited/expired (in dollars per share) | 35.86 | ||
Exercised (in dollars per share) | 14.92 | ||
Outstanding at end of period (in dollars per share) | $ 10.71 | $ 17.86 | |
Weighted average remaining contractual life (in years) | |||
Options outstanding | 4 years 8 months 12 days | 4 years 1 month 6 days | |
Aggregate Intrinsic Value | |||
Options outstanding | $ 514 | $ 536 |
Stockholders' Equity (Restricte
Stockholders' Equity (Restricted Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Shares | |||
Nonvested at the beginning of the period (in shares) | 741,023 | ||
Granted (in shares) | 958,618 | ||
Vested (in shares) | (423,418) | ||
Forfeited (in shares) | (46,595) | ||
Nonvested at the end of the period (in shares) | 1,229,628 | 741,023 | |
Weighted average grant date fair value | |||
Nonvested at beginning of the period, Weighted average grant date fair value (in dollars per share) | $ 27.43 | ||
Granted, Weighted average grant date fair value (in dollars per share) | 30.66 | $ 27.82 | $ 34.58 |
Vested, Weighted average grant date fair value (in dollars per share) | 26.41 | ||
Forfeited, Weighted average grant date fair value (in dollars per share) | 29.43 | ||
Nonvested at end of the period, Weighted average grant date fair value (in dollars per share) | $ 30.29 | $ 27.43 |
Operating Segment Information_2
Operating Segment Information (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 operating_segment | Mar. 31, 2024 USD ($) reportable_segment | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | operating_segment | 4 | |||
Number of reportable segments | 4 | 4 | ||
Sales, net | $ 2,746,063 | $ 3,079,807 | $ 3,044,621 | |
Foreign customers | Sales Revenue, Net | Geographic Concentration | ||||
Segment Reporting Information [Line Items] | ||||
Sales, net | $ 476,686 | $ 530,197 | $ 435,175 | |
Threshold percentage of sales accounted for by single contract or single commercial customer | 5% | 5% | 5% | |
Foreign customers | Sales Revenue, Net | Geographic Concentration | The Kinetic Group | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers, percent | 30% | |||
Foreign customers | Sales Revenue, Net | Geographic Concentration | Revelyst Outdoor Performance | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers, percent | 10% | |||
Foreign customers | Sales Revenue, Net | Geographic Concentration | Revelyst Adventure Sports | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers, percent | 50% | |||
Foreign customers | Sales Revenue, Net | Geographic Concentration | Revelyst Precision Sports Technology | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers, percent | 10% |
Operating Segment Information_3
Operating Segment Information (Schedule of Results by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Sales, net | $ 2,746,063 | $ 3,079,807 | $ 3,044,621 |
Gross profit | 858,985 | 1,030,897 | 1,109,232 |
Other (expense) income, net (Note 4) | (1,988) | 2,124 | 0 |
Interest expense, net | (62,949) | (59,317) | (25,264) |
Income (loss) before income taxes | (14,484) | 50,662 | 620,958 |
Capital expenditures | 27,312 | 41,500 | 42,434 |
Depreciation and amortization | 99,291 | 92,089 | 72,340 |
Impairment of goodwill and intangibles (Note 11) | 218,812 | 374,355 | 0 |
Change in fair value of contingent consideration | 5,855 | (27,510) | 955 |
Operating income | 50,453 | 107,855 | 646,222 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales, net | 2,746,063 | 3,079,807 | 3,044,621 |
Gross profit | 858,985 | 1,040,430 | 1,111,607 |
Capital expenditures | 25,314 | 39,093 | 38,527 |
Depreciation and amortization | 95,490 | 87,916 | 67,629 |
Business combination, step acquisition, equity interest in acquiree, remeasurement loss | 2,375 | ||
Business combination, separately recognized transactions, post combination compensation expense | (8,987) | ||
Operating income | 418,567 | 614,655 | 764,909 |
Operating Segments | The Kinetic Group | |||
Segment Reporting Information [Line Items] | |||
Sales, net | 1,452,627 | 1,757,932 | 1,737,891 |
Gross profit | 485,763 | 653,516 | 712,160 |
Capital expenditures | 12,192 | 25,886 | 25,637 |
Depreciation and amortization | 25,813 | 25,087 | 25,602 |
Operating income | 389,960 | 552,232 | 600,415 |
Operating Segments | Revelyst Outdoor Performance | |||
Segment Reporting Information [Line Items] | |||
Sales, net | 450,064 | 460,800 | 564,144 |
Gross profit | 107,511 | 105,446 | 154,565 |
Capital expenditures | 3,024 | 4,054 | 5,699 |
Depreciation and amortization | 22,844 | 22,299 | 17,705 |
Operating income | (2,590) | (825) | 58,531 |
Operating Segments | Revelyst Adventure Sports | |||
Segment Reporting Information [Line Items] | |||
Sales, net | 607,518 | 625,250 | 556,521 |
Gross profit | 161,674 | 168,878 | 156,315 |
Capital expenditures | 8,831 | 8,491 | 7,039 |
Depreciation and amortization | 36,513 | 30,371 | 18,802 |
Operating income | (7,864) | 7,305 | 54,527 |
Operating Segments | Revelyst Precision Sports Technology | |||
Segment Reporting Information [Line Items] | |||
Sales, net | 235,854 | 235,825 | 186,065 |
Gross profit | 104,037 | 112,590 | 88,567 |
Capital expenditures | 1,267 | 662 | 152 |
Depreciation and amortization | 10,320 | 10,159 | 5,520 |
Operating income | 39,061 | 55,943 | 51,436 |
Corporate and Other Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Sales, net | 0 | 0 | 0 |
Gross profit | 0 | (9,533) | (2,375) |
Capital expenditures | 1,998 | 2,407 | 3,907 |
Depreciation and amortization | 3,801 | 4,173 | 4,711 |
Impairment of goodwill and intangibles (Note 11) | 220,070 | 374,355 | |
Restructuring costs | 11,620 | ||
Transition expense | 2,941 | ||
Business combination, separately recognized transactions, post combination compensation expense | 1,328 | 11,130 | |
Change in fair value of contingent consideration | 5,855 | (27,510) | |
Operating income | (368,114) | (506,800) | (118,687) |
General and Administrative Expense | $ 140,861 | 126,185 | $ 107,325 |
Corporate and Other Reconciling Items | Fox and Simms | |||
Segment Reporting Information [Line Items] | |||
Business combination, step acquisition, equity interest in acquiree, remeasurement loss | $ 8,079 |