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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 28, 2020
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to                  
Commission file number 1-36597
Vista Outdoor Inc.
(Exact name of Registrant as specified in its charter)
Delaware
 
47-1016855
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
 
1 Vista Way
Anoka
MN
55303
(Address of Principal Executive Offices)
 
(Zip Code)
Registrant's telephone number, including area code: (763) 433-1000
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, par value $.01
 
VSTO
 
New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes     No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes     No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No 
As of July 27, 2020, there were 58,062,203 shares of the registrant's common stock outstanding.
 




TABLE OF CONTENTS
 
 
Page
PART I - Financial Information
 
PART II - Other Information
 


Table of Contents


PART I— FINANCIAL INFORMATION
ITEM 1.    FINANCIAL STATEMENTS
VISTA OUTDOOR INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(Amounts in thousands except share data)
 
June 28, 2020
 
March 31, 2020
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
36,059

 
$
31,375

Net receivables
 
324,619

 
313,517

Net inventories
 
332,210

 
331,293

Income tax receivable
 
7,649

 
7,626

Other current assets
 
21,605

 
25,200

Total current assets
 
722,142

 
709,011

Net property, plant, and equipment
 
175,569

 
184,733

Operating lease assets
 
67,237

 
69,024

Goodwill
 
83,167

 
83,167

Net intangible assets
 
301,300

 
306,100

Deferred charges and other non-current assets, net
 
39,031

 
39,254

Total assets
 
$
1,388,446

 
$
1,391,289

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable
 
115,043

 
89,996

Accrued compensation
 
26,990

 
38,806

Federal excise, use, and other taxes
 
20,892

 
19,702

Other current liabilities
 
106,202

 
98,197

Total current liabilities
 
269,127

 
246,701

Long-term debt
 
443,927

 
511,806

Deferred income tax liabilities
 
12,744

 
12,810

Long-term operating lease liabilities
 
71,686

 
73,738

Accrued pension and postemployment benefits
 
52,440

 
60,225

Other long-term liabilities
 
49,017

 
43,504

Total liabilities
 
898,941

 
948,784

Commitments and contingencies (Notes 3, 12, and 15)
 

 

Common stock — $.01 par value:
 
 
 
 
Authorized — 500,000,000 shares
 
 
 
 
Issued and outstanding — 58,066,959 shares as of June 28, 2020 and 58,038,822 shares as of March 31, 2020
 
581

 
580

Additional paid-in capital
 
1,746,919

 
1,744,096

Accumulated deficit
 
(919,572
)
 
(960,048
)
Accumulated other comprehensive loss
 
(98,774
)
 
(100,994
)
Common stock in treasury, at cost — 5,897,480 shares held as of June 28, 2020 and 5,925,617 shares held as of March 31, 2020
 
(239,649
)
 
(241,129
)
Total stockholders' equity
 
489,505

 
442,505

Total liabilities and stockholders' equity
 
$
1,388,446

 
$
1,391,289


See Notes to the Condensed Consolidated Financial Statements.

2

Table of Contents

VISTA OUTDOOR INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited)
 
 
Three months ended
(Amounts in thousands except per share data)
 
June 28, 2020
 
June 30, 2019
Sales, net
 
$
479,140

 
$
459,774

Cost of sales
 
353,772

 
364,696

Gross profit
 
125,368

 
95,078

Operating expenses:
 
 
 
 
Research and development
 
5,010

 
6,494

Selling, general, and administrative
 
72,315

 
83,909

Impairment of held-for-sale assets (Note 2)
 

 
9,429

Earnings (loss) before interest and income taxes
 
48,043

 
(4,754
)
Interest expense, net
 
(6,418
)
 
(11,124
)
Earnings (loss) before income taxes
 
41,625

 
(15,878
)
Income tax provision
 
1,149

 
737

Net income (loss)
 
$
40,476

 
$
(16,615
)
Earnings (loss) per common share:
 
 
 
 
Basic
 
$
0.70

 
$
(0.29
)
Diluted
 
$
0.69

 
$
(0.29
)
Weighted-average number of common shares outstanding:
 
 
 
 
Basic
 
58,057

 
57,722

Diluted
 
58,957

 
57,722

 
 


 


Net income (loss) (from above)
 
$
40,476

 
$
(16,615
)
Other comprehensive income, net of tax:
 
 
 
 
Pension and other postretirement benefit liabilities:
 
 
 
 
Reclassification of prior service credits for pension and postretirement benefit plans recorded to net income, net of tax benefit of $0 and $0
 
(78
)
 
(78
)
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $0 and $0
 
968

 
811

Change in derivatives, net of tax benefit (expense) of $0 and $0
 
981

 
(1,150
)
Change in cumulative translation adjustment.
 
349

 
764

Total other comprehensive income
 
2,220

 
347

Comprehensive income (loss)
 
$
42,696

 
$
(16,268
)

See Notes to the Condensed Consolidated Financial Statements.

3

Table of Contents

VISTA OUTDOOR INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
 
 
Three months ended
(Amounts in thousands)
 
June 28, 2020
 
June 30, 2019
Operating Activities:
 
 
 
 
Net income (loss)
 
$
40,476

 
$
(16,615
)
Adjustments to net income (loss) to arrive at cash provided by (used for) operating activities:
 
 
 
 
Depreciation
 
11,533

 
11,290

Amortization of intangible assets
 
4,953

 
5,097

Impairment of held-for-sale assets (Note 2)
 

 
9,429

Amortization of deferred financing costs
 
377

 
580

Deferred income taxes
 
(94
)
 
(168
)
Loss on disposal of property, plant, and equipment
 
195

 

Share-based compensation
 
4,404

 
2,190

Changes in assets and liabilities:
 
 
 
 
Net receivables
 
(10,986
)
 
(4,749
)
Net inventories
 
(761
)
 
(53,811
)
Accounts payable
 
26,526

 
29,098

Accrued compensation
 
(11,820
)
 
(11,026
)
Accrued income taxes
 
982

 
992

Federal excise, use, and other taxes
 
1,180

 
(881
)
Pension and other postretirement benefits
 
(6,894
)
 
101

Other assets and liabilities
 
17,292

 
(7,695
)
Cash provided by (used for) operating activities
 
77,363

 
(36,168
)
Investing Activities:
 
 
 
 
Capital expenditures
 
(4,472
)
 
(9,212
)
Proceeds from the disposition of property, plant, and equipment
 
20

 
85

Cash used for investing activities
 
(4,452
)
 
(9,127
)
Financing Activities:
 
 
 
 
Borrowings on lines of credit
 
9,076

 
120,239

Payments on lines of credit
 
(77,332
)
 
(60,240
)
Payments made on long-term debt
 

 
(4,834
)
Payments made for debt issuance costs
 

 
(103
)
Payment of employee taxes related to vested stock awards
 
(100
)
 
(297
)
Cash (used for) provided by financing activities
 
(68,356
)
 
54,765

Effect of foreign exchange rate fluctuations on cash
 
129

 
190

Increase in cash and cash equivalents
 
4,684

 
9,660

Cash and cash equivalents at beginning of period
 
31,375

 
21,935

Cash and cash equivalents at end of period
 
$
36,059

 
$
31,595

Supplemental Cash Flow Disclosures:
 
 
 
 
Non-cash investing activity:
 
 
 
 
Capital expenditures included in accounts payable
 
$
1,034

 
$
2,531

 
See Notes to the Condensed Consolidated Financial Statements.

4

Table of Contents

VISTA OUTDOOR INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(unaudited)
 
 
Common Stock $.01 Par Value
 
 
 
 
 
 
 
 
 
 
(Amounts in thousands except share data)
 
Shares
 
Amount
 
Additional
Paid-In
Capital
 
Accumulated Deficit
 
Accumulated
Other
Comprehensive
Loss
 
Treasury
Stock
 
Total
Equity
Balance, March 31, 2020
 
58,038,822

 
$
580

 
$
1,744,096

 
$
(960,048
)
 
$
(100,994
)
 
$
(241,129
)
 
$
442,505

Comprehensive income
 

 

 

 
40,476

 
2,220

 

 
42,696

Exercise of stock options
 
5,000

 

 
(203
)
 

 

 
203

 

Share-based compensation
 

 

 
4,404

 

 

 

 
4,404

Restricted stock vested and shares withheld
 
21,824

 

 
(1,324
)
 

 

 
1,224

 
(100
)
Employee stock purchase plan
 

 

 

 

 

 

 

Other
 
1,313

 
1

 
(54
)
 

 

 
53

 

Balance, June 28, 2020
 
58,066,959

 
$
581

 
$
1,746,919

 
$
(919,572
)
 
$
(98,774
)
 
$
(239,649
)
 
$
489,505

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, March 31, 2019
 
57,710,934

 
$
577

 
$
1,752,419

 
$
(804,969
)
 
$
(82,967
)
 
$
(256,020
)
 
$
609,040

Comprehensive loss
 

 

 

 
(16,615
)
 
347

 

 
(16,268
)
Share-based compensation
 

 

 
2,190

 

 

 

 
2,190

Restricted stock vested and shares withheld
 
23,059

 

 
(1,534
)
 

 

 
1,428

 
(106
)
Employee stock purchase plan
 
11,028

 

 
(358
)
 

 

 
451

 
93

Other
 
724

 

 
43

 

 

 
(43
)
 

Balance, June 30, 2019
 
57,745,745

 
$
577

 
$
1,752,760

 
$
(821,584
)
 
$
(82,620
)
 
$
(254,184
)
 
$
594,949

See Notes to the Condensed Consolidated Financial Statements.

5

Table of Contents

VISTA OUTDOOR INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
Three Months Ended June 28, 2020
(Amounts in thousands except share and per share data unless otherwise indicated)
1. 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 and shooting sports products. We conduct our operations through two reportable segments, Shooting Sports and Outdoor Products. We are headquartered in Anoka, Minnesota and have 14 manufacturing and distribution facilities in the United States, Canada, Mexico, and Puerto Rico along with international customer service, sales and sourcing operations in Asia, Canada, and Europe. Vista Outdoor was incorporated in Delaware in 2014. The condensed consolidated financial statements reflect our financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States.

This Quarterly Report on Form 10-Q should be read in conjunction with our consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020 (“fiscal 2020”).

Basis of Presentation—Our unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of the Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain disclosures and other financial information that normally are required by accounting principles generally accepted in the United States have been condensed or omitted. Our accounting policies are described in the notes to the consolidated financial statements in our Annual Report on Form 10-K for fiscal 2020. Management is responsible for the condensed consolidated financial statements included in this report, which are unaudited but, in the opinion of management, include all adjustments necessary for a fair presentation of our financial position as of June 28, 2020 and March 31, 2020, our results of operations for the three months ended June 28, 2020 and June 30, 2019, and our cash flows for the three months ended June 28, 2020 and June 30, 2019.

New Accounting Pronouncements

Our accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements included in our fiscal year 2020 Annual Report on Form 10-K. Such significant accounting policies are applicable for periods prior to the following new accounting standards.

Accounting Standards Adopted During this Fiscal Year

On April 1, 2020, we adopted ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("Topic 326"). This new standard is intended to improve financial reporting by requiring more timely recording of credit losses on our trade account receivable and requires the measurement of all expected credit losses based on historical experience, current conditions, and reasonable and supportable forecasts. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements and disclosures. For further information, see Note 7, Receivables.

On April 1, 2020, we adopted ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement." The amendments in this ASU removed, modified or added to the disclosure requirements for fair value measurements in ASC Topic 820, "Fair Value Measurement" ("Topic 820"). The adoption of this ASU did not have a material impact on our condensed consolidated financial statements and disclosures.

Accounting Standards Yet to Be Adopted

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021, although early adoption is permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We are currently evaluating the impacts of the provisions of ASU 2019-12 on our consolidated financial statements.


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2. 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 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—Significant inputs to the valuation model are unobservable.
The following section describes the valuation methodologies we use to measure our financial instruments at fair value on a recurring basis:
Interest Rate Swaps—We periodically enter into floating-to-fixed interest rate swap agreements in order to hedge our forecasted interest payments on our outstanding variable-rate debt. The fair value of those swaps is determined using a pricing model based on observable inputs for similar instruments and other market assumptions. We consider these to be Level 2 instruments. See Note 4, Derivative Financial Instruments, for additional information.
Commodity Price Hedging Instruments—We periodically enter into commodity forward contracts to hedge our exposure to price fluctuations on certain commodities we use for raw material components in our manufacturing process. When actual commodity prices exceed the fixed price provided by these contracts, we receive this difference from the counterparty, and when actual commodity prices are below the contractually provided fixed price, we pay this difference to the counterparty. We consider these to be Level 2 instruments. See Note 4, Derivative Financial Instruments, for additional information.
Note Receivable—In connection with the sale of our Firearms business in July 2019, we received a $12,000 interest-free, five-year pre-payable promissory note due June 2024. Based on the general market conditions and the credit quality of the buyer at the time of the sale, we discounted the Note Receivable at an effective interest rate of 10% and estimated fair value using a discounted cash flow approach. We consider this to be a Level 3 instrument. See Note 7, Receivables, for additional information.
Disclosures about the Fair Value of Financial Instruments
The carrying amount of our receivables, inventory, accounts payable and accrued liabilities at June 28, 2020 and March 31, 2020, approximates fair value because of the short maturity of these instruments. The carrying values of cash and cash equivalents at June 28, 2020 and March 31, 2020 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:
 
 
June 28, 2020
 
March 31, 2020
 
 
Carrying
amount
 
Fair
value
 
Carrying
amount
 
Fair
value
Fixed-rate debt (1)
 
$
350,000

 
$
344,750

 
$
350,000

 
$
284,375

Variable-rate debt (2)
 
99,000

 
99,000

 
167,256

 
167,256


(1) In fiscal 2016, we issued $350,000 aggregate principal amount of 5.875% Senior Notes (the "5.875% Notes") that mature on October 1, 2023. These notes are unsecured and senior obligations. The fair value of the fixed-rate long-term debt is calculated based on current market rates for debt of the same risk and maturities, based on market quotes for each issuance. We consider these to be Level 2 instruments. See Note 12, Long-term Debt, for information on long-term debt, including certain risks and uncertainties.
(2) The carrying value of the amounts outstanding under our ABL Revolving Credit Facility approximates the fair value due to the short-term nature of these obligations. 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 12, Long-term Debt, for additional information on our credit facilities, including related certain risks and uncertainties.

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We measure certain nonfinancial assets at fair value on a nonrecurring basis if certain indicators are present. These assets include long-lived assets that are written down to fair value when they are held for sale or determined to be impaired. During the three months ended June 28, 2020 there were no impairments recorded related to our assets that are measured at fair value on a nonrecurring basis. During the three months ended June 30, 2019, we recognized an impairment of $9,429 related to an expected loss on the sale of the held-for-sale assets of our Firearms business.
3. Leases
We lease certain warehouse and distribution space, manufacturing space, office space, retail locations, equipment and vehicles. All of these leases are classified as operating leases. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. These rates are assessed on a quarterly basis. The operating lease assets also include any lease payments made less lease incentives. Leases with an initial term of twelve months or less are not recorded on the balance sheet. For operating leases, expense is recognized on a straight-line basis over the lease term. Variable lease payments associated with our leases are recognized upon occurrence of the event, activity, or circumstance in the lease agreement on which those payments are assessed. Tenant improvement allowances are recorded as leasehold improvements with an offsetting adjustment included in our calculation of our operating lease assets.
Many leases include one or more options to renew, with renewal terms that can extend the lease term for three years or more. The exercise of lease renewal options is at our sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term.
The amounts of assets and liabilities related to our operating leases were as follows:
 
 
Balance Sheet Caption
 
June 28, 2020
 
March 31, 2020
Assets:
 
 
 
 
 
 
Operating lease assets
 
Operating lease assets
 
$
67,237

 
$
69,024

 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Current:
 
 
 
 
 
 
Operating lease liabilities
 
Other current liabilities
 
$
10,758

 
$
10,780

Long-term:
 
 
 
 
 
 
Operating lease liabilities
 
Long-term operating lease liabilities
 
71,686

 
73,738

Total lease liabilities
 
 
 
$
82,444

 
$
84,518


The components of lease expense are recorded to cost of sales and selling, general and administration expenses in the unaudited condensed consolidated statements of comprehensive income (loss). The components of lease expense were as follows:
 
 
Three months ended
 
 
June 28, 2020
 
June 30, 2019
Fixed operating lease costs (1)
 
$
5,059

 
$
5,017

Variable operating lease costs
 
582

 
535

Sublease income
 
(388
)
 
(281
)
Net Lease costs
 
$
5,253

 
$
5,271

(1) Includes short-term leases, which are immaterial.
 
 
June 28, 2020
 
March 31, 2020
Weighted Average Remaining Lease Term (Years):
 
 
 
 
Operating leases
 
9.44

 
9.55

 
 
 
 
 
Weighted Average Discount Rate:
 
 
 
 
Operating leases
 
8.66
%
 
8.64
%


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The approximate minimum lease payments under non-cancelable operating leases as of June 28, 2020 are as follows:
Remainder of fiscal 2021
 
$
13,151

Fiscal 2022
 
15,105

Fiscal 2023
 
13,379

Fiscal 2024
 
11,748

Fiscal 2025
 
10,718

Thereafter
 
60,714

Total lease payments
 
124,815

Less imputed interest
 
(42,371
)
Present value of lease liabilities
 
$
82,444


Supplemental cash flow information related to leases is as follows:
 
 
Three months ended
 
 
June 28, 2020
 
June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
 
Operating cash flows - operating leases
 
$
4,652

 
$
5,205

Operating lease assets obtained in exchange for lease liabilities:
 
 
 
 
Operating leases
 
815

 
701


4. Derivative Financial Instruments
In the normal course of business, we are exposed to market risks arising from adverse changes in:
commodity prices affecting the cost of raw materials, and
interest rates
We record our interest rate swaps and commodity forward contracts that are accounted for as designated hedges pursuant to ASC Topic 815, “Derivatives and Hedging” ("ASC Topic 815"). ASC Topic 815 requires that an entity recognize all derivatives as either assets or liabilities on the balance sheet, measure those instruments at fair value and recognize changes in the fair value of derivatives in earnings in the period of change unless the derivative qualifies as designated cash flow hedge that offsets certain exposures. Certain criteria must be satisfied in order for derivative financial instruments to be classified and accounted for as a cash flow hedge. Derivatives that are not elected for hedge accounting treatment are recorded immediately in earnings.
From time to time, we have entered into floating-to-fixed interest rate swap agreements in order to hedge our forecasted interest payments on our outstanding variable-rate debt. Gains and losses from the remeasurement of our interest rate swap contract agreement are recorded as a component of accumulated other comprehensive income (loss) and released into earnings as a component of interest expense during the period in which the hedged transaction takes place. There are no cash flow hedge interest rate swaps in place as of June 28, 2020.
We entered into various commodity forward contracts during fiscal 2021 and 2020. These contracts are used to hedge our exposure to price fluctuations on lead we purchase for raw material components in our ammunition manufacturing process and are designated and qualify as effective cash flow hedges. The effectiveness of cash flow hedge contracts is assessed quantitatively at inception and qualitatively thereafter considering transactions critical terms and counterparty credit quality.
The gains and losses on these hedges are included in accumulated other comprehensive income (loss) and are reclassified into earnings at the time the forecasted revenue or expense is recognized. The 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 June 28, 2020, we had outstanding lead forward contracts on 25.25 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 income (loss) and recognized in earnings. The asset related to the lead forward contracts is immaterial and is recorded as part of other non-current assets. The liability related to the lead forward contracts is immaterial and is recorded as part of other current liabilities.

