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Segment Reporting
 12 Months Ended
Apr. 30, 2017
Segment Reporting [Abstract]  
Segment Reporting

19. Segment Reporting

We report our results of operations in two segments: (1) Firearms and (2) Outdoor Products & Accessories, which we previously referred to as our Accessories segment. Our two segments are defined based on the reporting and review process used by the chief operating decision maker, our Chief Executive Officer. The Firearms segment has been determined to be a single operating segment and reporting segment based on our reliance on production metrics such as gross margin per unit produced, units produced per day, incoming orders per day, and revenue produced by trade channel, all of which are particular to the Firearms segment. The Outdoor Products & Accessories segment has been determined to be two operating segments that have been aggregated into a single reporting segment, which are evaluated by a measurement of incoming orders per day and sales and gross margin by customer and brand.

 

The Firearms segment includes our firearms and other components, which we manufacture at our facilities in Springfield, Massachusetts, Houlton, Maine, and Deep River, Connecticut and our firearm products, which we develop, assemble, and market in our Springfield, Massachusetts facility. The Outdoor Products & Accessories segment includes our accessories products, which we develop, source, market, and distribute at our facilities in Columbia, Missouri, Kingsport, Tennessee, and Jacksonville, Florida and our electro-optics products, which we develop, market, and assemble in our Wilsonville, Oregon facility. We report operating costs based on the activities performed within each segment.

Segment assets are those directly used in or clearly allocable to a reportable segment’s operations. Assets by business segment are presented in the following table as of April 30, 2017 and 2016 (in thousands):

 

 

 

As of April 30, 2017

 

 

 

As of April 30, 2016

 

 

 

Firearms

 

 

 

Outdoor Products & Accessories

 

 

 

Total

 

 

 

Firearms

 

 

 

Outdoor Products & Accessories

 

 

 

Total

 

Total assets

 

$

393,341

 

 

 

$

394,695

 

 

 

$

788,036

 

 

 

$

458,053

 

 

 

$

161,450

 

 

 

$

619,503

 

Property, plant, and equipment, net

 

 

135,985

 

 

 

 

13,700

 

 

 

 

149,685

 

 

 

 

132,274

 

 

 

 

3,131

 

 

 

 

135,405

 

Intangibles, net

 

 

2,792

 

 

 

 

138,525

 

 

 

 

141,317

 

 

 

 

2,903

 

 

 

 

60,021

 

 

 

 

62,924

 

Goodwill

 

 

13,770

 

 

 

 

155,247

 

 

 

 

169,017

 

 

 

 

13,770

 

 

 

 

62,587

 

 

 

 

76,357

 

 

Results by business segment are presented in the following table for the years ended April 30, 2017, 2016, and 2015 (in thousands):

 

 

 

For the Year Ended April 30, 2017 (a)

 

 

 

Firearms

 

 

 

Outdoor Products & Accessories

 

 

 

Corporate

 

 

 

Intersegment Eliminations

 

 

 

Total

 

Revenue from external customers

 

$

772,997

 

 

 

$

130,191

 

 

 

$

—

 

 

 

$

—

 

 

 

$

903,188

 

Intersegment revenue

 

 

3,643

 

 

 

 

10,530

 

 

 

 

—

 

 

 

 

(14,173

)

 

 

 

—

 

Total net sales

 

 

776,640

 

 

 

 

140,721

 

 

 

 

—

 

 

 

 

(14,173

)

 

 

 

903,188

 

Cost of sales

 

 

464,019

 

 

 

 

75,737

 

(c)

 

 

—

 

 

 

 

(11,840

)

 

 

 

527,916

 

Gross margin

 

 

312,619

 

 

 

 

64,985

 

 

 

 

—

 

 

 

 

(2,332

)

 

 

 

375,272

 

Operating income/(loss)

 

 

201,442

 

 

 

 

(3,949

)

(d)

 

 

(47,787

)

 

 

 

50,233

 

 

 

 

199,939

 

Income tax expense/(benefit)

 

 

77,585

 

 

 

 

(2,300

)