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5. Revenue Recognition

The following tables disaggregate our net sales by major category:
 
 
Three months ended
 
 
June 28, 2020
 
June 30, 2019(1)
 
 
Shooting Sports
 
Outdoor Products
 
Total
 
Shooting Sports
 
Outdoor Products
 
Total
Ammunition
 
$
261,762

 
$

 
$
261,762

 
$
213,810

 
$

 
$
213,810

Firearms
 

 

 

 
24,017

 

 
24,017

Hunting and Shooting
 
72,396

 

 
72,396

 
70,970

 

 
70,970

Action Sports
 

 
72,859

 
72,859

 

 
67,909

 
67,909

Outdoor Recreation (2)
 

 
72,123

 
72,123

 

 
83,068

 
83,068

Total
 
$
334,158

 
$
144,982

 
$
479,140

 
$
308,797

 
$
150,977

 
$
459,774

 
 
 
 
 
 
 
 
 
 
 
 
 
Geographic Region:
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
$
307,388

 
$
115,017

 
$
422,405

 
$
267,823

 
$
113,333

 
$
381,156

Rest of the World
 
26,770

 
29,965

 
56,735

 
40,974

 
37,644

 
78,618

Total
 
$
334,158

 
$
144,982

 
$
479,140

 
$
308,797

 
$
150,977

 
$
459,774


(1) We changed our operating segments during the fourth quarter of fiscal 2020 (see Note 17, Operating Segment Information). Accordingly, prior period amounts have been reclassified to conform with the current period presentation.
(2) Outdoor Recreation includes the operating segments: Hydration, Outdoor Cooking, and Golf.
Product Sales
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.
Typically, our contracts require customers to pay within 30-60 days of product delivery with a discount available to some customers for early payment. In some cases, we offer extended payment terms to customers. However, we do not consider these extended payment terms to be a significant financing component of the contract because the payment terms are less than a year.
In limited circumstances, our contract with a customer may have shipping terms that indicate a transfer of control of the products upon their arrival at the destination rather than upon shipment. In those cases, we recognize revenue only when the product reaches the customer destination, which may require us to estimate the timing of transfer of control based on the expected delivery date. In all cases, however, we consider our costs related to shipping and handling to be a cost of fulfilling the contract with the customer.
The total amount of revenue we recognize for the sale of our products reflects various sales adjustments for discounts, returns, refunds, allowances, rebates, and other customer incentives. These sales adjustments can vary based on market conditions, customer preferences, timing of customer payments, volume of products sold, and timing of new product launches. These adjustments require management to make reasonable estimates of the amount we expect to receive from the customer. We estimate sales adjustments by customer or by product category on the basis of our historical experience with similar contracts with customers, adjusted as necessary to reflect current facts and circumstances and our expectations for the future. Sales taxes, firearms and ammunition excise tax and other similar taxes are excluded from revenue.
Incentives in the form of cash paid to the customer (or a reduction of a customer cash payment to us) typically are recognized as a reduction of sales unless the incentive is for a distinct benefit that we receive from the customer (e.g., advertising or marketing).
We pay commissions to some of our employees based on agreed-upon sales targets. We recognize the incremental costs of obtaining a contract as an expense when incurred because our sales contracts with commissions are a year or less.

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6. Earnings Per Share
The computation of basic earnings per share ("EPS") is based on the weighted average number of shares that were outstanding during the period. The computation of diluted EPS is based on the number of basic weighted average shares outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares, such as common stock to be issued upon exercise of options, contingently issuable shares and restricted stock units, using the treasury stock method.
The following tables set forth the computation of basic and diluted earnings per share:
 
 
Three months ended
(Amounts in thousands except per share data unless otherwise indicated)
 
June 28, 2020
 
June 30, 2019
Numerator:
 
 
 
 
Net income (loss)
 
$
40,476

 
$
(16,615
)
Denominator:
 
 
 
 
Weighted-average number of common shares outstanding basic:
 
58,057

 
57,722

Dilutive effect of share-based awards (1)
 
900

 

Diluted shares
 
58,957

 
57,722

Earnings (loss) per common share:
 
 

 
 

Basic
 
$
0.70

 
$
(0.29
)
Diluted
 
$
0.69

 
$
(0.29
)

(1) Potentially dilutive securities, which were not included in the computation of diluted earnings per share, because either the effect would have been anti-dilutive, or the options’ exercise prices were greater than the average market price of the common stock, were 528 for the three months ended June 28, 2020. Due to the loss from continuing operations for the three months ended June 30, 2019, there are no common shares added to calculate dilutive EPS because the effect would be antidilutive.
7. Receivables
Our trade accounts receivable are recorded at net realizable value, which includes an appropriate allowance for estimated credit losses as described in Note 1, Significant Accounting Policies. Under ASC Topic 326, the “expected credit loss” model replaces the “incurred loss” model and will require consideration of a broader range of information to estimate expected credit losses over the life of the asset. Our prior methodology for estimating credit losses on trade accounts receivable did not differ significantly from the new requirements of ASC 326. 
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. Our estimate of credit losses includes expected current and future economic and market conditions surrounding the COVID-19 pandemic which did not significantly impact our allowance.
Net receivables are summarized as follows:
 
 
June 28, 2020
 
March 31, 2020
Trade receivables
 
$
335,484

 
$
323,436

Other receivables
 
4,286

 
4,841

Less: allowance for estimated credit losses and discounts
 
(15,151
)
 
(14,760
)
Net receivables
 
$
324,619

 
$
313,517


Walmart represented 15% and 13% of the total trade receivables balance as of June 28, 2020 and March 31, 2020, respectively. No other customer represented more than 10% of our total trade receivables balance as of June 28, 2020 or March 31, 2020.

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The following provides a reconciliation of the activity related to the allowance for estimated credit losses and discounts during the three months ended June 28, 2020:
Balance, March 31, 2020
 
$
14,760

Provision for credit losses
 
707

Write-off of uncollectible amounts, net of recoveries
 
(261
)
Discounts and other adjustments
 
(55
)
Balance, June 28, 2020
 
$
15,151


Note Receivable is summarized as follows:
 
 
June 28, 2020
 
March 31, 2020
Principal
 
$
12,000

 
$
12,000

Less: unamortized discount
 
(3,804
)
 
(3,990
)
Note receivable, net, included within Deferred charges and other non-current assets
 
$
8,196

 
$
8,010


8. Inventories
Current net inventories consist of the following:
 
 
June 28, 2020
 
March 31, 2020
Raw materials
 
$
92,636

 
$
85,609

Work in process
 
35,514

 
33,622

Finished goods
 
204,060

 
212,062

Net inventories
 
$
332,210

 
$
331,293


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 $27,925 and $27,984 as of June 28, 2020 and March 31, 2020, respectively.
9. Accumulated Other Comprehensive Loss (AOCL)
The components of AOCL, net of income taxes, are as follows:
 
 
June 28, 2020
 
March 31, 2020
Derivatives
 
$
(445
)
 
$
(1,426
)
Pension and other postretirement benefits liabilities
 
(92,463
)
 
(93,353
)
Cumulative translation adjustment
 
(5,866
)
 
(6,215
)
Total AOCL
 
$
(98,774
)
 
$
(100,994
)


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The following tables detail 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:
 
 
Three months ended June 28, 2020
 
 
Derivatives
 
Pension and other postretirement benefits liabilities
 
Cumulative translation adjustment
 
Total
Beginning balance in AOCL
 
$
(1,426
)
 
$
(93,353
)
 
$
(6,215
)
 
$
(100,994
)
Change in fair value of derivatives
 
(5
)
 

 

 
(5
)
Net losses reclassified from AOCL
 
986

 

 

 
986

Net actuarial losses reclassified from AOCL (1)
 

 
968

 

 
968

Prior service costs reclassified from AOCL (1)
 

 
(78
)
 

 
(78
)
Net change in cumulative translation adjustment
 

 

 
349

 
349

Ending balance in AOCL
 
$
(445
)
 
$
(92,463
)
 
$
(5,866
)
 
$
(98,774
)
(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.
 
 
Three months ended June 30, 2019
 
 
Derivatives
 
Pension and other postretirement benefits liabilities
 
Cumulative translation adjustment
 
Total
Beginning balance in AOCL
 
$
735

 
$
(74,670
)
 
$
(9,032
)
 
$
(82,967
)
Change in fair value of derivatives

 
(1,150
)
 

 

 
(1,150
)
Net actuarial losses reclassified from AOCL (1)
 

 
811

 

 
811

Prior service costs reclassified from AOCL (1)
 

 
(78
)
 

 
(78
)
Net change in cumulative translation adjustment
 

 
 
 
764

 
764

Ending balance in AOCL
 
$
(415
)
 
$
(73,937
)
 
$
(8,268
)
 
$
(82,620
)

(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.
10. Goodwill and Intangible Assets
There were no changes in the carrying amount of goodwill during the three months ended June 28, 2020. The entire goodwill balance of $83,167 as of June 28, 2020 and March 31, 2020 is allocated to our Shooting Sports segment.

Intangible assets by major asset class consisted of the following:
 
 
June 28, 2020
 
March 31, 2020
 
 
Gross
carrying
amount
 
Accumulated
amortization
 
Total
 
Gross
carrying
amount
 
Accumulated
amortization
 
Total
Trade names
 
$
48,360

 
$
(15,361
)
 
$
32,999

 
$
48,360

 
$
(14,428
)
 
$
33,932

Patented technology
 
16,684

 
(10,708
)
 
5,976

 
16,684

 
(10,490
)
 
6,194

Customer relationships and other
 
238,483

 
(87,261
)
 
151,222

 
238,220

 
(83,349
)
 
154,871

Total
 
303,527

 
(113,330
)
 
190,197

 
303,264

 
(108,267
)
 
194,997

Non-amortizing trade names
 
111,103

 

 
111,103

 
111,103

 

 
111,103

Net intangible assets
 
$
414,630

 
$
(113,330
)
 
$
301,300

 
$
414,367

 
$
(108,267
)
 
$
306,100



Amortization expense for the three months ended June 28, 2020 and June 30, 2019 was $4,953 and $5,097, respectively.

As of June 28, 2020, we expect amortization expense related to these assets to be as follows:
Remainder of fiscal 2021
 
$
14,912

Fiscal 2022
 
19,831

Fiscal 2023
 
19,715

Fiscal 2024
 
19,663

Fiscal 2025
 
19,645

Thereafter
 
96,431

Total
 
$
190,197




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11. Other Current and Non-Current Liabilities
Other current and non-current liabilities consisted of the following:
 
 
June 28, 2020
 
March 31, 2020
Other current liabilities:
 
 
 
 
Rebates
 
$
11,927

 
$
16,225

Accrual for in-transit inventory
 
18,557

 
11,064

Other
 
75,718

 
70,908

Total other current liabilities
 
$
106,202

 
$
98,197

 
 
 
 
 
Other non-current liabilities:
 
 
 
 
Non-current portion of accrued income tax liability
 
$
31,158

 
$
30,159

Other
 
17,859

 
13,345

Total other non-current liabilities
 
$
49,017

 
$
43,504


We provide consumer warranties against manufacturing defects on certain products with warranty periods ranging from one year to the expected lifetime of the product. The estimated costs of such product warranties are recorded at the time the sale is recorded based upon actual past experience, our current production environment as well as specific and identifiable warranties as applicable. The warranty liability recorded at each balance sheet date reflects the estimated liability for warranty coverage for products delivered based on historical information and current trends.
The following is a reconciliation of the changes in our product warranty liability during the periods presented:
Balance, March 31, 2020
 
 
 
$
9,149

Payments made
 
 
 
(858
)
Warranties issued
 
 
 
771

Changes related to pre-existing warranties and other adjustments
 
 
 
(82
)
Balance, June 28, 2020
 
 
 
$
8,980


12. Long-term Debt
Long-term debt consisted of the following:
 
 
June 28, 2020
 
March 31, 2020
ABL Revolving Credit Facility
 
$
99,000

 
$
167,256

5.875% Senior Notes
 
350,000

 
350,000

Principal amount of long-term debt
 
449,000

 
517,256

Less: unamortized deferred financing costs
 
(5,073
)
 
(5,450
)
Carrying amount of long-term debt
 
$
443,927

 
$
511,806



Credit Agreements—In fiscal 2019, we refinanced our Amended and Restated Credit Agreement dated April 1, 2016, by entering into the New Credit Facilities, which provide for (a) a $450,000 senior secured asset-based revolving credit facility (the “ABL Revolving Credit Facility”), comprised of $20,000 in first-in, last-out (“FILO”) revolving credit commitments and $430,000 in non-FILO revolving credit commitments, (b) a $109,343 senior secured asset-based term loan facility (the “Term Loan”) and (c) the $40,000 Junior Term Loan. The amount available under the ABL Revolving Credit Facility is the lesser of the total commitment of $450,000 or a borrowing base based on percentages of eligible receivables, inventory, and cash, minus certain reserves. As of June 28, 2020, based on the borrowing base less outstanding borrowings of $99,000 and outstanding letters of credit of $21,692, the amount available to us under the ABL Revolving Credit Facility was $289,705.
The New Credit Facilities each mature on November 19, 2023 (the “Maturity Date”), subject to a customary springing maturity in respect of the 5.875% Notes due 2023. The Term Loan was subject to quarterly principal repayments of $4,834 on the first business day of each January, April, July, and October, with the remaining balance due on the Maturity Date. The Term Loan and the Junior Term Loan have been paid in full, and have no future required principal payments. Debt issuance costs of

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approximately $6,300 are being amortized over the term of the New Credit Facilities. This expense is included in interest expense in the condensed consolidated statements of comprehensive income (loss).
The FILO commitments under the ABL Revolving Credit Facility are subject to reductions of $1,667 on the first business day of each fiscal quarter beginning on April 1, 2019. The balance of the FILO revolving credit commitment as of June 28, 2020 was $11,667. Any outstanding revolving loans under the ABL Revolving Credit Facility will be payable in full on the Maturity Date.
As of June 28, 2020, borrowings under the ABL Revolving Credit Facility bear interest at a rate equal to, in the case of (a) non-FILO revolving credit loans, either the sum of a base rate plus a margin ranging from 0.25% to 0.75% or the sum of a LIBO rate plus a margin ranging from 1.25% to 1.75%, and (b) FILO revolving credit loans, a rate that is 1.00% higher than the rate paid on the non-FILO revolving credit loans. All such rates vary based on our Average Excess Availability under the ABL Revolving Credit Facility. As of June 28, 2020, the margin under the (1) ABL Revolving Credit Facility was, in the case of (a) non-FILO revolving credit loans, 0.50% for base rate loans and 1.50% for LIBO rate loans and (b) FILO revolving credit loans, 1.50% for base rate loans and 2.50% for LIBO rate loans. The weighted average interest rate for our borrowings under the New Credit Facilities as of June 28, 2020 was 1.99%, excluding the impact of the interest rate swap that was in place during the quarter. See Note 4, Derivative Financial Instruments, for additional information. We pay a commitment fee on the unused commitments under the ABL Revolving Credit Facility of 0.25% per annum.
Substantially all domestic tangible and intangible assets of Vista Outdoor and our domestic subsidiaries, as well as the tangible and intangible assets of Advanced Arrow S. de R.L. de C.V. and Hydrosport, S. de R.L. de C.V., are pledged as collateral under the New Credit Facilities.
5.875% Notes—In fiscal 2016, we issued $350,000 aggregate principal amount of 5.875% Senior Notes (the "5.875% Notes") that mature on October 1, 2023. These notes are unsecured and senior obligations. Interest on the notes is payable semi-annually in arrears on April 1 and October 1 of each year. We have the right to redeem some or all of these notes from time to time at specified redemption prices. Debt issuance costs of approximately $4,300 are being amortized to interest expense over eight years, the term of the notes.
Rank and guarantees—The New Credit Facilities' obligations are guaranteed on a secured basis, jointly and severally and fully and unconditionally by substantially all of our domestic subsidiaries and by Advanced Arrow S. de R.L. de C.V. and Hydrosport, S. de R.L. de C.V. Vista Outdoor (the parent company issuer) has no independent assets or operations. We own 100% of all of these guarantor subsidiaries. The 5.875% Notes are senior unsecured obligations of Vista Outdoor and will rank equally in right of payment with any future senior unsecured indebtedness and senior in right of payment to any future subordinated indebtedness of Vista Outdoor. The 5.875% Notes are fully and unconditionally guaranteed, jointly and severally, by our existing and future domestic subsidiaries that guarantee indebtedness under our New Credit Facilities or that guarantee certain of our other indebtedness, or indebtedness of any subsidiary guarantor, in an aggregate principal amount in excess of $50,000. These guarantees are senior unsecured obligations of the applicable subsidiary guarantors. The guarantee by any subsidiary guarantor of our obligations in respect of the 5.875% Notes will be released in any of the following circumstances:
if, as a result of the sale of its capital stock, such subsidiary guarantor ceases to be a restricted subsidiary
if such subsidiary guarantor is designated as an “Unrestricted Subsidiary”
upon defeasance or satisfaction and discharge of the 5.875% Notes
if such subsidiary guarantor has been released from its guarantees of indebtedness under the New Credit Facilities and all capital markets debt securities
Covenants
New Credit Facilities— Our New Credit Facilities impose restrictions on us, including limitations on our ability to pay cash dividends, incur debt or liens, redeem or repurchase Vista Outdoor stock, enter into transactions with affiliates, make investments, merge or consolidate with others or dispose of assets. The financial covenants of the New Credit Facilities are to maintain Excess Availability under the ABL Revolving Credit Facility of $42,500 at all times. If Excess Availability falls below $42,500 we must maintain a Consolidated Fixed Charge Coverage Ratio ("FCCR"), as defined below, of not less than 1.00:1.00. As noted above, the Excess Availability under the ABL Revolving Credit Facility was $289,705 as of June 28, 2020. If we do not comply with the covenants in any of the New Credit Facilities, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under each of the New Credit Facilities.
The FCCR is Covenant EBITDA ("earnings before interest, taxes, depreciation, and amortization"), (which includes adjustments for items such as non-recurring or extraordinary items, non-cash charges related to stock-based compensation, and intangible asset impairment charges, as well as adjustments for acquired or divested business units on a pro forma basis) less

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capital expenditures (subject to certain adjustments) for the past four fiscal quarters, divided by fixed charges (which includes debt principal and interest payments made over the past four fiscal quarters; plus income tax payments and restricted payments over the past four fiscal quarters).
5.875% Notes—The indenture governing the 5.875% Notes contains covenants that, among other things, limit our ability to incur or permit to exist certain liens, sell, transfer or otherwise dispose of assets, consolidate, amalgamate, merge or sell all or substantially all of our assets, enter into transactions with affiliates, enter into agreements restricting our subsidiaries’ ability to pay dividends, incur additional indebtedness, pay dividends or make other distributions or repurchase or redeem our capital stock, prepay, redeem or repurchase certain debt and make loans and investments.
The New Credit Facilities and the indenture governing the 5.875% Notes contain cross-default provisions so that noncompliance with the covenants within one debt agreement could also cause a default under the other debt agreements. As of June 28, 2020, we were in compliance with the covenants of all of the debt agreements. However, we cannot provide assurance that we will be able to comply with such 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 New Credit Facilities may prevent us from drawing under the ABL Revolving Credit Facility and may result in an event of default under the New Credit Facilities, which default may allow the creditors to accelerate the related indebtedness and the indebtedness under our 5.875% Notes and proceed against the collateral that secures the indebtedness. We may not have sufficient liquidity to repay the indebtedness in such circumstances.
Cash paid for interest on debt—Cash paid for interest on debt, including commitment fees and prepayment premium fees, for the three months ended June 28, 2020 and June 30, 2019 totaled $7,302 and $15,654, respectively.
13. Employee Benefit Plans

During the three months ended June 28, 2020, we recognized an aggregate net benefit for employee defined benefit plans of $21 compared to $101 during the three months ended June 30, 2019. The decrease in income was primarily due to the lower than expected return on plan assets and increased loss amortization, partially offset by decreased interest rates.

Employer contributions and distributions—We made the entire fiscal 2021 required contributions to the pension trust during the three months ended June 28, 2020 of $7,100, and $0 in contributions were required for the three months ended June 30, 2019. For those same periods, we made no contributions to our other postretirement benefit plans, and we made no distributions to retirees under the non-qualified supplemental executive retirement plan.

No additional contributions are required to be made to the pension trust for the remainder of fiscal 2021. No additional contributions are required, and we are not expecting to make any contributions to our other postretirement benefit plans, or directly to retirees under our non-qualified supplemental executive retirement plans for the remainder of fiscal 2021.

14. Income Taxes
Our provision for income taxes includes federal, foreign, and state income taxes. Income tax provisions for interim periods are based on the year-to-date effective tax rate for both the current and prior year.
The income tax provisions for the three months ended June 28, 2020 and June 30, 2019 represent effective tax rates of 2.8% and (4.6)%, respectively. The increase in the rate from the prior year quarter is primarily caused by impairment of held-for-sale assets in the prior year quarter, offset by a decrease in the valuation allowance due to operating income in the current quarter.
The effective tax rate for the three months ended June 28, 2020 was lower than the statutory rate primarily because of the decreased valuation allowance. The effective tax rate for the three months ended June 30, 2019 was lower than the statutory rate primarily because of increased valuation allowance and interest expense on uncertain tax positions. The operating loss in the prior year quarter caused the unfavorable tax adjustments to decrease the rate.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in tax years 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The CARES Act also contains modifications on the limitation of business interest for tax years beginning in 2019 and 2020. The modifications to Section 163(j) increase the allowable interest expense deduction. We anticipate that the CARES Act will impact our tax provision for the tax year ended March 31, 2021 due to the increased allowable interest expense deduction.
On February 9, 2015, we entered into a Tax Matters Agreement with Orbital ATK that governs the respective rights, responsibilities and obligations of Vista Outdoor and Orbital ATK following the distribution of all of the shares of our common stock on a pro rata basis to the holders of Alliant Techsystems Inc. common stock (the “Spin-Off”) with respect to tax liabilities and benefits, tax attributes, tax contests and other tax sharing regarding U.S. federal, state, local and foreign income taxes, other tax matters and related tax returns. We have joint and several liability with Orbital ATK to the IRS for the consolidated U.S.

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federal income taxes of the Orbital ATK consolidated group relating to the taxable periods in which we were part of that group. However, the Tax Matters Agreement specifies the portion, if any, of this tax liability for which we bear responsibility, and Orbital ATK agrees to indemnify us against any amounts for which we are not responsible. The Tax Matters Agreement also provides special rules for allocating tax liabilities in the event that the Spin-Off is determined not to be tax-free. Though valid between the parties, the Tax Matters Agreement is not binding on the IRS.
The allocation of tax liabilities for the period from April 1, 2014 through the date of the Spin-Off was settled on June 15, 2018. Orbital ATK paid Vista Outdoor $13,047 to settle this matter, which was reflected as an adjustment to the distribution from Vista Outdoor to Orbital ATK at the time of the Spin-Off.
Prior to the Spin-Off, Orbital ATK or one of its subsidiaries filed income tax returns in the U.S. federal and various U.S. state jurisdictions that included Vista Outdoor. In addition, certain of our subsidiaries filed income tax returns in foreign jurisdictions. Since the Spin-Off, we file income tax returns in the U.S. federal, foreign and various U.S. state jurisdictions. With a few exceptions, Orbital ATK and its subsidiaries and Vista are no longer subject to U.S. federal, state and local, or foreign income tax examinations by tax authorities prior to 2013. The IRS has completed the audits of Orbital ATK through fiscal 2014 and is currently auditing Orbital ATK's tax return for fiscal 2015. The IRS has also completed the audit of our tax return for the period that began after the Spin-Off (February 9, 2015) and ended on March 31, 2015. We believe appropriate provisions for all outstanding issues relating to our portion of these returns have been made for all remaining open years in all jurisdictions.
Income taxes paid, net of refunds, totaled $265 and $(253) for the three months ended June 28, 2020 and June 30, 2019, respectively.
Although the timing and outcome of income tax audit settlements are uncertain, it is reasonably possible that a $14,072 reduction of the uncertain tax benefits will occur in the next 12 months. The settlement of these unrecognized tax benefits could result in earnings from $0 to $13,086.
15. Contingencies
Litigation—From time to time, we are subject to various legal proceedings, including lawsuits, which arise out of, and are incidental to, the conduct of our business. We do not consider any of such proceedings that are currently pending, individually or in the aggregate to be material to our business or likely to result in a material adverse effect on our operating results, financial condition, or cash flows.
Environmental liabilities—Our operations and ownership or use of real property are subject to a number of federal, state, and local environmental laws and regulations, as well as applicable foreign laws and regulations, including those governing the discharge of hazardous materials, remediation of contaminated sites, and restoration of damage to the environment. We are obligated to conduct investigation and/or remediation activities at certain sites that we own or operate or formerly owned or operated.
Certain of our former subsidiaries have been identified as potentially responsible parties (“PRP”), along with other parties, in regulatory agency actions associated with hazardous waste sites. As a PRP, those former subsidiaries may be required to pay a share of the costs of the investigation and clean-up of these sites. In that event, we would be obligated to indemnify those subsidiaries for those costs. While uncertainties exist with respect to the amounts and timing of the ultimate

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environmental liabilities, based on currently available information, we have concluded that these matters, individually or in the aggregate, will not have a material adverse effect on our operating results, financial condition, or cash flows. We have recorded a liability for environmental remediation of $708 and $710 as of June 28, 2020 and March 31, 2020, respectively.
We could incur substantial additional costs, including cleanup costs, resource restoration, fines, and penalties or third-party property damage or personal injury claims, as a result of violations or liabilities under environmental laws or non-compliance with environmental permits. While environmental laws and regulations have not had a material adverse effect on our operating results, financial condition, or cash flows in the past, and we have environmental management programs in place to mitigate these risks, it is difficult to predict whether they will have a material impact in the future.
16. Condensed Consolidating Financial Statements
In accordance with the provisions of the 5.875% Notes, the outstanding notes are guaranteed on an unsecured basis, jointly and severally and fully and unconditionally, by substantially all of Vista Outdoor domestic subsidiaries and by Advanced Arrow S. de R.L. de C.V. and Hydrosport, S. de R.L. de C.V. The parent company has no independent assets or operations. All of these guarantor subsidiaries are 100% owned by Vista Outdoor and any subsidiaries of the parent company other than the subsidiary guarantors are minor. There are no significant restrictions on the Company’s ability, or the ability of any guarantor, to obtain funds from its subsidiaries through dividends or loans, and there are no material restrictions on the ability of our consolidated and unconsolidated subsidiaries to transfer funds to the Company in the form of cash dividends, loans or advances.  These guarantees are senior or senior subordinated obligations, as applicable, of the applicable subsidiary guarantors.
17. Operating Segment Information
During the fourth quarter of fiscal 2020, we realigned our internal reporting structure and modified our operating segment structure to provide investors with improved disclosure that is consistent with how our chief operating decision maker (CODM), our Chief Executive Officer, allocates resources and makes decisions. Based on these changes, management concluded that we had six operating segments, which have been aggregated into two reportable segments, Shooting Sports and Outdoor Products.
Shooting Sports is comprised of our Ammunition and Hunting and Shooting operating segments.  Outdoor Products is comprised of our Action Sports, Outdoor Cooking, Hydration, and Golf operating segments. The operating segments comprising the Company’s respective reportable segments share numerous commonalities, including similar core consumers, distribution channels and supply chains.
Our CODM relies on internal management reporting that analyzes consolidated results to the net income level and operating segment's EBIT, which is defined as earnings (loss) before interest and income taxes. Certain corporate-related costs and other non-recurring costs are not allocated to the segments in order to present comparable results from period to period. These include impairment charges, restructuring related-costs, merger and acquisition costs, and other non-recurring items.
Shooting Sports generated approximately 70% of our sales in three months ended June 28, 2020. Shooting Sports is comprised of ammunition and hunting shooting accessories product lines. Ammunition products include centerfire ammunition, rimfire ammunition, shotshell ammunition and reloading components. Hunting accessories products include high-performance hunting arrows, game calls, hunting blinds, game cameras, decoys, and optics products such as binoculars, riflescopes and telescopes. Shooting accessories products include reloading equipment, clay targets, premium gun care products and tactical products such as holsters, duty gear, bags and packs. Our Firearms business was divested early in the second quarter of fiscal 2020.
Outdoor Products generated approximately 30% of our external sales in the three months ended June 28, 2020. Outdoor Products is comprised of sports protection, outdoor cooking, golf, and hydration product lines. Sports protection includes helmets, goggles, and accessories for cycling, snow sports, action sports and powersports. Outdoor cooking includes grills and stoves. Golf products include laser rangefinders and other golf technology products. Hydration products include hydration packs and water bottles.
Sales to Walmart represented 10% and 14% of our sales in the three months ended June 28, 2020 and June 30, 2019, respectively. No other single customer contributed 10% or more of our sales in the three months ended June 28, 2020 and June 30, 2019.

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The following tables contain information utilized by management to evaluate our operating segments for the interim periods presented:
 
 
Three months ended June 28, 2020
 
 
Shooting Sports
 
Outdoor Products
 
(a) Corporate and other reconciling items
 
Total
Sales, net
 
$
334,158

 
$
144,982

 
$

 
$
479,140

Gross Profit
 
84,502

 
40,866

 

 
125,368

EBIT
 
54,565

 
11,506

 
(18,028
)
 
48,043

 
 
Three months ended June 30, 2019 (b)
 
 
Shooting Sports
 
Outdoor Products
 
(a) Corporate and other reconciling items
 
Total
Sales, net
 
$
308,797

 
$
150,977

 
$

 
$
459,774

Gross Profit
 
55,393

 
39,685

 

 
$
95,078

EBIT
 
16,819

 
6,852

 
(28,425
)
 
$
(4,754
)

(a) There were no reconciling items for the three months ended June 28, 2020. Reconciling items for the three months ended June 30, 2019 include $9,429 of held for sale impairment charges related to the historical shooting sports segment, contingent consideration expenses of $843 and transaction costs of $401.
(b) We modified the structure of our reportable segments during the fourth quarter of fiscal 2020. Accordingly, prior period amounts have been reclassified to conform with the current period presentation.
There were no significant intersegment sales for the three months ended June 28, 2020 and June 30, 2019.

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ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Dollar amounts in thousands unless otherwise indicated)
Forward-Looking Information is Subject to Risk and Uncertainty
Some of the statements made and information contained in this report, excluding historical information, are "forward-looking statements," including those that discuss, among other things: our plans, objectives, expectations, intentions, strategies, goals, outlook or other non-historical matters; projections with respect to future revenues, income, earnings per share or other financial measures for Vista Outdoor; and the assumptions that underlie these matters. The words "believe," "expect," "anticipate," "intend," "aim," "should" and similar expressions are intended to identify such forward-looking statements. To the extent that any such information is forward-looking, it is intended to fit within the safe harbor for forward-looking information provided by the Private Securities Litigation Reform Act of 1995. Numerous risks, uncertainties and other factors could cause our actual results to differ materially from the expectations described in such forward-looking statements, including the following:

impacts from the COVID-19 pandemic on our operations, the operations of our customers and suppliers and general economic conditions;  
general economic and business conditions in the United States and our markets outside the United States, including conditions affecting employment levels, consumer confidence and spending, conditions in the retail environment, and other economic conditions affecting demand for our products and the financial health of our customers;
our ability to attract and retain key personnel and maintain and grow our relationships with customers, suppliers, and other business partners, including our ability to obtain acceptable third-party licenses;
our ability to adapt our products to changes in technology, the marketplace and customer preferences, including our ability to respond to shifting preferences of the end consumer from brick and mortar retail to online retail;
our ability to maintain and enhance brand recognition and reputation;
others' use of social media to disseminate negative commentary about us and boycotts;
reductions in or unexpected changes in or our inability to accurately forecast demand for ammunition, accessories, or other outdoor sports and recreation products;
risks associated with our sales to significant retail customers, including unexpected cancellations, delays, and other changes to purchase orders;
supplier capacity constraints, production disruptions or quality or price issues affecting our operating costs;
our competitive environment;
risks associated with diversification into new international and commercial markets, including regulatory compliance;
changes in the current tariff structures;
the supply, availability and costs of raw materials and components;
increases in commodity, energy, and production costs;
changes in laws, rules and regulations relating to our business, such as federal and state ammunition regulations;
our ability to realize expected benefits from acquisitions and integrate acquired businesses;
our ability to execute our strategic transformation plan, including our ability to realize expected benefits from the divestiture of non-core brands and profitability improvement initiatives;
our ability to take advantage of growth opportunities in international and commercial markets;
foreign currency exchange rates and fluctuations in those rates;
the outcome of contingencies, including with respect to litigation and other proceedings relating to intellectual property, product liability, warranty liability, personal injury, and environmental remediation;
risks associated with cybersecurity and other industrial and physical security threats;
capital market volatility and the availability of financing;

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changes to accounting standards or policies; and
changes in tax rules or pronouncements.
You are cautioned not to place undue reliance on any forward-looking statements we make. A more detailed description of risk factors that may affect our operating results can be found in Part 1, Item 1A, Risk Factors, of our Annual Report on Form 10-K for fiscal 2020 and in the filings we make with the SEC from time to time. We undertake no obligation to update any forward-looking statements, except as otherwise required by law.
Business Overview
We serve the outdoor sports and recreation markets through a diverse portfolio of nearly 40 well-recognized brands that provide consumers with a wide range of performance-driven, high-quality and innovative products, including sporting ammunition, golf rangefinders, hydration products, outdoor accessories, outdoor cooking solutions, and protective equipment for certain action sports. We serve a broad range of end consumers, including outdoor enthusiasts, hunters and recreational shooters, athletes, as well as law enforcement and military professionals. Our products are sold through a wide variety of mass, specialty and independent retailers and distributors, such as Academy, Amazon, Bass Pro Shops/Cabela's, Big Rock Sports, Sports South, Sportsman's Warehouse, Target, and Walmart. We also sell certain of our products directly to consumers through the relevant brand's website. We have a scalable, integrated portfolio of brands that allows us to leverage our deep customer knowledge, product development and innovation, supply chain and distribution, and sales and marketing functions across product categories to better serve our retail partners and end consumers.
Organizational Structure
We conduct our operations through two reportable segments which are defined based on the reporting and review process used by the chief operating decision maker, our Chief Executive Officer. As of June 28, 2020, Vista Outdoor's two segments were Shooting Sports and Outdoor Products:
Shooting Sports generated approximately 70% of our external sales in the three months ended June 28, 2020. Shooting Sports is comprised of ammunition and hunting shooting accessories product lines. Ammunition products include centerfire ammunition, rimfire ammunition, shotshell ammunition and reloading components. Hunting accessories products include high-performance hunting arrows, game calls, hunting blinds, game cameras, decoys, and optics products such as binoculars, riflescopes and telescopes. Shooting accessories products include reloading equipment, clay targets, and premium gun care products and tactical products such as holsters, duty gear, bags and packs. Our Firearms business was divested early in the second quarter of fiscal 2020.
Outdoor Products generated approximately 30% of our external sales in the three months ended June 28, 2020. Outdoor Products is comprised of sports protection, outdoor cooking, golf, and hydration product lines. Sports protection includes helmets, goggles, and accessories for cycling, snow sports, action sports and powersports. Outdoor cooking includes grills and stoves. Golf products include laser rangefinders and other golf technology products. Hydration products include hydration packs and water bottles.
Business Strategy
In fiscal year 2019, Vista Outdoor embarked on its multi-year strategic transformation plan to reposition the Company to be the leading designer, manufacturer, and marketer of consumer products in the outdoor sports and recreation markets. The primary goal of the transformation plan is to drive profitable growth by delivering innovative products and industry leading customer and online customer experiences. Cost savings are re-invested into improvements needed in capabilities, systems, innovation and growth opportunities. Vista Outdoor believes this plan will enable it to deliver long-term sustainable and profitable growth and create value for its shareholders.
To achieve its multi-year strategic transformation goals, we are relentlessly focused on the following five strategic pillars, which define key priorities and investment focus areas:
Optimize our Organizational Structure: Invest in talent while reducing costs and building a culture of agility, efficiency, and innovation.
Create Leading Centers of Excellence in Operational Excellence and E-Commerce: Leverage our shared resources, expertise and scale to:
achieve operational excellence and improve margins across each of our brands; and
accelerate and enhance e-commerce, direct-to-consumer and digital marketing capabilities across all of our brands.

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Reduce Financial Leverage: Strengthen the Company’s balance sheet, improve financial flexibility, and pay down debt through enhanced cash-flow generation and the divestiture of non-core businesses.
Return to Organic Growth: Identify and capture opportunities for organic growth and market share expansion by:
Allocating capital to our brands to aid in their development of new and innovative products that serve the needs and preferences of their core consumers; and
Leveraging and expanding our distribution channels to expand the commercial presence of all of our brands and efficiently deliver product to meet consumer demand and shopping behavior.
Explore Tuck-in Acquisitions: After reducing financial leverage, deploy a stronger balance sheet to acquire smaller, complimentary businesses that, through the help of our Centers of Excellence, we can take to the next level in terms of sales and profitability.
The first phase of our strategic transformation plan focused on stabilizing our business and building a strong foundation for the future by improving profitability, enhancing operational efficiency, and reducing financial leverage through enhanced cash-flow generation and the divestiture of non-core businesses. Vista Outdoor has made significant progress to date toward these goals by making key leadership changes, investing in digital and e-commerce platforms, addressing the Company’s cost structure and strengthening the Company’s balance sheet. Lessons from the last two years have been incorporated into our forward-looking plans to continue to improve both financial and operational performance and accelerate value creation.
For the remainder of fiscal year 2021, we intend to build on the capabilities developed during the first two years of our transformation, with an additional emphasis going forward on driving long-term, profitable organic sales growth. Vista Outdoor has plans in place under each of its five strategic pillars to deliver long-term, sustainable, profitable growth and improved cash generation, solidifying our position as the outdoor sports and recreation market leader.
Financial Highlights and Notable Events
Certain notable events or activities affecting our first quarter fiscal 2021 financial results included the following:
Quarterly sales increased $19,366 for the three months ended June 28, 2020 as compared to three months ended June 30, 2019. Shooting Sports increased $25,361 largely due to strong demand in the market for centerfire pistol and rifle ammunition, quality of sales mix, and pricing actions taken during the quarter. These increases were partially offset by the sale of our Firearms Business in July 2019, of approximately $24,000. Outdoor Products sales decreased $5,995 primarily driven by retail store closures and supply chain interruptions, partially offset by strong demand in the Outdoor Cooking and Action Sports businesses.
Gross profit increased $30,290 for the three months ended June 28, 2020 as compared to three months ended June 30, 2019. Gross profit for Shooting Sports increased $29,109 primarily driven by operating efficiencies, sales volume, pricing actions taken during the quarter, the quality of sales mix and for the other reasons described in the Results of Operations section below. Gross profit for Outdoor Products increased $1,181, primarily driven by operating efficiencies, strong direct-to-consumer sales and for the other reasons described in the Results of Operations section below.
EBIT increased $52,797 for the three months ended June 28, 2020 as compared to three months ended June 30, 2019. The increase is primarily due the reasons described above regarding gross profit as well as a reduction in operating expenses that was driven by the sale of our Firearms Business in July 2019, decreased travel and trade show expenses due to the COVID-19 pandemic, prior year held for sale asset impairment of $9,429 in the historical Shooting Sports segment and benefits from prior year cost savings initiatives.
We are reporting $0.69 of diluted EPS for the three months ended June 28, 2020 as compared to diluted EPS of $(0.29) for the three months ended June 30, 2019.
During the three months ended June 28, 2020, we reduced our principal balance on the ABL Revolving Credit Facility by $68,256 with cash generated from operations.
Outlook
Shooting Sports Industry
Hunting and shooting-sports related products currently represent a majority of our sales. We design, source, manufacture, and sell ammunition and hunting and shooting related optics and accessories through our Federal, CCI, Speer, Bushnell and Primos brands, among others. Among these categories, we derive the largest portion of our sales from ammunition, which is a consumable, repeat purchase product.

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Sales of hunting and shooting-sports related products, including ammunition, are heavily influenced by participation rates and the political environment. The market for shooting sports products softened dramatically following the 2016 United States presidential election but began to recover in the third quarter of our fiscal year 2020. There continues to be a growing trend in the industry with our end users towards empowerment and personal protection. The extent and duration of this increase in demand for hunting and shooting-sports related products is uncertain. We expect that during our fiscal year 2021 demand for hunting and shooting-sports related products will be influenced by the 2020 United States presidential election cycle, the COVID-19 pandemic, nationwide civil unrest and their associated impacts on general economic and retail conditions.
We believe that these long-term participation trends support our expectation of increasing demand for hunting and shooting-sports related products. Participation rates have remained strong despite the COVID-19 pandemic and nationwide civil unrest, and we are seeing a wider demographic of users than of the past. We expect to see continued increases in participation as consumers look to local outdoor activities as a substitute for travel and other competing pursuits that have been impacted by the COVID-19 pandemic. We believe we are well-positioned to succeed and capitalize on this demand given our scale and global operating platform, which we believe is particularly difficult to replicate in the highly regulated and capital-intensive ammunition manufacturing sector.
Outdoor Recreation Industry
The outdoor recreation industry represents a large and growing focus area of our business. We design, source, manufacture, and sell outdoor recreation products through our Bell, Giro, CamelBak, Camp Chef and Bushnell Golf brands, among others. These brands operate in highly competitive and global markets serving cycling, snow sports, hiking, camping, outdoor cooking and golf enthusiasts.
During fiscal 2020, our Outdoor Products brands experienced a challenging retail environment driven by a variety of factors, including the ongoing shift in consumer preferences to utilize online platforms, as well as other market pressures. Many of our brands have been able to respond and capitalize on the trend towards on-line shopping platforms, including our brands’ direct-to-consumer websites, but in some cases the shift away from in-person shopping experiences has resulted in a net decrease in sales. We expect that these trends will offset the impact of the ongoing COVID-19 pandemic on general economic and retail conditions, including store closures, shelter-in-place orders and social distancing. However, a return to widespread store closures, or COVID-19 pandemic related disruption, resulting in deterioration of general economic conditions may adversely affect the brands in our Outdoor Products segment for the remainder of fiscal 2021.
We believe that long-term participation trends support our expectation of increasing demand for the innovative outdoor recreation-related products produced by our Outdoor Products brands. Participation rates have remained strong and we are seeing an expanded demographic within our end users. We expect participation to continue to increase during the global recovery from the COVID-19 pandemic as consumers look to local outdoor activities as a substitute for travel and other competing pursuits. Our Outdoor Products brands hold a strong competitive position in the market-place, and we intend to further differentiate our brands through focused R&D and marketing investments including increased use of social media and other digital marketing. Following significant investments in our brands’ e-commerce capabilities, both directly and through our E-Commerce Center of Excellence, our brands are also well-positioned to benefit from the ongoing shift in consumer shopping behavior to utilize on-line channels.
Results of Operations
We have six operating segments which are aggregated into two reportable segments, Shooting Sports and Outdoor Products.
Shooting Sports is comprised of our Ammunition and Hunting and Shooting operating segments.  Outdoor Products is comprised of our Action Sports, Outdoor Cooking, Hydration and Golf operating segments. The operating segments comprising the Company’s respective new reportable segments share numerous commonalities, including similar core consumers, distribution channels and supply chains.
The CODM evaluates the performance of our reportable segments based on sales, gross profit and EBIT, which is defined as earnings (loss) before interest and income taxes. Certain corporate-related costs and other non-recurring costs included in Corporate and other below are not allocated to the reporting segments in order to present comparable results from period to period. These costs include impairment charges, business transformation fees and restructuring related-costs, merger and acquisition costs, and other non-recurring items.
For further information about our segments, see Note 17, Operating Segment Information, to the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.