 

 

 

(11,833

)

 

 

 

—

 

 

 

 

63,452

 

 

 

 

For the Year Ended April 30, 2016 (a)

 

 

 

Firearms

 

 

 

Outdoor Products & Accessories

 

 

 

Corporate

 

 

 

Intersegment Eliminations

 

 

 

Total

 

Revenue from external customers

 

$

652,065

 

(b)

 

$

70,843

 

(b)

 

$

—

 

 

 

$

—

 

 

 

$

722,908

 

Intersegment revenue

 

 

1,821

 

 

 

 

743

 

 

 

 

—

 

 

 

 

(2,564

)

 

 

 

—

 

Total net sales

 

 

653,886

 

 

 

 

71,586

 

 

 

 

—

 

 

 

 

(2,564

)

 

 

 

722,908

 

Cost of sales

 

 

394,118

 

(b)

 

 

37,536

 

(b)

 

 

—

 

 

 

 

(2,558

)

 

 

 

429,096

 

Gross margin

 

 

259,767

 

 

 

 

34,051

 

 

 

 

—

 

 

 

 

(6

)

 

 

 

293,812

 

Operating income/(loss)

 

 

153,728

 

 

 

 

3,511

 

 

 

 

(17,201

)

 

 

 

18,605

 

 

 

 

158,643

 

Income tax expense/(benefit)

 

 

58,103

 

 

 

 

1,006

 

 

 

 

(7,974

)

 

 

 

—

 

 

 

 

51,135

 

 

 

 

 

For the Year Ended April 30, 2015 (a)

 

 

 

Firearms

 

 

 

Outdoor Products & Accessories

 

 

 

Corporate

 

 

 

Intersegment Eliminations

 

 

 

Total

 

Revenue from external customers

 

$

531,222

 

 

 

$

20,640

 

 

 

$                       —

 

 

 

$                       —

 

 

 

$

551,862

 

Intersegment revenue

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Total net sales

 

 

531,222

 

 

 

 

20,640

 

 

 

 

—

 

 

 

 

—

 

 

 

 

551,862

 

Cost of sales

 

 

342,663

 

 

 

 

14,273

 

(e)

 

 

—

 

 

 

 

—

 

 

 

 

356,936

 

Gross margin

 

 

188,559

 

 

 

 

6,367

 

 

 

 

—

 

 

 

 

—

 

 

 

 

194,926

 

Operating income/(loss)

 

 

91,788

 

 

 

 

(3,505

)

(f)

 

 

(13,695

)

(a)

 

 

15,040

 

 

 

 

89,628

 

Income tax expense/(benefit)

 

 

35,427

 

 

 

 

(1,133

)

 

 

 

(5,389

)

 

 

 

—

 

 

 

 

28,905

 

 

 

(a)

For the years ended April 30, 2017 and 2016, we allocated all of corporate overhead expenses except for interest and income taxes, such as general and administrative expenses and other corporate-level expenses, to both our Firearms and Outdoor Products & Accessories segments. For the year ended April 30, 2015, segment information herein has been restated from that previously presented to allocate corporate overhead expenses on the same basis. Corporate overhead expenses were not previously allocated for the year ended April 30, 2015 due to the timing of the BTI Acquisition.

(b)

Effective October 1, 2015, our Thompson/Center accessories business was transitioned from our Firearms segment to our Outdoor Products & Accessories segment. As a result of the transition, we have reclassified $5.6 million and $4.6 million of revenue and cost of sales, respectively, from the Firearms segment to the Outdoor Products & Accessories segment for the year ended April 30, 2016.

(c)

Amount includes $4.7 million of additional cost of goods sold from the fair value inventory step-up and backlog expense related to the 2017 Acquisitions.

(d)

Amount includes $18.4 million of amortization of intangible assets identified as a result of our acquisitions.

(e)

Amount includes $4.2 million of additional cost of goods sold from the fair value inventory step-up related to the BTI Acquisition.

(f)

Amount includes $3.6 million of amortization of intangible assets identified as a result of the BTI Acquisition.