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Table of Contents

Fiscal 2021 Compared to Fiscal 2020
The Company’s net sales, gross profit, and EBIT by reporting segment and by corporate and other (where applicable) are presented below (dollars in thousands):
 
 
Three months ended
Net Sales:
 
June 28, 2020
 
June 30, 2019 (1)
 
$ Change
 
% Change
Shooting Sports
 
$
334,158

 
$
308,797

 
$
25,361

 
8.2
 %
Outdoor Products
 
144,982

 
150,977

 
(5,995
)
 
(4.0
)%
Total net sales
 
$
479,140

 
$
459,774

 
$
19,366

 
4.2
 %
(1) We modified the structure of our reportable segments during the fourth quarter of fiscal 2020. Accordingly, prior period amounts have been reclassified to conform with the current period presentation.
Shooting Sports— The increase in sales was primarily driven by strong demand in the market for centerfire pistol and rifle ammunition, quality of sales mix, and pricing actions taken during the quarter. These increases were partially offset by the sale of our Firearms Business in July 2019, of approximately $24,000.
Outdoor Products—The decrease in sales was primarily driven by retail store closures and supply chain interruptions, partially offset by strong demand in the Outdoor Cooking and Action Sports businesses.
 
 
Three months ended
Gross Profit:
 
June 28, 2020
 
June 30, 2019 (1)
 
$ Change
 
% Change
Shooting Sports
 
$
84,502

 
$
55,393

 
$
29,109

 
52.5
%
Outdoor Products
 
40,866

 
39,685

 
1,181

 
3.0
%
Total gross profit
 
$
125,368

 
$
95,078

 
$
30,290

 
31.9
%
Shooting Sports—The increase in gross profit was primarily driven by operating efficiencies, sales volume, pricing actions taken during the quarter, and the quality of sales mix in our Ammunition business. These increases were partially offset by the sale of our Firearms Business in July 2019, which accounted for approximately $6,000.
Outdoor Products—The increase in our gross profit was primarily driven by operating efficiencies and strong direct-to-consumer sales; partially offset by reduced volume.
 
 
Three months ended
EBIT:
 
June 28, 2020
 
June 30, 2019 (1)
 
$ Change
 
% Change
Shooting Sports
 
$
54,565

 
$
16,819

 
$
37,746

 
224.4
%
Outdoor Products
 
11,506

 
6,852

 
4,654

 
67.9
%
Corporate and other
 
(18,028
)
 
(28,425
)
 
10,397

 
36.6
%
Total EBIT
 
$
48,043

 
$
(4,754
)
 
$
52,797

 
1,110.6
%
Shooting Sports—The increase in EBIT was primarily driven by the gross profit increase and an operating expense reduction of $8,638. The operating expense reduction was primarily driven by the sale of our Firearms Business in July 2019, which accounted for approximately $4,800, decreased travel and trade show expenses due to the COVID-19 pandemic, and the benefits from prior year cost savings initiatives.
Outdoor Products—The increase in EBIT primarily driven by the gross profit increase and an operating expense reduction of $3,473. The operating expense reduction was primarily driven by decreased travel and trade show expenses due to the COVID-19 pandemic and the benefits from prior year cost savings initiatives.

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Table of Contents

Corporate and Other—The operating expense reduction was primarily driven by prior year held for sales asset impairment of $9,429 in our Firearms business.
 
 
Three months ended
Interest expense, net:
 
June 28, 2020
 
June 30, 2019
 
$ Change
 
% Change
Corporate and other
 
$
6,418

 
$
11,124

 
$
(4,706
)
 
(42.3
)%
The decrease in interest expense was due to a reduction in our average principal debt balance and reduction in our interest rate on the ABL Revolving Credit Facility.
 
 
Three months ended
Income Tax Provision:
 
June 28, 2020
 
Effective
Rate
 
June 30, 2019
 
Effective
Rate
 
$ Change
Corporate and other
 
$
1,149

 
2.8
%
 
$
737

 
(4.6
)%
 
$
412

See Note 14, Income Taxes, to the unaudited condensed consolidated financial statements in Item 1 of Part I of this report for information regarding income taxes.
The increase in the tax rate from the prior year quarter is primarily caused by impairment of held-for-sale assets in the prior year quarter, offset by a decrease in the valuation allowance due to operating income in the current quarter. As of March 31, 2020, there were approximately $38 million of tax-effected operating loss, credits and interest deduction carryforwards included in our deferred tax assets that can be used to reduce our tax liability if qualifying taxable income is generated in fiscal 2021 and future years.
Liquidity and Capital Resources
Liquidity
We manage our business to maximize operating cash flows as the primary source of liquidity. In addition to cash on hand and cash generated by operations, our sources of liquidity include committed credit facilities and access to the public debt and equity markets. We use our cash primarily to fund investments in our existing businesses and for debt payments, acquisitions, and other activities.
Our cash flows from operating, investing and financing activities are summarized as follows:
 
 
Three months ended
Cash Flows:
 
June 28, 2020
 
June 30, 2019
Cash provided by (used for) operating activities
 
$
77,363

 
$
(36,168
)
Cash used for investing activities
 
(4,452
)
 
(9,127
)
Cash (used for) provided by financing activities
 
(68,356
)
 
54,765

Effect of foreign exchange rate fluctuations on cash
 
129

 
190

Net cash flows
 
$
4,684

 
$
9,660

Operating Activities—Cash provided by operating activities increased $113,531 in the three months ended June 28, 2020 compared the prior year period. The change from the prior-year period was primarily driven by increased net income, as well as favorable change in net working capital. The increased cash from net working capital was driven primarily by the reduction of inventory, which was partially offset by increased pension plan payments and timing of receivable collections as compared to the prior year period.
Investing Activities—Cash used for investing activities decreased $4,675 in the three months ended June 28, 2020 as compared to the prior-year period. The change was driven by a decrease in capital expenditures.
Financing Activities—Cash used for financing activities increased by $123,121 for three months ended June 28, 2020 compared to the prior year period. The change was primarily due to the reduction in the ABL Revolving Credit Facility.
Capital Resources
In addition to our normal operating cash requirements, our principal future cash requirements will be to fund capital expenditures, debt repayments, employee benefit obligations, any share repurchases, and any strategic acquisitions. Our short-term cash requirements for operations are expected to consist mainly of capital expenditures to maintain production facilities

25

Table of Contents

and working capital requirements. Our debt service requirements over the next two years consist of required interest payments due under the New Credit Facilities and our 5.875% Notes.
Based on our current financial condition, management believes that our cash position, combined with anticipated generation of cash flows and the availability of funding, if needed, under our ABL Revolving Credit Facility, access to debt and equity markets, as well as other potential sources of funding including additional bank financing, will be adequate to fund future growth and as to service our currently anticipated long-term debt and pension obligations and make capital expenditures over the next 12 months. As of June 28, 2020, based on the borrowing base less outstanding borrowings of $99,000 and outstanding letters of credit of $21,692, the amount available to us under the ABL Revolving Credit Facility was $289,705.
We do not expect that our access to liquidity sources will be materially impacted in the near future. There can be no assurance, however, that the cost or availability of future borrowings, if any, will not be materially impacted by capital market conditions, including any disruptions to capital markets as a result of the COVID-19 pandemic, or our future financial condition and performance. Furthermore, because our ABL Revolving Credit Facility is secured in large part by receivables from our customers, a sustained deterioration in general economic conditions as a result of the COVID-19 pandemic that adversely affects the creditworthiness of our customers could have a negative effect on our future available liquidity under the ABL Revolving Credit Facility.
Our total debt as a percentage of total capitalization (total debt and stockholders' equity) was 47.8% as of June 28, 2020.
Additional information about our ABL Revolving Credit Facility, and long-term debt is presented in 12, Long-term Debt, to the Notes to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by this reference.
Contractual Obligations and Commitments
The Company leases certain warehouse, distribution and office facilities, vehicles and office equipment under operating leases. As of June 28, 2020, current and long-term operating lease liabilities of $10,758 and $71,686, respectively, were recorded in the accompanying unaudited condensed consolidated balance sheets. For further discussion on minimum lease payment obligations, see Note 3, Leases, to the unaudited condensed consolidated financial statements in Part I, Item 1 of this report.
There been no material changes with respect to the contractual obligations and commitments or off-balance sheet arrangements described in our Annual Report on Form 10-K for fiscal 2020.
Contingencies
Litigation—From time to time, we are subject to various legal proceedings, including lawsuits, which arise out of, and are incidental to, the conduct of our business. We do not consider any of such proceedings that are currently pending, individually or in the aggregate, to be material to our business or likely to result in a material adverse effect on our operating results, financial condition, or cash flows.
Environmental Liabilities—Our operations and ownership or use of real property are subject to a number of federal, state, and local environmental laws and regulations, as well as applicable foreign laws and regulations, including those governing the discharge of hazardous materials, remediation of contaminated sites, and restoration of damage to the environment. We are obligated to conduct investigation and/or remediation activities at certain sites that we own or operate or formerly owned or operated.
Certain of our former subsidiaries have been identified as potentially responsible parties (“PRP”), along with other parties, in regulatory agency actions associated with hazardous waste sites. As a PRP, those former subsidiaries may be required to pay a share of the costs of the investigation and clean-up of these sites. In that event, we would be obligated to indemnify those subsidiaries for those costs. While uncertainties exist with respect to the amounts and timing of our ultimate environmental liabilities, based on currently available information, we do not currently expect that these matters, individually or in the aggregate, will have a material adverse effect on our operating results, financial condition, or cash flows.
We could incur substantial additional costs, including cleanup costs, resource restoration, fines, and penalties or third-party property damage or personal injury claims, as a result of violations or liabilities under environmental laws or non-compliance with environmental permits. While environmental laws and regulations have not had a material adverse effect on our operating results, financial condition, or cash flows in the past, and we have environmental management programs in place to mitigate these risks, it is difficult to predict whether they will have a material impact in the future.

26

Table of Contents

Critical Accounting Policies and Estimates
There have been no material changes to our critical accounting policies and estimates from the information provided in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in the our Annual Report on Form 10-K for the fiscal year ended March 31, 2020, except for our adoption of the Accounting Standards Update ("ASU") No 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" which became effective as of April 1, 2020. For further discussion on the adoption of this new accounting standard please see Note 1, Significant Accounting Policies, to the unaudited condensed consolidated financial statements in Item 1 of Part I of this report.
Dependence on Key Customers; Concentration of Credit
The loss of any key customer and our inability to replace revenues provided by a key customer may have a material adverse effect on our business and financial condition. Sales to Walmart represented 10% and 14% of our sales in the three months ended June 28, 2020 and June 30, 2019, respectively. No other single customer contributed 10% or more of our sales in the three months ended June 28, 2020 and June 30, 2019.
If a key customer fails to meet payment obligations, our operating results and financial condition could be adversely affected.
Inflation and Commodity Price Risk
In management’s opinion, inflation has not had a significant impact upon the results of our operations. However, we have been impacted by changes in the prices of raw materials used in production as well as changes in oil and energy costs. In particular, the prices of commodity metals, such as copper, zinc, and lead continue to be volatile. These prices generally impact our Shooting Sports Segment. See Note 4, Derivative Financial Instruments, for additional information.
We have a strategic sourcing, pricing and hedging strategy to mitigate risk from commodity price fluctuation. We will continue to evaluate the need for future price changes in light of these trends, our competitive landscape, and our financial results. If our sourcing and pricing strategy is unable to offset impacts of the commodity price fluctuations, our future results from operations and cash flows would be materially impacted.
ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market risks relating to our operations result primarily from changes in interest rates, commodity prices and foreign currency exchange rates. Our market risks at June 28, 2020 are similar to those disclosed in our Annual Report on Form 10-K for fiscal 2020. The information concerning market risk set forth in Part II, Item 7A. of our Annual Report on Form 10-K for fiscal 2020, as filed with the SEC on June 3, 2020, under the caption "Quantitative and Qualitative Disclosures About Market Risk," is hereby incorporated by reference into this Quarterly Report on Form 10-Q.
ITEM 4.    CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
As of June 28, 2020, our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) and have concluded that our disclosure controls and procedures are effective to ensure that information we are required to disclose in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. These disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports we file or submit is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
During the three months ended June 28, 2020, there were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

27

Table of Contents

PART II—OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
From time to time, we are subject to various legal proceedings, including lawsuits, which arise out of, and are incidental to, the conduct of our business. We do not consider any of such proceedings that are currently pending, individually or in the aggregate, to be material to our business or likely to result in a material adverse effect on our operating results, financial condition, or cash flows.
Certain of our former subsidiaries have been identified as potentially responsible parties (“PRP”), along with other parties, in regulatory agency actions associated with hazardous waste sites. As a PRP, those former subsidiaries may be required to pay a share of the costs of the investigation and clean-up of these sites. In that event, we would be obligated to indemnify those subsidiaries for those costs. While uncertainties exist with respect to the amounts and timing of our ultimate environmental liabilities, based on currently available information, we do not currently expect that these matters, individually or in the aggregate, will have a material adverse effect on our operating results, financial condition, or cash flows.
ITEM 1A. RISK FACTORS
While we attempt to identify, manage and mitigate risks and uncertainties associated with our business, some level of risk and uncertainty will always be present. Item 1A of Part I of our Annual Report on Form 10-K for the fiscal year ended March 31, 2020 describes the known material risks and uncertainties associated with our business. These risks and uncertainties have the potential to materially affect our business, financial condition, results of operations, cash flows, projected results, and future prospects. There have been no material changes to the Risk Factors disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
None.

28

Table of Contents

ITEM 6. EXHIBITS
Exhibit
Number
 
Description of Exhibit (and document from which incorporated by reference, if applicable)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
101
 
The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 28, 2020, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) /Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Comprehensive Income (Loss), (iii) Condensed Consolidated Statements of Cash Flows, (iv) Condensed Consolidated Statements of Stockholders’ Equity, and (v) Notes to the Condensed Consolidated Financial Statements, tagged as blocks of text and including detailed tags.
 
 
 
104
 
The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 28, 2020, formatted in Inline Extensible Business Reporting Language (iXBRL) (included as Exhibit 101).
* Incorporated by reference.
+ Schedules to exhibits have been omitted from this filing pursuant to Item 601(b)(2) of Regulation S-K. Vista Outdoor agrees to furnish supplementally a copy of any omitted schedules to the SEC upon its request; provided, however, that we may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any document so furnished.

29

Table of Contents

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
 
 
 
VISTA OUTDOOR INC.
Date:
August 6, 2020
 
By:
 
/s/ Sudhanshu Priyadarshi
 
 
 
Name:
 
Sudhanshu Priyadarshi
 
 
 
Title:
 
Senior Vice President and Chief Financial Officer
 
 
 
 
 
(On behalf of the Registrant and as Principal Financial Officer)
 
 
 
 
 
 


30
Exhibit
Exhibit 31.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Christopher T. Metz, certify that:
 
 
1.
I have reviewed this quarterly report on Form 10-Q of Vista Outdoor Inc.;
 
 
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
 
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
 
4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
 
 
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 
 
 
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
 
 
 
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
 
 
 
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
 
 
5.
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
 
 
 
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
 
 
 
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:
August 6, 2020
By:
 
/s/ Christopher T. Metz
 
 
Name:
 
Christopher T. Metz
 
 
Title:
 
Chief Executive Officer





Exhibit


Exhibit 31.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Sudhanshu Priyadarshi, certify that:
 
 
1.
I have reviewed this quarterly report on Form 10-Q of Vista Outdoor Inc.;
 
 
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
 
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
 
4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
 
 
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 
 
 
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
 
 
 
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
 
 
 
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
 
 
5.
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
 
 
 
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
 
 
 
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:
August 6, 2020
By:
 
/s/ Sudhanshu Priyadarshi
 
 
Name:
 
Sudhanshu Priyadarshi
 
 
Title:
 
Senior Vice President and Chief Financial Officer



Exhibit


Exhibit 32


Certification by Chief Executive Officer and Principal Financial Officer
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002

We, Christopher T. Metz, Chief Executive Officer, and Sudhanshu Priyadarshi, Chief Financial Officer, of Vista Outdoor Inc. (the “Company”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to our knowledge:

(1)
the Quarterly Report on Form 10-Q for the period ended June 28, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

Dated: August 6, 2020

 
By:
 
/s/ Christopher T. Metz
 
 
Name:
 
Christopher T. Metz
 
 
Title:
 
Chief Executive Officer
 
 
 
 
 
 
 
By:
 
 
/s/ Sudhanshu Priyadarshi
 
Name:
 
 
Sudhanshu Priyadarshi
 
Title:
 
 
Senior Vice President and Chief Financial Officer



v3.20.2
Cover Page - shares
3 Months Ended
Jun. 28, 2020
Jul. 27, 2020
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 28, 2020  
Document Transition Report false  
Entity File Number 1-36597  
Entity Registrant Name Vista Outdoor Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 47-1016855  
Entity Address, Address Line One 1 Vista Way  
Entity Address, City or Town Anoka  
Entity Address, State or Province MN  
Entity Address, Postal Zip Code 55303  
City Area Code 763  
Local Phone Number 433-1000  
Title of 12(b) Security Common Stock, par value $.01  
Trading Symbol VSTO  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   58,062,203
Entity Central Index Key 0001616318  
Amendment Flag false  
Current Fiscal Year End Date --03-31  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)
$ in Thousands
Jun. 28, 2020
Mar. 31, 2020
Current assets:    
Cash and cash equivalents $ 36,059 $ 31,375
Net receivables 324,619 313,517
Net inventories 332,210 331,293
Income tax receivable 7,649 7,626
Other current assets 21,605 25,200
Total current assets 722,142 709,011
Net property, plant, and equipment 175,569 184,733
Operating lease assets 67,237 69,024
Goodwill 83,167 83,167
Net intangible assets 301,300 306,100
Deferred charges and other non-current assets, net 39,031 39,254
Total assets 1,388,446 1,391,289
Current liabilities:    
Accounts payable 115,043 89,996
Accrued compensation 26,990 38,806
Federal excise, use, and other taxes 20,892 19,702
Other current liabilities 106,202 98,197
Total current liabilities 269,127 246,701
Long-term debt 443,927 511,806
Deferred Income Tax Liabilities, Net 12,744 12,810
Operating lease liabilities 71,686 73,738
Accrued pension and postemployment benefits 52,440 60,225
Other long-term liabilities 49,017 43,504
Total liabilities 898,941 948,784
Commitments and contingencies (Notes 3, 12, and 15)
Issued and outstanding — 58,066,959 shares as of June 28, 2020 and 58,038,822 shares as of March 31, 2020 581 580
Additional paid-in capital 1,746,919 1,744,096
Accumulated deficit (919,572) (960,048)
Accumulated other comprehensive loss (98,774) (100,994)
Common stock in treasury, at cost — 5,897,480 shares held as of June 28, 2020 and 5,925,617 shares held as of March 31, 2020 (239,649) (241,129)
Total stockholders' equity 489,505 442,505
Total liabilities and stockholders' equity $ 1,388,446 $ 1,391,289
v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares
Jun. 28, 2020
Mar. 31, 2020
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) 58,066,959 58,038,822
Common stock, outstanding (in shares) 58,066,959 58,038,822
Common stock in treasury (in shares) 5,897,480 5,925,617
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Jun. 28, 2020
Jun. 30, 2019
Income Statement [Abstract]    
Sales, net $ 479,140 $ 459,774
Cost of sales 353,772 364,696
Gross profit 125,368 95,078
Operating expenses:    
Research and development 5,010 6,494
Selling, general, and administrative 72,315 83,909
Impairment of held-for-sale assets 0 (9,429)
Earnings (loss) before interest and income taxes 48,043 (4,754)
Interest expense, net (6,418) (11,124)
Earnings (loss) before income taxes 41,625 (15,878)
Income tax provision 1,149 737
Net income (loss) $ 40,476 $ (16,615)
Earnings (loss) per common share:    
Basic (in dollars per share) $ 0.70 $ (0.29)
Diluted (in dollars per share) $ 0.69 $ (0.29)
Weighted-average number of common shares outstanding:    
Basic (in shares) 58,057 57,722
Diluted (in shares) 58,957 57,722
Pension and other postretirement benefit liabilities:    
Reclassification of prior service credits for pension and postretirement benefit plans recorded to net income, net of tax benefit of $0 and $0 $ (78) $ (78)
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $0 and $0 968 811
Change in derivatives, net of tax benefit (expense) of $0 and $0 981 (1,150)
Change in cumulative translation adjustment. 349 764
Total other comprehensive income 2,220 347
Comprehensive income (loss) $ 42,696 $ (16,268)
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended
Jun. 28, 2020
Jun. 30, 2019
Income Statement [Abstract]    
Reclassification of prior service credits for pension and postretirement benefit plans recorded to net income, net of tax benefit of $0 and $0 $ 0 $ 0
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $0 and $0 0 0
Change in derivatives, net of tax benefit (expense) of $0 and $0 $ 0 $ 0
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
$ in Thousands
3 Months Ended
Jun. 28, 2020
Jun. 30, 2019
Operating Activities    
Net income (loss) $ 40,476 $ (16,615)
Adjustments to net income (loss) to arrive at cash provided by (used for) operating activities:    
Depreciation 11,533 11,290
Amortization of intangible assets 4,953 5,097
Impairment of held-for-sale assets 0 9,429
Amortization of deferred financing costs 377 580
Deferred income taxes (94) (168)
Loss on disposal of property, plant, and equipment 195 0
Share-based compensation 4,404 2,190
Changes in assets and liabilities:    
Net receivables (10,986) (4,749)
Net inventories (761) (53,811)
Accounts payable 26,526 29,098
Accrued compensation (11,820) (11,026)
Accrued income taxes 982 992
Federal excise, use, and other taxes 1,180 (881)
Pension and other postretirement benefits (6,894) 101
Other assets and liabilities 17,292 (7,695)
Cash provided by (used for) operating activities 77,363 (36,168)
Investing Activities:    
Capital expenditures (4,472) (9,212)
Proceeds from the disposition of property, plant, and equipment 20 85
Cash used for investing activities (4,452) (9,127)
Financing Activities:    
Borrowings on lines of credit 9,076 120,239
Payments on lines of credit (77,332) (60,240)
Payments made on long-term debt 0 (4,834)
Payments made for debt issuance costs 0 (103)
Payment of employee taxes related to vested stock awards (100) (297)
Cash (used for) provided by financing activities (68,356) 54,765
Effect of foreign exchange rate fluctuations on cash 129 190
Increase in cash and cash equivalents 4,684 9,660
Cash and cash equivalents at beginning of period 31,375 21,935
Cash and cash equivalents at end of period 36,059 31,595
Non-cash investing activity:    
Capital expenditures included in accounts payable $ 1,034 $ 2,531
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($)
$ in Thousands
Total
Common Stock $.01 Par Value
Additional Paid-In Capital
Accumulated Deficit
Accumulated Other Comprehensive Loss
Treasury Stock
Balance (in shares) at Mar. 31, 2019   57,710,934        
Balance at Mar. 31, 2019 $ 609,040 $ 577 $ 1,752,419 $ (804,969) $ (82,967) $ (256,020)
Increase (Decrease) in Stockholders' Equity            
Comprehensive income (loss) (16,268)     (16,615) 347  
Share-based compensation 2,190   2,190      
Restricted stock vested and shares withheld (in shares)   23,059        
Restricted stock vested and shares withheld (106)   (1,534)     1,428
Employee stock purchase plan (in shares)   11,028        
Employee stock purchase plan 93   (358)     451
Other (in shares)   724        
Other 0   43     (43)
Balance (in shares) at Jun. 30, 2019   57,745,745        
Balance at Jun. 30, 2019 594,949 $ 577 1,752,760 (821,584) (82,620) (254,184)
Balance (in shares) at Mar. 31, 2020   58,038,822        
Balance at Mar. 31, 2020 442,505 $ 580 1,744,096 (960,048) (100,994) (241,129)
Increase (Decrease) in Stockholders' Equity            
Comprehensive income (loss) 42,696     40,476 2,220  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period   5,000        
Stock Issued During Period, Value, Stock Options Exercised     (203)     203
Share-based compensation 4,404   4,404      
Restricted stock vested and shares withheld (in shares)   21,824        
Restricted stock vested and shares withheld (100)   (1,324)     1,224
Employee stock purchase plan (in shares)   0        
Employee stock purchase plan 0   0     0
Other (in shares)   1,313        
Stock Issued During Period, Value, Other   $ 1        
Other 0   (54)     53
Balance (in shares) at Jun. 28, 2020   58,066,959        
Balance at Jun. 28, 2020 $ 489,505 $ 581 $ 1,746,919 $ (919,572) $ (98,774) $ (239,649)
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares
Jun. 28, 2020
Mar. 31, 2020
Statement of Stockholders' Equity [Abstract]    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
v3.20.2
Significant Accounting Policies
3 Months Ended
Jun. 28, 2020
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 and shooting sports products. We conduct our operations through two reportable segments, Shooting Sports and Outdoor Products. We are headquartered in Anoka, Minnesota and have 14 manufacturing and distribution facilities in the United States, Canada, Mexico, and Puerto Rico along with international customer service, sales and sourcing operations in Asia, Canada, and Europe. Vista Outdoor was incorporated in Delaware in 2014. The condensed consolidated financial statements reflect our financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States.

This Quarterly Report on Form 10-Q should be read in conjunction with our consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020 (“fiscal 2020”).

Basis of Presentation—Our unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of the Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain disclosures and other financial information that normally are required by accounting principles generally accepted in the United States have been condensed or omitted. Our accounting policies are described in the notes to the consolidated financial statements in our Annual Report on Form 10-K for fiscal 2020. Management is responsible for the condensed consolidated financial statements included in this report, which are unaudited but, in the opinion of management, include all adjustments necessary for a fair presentation of our financial position as of June 28, 2020 and March 31, 2020, our results of operations for the three months ended June 28, 2020 and June 30, 2019, and our cash flows for the three months ended June 28, 2020 and June 30, 2019.

New Accounting Pronouncements

Our accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements included in our fiscal year 2020 Annual Report on Form 10-K. Such significant accounting policies are applicable for periods prior to the following new accounting standards.

Accounting Standards Adopted During this Fiscal Year

On April 1, 2020, we adopted ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("Topic 326"). This new standard is intended to improve financial reporting by requiring more timely recording of credit losses on our trade account receivable and requires the measurement of all expected credit losses based on historical experience, current conditions, and reasonable and supportable forecasts. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements and disclosures. For further information, see Note 7, Receivables.

On April 1, 2020, we adopted ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement." The amendments in this ASU removed, modified or added to the disclosure requirements for fair value measurements in ASC Topic 820, "Fair Value Measurement" ("Topic 820"). The adoption of this ASU did not have a material impact on our condensed consolidated financial statements and disclosures.

Accounting Standards Yet to Be Adopted

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021, although early adoption is permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We are currently evaluating the impacts of the provisions of ASU 2019-12 on our consolidated financial statements.
v3.20.2
Fair Value of Financial Instruments
3 Months Ended
Jun. 28, 2020
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 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—Significant inputs to the valuation model are unobservable.
The following section describes the valuation methodologies we use to measure our financial instruments at fair value on a recurring basis:
Interest Rate Swaps—We periodically enter into floating-to-fixed interest rate swap agreements in order to hedge our forecasted interest payments on our outstanding variable-rate debt. The fair value of those swaps is determined using a pricing model based on observable inputs for similar instruments and other market assumptions. We consider these to be Level 2 instruments. See Note 4, Derivative Financial Instruments, for additional information.
Commodity Price Hedging Instruments—We periodically enter into commodity forward contracts to hedge our exposure to price fluctuations on certain commodities we use for raw material components in our manufacturing process. When actual commodity prices exceed the fixed price provided by these contracts, we receive this difference from the counterparty, and when actual commodity prices are below the contractually provided fixed price, we pay this difference to the counterparty. We consider these to be Level 2 instruments. See Note 4, Derivative Financial Instruments, for additional information.
Note Receivable—In connection with the sale of our Firearms business in July 2019, we received a $12,000 interest-free, five-year pre-payable promissory note due June 2024. Based on the general market conditions and the credit quality of the buyer at the time of the sale, we discounted the Note Receivable at an effective interest rate of 10% and estimated fair value using a discounted cash flow approach. We consider this to be a Level 3 instrument. See Note 7, Receivables, for additional information.
Disclosures about the Fair Value of Financial Instruments
The carrying amount of our receivables, inventory, accounts payable and accrued liabilities at June 28, 2020 and March 31, 2020, approximates fair value because of the short maturity of these instruments. The carrying values of cash and cash equivalents at June 28, 2020 and March 31, 2020 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:
 
 
June 28, 2020
 
March 31, 2020
 
 
Carrying
amount
 
Fair
value
 
Carrying
amount
 
Fair
value
Fixed-rate debt (1)
 
$
350,000

 
$
344,750

 
$
350,000

 
$
284,375

Variable-rate debt (2)
 
99,000

 
99,000

 
167,256

 
167,256


(1) In fiscal 2016, we issued $350,000 aggregate principal amount of 5.875% Senior Notes (the "5.875% Notes") that mature on October 1, 2023. These notes are unsecured and senior obligations. The fair value of the fixed-rate long-term debt is calculated based on current market rates for debt of the same risk and maturities, based on market quotes for each issuance. We consider these to be Level 2 instruments. See Note 12, Long-term Debt, for information on long-term debt, including certain risks and uncertainties.
(2) The carrying value of the amounts outstanding under our ABL Revolving Credit Facility approximates the fair value due to the short-term nature of these obligations. 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 12, Long-term Debt, for additional information on our credit facilities, including related certain risks and uncertainties.
We measure certain nonfinancial assets at fair value on a nonrecurring basis if certain indicators are present. These assets include long-lived assets that are written down to fair value when they are held for sale or determined to be impaired. During the three months ended June 28, 2020 there were no impairments recorded related to our assets that are measured at fair value on a nonrecurring basis. During the three months ended June 30, 2019, we recognized an impairment of $9,429 related to an expected loss on the sale of the held-for-sale assets of our Firearms business.
v3.20.2
Leases
3 Months Ended
Jun. 28, 2020
Leases [Abstract]  
Leases Leases
We lease certain warehouse and distribution space, manufacturing space, office space, retail locations, equipment and vehicles. All of these leases are classified as operating leases. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. These rates are assessed on a quarterly basis. The operating lease assets also include any lease payments made less lease incentives. Leases with an initial term of twelve months or less are not recorded on the balance sheet. For operating leases, expense is recognized on a straight-line basis over the lease term. Variable lease payments associated with our leases are recognized upon occurrence of the event, activity, or circumstance in the lease agreement on which those payments are assessed. Tenant improvement allowances are recorded as leasehold improvements with an offsetting adjustment included in our calculation of our operating lease assets.
Many leases include one or more options to renew, with renewal terms that can extend the lease term for three years or more. The exercise of lease renewal options is at our sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term.
The amounts of assets and liabilities related to our operating leases were as follows:
 
 
Balance Sheet Caption
 
June 28, 2020
 
March 31, 2020
Assets:
 
 
 
 
 
 
Operating lease assets
 
Operating lease assets
 
$
67,237

 
$
69,024

 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Current:
 
 
 
 
 
 
Operating lease liabilities
 
Other current liabilities
 
$
10,758

 
$
10,780

Long-term:
 
 
 
 
 
 
Operating lease liabilities
 
Long-term operating lease liabilities
 
71,686

 
73,738

Total lease liabilities
 
 
 
$
82,444

 
$
84,518


The components of lease expense are recorded to cost of sales and selling, general and administration expenses in the unaudited condensed consolidated statements of comprehensive income (loss). The components of lease expense were as follows:
 
 
Three months ended
 
 
June 28, 2020
 
June 30, 2019
Fixed operating lease costs (1)
 
$
5,059

 
$
5,017

Variable operating lease costs
 
582

 
535

Sublease income
 
(388
)
 
(281
)
Net Lease costs
 
$
5,253

 
$
5,271

(1) Includes short-term leases, which are immaterial.
 
 
June 28, 2020
 
March 31, 2020
Weighted Average Remaining Lease Term (Years):
 
 
 
 
Operating leases
 
9.44

 
9.55

 
 
 
 
 
Weighted Average Discount Rate:
 
 
 
 
Operating leases
 
8.66
%
 
8.64
%

The approximate minimum lease payments under non-cancelable operating leases as of June 28, 2020 are as follows:
Remainder of fiscal 2021
 
$
13,151

Fiscal 2022
 
15,105

Fiscal 2023
 
13,379

Fiscal 2024
 
11,748

Fiscal 2025
 
10,718

Thereafter
 
60,714

Total lease payments
 
124,815

Less imputed interest
 
(42,371
)
Present value of lease liabilities
 
$
82,444


Supplemental cash flow information related to leases is as follows:
 
 
Three months ended
 
 
June 28, 2020
 
June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
 
Operating cash flows - operating leases
 
$
4,652

 
$
5,205

Operating lease assets obtained in exchange for lease liabilities:
 
 
 
 
Operating leases
 
815

 
701


v3.20.2
Derivative Financial Instruments
3 Months Ended
Jun. 28, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
In the normal course of business, we are exposed to market risks arising from adverse changes in:
commodity prices affecting the cost of raw materials, and
interest rates
We record our interest rate swaps and commodity forward contracts that are accounted for as designated hedges pursuant to ASC Topic 815, “Derivatives and Hedging” ("ASC Topic 815"). ASC Topic 815 requires that an entity recognize all derivatives as either assets or liabilities on the balance sheet, measure those instruments at fair value and recognize changes in the fair value of derivatives in earnings in the period of change unless the derivative qualifies as designated cash flow hedge that offsets certain exposures. Certain criteria must be satisfied in order for derivative financial instruments to be classified and accounted for as a cash flow hedge. Derivatives that are not elected for hedge accounting treatment are recorded immediately in earnings.
From time to time, we have entered into floating-to-fixed interest rate swap agreements in order to hedge our forecasted interest payments on our outstanding variable-rate debt. Gains and losses from the remeasurement of our interest rate swap contract agreement are recorded as a component of accumulated other comprehensive income (loss) and released into earnings as a component of interest expense during the period in which the hedged transaction takes place. There are no cash flow hedge interest rate swaps in place as of June 28, 2020.
We entered into various commodity forward contracts during fiscal 2021 and 2020. These contracts are used to hedge our exposure to price fluctuations on lead we purchase for raw material components in our ammunition manufacturing process and are designated and qualify as effective cash flow hedges. The effectiveness of cash flow hedge contracts is assessed quantitatively at inception and qualitatively thereafter considering transactions critical terms and counterparty credit quality.
The gains and losses on these hedges are included in accumulated other comprehensive income (loss) and are reclassified into earnings at the time the forecasted revenue or expense is recognized. The 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 June 28, 2020, we had outstanding lead forward contracts on 25.25 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 income (loss) and recognized in earnings. The asset related to the lead forward contracts is immaterial and is recorded as part of other non-current assets. The liability related to the lead forward contracts is immaterial and is recorded as part of other current liabilities.
v3.20.2
Revenue Recognition
3 Months Ended
Jun. 28, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition

The following tables disaggregate our net sales by major category:
 
 
Three months ended
 
 
June 28, 2020
 
June 30, 2019(1)
 
 
Shooting Sports
 
Outdoor Products
 
Total
 
Shooting Sports
 
Outdoor Products
 
Total
Ammunition
 
$
261,762

 
$

 
$
261,762

 
$
213,810

 
$

 
$
213,810

Firearms
 

 

 

 
24,017

 

 
24,017

Hunting and Shooting
 
72,396

 

 
72,396

 
70,970

 

 
70,970

Action Sports
 

 
72,859

 
72,859

 

 
67,909

 
67,909

Outdoor Recreation (2)
 

 
72,123

 
72,123

 

 
83,068

 
83,068

Total
 
$
334,158

 
$
144,982

 
$
479,140

 
$
308,797

 
$
150,977

 
$
459,774

 
 
 
 
 
 
 
 
 
 
 
 
 
Geographic Region:
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
$
307,388

 
$
115,017

 
$
422,405

 
$
267,823

 
$
113,333

 
$
381,156

Rest of the World
 
26,770

 
29,965

 
56,735

 
40,974

 
37,644

 
78,618

Total
 
$
334,158

 
$
144,982

 
$
479,140

 
$
308,797

 
$
150,977

 
$
459,774


(1) We changed our operating segments during the fourth quarter of fiscal 2020 (see Note 17, Operating Segment Information). Accordingly, prior period amounts have been reclassified to conform with the current period presentation.
(2) Outdoor Recreation includes the operating segments: Hydration, Outdoor Cooking, and Golf.
Product Sales
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.
Typically, our contracts require customers to pay within 30-60 days of product delivery with a discount available to some customers for early payment. In some cases, we offer extended payment terms to customers. However, we do not consider these extended payment terms to be a significant financing component of the contract because the payment terms are less than a year.
In limited circumstances, our contract with a customer may have shipping terms that indicate a transfer of control of the products upon their arrival at the destination rather than upon shipment. In those cases, we recognize revenue only when the product reaches the customer destination, which may require us to estimate the timing of transfer of control based on the expected delivery date. In all cases, however, we consider our costs related to shipping and handling to be a cost of fulfilling the contract with the customer.
The total amount of revenue we recognize for the sale of our products reflects various sales adjustments for discounts, returns, refunds, allowances, rebates, and other customer incentives. These sales adjustments can vary based on market conditions, customer preferences, timing of customer payments, volume of products sold, and timing of new product launches. These adjustments require management to make reasonable estimates of the amount we expect to receive from the customer. We estimate sales adjustments by customer or by product category on the basis of our historical experience with similar contracts with customers, adjusted as necessary to reflect current facts and circumstances and our expectations for the future. Sales taxes, firearms and ammunition excise tax and other similar taxes are excluded from revenue.
Incentives in the form of cash paid to the customer (or a reduction of a customer cash payment to us) typically are recognized as a reduction of sales unless the incentive is for a distinct benefit that we receive from the customer (e.g., advertising or marketing).
We pay commissions to some of our employees based on agreed-upon sales targets. We recognize the incremental costs of obtaining a contract as an expense when incurred because our sales contracts with commissions are a year or less.
v3.20.2
Earnings Per Share
3 Months Ended
Jun. 28, 2020
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The computation of basic earnings per share ("EPS") is based on the weighted average number of shares that were outstanding during the period. The computation of diluted EPS is based on the number of basic weighted average shares outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares, such as common stock to be issued upon exercise of options, contingently issuable shares and restricted stock units, using the treasury stock method.
The following tables set forth the computation of basic and diluted earnings per share:
 
 
Three months ended
(Amounts in thousands except per share data unless otherwise indicated)
 
June 28, 2020
 
June 30, 2019
Numerator:
 
 
 
 
Net income (loss)
 
$
40,476

 
$
(16,615
)
Denominator:
 
 
 
 
Weighted-average number of common shares outstanding basic:
 
58,057

 
57,722

Dilutive effect of share-based awards (1)
 
900

 

Diluted shares
 
58,957

 
57,722

Earnings (loss) per common share:
 
 

 
 

Basic
 
$
0.70

 
$
(0.29
)
Diluted
 
$
0.69

 
$
(0.29
)

(1) Potentially dilutive securities, which were not included in the computation of diluted earnings per share, because either the effect would have been anti-dilutive, or the options’ exercise prices were greater than the average market price of the common stock, were 528 for the three months ended June 28, 2020. Due to the loss from continuing operations for the three months ended June 30, 2019, there are no common shares added to calculate dilutive EPS because the effect would be antidilutive.
v3.20.2
Receivables
3 Months Ended
Jun. 28, 2020
Receivables [Abstract]  
Receivables Receivables
Our trade accounts receivable are recorded at net realizable value, which includes an appropriate allowance for estimated credit losses as described in Note 1, Significant Accounting Policies. Under ASC Topic 326, the “expected credit loss” model replaces the “incurred loss” model and will require consideration of a broader range of information to estimate expected credit losses over the life of the asset. Our prior methodology for estimating credit losses on trade accounts receivable did not differ significantly from the new requirements of ASC 326. 
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. Our estimate of credit losses includes expected current and future economic and market conditions surrounding the COVID-19 pandemic which did not significantly impact our allowance.
Net receivables are summarized as follows:
 
 
June 28, 2020
 
March 31, 2020
Trade receivables
 
$
335,484

 
$
323,436

Other receivables
 
4,286

 
4,841

Less: allowance for estimated credit losses and discounts
 
(15,151
)
 
(14,760
)
Net receivables
 
$
324,619

 
$
313,517


Walmart represented 15% and 13% of the total trade receivables balance as of June 28, 2020 and March 31, 2020, respectively. No other customer represented more than 10% of our total trade receivables balance as of June 28, 2020 or March 31, 2020.
The following provides a reconciliation of the activity related to the allowance for estimated credit losses and discounts during the three months ended June 28, 2020:
Balance, March 31, 2020
 
$
14,760

Provision for credit losses
 
707

Write-off of uncollectible amounts, net of recoveries
 
(261
)
Discounts and other adjustments
 
(55
)
Balance, June 28, 2020
 
$
15,151


Note Receivable is summarized as follows:
 
 
June 28, 2020
 
March 31, 2020
Principal
 
$
12,000

 
$
12,000

Less: unamortized discount
 
(3,804
)
 
(3,990
)
Note receivable, net, included within Deferred charges and other non-current assets
 
$
8,196

 
$
8,010


v3.20.2
Inventories
3 Months Ended
Jun. 28, 2020
Inventory Disclosure [Abstract]  
Inventories Inventories
Current net inventories consist of the following:
 
 
June 28, 2020
 
March 31, 2020
Raw materials
 
$
92,636

 
$
85,609

Work in process
 
35,514

 
33,622

Finished goods
 
204,060

 
212,062

Net inventories
 
$
332,210

 
$
331,293


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 $27,925 and $27,984 as of June 28, 2020 and March 31, 2020, respectively.
v3.20.2
Accumulated Other Comprehensive Loss (AOCL)
3 Months Ended
Jun. 28, 2020
Equity [Abstract]  
Accumulated Other Comprehensive Loss (AOCL) Accumulated Other Comprehensive Loss (AOCL)
The components of AOCL, net of income taxes, are as follows:
 
 
June 28, 2020
 
March 31, 2020
Derivatives
 
$
(445
)
 
$
(1,426
)
Pension and other postretirement benefits liabilities
 
(92,463
)
 
(93,353
)
Cumulative translation adjustment
 
(5,866
)
 
(6,215
)
Total AOCL
 
$
(98,774
)
 
$
(100,994
)

The following tables detail 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:
 
 
Three months ended June 28, 2020
 
 
Derivatives
 
Pension and other postretirement benefits liabilities
 
Cumulative translation adjustment
 
Total
Beginning balance in AOCL
 
$
(1,426
)
 
$
(93,353
)
 
$
(6,215
)
 
$
(100,994
)
Change in fair value of derivatives
 
(5
)
 

 

 
(5
)
Net losses reclassified from AOCL
 
986

 

 

 
986

Net actuarial losses reclassified from AOCL (1)
 

 
968

 

 
968

Prior service costs reclassified from AOCL (1)
 

 
(78
)
 

 
(78
)
Net change in cumulative translation adjustment
 

 

 
349

 
349

Ending balance in AOCL
 
$
(445
)
 
$
(92,463
)
 
$
(5,866
)
 
$
(98,774
)
(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.
 
 
Three months ended June 30, 2019
 
 
Derivatives
 
Pension and other postretirement benefits liabilities
 
Cumulative translation adjustment
 
Total
Beginning balance in AOCL
 
$
735

 
$
(74,670
)
 
$
(9,032
)
 
$
(82,967
)
Change in fair value of derivatives

 
(1,150
)
 

 

 
(1,150
)
Net actuarial losses reclassified from AOCL (1)
 

 
811

 

 
811

Prior service costs reclassified from AOCL (1)
 

 
(78
)
 

 
(78
)
Net change in cumulative translation adjustment
 

 
 
 
764

 
764

Ending balance in AOCL
 
$
(415
)
 
$
(73,937
)
 
$
(8,268
)
 
$
(82,620
)

(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.
v3.20.2
Goodwill and Intangible Assets
3 Months Ended
Jun. 28, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
There were no changes in the carrying amount of goodwill during the three months ended June 28, 2020. The entire goodwill balance of $83,167 as of June 28, 2020 and March 31, 2020 is allocated to our Shooting Sports segment.

Intangible assets by major asset class consisted of the following:
 
 
June 28, 2020
 
March 31, 2020
 
 
Gross
carrying
amount
 
Accumulated
amortization
 
Total
 
Gross
carrying
amount
 
Accumulated
amortization
 
Total
Trade names
 
$
48,360

 
$
(15,361
)
 
$
32,999

 
$
48,360

 
$
(14,428
)
 
$
33,932

Patented technology
 
16,684

 
(10,708
)
 
5,976

 
16,684

 
(10,490
)
 
6,194

Customer relationships and other
 
238,483

 
(87,261
)
 
151,222

 
238,220

 
(83,349
)
 
154,871

Total
 
303,527

 
(113,330
)
 
190,197

 
303,264

 
(108,267
)
 
194,997

Non-amortizing trade names
 
111,103

 

 
111,103

 
111,103

 

 
111,103

Net intangible assets
 
$
414,630

 
$
(113,330
)
 
$
301,300

 
$
414,367

 
$
(108,267
)
 
$
306,100



Amortization expense for the three months ended June 28, 2020 and June 30, 2019 was $4,953 and $5,097, respectively.

As of June 28, 2020, we expect amortization expense related to these assets to be as follows:
Remainder of fiscal 2021
 
$
14,912

Fiscal 2022
 
19,831

Fiscal 2023
 
19,715

Fiscal 2024
 
19,663

Fiscal 2025
 
19,645

Thereafter
 
96,431

Total
 
$
190,197


v3.20.2
Other Current and Non-current Liabilities
3 Months Ended
Jun. 28, 2020
Other Liabilities Disclosure [Abstract]  
Other Current and Non-current Liabilities Other Current and Non-Current Liabilities
Other current and non-current liabilities consisted of the following:
 
 
June 28, 2020
 
March 31, 2020
Other current liabilities:
 
 
 
 
Rebates
 
$
11,927

 
$
16,225

Accrual for in-transit inventory
 
18,557

 
11,064

Other
 
75,718

 
70,908

Total other current liabilities
 
$
106,202

 
$
98,197

 
 
 
 
 
Other non-current liabilities:
 
 
 
 
Non-current portion of accrued income tax liability
 
$
31,158

 
$
30,159

Other
 
17,859

 
13,345

Total other non-current liabilities
 
$
49,017

 
$
43,504


We provide consumer warranties against manufacturing defects on certain products with warranty periods ranging from one year to the expected lifetime of the product. The estimated costs of such product warranties are recorded at the time the sale is recorded based upon actual past experience, our current production environment as well as specific and identifiable warranties as applicable. The warranty liability recorded at each balance sheet date reflects the estimated liability for warranty coverage for products delivered based on historical information and current trends.
The following is a reconciliation of the changes in our product warranty liability during the periods presented:
Balance, March 31, 2020
 
 
 
$
9,149

Payments made
 
 
 
(858
)
Warranties issued
 
 
 
771

Changes related to pre-existing warranties and other adjustments
 
 
 
(82
)
Balance, June 28, 2020
 
 
 
$
8,980


v3.20.2
Long-term Debt
3 Months Ended
Jun. 28, 2020
Debt Disclosure [Abstract]  
Long-term Debt Long-term Debt
Long-term debt consisted of the following:
 
 
June 28, 2020
 
March 31, 2020
ABL Revolving Credit Facility
 
$
99,000

 
$
167,256

5.875% Senior Notes
 
350,000

 
350,000

Principal amount of long-term debt
 
449,000

 
517,256

Less: unamortized deferred financing costs
 
(5,073
)
 
(5,450
)
Carrying amount of long-term debt
 
$
443,927

 
$
511,806



Credit Agreements—In fiscal 2019, we refinanced our Amended and Restated Credit Agreement dated April 1, 2016, by entering into the New Credit Facilities, which provide for (a) a $450,000 senior secured asset-based revolving credit facility (the “ABL Revolving Credit Facility”), comprised of $20,000 in first-in, last-out (“FILO”) revolving credit commitments and $430,000 in non-FILO revolving credit commitments, (b) a $109,343 senior secured asset-based term loan facility (the “Term Loan”) and (c) the $40,000 Junior Term Loan. The amount available under the ABL Revolving Credit Facility is the lesser of the total commitment of $450,000 or a borrowing base based on percentages of eligible receivables, inventory, and cash, minus certain reserves. As of June 28, 2020, based on the borrowing base less outstanding borrowings of $99,000 and outstanding letters of credit of $21,692, the amount available to us under the ABL Revolving Credit Facility was $289,705.
The New Credit Facilities each mature on November 19, 2023 (the “Maturity Date”), subject to a customary springing maturity in respect of the 5.875% Notes due 2023. The Term Loan was subject to quarterly principal repayments of $4,834 on the first business day of each January, April, July, and October, with the remaining balance due on the Maturity Date. The Term Loan and the Junior Term Loan have been paid in full, and have no future required principal payments. Debt issuance costs of
approximately $6,300 are being amortized over the term of the New Credit Facilities. This expense is included in interest expense in the condensed consolidated statements of comprehensive income (loss).
The FILO commitments under the ABL Revolving Credit Facility are subject to reductions of $1,667 on the first business day of each fiscal quarter beginning on April 1, 2019. The balance of the FILO revolving credit commitment as of June 28, 2020 was $11,667. Any outstanding revolving loans under the ABL Revolving Credit Facility will be payable in full on the Maturity Date.
As of June 28, 2020, borrowings under the ABL Revolving Credit Facility bear interest at a rate equal to, in the case of (a) non-FILO revolving credit loans, either the sum of a base rate plus a margin ranging from 0.25% to 0.75% or the sum of a LIBO rate plus a margin ranging from 1.25% to 1.75%, and (b) FILO revolving credit loans, a rate that is 1.00% higher than the rate paid on the non-FILO revolving credit loans. All such rates vary based on our Average Excess Availability under the ABL Revolving Credit Facility. As of June 28, 2020, the margin under the (1) ABL Revolving Credit Facility was, in the case of (a) non-FILO revolving credit loans, 0.50% for base rate loans and 1.50% for LIBO rate loans and (b) FILO revolving credit loans, 1.50% for base rate loans and 2.50% for LIBO rate loans. The weighted average interest rate for our borrowings under the New Credit Facilities as of June 28, 2020 was 1.99%, excluding the impact of the interest rate swap that was in place during the quarter. See Note 4, Derivative Financial Instruments, for additional information. We pay a commitment fee on the unused commitments under the ABL Revolving Credit Facility of 0.25% per annum.
Substantially all domestic tangible and intangible assets of Vista Outdoor and our domestic subsidiaries, as well as the tangible and intangible assets of Advanced Arrow S. de R.L. de C.V. and Hydrosport, S. de R.L. de C.V., are pledged as collateral under the New Credit Facilities.
5.875% Notes—In fiscal 2016, we issued $350,000 aggregate principal amount of 5.875% Senior Notes (the "5.875% Notes") that mature on October 1, 2023. These notes are unsecured and senior obligations. Interest on the notes is payable semi-annually in arrears on April 1 and October 1 of each year. We have the right to redeem some or all of these notes from time to time at specified redemption prices. Debt issuance costs of approximately $4,300 are being amortized to interest expense over eight years, the term of the notes.
Rank and guarantees—The New Credit Facilities' obligations are guaranteed on a secured basis, jointly and severally and fully and unconditionally by substantially all of our domestic subsidiaries and by Advanced Arrow S. de R.L. de C.V. and Hydrosport, S. de R.L. de C.V. Vista Outdoor (the parent company issuer) has no independent assets or operations. We own 100% of all of these guarantor subsidiaries. The 5.875% Notes are senior unsecured obligations of Vista Outdoor and will rank equally in right of payment with any future senior unsecured indebtedness and senior in right of payment to any future subordinated indebtedness of Vista Outdoor. The 5.875% Notes are fully and unconditionally guaranteed, jointly and severally, by our existing and future domestic subsidiaries that guarantee indebtedness under our New Credit Facilities or that guarantee certain of our other indebtedness, or indebtedness of any subsidiary guarantor, in an aggregate principal amount in excess of $50,000. These guarantees are senior unsecured obligations of the applicable subsidiary guarantors. The guarantee by any subsidiary guarantor of our obligations in respect of the 5.875% Notes will be released in any of the following circumstances:
if, as a result of the sale of its capital stock, such subsidiary guarantor ceases to be a restricted subsidiary
if such subsidiary guarantor is designated as an “Unrestricted Subsidiary”
upon defeasance or satisfaction and discharge of the 5.875% Notes
if such subsidiary guarantor has been released from its guarantees of indebtedness under the New Credit Facilities and all capital markets debt securities
Covenants
New Credit Facilities— Our New Credit Facilities impose restrictions on us, including limitations on our ability to pay cash dividends, incur debt or liens, redeem or repurchase Vista Outdoor stock, enter into transactions with affiliates, make investments, merge or consolidate with others or dispose of assets. The financial covenants of the New Credit Facilities are to maintain Excess Availability under the ABL Revolving Credit Facility of $42,500 at all times. If Excess Availability falls below $42,500 we must maintain a Consolidated Fixed Charge Coverage Ratio ("FCCR"), as defined below, of not less than 1.00:1.00. As noted above, the Excess Availability under the ABL Revolving Credit Facility was $289,705 as of June 28, 2020. If we do not comply with the covenants in any of the New Credit Facilities, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under each of the New Credit Facilities.
The FCCR is Covenant EBITDA ("earnings before interest, taxes, depreciation, and amortization"), (which includes adjustments for items such as non-recurring or extraordinary items, non-cash charges related to stock-based compensation, and intangible asset impairment charges, as well as adjustments for acquired or divested business units on a pro forma basis) less
capital expenditures (subject to certain adjustments) for the past four fiscal quarters, divided by fixed charges (which includes debt principal and interest payments made over the past four fiscal quarters; plus income tax payments and restricted payments over the past four fiscal quarters).
5.875% Notes—The indenture governing the 5.875% Notes contains covenants that, among other things, limit our ability to incur or permit to exist certain liens, sell, transfer or otherwise dispose of assets, consolidate, amalgamate, merge or sell all or substantially all of our assets, enter into transactions with affiliates, enter into agreements restricting our subsidiaries’ ability to pay dividends, incur additional indebtedness, pay dividends or make other distributions or repurchase or redeem our capital stock, prepay, redeem or repurchase certain debt and make loans and investments.
The New Credit Facilities and the indenture governing the 5.875% Notes contain cross-default provisions so that noncompliance with the covenants within one debt agreement could also cause a default under the other debt agreements. As of June 28, 2020, we were in compliance with the covenants of all of the debt agreements. However, we cannot provide assurance that we will be able to comply with such 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 New Credit Facilities may prevent us from drawing under the ABL Revolving Credit Facility and may result in an event of default under the New Credit Facilities, which default may allow the creditors to accelerate the related indebtedness and the indebtedness under our 5.875% Notes and proceed against the collateral that secures the indebtedness. We may not have sufficient liquidity to repay the indebtedness in such circumstances.
Cash paid for interest on debt—Cash paid for interest on debt, including commitment fees and prepayment premium fees, for the three months ended June 28, 2020 and June 30, 2019 totaled $7,302 and $15,654, respectively.
v3.20.2
Employee Benefit Plans
3 Months Ended
Jun. 28, 2020
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans

During the three months ended June 28, 2020, we recognized an aggregate net benefit for employee defined benefit plans of $21 compared to $101 during the three months ended June 30, 2019. The decrease in income was primarily due to the lower than expected return on plan assets and increased loss amortization, partially offset by decreased interest rates.

Employer contributions and distributions—We made the entire fiscal 2021 required contributions to the pension trust during the three months ended June 28, 2020 of $7,100, and $0 in contributions were required for the three months ended June 30, 2019. For those same periods, we made no contributions to our other postretirement benefit plans, and we made no distributions to retirees under the non-qualified supplemental executive retirement plan.

No additional contributions are required to be made to the pension trust for the remainder of fiscal 2021. No additional contributions are required, and we are not expecting to make any contributions to our other postretirement benefit plans, or directly to retirees under our non-qualified supplemental executive retirement plans for the remainder of fiscal 2021.
v3.20.2
Income Taxes
3 Months Ended
Jun. 28, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our provision for income taxes includes federal, foreign, and state income taxes. Income tax provisions for interim periods are based on the year-to-date effective tax rate for both the current and prior year.
The income tax provisions for the three months ended June 28, 2020 and June 30, 2019 represent effective tax rates of 2.8% and (4.6)%, respectively. The increase in the rate from the prior year quarter is primarily caused by impairment of held-for-sale assets in the prior year quarter, offset by a decrease in the valuation allowance due to operating income in the current quarter.
The effective tax rate for the three months ended June 28, 2020 was lower than the statutory rate primarily because of the decreased valuation allowance. The effective tax rate for the three months ended June 30, 2019 was lower than the statutory rate primarily because of increased valuation allowance and interest expense on uncertain tax positions. The operating loss in the prior year quarter caused the unfavorable tax adjustments to decrease the rate.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in tax years 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The CARES Act also contains modifications on the limitation of business interest for tax years beginning in 2019 and 2020. The modifications to Section 163(j) increase the allowable interest expense deduction. We anticipate that the CARES Act will impact our tax provision for the tax year ended March 31, 2021 due to the increased allowable interest expense deduction.
On February 9, 2015, we entered into a Tax Matters Agreement with Orbital ATK that governs the respective rights, responsibilities and obligations of Vista Outdoor and Orbital ATK following the distribution of all of the shares of our common stock on a pro rata basis to the holders of Alliant Techsystems Inc. common stock (the “Spin-Off”) with respect to tax liabilities and benefits, tax attributes, tax contests and other tax sharing regarding U.S. federal, state, local and foreign income taxes, other tax matters and related tax returns. We have joint and several liability with Orbital ATK to the IRS for the consolidated U.S.
federal income taxes of the Orbital ATK consolidated group relating to the taxable periods in which we were part of that group. However, the Tax Matters Agreement specifies the portion, if any, of this tax liability for which we bear responsibility, and Orbital ATK agrees to indemnify us against any amounts for which we are not responsible. The Tax Matters Agreement also provides special rules for allocating tax liabilities in the event that the Spin-Off is determined not to be tax-free. Though valid between the parties, the Tax Matters Agreement is not binding on the IRS.
The allocation of tax liabilities for the period from April 1, 2014 through the date of the Spin-Off was settled on June 15, 2018. Orbital ATK paid Vista Outdoor $13,047 to settle this matter, which was reflected as an adjustment to the distribution from Vista Outdoor to Orbital ATK at the time of the Spin-Off.
Prior to the Spin-Off, Orbital ATK or one of its subsidiaries filed income tax returns in the U.S. federal and various U.S. state jurisdictions that included Vista Outdoor. In addition, certain of our subsidiaries filed income tax returns in foreign jurisdictions. Since the Spin-Off, we file income tax returns in the U.S. federal, foreign and various U.S. state jurisdictions. With a few exceptions, Orbital ATK and its subsidiaries and Vista are no longer subject to U.S. federal, state and local, or foreign income tax examinations by tax authorities prior to 2013. The IRS has completed the audits of Orbital ATK through fiscal 2014 and is currently auditing Orbital ATK's tax return for fiscal 2015. The IRS has also completed the audit of our tax return for the period that began after the Spin-Off (February 9, 2015) and ended on March 31, 2015. We believe appropriate provisions for all outstanding issues relating to our portion of these returns have been made for all remaining open years in all jurisdictions.
Income taxes paid, net of refunds, totaled $265 and $(253) for the three months ended June 28, 2020 and June 30, 2019, respectively.
Although the timing and outcome of income tax audit settlements are uncertain, it is reasonably possible that a $14,072 reduction of the uncertain tax benefits will occur in the next 12 months. The settlement of these unrecognized tax benefits could result in earnings from $0 to $13,086.
v3.20.2
Contingencies
3 Months Ended
Jun. 28, 2020
Loss Contingency [Abstract]  
Contingencies Contingencies
Litigation—From time to time, we are subject to various legal proceedings, including lawsuits, which arise out of, and are incidental to, the conduct of our business. We do not consider any of such proceedings that are currently pending, individually or in the aggregate to be material to our business or likely to result in a material adverse effect on our operating results, financial condition, or cash flows.
Environmental liabilities—Our operations and ownership or use of real property are subject to a number of federal, state, and local environmental laws and regulations, as well as applicable foreign laws and regulations, including those governing the discharge of hazardous materials, remediation of contaminated sites, and restoration of damage to the environment. We are obligated to conduct investigation and/or remediation activities at certain sites that we own or operate or formerly owned or operated.
Certain of our former subsidiaries have been identified as potentially responsible parties (“PRP”), along with other parties, in regulatory agency actions associated with hazardous waste sites. As a PRP, those former subsidiaries may be required to pay a share of the costs of the investigation and clean-up of these sites. In that event, we would be obligated to indemnify those subsidiaries for those costs. While uncertainties exist with respect to the amounts and timing of the ultimate
environmental liabilities, based on currently available information, we have concluded that these matters, individually or in the aggregate, will not have a material adverse effect on our operating results, financial condition, or cash flows. We have recorded a liability for environmental remediation of $708 and $710 as of June 28, 2020 and March 31, 2020, respectively.
We could incur substantial additional costs, including cleanup costs, resource restoration, fines, and penalties or third-party property damage or personal injury claims, as a result of violations or liabilities under environmental laws or non-compliance with environmental permits. While environmental laws and regulations have not had a material adverse effect on our operating results, financial condition, or cash flows in the past, and we have environmental management programs in place to mitigate these risks, it is difficult to predict whether they will have a material impact in the future.
v3.20.2
Condensed Consolidating Financial Statements
3 Months Ended
Jun. 28, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Consolidating Financial Statements Condensed Consolidating Financial Statements
In accordance with the provisions of the 5.875% Notes, the outstanding notes are guaranteed on an unsecured basis, jointly and severally and fully and unconditionally, by substantially all of Vista Outdoor domestic subsidiaries and by Advanced Arrow S. de R.L. de C.V. and Hydrosport, S. de R.L. de C.V. The parent company has no independent assets or operations. All of these guarantor subsidiaries are 100% owned by Vista Outdoor and any subsidiaries of the parent company other than the subsidiary guarantors are minor. There are no significant restrictions on the Company’s ability, or the ability of any guarantor, to obtain funds from its subsidiaries through dividends or loans, and there are no material restrictions on the ability of our consolidated and unconsolidated subsidiaries to transfer funds to the Company in the form of cash dividends, loans or advances.  These guarantees are senior or senior subordinated obligations, as applicable, of the applicable subsidiary guarantors.
v3.20.2
Operating Segment Information
3 Months Ended
Jun. 28, 2020
Segment Reporting [Abstract]  
Operating Segment Information Operating Segment Information
During the fourth quarter of fiscal 2020, we realigned our internal reporting structure and modified our operating segment structure to provide investors with improved disclosure that is consistent with how our chief operating decision maker (CODM), our Chief Executive Officer, allocates resources and makes decisions. Based on these changes, management concluded that we had six operating segments, which have been aggregated into two reportable segments, Shooting Sports and Outdoor Products.
Shooting Sports is comprised of our Ammunition and Hunting and Shooting operating segments.  Outdoor Products is comprised of our Action Sports, Outdoor Cooking, Hydration, and Golf operating segments. The operating segments comprising the Company’s respective reportable segments share numerous commonalities, including similar core consumers, distribution channels and supply chains.
Our CODM relies on internal management reporting that analyzes consolidated results to the net income level and operating segment's EBIT, which is defined as earnings (loss) before interest and income taxes. Certain corporate-related costs and other non-recurring costs are not allocated to the segments in order to present comparable results from period to period. These include impairment charges, restructuring related-costs, merger and acquisition costs, and other non-recurring items.
Shooting Sports generated approximately 70% of our sales in three months ended June 28, 2020. Shooting Sports is comprised of ammunition and hunting shooting accessories product lines. Ammunition products include centerfire ammunition, rimfire ammunition, shotshell ammunition and reloading components. Hunting accessories products include high-performance hunting arrows, game calls, hunting blinds, game cameras, decoys, and optics products such as binoculars, riflescopes and telescopes. Shooting accessories products include reloading equipment, clay targets, premium gun care products and tactical products such as holsters, duty gear, bags and packs. Our Firearms business was divested early in the second quarter of fiscal 2020.
Outdoor Products generated approximately 30% of our external sales in the three months ended June 28, 2020. Outdoor Products is comprised of sports protection, outdoor cooking, golf, and hydration product lines. Sports protection includes helmets, goggles, and accessories for cycling, snow sports, action sports and powersports. Outdoor cooking includes grills and stoves. Golf products include laser rangefinders and other golf technology products. Hydration products include hydration packs and water bottles.
Sales to Walmart represented 10% and 14% of our sales in the three months ended June 28, 2020 and June 30, 2019, respectively. No other single customer contributed 10% or more of our sales in the three months ended June 28, 2020 and June 30, 2019.
The following tables contain information utilized by management to evaluate our operating segments for the interim periods presented:
 
 
Three months ended June 28, 2020
 
 
Shooting Sports
 
Outdoor Products
 
(a) Corporate and other reconciling items
 
Total
Sales, net
 
$
334,158

 
$
144,982

 
$

 
$
479,140

Gross Profit
 
84,502

 
40,866

 

 
125,368

EBIT
 
54,565

 
11,506

 
(18,028
)
 
48,043

 
 
Three months ended June 30, 2019 (b)
 
 
Shooting Sports
 
Outdoor Products
 
(a) Corporate and other reconciling items
 
Total
Sales, net
 
$
308,797

 
$
150,977

 
$

 
$
459,774

Gross Profit
 
55,393

 
39,685

 

 
$
95,078

EBIT
 
16,819

 
6,852

 
(28,425
)
 
$
(4,754
)

(a) There were no reconciling items for the three months ended June 28, 2020. Reconciling items for the three months ended June 30, 2019 include $9,429 of held for sale impairment charges related to the historical shooting sports segment, contingent consideration expenses of $843 and transaction costs of $401.
(b) We modified the structure of our reportable segments during the fourth quarter of fiscal 2020. Accordingly, prior period amounts have been reclassified to conform with the current period presentation.
There were no significant intersegment sales for the three months ended June 28, 2020 and June 30, 2019.
v3.20.2
Significant Accounting Policies (Policies)
3 Months Ended
Jun. 28, 2020
Accounting Policies [Abstract]  
New Accounting Pronouncements
New Accounting Pronouncements

Our accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements included in our fiscal year 2020 Annual Report on Form 10-K. Such significant accounting policies are applicable for periods prior to the following new accounting standards.

Accounting Standards Adopted During this Fiscal Year

On April 1, 2020, we adopted ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("Topic 326"). This new standard is intended to improve financial reporting by requiring more timely recording of credit losses on our trade account receivable and requires the measurement of all expected credit losses based on historical experience, current conditions, and reasonable and supportable forecasts. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements and disclosures. For further information, see Note 7, Receivables.

On April 1, 2020, we adopted ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement." The amendments in this ASU removed, modified or added to the disclosure requirements for fair value measurements in ASC Topic 820, "Fair Value Measurement" ("Topic 820"). The adoption of this ASU did not have a material impact on our condensed consolidated financial statements and disclosures.

Accounting Standards Yet to Be Adopted

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021, although early adoption is permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We are currently evaluating the impacts of the provisions of ASU 2019-12 on our consolidated financial statements.
v3.20.2
Fair Value of Financial Instruments (Tables)
3 Months Ended
Jun. 28, 2020
Fair Value Disclosures [Abstract]  
Schedule of carrying values and estimated fair values of assets and liabilities that are not measured on a recurring basis
The table below discloses information about carrying values and estimated fair value relating to our financial assets and liabilities:
 
 
June 28, 2020
 
March 31, 2020
 
 
Carrying
amount
 
Fair
value
 
Carrying
amount
 
Fair
value
Fixed-rate debt (1)
 
$
350,000

 
$
344,750

 
$
350,000

 
$
284,375

Variable-rate debt (2)
 
99,000

 
99,000

 
167,256

 
167,256


(1) In fiscal 2016, we issued $350,000 aggregate principal amount of 5.875% Senior Notes (the "5.875% Notes") that mature on October 1, 2023. These notes are unsecured and senior obligations. The fair value of the fixed-rate long-term debt is calculated based on current market rates for debt of the same risk and maturities, based on market quotes for each issuance. We consider these to be Level 2 instruments. See Note 12, Long-term Debt, for information on long-term debt, including certain risks and uncertainties.
(2) The carrying value of the amounts outstanding under our ABL Revolving Credit Facility approximates the fair value due to the short-term nature of these obligations. 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 12, Long-term Debt, for additional information on our credit facilities, including related certain risks and uncertainties.
v3.20.2
Leases (Tables)
3 Months Ended
Jun. 28, 2020
Leases [Abstract]  
Assets And Liabilities, Lessee
The amounts of assets and liabilities related to our operating leases were as follows:
 
 
Balance Sheet Caption
 
June 28, 2020
 
March 31, 2020
Assets:
 
 
 
 
 
 
Operating lease assets
 
Operating lease assets
 
$
67,237

 
$
69,024

 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Current:
 
 
 
 
 
 
Operating lease liabilities
 
Other current liabilities
 
$
10,758

 
$
10,780

Long-term:
 
 
 
 
 
 
Operating lease liabilities
 
Long-term operating lease liabilities
 
71,686

 
73,738

Total lease liabilities
 
 
 
$
82,444

 
$
84,518


Lease, Cost
The components of lease expense are recorded to cost of sales and selling, general and administration expenses in the unaudited condensed consolidated statements of comprehensive income (loss). The components of lease expense were as follows:
 
 
Three months ended
 
 
June 28, 2020
 
June 30, 2019
Fixed operating lease costs (1)
 
$
5,059

 
$
5,017

Variable operating lease costs
 
582

 
535

Sublease income
 
(388
)
 
(281
)
Net Lease costs
 
$
5,253

 
$
5,271

(1) Includes short-term leases, which are immaterial.
 
 
June 28, 2020
 
March 31, 2020
Weighted Average Remaining Lease Term (Years):
 
 
 
 
Operating leases
 
9.44

 
9.55

 
 
 
 
 
Weighted Average Discount Rate:
 
 
 
 
Operating leases
 
8.66
%
 
8.64
%

Supplemental cash flow information related to leases is as follows:
 
 
Three months ended
 
 
June 28, 2020
 
June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
 
Operating cash flows - operating leases
 
$
4,652

 
$
5,205

Operating lease assets obtained in exchange for lease liabilities:
 
 
 
 
Operating leases
 
815

 
701


Lessee, Operating Lease, Liability, Maturity
The approximate minimum lease payments under non-cancelable operating leases as of June 28, 2020 are as follows:
Remainder of fiscal 2021
 
$
13,151

Fiscal 2022
 
15,105

Fiscal 2023
 
13,379

Fiscal 2024
 
11,748

Fiscal 2025
 
10,718

Thereafter
 
60,714

Total lease payments
 
124,815

Less imputed interest
 
(42,371
)
Present value of lease liabilities
 
$
82,444


v3.20.2
Revenue Recognition (Tables)
3 Months Ended
Jun. 28, 2020
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue

The following tables disaggregate our net sales by major category:
 
 
Three months ended
 
 
June 28, 2020
 
June 30, 2019(1)
 
 
Shooting Sports
 
Outdoor Products
 
Total
 
Shooting Sports
 
Outdoor Products
 
Total
Ammunition
 
$
261,762

 
$

 
$
261,762

 
$
213,810

 
$

 
$
213,810

Firearms
 

 

 

 
24,017

 

 
24,017

Hunting and Shooting
 
72,396

 

 
72,396

 
70,970

 

 
70,970

Action Sports
 

 
72,859

 
72,859

 

 
67,909

 
67,909

Outdoor Recreation (2)
 

 
72,123

 
72,123

 

 
83,068

 
83,068

Total
 
$
334,158

 
$
144,982

 
$
479,140

 
$
308,797

 
$
150,977

 
$
459,774

 
 
 
 
 
 
 
 
 
 
 
 
 
Geographic Region:
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
$
307,388

 
$
115,017

 
$
422,405

 
$
267,823

 
$
113,333

 
$
381,156

Rest of the World
 
26,770

 
29,965

 
56,735

 
40,974

 
37,644

 
78,618

Total
 
$
334,158

 
$
144,982

 
$
479,140

 
$
308,797

 
$
150,977

 
$
459,774


(1) We changed our operating segments during the fourth quarter of fiscal 2020 (see Note 17, Operating Segment Information). Accordingly, prior period amounts have been reclassified to conform with the current period presentation.
(2) Outdoor Recreation includes the operating segments: Hydration, Outdoor Cooking, and Golf.
v3.20.2
Earnings Per Share (Tables)
3 Months Ended
Jun. 28, 2020
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following tables set forth the computation of basic and diluted earnings per share:
 
 
Three months ended
(Amounts in thousands except per share data unless otherwise indicated)
 
June 28, 2020
 
June 30, 2019
Numerator:
 
 
 
 
Net income (loss)
 
$
40,476

 
$
(16,615
)
Denominator:
 
 
 
 
Weighted-average number of common shares outstanding basic:
 
58,057

 
57,722

Dilutive effect of share-based awards (1)
 
900

 

Diluted shares
 
58,957

 
57,722

Earnings (loss) per common share:
 
 

 
 

Basic
 
$
0.70

 
$
(0.29
)
Diluted
 
$
0.69

 
$
(0.29
)

(1) Potentially dilutive securities, which were not included in the computation of diluted earnings per share, because either the effect would have been anti-dilutive, or the options’ exercise prices were greater than the average market price of the common stock, were 528 for the three months ended June 28, 2020. Due to the loss from continuing operations for the three months ended June 30, 2019, there are no common shares added to calculate dilutive EPS because the effect would be antidilutive.
v3.20.2
Receivables (Tables)
3 Months Ended
Jun. 28, 2020
Receivables [Abstract]  
Schedule of accounts, notes, loans and financing receivable
Net receivables are summarized as follows:
 
 
June 28, 2020
 
March 31, 2020
Trade receivables
 
$
335,484

 
$
323,436

Other receivables
 
4,286

 
4,841

Less: allowance for estimated credit losses and discounts
 
(15,151
)
 
(14,760
)
Net receivables
 
$
324,619

 
$
313,517


Note Receivable is summarized as follows:
 
 
June 28, 2020
 
March 31, 2020
Principal
 
$
12,000

 
$
12,000

Less: unamortized discount
 
(3,804
)
 
(3,990
)
Note receivable, net, included within Deferred charges and other non-current assets
 
$
8,196

 
$
8,010


Schedule of reconciliation of activity related to the allowance for estimated credit losses and discounts
The following provides a reconciliation of the activity related to the allowance for estimated credit losses and discounts during the three months ended June 28, 2020:
Balance, March 31, 2020
 
$
14,760

Provision for credit losses
 
707

Write-off of uncollectible amounts, net of recoveries
 
(261
)
Discounts and other adjustments
 
(55
)
Balance, June 28, 2020
 
$
15,151


v3.20.2
Inventories (Tables)
3 Months Ended
Jun. 28, 2020
Inventory Disclosure [Abstract]  
Schedule of Inventory, Current
Current net inventories consist of the following:
 
 
June 28, 2020
 
March 31, 2020
Raw materials
 
$
92,636

 
$
85,609

Work in process
 
35,514

 
33,622

Finished goods
 
204,060

 
212,062

Net inventories
 
$
332,210

 
$
331,293


v3.20.2
Accumulated Other Comprehensive Loss (AOCL) (Tables)
3 Months Ended
Jun. 28, 2020
Equity [Abstract]  
Schedule of components of AOCL, net of income taxes
The components of AOCL, net of income taxes, are as follows:
 
 
June 28, 2020
 
March 31, 2020
Derivatives
 
$
(445
)
 
$
(1,426
)
Pension and other postretirement benefits liabilities
 
(92,463
)
 
(93,353
)
Cumulative translation adjustment
 
(5,866
)
 
(6,215
)
Total AOCL
 
$
(98,774
)
 
$
(100,994
)

Schedule of changes in balance of AOCL, net of income taxes
The following tables detail 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:
 
 
Three months ended June 28, 2020
 
 
Derivatives
 
Pension and other postretirement benefits liabilities
 
Cumulative translation adjustment
 
Total
Beginning balance in AOCL
 
$
(1,426
)
 
$
(93,353
)
 
$
(6,215
)
 
$
(100,994
)
Change in fair value of derivatives
 
(5
)
 

 

 
(5
)
Net losses reclassified from AOCL
 
986

 

 

 
986

Net actuarial losses reclassified from AOCL (1)
 

 
968

 

 
968

Prior service costs reclassified from AOCL (1)
 

 
(78
)
 

 
(78
)
Net change in cumulative translation adjustment
 

 

 
349

 
349

Ending balance in AOCL
 
$
(445
)
 
$
(92,463
)
 
$
(5,866
)
 
$
(98,774
)
(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.
 
 
Three months ended June 30, 2019
 
 
Derivatives
 
Pension and other postretirement benefits liabilities
 
Cumulative translation adjustment
 
Total
Beginning balance in AOCL
 
$
735

 
$
(74,670
)
 
$
(9,032
)
 
$
(82,967
)
Change in fair value of derivatives

 
(1,150
)
 

 

 
(1,150
)
Net actuarial losses reclassified from AOCL (1)
 

 
811

 

 
811

Prior service costs reclassified from AOCL (1)
 

 
(78
)
 

 
(78
)
Net change in cumulative translation adjustment
 

 
 
 
764

 
764

Ending balance in AOCL
 
$
(415
)
 
$
(73,937
)
 
$
(8,268
)
 
$
(82,620
)

(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.
v3.20.2
Goodwill and Intangible Assets (Tables)
3 Months Ended
Jun. 28, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of changes in the carrying amount of goodwill by segment
There were no changes in the carrying amount of goodwill during the three months ended June 28, 2020. The entire goodwill balance of $83,167 as of June 28, 2020 and March 31, 2020 is allocated to our Shooting Sports segment.

Schedule of net intangibles ntangible assets by major asset class consisted of the following:
 
 
June 28, 2020
 
March 31, 2020
 
 
Gross
carrying
amount
 
Accumulated
amortization
 
Total
 
Gross
carrying
amount
 
Accumulated
amortization
 
Total
Trade names
 
$
48,360

 
$
(15,361
)
 
$
32,999

 
$
48,360

 
$
(14,428
)
 
$
33,932

Patented technology
 
16,684

 
(10,708
)
 
5,976

 
16,684

 
(10,490
)
 
6,194

Customer relationships and other
 
238,483

 
(87,261
)
 
151,222

 
238,220

 
(83,349
)
 
154,871

Total
 
303,527

 
(113,330
)
 
190,197

 
303,264

 
(108,267
)
 
194,997

Non-amortizing trade names
 
111,103

 

 
111,103

 
111,103

 

 
111,103

Net intangible assets
 
$
414,630

 
$
(113,330
)
 
$
301,300

 
$
414,367

 
$
(108,267
)
 
$
306,100


Schedule of expected future amortization expense
As of June 28, 2020, we expect amortization expense related to these assets to be as follows:
Remainder of fiscal 2021
 
$
14,912

Fiscal 2022
 
19,831

Fiscal 2023
 
19,715

Fiscal 2024
 
19,663

Fiscal 2025
 
19,645

Thereafter
 
96,431

Total
 
$
190,197


v3.20.2
Other Current and Non-current Liabilities (Tables)
3 Months Ended
Jun. 28, 2020
Other Liabilities Disclosure [Abstract]  
Schedule of major categories of other current and non-current liabilities
Other current and non-current liabilities consisted of the following:
 
 
June 28, 2020
 
March 31, 2020
Other current liabilities:
 
 
 
 
Rebates
 
$
11,927

 
$
16,225

Accrual for in-transit inventory
 
18,557

 
11,064

Other
 
75,718

 
70,908

Total other current liabilities
 
$
106,202

 
$
98,197

 
 
 
 
 
Other non-current liabilities:
 
 
 
 
Non-current portion of accrued income tax liability
 
$
31,158

 
$
30,159

Other
 
17,859

 
13,345

Total other non-current liabilities
 
$
49,017

 
$
43,504


Schedule of reconciliation of the changes in product warranty liability
The following is a reconciliation of the changes in our product warranty liability during the periods presented:
Balance, March 31, 2020
 
 
 
$
9,149

Payments made
 
 
 
(858
)
Warranties issued
 
 
 
771

Changes related to pre-existing warranties and other adjustments
 
 
 
(82
)
Balance, June 28, 2020
 
 
 
$
8,980


v3.20.2
Long-term Debt (Tables)
3 Months Ended
Jun. 28, 2020
Debt Disclosure [Abstract]  
Schedule of long-term debt
Long-term debt consisted of the following:
 
 
June 28, 2020
 
March 31, 2020
ABL Revolving Credit Facility
 
$
99,000

 
$
167,256

5.875% Senior Notes
 
350,000

 
350,000

Principal amount of long-term debt
 
449,000

 
517,256

Less: unamortized deferred financing costs
 
(5,073
)
 
(5,450
)
Carrying amount of long-term debt
 
$
443,927

 
$
511,806


v3.20.2
Operating Segment Information (Tables)
3 Months Ended
Jun. 28, 2020
Segment Reporting [Abstract]  
Summary Results by Segment
The following tables contain information utilized by management to evaluate our operating segments for the interim periods presented:
 
 
Three months ended June 28, 2020
 
 
Shooting Sports
 
Outdoor Products
 
(a) Corporate and other reconciling items
 
Total
Sales, net
 
$
334,158

 
$
144,982

 
$

 
$
479,140

Gross Profit
 
84,502

 
40,866

 

 
125,368

EBIT
 
54,565

 
11,506

 
(18,028
)
 
48,043

 
 
Three months ended June 30, 2019 (b)
 
 
Shooting Sports
 
Outdoor Products
 
(a) Corporate and other reconciling items
 
Total
Sales, net
 
$
308,797

 
$
150,977

 
$

 
$
459,774

Gross Profit
 
55,393

 
39,685

 

 
$
95,078

EBIT
 
16,819

 
6,852

 
(28,425
)
 
$
(4,754
)

(a) There were no reconciling items for the three months ended June 28, 2020. Reconciling items for the three months ended June 30, 2019 include $9,429 of held for sale impairment charges related to the historical shooting sports segment, contingent consideration expenses of $843 and transaction costs of $401.
(b) We modified the structure of our reportable segments during the fourth quarter of fiscal 2020. Accordingly, prior period amounts have been reclassified to conform with the current period presentation.
v3.20.2
Significant Accounting Policies (Details)
3 Months Ended
Jun. 28, 2020
state
reportable_segment
Accounting Policies [Abstract]  
Number of Reportable Segments | reportable_segment 2
Number of states in which the entity operates | state 14
v3.20.2
Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
3 Months Ended
Jul. 05, 2019
Jun. 28, 2020
Jun. 30, 2019
Mar. 31, 2020
Fair value of assets and liabilities        
Receivable with Imputed Interest, Face Amount $ 12,000 $ 12,000   $ 12,000
Note receivable with imputed interest, term of contract 5 years      
Long-term Debt   443,927   511,806
Impairment of Long-Lived Assets to be Disposed of   0 $ (9,429)  
Fair value of assets and liabilities that are measured on a recurring basis | Fair value        
Fair value of assets and liabilities        
Receivable with Imputed Interest, Effective Yield (Interest Rate) 10.00%      
Fair value of assets and liabilities that are not measured on a recurring basis | Carrying amount        
Fair value of assets and liabilities        
Fixed-rate debt   350,000   350,000
Variable-rate debt   99,000   167,256
Fair value of assets and liabilities that are not measured on a recurring basis | Fair value        
Fair value of assets and liabilities        
Fixed-rate debt   344,750   284,375
Variable-rate debt   $ 99,000   $ 167,256
v3.20.2
Leases - Narrative (Details)
Jun. 28, 2020
Minimum  
Lessee, Lease, Description [Line Items]  
Renewal term (in years) 3 years
v3.20.2
Leases - Lease Assets and Liabilities (Details) - USD ($)
$ in Thousands
Jun. 28, 2020
Mar. 31, 2020
Leases [Abstract]    
Operating lease assets $ 67,237 $ 69,024
Operating lease liabilities 10,758 10,780
Operating lease liabilities 71,686 73,738
Total lease liabilities $ 82,444 $ 84,518
v3.20.2
Leases - Lease Cost (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 28, 2020
Jun. 30, 2019
Mar. 31, 2020
Leases [Abstract]      
Fixed operating lease costs (1) $ 5,059 $ 5,017  
Variable operating lease costs 582 535  
Sublease income (388) (281)  
Net Lease costs $ 5,253 $ 5,271  
Weighted Average Remaining Lease Term (Years): 9 years 5 months 8 days   9 years 6 months 18 days
Weighted Average Discount Rate: 8.66%   8.64%
v3.20.2
Leases - Future Minimum Lease Payments (Details) - USD ($)
$ in Thousands
Jun. 28, 2020
Mar. 31, 2020
Leases [Abstract]    
Remainder of fiscal 2021 $ 13,151  
Fiscal 2022 15,105  
Fiscal 2023 13,379  
Fiscal 2024 11,748  
Fiscal 2025 10,718  
Thereafter 60,714  
Total lease payments 124,815  
Less imputed interest (42,371)  
Present value of lease liabilities $ 82,444 $ 84,518
v3.20.2
Leases - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 28, 2020
Jun. 30, 2019
Leases [Abstract]    
Cash paid for amounts included in the measurement of lease liabilities: $ 4,652 $ 5,205
Operating lease assets obtained in exchange for lease liabilities: $ 815 $ 701
v3.20.2
Derivative Financial Instruments (Details)
lb in Thousands
3 Months Ended
Jun. 28, 2020
lb
Lead Forward Contract  
Derivative [Line Items]  
Derivative, notional amount, mass 25,250
v3.20.2
Revenue Recognition (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 28, 2020
Jun. 30, 2019
Disaggregation of Revenue [Line Items]    
Sales, net $ 479,140 $ 459,774
Minimum    
Disaggregation of Revenue [Line Items]    
Contract with customer, payment terms 30 days  
Maximum    
Disaggregation of Revenue [Line Items]    
Contract with customer, payment terms 60 days  
United States    
Disaggregation of Revenue [Line Items]    
Sales, net $ 422,405 381,156
Rest of the World    
Disaggregation of Revenue [Line Items]    
Sales, net 56,735 78,618
Ammunition    
Disaggregation of Revenue [Line Items]    
Sales, net 261,762 213,810
Firearms    
Disaggregation of Revenue [Line Items]    
Sales, net 0 24,017
Hunting and Shooting    
Disaggregation of Revenue [Line Items]    
Sales, net 72,396 70,970
Action Sports    
Disaggregation of Revenue [Line Items]    
Sales, net 72,859 67,909
Outdoor Recreation (2)    
Disaggregation of Revenue [Line Items]    
Sales, net 72,123 83,068
Outdoor Products    
Disaggregation of Revenue [Line Items]    
Sales, net 144,982 150,977
Outdoor Products | United States    
Disaggregation of Revenue [Line Items]    
Sales, net 115,017 113,333
Outdoor Products | Rest of the World    
Disaggregation of Revenue [Line Items]    
Sales, net 29,965 37,644
Outdoor Products | Action Sports    
Disaggregation of Revenue [Line Items]    
Sales, net 72,859 67,909
Outdoor Products | Outdoor Recreation (2)    
Disaggregation of Revenue [Line Items]    
Sales, net 72,123 83,068
Shooting Sports    
Disaggregation of Revenue [Line Items]    
Sales, net 334,158 308,797
Shooting Sports | United States    
Disaggregation of Revenue [Line Items]    
Sales, net 307,388 267,823
Shooting Sports | Rest of the World    
Disaggregation of Revenue [Line Items]    
Sales, net 26,770 40,974
Shooting Sports | Ammunition    
Disaggregation of Revenue [Line Items]    
Sales, net 261,762 213,810
Shooting Sports | Firearms    
Disaggregation of Revenue [Line Items]    
Sales, net 0 24,017
Shooting Sports | Hunting and Shooting    
Disaggregation of Revenue [Line Items]    
Sales, net $ 72,396 $ 70,970
v3.20.2
Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended
Jun. 28, 2020
Jun. 30, 2019
Earnings Per Share [Abstract]    
Net income (loss) $ 40,476 $ (16,615)
Basic EPS shares outstanding (in shares) 58,057 57,722
Dilutive effect of stock-based awards (in shares) 900 0
Diluted EPS shares outstanding (in shares) 58,957 57,722
Basic (in dollars per share) $ 0.70 $ (0.29)
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 528  
Diluted (in dollars per share) $ 0.69 $ (0.29)
v3.20.2
Receivables (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Jun. 28, 2020
Mar. 31, 2019
Mar. 31, 2020
Jul. 05, 2019
Receivables [Abstract]        
Trade receivables $ 335,484   $ 323,436  
Other receivables 4,286   4,841  
Less: allowance for estimated credit losses and discounts (15,151)   (14,760)  
Net receivables 324,619   313,517  
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Receivable with Imputed Interest, Face Amount 12,000   12,000 $ 12,000
Receivable with Imputed Interest, Discount (3,804)   (3,990)  
Receivable with Imputed Interest, Net Amount $ 8,196   $ 8,010  
Walmart | Accounts Receivable | Credit Concentration Risk        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Concentration risk, percentage 15.00% 13.00%    
v3.20.2
Receivables - Schedule of Reconciliation of Activity Related to the Allowance for Estimated Credit Losses and Discounts (Details)
$ in Thousands
3 Months Ended
Jun. 28, 2020
USD ($)
Receivables [Abstract]  
Balance at beginning of period $ 14,760
Provision for credit losses 707
Write-off of uncollectible amounts, net of recoveries (261)
Discounts and other adjustments (55)
Balance at end of period $ 15,151
v3.20.2
Inventories (Details) - USD ($)
$ in Thousands
Jun. 28, 2020
Mar. 31, 2020
Inventory Disclosure [Abstract]    
Raw materials $ 92,636 $ 85,609
Work in process 35,514 33,622
Finished goods 204,060 212,062
Net inventories 332,210 331,293
Long-term inventories $ 27,925 $ 27,984
v3.20.2
Accumulated Other Comprehensive Loss (AOCL) (Components of Accumulated Other Comprehensive Income) (Details) - USD ($)
$ in Thousands
Jun. 28, 2020
Mar. 31, 2020
Jun. 30, 2019
Mar. 31, 2019
Equity [Abstract]        
Derivatives $ (445) $ (1,426) $ (415) $ 735
Pension and other postretirement benefits liabilities (92,463) (93,353)    
Cumulative translation adjustment (5,866) (6,215)    
Total AOCL $ (98,774) $ (100,994) $ (82,620) $ (82,967)
v3.20.2
Accumulated Other Comprehensive Loss (AOCL) (Changes in the Balance of Accumulated Other Comprehensive Income) (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 28, 2020
Jun. 30, 2019
Mar. 31, 2020
Mar. 31, 2019
Accumulated Other Comprehensive Income Loss [Line Items]        
Derivatives $ (445) $ (415) $ (1,426) $ 735
Pension and other postretirement benefits (92,463)   (93,353)  
Cumulative translation adjustment (5,866)   (6,215)  
Accumulated other comprehensive loss, total (98,774) (82,620) (100,994) (82,967)
Change in fair value of derivatives (5) (1,150)    
Net losses reclassified from AOCL (986)      
Net actuarial losses reclassified from AOCL 968 811    
Prior service costs reclassified from AOCL (78) (78)    
Net change in cumulative translation adjustment 349 764    
Pension and Other Postretirement Benefits Adjustments        
Accumulated Other Comprehensive Income Loss [Line Items]        
Pension and other postretirement benefits (92,463) 73,937 (93,353) (74,670)
Cumulative Translation Adjustment        
Accumulated Other Comprehensive Income Loss [Line Items]        
Cumulative translation adjustment (5,866) (8,268) $ (6,215) $ (9,032)
AOCI Attributable to Parent [Member]        
Accumulated Other Comprehensive Income Loss [Line Items]        
Change in fair value of derivatives (5) (1,150)    
Net losses reclassified from AOCL 986      
Net actuarial losses reclassified from AOCL 968 811    
Prior service costs reclassified from AOCL (78) (78)    
Net change in cumulative translation adjustment $ 349 $ 764    
v3.20.2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 28, 2020
Jun. 30, 2019
Mar. 31, 2020
Indefinite-lived Intangible Assets [Line Items]      
Goodwill $ 83,167   $ 83,167
Amortization expense 4,953 $ 5,097  
Shooting Sports      
Indefinite-lived Intangible Assets [Line Items]      
Goodwill $ 83,167    
v3.20.2
Goodwill and Intangible Assets (Goodwill Rollforward) (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 28, 2020
Mar. 31, 2020
Goodwill [Line Items]    
Goodwill, Period Increase (Decrease) $ 0  
Goodwill 83,167 $ 83,167
Shooting Sports    
Goodwill [Line Items]    
Goodwill $ 83,167  
v3.20.2
Goodwill and Intangible Assets (Schedule of Net Intangible Assets) (Details) - USD ($)
$ in Thousands
Jun. 28, 2020
Mar. 31, 2020
Amortizing assets    
Gross carrying amount $ 303,527 $ 303,264
Accumulated amortization (113,330) (108,267)
Total 190,197 194,997
Intangible assets, gross 414,630 414,367
Net intangible assets 301,300 306,100
Trade names    
Amortizing assets    
Non-amortizing trade names 111,103 111,103
Trade names    
Amortizing assets    
Gross carrying amount 48,360 48,360
Accumulated amortization (15,361) (14,428)
Total 32,999 33,932
Patented technology    
Amortizing assets    
Gross carrying amount 16,684 16,684
Accumulated amortization (10,708) (10,490)
Total 5,976 6,194
Customer relationships and other    
Amortizing assets    
Gross carrying amount 238,483 238,220
Accumulated amortization (87,261) (83,349)
Total $ 151,222 $ 154,871
v3.20.2
Goodwill and Intangible Assets (Future Amortization Expense) (Details) - USD ($)
$ in Thousands
Jun. 28, 2020
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]    
Remainder of fiscal 2021 $ 14,912  
Fiscal 2022 19,831  
Fiscal 2023 19,715  
Fiscal 2024 19,663  
Fiscal 2025 19,645  
Thereafter 96,431  
Total $ 190,197 $ 194,997
v3.20.2
Other Current and Non-current Liabilities (Components of Current and Non-current Liabilities) (Details) - USD ($)
$ in Thousands
Jun. 28, 2020
Mar. 31, 2020
Other Liabilities Disclosure [Abstract]    
Rebates $ 11,927 $ 16,225
Accrual for in-transit inventory 18,557 11,064
Other 75,718 70,908
Total other current liabilities 106,202 98,197
Non-current portion of accrued income tax liability 31,158 30,159
Other 17,859 13,345
Total other non-current liabilities $ 49,017 $ 43,504
v3.20.2
Other Current and Non-current Liabilities (Product Warranty Rollforward) (Details)
$ in Thousands
3 Months Ended
Jun. 28, 2020
USD ($)
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]  
Balance, March 31, 2020 $ 9,149
Payments made (858)
Warranties issued 771
Changes related to pre-existing warranties and other adjustments (82)
Balance, June 28, 2020 $ 8,980
v3.20.2
Long-term Debt (Components of Long-term Debt) (Details) - USD ($)
$ in Thousands
Jun. 28, 2020
Mar. 31, 2020
Aug. 11, 2015
Long-Term Debt      
Principal amount of long-term debt $ 449,000 $ 517,256  
Less: unamortized deferred financing costs (5,073) (5,450)  
Carrying amount of long-term debt 443,927 511,806  
Line of Credit Due 2023      
Long-Term Debt      
Principal amount of long-term debt 99,000 167,256  
5.875% notes      
Long-Term Debt      
Principal amount of long-term debt $ 350,000 $ 350,000  
Carrying amount of long-term debt     $ 350,000
v3.20.2
Long-term Debt (Narrative - Credit Agreement) (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 28, 2020
Mar. 31, 2020
Nov. 19, 2018
Aug. 11, 2015
Long-Term Debt        
Principal amount of long-term debt $ 449,000 $ 517,256    
Letters of credit outstanding, amount 21,692      
Line of credit facility, remaining borrowing capacity 289,705      
Long-term debt 443,927 511,806    
Credit Agreement        
Long-Term Debt        
Unamortized debt issuance costs 6,300      
Term Loan Due 2023        
Long-Term Debt        
Debt Instrument, Face Amount     $ 109,343  
Debt instrument, periodic payment, principal $ 4,834      
Weighted average interest rate (as a percent) 1.99%      
Junior Term Loan        
Long-Term Debt        
Debt Instrument, Face Amount     40,000  
Line of Credit Due 2023        
Long-Term Debt        
Principal amount of long-term debt $ 99,000 167,256    
Annual commitment fee on the unused portion (as a percent) 0.25%      
5.875% notes        
Long-Term Debt        
Principal amount of long-term debt $ 350,000 $ 350,000    
Long-term debt, percentage bearing fixed interest, percentage rate       5.875%
Long-term debt       $ 350,000
Deferred finance costs gross, accordion feature 4,300      
Revolving Credit Facility | New Credit Facilities        
Long-Term Debt        
Debt Instrument, Face Amount     450,000  
Line of Credit Facility, Current Borrowing Capacity 42,500      
First-in, Last-out, Revolving Credit Facility | ABL Revolving Credit Facility        
Long-Term Debt        
Debt Instrument, Face Amount     20,000  
Debt instrument, periodic payment, principal 1,667      
FILO Committment Balance - ABL Revolving Credit Facility $ 11,667      
Basis spread on variable rate margin (as a percent) 1.00%      
Non-First-in, Last-out, Revolving Credit Facility | ABL Revolving Credit Facility        
Long-Term Debt        
Debt Instrument, Face Amount     $ 430,000  
Non-First-in, Last-out, Revolving Credit Facility | Base Rate | ABL Revolving Credit Facility        
Long-Term Debt        
Basis spread on variable rate margin (as a percent) 0.50%      
Non-First-in, Last-out, Revolving Credit Facility | LIBOR | ABL Revolving Credit Facility        
Long-Term Debt        
Basis spread on variable rate margin (as a percent) 1.50%      
Minimum        
Long-Term Debt        
Debt Instrument, Consolidated Fixed Charge Coverage Ratio 1.00      
Minimum | First-in, Last-out, Revolving Credit Facility | Base Rate | ABL Revolving Credit Facility        
Long-Term Debt        
Basis spread on variable rate margin (as a percent) 1.50%      
Minimum | First-in, Last-out, Revolving Credit Facility | LIBOR | ABL Revolving Credit Facility        
Long-Term Debt        
Basis spread on variable rate margin (as a percent) 2.50%      
Minimum | Non-First-in, Last-out, Revolving Credit Facility | Base Rate | ABL Revolving Credit Facility        
Long-Term Debt        
Basis spread on variable rate margin (as a percent) 0.25%      
Minimum | Non-First-in, Last-out, Revolving Credit Facility | LIBOR | ABL Revolving Credit Facility        
Long-Term Debt        
Basis spread on variable rate margin (as a percent) 1.25%      
Maximum | Non-First-in, Last-out, Revolving Credit Facility | Base Rate | ABL Revolving Credit Facility        
Long-Term Debt        
Basis spread on variable rate margin (as a percent) 0.75%      
Maximum | Non-First-in, Last-out, Revolving Credit Facility | LIBOR | ABL Revolving Credit Facility        
Long-Term Debt        
Basis spread on variable rate margin (as a percent) 1.75%      
v3.20.2
Long-term Debt (Narrative - 5.875% Notes) (Details) - USD ($)
3 Months Ended
Jun. 28, 2020
Mar. 31, 2020
Aug. 11, 2015
Debt Instrument [Line Items]      
Long-term debt $ 443,927,000 $ 511,806,000  
5.875% notes      
Debt Instrument [Line Items]      
Long-term debt     $ 350,000,000
Long-term debt, percentage bearing fixed interest, percentage rate     5.875%
Debt issuance costs, gross $ 4,300,000    
Debt instrument, term 8 years    
Bottom threshhold of guarantee $ 50,000,000    
v3.20.2
Long-term Debt (Narrative - Cash Paid for Interest on Debt) (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 28, 2020
Jun. 30, 2019
Debt Disclosure [Abstract]    
Interest paid, including capitalized interest $ 7,302 $ 15,654
v3.20.2
Employee Benefit Plans (Details) - USD ($)
3 Months Ended
Jun. 28, 2020
Jun. 30, 2019
Defined Benefit Plans    
Defined benefit plan, net periodic benefit $ 21,000 $ 101,000
Pension Plan    
Defined Benefit Plans    
Contribution by employer 7,100,000 0
Additional required contributions by employer for remainder of fiscal year 0  
Other Postretirement Benefit Plans, Defined Benefit    
Defined Benefit Plans    
Contribution by employer 0 0
Required and expected contributions by employer for remainder of fiscal year 0  
Supplemental Employee Retirement Plan    
Defined Benefit Plans    
Distributions by employer 0 $ 0
Required and expected contributions by employer for remainder of fiscal year $ 0  
v3.20.2
Income Taxes (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 15, 2018
Jun. 28, 2020
Jun. 30, 2019
Income Tax Disclosure [Abstract]      
Income tax provision (as a percent)   2.80% (4.60%)
Settlement from former parent $ (13,047)    
Income Taxes Paid, Net   $ 265 $ (253)
Potential reduction of uncertain tax benefits over the next 12 months from audit settlements   14,072  
Minimum      
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]      
Unrecognized tax benefits that would impact effective tax rate   0  
Maximum      
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]      
Unrecognized tax benefits that would impact effective tax rate   $ 13,086  
v3.20.2
Contingencies (Details) - USD ($)
$ in Thousands
Jun. 28, 2020
Mar. 31, 2020
Loss Contingency [Abstract]    
Accrual for environmental loss contingencies $ 708 $ 710
v3.20.2
Operating Segment Information (Narrative) (Details)
3 Months Ended
Jun. 28, 2020
USD ($)
operating_segment
reportable_segment
Jun. 30, 2019
USD ($)
Revenue, Major Customer [Line Items]    
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed   $ 401,000
Impairment of Long-Lived Assets to be Disposed of $ 0 (9,429,000)
Number of operating segments | operating_segment 6  
Number of reportable segments | reportable_segment 2  
Major customer Walmart  
Segment Reporting Information, Intersegment Revenue $ 0 $ 0
Sales Revenue, Net | Customer Concentration Risk    
Revenue, Major Customer [Line Items]    
Concentration risk, percentage 10.00% 14.00%
Outdoor Products    
Revenue, Major Customer [Line Items]    
Revenues from external customers, percentage 30.00%  
Shooting Sports    
Revenue, Major Customer [Line Items]    
Revenues from external customers, percentage 70.00%  
Fair Value, Recurring | Camp Chef | Fair value    
Revenue, Major Customer [Line Items]    
Change in amount of contingent consideration, liability   $ 843,000
v3.20.2
Operating Segment Information (Schedule of Results by Segment) (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 28, 2020
Jun. 30, 2019
Segment Reporting Information [Line Items]    
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed   $ 401
Sales, net $ 479,140 459,774
Gross profit 125,368 95,078
EBIT 48,043 (4,754)
Corporate and other reconciling items    
Segment Reporting Information [Line Items]    
Sales, net 0 0
Gross profit 0 0
EBIT $ (18,028) (28,425)
Outdoor Products    
Segment Reporting Information [Line Items]    
Revenues from external customers, percentage 30.00%  
Sales, net $ 144,982 150,977
Outdoor Products | Operating Segments    
Segment Reporting Information [Line Items]    
Sales, net 144,982 150,977
Gross profit 40,866 39,685
EBIT $ 11,506 6,852
Shooting Sports    
Segment Reporting Information [Line Items]    
Revenues from external customers, percentage 70.00%  
Sales, net $ 334,158 308,797
Shooting Sports | Operating Segments    
Segment Reporting Information [Line Items]    
Sales, net 334,158 308,797
Gross profit 84,502 55,393
EBIT $ 54,565 $ 16,819
Customer Concentration Risk | Sales Revenue, Net    
Segment Reporting Information [Line Items]    
Concentration risk, percentage 10.00% 14.00%